ffirs.qxd 9/5/2006 4:01 PM Page iii MANAGING PROJECTS IN TELECOMMUNICATION SERVICES Mostafa Hashem Sherif IEEE Communications Society, Sponsor IEEE PRESS A JOHN WILEY & SONS, INC., PUBLICATION bindex.qxd 8/1/2006 3:06 PM Page 248 ffirs.qxd 9/5/2006 4:01 PM Page i MANAGING PROJECTS IN TELECOMMUNICATION SERVICES ffirs.qxd 9/5/2006 4:01 PM Page ii IEEE Press 445 Hoes Lane Piscataway, NJ 08854 IEEE Press Editorial Board Mohamed E. El-Hawary, Editor in Chief J. B. Anderson S. V. Kartalopoulos N. Schulz R. J. Baker M. Montrose C. Singh T. G. Croda M. S. Newman G. Zobrist R. J. Herrick F. M. B. Pereira Kenneth Moore, Director of IEEE Book and Information Services (BIS) Catherine Faduska, Senior Acquisitions Editor Steve Welch, Acquisitions Editor Jeanne Audino, Project Editor IEEE Communications Society, Sponsor IEEE CS Liaison to IEEE Press, Mansoor Shafi Technical Reviewers Audrey Curtis, Stevens Institute of Technology Rod Castillo, AT&T Robert J. Ferro, AT&T Tom Helstern, AT&T Clement McCalla, AT&T Fahad Najam, AT&T Michael Recchia, AT&T Cathy Savolaine, AT&T (retired) ffirs.qxd 9/5/2006 4:01 PM Page iii MANAGING PROJECTS IN TELECOMMUNICATION SERVICES Mostafa Hashem Sherif IEEE Communications Society, Sponsor IEEE PRESS A JOHN WILEY & SONS, INC., PUBLICATION ffirs.qxd 9/5/2006 4:01 PM Page iv Copyright © 2006 by the Institute of Electrical and Electronics Engineers, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. 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ISBN-13 978-0-471-71343-2 ISBN-10 0-471-71343-0 Printed in the United States of America. 10987654321 ftoc.qxd 9/5/2006 4:04 PM Page v CONTENTS Foreword xiii Preface xv 1 Projects in Telecommunication Services 1 Introduction 1 Project Management Versus Product Management 1 Virtual Network Operators 3 Contribution of Project Management 4 The Two Facets of Telecommunication Services 5 Categories of Projects in Telecommunication Services 6 Upgrades of Public Networks 7 Establishment of Specialized Business Networks 8 Temporary Networks 10 Characteristics of Telecommunication Service Projects 11 Complex Interfaces 11 External Interfaces 11 Internal Interfaces 12 International Orientation 15 Multidisciplinarity 15 No Mass Production 16 Diverse Users 16 A Relatively Long Planning Stage 17 Summary of Distinctions Between the Development of 17 Telecommunication Services and Equipment Summary 17 v ftoc.qxd 9/5/2006 4:04 PM Page vi vi CONTENTS 2 Standards and Innovation in Telecommunication Services 19 The Two Dimensions of Telecommunication Projects 19 The Technological Dimension 19 The Marketing and Social Dimension 22 Classification of Innovations 23 Innovations and the Technology Life Cycle 25 Innovation in Telecommunication Services 26 Incremental Innovation 27 Architectural Innovation 28 Platform Innovation 30 Radical Innovation 30 Interaction of Innovations in Equipment and Services 30 Phasic Relation Between Equipment and Services 31 Standardization for Telecommunication Services 34 Timing of Standards 35 Marketing Perspective 35 Technological View of Standards 35 Anticipatory Standards 36 Enabling (Participatory) Standards 37 Responsive Standards 38 Lack of Standards 38 Standards Policy and Knowledge Management 39 Summary 40 3 The Project Management Context 43 Organization of the Project Team 43 Functional Organization 44 Examples 45 Advantages 47 Disadvantages 47 Matrix Organization 47 Examples 48 Advantages 50 Disadvantages 50 Projectized Organization 50 Examples 51 Advantages 51 Disadvantages 51 Comparison of Project Organizations 52 Project Organization and Innovation Type 52 Incremental Innovation 52 Architectural Innovation 53 Platform Innovation 54 Radical Innovation 54 The Role of the Project Sponsor 54 Phase Management and Portfolio Management 56 The Rolling Wave Method for Service Development 56 ftoc.qxd 9/5/2006 4:04 PM Page vii CONTENTS vii Phase 1: Concept Definition 57 Phase 2: Initiation and Preliminary Planning Phase 58 Phase 3: Implementation 58 Phase 4: Controlled Introduction 58 Phase 5: General Availability and Close-Out 59 Canceling Projects 59 Relation to the Build–Operate–Transfer Model 59 Summary 60 4 Scope Management 61 Scope Initiation 62 Scope Planning 62 Market Service Description (MSD) 62 Scope Definition 63 Work Breakdown Structure 63 Technical Plan 64 The Need for Scope Management 66 Salt Lake City Winter Olympics 66 E-Zpass Toll Collection System 66 Background 66 Gaps in the Definition ITS Scope 67 Scope Creep in New Jersey 68 Sources of Scope Change 68 Customer Profile 69 Vendor’s Effect 69 Basic Principles of Scope Management 69 Change Control Policy 71 Strictness of the Change Control Policy 71 Change Control Board 72 Scope Verification 72 Tracking and Issue Management 72 Project Termination 73 Case Studies 74 Telecommunications Alliances/Joint Ventures 74 Net 1000 76 Background 77 Timeline and Organization Evolution 78 Postmortem Analysis 80 Lessons Learned 84 Lessons Not Learned 84 Summary 85 5 Time and Cost Management 87 Scheduling 87 Delays in Telecommunication Projects 88 Compressing the Schedule 89 Cost Management 90 ftoc.qxd 9/5/2006 4:04 PM Page viii viii CONTENTS Project Tracking with Earned Value Analysis 91 Metrics for the Earned Value 92 Discrete Effort Method 92 Apportioned Effort Method 93 Level of Effort Method 93 Budget Types 93 Monitoring Project Progress 93 Measures of Efficiency 94 Prerequisites for Earned Value Analysis 95 Earned Value Analysis in Telecommunication Projects 95 Summary 97 6 Information and Communication Management 99 The Role of Communication Management 99 Dissemination of Information 100 Team Cohesion 100 Historical Database 101 Communication and Outsourcing 101 The Communication Plan 102 Audience 102 Circumstances 103 Nature of Information 103 Content of the Plan 104 Communication Channels 104 One-on-One Communication 105 Meetings 105 Telephony and Teleconferences 107 E-Mail 107 Intranets and Project Portals 107 Evaluation of the Communication Processes 108 Measure of Communication Effectiveness 108 Signs of Communication Problems 108 Barriers to Successful Communications 109 Summary 109 7 Resources Management 111 Formation of the Project Team 111 Team Building 116 Team Building and the Hierarchy of Human Needs 116 Signs of a Jelled Team 117 Enablers of Team Cohesiveness 117 Impediments to Team Consolidation 118 No Self-Actualization 118 No Self-Esteem 118 No Belongingness 119 No Security 119 Team Breakup (Adjourning) 119 Project Leadership 119 ftoc.qxd 9/5/2006 4:04 PM Page ix CONTENTS ix Transactional Versus Transformational Leadership 120 Project Manager’s Authority 120 Manipulative Behavior 120 MBTI Classification of Leadership Styles 121 Time-Dependent Leadership 123 Matching Leadership Style with the Project Phase 123 Matching Leadership Style with Innovation Type 124 Matching Leadership with Technology Maturity 125 Conflict Resolution 126 Conflicts Due to Contractual Structures 126 Conflicts Due to Connectual Structures 127 Types of Diversity 127 Examples of Social Diversity 128 Examples of Informational Diversity 128 Examples of Value Diversity 129 Conflicts and Diversity 130 Effects of Conflict on Project Performance 130 Dealing with Conflicts 132 Problem Solving 132 Coercion 132 Compromise 132 Accommodation 132 Withdrawal or Avoidance 132 Summary 133 8 Quality Management 135 Overview 135 Quality and Innovation 136 Service Release Management 137 Quality Plan 138 Categorization of the Defects: Urgency and Criticality