12 Chapter A4148 23218 6/8/01 6:25 PM Page 361

ResNet was a series of three distinct projects: ResNet Beta, ResNet 1995, ResNet 1996

ResNet Beta (May 1993 - Aug 1994)

■ customize and test the new reservation system (s/w and h/w)
■ develop a method to measure the true benefits of ResNet
■ Cost: $500,000

12Initiating
ResNet 1995 / ResNet Phase I (Sep 1994 - Dec 1995)
■ install PCs in the reservation offices in Baltimore, Tampa and intl portion of Minneapolis
■ develop s/w for
■ cost: $8.3M in capital costs: computer equipment, facilities, and purchased software
■ total cost: $13M;

ResNet 1996 / ResNet Phase II (Aug 1995 - May 1997)

Actors ■ completed installations at 6 other call centers
■ total cost: $20M including $10.7M in captial costs
Fey Beauchine: Vice President of ■ total cost of all 3 phases: $33.5M ($500K + $13M + $20M)
Reservations at NWA

Peter Kivestu: Marketing Director

and Project manager for all three
ResNet Projects(ResNet Beta,
ResNet 1995, ResNet 1996);
Creating a way to measure the
benefits of ResNet was a key part of
his strategy from the start.

Arvind Lee: technical specialist and Objectives

senior member of IS department,
ResNet IS project manager,
incharge of all people in IS for After reading this chapter, you will be able to:
ResNet; team leader
1. Understand the importance of initiating projects that add value to an
Kathy Kramer Christenson: a former
marketing analyst and the new
organization
ResNet application development 2. Discuss the background of ResNet at Northwest Airlines
manager; team leader
3. Distinguish among the three major projects involved in ResNet
4. Appreciate the importance of top management support on ResNet
5. Discuss key decisions made early in the project by the project manager
6. Relate some of the early events in ResNet to concepts described in
previous chapters
7. Discuss some of the major events early in the project that helped set the stage
for project success

F ay Beauchine became Vice President of Reservations at Northwest

Airlines (NWA) in 1992. One area that had continually lost
money for the company was the reservations call center. Fay developed
a new vision and philosophy for the reservations call center that was
instrumental in turning this area around. She persuaded people to
understand that they needed to focus on sales and not just service.
Instead of monitoring the number of calls and length of calls, it was
much more important to focus on the number of sales made through the
call centers. If potential customers were calling NWA directly, booking
the sale at that time was in the best interest of both the customer and
the airline. Additionally, a direct sale with the customer saved NWA
13 percent on the commission fees paid to travel agents and another
18 percent for related overhead costs.
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362 ■ C H A P T E R 1 2

Fay knew that developing a new information system was critical

to implementing a vision that focused on sales rather than service,
and she wanted to sponsor this new information system. Although
the Information Services (IS) Department had worked to improve
the technology for call centers, past projects never went anywhere.
The new reservation system project, ResNet, would be managed by
business area leaders and not Information Services managers—a first
in NWA’s history and a major culture change for the company. Fay
made Peeter Kivestu, a marketing director, the project manager for
the ResNet Beta project in 1993. NWA was going through tremen-
dous business changes at that time, and the airline almost went
bankrupt in 1993. How could Fay and Peeter pull off the project?

WHAT IS INVOLVED IN PROJECT INITIATION?

In project management, initiating is the process of recognizing and starting a
new project or project phase. This process seems simple enough, but a lot of
thought should go into it to ensure that the right kinds of projects are being
initiated for the right reasons. It is better to have moderate or even a small
amount of success on an important project than huge success on an unimpor-
tant one. The selection of projects for initiation, therefore, is crucial, as is the
selection of project managers.
Recall from Chapter 4, Project Scope Management, that strategic planning serves
as the foundation for deciding which of several projects to pursue. The organiza-
tion’s strategic plan expresses the vision, mission, goals, objectives, and strate-
gies of the organization. It also provides the basis for information technology
project planning. Information technology is usually a support function in an
organization, so it is critical that the people initiating information technology
projects understand how those projects relate to current and future needs of the
organization. For example, Northwest Airlines’ main business is providing air
transportation, not developing information systems. Information systems, there-
fore, must support the airline’s major business goals, such as providing air trans-
portation more effectively and efficiently.
Information technology projects are initiated for several reasons, but the
most important one is to support explicit business objectives. As mentioned in
the opening case, Northwest Airlines was having financial difficulties in the
early 1990s, so reducing costs was a key business objective. Providing an infor-
mation system to stop the financial drain caused by the reservation call centers
was the primary objective of the ResNet project.
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I N I T I AT I N G ■ 363

Table 12-1 lists the knowledge areas, processes, and outputs that are typically
part of project initiation. Tasks often involved in the project initiation process
include the completion of a stakeholder analysis and preparation of a feasibility
study and an initial requirements document. The outputs or outcomes of project
initiation generally include a project charter of some sort, selection of a project
manager, and documentation of key project constraints and assumptions. This
chapter provides background information on Northwest Airlines and ResNet
and then describes the initiation tasks involved in this large information tech-
nology project.
You will find in this chapter, and the following process group chapters, that
real projects often do not follow all of the guidelines found in this or other
texts. For example, the initiating project management process group generally
only includes the process of initiation, part of project scope management, and
the outputs listed in Table 12-1. The first ResNet project, the ResNet Beta or
Prototype project, included some but not all of these outputs plus several
others as part of initiating and preproject planning. Many projects include
groundwork that is done before they are considered to be official projects.
Every project is unique, as is every organization, every project manager, and
every project team. These variations are part of what makes project manage-
ment such a diverse and challenging field.

Table 12-1: Initiating Processes and Outputs

KNOWLEDGE AREA PROCESS OUTPUTS

Scope Initiation Project Charter
Project Manager Identified/Assigned
Constraints
Assumptions

BACKGROUND ON NORTHWEST AIRLINES

Northwest Airlines is the world’s fourth largest airline and America’s oldest carrier.
Northwest began on October 1, 1926, flying mail between Minneapolis/St. Paul
and Chicago. Passenger service began the following year. On July 15, 1947,
Northwest pioneered the “Great Circle” route to Asia, with service to Tokyo,
Seoul, Shanghai, and Manila.
Today, Northwest Airlines, with its global travel partners, serves more than
750 destinations in 120 countries on six continents. In 2001, it had more than
53,000 employees worldwide. The U.S. system spans 49 states and the District
of Columbia. Northwest has more than 2,600 daily flights and operates more
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364 ■ C H A P T E R 1 2

than 200 nonstop flights between the United States and Asia each week. Hub
cities include Detroit, Memphis, Minneapolis/St. Paul, and Tokyo.
In the early 1990s, Northwest Airlines’ sales agents accessed a reservation
system by using approximately 3,000 dumb terminals—display monitors,
with no processing capabilities, connected to a mainframe computer. As the
airline business became more complicated and competitive, so did the reser-
vation process. Calls were taking longer to complete and few direct sales
were being made. Therefore, the airline was losing money by providing this
necessary function of the business. It was Fay Beauchine’s intent to turn
this situation around by initiating the ResNet project.

BACKGROUND ON RESNET
Arvid Lee had worked in the IS Department at Northwest Airlines since 1971.
One of the project ideas he and his colleagues had kicked around for several
years was improving the system interface for the sales agents in the call cen-
ters. Changes in the business were making the call center jobs more compli-
cated, and sales agents were complaining about the old Passenger Airline
Reservation System (PARS). The government had just deregulated the airline
industry, and new marketing initiatives such as frequent flier programs compli-
cated matters. The average length of calls in the call centers was increasing due
to the complexity of the job and the inflexibility of the information system
being used. The IS Department did some research on improving the interface of
the reservation system, but no improvements were ever implemented.
Figure 12-1 shows a sample screen from the PARS reservation system used
at Northwest Airlines in the early 1990s. Notice the unfriendly, character-based
interface. There was only one window with no help or menus to assist sales
agents in the reservation process. Sales agents attended special training classes
to learn all of the codes and procedures for using the PARS reservation system.
At times, the call center job would get very demanding as more and more people
called to obtain flight information, and the PARS information system provided
little flexibility in helping sales agents meet potential customers’ needs.
In 1992, Fay Beauchine became the Vice President of Reservations at Northwest
Airlines. She knew the call centers were losing money, and she knew their focus
on improving service was not working. Fay realized that a major change was
needed in the information systems used by the sales agents. They needed a system
that would help them quickly give potential customers complete and accurate
information and allow them to book flights directly with NWA. Fay also knew that
several competing airlines had successfully implemented new reservation systems.
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I N I T I AT I N G ■ 365

Figure 12-1. Sample Reservation Screen Before ResNet

Peeter Kivestu was a marketing director at NWA in 1993. He knew the

company was having financial problems, and he had heard about Fay’s vision
of turning around the call centers. Peeter met with Fay to exchange ideas, and
they both decided that Peeter could meet the challenges of being the ResNet
project director. (NWA did not have a job title of project manager in 1993, so
Peeter was named the project director, their title for a project manager. He will
be referred to as the project manager in this book.)
To succeed, Peeter knew that he needed strong support from the IS Department.
Peeter had discussed the project with the director of Information Services, and she
agreed to have her department support the project. In May 1993, Peeter met with
Arvid Lee, a technical specialist and senior member of the IS Department. Arvid
had a great reputation in the company, and Peeter wanted to solicit his ideas and
support for developing the new reservation system.
Arvid’s first meeting with Peeter was quite an experience. Peeter exuded
energy as he explained his overall strategy. He wanted to have a beta version of
the new reservation system (ResNet) done in less than fifteen months—by
early August, 1994. A rough estimate for creating a beta version of the system
was about $500,000. Peeter asked Arvid to take the lead on developing a
project plan for the beta system, and he wanted the plan done in one week.
Arvid would be in charge of all of the Information Services people supporting
the ResNet Beta project, focusing primarily on the hardware, networking, and
software integration efforts. His title would be the ResNet IS project manager.
Arvid would also work with Kathy (Krammer) Christenson, a former marketing
analyst and the new ResNet application development manager, to customize the
ResNet software to meet the sales agents’ needs. ResNet would use off-the-shelf
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366 ■ C H A P T E R 1 2

software as much as possible, but NWA staff would have to do some customiza-
tion, system software development, and new application development to have
the new system work within their company’s business environment.
After completing a prototype system that would prove the potential benefits
of ResNet, Peeter would have to convince upper management to invest over
$30 million in a new system involving over 3,000 personal computers. To get
initial and continued funding, Peeter knew they needed to prepare convincing
documentation for the project, especially since the airline was not in good
financial health. Creating a way to measure the benefits of ResNet was a key
part of his strategy from the start.
Although the budget plans for all 1993 projects were due in September,
Peeter knew he could not sit around and wait for formal approval before he got
people working on ResNet. By the time any official funds were approved in
December of 1993, Peeter had about twenty people working on the project in
various capacities. Several Information Services staff were redirected from
other, lower-priority projects, to help support ResNet. Other NWA staff in the
call centers and other departments supported the project part-time while
maintaining their normal duties. These people worked on developing the plan
for the beta test, researching various software and hardware options, docu-
menting the work flow of the current reservation process, recruiting people to
work on the project, and so on. After funds were approved and the ResNet
Beta project was formally recognized in December of 1993, several people were
officially assigned to the project.
Recall that every project is unique and has a definite beginning and a definite
end. Many large information technology projects are also broken down into
smaller projects. ResNet was really a series of three distinct projects. Table 12-2
provides an overview of the three distinct projects undertaken in creating
ResNet—the ResNet Beta or Prototype project, ResNet 1995, and ResNet 1996.
Each project had specific scope, time, and cost goals. Peeter Kivestu was the
project manager for all three ResNet projects, with Arvid Lee and Kathy
Christenson as team leaders.
The ResNet Beta project or prototype started in May of 1993 and ended in
August of 1994. The Beta project involved customizing and testing new reser-
vation software and hardware using sixteen personal computers. The project
also involved developing a method for measuring the true benefits of ResNet
before making major financial investments in new reservations systems. This
project cost about $500,000.
The ResNet Phase I project, also called ResNet 1995, was approved by NWA’s
finance committee in November of 1994. This project involved installing per-
sonal computers in the call centers in Baltimore and Tampa and the interna-
tional portion of the Minneapolis/St. Paul reservations offices. It also involved
developing ResNet software for Reservations Sales and Support, the new Iron
Range Reservations Center, and the Sales Action Center. The price of this 1995
project was about $8.3 million in capital costs: computer equipment, facilities,
and purchased software. The total cost estimate for the ResNet 1995 project
was about $13 million.
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I N I T I AT I N G ■ 367

Table 12-2: Three Main ResNet Projects

RESNET BETA
OR PROTOTYPE RESNET 1995 RESNET 1996
Scope Writing and testing new Installing PCs, software, Completing the
reservations system software, and networks in installation of PCs,
installing system on 16 PCs, Baltimore, Tampa, software, and
developing measurement and international networks at other
approach portion of Minneapolis/ six reservations
St. Paul reservations offices, developing
offices; developing more software
more software
Time May 1993 – August 1994 September 1994 – August 1995 –
December 1995 May 1997
Cost About $500,000 About $13 million About $20 million

The ResNet Phase II project, also called ResNet 1996, completed the installation
of the new reservations system at six other call centers and provided additional
software development. This project cost another $10.7 million in capital and
$20 million total. The total cost of all three ResNet projects was approximately
$33.5 million. More detailed information on project costs is provided in
Chapter 13, Planning.

What Went Wrong?

After finishing the ResNet Beta project, Peeter and his team saw the rest of ResNet as one
large project to implement the new reservation system in all of the call centers. Senior
management, however, broke the rest of ResNet into two separate projects, ResNet 1995
and ResNet 1996. Their goals were to avoid a huge investment commitment and to provide
further incentives for the ResNet team to produce successful results. If the ResNet 1995
project was not successful, senior management would decide not to fund the 1996 project.
Although this strategy reduced financial risk, Peeter and his team did not like the decision.
If ResNet 1996 were not approved for some reason, they would be stuck with two totally
different reservations systems in different sales offices. This situation would cause huge
management, technical, and support problems. The ResNet 1995 team was under a lot of
pressure to do a good job or the ResNet 1996 project would not be funded.
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368 ■ C H A P T E R 1 2

SELECTING THE PROJECT MANAGER

An important part of project initiation is selecting a project manager. Fay
Beauchine asked Peeter to be the project manager for several reasons.
■ Peeter knew the airline business and had over thirteen years experience in
the industry. He joined Northwest Airlines in 1991 after holding several posi-
tions at Canadian Airlines International and American Airlines. Peeter had a
bachelor’s degree in engineering and a master’s in aeronautics and finance.
■ He understood the technology. Peeter was Vice President of Advanced
Productivity Programs at Canadian Airlines International in the late 1980s.
He was very successful at leading business and technical professionals in
developing and applying new technologies.
■ He knew that technologies could improve business productivity. Peeter was
working in NWA’s marketing and scheduling area and had some discussions
with Fay about new reservation technologies. He made a case to Fay that
big technology projects can be successful if managed properly. He convinced
her that he was the right person for the job. His passion for the project was
obvious to Fay, and Peeter used this passion to convince others how impor-
tant ResNet was for Northwest Airlines.

PREPARING BUSINESS JUSTIFICATION FOR THE PROJECTS

Most projects require some form of justification to secure resources and funding.
Whereas the ResNet projects addressed a broad organizational need to cut
costs, they also required significant investments before any cost reductions
would be realized. Peeter used different approaches for justifying each of the
ResNet projects: the Beta project, ResNet 1995, and ResNet 1996.

ResNet Beta Project

Fay, Peeter, and Arvid took specific actions to convince senior management at
Northwest Airlines to fund the ResNet Beta project. All three people understood
the company’s strategic plan and knew that it was important to cut costs, minimize
risks, and remain competitive in handling reservations.
Fay convinced senior managers at numerous meetings that her vision of
focusing on sales would turn around the poor financial performance of the
reservation centers. She did an excellent job of analyzing the stakeholders and
addressing their unique interests and concerns. She emphasized the fact that
the company had to continue making some investments to improve its financial
performance. The $500,000 they were asking for was a reasonable investment
given the huge potential benefits of the project.
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I N I T I AT I N G ■ 369

Peeter had a successful track record in implementing information systems to

meet business goals, and he focused on using proven technology to reduce
potential risk. Peeter collected facts showing that their competitors were
increasing productivity by investing in new reservations systems. Peeter’s
experience and charismatic personality convinced people that ResNet was the
project to work on and that failure was not an option. Having a strong project
manager helps to justify investing in new projects and reduces project risk.
Arvid was very familiar with what competing airlines were doing in their
call centers, so he knew what NWA had to do to remain competitive. Arvid’s
expertise was instrumental in planning the details of the beta project and mak-
ing recommendations on hardware, software, networks, and staffing. The plans
he helped create convinced senior management that the ResNet team knew
what they were doing.

ResNet 1995 and ResNet 1996

After successfully completing the ResNet Beta version of the new reservation
system on time and on budget, Peeter and his team had to convince upper man-
agement to make a major investment in the operational ResNet system. They
developed a project plan in October 1994, for the 1995 and 1996 ResNet projects.

What Went Right?

Peeter and the ResNet team prepared outstanding business justification for all of the
ResNet projects. Using his strong technical and business skills, Peeter wrote persuasive doc-
uments justifying ResNet, and he made a good case in his presentations. Peeter’s justifica-
tion strategy for the 1995 and 1996 ResNet projects included very strong financial analysis,
which greatly impressed the finance committee. Peeter knew that the decision makers
wanted to see the bottom-line numbers, and he provided those numbers with detailed
rationale for how he got them. He prepared a five-year cash flow analysis of all costs and
benefits, clearly defined major assumptions, and described the basis for all of his projec-
tions. It was obvious to the finance committee that Peeter knew what he was doing. They
also appreciated the fact that someone leading a major information technology project was
driven by business needs instead of technology needs.

Because of the company’s poor financial condition in 1994, Peeter knew

he had to have an extremely compelling argument to convince senior man-
agement to make any large investments in information technology. When
communicating with upper management, Peeter focused on the key business
objectives of the project, highlighted the impressive results from the beta
project, and focused on the opportunity to make money with the new system.
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370 ■ C H A P T E R 1 2

Peeter provided detailed financial estimates in the ResNet 1995-1996 project

plan. (Peeter viewed ResNet 1995 and 1996 as one large project in his initial
project plans and business justifications.) Table 12-3 shows the financial summary
from the October 1994 ResNet project plan. Peeter and his team estimated a
net present value of $37.7 million for the project, based on a five-year system
life and an 11.5 percent discount rate. Peeter also estimated the discounted
payback period for ResNet to be 30 months or 2.48 years, and the internal rate
of return as 45.2 percent. All of these financial projections provided strong
support for investing in ResNet for 1995 and 1996.

Table 12-3: ResNet 1995-96 Financial Summary

FINANCIAL CATEGORY EXPENSE (MILLIONS OF DOLLARS)

Net Present Value over 5 years @ 11.5% 37.7
Commitment (over 5 years)
- One-time capital 21.5
- Chisholm equipment credit (2.4)
- One-time operating expenses 2.6
- Recurring operating expenses 11.9

The majority of estimated benefits came from increasing the sales conversion,
the percentage of calls that resulted in direct sales. This benefit is also called
improving the call-to-booking ratio. Peeter prepared a detailed financial analysis
of the estimated benefits of improving the call-to-booking ratio. Inputs for this
calculation included the annual number of calls, the booking percentage with
and without ResNet, the assumed percent of bookings flown, the average num-
ber of passengers per booking, the airfare, the savings due to direct sales from not
paying the 13 percent commission fees to travel agents, and an additional 18 per-
cent for overhead cost savings. Another major category of projected benefits was
a reduction in headcount (sales agents) due to reduced call-handling times.
Peeter also explained the capabilities of the new reservation system in busi-
ness terms. In the project plan to management he wrote:
“The objective of the ResNet PC user presentation software is to convert
agents from reservationists to salespeople through the use of intuitive soft-
ware, which anticipates the information an agent will need, incorporates
context-appropriate sales messages, highlights marketing programs and
promotions, and ensures accuracy and consistency in call handling.”1

Figure 12-2 shows a sample of the ResNet screen. Notice that much more
information is available on the new reservation system screen than was avail-
able on the old screen (see Figure 12-1). A critical part of the software develop-
1 Kivestu, Peeter, PR2 submitted to Robert E. Weil and Anne C. Carter, October 25, 1994.
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I N I T I AT I N G ■ 371

ment for ResNet involved integrating information from different areas and
putting that information all on one screen. The added context-appropriate sales
messages also helped sales agents provide customers with information that
would help close a sale. As Bill Hawkins, one of the ResNet Beta test sales
agents, put it, “What ResNet is to PARS is like what AT&T is to two sticks and a
hollow log. It’s a world of difference.”

Figure 12-2. Sample ResNet Screen

Figure 12-3 shows the executive summary used in the project plan Peeter
and his team created to justify investing in ResNet. Notice that Peeter focused
on business issues throughout the executive summary. Northwest’s competitors
were taking advantage of new technologies to improve their reservations systems
and realizing significant cost savings and revenue enhancements. The detailed
plan included a table listing major competitors and how much their productiv-
ity and sales had increased after upgrading their reservation systems. For
example, Peeter showed that Qantas and Canadian Airlines had increased their
sales conversion by 11 percent after installing a new reservation system, and
American Airlines decreased their sales agents’ training time by 22 percent
with their new system. Peeter also presented the risk involved in the project as
minimal, primarily due to the success of the ResNet Beta project and the fact
that most of the money would be spent on off-the-shelf hardware and facilities
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372 ■ C H A P T E R 1 2

versus software development. Senior management knew the risks involved in

large software development projects, and Peeter’s approach was to wait until
the vendor’s software they planned to use was successfully implemented at two
other clients’ sites before adopting it for ResNet. All of these items convinced
senior management that ResNet was an important project for NWA.

Northwest Reservations offices currently operate with the PARS

reservations system using 30 year-old technology. As a result, reservations
agents must remember cryptic commands to access vast amounts of quickly
changing marketing information. Because of the inflexibility of the current
system, the time, and consequently the cost of taking a reservation is
difficult to manage, agents are not able to consistently follow procedures,
and training costs are high. Most of Northwest's competitors, and now also
travel agencies, have been aggressively addressing reservations
inefficiencies by installing intelligent reservations terminals. These airlines
and agencies have realized significant operating improvement through cost
savings and revenue enhancements.

Marketing requests approval to install intelligent sales terminals - to be

called ResNet - in the eight domestic Reservations Sales offices, in the new
Chisholm WorldPerks office, and in the Sales Action Center. The 5 year
NPV of the project is $37.7 M.

There is limited downside risk to the project as it has been proven in a

National Sales beta test at NW and similar versions of the product are in
service with many domestic and international competitors. As the
extensions of the application are built for other parts of Reservations, they
will be built to the same standards as the current application. Of the total
one-time costs to implement ResNet, the majority (65%) is hardware or
facility related.

Furthermore, there are substantial upside benefits possible. The software is

a small part of the total cost of the system, but can be modified without
change to the hardware to accommodate a wide variety of revenue
enhancing and cost reducing add-ons to the base software. Because of the
software chosen for this application and the ability of the reservations users
to complete many of their own enhancements, rapid deployment of new
functionality throughout the project term will be encouraged.

Written by Peeter Kivestu, NWA, October 25, 1994

Figure 12-3. Executive Summary for Justifying ResNet Project

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I N I T I AT I N G ■ 373

DEVELOPING THE PROJECT CHARTER

Northwest Airlines did not use official project charters in the early 1990s.
Receiving formal budget approval seemed to be the main means for chartering
projects. They did have internal communications, however, recognizing the
need for and existence of the ResNet project.
The October 1994 project plan mentioned earlier provided detailed information
on the ResNet project. This document was called a Purchase Request 2 (PR2) and
was based on the dollar amount involved. Peeter prepared it by following the
guidelines of NWA’s Information Services Application Development Methodology.
NWA developed this internal methodology for planning and developing their
information systems projects. These guidelines include information on creating
the following documents (more information related to these planning documents
is provided in Chapter 13, Planning):
■ Project Approach
■ Technical Approach
■ Development Approach
■ Applications Approach
■ Operations Approach
■ Change Management Approach
The PR2 included a summary of the next steps involved in the ResNet project
after completing the Beta ResNet project. Table 12-4 provides information from
the PR2 describing an overall approach for the ResNet 1995-1996 implementa-
tion process. Notice that the focus was on installing the new reservation system
in the various business areas involved in the reservation process.

Table 12-4: Next Steps After ResNet Beta Project

STEP AFTER RESNET BETA PROJECT DATE

First facility ready for information systems installation 2/95
First agent training for live calls 3/95
First office completed 5/95
National/International Sales offices completed 2/96
Chisholm WorldPerks office completed 3/96
Specialty Sales/Support Desks completed 12/96

The PR2 was prepared as part of the funding process. When NWA’s Finance
Committee approved funding for the ResNet 1995 project in November of
1994, that project was officially recognized and funded, and the PR2 served as
the initial project charter and plan. Likewise, after the ResNet 1996 project was
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374 ■ C H A P T E R 1 2

funded in November of 1995, it was officially recognized. By the late 1990s,

NWA had developed project charter forms to formally recognize projects and
provide overall guidance for them.

ACTIONS OF THE PROJECT MANAGER AND SENIOR

MANAGEMENT IN PROJECT INITIATION
As mentioned throughout this text, strong leadership is an essential part of
good project management. Project managers must provide leadership to their
project team members, develop good relationships with key project stakeholders,
understand the business needs of the project, and prepare realistic project
plans. Senior management must participate in the project by providing overall
support and direction. Following are some of the actions Peeter and other
senior managers took to get the ResNet projects off to a good start:
Quickly assembling a strong project team. As mentioned earlier, Peeter
had twenty people working on ResNet before there was even an official budget
for the Beta ResNet. There was a lot of work to do, and Peeter saw no need to
wait for the annual budget approval before getting started. He assembled a
project team for the Beta ResNet system in July and August of 1993, with Fay
and other senior managers’ support. Peeter convinced Arvid Lee, a crucial asset
to the project, that ResNet was a critical project for the company and for the IS
Department. After he was convinced of the project’s importance and Peeter’s
ability to successfully lead the project, Arvid helped recruit other Information
Services staff and users. Peeter and Arvid’s passion for the project drew people
to ResNet. This strong start for the project created a momentum that con-
tributed to its success.
Getting key stakeholders involved in the project early. Peeter
included stakeholders from all of the areas involved in ResNet, especially top
management, marketing, the user community, and the IS Department. He
knew from past experience how important it was to have users involved in
projects and to have senior management support. Peeter held regular meetings
with people in marketing, and Fay was instrumental in getting their support as
well as support from the executive management team. Peeter also brought in
several people from the reservation call centers. They would be the primary
users of ResNet, and they understood the business of dealing with potential
customers to sell airline tickets. Peeter had an experienced facilitator lead sev-
eral focus groups with the sales agents to understand what the call center
issues were. Peeter also held several meetings with Information Services people
to have them start evaluating different technologies that could be used to
improve the reservation system.
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I N I T I AT I N G ■ 375

Preparing detailed analysis of the business problem and developing

project measurement techniques. Peeter knew that senior management
would constantly question the value of ResNet, so even before the ResNet Beta
project officially started, Peeter developed plans to prove that the system would
save the company money. Peeter recognized the need to bring in industrial
engineering experts to help document the reservation process at NWA and rec-
ommend how to close more sales. These experts found that sales agents had to
handle over thirty different types of calls. NWA developed a call strategy based
on the detailed analysis done by these engineers. The ResNet system would have
to support this call strategy and allow agents to handle any type of call without
additional steps. The engineers also developed techniques for measuring the
effects of various aspects of the new system on increasing sales and reducing call
time. Peeter knew this project would be scrutinized, so he made sure they had
evidence that the new technology was indeed increasing productivity.
Using a phased approach. Senior management at NWA decided to divide
ResNet into several phases or distinct projects. First they would fund a beta
project to prove the concept of the new reservation system. The beta phase
would demonstrate that the new technology would work and that the system
would be profitable. Originally, Peeter wanted the second project to involve
installing ResNet in all of the reservation call centers. Instead, senior manage-
ment at NWA insisted on continuing a phased approach. They agreed to fund
ResNet 1995 after the successful ResNet Beta and made ResNet 1996 contin-
gent on the success of the previous project. This approach would break the
work into smaller, more manageable projects, provide motivation for success,
and minimize the financial risk for the company. If the first phase did not
work, the project could be canceled; the same went for the second phase. As
mentioned in Chapter 2, The Project Management Context and Processes, this is a
very wise approach.
Preparing useful, realistic plans for the project. Having realistic plans is
another important factor for project success. Arvid Lee had worked on several
information technology projects at NWA and understood what was involved in
all phases of ResNet. He was also an experienced planner. Before they did
detailed planning, Arvid decided to let implementation dates drive the rest of
the plans, and he and Peeter ensured that they never missed any of the critical
implementation dates during project execution. Deciding to focus on imple-
mentation dates during the initiating process on ResNet helped guide the
process groups in later phases of the project.
Project initiation is a critical activity in organizations. Companies must
spend their time and money wisely by selecting important projects to work on
and by getting them off to a good start. NWA did an excellent job of project
initiation with ResNet. They focused on key business objectives, provided top
management support, assembled a strong project team, involved key stake-
holders, performed detailed analysis, developed measurement techniques for
the project, used a phased approach, and prepared an approach for developing
useful, realistic project plans.
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376 ■ C H A P T E R 1 2

CASE-WRAP UP
Fay and Peeter were very pleased when Northwest Airlines’ Finance
Committee agreed to fund the Beta ResNet project and continue to
fund ResNet 1995 and ResNet 1996. Their vision and leadership
inspired all ResNet stakeholders to ensure project success. Fay
understood the business needs of NWA and provided strong user
sponsorship. Peeter formed a dynamic project team to successfully
initiate ResNet and to later deliver even more than everyone had
expected. They proved that a large information technology project
could be accomplished successfully by focusing on business needs
and using good project management.

C H A P T E R S U M M A R Y
Initiation is the process of recognizing and starting a new project or project
phase. Supporting key business objectives is a key reason for funding projects.
NWA initiated ResNet to reduce costs from its reservation call centers and imple-
ment a new vision of focusing on closing sales, which would increase profits.
As with many information technology projects, the concept of ResNet was
discussed in the IS Department for a few years. However, a strong project
sponsor outside information technology was needed to provide the vision for
the project and convince senior management of its value.
ResNet involved three distinct projects: a ResNet Beta project, ResNet 1995,
and ResNet 1996. This phased approach helped break the work into more
manageable pieces and minimized financial risks.
Selecting the project manager and forming the core project team were
important parts of ResNet’s project initiation. Developing strong business justi-
fication for the project was also crucial.
Actions in the project initiation phase and during preproject planning helped
set the stage for the success of ResNet. These actions included quickly assembling
a strong project team, involving key stakeholders early and often in the project,
preparing a detailed analysis of the business problem, developing measurement
techniques, using a phased approach, and developing an approach for preparing
useful, realistic project plans.
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I N I T I AT I N G ■ 377

DISCUSSION QUESTIONS
1. What was Fay’s role in initiating ResNet? Why did she succeed when
other NWA employees in the IS Department, who had similar ideas years
earlier, did not?
2. What role did senior managers, Peeter, and Arvid have in initiating
ResNet? Did they make good decisions? Explain your answer.
3. What were some of Peeter’s strengths as a project manager? How do these
strengths relate to concepts discussed in earlier chapters?
4. Review the executive summary Peeter prepared to help justify investing
in ResNet. What points were made to convince the finance committee to
support the project?
5. Discuss the major differences between the three ResNet projects. What was
the emphasis for each project? How might each be managed differently?
6. Describe a project you have seen initiated. Compare how it was handled
to the ResNet project. What were the similarities and differences?

EXERCISES
1. Review the actions taken by Peeter and other senior managers that
helped get ResNet off to a good start. How do these actions compare to
what earlier chapters presented as good project management practice?
List each action and find specific statements in earlier chapters of this
book that support (or do not support) each.
2. Research information about how air travel and the airline reservation
system process has changed over the past ten years. How many people
currently book flights directly through the airlines? How many people
book flights through travel agents? How many people use Web-based
systems to book flights? What are the main differences between each
approach? Do you see any trends developing? Do you think new services
are better for customers? What are the potential disadvantages of
increased Web-based bookings?
3. Research at least three different airline reservation systems available on
the World Wide Web (nwa.com, other airlines’ Web sites, expedia.com,
travelocity.com, sidestep.com, and so on). List the basic features of each,
then compare them based on the following criteria: ease of use, availability
of flights to various locations, costs for specific flights, convenience in
travel times, related services such as car rental, hotel information, and
payment process. Add additional criteria, if you wish. Which system do
you prefer and why?
4. Ask five people who have flown in the past year how they booked their
flights. Be sure to talk to people of different ages and backgrounds (for
example, your roommate, your parents, your grandparents, your boss,
and your teachers). Compare the methods they used and why. What is
your personal preference for booking flights?
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MINICASE
None of the ResNet projects had a project charter as described in Chapter 4,
Project Scope Management.
Part 1: Using Table 4-2 as a guide, write a project charter for each of the
three ResNet projects.
Part 2: Review ads for project managers on Web sites such as www.monster.com.
Then write an ad to advertise for the position of project manager for the ResNet
projects. Also develop a list of questions you would ask when interviewing people
for the position.

SUGGESTED READINGS
1. Microsoft’s Travel Web site, www.expedia.com.
Microsoft and several other companies have Web sites to help people
book flights, reserve rental cars, find lodging, and so on.
2. Northwest Airlines Web site, www.nwa.com.
A good way to learn more about a company is to visit its Web site. Review
important information about Northwest Airlines from their Web site.
3. Sackman, Ralph B. Achieving the Promise of Information Technology. Newton
Square, PA: Project Management Institute, 1998.
Sackman’s text offers a framework to help companies use the power of
information technology to transform their mainstream operations and
services. Based on the nature of systems work itself, this book describes
initiatives to achieve growth, productivity, cost control, asset utilization,
and customer satisfaction objectives.
4. Weiss, Joseph W. and Robert K. Wysocki. 5-Phase Project Management. New
York: Harper-Collins, 1992.
This book provides practical, step-by-step information on each phase of
a complex project, starting with project initiation.
5. WORLDSPAN’s Web site, www.worldspan.
WORLDSPAN is a computer reservation system used by Northwest
Airlines and many other airlines and travel agents. Their Web site
provides information on the history of WORLDSPAN and more recent
products and services.
13 Chapter A4148 23218 6/8/01 6:26 PM Page 379

13Planning
Objectives
After reading this chapter, you will be able to:
1. Discuss the project management planning processes and outputs and describe
how they were used on ResNet
2. Describe how Northwest Airlines organized the scope of work on ResNet
using work breakdown structures
3. Discuss how Microsoft Project was used to aid in project planning on ResNet
4. Review and discuss real-world examples of work breakdown structures, cost
estimates, staffing plans, and a project organizational chart for a large infor-
mation technology project
5. Discuss key decisions the project manager and team made in the planning
process
6. Relate some of the planning events in ResNet to concepts described in previ-
ous chapters
7. Understand the contribution that good planning makes to project success

P eeter Kivestu and Arvid Lee took the lead in creating project
plans for all the ResNet projects. Peeter had a strong finance
background and understood the airline business well. His work in
writing the PR2 was instrumental in getting funding for the ResNet
1995 and 1996 projects. Arvid had the most experience working on
information systems projects at NWA, and he was good at getting
input from the people who would be involved in executing the plans.
However, Arvid was having a difficult time deciding what level of
detail to use in planning the project scope and schedule. A friend of
his had spent a lot of time planning a large information technology
project for his organization, and he had nothing but horror stories to
tell. He couldn’t keep track of the details, the changes, and what
actually occurred on the project versus what was in the plan, even
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380 ■ C H A P T E R 1 3

with the aid of project management software. How should Arvid and
the ResNet team plan the work that needed to be completed so they
could actually focus on getting the job finished? How should they
communicate the plan and keep it updated?

WHAT IS INVOLVED IN PROJECT PLANNING?

Planning is often the most difficult and most unappreciated process in project
management. Many people have negative views of planning because the plans
created are not used to facilitate action. The main purpose of project plans,
however, is to guide project execution. To guide execution, plans must be real-
istic and useful. To create realistic and useful plans, a fair amount of time and
effort must go into the planning process, and people knowledgeable in doing
the work need to plan the work.
Unlike initiating, which generally involves only one knowledge area, plan-
ning concerns activities in every knowledge area:
■ Project integration requires developing the overall project plan.
■ Project scope management includes scope planning and scope definition.
■ Project time management includes activity definition, sequencing, dura-
tion estimating, and project schedule development.
■ Project cost management includes resource planning, cost estimating, and
cost budgeting.
■ Project quality management includes quality planning.
■ Project human resource management includes organizational planning
and staff acquisition.
■ Project communications management includes communications planning.
■ Project risk management includes risk management planning, risk identi-
fication, qualitative risk analysis, quantitative risk analysis, and risk
response planning.
■ Project procurement management includes procurement planning and
solicitation planning.
Table 13-1 lists the project management knowledge areas, processes, and
outputs of project planning. You can see there are many outputs from the plan-
ning process group. ResNet documents produced during the planning process,
and discussed in this chapter, include a project plan, work breakdown struc-
ture, project schedule, cost estimates, and an organizational chart.
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PLANNING ■ 381

Table 13-1: Planning Processes and Outputs

KNOWLEDGE AREA PROCESS OUTPUTS

Integration Project Plan Development Project Plan
Supporting Detail
Scope Scope Planning Scope Statement
Supporting Detail
Scope Management Plan
Scope Definition WBS
Scope Statement Updates
Time Activity Definition Activity List
Supporting Detail
WBS Updates
Activity Sequencing Project Network Diagram
Activity List Updates
Activity Duration Activity Duration Estimates
Estimating
Basis of Estimates
Activity List Updates
Schedule Development Project Schedule
Supporting Detail
Schedule Management Plan
Resource Requirement Updates
Cost Resource Planning Resource Requirements
Cost Estimating Cost Estimates
Supporting Detail
Cost Management Plan
Cost Budgeting Cost Baseline
Quality Quality Planning Quality Management Plan
Operational Definitions
Checklists
Inputs to Other Processes
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382 ■ C H A P T E R 1 3

Table 13-1: Planning Processes and Outputs (continued)

KNOWLEDGE AREA PROCESS OUTPUTS

Human Resource Organizational Planning Role and Responsibility Assignments
Staffing Management Plan
Organizational Chart
Supporting Detail
Staff Acquisition Project Staff Assigned
Project Team Directory
Communications Communications Planning Communications Management Plan
Risk Risk Management Planning Risk Management Plan
Risk Identification Risks
Triggers
Inputs to Other Processes
Qualitative Risk Analysis Overall Risk Ranking for the Project
List of Prioritized Risks
List of Risks for Additional Analysis
and Management
Trends in Qualitative Risk Analysis
Results
Quantitative Risk Analysis Prioritized List of Quantified Risks
Probabilistic Analysis of the Project
Probability of Achieving the Cost and
Time Objectives
Trends in Quantitative Risk Analysis
Results
Risk Response Planning Risk Response Plan
Residual risks
Secondary risks
Contractual Agreements
Contingency Reserve Amounts
Needed
Inputs to Other Processes
Inputs to a Revised Project Plant
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PLANNING ■ 383

Table 13-1: Planning Processes and Outputs (continued)

KNOWLEDGE AREA PROCESS OUTPUTS

Procurement Procurement Planning Procurement Management Plan
Statement(s) of Work
Solicitation Planning Procurement Documents
Evaluation Criteria
Statement of Work Updates

DEVELOPING THE PROJECT PLANS

Recall that ResNet actually involved three related projects: the ResNet Beta
project, ResNet 1995, and ResNet 1996. Planning for the first two projects will
be discussed briefly, then the emphasis of this and subsequent chapters will be
on the ResNet 1996 project. Descriptions of the ResNet 1996 project plans are
provided by knowledge area.

ResNet Beta Project Planning

In May of 1993, Peeter asked Arvid Lee to lead development of a project plan
for the ResNet Beta project. Recall that Peeter wanted the plan completed in
one week. The main purpose of the ResNet Beta project was to prove the con-
cept and business value of moving to a PC-based reservation system. The tasks
involved were purchasing new reservations software, developing new soft-
ware, installing the system on a small group of new PCs, testing the system,
and documenting the potential benefits. Peeter insisted that the ResNet Beta
project be completed by August of 1994 so they could use the results to justify
obtaining funds for a follow-on ResNet project in the next budget cycle.
Arvid was familiar with planning and implementing hardware, software,
and networking technologies for NWA and had experience working with the
users and vendors involved. He was familiar with PCs and performing beta
projects. He also knew whom to contact for help in quickly preparing a good
plan. Arvid recruited people from various areas to help him craft and later
implement a plan for the ResNet Beta project. He was careful to create a plan
that focused on everyone doing his or her part to be successful. A few impor-
tant decisions that were made in planning the ResNet Beta project included:
■ Planning at a fairly high level: Learning from a friend’s experience, Arvid
was careful not to get carried away by planning in too much detail. He
trusted his colleagues to perform their jobs well, so he focused on
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384 ■ C H A P T E R 1 3

deliverables and results and not the details of how the work would be
accomplished. Since performing any beta project involves a high degree of
creativity, Arvid felt it was important to let everyone work together cre-
atively to produce those deliverables and results.
■ Getting strong user involvement: Kathy Christenson, an analyst from the
marketing and sales division of NWA, had firsthand experience working with
sales agents and led the ResNet application development area. Kathy and her
team of agents were a critical part of defining the requirements for the soft-
ware and actually did most of the software customization (see Chapter 14,
Executing). Arvid was open to this innovative approach to ensuring strong
user involvement in the project and worked well with non-IS staff.
■ Developing a solid measurement tool: Following Peeter’s advice, Arvid
had several industrial engineers assigned to the project. They planned to do
detailed studies of the current reservation system to find areas for improve-
ment (a procedure known as process reengineering) and then measure the
impact of the new reservation system. They asked questions such as “Did
the new system increase the sales conversion percentage? Did the new sys-
tem decrease call handle time?” Arvid included plans for developing this
measurement tool for ResNet in the project plan for the beta test.

ResNet 1995 Planning

After successfully completing the ResNet Beta project, the ResNet team had to
create a plan for installing PCs in various sales offices. The ResNet 1995 plan
was to install PCs and software in Baltimore (339 PCs), Tampa (289 PCs), and
the international portion of the Minneapolis/St. Paul (82 PCs) reservations
offices. The plan also involved developing customized applications for specialty
and support desks, two business areas related to the reservations process.
Arvid consulted with key stakeholders to develop these plans. The IS
Department had experience installing PCs and networks, so he used that
knowledge base to plan the installations. He also had a good idea of the
amount of work and time involved in doing more software development and
used that knowledge to create plans for customized application development.
Arvid consulted with other experts inside the company and outside the com-
pany to develop realistic timelines for the work involved.

ResNet 1996 Planning

Because of the ResNet Beta project and the 1995 project, Peeter, Arvid, and
their team had a wealth of information available when they prepared the plan
for the ResNet 1996 project. Their successful experiences with the ResNet Beta
and 1995 projects helped them define scope, time, cost, and other dimensions
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PLANNING ■ 385

of the 1996 project. In August of 1995, Peeter prepared another Purchase

Request 2 (PR2) for NWA’s finance committee to review and then decide on
continued funding for ResNet. The PR2 included the following information:
■ Executive summary
■ Brief justification
■ Background
■ Need
■ Opportunity
■ Justification
■ Risk
■ Other benefits
■ Next steps
■ Post implementation audit
■ NPV schedule
■ Attachments
The justification section included information on increased revenue,
enhanced quality processes, reduced operating costs, and new revenue genera-
tion based on the ResNet 1995 project. The risk section included information
about software, change management, and implementation. The attachments
included one-time and ongoing expenses, an application development time-
line, and a summary of ResNet performance. The summary of ResNet perfor-
mance included the implementation schedule performance in 1995, the budget
versus actual spending performance for the ResNet 1995 project, measurement
objectives, performance results in the Baltimore call center, and a qualitative
feedback summary of the project. The PR2—for all intents and purposes a proj-
ect plan—provided a great foundation for convincing the finance committee to
fund the ResNet 1996 project. It also provided a great foundation for enabling
the project team to execute the project.

What Went Right?

The PR2 for the ResNet 1996 project included performance results from implementing
ResNet in Baltimore in 1995. Because the project team developed measurement tools and
used them on the ResNet 1995 project, they had a strong business case for justifying fur-
ther investments in the ResNet 1996 project. The actual results of the call handle time in
Baltimore showed a 6.7 percent improvement after implementing ResNet. The percentage
of direct ticket sales increased from 3.2 percent to 7.5 percent. This increase in direct sales
translated to over $15 million in profits that ResNet generated in 1995 alone.
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386 ■ C H A P T E R 1 3

DETERMINING PROJECT SCOPE AND SCHEDULES

The two primary goals of ResNet 1996 were further software development and
seven office implementations. These two efforts were interdependent because
application development drove the timing of office implementation. Table 13-2
shows the planned software development and office implementation mile-
stones as presented in the PR2 project plan dated August 29, 1995.

Table 13-2: Planned Software Development and Office Implementation

Milestones
SOFTWARE DEVELOPMENT DATE OFFICE IMPLEMENTATION DATE
MILESTONE MILESTONE
International sales in 10/95 Minneapolis/St. Paul (MSP) 10/95
production international desk completed
WorldPerks in 3/96 New York City (NYC) and 12/95
production Detroit (DTT) facilities ready
Specialty and support 8/96-12/96 WorldPerks office rollout 3/96-12/96
desk production rollout
Sales Action Center 12/96 National/International sales 11/96
in production offices completed
Specialty sales/support 12/96
desks completed

Northwest Airlines used Microsoft Project (one of the first versions avail-
able) to aid in planning the scope and schedule for ResNet. They created two
separate files for the software development and office implementation efforts.
Figure 13-1 shows the actual Gantt chart used to plan ResNet 1996 software
application development. The project team also had more detailed schedules
based on this Gantt chart; however, they did not link tasks using the software.
Instead, they manually entered the dates for each task. The ResNet staff only
created Gantt charts to aid them in initial planning. They did not plan to enter
actual information or use critical path analysis, so they did not link the tasks in
Microsoft Project. They were very careful in setting the milestone dates, and
they missed none of them.
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PLANNING ■ 387

Figure 13-1. ResNet 1996 Application Development Gantt Chart

NWA developed a much more detailed Microsoft Project file for the ResNet
1996 office installations than for the software application development effort.
Figure 13-2 shows part of the WBS for the office installations, which NWA
staff created using a combination of the phase-oriented and product-oriented
approaches for developing a WBS (see Chapter 4, Project Scope Management). For
example, each office was a separate Level 1 WBS item. Figure 13-2 also shows
a WBS Level 2 view of the office implementation plan for Office 1, New York
City. Each of the seven offices followed the same phase-oriented approach.
There were phases for each office for pre-implementation preparation, infra-
structure implementation, change management, agent conversion, and
achieving office goals.
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388 ■ C H A P T E R 1 3

ResNet 1996

1.0 Office 1 2.0 Office 2 5.0 Office 5 8.0 FAX 9.0 ResDoc 10.0 Computer
New York City Iron Range Reserva- Seattle Telephony
(NYC) tions Center (IRRC) (SEA) Integration (CTI)

1.1 Phase 1: 3.0 Office 3 6.0 Office 6 8.1 FAX Testing/ 9.1 Finalize 10.1 Beta Test -
Pre-Implementation Detroit Honolulu Certification Requirement MSP
Preparation (DTT) (HNL)

1.2 Phase 2: 4.0 Office 4 7.0 Office 7 8.2 Developer 9.2 Functional 10.2 Alpha Test
Infrastructure Minneapolis/St.Paul Los Angeles Implementation Analysis Hibbing (HIB)
Implementation (MSP) (LAX)

1.3 Phase 3: 8.3 Pre-Installation 9.3 Customer 10.3 Production

Change Task Correspondence Re- System in Hibbing
Management placement Design

1.4 Phase 4: 8.4 Word Processing 9.4 ResNet

Agent Implementation Application
Conversion (Word/FAX) Design

1.5 Phase 5: 8.5 Specialty Desk 9.5 User

Achieve Implementation Procedures
Office Goals and Training

9.6 Programming
and
Unit Testing

9.7 System Test

9.8 Implementation
Note: 1.1-1.5 above
repeat for all 7 offices. 9.9 Post
Implementation
Audit

Figure 13-2. ResNet 1996 Level 2 WBS for Office Implementations

The development and implementation of facsimile (FAX) capabilities, the

ResDoc customer documentation system, and the Computer Telephony
Integration (CTI) system, which could be viewed as major products of the proj-
ect, were also Level 1 WBS items. The Level 1 WBS item called FAX included
the development and implementation of facsimile capability from the ResNet
PCs. The ResDoc WBS item refers to the letter-writing system that generates
correspondence for members of NWA’s frequent flier program called WorldPerks.
The CTI WBS item represents the Computer Telephony Integration (CTI) part
of the ResNet 1996 project. CTI is a system that connects the telephone system
to the ResNet computers. For example, when customers call NWA, they can
respond to telephone prompts. Depending on what telephone buttons they
press, the ResNet system will direct the call to a particular type of ResNet
agent—domestic versus international, for example—and that agent’s computer
screen will pull up information on the customer’s needs, according to the tele-
phone prompt responses.

What Went Wrong?

There was a lot of political pressure related to the Iron Range Reservations Center (IRRC) in
Chisholm, Minnesota. The state of Minnesota funded a large portion of this office, which
was the central point for handling the WorldPerks system. The WorldPerks implementation
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PLANNING ■ 389

date of March 31, 1996, was firm. The ResNet team was a little overconfident in their plan-
ning, and several problems developed. WorldPerks involved a new communications proto-
col, and the ResNet team did not plan enough time up-front to analyze all of the system
requirements. They expedited testing, and there were several quality problems that were dif-
ficult to resolve because of a lack of precision in planning.

Figure 13-3 shows part of the actual Microsoft Project Gantt chart used for
ResNet 1996 office installations. Notice that the WBS follows the structure
shown in Figure 13-2. Although the Level 2 WBS items for each office were
the same, the Level 3 items beneath them (not shown in this figure) varied to
meet the particular needs of each office. There were a total of 821 tasks in the
Microsoft Project file for the 1996 office installations. The ResNet project team
focused on meeting key milestone dates, so they worked to finish tasks on
time. They missed none of these completion dates even though there were definite chal-
lenges in doing so.

Figure 13-3. ResNet 1996 Office Implementation Gantt Chart

The ResNet 1996 project team broke down the scope of the office installa-
tions to WBS Level 3, as follows:
1.1 Phase 1: Pre-Implementation Preparation
1.1.1 Modify Facilities for the Floor
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390 ■ C H A P T E R 1 3

1.1.2 Modify Facilities for Communications Room

1.1.3 Conduct Pre-Implementation Site Visit
1.1.4 Prepare for Network Pre-Installation
1.1.5 Order all ResNet Equipment Components
1.1.6 Request Communication lines
1.1.7 Develop Training Schedule
1.1.8 Develop Phased Implementation Plan
1.1.9 Order Physical Security Devices for PCs
1.1.10 Conduct On-Site Planning Session
1.1.11 Conduct Change Management Site Visit
1.1.12 Conduct Awareness Programs
1.1.13 Validate PC Image
1.1.14 Define Electronic Distribution Manager (EDM) services
for office
1.2 Phase 2: Infrastructure Implementation
1.2.1 Install all components in Communications Room
1.2.2 All native WORLDSPAN (WSP) training terminated
1.2.3 Install PCs in Training Room
1.2.4 Test and Stabilize IS Components
1.2.5 IS Certification Completed
1.3 Phase 3: Change Management
1.3.1 Train Supervisor Agent Coordinators in MSP
1.3.2 Provide 2 Temporary Awareness PCs
1.3.3 Install Buffer Area PCs and Demo PCs
1.3.4 Train the Trainer (TTT)
1.3.5 Install PCs: Trainers/Early Trained Agents
1.3.6 Train Supervisors in ResNet
1.3.7 Train Managers in ResNet
1.3.8 Install PCs for Managers, Supervisors, Podium
1.3.9 Conduct Manager Measurement Strategy Meeting
1.3.10 Develop Continuous Improvement Plan
1.3.11 Train Floor Support Agents
1.3.12 Install PCs for Floor Support Agents
1.3.13 Conduct Manager/Supervisor Strategy Meeting
1.3.14 Train Office Administration and Staff in Windows Applications
1.3.15 Install PCs for Office Administrative Staff
1.3.16 Conduct Office Kickoff
1.4 Phase 4: Agent Conversion
1.4.1 Conduct Agent Conversion Training (ACT) [phased]
1.4.2 Install PCs for Conversion Agents [phased]
1.4.3 Office Conversion Completed
1.4.4 ResNet Agent Measurement Completed
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1.5 Phase 5: Achieve Office Goals

1.5.1 Implement Continuous Improvement Plan
1.5.2 Analyze Airline Control Protocol (ALC) Line Utilization
1.5.3 Conduct Recurrent Training
1.5.4 Complete Test and Balance of Facility
1.5.5 Conduct Focus Groups
1.5.6 Conduct Post Implementation Review
The ResNet 1996 project plans were not broken down any further than WBS
Level 3 for the offices, but they were broken down to Level 4 for the Fax and
CTI areas. For example, samples of Level 4 items for the FAX part of the ResNet
1996 project were:
8 FAX
8.1 FAX Testing / Certification
8.1.1 Install Fax Server for Evaluation
8.1.1.1 Order equipment/software
8.1.1.2 Set up the PBX
8.1.1.3 Install T1
8.1.1.4 Install Fax Server
8.1.1.5 Install FAX client software

RESNET COST ESTIMATES

Peeter, Arvid, and other members of the ResNet team prepared detailed cost
estimates, especially for the ResNet 1996 project. Most of the costs involved pur-
chasing hardware, software, and network equipment, and they used vendor
quotes for these items. They also had a good understanding of internal costs for
installing hardware, software, and networks. The internal development costs for
coding and training were based on estimates of the number of people needed
from various departments and the labor cost per hour for those employees.
Table 13-3 shows the maximum departmental headcounts by year for the
1995 and 1996 ResNet projects and for supporting ResNet through 1998. This
information was included in the PR2 and provided the basis for the labor cost
estimates. The IS Department staff included personnel to perform industrial
engineering functions (such as developing and implementing the measurement
system), application development, network operations and development, and
marketing application management and support. The staff from the Marketing
Systems Department included a project analyst, an application development
person to assist with the industrial engineering functions, and an administra-
tive assistant. The Reservations Department staff included reservation agents
who worked on application development, additional reservation agents for
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392 ■ C H A P T E R 1 3

testing, change management analysts, training and awareness staff, applica-

tions support/maintenance staff, and reservation agents for the ResNet Hotline
(a special help desk for handling agents’ questions related to ResNet). The con-
tractor headcount included people from Sabre Decision Technologies who
assisted in application design and development and people to assist in ResNet
distributed system implementation.

Table 13-3: Maximum Departmental Headcounts by Year

DEPARTMENT 1994 1995 1996 1997 1998 TOTALS

Information Systems 24 31 35 13 13 116
Marketing Systems 3 3 3 3 3 15
Reservations 12 29 33 9 7 90
Contractors 2 3 1 0 0 6
Totals 41 66 72 25 23 227

Peeter and his team had a high degree of confidence in their cost estimates
because they had drawn on a large experience base. They knew what it would
cost to purchase PCs and other hardware. They knew what their labor costs
were. The main risk was in labor costs for application development. Peeter and
Fay determined the maximum headcount by year, as shown in Table 13-3.
They budgeted for people to work on developing, testing, and enhancing the
ResNet software, and they chose to make the functionality of the system fit
within the confines of what the people allocated to work on it could accom-
plish. This choice forced everyone to prioritize his or her work and focus on
doing what was most important.
Table 13-4 summarizes the cost estimate for the ResNet 1995 and 1996 proj-
ects and on-going and recurring costs for ResNet after the projects would be
completed. Peeter and his team provided many detailed calculations to support
this estimate in the PR2. Notice the heavy investments in computer equipment,
facilities/buildings, and software in 1994, 1995, and 1996. Also notice that
costs were projected based on a five-year system life for ResNet, or the system’s
life cycle cost. The total life cycle cost estimate for ResNet was over $42 million.
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PLANNING ■ 393

Table 13-4: Summary of ResNet Total Life Cycle Costs

1994 ($) 1995 ($) 1996 ($) 1997 ($) 1998 ($) 1999 ($) TOTAL ($)
Computer 325,779 4,337,036 8,487,495 - - - 13,150,310
equipment
Facilities/ - 974,372 1,072,969 - - - 2,047,341
buildings
Software 563,627 2,517,590 1,704,575 - - 4,785,792
Total one- 889,406 7,828,998 11,265,039 - - - 19,983,443
time capital
expenditures

Capitalized 88,627 1,589,191 1,704,575 3,382,393

labor one-
time costs

One-time 38,040 748,267 1,265,323 60,000 2,111,630

labor costs

Ongoing 108,675 1,101,809 3,150,414 2,787,984 2,710,982 2,710,981 12,570,845

operating
labor

Total labor 235,342 3,439,267 6,120,312 2,847,984 2,710,982 2,710,981 18,064,868

and
consultant
costs

Recurring - 601,249 559,794 805,549 829,715 854,607 3,650,914

computer
equipment

Recurring - 6,100 41,610 42,858 44,144 45,468 180,180

facilities/
buildings

Recurring - - 162,050 206,912 213,119 219,512 801,593

software

Total
recurring - 607,349 763,454 1,055,319 1,086,978 1,119,587 4,632,687
expenses

TOTAL 1,124,748 11,875,614 18,148,805 3,903,303 3,797,960 3,830,568 42,680,998

COSTS
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394 ■ C H A P T E R 1 3

HUMAN RESOURCE AND COMMUNICATIONS PLANNING

Two of Peeter’s strongest assets were his ability to motivate people and to pro-
vide strong communications with project stakeholders. He was good at using
informal networking to accomplish a great deal of work. For example, recall
that Peeter recruited people to work on ResNet before the beta project was offi-
cially funded.
Peeter and his team were also good at creating formal human resource and
communications plans. Table 13-5 shows the staffing plan Peeter created for the
ResNet 1995-1996 PR2. This plan provided detailed estimates of the number of
person-months ResNet would require from each department for its five-year
system life. Peeter and his team further broke down the staffing needs by the
category of people in each department. This detailed staffing plan provided a
strong basis for the labor cost estimates and for assigning people to the project.

Table 13-5: ResNet Staffing Plan (in person-months)

DEPARTMENT 1994 1995 1996 1997 1998 TOTALS

Information Systems
Application Development (IE) 4 12 6 0 0 22
Application Development (IS) 30 135 86 0 0 251
WorldPerks Service Center 0 15 5 0 0 20
Application Development (IS)
Network Operations and Development 20 60 10 0 0 90
Network and Systems Support 30 96 96 96 96 414
Marketing Application Management 4 12 12 12 12 52
Application Support 0 6 36 48 48 138
Total Information Systems Department 88 336 251 156 156 987
Marketing Systems
Project Analyst 4 12 12 12 12 52
Application Development (IE) 4 12 12 12 12 52
Administrative Assistant 4 12 12 12 12 52
Total Marketing Systems Department 12 36 36 36 36 156
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PLANNING ■ 395

Table 13-5: ResNet Staffing Plan (in person-months) (continued)

DEPARTMENT 1994 1995 1996 1997 1998 TOTALS

Reservations Department
Application Development 20 87 42 0 0 149
(Reservations Agents)
Alpha Testers (Reservations Agents) 0 24 12 0 0 36
WorldPerks Service Center 16 44 0 0 0 60
Application Development
Sales Action Center 0 4 18 0 0 22
Application Development
Change Management Analyst 4 12 12 12 12 52
Training and Awareness 8 24 6 0 0 38
(Reservations Agents)
Support/Maintenance 0 27 106 96 72 301
(Reservations Agents)
ResNet Hotline (Reservations Agents) 0 60 30 0 0 90
Total Reservations Department 48 282 226 108 84 748
Contractors
Application Design and 3 18 6 0 0 27
Development (Sabre)
ResNet Distributed System 4 4 0 0 0 8
Implementation Support
Total Contractors 7 22 6 0 0 35

Grand Total Person-Months 155 676 519 300 276 1926

(Including Contractors)

Figure 13-4 shows the organization chart for ResNet as of 4/19/95. Even
though most ResNet staff did not directly report to Peeter (noted by the many-
dotted line relationships on the chart), he seemed to have no problem manag-
ing them. Peeter motivated people by providing them with challenging work
and strong leadership. He also made sure that the functional area managers
supported ResNet and encouraged their staff to do a good job on this highly
visible project. NWA was a strong functional organization, but most of the peo-
ple assigned to work on ResNet were assigned full-time. Having people
assigned full-time also made it easier for Peeter to manage such a large group
of people.
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396 ■ C H A P T E R 1 3

Dennis Halloran Norm Renner Tom Vande Hal Peeter Kivestu Joan Charmas Bob Dufek
Systems Res. System SW Ntwk Res ResNet Proj Mktg & Cust Svc Ping & Support
Director Director Direcor Director Director Director

Amy Wages Mike Cameron Ron Vychal Kathy Krammer Nancy Strobel Lori Manacke Tom Rath Joe Santos
Help Desk Distributed Network Dev ResNet Appl ResNet Chg Reservations Prod Sys Sup Info Center
Manager Sys Manager Manager Development Management Appl Mgr Manager Manager

Marte Baklus Randy Pool Jim Campbell Arvid Lee Dan Newstrom
Help Desk Sys SW Splst NR ResNet IS ResNet Operations
Analyst Project Mgr Project Mgr Research
Mike Anenson Michael Besch Randy
Cicily Johnson Pemberton
Kim Kuppenbender Project Mgr
Ruby Madison

Network Network Network Mona Oass Dave Jim Foster

Development Services Operations ResNet TL Hopperstad Proj Control
ResNet TL Analyst

Mike Fulkerson Paul Battaglia (NYC) Rich Peterson Tom Atz Hugh Plappert
Liani Lee Larry Buesgens George Sandmeyer (MSP) Nancy Hansen Dirk Viskar
Steve Muench Diana Comwell Dave Timp Min Zhuang
Doug Smart Todd Grimm (SEA)
Teresa Kendershott
Frank Kluge (HQA)
Roy Knap (BWI)
Mark Kummer (DTT)
Keith Long (LAX)
Alan Millar (TPA)
Dean Oines (CHIS) Mike Powers
Mark Sparks (MSP) Ken Bletz Sandy Hart Israel Hill
Keith Struck ESD Change Mgmt Level 4 Comp MS Office
Dave Vesper (TPA) Training
Sue Bromen Jim Kath
Cyndi Gust
Kaye Hayes

Figure 13-4. ResNet Project Organization Chart

The ResNet team created templates for communicating project information.

For example, they had templates for weekly and monthly status reports. They
also set up a shared network drive for all project information. Anyone working
on the ResNet project could access project files, including the Microsoft Project
files. The templates and shared network drive helped the team share informa-
tion and be more efficient in creating project documents.
The ResNet team also established regular meeting times for the technical
project personnel, the management team, and senior management. Peeter,
Arvid, and Kathy all had prior project experience, and they knew how impor-
tant it was to have good communications with all project stakeholders.
Establishing regular meeting times facilitated strong communications through-
out the project.

QUALITY, RISK, AND PROCUREMENT PLANNING

The PR2 included a few paragraphs related to project quality, risk, and procure-
ment planning, but ResNet did not include formal plans in each of these areas.
The ResNet team, however, developed and followed strategies for success in
each of these areas. For example, the measurement techniques for tracking call
handling time and number of direct sales closed were critical elements in
assessing the quality of the system. The PR2 also included plans for which
hardware and software vendors ResNet would use based on their technical
approach and NWA’s prior experience with preferred vendors.
The PR2 included a brief discussion of plans to manage risks, especially for
software development. Risk is always a part of software development, and
NWA relied on advice from their primary software vendor, Qantas, to mitigate
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PLANNING ■ 397

these risks. Qantas’ approach to reducing software development risks was to

follow the best practices in the airline reservations industry. For example,
Qantas recommended that NWA use QIK ACCESS (QIK 1 and later QIK 2)
software. QIK ACCESS is interface application software that many other air-
lines have used for creating interfaces to their reservation systems. NWA chose
to purchase software that was a proven tool instead of creating a customized
tool. Qantas also recommended that NWA have reservation agents instead of
information services people use the QIK ACCESS software to help develop the
ResNet interface. By having users be the primary software developers for the
ResNet interface, the project team minimized the risk of not understanding
user requirements. (The software development process is discussed further in
Chapter 14, Executing.)
In the area of procurement planning, the ResNet team analyzed several ven-
dors for hardware and software. They developed good relationships with their
vendors, primarily Qantas, the company that provided QIK Access. They also
hired outside contractors from Sabre Decisions Technology to assist them in the
software development process. These contractors had experience in using QIK
ACCESS for other reservation systems, and they provided training and advice
for using the software. NWA also had good contracts with their vendors. For
example, when the communications hardware for the Chisholm office was not
working properly, NWA exercised their rights in a contract clause to have the
vendor fix the hardware at no charge to NWA.
It is difficult to summarize all of the planning done on such a large, impor-
tant information technology project. NWA did an extensive job of planning its
ResNet projects. The PR2 provided detailed planning information tailored to
the needs of the ResNet project. The ResNet project team took planning very
seriously, and their plans provided the basis for successful project execution.

CASE-WRAP UP
Arvid decided to focus on Level 3 in most of the project planning to
avoid getting lost in the details. Each person responsible for the
Level 3 items could do their own, more detailed, planning. Peeter
and Arvid found that having project plans focused on key deliver-
ables and at a Level 3 or 4 WBS worked well in managing the proj-
ect. Following NWA’s PR2 guidelines for submitting project plans
also aided Peeter in preparing a good project plan. Microsoft Project
was useful for project scheduling. NWA liked to keep its overhead
low, and this software tool provided a very inexpensive way to
prepare several planning documents such as Gantt charts and
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398 ■ C H A P T E R 1 3

schedule-related reports. Arvid also set up a shared drive on their

local area network so the ResNet team members could all easily
view the Microsoft Project files and other documentation. Arvid and
other team members ran several reports from Microsoft Project, such
as a list of tasks due by each person each month. The ResNet plans
were a critical asset for guiding project execution.

C H A P T E R S U M M A R Y
Project planning involves all nine of the project management knowledge areas.
Many processes and outputs are involved in project planning. ResNet planning
documents included a project plan, work breakdown structure, project sched-
ule, cost estimates, and project organizational chart.
Factors that contributed to successful planning, and later successful imple-
mentation, of ResNet included planning at a WBS Level 3 or 4, getting strong
user involvement, and developing a solid measurement tool to track overall
project benefits.
Planning for the ResNet 1996 project focused on software development and
office implementation milestones. The project team used experience gained
during the ResNet Beta and ResNet 1995 projects to create realistic estimates
for the time and costs involved. They also followed company guidelines in cre-
ating their PR2, NWA’s version of a project plan.
The NWA ResNet team used Microsoft Project to assist in project planning,
although they did not use all of the Microsoft Project features and tools. They
developed Gantt charts and set milestone dates that allowed them to establish
realistic schedules and helped them meet their goals.
The project team used vendor quotes to estimate ResNet 1996 costs for pur-
chasing hardware, software, and network equipment. They based internal
development costs for coding and training on estimates of per-hour labor costs
of people from various departments. Because the team drew on a large experi-
ence base, they had a high degree of confidence in their cost estimates.
The ResNet team created staffing plans and documents and procedures to aid
in project communications management. The PR2 for the ResNet 1996 project
provided detailed staffing information for ResNet throughout the project’s life
cycle. The team prepared templates for project communications and shared
information on a local area network drive.
The PR2 included information related to quality, risk, and procurement
planning. Although they did not write separate plans for each of these areas,
the ResNet team developed and followed successful strategies for managing
these areas.
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PLANNING ■ 399

DISCUSSION QUESTIONS
1. Review the list of processes and outputs involved in project planning.
Which outputs did NWA emphasize?
2. Discuss Peeter’s request for Arvid to create a plan for the ResNet Beta
project in one week. How would you react to this request? Is it realistic to
take only one week to plan a project that will last more than a year? How
do you think Peeter made this request so that Arvid responded so well?
3. What planning decisions were made on the ResNet Beta project that
helped ensure successful completion?
4. What made it easier for the ResNet team to develop plans for the 1996
ResNet project? What challenges did they face?
5. Review the Gantt charts for the ResNet 1996 application development
and office implementation. Why do you think these were created as two
separate Gantt charts? Why do you think the project team did not link
activities in Microsoft Project? Do you think linking activities in project
management software is done often on real projects? Why or why not?
6. Review the WBSs and cost estimates provided. Discuss any questions you
might have about them.

EXERCISES
1. Review the items NWA includes in their PR2 planning documents.
Suggest other items that should be included. Create a new outline for a
project plan based on your suggestions. Briefly describe what should be
included in each area.
2. Compare the WBSs provided in this chapter with information in Chapter 4
on project scope management. Provide five suggestions for improving the
WBSs for ResNet.
3. Develop a list of questions for which you would need the answers in
order to link tasks and create a network diagram for ResNet software
application development. Do the same for the office implementations.
4. Review the project organizational chart for ResNet. List which groups you
think had the main responsibility for each task in the Gantt charts. Create
a responsibility assignment matrix as described in Chapter 8, Project
Human Resource Management.

MINICASE
Developing a good project schedule is an important output of the planning
process. As stated in this chapter, NWA did an excellent job of developing real-
istic project schedules and used Microsoft Project to generate Gantt charts, but
they did not link tasks in their files.
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400 ■ C H A P T E R 1 3

Part 1: Review the Gantt chart for the ResNet 1996 Application Development.
Using Project 2000, re-create this file with some improvements. For example,
link tasks that you think should be linked. Also include the milestones for soft-
ware development listed in Table 13-2 on your Gantt chart.
Part 2: Review the Gantt chart for the ResNet 1996 Office Implementation.
Using Project 2000, re-create this file with some improvements. For example,
link tasks that you think should be linked. Also include the milestones for
office implementation listed in Table 13-2 on your Gantt chart.

SUGGESTED READINGS
1. Kouzes, James M. and Barry Z. Posner. The Leadership Challenge. San
Francisco, CA: Jossey-Bass, 1990.
Kouzes and Posner show that leadership is not the private preserve of a
few charismatic people, but a learnable set of practices that virtually
anyone can master. They suggest that leadership involves five basic
practices—challenge the process, inspire a shared vision, enable others
to act, model the way, and encourage the heart.
2. Levesque, Paul. Breakaway Planning. Amacom Books, A Division of
AMA, 1998.
This book walks readers through the entire planning process, from cre-
ating a compelling vision to making that vision a reality. Levesque
describes eight important questions to address in planning, such as:
How do we spread the word internally? How will we make things bet-
ter for employees? How do we measure success?
3. Lientz, Bennet P. and Kathryn P. Rea. Breakthrough Technology Project
Management. San Diego, CA: Academic Press, 1999.
This text describes how to carry out collaborative scheduling and plan-
ning for information systems projects. The authors share their experi-
ences by providing over 250 guidelines and lessons learned that
address many of the issues project teams face in developing informa-
tion systems.
4. Maguire, Steve. “Getting Your Team Off on the Right Foot.” Software
Development (May 1997): 37–44.
A former Microsoft project manager offers advice for planning and man-
aging project teams. He suggests stressing that project team members
can create high-quality products, that the work can be done on time, that
team members should not be required to put in long hours or seven-day
workweeks, and that people should be excited about the work.
14 Chapter A4148 23218 6/8/01 6:26 PM Page 401

14Executing
Objectives
After reading this chapter, you will be able to:
1. Understand how important good project execution is to getting work results
2. Discuss the executing processes and outputs and how they were used on ResNet
3. Describe Peeter’s leadership style and how he developed the core team
4. Discuss methods used to verify project scope and assure quality on ResNet
5. Describe how the ResNet team disseminated information to project stakeholders
and managed project procurement
6. Explain NWA’s rationale for having sales agents write some of the code for the
ResNet system
7. Relate some of the executing events in ResNet to concepts described in previous
chapters

O ver 100 people gathered in the large conference room at the

headquarters of Northwest Airlines in Minneapolis, Minnesota.
The invited guests included reservation sales agents, their supervi-
sors and office managers, people from the Information Services
Department, and people from the Facilities, Purchasing, and Quality
departments. They were all looking forward to the ResNet 1996
Kickoff/Strategy Meeting. This project would include developing
more custom software and completing the installation of ResNet at
the remaining seven reservations and support offices.
Based on the success of the Beta project and the ResNet 1995 proj-
ect, stakeholders had high expectations of Peeter Kivestu and his
ResNet team. Peeter believed in making projects fun, and the ResNet
team was especially known for having great project kickoff events.
In addition to clarifying project objectives, the ResNet team provided
great food, gave away coffee mugs and other items with the ResNet
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402 ■ C H A P T E R 1 4

logo, and made everyone feel welcome and excited about the project.
Peeter even hired professional actors to coach his team on delivering
engaging presentations and to help them act out some of the skits
performed at the kickoff meeting. Now the ResNet team had to
deliver what they had promised and make it an enjoyable experience
for all stakeholders. Could they install over 2,000 more PCs in seven
different offices as scheduled? Given the budget and time con-
straints, could they develop the necessary software?

WHAT IS INVOLVED IN EXECUTING PROJECTS?

Project execution involves taking the actions necessary to ensure that activities
in the project plan are completed. The products of the project are produced
during project execution, and it usually takes the most resources to accomplish.
Table 14-1 lists the knowledge areas, processes, and outputs of project execu-
tion. The most important output is work results, or delivery of products. The
ResNet 1996 project involved installing over 2,000 PCs in seven different
offices, creating more customized software, training the reservation sales
agents, and measuring the benefits of the system. This chapter will focus on
ResNet’s execution phase activities, such as providing project leadership, devel-
oping the core team, verifying project scope, assuring quality, disseminating
information to stakeholders, procuring necessary resources, and training users
to develop code.

Table 14-1: Executing Processes and Outputs

KNOWLEDGE AREA PROCESS OUTPUTS

Integration Project Plan Execution Work Results
Change Requests
Quality Quality Assurance Quality Improvement
Human Resources Team Development Performance Improvements
Inputs to Performance
Appraisals
Communications Information Distribution Project Records
Project Reports
Project Presentations
Procurement Solicitation Proposals
Source Selection Contracts
Contract Administration Correspondence
Contract Changes
Payment Requests
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EXECUTING ■ 403

PROVIDING PROJECT LEADERSHIP

Peeter Kivestu was an experienced project manager, having led several project
teams before becoming ResNet project manager. When asked what factors con-
tributed to his success as a project manager, he mentioned the importance of
having clear goals, making the work fun, and sticking to schedules.
Peeter’s belief is that it is human nature to want to achieve goals. To achieve
goals, however, people must have a very clear understanding of what those
goals are. Peeter cares deeply about the business, and he wanted to show
everyone involved in the ResNet project that a large information technology
project can be successful. Anyone who has worked with Peeter knows that he
likes to talk things out and get people to think all of the time. Peeter is known
for having very long meetings to hammer out project goals. He always wants
everything to be crystal clear to every member of the team before ending a
meeting. He challenges people to use every spare moment to think through
ideas—while driving, while waiting in line, and even while taking a shower.
His ResNet team would tease him about needing a whiteboard in their showers
to write down ideas.
Peeter also believes that work should be fun. He knows most information tech-
nology professionals are introverted by nature, and this quality often interferes
with their ability to communicate with their users. He wanted his technical staff
to get to know the reservation agents and other people involved in ResNet. Peeter
also believes that strong beginnings are important. Many project managers under-
estimate the amount of confusion at the start of projects. To help put people at
ease and enhance communications, Peeter made sure that various aspects of
ResNet got off to good starts. For example, the ResNet team made special plans for
each project kickoff meeting and office installation. They planned special themes
for each event to make them fun and memorable, as described in the What Went
Right section. Whenever possible, they used humor to enhance the project. As
mentioned in the opening case, project kickoff meetings were huge and entertain-
ing productions; everyone looked forward to them.

What Went Right?

To make ResNet fun, Peeter’s team created videotapes and themes for important project
activities. For example, NWA prepared a videotape of the ResNet beta test agents sharing
their responses to the new system and another tape of the final project recognition dinner.
The ResNet team also planned and executed exciting kickoff meetings. They worked with
each ResNet office to develop and follow a theme for each office implementation. For exam-
ple, the Tampa office used a “Flintstones to the Future” theme for ResNet. Months before
the Tampa office would receive their ResNet PCs, the ResNet team put up posters about the
new system, alerting the office staff to get ready for the future. At the first meeting to coor-
dinate the Tampa installation, people dressed to look like Star Trek characters—they wore sil-
ver collars and put the ResNet logo on their shirts. Peeter, who became a Vice President at
14 Chapter A4148 23218 6/8/01 6:26 PM Page 404

404 ■ C H A P T E R 1 4

NWA in 1999, still proudly displays his silver ResNet logo in his office. The Minneapolis
office used a “Broadway Shows” theme, and the ResNet team and sales agents danced in a
chorus line. Each office looked forward to their implementation and had fun creating their
own theme.

A project management consultant once told Peeter of the chaos caused by

missing dates on projects. Peeter decided to set milestone dates with his team
and stick to those dates. Everyone liked Peeter’s charismatic and fun approach
to work, but they also knew that he did not budge on dates unless absolutely
necessary. This strict adherence to schedules helped people focus on accom-
plishing their work on time.

DEVELOPING THE CORE TEAM

Peeter knew that he had to work well with people on his management team
and that they, in turn, had to work well with other project stakeholders. Peeter
had several strategy meetings with Arvid Lee, the head of the Information
Services people on the ResNet project, and Kathy Christenson, the head of
software application development for the ResNet interface. They worked
together to determine how to motivate different people involved in the project.
Kathy came from the marketing area, and she knew that the sales agents and
other people in marketing were very excited by themes, office decorations,
gifts, contests, and so on. Arvid knew that he and most other members of the
Information Services Department would think those types of things were silly,
but he fully supported the approach. Arvid motivated the information services
staff by providing them with challenging work and keeping them informed of
project progress.
Peeter was a hands-on manager and he felt that every single person
involved in ResNet was important. He gave a lot of responsibility to Arvid and
Kathy, keeping in constant communication with them and relying heavily on
their judgments. Peeter kept their project sponsor, Fay Beauchine, well
informed of the project’s progress. He went out of his way to talk to lower-level
people involved in ResNet. He wanted to know what everyone was doing and
how he or she thought things were going. Peeter had an excellent memory and
made a point of having focused discussions with all ResNet stakeholders.
Peeter provided resources to people as they were needed. In addition to hir-
ing professional actors to help his team run better meetings, he sent people to
technical training classes. He shared his experience and advice with others, and
what’s more important, he worked with them to develop critical thinking skills.
Peeter knew that a key part of his job was supporting and developing his staff.
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EXECUTING ■ 405

VERIFYING PROJECT SCOPE

As mentioned in Chapter 13, Planning, most of the project plans for ResNet
were done at a WBS Level 3 or 4. Peeter believed in focusing first on the broad
goals of the project and then narrowing down to the details. He held long
meetings to help brainstorm and develop important ideas and issues regarding
the scope of various aspects of ResNet. Once everyone shared their thoughts, the
team worked together to nail down exactly what could be done to meet the over-
all project goals.
Peeter believed that many information technology projects fail to focus on the
necessary requirements and become sidetracked by scope creep. He was deter-
mined to have ResNet meet requirements on time and on budget. He met with
project members as scope changes were proposed, and together they worked to
do what was best for the project. Peeter always stressed the importance of focus-
ing on business needs and not succumbing to unnecessary requests.
Peeter and Fay planned for incrementally developing the ResNet interface.
Even though the system worked after the beta project, they knew it could still
be improved. They budgeted for additional people to continue developing
enhancements to ResNet after it was implemented to more and more sales
agents. For example, ResNet included a feature for sales agents to electronically
send in suggestions for improving the system. Handling these requests for
enhancements will be discussed further in Chapter 15, Controlling.

ASSURING QUALITY
During planning for the ResNet beta project, Peeter decided to have people
with industrial engineering experience analyze the reservations process and
develop techniques to measure the impact of ResNet. This decision proved to
be very wise. The industrial engineers used a systematic approach to document
the reservations process workflow. For example, in the PARS system, agents
often had to go back and forth between several screens and jot down informa-
tion on a piece of paper to help a caller. The industrial engineers documented
over thirty different scenarios for sales calls. This information helped the soft-
ware developers design the user interface and flow between screens for ResNet.
Figure 14-1 shows Quadrant 4 of the ResNet screen. Notice the many different
cells—16 in this example. The industrial engineers worked with the sales agents to
design this quadrant and determine the optimum cell positions based on the work-
flow of making reservations. Each cell corresponded to a key on a special ResNet
keypad. After an agent pressed one of the keys on the keypad for a specific cell, the
information in Quadrant 4 would change to show related functions. Spending time
on the human engineering aspects of the system helped the team design a high-
quality application that streamlined the reservation process.
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406 ■ C H A P T E R 1 4

Figure 14-1. ResNet Quadrant 4

Because of Northwest Airlines’ poor financial status, Peeter knew that any
big project would be scrutinized. He asked the industrial engineers to develop
benefits measurement techniques to track performance in increasing direct
sales and decreasing call handle time, two of the main business objectives of
ResNet. The industrial engineers physically observed what happened when
ResNet PCs were installed during the beta project and office installations. They
graphed the sales agents’ progress on increasing direct sales and reducing call
handle times. The industrial engineers were the eyes and ears that provided
objective feedback on the business value of the system.
Peeter’s team also assured quality by following internal procedures for soft-
ware development and hardware installation. For example, the software devel-
opers created and followed design guidelines for the system. One of the design
standards was that users would never be more than two keystrokes away from
the next function. They used best practice for determining colors, fonts, and so
on. They also developed alternate features to accommodate users who were
color-blind. The Information Services staff followed internal testing procedures
after installation of new PCs and network hardware. Many experienced profes-
sionals were working on ResNet, and they constantly tested their work to
make sure it was done well.
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EXECUTING ■ 407

DISSEMINATING INFORMATION
Communication was a key factor in ResNet’s success. As Kathy Christenson put
it, “Fear of the unknown is detrimental to a project.” The ResNet team made a
point of disseminating project information often and in different ways. Just as
people respond to different motivating factors, they also respond to different
forms of communication. The ResNet team used meetings, posters, electronic
communications, and written reports to disseminate project information.
Figure 14-2 shows one report format that many stakeholders found useful
and informative. The report uses a visual representation to show office imple-
mentation progress for the training, communications, and network rooms, and
for installation of ResNet PCs for sales agents and office managers. Items
shaded in gray (they were green in the actual report) indicated areas where the
ResNet PCs or other related hardware were installed. Most offices, like the
Detroit Reservations Center highlighted in Figure 14-2, had separate rooms for
training, communications hardware, network hardware, and managers’ offices
or specialty desks. The reservation sales agents sat in pods or circular seating
areas with six PCs per pod. In addition to coloring the completed areas for each
office, this one-page report included at the top a quick count of the number of
PCs installed to date.

Progress indicated by shading

Implementation: February 26 to November 15, 1996
240 of 543 PCs Installed to Date
Other offices
Training Training Training
Room 2 Room 3 Room 1

Comm.
Room Network
Reservation Agents, 6 PCs/pod

Figure 14-2. Detroit Reservations Center Progress Report

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408 ■ C H A P T E R 1 4

The ResNet team set up change management teams at each office to keep
each geographic area informed of specific activities for their offices. For exam-
ple, the change management team coordinated the delivery and installation of
all hardware and scheduled ResNet training for all office personnel. Keeping
people well informed helped to ease their fears of using a new system. The
training program included brief one-on-one sessions with each reservation
sales agent in addition to formal classroom training. Because many sales agents
were wary about moving to a new computer system, ResNet management
decided it was important to address the unique questions and concerns of each
individual sales agent. They knew that many agents would be afraid to ask
questions in a large training session. The ResNet team also had a strong infor-
mal communications network. At all stages of the ResNet project, Peeter and
his team tried to keep everyone informed about the ResNet activities that mat-
tered to them most.

PROCURING NECESSARY RESOURCES

ResNet involved the procurement of many off-the-shelf hardware, software,
and networking products. Several vendors provided personal computers,
servers, printers, networking hardware, operating systems, communications
software, reservations system software, and training.
Figure 14-3 shows a schematic of the ResNet network architecture. Note the
many different hardware platforms, communications protocols, and operating
systems involved. The main reservation system and database to which ResNet
interfaces is Worldspan, which runs on mainframe computers in Atlanta. The
Worldspan computer reservation system supplies over 20,000 customers in more
than 60 countries with availability, fare, and rate information. In 2001, Worldspan
was the market leader in e-commerce for the travel industry, processing more
than 50 percent of all online travel agency bookings.1 Northwest Airlines had its
own IBM mainframes running IBM’s Multiple Virtual Storage (MVS) and Virtual
Machine (VM) operating systems. ResNet also used information from Unisys
mainframe computers and several distributed servers using Unix, OS/2, and
Windows NT operating systems. NWA’s local area network (LAN) included other
servers and systems such as Unix, Novell, and Lucent. The ResNet PCs were
Pentium 75 MHz machines, state-of-the-art at the time of purchase.

1Worldspan’s Web site, www.worldspan.com (February 14, 2001).

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EXECUTING ■ 409

Atlanta
Manager
Training
Printers Admin
Supervisor
Worldspan Airline Control
Protocol (ALC) Agent

ALC Gateway Unix

Other
External
Systems

TCP/IP Novell
UNISYS

Ethernet LAN
Other servers
SNA Gateway and systems
CIP

IBM MVS & VM Lucent

-IMS Distributed Servers
(WorldPerks)
-CICS (PRA)
NT Unix
-ACCESSs OS/2
-MONITOR Unix
-TSO Interactive
-OV Voice Response
-RPMS DB2 data
3270
SNA

Figure 14-3. ResNet Data Network Overview Schematic

Using a variety of hardware and operating systems is typical on large informa-

tion technology projects. The main challenge for the Information Services depart-
ment was getting all of the different computers to communicate. The Information
Services staff procured and installed the necessary hardware and wrote the system
software for the ResNet infrastructure. As shown in Figure 14-3, Worldspan uses
IBM’s Transaction Processing Facility (TPF), a high-volume transaction-processing
platform used by many airlines. Other communications technologies included
Systems Network Architecture (SNA), a set of network protocols developed by
IBM, and Transmission Control Protocol/Internet Protocol (TCP/IP). the commu-
nications protocol used to connect hosts on the Internet. The ResNet 1996 project
was completed before the rapid expansion of Internet applications. ResNet+, the
follow-on project to ResNet, uses newer technologies and is described briefly in
Chapter 16, Closing.
Arvid Lee was instrumental in working with various vendors to procure hard-
ware, software, and technical training. He used his twenty-five years of experi-
ence in information technology to the company’s advantage. He researched the
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410 ■ C H A P T E R 1 4

best information technology products and vendors and consulted with other
information services professionals to make purchasing decisions. Much of the
hardware and software needed was available off-the-shelf, so the ResNet team
was not pushing the state of the art. Arvid also had a good relationship with peo-
ple at Qantas, the vendor that provided the QIK-ACCESS software as well as the
training to use it for developing the graphical user interface for ResNet.

TRAINING USERS TO DEVELOP CODE

A critical decision concerning the ResNet software was who would develop the
graphical user interface the sales agents would use. The ResNet team decided
that QIK-ACCESS, an off-the-shelf software package from Qantas, was the best
tool available. Software development for the ResNet user interface involved
using the QIK-ACCESS scripting language to develop code that would generate
the user interface to meet NWA’s unique needs for ResNet. Qantas recom-
mended that the users—the reservation sales agents—be involved in develop-
ing the software and writing the code. Qantas had experience training
non-information technology people to customize their software, so they pro-
vided the training as well as the QIK-ACCESS software.
Having users—sales agents—actively participate in software development was
a new concept for NWA. Arvid researched the advantages and disadvantages of
having users do the coding for the user interface. (Information Services staff did
all of the systems programming, which is much more technical.) The sales agents
understood the reservation process, so understanding user requirements would
be less of an issue if they wrote most of the code for the ResNet user interface.
On the other hand, coding would go faster if experienced programmers did most
of the actual programming. In the mid-1990s, the majority of sales agents had
college degrees, but none had coding experience. Training the agents to use the
scripting language would take time, and, once trained, the agents might not
work as quickly as someone with years of programming experience.
Arvid learned that another major airline was having a difficult time imple-
menting their new reservation system, which also used Qantas’ software. Their
Information Services department was doing all of the coding. Arvid consulted
with Kathy Christenson, and they decided that having users do as much of the
coding as they could for the ResNet interface made the most sense. However,
they also decided to have Information Services staff assist them.
Peeter agreed to this combined approach. He felt it was good to take a more
conservative, business-oriented approach and have the users develop the code
that was absolutely necessary for them to do their jobs. Information Services
Department members might generate code more quickly, but they could easily
have trouble interpreting what users needed. Peeter interviewed several sales
agents who volunteered to help develop the software. There were over 4,000
sales agents, so Peeter had a large pool of people from which to choose. The
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EXECUTING ■ 411

sales agents were union employees, so Peeter had to work with union manage-
ment to be fair to all union workers. Peeter budgeted for six sales agents and
three Information Services people to write the ResNet interface for the beta
project. After that, Peeter budgeted for even more people to help test and
enhance the software, as described in Chapter 13, Planning.
As soon as funds were approved for the ResNet beta project, the six sales
agents and three Information Services application developers flew to Texas for
a special training course provided by Qantas. Table 14-2 provides a sample of
the scripting code they used to write a subroutine that compares agent statistics
between reservation offices. As you can see, it would take time for anyone to
become proficient in using this text-based, procedural programming language.
The team of sales agents and Information Services staff worked throughout the
beta test and the ResNet 1995 and ResNet 1996 projects to develop the graphi-
cal user interface for ResNet.

Table 14-2. Sample Scripting Language for ResNet User Interface

;****************************************************************************
;* Subroutine: B_A_OFCCOMPARE_SUB
;* Called By:
AR_MTD_DISP_SUB,AR_MTD_DISP_GLD_SUB,AR_MTD_DISP_INL_SUB,AR_MTD_DISP
_OTH_SUB
;* Parameters: # 1 = column to display data
;* # 2 = d.i. for city code
;* # 3 = d.i. for dt
;* # 4 = d.i. for dt2
;* # 5 = d.i. for netrev
;* # 6 = d.i. for cph
;* # 7 = d.i. for ctt
;* # 8 = d.i. for acw
;* # 9 = d.i. for occ
;* # 10 = d.i. for sit
;* Function: Builds office comparison of agent statistics
;* Date/Init: 17NOV97 MMR
;* Updates:
;* SPLIT COMMENTS 01SEP98 TLF Renamed applicable objects for application split
;****************************************************************************
set ar_temp_col"
display #2 ns_cur_window '5' #1 ns_bright_yellow ns_blue
display #3 ns_cur_window '6' #1 ns_bright_white ns_blue
display #4 ns_cur_window '7' #1 ns_bright_white ns_blue
calculate ar_temp_col = #1 - '2'
display #5 ns_cur_window '8' ar_temp_col ns_bright_white ns_blue
calculate ar_temp_col = #1 - '1'
display #6 ns_cur_window '9' ar_temp_col ns_bright_white ns_blue
display #7 ns_cur_window '10' #1 ns_bright_white ns_blue
display #8 ns_cur_window '11' #1 ns_bright_white ns_blue
calculate ar_temp_col = #1 + '1'
display #9 ns_cur_window '12' ar_temp_col ns_bright_white ns_blue
;*** office comparison for sit displayed if DRS gmmores3 DISP COL SIT: IS NOT 'N'
if ar_disp_col_sit <> 'N'
display #10 ns_cur_window '13' #1 ns_bright_white ns_blue
end_if
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412 ■ C H A P T E R 1 4

Based on the workflow of the reservations process, the beta software devel-
opers decided to have four quadrants on the ResNet screen at one time. The
Quadrant 4 section of the screen, as shown in Figure 14-1, took the most time
to develop. The other quadrants were similar to the old reservation system, but
the agents could now see important data all on one screen. The system
included prompts to help sales agents pronounce unfamiliar words or read pre-
pared promotion scripts. For example, after developing a partnership with
KLM, sales agents often handled flights to Japanese cities whose names they
did not know how to pronounce. ResNet screens included prompts that
explained how to pronounce these cities phonetically, such as “TOK ee oh” for
Tokyo. Agents were also prompted to ask for the direct ticket sale by saying,
“What type of credit card would you like for me to hold that with?”
What is most important, the majority of sales agents, over 4,000 of them,
liked the new system. ResNet sales agents made the following comments:2
■ “This computer is just wonderful. The colors are great. It’s easy to look at.
It’s a lot of fun.”
■ “It makes the customer feel confident that you know what you’re doing.”
■ “You have time to think about more important things like nonstop service
to certain cities that we have that other airlines don’t.”
■ “Not going home at night with headaches. That’s my favorite part.”
■ “It’s fun. It’s new and it’s different. You look at the big picture and what it
can save Northwest and the revenue we can bring in. The bottom line is
it’s a great system—it’s a moneymaker. It’s quick, it’s fun, and it’s easy.
What more can you want?”

CASE-WRAP UP
Key deliverables and dates were well defined for ResNet. Peeter,
Arvid, Kathy, and the rest of the ResNet team worked hard to ensure
that work was delivered on time, close to budget, according to speci-
fications, and with high quality. The PCs and other hardware were
delivered according to plan, and the sales agents were satisfied with
the new software. The ResNet team successfully installed over 3,000
new PCs, developed several software programs, and provided train-
ing to all the reservations sales agents.

2JUNTUNEN VIDEO, Inc. Northwest Airlines’ ResNet videotape, Minneapolis, MN, April 4, 1995.
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EXECUTING ■ 413

ResNet met its business objectives by increasing the number of

direct sales and reducing the average time sales agents took to han-
dle calls. In 1996 alone, ResNet generated over $15 million in sav-
ings, and the sales agents, all union employees, were very happy
with the new system. The ResNet team completed work as planned,
celebrated each small achievement, and proved that a large informa-
tion technology project could be successful and improve the com-
pany’s bottom line.

C H A P T E R S U M M A R Y
Project execution involves taking the actions necessary to ensure that activities
in the project plan are completed. The results of the project are produced in
this phase, and it is usually when the most resources are needed.
The main knowledge areas involved in execution are integration, scope,
quality, human resources, communications, and procurement. Outputs include
work results, change requests, quality improvement, and various procurement
items such as contracts.
Factors that contributed to successful project execution on ResNet were hav-
ing clear goals, making the work fun, and sticking to schedules.
Leadership, team development, scope verification, and quality assurance
also contributed to the successful execution of the ResNet projects. Peeter,
Arvid, and Kathy worked together to motivate the ResNet project team. Peeter
and Fay managed potential scope creep by budgeting for people to develop
enhancements to ResNet throughout the project, and office managers set prior-
ities for what enhancements were most important. Industrial engineers helped
ensure quality by providing detailed analyses of the reservations process and
developing benefits measurement techniques.
Other factors that contributed to project success included information dis-
semination, procurement, and strong user involvement. Because people
respond well to different forms of communication, the project team used vari-
ous forms of communications to meet stakeholder needs. ResNet involved
procuring resources from several different hardware and software vendors, and
staff at NWA used their past experiences to select the best vendors, create good
contracts, and develop good vendor relationships. Strong user involvement,
especially in software development of the ResNet user interface, was a critical
success factor for the project.
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414 ■ C H A P T E R 1 4

DISCUSSION QUESTIONS
1. What are the main knowledge areas, processes, and outputs of project
execution?
2. Discuss how executing processes were done on ResNet and what the out-
puts of each process were. What were some of the unique ways that
Peeter and his team handled project execution?
3. Describe Peeter’s leadership style. What made him an effective project
leader? Would he be an effective project leader in a different organiza-
tion? Why or why not? What role did organizational culture play in his
leadership style?
4. What were the three main success factors for ResNet, according to Peeter?
Can these factors be applied to all large information technology projects?
Explain your answer.
5. What do you think about having users go to training classes to learn to
write code to develop their own systems? Do you think this could or
should be done on more information technology projects?
6. How much impact do you think making the project fun had on project
success? Do you think that most large information technology projects
could copy this approach?

EXERCISES
1. Review the ResNet Data Network Overview Schematic shown in Figure 14-3.
Research the various technologies listed: Worldspan, Airline Control Protocol
(ALC), SNA, IBM MVS & VM, WorldPerks, and so on. Pick three of these
technologies and write a brief paper describing each. Include the advantages
and disadvantages of using each technology.
2. Review research on project success factors, such as studies done by the
Standish Group (www.standishgroup.com). Write a paper summarizing
the research results, then compare those success factors with the three
success factors mentioned by Peeter Kivestu.
3. Find other examples of projects that took a fun approach to performing
the work. Analyze these projects: Were they successful? Why or why not?
Write a one- to two-page paper summarizing what you learned by exam-
ining examples of other projects.
4. Review the sample progress report in Figure 14-2. Why do you think
stakeholders liked this format so much? Find an example of another proj-
ect status report. Try to make the report more visual and clear to users,
like this example.
5. Read one of the books mentioned in the Suggested Readings and write a
summary of it.
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EXECUTING ■ 415

MINICASE
Peeter was an outstanding leader. He was particularly good at communicating
project information and motivating the ResNet team.
Part 1: Pretend that you were Peeter at the ResNet 1996 Kickoff/Strategy meet-
ing described in the opening case. Create a short presentation and script that you
would use to start the meeting. Limit your presentation to five to ten minutes.
Part 2: Peeter and the ResNet team did their best to make the ResNet proj-
ects fun. Review some of the themes described in the What Went Right? section
of this chapter. Then develop a theme for your class or workgroup to help
make the work more fun. Create a poster or other visual aid to help promote
your theme.

SUGGESTED READINGS
Peeter, Arvid, and Kathy mentioned several authors that influenced their
leadership styles. Following are a few of the books they found helpful:
1. Kanter, Rosabeth Moss. When Giants Learn to Dance. New York: Touchstone
Books, 1990.
In this book about new management strategies and techniques,
Dr. Kanter shows how the truly innovative companies are leading the
way. She describes how corporate “giants” are actually joining this
post-entrepreneurial revolution.
2. Miller, John G. Personal Accountability. Denver, CO: Denver Press, 1998.
The first part of this book explains the Question Behind the Question, a
tool to help eliminate blame, victim thinking, and procrastination from
people’s lives. The second part explores the Pillar Principles, which include
ideas such as courage, excellence, ownership, trust, and integrity.
3. Oakley, Ed and Doug Krug. Enlightened Leadership. New York:
Fireside, 1994.
Being able to change to keep pace with a rapidly changing world is key
to business success today. Managers and leaders at all levels can use
Oakley and Krug’s proven techniques, including planning, communica-
tion, and motivational tools, to support their employees in effecting the
positive changes that will make the difference in achieving their organi-
zations’ bottom-line goals.
4. Peters, Tom. Thriving on Chaos. New York: Harper Collins, 1991. (Also, see
other books by the same author.)
Peters, the coauthor of In Search of Excellence and A Passion for
Excellence, provides readers with a book that describes fifty specific
courses of action essential to corporate survival in today’s turbulent
world. Tom Peters also wrote a book called The Project 50, published in
1999, emphasizing the importance of good project management.
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416 ■ C H A P T E R 1 4

5. Roberts, Wess. Leadership Secrets of Attila the Hun. New York: Warner
Books, 1991.
Wess Roberts draws from the imaginary thoughts of one of history’s
most effective and least-beloved leaders—Atilla the Hun—to discover
leadership principles that can apply to modern situations. This book
discusses principles for successful morale building, decision making,
delegating, and negotiating, and gives advice on overcoming setbacks
and achieving goals.
15 Chapter A4148 23218 6/9/01 7:17 AM Page 417

15Controlling
Objectives
After reading this chapter, you will be able to:
1. Understand the importance of good project control to keeping things on track
2. Discuss the controlling processes and outputs and how they were used on ResNet
3. Describe the tools and techniques used for project control on ResNet
4. Discuss challenges the ResNet team faced in controlling the project and decisions
they made to manage these challenges
5. Describe the use of change management on this project
6. Relate some of the controlling events in ResNet with concepts described in
previous chapters

P eeter learned that managing change was 50 percent of a project

manager’s job. He also learned that every stakeholder was dif-
ferent. His team had to develop strategies for dealing with the
unique personalities involved in ResNet. The executive management
team, in particular, needed special consideration, as did the reserva-
tion sales agents. Peeter’s team knew that members of the executive
team liked to make decisions. They also knew that typical status
reports would bore this group. Therefore, at the 1996 ResNet review
meetings, instead of reporting on how things were going, each pre-
senter focused on key issues and decisions needed by the executive
team. Would this strategy help keep ResNet on track and get the
executive management team to make important decisions quickly?
The unionized reservation sales agents were also crucial stakehold-
ers in ResNet’s success. How should the ResNet team manage the
problems inherent in developing and delivering a new information
system to these sales agents? How could they overcome potential
resistance to change?
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418 ■ C H A P T E R 1 5

WHAT IS INVOLVED IN CONTROLLING PROJECTS?

Controlling is the process of measuring progress towards project objectives,
monitoring deviation from the plan, and taking corrective action to match
progress with the plan. Controlling cuts across all other phases of the project life
cycle. It also involves seven of the nine project management knowledge areas:
■ Project integration requires integrated change control. Outputs include
updates to the project plan, corrective actions, and lessons learned.
■ Project scope management includes scope verification and change control.
A key output is scope changes. (Note that some aspects of scope verifica-
tion for ResNet were described in Chapter 14, Executing.)
■ Project time management includes schedule control. The output of this
process is schedule updates.
■ Project cost management involves cost control. Outputs include revised
cost estimates, budget updates, and estimates at completion.
■ Project quality management includes quality control. Outputs are quality
improvements, acceptance decisions, rework, completed checklists, and
process adjustments.
■ Project communications management includes performance reporting,
and outputs of this process are performance reports and change requests.
■ Project risk management involves risk monitoring and control. Outputs of
the risk monitoring and control process include work-around plans, correc-
tive actions, project change requests, and updates to the risk response plan.

Table 15-1 lists the knowledge areas, processes, and outputs that are gener-
ally part of project controlling. This chapter will focus on the ResNet project’s
key controlling activities such as schedule control, scope change control, quality
control, performance and status reporting, and employee change management.
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CONTROLLING ■ 419

Table 15-1: Controlling Processes and Outputs

KNOWLEDGE AREA PROCESS OUTPUTS

Integration Integrated Change Control Project Plan Updates
Corrective Actions
Lessons Learned
Scope Scope Verification Formal Acceptance
Scope Change Control Scope Changes
Corrective Actions
Lessons Learned
Adjusted Baseline
Time Schedule Control Schedule Updates
Corrective Actions
Lessons Learned
Cost Cost Control Revised Cost Estimates
Budget Updates
Corrective Actions
Estimate At Completion
Project Closeout
Lessons Learned
Quality Quality Control Quality Improvement
Acceptance Decisions
Rework
Completed Checklists
Process Adjustments
Communications Performance Reporting Performance Reports
Change Requests
Risk Risk Monitoring and Control Work-around Plans
Corrective Actions
Project Change Requests
Updates to the Risk Response Plan
Risk database
Updates to Risk
Identification Checklists

SCHEDULE CONTROL
Recall that Peeter’s main strategy for avoiding schedule-related problems and
conflicts was to focus on meeting schedule dates. Peeter worked with his proj-
ect team to determine important milestones and set realistic dates for their
completion. Peeter also focused on meeting business needs. Problems with
WorldPerks and the Chisholm office caused the start of the Detroit office instal-
lations to slip by about three weeks, but it was in the best interest of the busi-
ness to allow that slippage to occur.
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420 ■ C H A P T E R 1 5

Peeter admitted that they sacrificed some functionality of the ResNet system
to meet deadlines. Recall that Peeter and Fay budgeted for a certain number of
people to work on ResNet software enhancements after writing the beta soft-
ware. These people developed as many enhancements as they could, given
their schedule constraints. Peeter felt that making this trade-off was in the best
interests of the overall project and business. Overall, the project was completed
on time and just slightly over budget.
Recall that part of a project manager’s job is making trade-offs related to the
triple constraint—scope, time, and cost. Peeter often focused on meeting time
constraints to avoid the problems that missed deadlines would have on the rest
of the project. This strategy meant that he and his team worked long hours
during certain parts of the project.
Arvid recalled several times when he did not think his team could meet a dead-
line, and Peeter would say, “Failure is not an option.” Because the ResNet team
were all salaried employees, they did not receive paid overtime. They worked extra
hours as needed to help an important and challenging project succeed.

What Went Right?

Peeter had gone through project management training when he worked in Canada. One
piece of advice he remembered was to focus on meeting the project schedule goals. Date
changes tend to cause chaos throughout a project. Therefore, his goal for ResNet was to
establish key dates and vary the scope as needed to stay on schedule. To emphasize the
importance of schedule, the ResNet team made the theme for the 1996 ResNet kickoff
meeting “What About Wendy?” Wendy was the office manager of the last call center
scheduled to get ResNet PCs. The theme stressed the importance of meeting schedule dates
so that Wendy’s group would not be disappointed. The ResNet team displayed a Gantt chart
and explained that missing any deadlines would hurt Wendy. This personal touch helped
everyone focus on meeting deadlines.

Throughout the ResNet projects, Peeter stayed firm on dates, and all stake-
holders knew that key dates were real and not subject to change unless there
were insurmountable obstacles. Peeter used a football analogy to explain his
commitment to keeping the schedule: If a team keeps getting first downs, it
will score touchdowns. If his ResNet team focused on meeting key incremental
dates, they would finish the project successfully. This strategy worked well on
ResNet most of the time.
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CONTROLLING ■ 421

What Went Wrong?

The WorldPerks application development and office rollout in Chisholm, Minnesota, pro-
vided one of the toughest challenges for the ResNet team. They had underestimated how
long it would take to develop the WorldPerks software, plus they ran into technical and per-
sonnel problems. The WorldPerks software had to interface with the IBM 3270 system, and
the ResNet team and vendors had to develop special communications software for this
interface. It was much more complicated than they anticipated. Also, the state of Minnesota
funded the Chisholm office to develop more jobs in the Minnesota Iron Range. All of the
office employees were new hires, so they did not understand Northwest Airlines’ reserva-
tions systems work flow. Many of the new employees had little experience with computers,
so the ResNet team had to send in people to work with them and help coordinate technical
and training problems with the main office in Minneapolis. The project incurred additional
costs, and the extra work for this office delayed the start of the Detroit implementation by
about three weeks.

Peeter and Fay wanted to change the sequencing of office installations after
the problems that occurred in Chisholm. The Detroit office installation also
used the WorldPerks application and could not be completed until the
Chisholm office was completed. (Note the finish-to-finish relationship between
Office 2 and Office 3 on the Gantt chart in Figure 13-3.) Peeter and Fay did not
want the Detroit installation to be late, as this would affect the entire project
schedule. They also did not want people waiting around in Detroit because
their start had been delayed. Arvid and other ResNet team members banded
together to successfully convince Peeter and Fay not to change the sequencing
of office installations because it would disrupt many of their plans and cause
even more problems. With a lot of extra hours and some extra money for addi-
tional temporary staff, the Chisholm and Detroit offices were both completed
on time.

SCOPE CHANGE CONTROL

All stakeholders were involved in determining and controlling the scope of
ResNet. Sales agents and their managers defined the basic requirements for the
software and made suggestions on enhancements. Senior management deter-
mined the overall scope, budget, and schedule goals. The 1996 kickoff meeting
emphasized the purpose of the ResNet projects and their scopes. Table 15-2
presents some of the statements about purpose and scope that were used at the
kickoff meeting.
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422 ■ C H A P T E R 1 5

Table 15-2: Kickoff Meeting Statements About ResNet Purpose and Scope

PROJECT PURPOSE PROJECT SCOPE

Provide ResNet presentation screens for all 3,000 PCs in 8 reservations offices and
reservations personnel Iron Range Reservations Center (IRRC)
(Note: These numbers include the
completion of the 1995 ResNet project.)
Connect ResNet to an information pipeline Four applications:
and to other distributed systems at • Sales
Northwest and alliance partners • Specialty Sales
• Support Desks
• Integrated WorldPerks
Design for rapid evolution to meet Preproduction prototypes for intelligent
changing business needs call processing and keyword search

Peeter and his team worked hard to get buy-in from all stakeholders of
ResNet. Peeter used the following words to describe the purpose of the 1996
ResNet kickoff meeting: “to launch the ResNet implementation and develop a
shared responsibility for a successful outcome.” By creating a solid sense of
unity among all project stakeholders, everyone shared in the responsibility and
success of the project.
Peeter held regular meetings with team members to handle potential scope
changes. They accepted some small changes in scope, but only if those changes
made business sense and would not be detrimental to the whole project. The
number of PCs and software applications never changed from the original plan,
but the sales agents requested additional capabilities from the ResNet software.
As mentioned in Chapter 14, Executing, people were assigned to ResNet to
develop enhancements to the software even as it was being presented to the
sales agents. The ResNet screen included the capability to send enhancement
requests to the software developers. Kathy Christenson was surprised and yet
excited about the number of requests they received—over 11,000. She devel-
oped a change control process with the managers who sponsored the four main
software applications—sales, specialty sales, support desks, and WorldPerks.
Each of these managers had to prioritize the software enhancement requests
and decided as a group what changes to approve. The developers of the system
enhancements then implemented as many items as they could, in priority
order, given the time they had. About 38 percent of the 11,000 suggestions
were implemented.
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CONTROLLING ■ 423

QUALITY CONTROL
Because the software development team knew the reservation process and
what shortcuts agents might take while using the new system, the team was
able to develop user-friendly, foolproof software. For example, some sales
agents were concerned about meeting their required performance statistics for
the average length of calls and the percentage of direct sales. Some agents
dreaded customers who wanted to make rental car reservations because of the
increased call time. Therefore, the ResNet software developers streamlined the
rental car reservation process. They added scripted prompts to help the sales
agents ask about car rentals and make them more comfortable when trying to
close sales directly by asking for the customer’s credit card information.
The industrial engineers supporting ResNet took several important actions to
control quality. In addition to analyzing the reservation process in detail and
making suggestions on improvements, they helped select a random sample of
sales agents to properly test the impact of ResNet. They also developed several
charts for measuring the business benefits of ResNet.
Arvid Lee mentioned that he had never seen as much statistical analysis
done on a project as was done on ResNet. As part of the beta project, the
industrial engineers used statistical techniques to select a sample of reservation
sales agents to test ResNet. At the time, there were over 4,000 reservation sales
agents. They wanted to make sure their testing was not biased by factors such
as gender, age, location, shift, or efficiency of the agents. They ensured that the
agents involved in testing the benefits of the new system were a random sam-
ple of the total group of all NWA reservation sales agents. The final project
audit mentioned that biasing factors, such as weather, new hires, and the
changing sales environment, were isolated using multiple regression analysis to
determine the true impact of ResNet.
Many people ignore or discount statistical analysis and quality control
reports, but the people supporting ResNet developed several particularly useful
reports for measuring the quality and progress of ResNet. Figure 15-1 shows a
chart used to track the learning curves for new hires using ResNet versus
NWA’s native reservations system on TELEX terminals. The shapes of the
curves are similar, but the ResNet agents started and ended at a shorter call
handle time. This shorter call handle time was believed to be due to the friend-
lier design of the new interface provided by ResNet.
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424 ■ C H A P T E R 1 5

500

450
Call Handle Time (Seconds)
400

350

300

TELEX
250
RESNET

200
0 2 4 6 8 10 12 14 16
Weeks Since Training

Figure 15-1. New Hire Call Handle Time Learning Curves

The industrial engineers also created charts plotting the predicted versus
actual number of direct ticket sales per 100 calls, as shown in Figure 15-2. The
forecasting model they developed proved to be 87 percent accurate in forecast-
ing performance on the TELEX system. Because the high accuracy percentage
showed that the engineers had very good forecasting capabilities, senior man-
agement believed their estimates for the direct ticket sales projections for
ResNet. Increasing the number of direct ticket sales would provide great finan-
cial savings to NWA.
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CONTROLLING ■ 425

16
14
12
Direct Tickets per 100 Calls
10 Actual
8
Predicted
6
4
2
0
19-Jan-95

2-Feb-95

16-Feb-95

2-Mar-95

16-Mar-95

30-Mar-95

13-Apr-95

27-Apr-95

11-May-95

25-May-95
Week

Figure 15-2. Direct Tickets per 100 Calls — Actual vs. Predicted

Having forecasts and tracking their progress against the forecasts helped the
ResNet team and sales agents using the new system focus on the project’s busi-
ness goals. The immediate feedback available each week from these charts
prompted the team to push forward. Reservation sales agents actually looked
forward to seeing these quality control reports.

PERFORMANCE AND STATUS REPORTING

In addition to quality control reports, the ResNet team generated other types of
performance and status reports. Emphasis was placed on key issues, decisions
that needed to be made, and numerical progress on the project. Important
numbers tracked were the number of PCs installed, the average call handle
times for sales agents, and the number of calls resulting in direct ticket sales.
This emphasis on issues, decisions, and progress helped keep people, especially
senior management, interested and involved in reading and listening to perfor-
mance reports.
Figure 15-3 shows a sample status report created by a ResNet team member.
The format of the weekly status report included four sections: milestones, issues,
accomplishments, and goals. The first section listed milestones along with
planned and actual target dates, whether the item was completed, on schedule,
or behind schedule. The second section listed issues requiring discussion and
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426 ■ C H A P T E R 1 5

assistance. The majority of status reports included some items in this section,
consistent with Peeter’s directive to focus on issues and decisions that had to be
made, instead of boring people with technical facts. The final two sections listed
the last period’s accomplishments and the next period’s goals.

• Milestones Plan Actual Status

— Complete 3270 testing 5 Jun 9 Jun Completed
— Event Recorder Activated in Tampa 6 Aug On schedule
— Presentation to NWA Finance Com 6 Sep On schedule
• Issues Requiring Discussion/Assistance
— Need definition of WORLDSPAN/CORDA Change Management Process
— IMPACT: Need process that notifies ResNet of scheduled system changes
— ASSIGNED TO: J. Huss
• Last Period’s Accomplishments
— Completed initial design of Event Recorder analysis and began coding
— Researched slow response times in Tampa. Looked at Baltimore response times
— Completed minor adjustments to measurement reports per customer request
• Next Period’s Goals
— Conduct formal review session for Address Verification approval
— Beta test Event Recorder in the Hotline area in Bldg C

Figure 15-3. Sample Weekly Status Report

The graphical progress report described in Chapter 14 (see Figure 14-2) also
helped communicate project status. Every few weeks each office received an office
layout chart that showed what installations were completed. This report, along
with the learning curve charts for new hires’ call handle time and the charts plot-
ting direct ticket sales, helped keep the ResNet project on track in meeting perfor-
mance goals. The staff focused on meeting key business goals of the project, and
the report formats kept ResNet stakeholders informed of progress.

MANAGING RESISTANCE TO CHANGE

Arvid and Kathy, the information systems and application development team
leaders, did not have the traditional view of change management as the process
of handling requests to change project scope, time, or cost. They were used to
developing good project plans and executing them accordingly. They viewed
change management as dealing with people’s natural resistance to change, espe-
cially when that change involves new technology. The resulting change manage-
ment process was a key factor in managing the project and ensuring its success.
NWA formalized the importance of change management in their organiza-
tional structure for large information technology projects. The ResNet project
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CONTROLLING ■ 427

included a full-time analyst responsible for ResNet change management and sev-
eral reservation sales agents responsible for training and awareness. Nancy Strobel
was the head of ResNet Change Management and reported directly to Peeter. She
worked with a team of people from the reservation offices to help people get
involved in, get prepared for, and deal with the changes resulting from a new
reservation system. They prepared a change management plan and were instru-
mental in getting all of the reservation sales agents and their managers to support
ResNet. As part of their change management tactics, they helped develop and
implement themes for each office, as described in Chapter 14, Executing. For
example, they helped create posters with a Broadway show theme saying
“ResNet—Coming Soon”. They also provided special ResNet wrist pads, coffee
mugs, and other items to get the agents excited about the new system.
The change management team was also instrumental in identifying people
who might be resistant to the new system. Because the reservations sales
agents would be most affected by the new reservation system, the change man-
agement team decided to create a videotape after the ResNet beta test. Below
are the opening remarks from this videotape:
“Recently we began testing a new reservation system called ResNet with
agents from several of our offices. At the end of the test, we sat down with
these agents and asked them their candid opinion of ResNet. Now, we
know that change can be difficult. But what we found and what you’re
about to hear will hopefully show you that this is change for the better.
Our vision is that ResNet will improve customer service, increase efficiency
and revenue, and ultimately make your job easier. Once again, you will be
hearing from your peers—agents who have used this new system—giving
their honest opinion of ResNet.”1

The videotape included comments from many different sales agents, repre-
senting several sales offices. There were male and female sales agents of vari-
ous nationalities and age groups in the videotape. It was very effective in
getting the sales agents interested in the new system and calming some of
their fears. For example, a couple of the sales agents in the videotape men-
tioned that it was hard to get used to the new system at first, but that it was
definitely worth it. Several agents mentioned that they had fewer headaches
because of the new screen colors, and their job performance and job satisfac-
tion improved with the new system.
The change management team also decided that every single reservation
agent should get at least thirty minutes of one-on-one training on ResNet. This
one-on-one training helped personalize the experience and allowed people to
feel comfortable asking questions. Providing this individualized training for
about 4,000 sales agents showed that the ResNet team cared about the sales
agents and was willing to invest the time and money to help them adjust to the
new system.
1Comments made by NWA Director Crystal Knotek. Northwest Airlines “ResNet,” JUNTUNEN
VIDEO, Inc. April 4, 1995.
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428 ■ C H A P T E R 1 5

CASE-WRAP UP
Peeter’s idea to have status review meetings with upper management
focus on discussing issues and making decisions was very success-
ful. The managers were engaged in the meetings and offered good
suggestions for keeping ResNet on track. Peeter made sure his team
concentrated on using both business and technical terms at these
meetings. They also used charts to track the project’s numerical
progress, such as the number of PCs installed to date. This focus on
decision-making and numerical measures of progress worked well
to get senior management’s support in controlling the project.
The change management team was instrumental in helping sales
agents adjust to the new information system. The sales agents
involved enjoyed creating the beta test videotape, and other agents
enjoyed watching it. The agents also appreciated the one-on-one
training on ResNet, and they looked forward to seeing their progress
in reducing call handle times and increasing direct sales in the qual-
ity control charts. All stakeholders were very pleased to see the
financial results of ResNet when the final audit report showed that the
increase in direct sales attributable to ResNet greatly surpassed expecta-
tions. Instead of increasing direct sales by 5.5 percent as planned,
ResNet had increased direct sales by 17.7 percent. This 17.7 percent
increase meant an additional $2.3 million in 1996 commission savings.

C H A P T E R S U M M A R Y
Controlling is the process of measuring progress toward project objectives,
monitoring deviation from the plan, and taking corrective action to match
progress with the plan. Controlling cuts across all phases of the project life cycle.
Peeter made keeping on schedule a priority and focused on achieving mile-
stones one at a time. The ResNet team faced several challenges in meeting proj-
ect schedules, and they delayed the Detroit office installation to meet more
important business needs. They did, however, successfully complete all of the
ResNet projects according to schedule.
The ResNet project was designed to accept software enhancement requests,
but the software developers could not implement all of the suggested changes.
Managers prioritized enhancements, and the software developers completed as
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CONTROLLING ■ 429
many as they could while still meeting schedule deadlines. They implemented
about 38 percent of 11,000 suggested enhancements.
Quality control techniques were a factor in communicating progress and
pushing staff toward project success. Industrial engineers played an important
role in project control.
Performance and status reports focused on issues and tracking key perfor-
mance numbers.
The ResNet project included a full-time analyst for change management in
addition to reservation sales agents responsible for training and awareness.
NWA understood the importance of helping people adjust to changes and
invested funds in creating a videotape about ResNet for the sales agents and in
one-on-one training.

DISCUSSION QUESTIONS
1. Recall that the 1995 Standish Group study of information technology proj-
ects found that the average schedule overrun was 222 percent. Also recall
that schedules are the main source of conflict on projects. Discuss Peeter’s
decision to focus on meeting schedule milestones. Could this approach be
taken on more information technology projects? Justify your answer.
2. The ResNet group adopted a philosophy of giving up some system func-
tionality to meet milestones. What do you think about this approach?
Could this approach be taken on more information technology projects?
Justify your answer.
3. Discuss the charts created for quality control (Figures 15-1 and 15-2). Do
you think most users would understand and appreciate these types of
charts? Do you think they influenced the reservation sales agents to work
harder because they knew their progress on reducing call handle time
and making direct sales was being tracked? Could this approach be taken
on more information technology projects?
4. Discuss the format of the sample weekly status report. What do you
like/dislike about it? Does emphasizing issues and decisions make sense?
Could this approach be taken on more information technology projects?
5. Discuss the use of a change management team on ResNet. Could this
approach be taken on more information technology projects?

EXERCISES
1. Read the article by Elton and Roe listed in the Suggested Readings. They
provide and critique project management suggestions made by Eli
Goldratt in his books The Goal and The Critical Chain. Write a paper sum-
marizing the key points of this article and how it relates to the ResNet
project. Be sure to address the authors’ point that measurements should
induce the parts to do what is good for the whole. Also discuss Goldratt’s
view that the fewer the milestones, the fewer the delays, and how it
relates to ResNet.
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430 ■ C H A P T E R 1 5

2. Find two examples of recent status reports for projects. Compare the
information they contain with the example in Figure 15-3. Write a one-
to two-page paper summarizing and analyzing your findings. Include the
two examples you find as attachments. Include suggestions on how to
prepare good status reports in your paper.
3. Do an Internet search on “project control.” Summarize some of the many
vendors that offer their services to help control projects. Try to find any
real advice or information on what helps control projects, especially in
information technology.
4. Research quality control techniques. Write a two to three-page paper
summarizing at least two different techniques and try to find examples of
how they helped keep projects under control.
5. Research books and articles on helping people deal with change, especially
new technologies. Kanter’s book (see the Suggested Readings list) is a classic
in this area. Summarize information from three good sources on change
management and provide your opinion on their recommendations.

MINICASE
Peeter did an excellent job of controlling the ResNet projects, but he faceed
several challenges and used unique approaches to managing change.
Part 1: Review the information provided in What Went Wrong? and the para-
graph following it. Pretend that you are Arvid Lee and that you want to rally
other members of the ResNet team to convince Peeter and Fay not to change
the sequencing of office installations. Develop a plan for how you would con-
vince your teammates to take a stand. Include in the plan how the team would
convince Peeter and Fay not to make the schedule changes.
Part 2: The ResNet team’s approach to scope change control was unique.
Specific people were assigned to develop enhancements to the software, but
these people could not handle all of the enhancement requests. Develop a
weighted scoring model that could be used to help prioritize which enhance-
ment requests should be implemented. For example, criteria might be the
potential value of the new enhancement, how long it would take to imple-
ment, how many agents would use the new enhancement, and so on (see
Chapter 4, Project Scope Management, for information on weighted scoring mod-
els). Also develop a form for submitting enhancement requests.

SUGGESTED READINGS
1. DeMarco, Tom. The Deadline. New York: Dorset House Publishing, 1997.
Tom DeMarco has published several articles and books related to man-
aging software development projects. This book is a business novel that
illustrates the basic principles that affect the productivity of software
development teams.
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CONTROLLING ■ 431

2. Elton, Jeffrey and Justin Roe. “Bringing Discipline to Project Management.”

Harvard Business Review (March/April 1998).
This article discusses Eli Goldratt’s books on project control and offers
suggestions for using a more disciplined approach to project manage-
ment. Suggestions include having measurements that induce the parts
to do what is good for the whole, having strong senior management
involvement, and focusing on personal skills.
3. Goldratt, Eliyahu and Jeff Cox. The Goal: A Process of Ongoing Improvement,
Great Barrington, MA: North River Press, 1994.
In this book Goldratt uses a fictional story to illustrate the fundamentals
of running a business. He describes several problem-solving techniques
for managers who lead organizations through change and improve-
ment, which are inevitable in any industry.
4. Kanter, Rosabeth Moss. Change Masters: Innovation and Entrepreneurship in
the American Corporation. New York: Simon & Schuster, 1985.
Dr. Kanter’s book describes how to be effective in overcoming the kind
of “stalled” thinking that inhibits progress in almost all organizations.
The author draws strongly from her own research in several different
organizations to offer strategies for mastering change and ensuring
progress.
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16 Chapter A4148 23218 6/8/01 6:28 PM Page 433

16Closing
Objectives
After reading this chapter, you will be able to:
1. Understand the importance of formally closing projects
2. Discuss closing processes and outputs and how they were used on ResNet
3. Describe the tools and techniques used to aid project closing on ResNet
4. Explain how NWA measured the business benefits of ResNet
5. Describe the methodology and findings in the ResNet final audit report
6. Discuss the lessons learned from the ResNet projects
7. See how NWA continues to enhance ResNet and develop the discipline of
project management in the 21st century
8. Relate some of the closing events in ResNet with concepts described in
previous chapters

T he ResNet team held a final recognition event as part of closing

the ResNet project. As usual, it was a big affair. The software
development team wrote and performed a “developers’ rap” to share
their experiences on the project. In addition to having a recognition
event, the project team conducted a formal audit on the project to
document its value to Northwest Airlines. The audit was designed to
answer the following questions: Did the project deliver what it said
it would? Could the ResNet team demonstrate that ResNet was
indeed helping sales agents in booking more direct sales and
decreasing their call handle times? Should the company take on
other large information technology projects like this again?
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434 ■ C H A P T E R 1 6

WHAT IS INVOLVED IN CLOSING PROJECTS?

The closing process involves gaining stakeholder and customer acceptance of
the final product and bringing the project, or project phase, to an orderly
end. It includes verifying that all of the deliverables have been completed,
and it often includes a project audit. Even though many information tech-
nology projects are canceled before completion, it is still important to for-
mally close them and reflect on what can be learned to improve future
projects. As philosopher George Santayana said, “Those who cannot remem-
ber the past are condemned to repeat it.”
It is also important to plan for and execute a smooth transition of the
project into the normal operations of the company. Most projects produce
results that are integrated into the existing organizational structure. For
example, ResNet produced a new reservation system interface that replaced
the native TELEX terminals. The sales offices adopted the new system, and
the Information Services Department provided maintenance for the system.
Other projects result in the addition of new organizational structures, such
as a new department to manage a new product line.
When senior management cancels projects, they sometimes do so in one
of two ways: extinction or starvation. For example, if NWA decided not to
fund the 1995 or 1996 ResNet projects, the project would have been extinct.
If management had only provided a fraction of the money required to suc-
cessfully complete any of the ResNet projects, the projects would have ter-
minated by starvation. Project termination by starvation is very hard on
people and is usually done when organizations are unwilling to admit proj-
ect failure. Fortunately for NWA and the ResNet team, the ResNet projects
were very well managed, successfully completed, and integrated into the
existing organizational structure. Even successful projects, however, must be
closed properly.
Table 16-1 lists the knowledge areas, processes, and outputs of project
closing. During the final closing of any project, project team members should
take the time to communicate project results by documenting the project
and sharing lessons learned. If items were procured during the project, the
project team must formally complete or close out all contracts. Closing activ-
ities on the ResNet project described in this chapter include administrative
closure, a final project audit, a final recognition event, personnel transition,
and discussions of lessons learned. This chapter also provides a summary of
another ResNet project, ResNet+, which addressed new business needs
related to the ResNet system, and a description of ResNet+ and project man-
agement at NWA in the 21st century.
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CLOSING ■ 435

Table 16-1: Closing Processes and Output

KNOWLEDGE AREA PROCESS OUTPUTS
Communications Administration Closure Project Archives
Project Closure
Lessons Learned
Procurement Contract Close-out Contract File
Formal Acceptance and Closure

ADMINISTRATIVE CLOSURE
Administrative closure involves verifying and documenting project results to
formalize stakeholders’ acceptance of the product(s) of the project. It includes
collecting project records, ensuring the product(s) meet final specifications, ana-
lyzing whether the project was successful and effective, and archiving project
information for future use. On the ResNet project, inputs to administrative clo-
sure were performance measurement reports (described in Chapters 14 and 15)
and the product documentation or specifications used in developing and procur-
ing the hardware and software. Because stakeholders were active participants in
ResNet, they knew the project was completed when all the ResNet workstations
were installed, all the agents were trained, the system had been thoroughly
tested, and the benefits had been measured.
NWA had several reviews of the benefits of ResNet. The beta test documented
sales agents’ reactions to the new reservations software and measured their per-
formance in handling calls and making more direct sales. In 1996, a formal
ResNet benefits review meeting summarized sales agents’ performance twenty
weeks after ResNet was implemented in the Tampa and Baltimore offices. Table
16-2 shows the results, as documented in a memo from Peeter Kivestu to Fay
Beauchine on March 13, 1996. Note that call handle time decreased, direct sales
increased, and new hire training took less time. Developing measurement tech-
niques and measuring progress toward meeting business goals helped the
ResNet team close the beta and ResNet 1995 projects and receive funding for
the 1996 project.

Table 16-2: ResNet Benefits Results from March 1996 Benefits Review
MEASUREMENT RESULT
Call Handle Time 4.4% Reduction
Direct Ticket Sales/100 Calls 6.0% Increase
New Hire Training Better Call Handle Time with 25% Less Training
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436 ■ C H A P T E R 1 6

RESNET AUDIT
A formal ResNet audit was completed on December 10, 1996. Project audits are
a good technique for formally reviewing project progress and results. The
ResNet audit was designed to address two questions: What benefits, in terms of
selling and call handle time, have been realized by the Reservations Department
as a result of ResNet, and how do those real results compare with projected
results in the PR2 plan? The answers to these questions were documented in
the audit as follows:
■ The Reservations Department has significantly increased selling as a
result of management leadership, the market environment, and the
opportunities provided by ResNet as a selling tool.
■ While increased selling, new hires, E-Ticket sales, and other factors
have increased reservations’ average call handle time for 1996, statistics
support a handle time benefit from ResNet conversion.
■ Of the two items audited, the higher than expected increase in selling
compensated for the shortfall in call handle time, resulting in a net gain of
$0.8 million to Northwest Airlines in 1996 versus the PR2 projections.1
The actual call handle time improvement of 5.4 percent, based on the
1996 audit, was slightly lower than the PR2 projections of 6.7 percent. The
projected financial benefits of ResNet were based primarily on an improvement
in call handle times and an increase in direct sales. The real improvement in
call handle times was lower than the projection, resulting in lower financial
benefits from that area. However, it did not result in lower overall financial
benefits because there was a greater increase in direct sales than what was
originally projected.
The audit report included several charts to portray the impact of ResNet on
selling, the effect of major factors on average call handle time, the ResNet
agents’ call handle times after the learning curve effects, and so on. Figure 16-1
shows the chart used in the audit report to display the impact of ResNet on
selling.2 Notice that its simple format helped to communicate one of the sig-
nificant benefits of this new system—a 17.7 percent increase in direct sales
over the old system (referred to as TELEX because of the hardware it ran
on). The PR2 goal for increased selling was only 5.5 percent. This increase in
direct sales translated into an additional $2.3 million in 1996 commissions
savings above the PR2 projection.

1Reservations Sales & Services, “ResNet Audit,” Northwest Airlines internal document,
December 10, 1996.
2Ibid.
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CLOSING ■ 437

17.7% Increase
5.5

Direct Tickets per 100 Calls

5.24
5.0 5.5% Increase
4.69
4.5 4.45

4.0
3.67
3.5

3.0
Actual on Predicted Predicted Historical on
ResNet on ResNet on TELEX TELEX
(PR2) (Modeled) (Actual)

Figure 16-1. Selling Impact of ResNet

What Went Right?

The audit methodology showed the amount of rigor that NWA put into its project audits
and benefits measurement methodology. All three ResNet projects made good use of
experts who understood the importance of using a sound benefits measurement methodol-
ogy. These experts analyzed historical information, ensured that data was not biased, and
used appropriate statistical techniques to develop and then measure the benefits of ResNet.
The following points were included in the audit to describe the selling audit methodology:
■ In order to create a stable population for sampling, agents in the survey were required to
be full-time, to be working at least 20 hours per week, and to have a seniority date prior
to 1/1/95.

■ On the basis of four months of historical performance, ongoing TELEX sales data, and
statistical modeling, direct ticket sales per 100 calls on the old TELEX system were
predicted.

■ Actual ResNet selling performance was then compared to the predicted TELEX perfor-
mance for three national offices and MSP International.

■ Biasing factors, such as weather, new hires, and the changing sales environment,
were isolated using multiple regression analysis to determine the true impact
of ResNet.3

3Ibid.
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438 ■ C H A P T E R 1 6

RESNET FINAL RECOGNITION PARTY AND PERSONNEL

TRANSITION
Peeter and his team knew how important strong starts were for ResNet. They
decided to also have a strong finish. They held a large luncheon to celebrate
ResNet’s success and recognize the people who worked so hard on the project.
Kathy and her team of software developers wrote a rap song to describe their
experiences on the project. You can find the words to the rap in Figure 16-2.
Peeter authorized a small amount of funds to hire a professional actor to help
the group perform this rap. Many people received awards and gifts to recognize
their contributions to the project. The final recognition event was a fun way to
share in the celebration of finishing this important and highly successful project.

Figure 16-2. ResNet Developers’ Rap

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CLOSING ■ 439

Another aspect of project closing is transferring project personnel back into

other parts of the organization. Recall that Northwest Airlines had a strong
functional organization. People on the project returned to their functional
areas and started working on other assignments. A few information services
personnel were assigned to maintenance support for ResNet, and others,
including Arvid Lee, started working on the next important information tech-
nology project for NWA. In 1998 Arvid was selected to be the project manager
for the ResNett project, as described later in this chapter. A few people, includ-
ing Kathy Christenson, transferred from the Reservations and Marketing
Departments to the Information Services Department to begin new careers in
information technology. Kathy was selected to be the Account Manager for
ResNet+, and Peeter Kivestu is now a vice president at NWA.

What Went Wrong?

NWA still struggles with transferring people, roles, and responsibilities between projects and
on-going operations. For example, there were problems after completing the Computer
Telephony Integration (CTI) work for ResNet 1996. This new technology provided better call
handling by having customers respond to telephone prompts before talking to a sales
agent. When the ResNet team had completed the work, the functional group that should
have taken over support did not understand or willingly accept their new roles and responsi-
bilities. Also, NWA did not budget enough people to support this new technology. This lack
of transition planning caused several conflicts after the ResNet project ended. Senior man-
agement eventually had to intervene to resolve these conflicts.

LESSONS LEARNED
Although no formal lessons learned were written after completing the ResNet
project, former project members continue to share their experiences and take
actions based on lessons they learned from the project. Peeter, Kathy, and
Arvid highlight the following as lessons they learned from the ResNet project:
■ Let workers have fun. Many information technology professionals are
introverted, and this characteristic often causes communications prob-
lems. Creating a fun working environment helps technical people and
other project stakeholders take more interest in information technology
projects and promotes buy-in, creativity, and teamwork.
■ Beginnings are important. It is easy to underestimate confusion, especially
when defining the goals of a project. The project manager needs to get
people together early to discuss key project issues. It is also important to
have a strong beginning at each phase of a project.
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440 ■ C H A P T E R 1 6

■ Top management support is critical. Fay Beauchine was the main sponsor
of ResNet, and she provided support throughout the project.
■ Managing change is 50 percent of project management. Everyone is
different, so different approaches must be used to help people adjust to
change. Lots of communication in various forms is crucial.
■ Make management reviews interactive. During a review, always include
the decision to keep management actively engaged. In addition, use busi-
ness terms and focus on issues, not just status.
■ Set realistic milestone dates, and then stick to the schedule as much as
possible. Vary the scope, if necessary, and prioritize user requirements to
meet dates. Missing dates often produces chaos. Reach one incremental
goal at a time.
■ Plan at a workable level. It is easy to get bogged down in too much detail.
Focus on getting work accomplished.

RESNET+
Business and market forces usually require most new information systems to
change, and ResNet is no exception. In July 1998, NWA launched a new
ResNet project called ResNet+. Kathy Christenson was the Account Manager
for the ResNet+ project, and Arvid Lee was the project manager for this
$12.5 million project.
Using their experiences from previous ResNet and other information tech-
nology projects, NWA focused on business needs as the basis for ResNet+. They
were negotiating more global alliances with other companies, customers were
becoming more computer savvy and accessing flight information on the Web,
and new technologies such as computer-based training (CBT) provided oppor-
tunities to reduce training costs.
Figure 16-3 shows a chart that Kathy Christenson created to document the
ResNet application and system requirements from 1995 to 1999 and beyond.
The x-axis represents time, and the y-axis represents ResNet application size in
megabytes (MB). ResNet 1995 and 1996 applications are shown using various
symbols on the line graph. Important business decisions, such as integrating
the WorldPerks operation, improving E-ticketing, and integrating with KLM
airlines, are shown above the line graph. The figure shows that additions to the
ResNet application and related tools on the ResNet PCs had grown steadily
since January 1995. The figure also shows that ResNet had continued to sup-
port new business initiatives.
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CLOSING ■ 441

ResNet Application and Sytem

WorldPerks
Requirements have expanded
35 Database

Continental
ResNet Application Size MB 30 Alliance

25 KLM
Integration Customer
Management
20 E-Ticket with CTI and
WorldPerks Agent skills
15 IRRC

10

ResNet Platform
5 at Full Capacity

0
Jan-95
May-95
Mar-96
Jul-96
Sep-96
Jun-96
Dec-96
Apr-97
Nov-97
Apr-98
Jun-98
Jul-98
Nov-98
Apr-99
1999
1999
1999
Development time
Glossary of Terms 10 – 18 months
ResDoc - WorldPerks member letter-writing system
CMS - Real-time phone statistics for supervisors
FAX - Online fax service for specialty sales
ResTrac - Specialty Sales contact system
Specialty Sales/Cruise - process improvement project
CTI - WorldPerks screen-pop of customer information
RPMS - Reservations Performance Measurement System
OCM - Outbound Call Management
CBT - Computer-Based Training
Info Search
Future Global Alliance

Figure 16-3. Business Need for ResNet+

You can see from the figure that in mid-1999, the ResNet PCs would have
reached full capacity. The ResNet+ project upgraded the ResNet PCs to NT work-
stations and provided new software applications for the NWA reservations sales
agents, such as computer-based training and an information search engine.
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442 ■ C H A P T E R 1 6

RESNET+ AND PROJECT MANAGEMENT AT NWA IN THE

21ST CENTURY
NWA continues to modify and enhance ResNet+ to provide additional func-
tionality and to address increases in Web-based ticketing. The ResNet+ project
ended in May 2001, delivering all of the planned scope under budget and
slightly behind schedule. Arvid says they would have been on schedule, but
the supplier of the computer-based training part of the project ran into difficul-
ties and fell slightly behind schedule. The success of the original ResNet proj-
ects also prompted NWA to expand its internal work in developing the
profession of project management.
As described in the previous section, ResNet+ involved upgrading the origi-
nal ResNet PCs to NT workstations and providing new software applications.
The major new functions of the ResNet+ software include:
■ New business functions: The ResNet+ application is regularly updated to
support required new business functions. For example, NWA implemented a
new frequent flier system and new marketing programs with alliance part-
ners. ResNet+ included new software to address these new business func-
tions. New software was also required to address changes made to
Worldspan, the main reservation system and database to which ResNet+
interfaces. Agents are largely insulated from all technical changes, however,
as their system presentation and processes remain relatively constant. This
approach is a major benefit because training/retraining costs are minimized,
learning curves for new functions are reduced, and agent productivity, cus-
tomer service, and revenue generation are maintained at a high level.
■ Computer-based training: New call center agents at NWA can now complete
a full training curriculum online. The training includes step-by-step training,
simulated telephone calls, full online simulations, “try-it” sessions, and
learning assessments. Training updates for new system features and market-
ing programs are easily delivered to existing call center employees.
■ ResQuest: NWA has enhanced the ResNet+ workstation to use ResQuest,
an integrated intranet-based online reference system, which provides access
to nearly 40,000 documents. These documents cover a wide range of topics
required by the agent to answer customer questions and to sell and service
customer travel itineraries. The customer may have questions about prod-
ucts or services offered by NWA, its Alliance airline partners, and other
business partners for car rentals, hotel reservations, and so on. ResQuest
includes a search engine that enables the agent to find information quickly
via keyword searches. The search engine utilizes synonyms, “soundex”
searches, similar spelling, and so on, to aid the search. Examples of refer-
ence information include geographic maps, policies and procedures, aircraft
seating schematics, copies of recent promotional materials, sample tickets,
and other documents that NWA may have sent to customers.
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CLOSING ■ 443

The number of people making flight reservations and purchasing other

travel-related products and services over the Internet has increased dramati-
cally in the last few years. NWA and other travel companies will continue to
offer new and improved services from their Web sites. The ResNet+ application
fully supports travel itineraries booked directly by customers via the Internet.
Customers can call NWA agents to add, change, or cancel those itineraries.
Some people might ask if ResNet+ or similar applications will be totally con-
verted to Web-based applications. Arvid states that converting to a Web-based
application is not an automatic “no-brainer” decision, as some people might
expect. The current ResNet+ interface has been designed for high productivity.
Web-based presentations may be more visually attractive, but often they are
not more productive. A major financial investment is often required to convert
systems to Web-based applications, and any major financial investment must
be supported by a demonstrated financial benefit. The ResNet+ application con-
tinues to be a very successful business project and system.
Project management is gaining acceptance and momentum as a recognized
discipline at NWA. The initial ResNet project was a strong catalyst for that accep-
tance because it is an excellent example of the value of effective project man-
agement. Most sponsors of major projects at NWA specifically request project
managers because they believe this will improve the success of the project. NWA
has established a formal project management office (PMO), which in 2001 was
staffed by more than twenty-five project managers. Arvid’s title is now project
manager, and he is part of the PMO. As mentioned earlier, Peeter Kivestu
moved on to become a vice president at NWA after completing the ResNet 1996
project. His experience and success as a project manager helped prepare him
well for an executive management position.
The project management office encourages NWA project managers to seek
PMP certification and is actively developing and promoting a standard project
methodology to support infrastructure and application development projects.
However, NWA realizes that establishing a project management office, in itself, is
not a magic guarantee of project success. The willingness of an organization to
embrace the discipline of project management is still a key to successful projects.

CASE-WRAP UP
ResNet was and continues to be a highly successful information tech-
nology project for Northwest Airlines. Peeter and his team delivered a
new reservation system interface that enabled sales agents to increase
direct ticket sales and reduce call handle times. The call centers moved
from being a financial drain on the company to being a very profitable
part of the company. In 1996, ResNet saved NWA over $15 million, and
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444 ■ C H A P T E R 1 6

savings were over $33 million in 1997. Sales revenues were over
$1.2 billion dollars in 1998, compared to $300 million in 1993. The
ResNet projects met stakeholder expectations, and everyone involved
had the added benefit of enjoying their work on the project. Peeter
proved that a large information technology project could be managed
well by using good project management, and Kathy Christenson and
Arvid Lee are continuing to lead ResNet into the 21st century.

C H A P T E R S U M M A R Y
The closing process group involves gaining acceptance of the end product
and bringing the project to an orderly conclusion. It includes verifying that all
of the deliverables have been completed and often includes a project audit.
Administrative closure activities on ResNet included creating a final project
audit and holding a final recognition event. The purpose of the project audit
was to determine the impact of ResNet on the direct ticket sales rate and agent
call handle time, compare actual performance improvements to projections,
and determine the bottom line impact of actual performance versus the plan.
Results of the audit found that ResNet exceeded expectations by increasing
direct ticket sales by 17.7 percent, when the plan projection was 5.5 percent.
The call handle time reduction of 5.4 percent was less than the plan estimate of
6.7 percent, but the increase in sales more than made up for the longer call
handle time.
The final recognition luncheon provided a fun way to share in the success of
the project. Giving people awards and gifts helped provide closure and a shared
sense of community for NWA employees.
Lessons learned by members of the ResNet project included making projects
fun, having strong beginnings, having strong top management support, actively
managing change, focusing on decisions at project review meetings, focusing
on meeting schedule deadlines, and planning at a workable level.
NWA initiated a project in 1998, ResNet+, to further enhance ResNet so that the
system would continue to support reservations success. NWA continues to modify
and enhance ResNet+ in the 21st century to provide additional functionality and
to address increases in Web-based ticketing. NWA established a project manage-
ment office and continues to promote the discipline of project management.

DISCUSSION QUESTIONS
1. Describe the key processes and outputs of the project closing process
group. Describe some of the outputs of closing the ResNet project.
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CLOSING ■ 445

2. Review the goals of the ResNet final audit report. What was the focus of
the audit? Why was it important to document the methodology assump-
tions? What other questions could be included in a final project audit?
3. Which lessons learned do you think Peeter, Kathy, and Arvid will most
likely use on future projects?
4. Which lessons learned do you think will be hardest to replicate on future
projects? Explain your answer.
5. Discuss some of the changes NWA made in ResNet+ and some of the
changes in their approach to project management in the 21st century.

EXERCISES
1. Research information on project audits. Write a one- to two-page paper
summarizing at least two articles on this topic. Be sure to include items
such as purposes and contents of audits and when they should be done.
2. Interview two to three people who worked on the same information
technology project. Ask each person what lessons he or she learned from
working on the project. Did they have similar answers to this question?
How do their lessons learned compare to those described by people who
worked on ResNet? Document your findings in a one- to two-page paper.
3. Chapter 9, Project Communications Management, suggests that people take
time to formally document lessons learned from projects and share those
lessons with others. Read at least two articles (from the Internet, maga-
zines, books, or personal interviews) about formal lessons learned.
Suggested Reading 4 is one possible source. Do most projects include for-
mal lessons learned at the end? Why or why not? Write a one- to two-
page paper summarizing your findings.
4. People assigned to ResNet returned to their functional areas after the
project ended. Many projects do not draw people from strong functional
organizations, so reallocating people is often an important issue in closing
projects. Read at least two articles that address the issue of staffing and
what happens to people after projects are completed. Summarize the
issues involved in project staffing in a one- to two-page paper.
5. Review the suggested reading by Todd Weiss and other recent articles
related to online ticket sales. Changes in the market often affect information
systems in terms of their required functionality and their financial benefits.
In a one- to two-page paper, summarize the issues involved in online ticket
sales as they relate to profitability for airlines and travel agencies.

MINICASE
An important output of the closing process is creation and sharing of lessons
learned. As good as they were at project management, the ResNet team did not
write any formal lessons learned.
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446 ■ C H A P T E R 1 6

Part 1: Assume that you have been asked by Northwest Airlines to develop a
template for all project teams to start documenting their lessons learned.
Create a template, then use it to document the lessons learned on ResNet.
Part 2: In addition to documenting lessons learned, it’s critical to share them
with others. Develop a proposal on how organizations can share lessons
learned among people and projects. Include specific policies that organizations
could create, and explain how they might use technology to facilitate sharing
of lessons learned.

SUGGESTED READINGS
1. Collier, Bonnie, Tom DeMarco, and Peter Fearey. “A Defined Process for
Project Postmortem Review.” IEEE Software (July 1996).
The authors describe a practical approach for holding project post-
mortem reviews. A postmortem review is like lessons learned that docu-
ment what went right and wrong on a project.
2. Greco, Susan, Christopher Caggiano, and Marc Ballon. “I Was Seduced by
the New Economy.” Inc (February 1999): 34–46.
Inc. magazine’s cover story describes the lessons several smart CEOs
learned the hard way about doing business in the late 1990s. Several
myths they discussed include the need to be a virtual organization, the
belief that technology makes life easy, and the belief that businesses
must be on the Web in a big way.
3. Ruskin, A. M. and W. E. Estes. “The Project Management Audit: Its Role
and Conduct.” Project Management Journal (August 1985).
This article describes what project audits entail and offers suggestions
on performing a project audit.
4. Segil, Larraine. “Global Work Teams: A Cultural Perspective.” PM Network
(March 1999): 25–29.
Staffing and creating teams are issues throughout a project’s life cycle.
This article discusses issues related to global work teams. The author’s
suggestions also apply to transitioning people on and off projects.
5. Weiss, Todd R. “Travelocity Strikes Back as Northwest and KLM Drop
Online Ticket Commissions.” Computerworld (March 2, 2001).
This article describes how Internet travel agency Travelocity.com Inc.
began charging a $10 fee on all Northwest and KLM tickets for travel in
the U.S. and Canada one day after those airlines dropped their commis-
sions on plane tickets sold online. Links are provided to related stories
from www.computerworld.com.
6. Whitten, Neal. “Are You Learning From Project to Project?” PM Network
(March 1999): 16.
This short article stresses the fact that many projects do not have a
mandatory post-project review, and even fewer require project man-
agers on new projects to review other lessons learned.