HARVARD BUSINESS REVIEW
PROJECT MANAGEMENT
HANDBOOK
HOW TO LAUNCH, LEAD, AND SPONSOR
SUCCESSFUL PROJECTS
BY ANTONIO NIETO-RODRIGUEZ
Contents
Figure I-1
Figure 1-1
Figure 2-1
Figure 3-1
Figure 3-2
Figure 3-3
Figure 3-4
Figure 3-5
Figure 3-6
Figure 4-1
Figure 5-1
Figure 5-2
Figure 6-1
Figure 6-2
Figure 6-3
Table 6-1
Figure 6-4
Figure 6-5
Figure 7-1
Figure 7-2
Figure 7-3
Figure 7-4
Figure 7-5
Figure 7-6
Figure 7-7
Figure 8-1
Figure 8-2
Figure 8-3
Figure 9-1
Figure 12-1
Benefits Card
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
FIGURE I-1
The Project Canvas
Foundation
People
Creation
Purpose
Sponsorship
Stakeholders
Deliverables
Plan
Why are we
doing the
project?
Who is
accountable
for the
project?
Who will benefit
from and be
affected by the
project?
What will
the project
produce, build,
or deliver?
How and when
will the work
be carried out?
Resources
Change
Who will
manage the
project, and
which skills
are needed
to deliver
the project?
How are
we going
to engage
stakeholders
and manage
the risks?
Investment
Benefits
How much will the project cost?
What benefits and impact will the
project generate, and how will we
know the project is successful?
3
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FIGURE 1-1
Organizational ambidexterity
Strategy
a
Ch
he
nt
Ru
Strategic
programs/projects
ion
at
niz
or
ga
ga
or
niz
at
he
et
ion
ng
Day-to-day
activities/operations
Local projects
4
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FIG URE 2-1
Complexity
(Size, scope, stakeholders, alignment)
High
Project typologies
Transformative
projects
Sustaining
projects
Low
Efficiency
projects
Low
High
Uncertainty
(Novelty, experience, clarity, budget)
5
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FIGURE 3-1
High
Implementation methods matrix
Complexity
(Size, scope, stakeholders, alignment)
Megaprojects
Ideation
Program management
Lean
startup
Project
management
Transformative
Continuous
improvement
Low
Efficiency
Agile
methods
Sustaining
Low
High
Uncertainty
(Novelty, experience, clarity, budget)
6
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FIGURE 3-2
Percentage of professionals
Usage rates of agile and traditional project management methods
30%
20%
10%
0%
No agile
methods
50% agile
75% agile
25% agile
75% traditional 50% traditional 25% traditional
No traditional
methods
Other
methods
Source: HBR Project Management Handbook Project Expert Survey, July 2020, N = 728
7
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FIG URE 3-3
Project success ratios
Percentage of resp0ndents
Executives
Project professionals
30%
20%
10%
0%
None
1‒25%
26‒50%
51‒75%
76‒100%
Don’t know
Proportion of projects that deliver their promised value
Source: HBR Project Management Handbook Project Expert Survey, July 2020, N = 728; and
HBR Project Management Handbook Executive Survey, July 2020, N = 566
8
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9
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Initiation
Scope of project management
Ideation
Modern view
Initiation
Planning
Planning
Traditional view
Reshaping the project life cycle
FIGURE 3-4
Implementation
(monitoring,
reporting, testing)
Closing
(handover)
Implementation
(monitoring, reporting,
testing)
Benefits
Closing
(handover)
Run
Benefits
FIGURE 3-5
The triple constraint, or iron triangle
Scope
Quality
Cost
Time
10
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FIGURE 3-6
The new outward-looking triple constraints
Risks
Value
Alignment
Benefits
Engagement
Sustainability
Dedication
Recognition
11
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FIGURE 4-1
The Project Canvas
Foundation
People
Creation
Purpose
Sponsorship
Stakeholders
Deliverables
Plan
Why are we
doing the
project?
Who is
accountable
for the
project?
Who will benefit
from and be
affected by the
project?
What will
the project
produce, build,
or deliver?
How and when
will the work
be carried out?
Resources
Change
Who will
manage the
project, and
which skills
are needed
to deliver
the project?
How are
we going
to engage
stakeholders
and manage
the risks?
Investment
Benefits
How much will the project cost?
What benefits and impact will the
project generate, and how will we
know the project is successful?
12
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FIGURE 5-1
The foundation domain
Foundation
People
Creation
Purpose
Sponsorship
Stakeholders
Deliverables
Plan
Why are we
doing the
project?
Who is
accountable
for the
project?
Who will benefit
from and be
affected by the
project?
What will
the project
produce, build,
or deliver?
How and when
will the work
be carried out?
Resources
Change
Who will
manage the
project, and
which skills
are needed
to deliver
the project?
How are
we going
to engage
stakeholders
and manage
the risks?
Investment
Benefits
How much will the project cost?
What benefits and impact will the
project generate, and how will we
know the project is successful?
13
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FIGURE 5-2
The benefits triple constraint
Value
Benefits
Risks
Sustainability
14
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FIGURE 6-1
The people domain
Foundation
People
Creation
Purpose
Sponsorship
Stakeholders
Deliverables
Plan
Why are we
doing the
project?
Who is
accountable
for the
project?
Who will benefit
from and be
affected by the
project?
What will
the project
produce, build,
or deliver?
How and when
will the work
be carried out?
Resources
Change
Who will
manage the
project, and
which skills
are needed
to deliver
the project?
How are
we going
to engage
stakeholders
and manage
the risks?
Investment
Benefits
How much will the project cost?
What benefits and impact will the
project generate, and how will we
know the project is successful?
15
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FIG URE 6 -2
Executives’ time allocation
4%
Strategy and long-term thinking
(scenario planning, innovation, etc.)
23%
Day-to-day management of the
organization (sales, finance,
operations, continuous
improvement, etc.)
32%
Projects and implementation of
initiatives (transformation, change, etc.)
Other
41%
Source: HBR Project Management Handbook Executive Survey, July 2020, N = 566
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FIGURE 6-3
Danger
Champion
Spectator
Fan
0%
Dedication
How much of your time do you
dedicate to this project?
100%
Dedication and commitment matrix
100%
0%
Commitment
How committed are you to the
success of the project?
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TABLE 6-1
Example of a responsibility assignment matrix
Laura
Alexander
Selma
Lucas
Define project purpose and business case
A
R
I
I
Appoint project manager
A
I
I
I
Define scope and requirements
C
R
C
I
Create project plan
I
A
R
C
Test solution
I
A
C
R
I
A
R
C
A/R
R
I
I
Launch solution
Track benefits
Abbreviations: A, accountable; R, responsible; I, informed; C, consulted.
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FIGURE 6-4
The engagement triple constraint
Alignment
Engagement
Dedication
Recognition
19
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FIGURE 6-5
Stakeholder matrix
Mapping stakeholders can help project sponsors and managers visualize opportunities
and risks for the project. In this case, the sponsor may want to focus on engaging Alex
more in the project, or persuading Jim or Anna on the benefits of the project.
Anna
Level of influence (power)
Jim
Alex
Dormant
Core
Carol
Trivial
Paul
Vocal
Luisa
Level of interest (impact by project outcome)
Against
Neutral
In favor
20
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FIGURE 7-1
The creation domain
Foundation
People
Creation
Purpose
Sponsorship
Stakeholders
Deliverables
Plan
Why are we
doing the
project?
Who is
accountable
for the
project?
Who will benefit
from and be
affected by the
project?
What will
the project
produce, build,
or deliver?
How and when
will the work
be carried out?
Resources
Change
Who will
manage the
project, and
which skills
are needed
to deliver
the project?
How are
we going
to engage
stakeholders
and manage
the risks?
Investment
Benefits
How much will the project cost?
What benefits and impact will the
project generate, and how will we
know the project is successful?
21
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22
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Level 2
Level 1
Level 0
2.3. Procurement
1.3. Schedule
1.4. Budget
2.2. Contract
2.1. RFQ
2. Planning
1.2. WBS
1.1. Scope
1. Design
5.3. Renovate
burnt timbers
5.4. Renovate
metal artifacts
4.3. Renovate
south walk
4.4. Rebuild
spires
4.5. Rebuild
frame
4.6. Rebuild
roof
3.3. Reinforce
flying
buttresses
3.4. Install
scaffolding
3.5. Dry the
stone
3.6. Clean
debris
5.2. Renovate
fallen stonework
5.1. Clean and
tune great
organ
5. Decoration
renovation
4.2. Renovate
square
4.1. Install
temporary cover
vaults
4. Building and
renovation
3.2. Reinforce
nave pillars
3.1. Field
preparation
3. Field
preparation
Renovation of
Notre-Dame
Work breakdown structure (WBS): Renovation of Notre-Dame Cathedral
FIGURE 7-2
6.3. Monitor
spending
6.2. Secure
budget
6.1. Estimate
costs
6. Finances
7.2. Insurance
7.1. Compliance
7. Legal
23
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2%
4%
Project professionals
6%
Executives
8%
10%
12%
14%
Source: HBR Project Management Handbook Project Expert Survey, July 2020, N = 728; and HBR Project Management Handbook
Executive Survey, July 2020, N = 566
0%
Other
Lack of resources; projects are part-time activities done on
top of day-to-day responsibilities
Our culture is not agile enough; we still work very much in silos
Frequent changes in requirements (scope) and timelines
Lack of project management competencies
Too many projects
Poor definition of business case when starting projects
Poor accountability on project delivery
Hard to align different views around our key projects
Lack of senior management support
Projects rarely finish; hard to stop them when they drag on
for too long
Top challenges to implementing projects
FIGURE 7-3
16%
FIGURE 7-4
The traditional triple constraint
Scope
Quality
Time
Budget
24
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25
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2.2
Belts
2.3 Header
panel
2.4
Windows
1.3
Alternator
1.4
Piston
2.1
Seats
2.0
Interior
1.2
Camshaft
1.1
Cylinders
1.0
Engine
Car
3.3
Steering
3.2
Brakes
3.1
Accelerator
3.0
Controls
4.0
Chassis
Chassis
Spoilers
Doors
Windshields
Spotlights
Controls
Accelerator
Breaks
Steering
Speedometer
1.0
1.1
1.2
1.3
1.4
1.0
1.1
1.2
1.3
1.4
Interior
Seats
Seat belts
Header panel
Windows
Engine
Cylinders
Camshaft
Alternator
Piston
Activity
1.0
1.1
1.2
1.3
1.4
1.0
1.1
1.2
1.3
1.4
#
From work breakdown structure (WBS) to Gantt chart
FIGURE 7-5
Jun
2022
Jul
2022
Aug
2022
Sep
2022
Oct
2022
FIGURE 7-6
Time’s relationship to risk
Cost of risk
Initiation
Planning
Implementation
Closing
Time
26
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FIG URE 7-7
Risk management matrix
Insignificant
Minor
Moderate
Major
Severe
Probability
Almost certain
Likely
Possible
Unlikely
Rare
Impact
Low importance
Medium importance
High importance
Extreme importance
27
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FIGURE 8-1
Project Canvas: The Boeing 777
Foundation
Purpose
Build one of the
most advanced
aircrafts in
history
People
Creation
Sponsorship
Stakeholders
Alan Mulally
100% dedicated
to the project
Boeing Co,
board,
shareholders,
employees,
pilots, suppliers,
airlines,
passengers, etc.
Deliverables
Designed
entirely by
computer,
powered by
lighter twin
engines,
301 to 368
passengers
Plan
Waterfall
approach
with some
agile; kickoff
October 1990;
first flight
June 1994
Resources
Change
Weekly review
meetings open
to all;
transparency:
promote
escalation of
concerns; top
priority for
Boeing;
financial risk
sharing with
clients and
suppliers
Clear
governance;
10,000
individuals
worked on the
project
Investment
Benefits
Estimated budget of more than
$6 billion;
fully dedicated resources
20% more fuel-efficient
aircraft;
reduce develop time;
increase market share
28
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FIGURE 8-2
Project Canvas: The reconstruction of Notre-Dame Cathedral
Foundation
Purpose
Rebuild
unparalleled
French landmark;
restore one of
God’s most
magnificent
churches
People
Sponsorship
Minister of
culture,
Franck Riester;
President
Emmanuel
Macron
Creation
Stakeholders
Deliverables
President
Macron, French
government,
Parisians, the
church, local
businesses,
donors, tourists,
etc.
Rebuild
according to
traditional
techniques;
reinstate the
shape and
character of the
previous spire
Resources
Plan
Waterfall
approach:
five phases;
inauguration
on April 16,
2024
Change
Almost
no resistance
to the project;
massive
communication
(TV, social
media, other
media) on the
progress
Task Force
Notre-Dame;
chief architect
of France’s
monuments
Investment
Benefits
Budget between €700 million
and €800 million in total
14 million visitors annually;
approximately €300 million
direct revenues and around
€1 billion indirect economic
benefits
29
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FIGURE 8-3
Project Canvas: Building a wine website using an agile approach
Foundation
Purpose
Offer a
customer-centric
platform for
people who
want to discover
wine
People
Sponsorship
CEO will
sponsor the
project, 1 day
per week
Creation
Stakeholders
Wine producers,
local wine
organizations,
oenology
schools,
regulators, wine
resellers
Deliverables
Product
backlog
(features)
broken
down into
three phases
Resources
Plan
Agile
approach:
MVP launch
March 2021;
completion
end of 2022
Change
No resistance;
create
awareness;
engage key
stakeholders
Five full-time
resources, all
experienced
and 100%
dedicated
Investment
Benefits
Investment estimation
€30,000
€20,000 profit year 1;
€100,000 end year 2
30
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FIGURE 9-1
Project training among executives
Other
5%
Project
management
training
48%
No formal training
34%
Specific
sponsorship
training 13%
Source: HBR Project Management Handbook Executive Survey, July 2020, N = 566
31
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FIGURE 12-1
Sustainable project management: Broader horizon and larger context
Scope/context
Global society
Sustainable
project management
Local society
Stakeholders
Modern
project management
Organization/
company
Traditional
project
management
Project
Project
manager
Project
phase
Project
delivery
Exploration &
management
My
generation
Next
generation
Time horizon
Source: J. Van den Brink, “Duurzaam projectmanagement: verder kijken dan je project lang is”
[Sustainable project management: looking beyond the project], Projectie 4 (2009). Used with permission.
32
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Appendix
The Benefits Card
The benefits card will help both the executive sponsor and the project
manager identify the main benefits and key impacts of their projects. As
mentioned earlier, each project will bring different benefits to different
stakeholders. Project leaders must identify each major stakeholder’s expectations of the main benefits of the project early in the process. After formally validating the benefits at the project steering committee, they should
agree on the top three benefits for the project.
33
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Automation
Technology
Redundancies
Reorganizations
Outsourcing
Other
Efficiency increases
Increased production outputs
Automation
Technology
Default reductions
Quality improvements
Other
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏ Contribution to strategy
❏ Other
Reduce costs
Productivity gains
Strategic objectives
Higher production volume
Greater margins
Reduced waste
Lower volume of rework
Greater customer responsiveness
FTE (full-time employee) savings
Faster processes
Greater accuracy
Reduced fraud
Market leader
Technology leader
Access to new markets
Introduction of new products or
services
❏ Potential to transform or pivot the
business
❏ Improved resilience
❏ Greater capacity for change
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
❏
New product
New service
New channels
Acquisitions
Expansions
Other
❏
❏
❏
❏
❏
❏
Increase revenues
Increased sales
Increased subscriptions
Higher price points
Increased margin
Example
Description
Benefit
Percentage; financial; reputation
Percentage
FTE head count; financial
Percentage; financial
Measure
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❏
❏
❏
❏
❏
❏
❏ Greater autonomy of
decision-making
❏ Greater production capability
❏ Greater purchasing power
❏ Greater economies of scale
❏ Greater capacity for, and speed of,
change
❏ Greater resilience
❏ Greater productivity
❏ Greater employee satisfaction
❏ Better strategy
❏ Greater capacity for innovation
❏ Increased capacity for risk
❏ Improved communication
transparency
❏ Customer or user attitude toward
the business or its products
❏ Other
❏ Portion of a market controlled by
company or product
❏ Other
❏ Values and beliefs associated with
the organization that drive employee and stakeholder behavior
❏ Other
Customer satisfaction and
experience
Market share
Organizational culture
Improved corporate reputation
Improved competitiveness
Greater resilience
Greater employee satisfaction
Higher price points
Greater repeat business
Improved corporate reputation
Reduced strategic risk
Increased resilience
Greater capacity for change
❏
❏
❏
❏
❏ Economic, social, and environmental resilience of the organization,
its products, and its projects or
programs
❏ Other
Sustainability
Increased resilience
Increased competitiveness
Increased value and status
Increased contract leverage
Reduced costs of contracting
Greater employee satisfaction
❏
❏
❏
❏
❏
❏
❏ Stakeholder view of business fitness
❏ Regulator view of business probity
❏ Other
Reputation and compliance
continued
Share price, market and regulator
reports; employee satisfaction;
volume and value of contracts; project
performance and benefit realization
Percentage, financial
Percentage; net promoter score;
customer conversion rates and churn
rates; volume and value of contracts
Percentage; financial; share value
Share price; market reports; regulator
reports; internal audit reports;
contract terms
36
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Example
❏ Improved employer brand
engagement
❏ Improved reputation
❏ Better employee mental and
physical health
❏ Reduced level of accidents or near
misses
❏ Improved productivity
❏ Increased capacity for innovation
and risk
❏ Reduced recruitment costs
❏ Improved supplier and customer
relationships
❏ Greater resilience
❏ Improved productivity
❏ Increased capacity for innovation
and risk
❏ Reduced costs of rework and
wastage
❏ Greater project maturity
❏ More transparent communication
Description
❏ Employee attitude to work and organizational environment
❏ Other
❏ Employee commitment to the success of employer’s business
❏ Other
Benefit
Employee satisfaction
Employee engagement
Employee engagement survey;
productivity per employee
Financial (costs of insurance,
recruitment, and employee absences);
employee satisfaction surveys
Measure
The benefits card can also be used as a tracker and communication
tool when the project is reporting on benefit progress.
Benefit
Owner
Date
Category
Alignment
Benefit description as easily
understood and
as quantifiable
as possible
Person accountable to deliver
the benefit
Date by which
the benefit is
expected to be
realized
Area of the business to which
the benefits will
contribute—for
example, revenue increase
Level of consensus about
the benefit
among the key
stakeholders
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