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Place the right people in the right roles at the right time with this essential guide
Project estimating, or project workforce planning, involves a systematic process of identifying and managing the key human resources required for efficient and effective completion of a project. This process necessarily balances a huge range of factors, from forecasting labor costs to managing team composition to incorporating relevant legislation and projecting the impact of artificial intelligence and market conditions. Effective workforce planning contributes to overall project success by ensuring that the right people are in the right roles at the right time.
Project Workforce Estimating: Best Practices for Project Managers offers a comprehensive overview of workforce planning, from foundational principles to advanced techniques. It offers a range of techniques and strategies that can be incorporated into planning for virtually any kind of project, along with detailed guidance to ensure accurate projections. Closely aligned with industry standards, it is a must-own for project managers looking to systematize a critical stage of project management.
Project Workforce Estimating: Best Practices for Project Managers readers will also find:
Project Workforce Estimating: Best Practices for Project Managers is ideal for project managers, business analysts and consultants, executives and senior managers, and HR professionals.
Harold Kerzner, PhD, is Senior Executive Director for Project Management at the International Institute for Learning, Inc. (IIL), a global learning solutions company offering professional training and consulting services worldwide. Dr. Kerzner's profound effect on the project management industry inspired IIL to establish, in coordination with PMI, the Kerzner International Project Manager of the Year Award, which is presented to a distinguished PMP® or global equivalent each year.
Al Zeitoun, PhD, PgMP, is a PMI Fellow and has over 30 years of global experience in program/project management and strategic change, leading operational excellence for large corporations. He brings decades of global experience with multi-billion-dollar industry-leading organizations. He has implemented digital transformation as a key to accelerating revenue growth and driving market dominance, while redefining internal cultures to embrace and champion new Ways of Working and innovation mindset across all levels of the organization. Dr. Zeitoun has taught, trained, and coached professionals worldwide.
Preface xi
About the Companion Website xiii
1 The Future of Project Workforce Planning 1
Navigating the World of Limited Resources 1
Principles of Project Workforce Management 3
Workforce Management in the External Environment 6
Workforce Management and Legislation 7
Professional Development for Project Teams 8
Labor Rate Structures 9
The Role of Contract and Temporary Staff 10
Impact of Artificial Intelligence on Future Workforce Planning 11
2 The Complexities of Project Workforce Estimating 17
Sources for Workforce Estimation 17
Factors Influencing Workforce Estimation 18
Stakeholder Involvement in Workforce Staffing 20
The Key to Workforce Estimating 21
Earned Value Management Systems and the PMBOK® Guide 22
Direct Versus Indirect Project Costs 23
Breaking Down the Overhead Costs 24
Forward Pricing Rates: Salary 25
Calculating Available Work Hours 26
Work Authorization Form 27
Project Pricing Overview 27
Validating Estimation Assumptions 28
The Fuzzy Front End 30
Project Portfolio Management 32
The Value Proposition Behind Project Portfolio Software Tools 33
3 Techniques for Estimating Project Workforce Needs 35
Overview of Workforce Estimation Methods 35
From Labor Hours to Labor Costs 36
Enhancing Estimation Accuracy 36
Estimating Costs Per Hour 37
Parametric Estimating 38
Analogy Estimating 38
Ground-up (Grassroots) Estimation 39
Applying Learning Curves in Workforce Estimation 40
Understanding the Learning Curve Effect 41
Estimating Management and Support Needs 42
Identifying Hidden Labor Costs 43
The Impact of Documentation on Labor Costs 44
The Need for Workforce Backup Plans 45
Common Challenges in Workforce Estimation 46
The Essential Value of Enterprise Risk Management 47
4 Monitoring Workforce Expenditures 49
Initiating Workforce Expenditure Tracking 49
Converting Work Hours into Financial Metrics 50
Balancing Hours and Dollars in Project Tracking 50
Analyzing Workforce Metrics 52
Analyzing Spending Trends 53
Example of Termination Liability 55
Oversight of Workforce Expenditures 55
Setting Reporting Intervals for Workforce Status 57
Documenting Challenges in Workforce Reporting 57
Optimizing the Business Models Around Workforce Strengths 58
5 Growth of Innovation Project Teams 61
The Need for Innovation and Creativity 61
Introduction to Innovation 62
Types of Innovation 64
Co-Creation Innovation 69
Defining Innovation Success and Failure 72
Value: The Missing Link 74
The Innovation Environment 74
The Innovation Culture 77
Idea Generation 78
Understanding Reward Systems 79
Resources Management 80
The Power of the Agile and Hybrid Approaches 83
Innovation Project Management Future Skills 84
Innovation Portfolio Management 87
The Need for Innovation Metrics 89
Extracting the Business Value 93
The Value of Prompt Engineering in Fostering Innovation 95
References 96
6 Designing the Future Workforce 101
Identifying Desired Team Competencies 101
Perspectives on Project Management 102
Strategies for Workforce Recruitment 103
Degrees of Permissiveness 103
Commitment and Expectation Management 104
Engaging High-Value Team Members 105
Addressing Underperformance 105
Non-Financial Incentives for Motivation 106
Celebrating Achievements from Plaques to Public Acknowledgments 106
The Role of Public Recognition 107
Alternative Non-Monetary Rewards 107
Timing and Patterns of Staffing Needs 109
The Role of Organizational Development 110
7 Advanced Topics in Workforce Planning 115
Budget Allocation and Adjustment 115
Securing Additional Project Funding 116
Global Workforce Estimation Challenges 116
Structuring Project Teams for Success 117
Incorporating Management Plan Data 118
Developing Contingency Plans for Workforce Management 119
The Benefits of Co-Located Teams 120
Project Life Cycle Costing Approaches 121
Techniques for Workforce Leveling 121
Advanced Workforce Leveling Strategies 122
Maturing an Inventory of Skills and Competencies 123
The Next Potential of AI in Enabling Workforce Planning 125
8 Case Studies in Workforce Planning 133
Dixon Aerospace 135
The Phoenix Project 137
Brenda's Dilemma 139
The Brainstorming Meeting 141
The Lack of Information 143
The Information Overflow Dilemma 145
The Impact of Assumptions 147
Nora's Dilemma 149
Managing Resources in Government Agencies 153
Kane Corporation 156
Skunk Works Project Management 160
Index 173
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