The Project Manager's MBA: How to Translate Project Decisions into Business Success

Citation

McNeil, B. (2001), "The Project Manager's MBA: How to Translate Project Decisions into Business Success", The Bottom Line, Vol. 14 No. 4. https://doi.org/10.1108/bl.2001.17014dae.003

The Project Manager's MBA: How to Translate Project Decisions into Business Success

The Project Manager's MBA: How to Translate Project Decisions into Business Success

Cohen, D.J. and Graham, R.J.Jossey-BassSan Francisco, CA2001 Keywords: Management, Project management

The Project Manager's MBA: How to Translate Project Decisions into Business Success provides an excellent overview of the role of the project manager in today's dynamic business environment. Although written primarily for for-profit business projects, the book is useful for those in non-profit and government organizations, as well. The text explains basic business concepts and principles, connects them to the changing role of project managers and shows how project managers must master them for the success of their projects. Skills necessary for project managers now include not only operational skills, but also competence in finance and accounting, business strategy, knowledge of internal operations, marketing, and personnel and human relations. Project managers, project team members, and managers of project managers will find this a very useful book.

Nine chapters make up the main content of the book. Each chapter opens with a business systems diagram opposite the first page, with the aspects pertinent to that chapter's text highlighted. For those with less familiarity with project management, this diagram provides a useful guide to navigating the text. The diagram is repeated at the beginning of each chapter and, while this may be repetitive for experienced project managers, it should prove very helpful for those new to project management. Each chapter closes with examples of project decision making.

Chapter 1 introduces the business system approach to project management, stressing moving from project focus to organizational focus. Readers are introduced to an online calculator that can be used to gain a better understanding of the projects detailed in the book. Chapter 2 provides a review of the essential principles in business accounting and finance. These principles are particularly important for project managers in today's changing business environment, when project managers need a broader understanding of the whole business. Sections on cash cycle, financing phase, investing phase, operating phase, returning phase, cash management, financial reports, balance-sheets, income statements, and cash flow statements are included. Chapter 3 deals with strategy and the importance for project managers to understand the company's strategy to succeed in the rapidly changing business environment. A section on directed strategy's implications for projects and project managers is particularly helpful, and includes questions that project managers need to answer when developing a business case to submit for project approval. Chapter 4 includes the project management effects on creation of economic value. Chapter 5 focuses on cash flow and revenue. Chapter 6 examines costs and the factors that influence how much it costs to produce the revenue earned. Chapter 7 explains in frank and straightforward language why project managers must be knowledgeable and concerned about finance. Financial concepts expand on those in Chapter 2. Chapter 8 focuses on uses for the Business Systems Calculator, for both project managers and other managers. Included are 11 figures, which help to explain the examples in the text.

Of particular note is the Appendix that follows the main chapters. In the Appendix, the authors have provided an outline project managers can use to develop a business case for a project. Cross-references are included in the outline, to direct project managers to the appropriate chapter in the book. Other features include: a helpful glossary of over 160 terms used in the book, including words and phrases ranging from the familiar accounting and general business terms to the specialty and technical, such as:

• •

  account balance;

• •

  common size analysis;

• •

  economic value added (EVA); and

• •

  weighted average cost of capital (WACC).

Also included is a list of references and a useful 12-page index. It is a very useful addition to the literature on project management.

Authors Cohen and Graham are well qualified. Dennis J. Cohen is currently senior vice president and managing director of the Project Management Practice at Strategic Management Group. Robert J. Graham is an independent management consultant in the areas of project management and organizational change and is a senior consultant with the Strategic Management Group.

Both Cohen and Graham were previously involved with the Wharton School's Management and Behavioral Science Center. This book will be useful for project managers and their managers, and could be used as a text for business and engineering courses at the graduate level.

Beth McNeilAssistant Dean of Libraries, University of Nebraska – Lincoln, Lincoln, Nebraska, USA