The Project Manager’s MBA

About the Author

Dennis J. Cohen and Robert J. Graham are the minds behind "The Project Manager's MBA." Dennis J. Cohen is the senior vice president and managing director of the Project Management Practice at Strategic Management Group, where he has honed his expertise in linking project management with business strategy. Robert J. Graham has developed a consulting practice in project management and is also the author of "Project Management as if People Mattered" and "Creating an Environment for Successful Projects." Their combined experience and knowledge offer invaluable insights into how project managers can align their work with broader business objectives to drive financial success.

Main Idea

"The Project Manager's MBA" redefines the role of a project manager in the modern business landscape. The authors argue that finishing projects on time and within budget is no longer sufficient. Project managers must now contribute to their company's financial goals by integrating business acumen into their project decisions. This book provides project managers with the necessary skills and knowledge to link project success to organizational success. It emphasizes taking an entrepreneurial approach, understanding the basics of accounting and finance, aligning projects with business strategy, managing for maximum results, understanding customer needs, and accurately calculating project costs.

Table of Contents

1. An Entrepreneurial Approach to Managing Projects
2. Accounting and Finance: You Must Know the Basics
3. Corporate Strategy: It's Your Business, Too
4. Increase Speed, Quality, and Value of Projects
5. Understand the Customer and the Competition
6. Calculate the Project Costs
7. Why Finance Matters for Project Managers
8. The Project Venture Development Process

An Entrepreneurial Approach to Managing Projects

"Make it fast. Make it good. Make it cheap." This project management folklore highlights the common demands of senior managers. Traditionally, project managers would respond with "Pick two," often prioritizing cost reduction. However, Cohen and Graham emphasize that reducing costs might not always lead to successful business results. More crucial is the need to increase the project's value, which involves developing a framework based on business concepts like Economic Value Added (EVA).

A successful project might create a high level of customer satisfaction, leading to more sales, which in turn generates cash flow to cover expenses, make a profit, and pay back the capital used. This process creates shareholder value. The authors argue that project managers should act like entrepreneurs, treating projects as businesses, and think like CEOs, viewing each project as part of the wider organization.

"Acting like an entrepreneur and thinking like a CEO means understanding how organizations create value for stakeholders—shareholders, customers, and the business team." - Dennis J. Cohen and Robert J. Graham

For shareholders, value is created when the business meets their expectations for the level of risk they have taken. For customers, value is created through satisfaction and subsequent sales. For the business team, value is created by managing projects that deliver necessary cash flow. This holistic approach requires project managers to consider their project's overall impact on the company's strategy and economic value.

Project Categories

Projects in organizations are often categorized into three groups: