Breakthrough Technology Project Management 2nd ed Edition Bennet P. Lientz
Breakthrough Technology Project Management 2nd ed Edition Bennet P. Lientz
Breakthrough Technology Project Management 2nd ed Edition Bennet P. Lientz
Breakthrough Technology Project Management 2nd ed Edition Bennet P. Lientz
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5. Breakthrough Technology Project Management 2nd ed
Edition Bennet P. Lientz Digital Instant Download
Author(s): Bennet P. Lientz, Kathryn P. Rea
ISBN(s): 9780124499683, 0124499686
Edition: 2nd ed
File Details: PDF, 6.92 MB
Year: 2001
Language: english
7. E-BusinessSolutions
Bennet P. Lientz and Kathryn P. Rea
Series Editors
The list of titles in this series includes:
Start Right in E-Business
Dynamic E-Business ImplementationManagement
BreakthroughTechnology Project Management,2nd ed.
Grow Your E-Business for Success
8. Breakthrough
Technology
Project
Management
Second Edition
Bennet P. Lientz
John E. Anderson School of Management
University of California,Los Angeles
Kathryn P. Rea
TheConsulting Edge, Inc.
Beuerly Hills, California
E I N E M A N N
l
P
=
-
=
San Diego Sun Francisco New York Boston London Sydney Tokyo
9. Butterworth-Heinemannis an imprint of ElsevierScience.
Copyright O 2001,2000 by ElsevierScience (USA)
All rights reserved.
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Printedin the United States of America
10. Contents
Preface xvii
I About the Authors xxv
I Part I
Improving
P
L
-
-
L
.
.
- I
the roject Manage
Lrlayrer I
Introduction
Project Management Concepts 3
Definitions 3
DifferencesbetweenStandard and IT Projects 5
Trends in Business 6
Trends in Technology 7
Trends in Systems 7
Trends in ProjectManagement 8
Common Systems Project Management Myths 9
Why IT Projects Fail 11
Traditional Project Process 11
Twenty-Six Reasons That Systems Projects Fail 12
Guidelines forSuccess 15
Modem Project Management Process 15
Why Projects Succeed 16
Organization of the Book 17
E-BusinessLessons Learned 17
What to Do Next 18
Summary 19
11. vi Contents
Chapter 2
Developing Your Project Management
Process and Strategy
Introduction 21
Approach 22
Step 1: Establish Basic Components of the Project
Management Process 23
Step 2: Define Critical Business Processes and Activities as Well as the
System Architectureand Process Plans 26
Step 3: Review All Current Projects and Associate Them with the
Process Plans and Architecture 26
Step 4: Develop Project Conceptsfor New Project Ideas
and Current Projects 27
Step 5: Analyze and Relate All Project Concepts 28
Step 6: Determine Which Projects Will Be Approved
for Implementation 28
Step 7: Develop Detailed Project Plans for Approved Projects
and Begin Work 29
Step 8: Manage, Monitor, and Report on the Project Slate 29
Step 9: Develop and ImplementCriteria for Project Ending
and Termination 30
Transition to the New Project Management Process 30
Marketingthe New Project Management Process 31
Example: Beaumont Insurance 33
E-Business Lessons Learned 35
Guidelines 36
What to Do Next 37
Summary 37
Chapter 3
Managing Multiple Projects and the Project Slate
Introduction 39
Approach 41
Categoriesof Interdependence 41
Assessment of Current Projects 43
Planning across Multiple Projects 47
Setting Priorities and the Project Slate 47
Example: Astro Bank 52
12. Contents
E-BusinessLessons Learned 54
Guidelines 54
What to Do Next 55
Summary 55
Part I1
Developing Your Project Plans
Chapter 4
The Project Concept
Introduction 59
Approach 60
What Is in the Project Concept? 60
Conceiving of a Project 61
Step 1: Define Alternativesfor the Project Objectives 64
Step 2: Determine Alternativesfor the Scope of the Project 65
Step 3: Prepare AlternativeSchedules,Costs, and Benefits 68
Step 4: Define the Role for the Alternatives 69
Step 5: Analyze the Results of Steps 1-4 and Determinethe
Recommended Project Concept 70
Step 6: Identify Initial Issues 70
Step 7: Obtain Management Feedback and Commitment 71
Example: Astro Bank 72
E-Business Lessons Learned 74
Guidelines 74
What to Do Next 75
Summary 75
Chapter 5
The Right Project Leader
Introduction 77
Approach 78
What Should You Look for in a Project Leader? 78
How Do You Find and Select Project Managers? 80
What Are the Duties of a Modern Project Leader? 81
How Do the Duties Shift during the Life of the Project? 85
vii
13. Contents
What Does a Project Leader Need to Know? 85
How Do You Become a Project Leader? 86
What Is the Role of a Superproject Leader? 86
How Do the Responsibilities of a Manager of a Small Systems Project
Differ from That of a Large Project? 87
What Is the Role of the Project Coordinator? 88
What Are the Role and Suitabilityof the Project Office? 88
Can a Project Leader Manage Multiple Projects? 89
Sources of Failure for a Project Leader 90
Success for a Project Leader 91
How Do You Measure a Project Leader? 92
Examplesof Project Leaders 92
Project Leaders in Manufacturing 92
General Systems Project Leader 93
E-Business Lessons Learned 93
Guidelines 94
What to Do Next 94
Summary 95
Chapter 6
Building the Project Team
Introduction 97
Approach 99
What Are the Responsibilities of Team Members? 99
What Skills Do You Require for the Team-
by Phase? 99
When Should You Form the Team? 100
How Do You Get Team Members? 101
Should You Use Consultants? 101
How Should You Hire and Direct Consultants? 103
Team Dynamics 104
Sharing Team Members between Projects 105
Common Team Problems 106
ManagingTeams 108
How Do You Keep Team Members? 109
How Do You Discharge and Replace Team Members? 109
Example: Astro Bank 110
E-BusinessLessons Learned 111
Guidelines 111
What to Do Next 113
Summary 113
14. Contents
Chapter 7
Developing the Project Plan
Introduction 115
Approach 116
What Information Must Be Managed? 116
What Methods and Tools Will Be Employed for Project
Management? 116
What Methods and Tools Will Be Used Directly in the Project? 119
How Do Templates, Issues, LessonsLearned,
and the Plan Link? 120
How Should You Develop ProjectTemplates? 121
How Do You Establish an Effective and Flexible Task List? 121
How Should You Assign Resources? 123
How Do You Relate Areas of Risk to the Plan? 123
How Should You EstablishDates and Durations? 124
How Should You Link Projects? 124
How Do You Create the Project Budget? 125
How Do You DetermineBenefits? 128
How Should You EstablishMultiple Projects? 128
How Do You Establish a Baseline Plan? 128
How Do You Sell the Plan? 129
How Do You Fix an Existing Schedule? 130
Example: ElectronicCommerce 131
E-Business LessonsLearned 131
Guidelines 132
What to Do Next 132
Summary 133
Part I11
Managing p
r
o
*
Chapter 8
Effective Project Tracking and Coordination
Introduction 137
Approach 138
How Do You Identify and ManageIssues? 138
How Do You Measure Open Issues? 139
15. Contents
What General Issues AnalysisDo You Perform? 140
How Do You Measure the Work in a Systems
and Technology Project? 141
How Do You Analyze a Project? 143
How Do You Perform Budget versus Actual Analysis? 146
How Do You Track MultipleProjects? 146
How Should You CommunicateEffectively
with Management? 147
How Do You Cope with a Project Crisis? 152
How Can You EffectivelyEmploy Lessons Learned? 152
Example: Beaumont Insurance 153
E-Business Lessons Learned 153
Guidelines 154
What to Do Next 155
Summary 155
Chapter9
Software Development
Introduction 157
Modem versus Traditional Development 157
Methods and Tools 158
Approach 159
Requirementsfor a Development Approach 159
Steps in a Development Approach 160
Step 1: Understand the Current Business Process
and Systems 161
Step 2: Define the New or Modified Business Process 163
Step 3: Determine the Benefits, User Requirements,
and System Requirements 165
Step 4: Design the New Transactions, System,
and Interfaces 168
Step 5: Develop, Integrate, and Test the System 169
Step 6: PrepareOperations Manuals, TrainingMaterials, and
Operations Procedures 170
Step 7: Convert and Set Up the System and Process
for Operation 170
Step 8: Convert to the New Process and System 171
Example: Arcadia Health Services 171
E-Business Lessons Learned 173
Guidelines 173
16. Contents
What to Do Next 174
Summary 174
Chapter 10
Operations, Maintenance, and Enhancement
Introduction 175
Approach 177
A Proactive Management Approach 177
Step 1: Measure Information Systems Allocations 179
Step 2: Develop Process Plans for Key Processes 181
Step 3: Create a Strategic Systems Plan 183
Step 4: Construct Departmental Systems Plans 184
Step 5: Set the Slate of Work 184
Step 6: Follow Through on the Work 188
Example: Rapid Energy Company 190
E-BusinessLessons Learned 190
Guidelines 191
What to Do Next 191
Summary 192
Chapter 1
1
Software Packages
Introduction 193
Approach 195
Steps in Implementation 195
Step 1: Assess Your Current Systems, Processes,
and Technology 196
Step 2: EvaluateSoftwarePackages and
Support Requirements 198
Step 3: Select the Package and Negotiate the Contract
Step 4: Install the Software and Conduct a Pilot Project
Step 5: Undertake Full-ScaleImplementation 209
Examples 210
South County-
A Near Disaster 210
Vixen Manufacturing 211
E-BusinessLessons Learned 212
Guidelines 212
What to Do Next 213
Summary 213
17. xii Contents
Chapter 12
TechnologyProjects
Introduction 215
Approach 216
Your Information Systems and Technology Architecture 216
Risks in TechnologyProjects 218
Costs and Benefits of TechnologyProjects 219
Steps in a TechnologyProject 220
Step 1: DetermineTechnology Opportunities 221
Step 2: Define the Long-Term Architecture 222
Step 3: Develop a TechnologyProject Strategy 223
Step 4: Evaluate and Select Products 225
Step 5: Develop the Project Plan 226
Step 6: Implement the Technology 227
Step 7: Measurethe Project Results 227
ThingsThat Go Wrong and What to Do about Them 228
Examples 230
Electronic Commerce 230
Groupware 230
IntranetIInternet 231
E-Business Lessons Learned 231
Guidelines 232
What to Do Next 232
Summary 233
Part IV
How to Successfully Address Project Issues
Chapter13
Business Issues
Introduction 237
Issues 237
Issue: The Business Unit Changes
Requirements Frequently 237
Issue: The Business Unit Does Not Provide Good People
for the Project 239
Issue: The Business Unit Is Unwilling to Change the
BusinessProcess 240
18. Contents
Issue: Several Business Units Cannot Agree
among Themselves 241
Issue: The Business Unit Cannot Consistently
Resolve Issues 242
Issue: The Business Unit Staff Members Do Not Know
the Business Process 242
Issue: The Existing Business Process Is in Poor Condition 243
Issue: MiddleLevel Business Unit Management Resists Change
and the System 244
Issue: The Business Unit Attempts to Dominate
the Project 245
Issue: The BusinessUnit View Does Not Fit with That of Upper
Management or the Industry 246
Issue: Business Unit Managers and Staff Lack
Technical Knowledge 247
Issue: Business Unit Management Is Replaced 248
Issue: The BusinessUnit Has No Interest in the Project 248
Issue: Other Work or Projects Have Higher Priority for the Business
Unit Than Your Project Does 249
Issue: The Business Unit Has ExistingTechnologyThat Conflicts with
That of the Project 250
What to Do Next 251
Summary 251
Chapter14
Human ResourceIssues
Introduction 253
Issues 253
Issue: Turnoverof Project Team Members 253
Issue: Lack of Commitment 256
Issue: Lack of Knowledge 257
Issue: Team Members Are Inflexible 258
Issue: Team Members Resist Project Management 260
Issue: Conflicts within the Team 260
Issue: Team Members Spend Too Much Time on the
Wrong Tasks 261
Issue: Team Members Are Overcommitted to Projects 262
Issue: There Is a Personnel Gap-Missing Skills 263
Issue: A Team Member Is Reluctant to Leave the Project 264
Issue: Team Members Spend Too Much Time
in Communications 264
19. xiv Contents
Issue: A Team Member Resists Learning New Skills 265
Issue: A Team Member Leaves, Producing a Gap 267
Issue: The Quality of a Team Member's Work Is Inadequate 268
Issue: There Is Conflict between Junior and Senior Staff 269
Issue: The New Team Member Does Not Fit 270
What to Do Next 271
Chapter 15
Management Issues
Introduction 273
Issues 273
Issue: ManagementChanges Direction of the Project 273
Issue: ManagementLoses Interest 274
Issue: Key Manager Who Supported the Project Leaves 275
Issue: Management ExpandsScope 276
Issue: There Is No Will to Allocate Resources 276
Issue: Management Rules by Consensus 277
Issue: Management Locks onto Hot Topics 278
Issue: Management Adopts a Specific Packageand Jams It Down
Everyone's Throat 278
Issue: Management Listens Too Much to Consultants 279
Issue: Management Wants to Change E-Business Priorities 280
Issue: MarketingDefines New E-BusinessInitiatives
with ManagementSupport 281
What to Do Next 282
Summary 282
Chapter 16
Technical Issues
Introduction 283
Issues 283
Issue: Legacy System Support Is Too Resource Intensive 283
Issue: There Is a Lack of Available Training for Staff 284
Issue: The Technology Requires a Leaming Curve That Is
Too Long 285
Issue: There Is a Lack of Experienceand Knowledge
of the Technology 286
Issue: The Technology Does Not Work 287
Issue: Ordering and Delivery of the Technology Are Delayed 288
20. Contents
Issue: A New Version of the TechnologyWill Be
AvailableSoon 289
Issue: There Is a Lack of Support for Interfaces to
ExistingTechnology 290
Issue: There Is a Gap in the Technology 290
Issue: The Pilot Results from the TechnologyWere
Not Successful 291
Issue: The Performanceof the Technology Is Not Satisfactory 292
Issue: Features Are Missing 293
Issue: The Technologyin Use Is Obsolete 294
Issue: The TechnologyIs Not Scalable to Handle
the Workload 295
Issue: The Wrong Directionin TechnologyWas Taken 296
What to Do Next 297
Summary 297
Chapter17
Vendor and Consultant Issues
Introduction 299
Issues 299
Issue: There Is a Lack of Support from the Vendor 299
Issue: The Vendor Attempts to Take Over the Project 301
Issue: The Vendor Delivers Something Differentfrom What
Was Promised 302
Issue: The Vendor Provides the Wrong Staff 303
Issue: The Vendor Takes a Different Business Direction,
Leaving You Adrift 304
Issue: The Vendor's Staff Members Are Absent from the Project
Too Much 305
Issue: The Vendor's Work Is of Poor Quality 306
Issue: The Vendor's Skills Are Insufficient,Producing a Gap 306
Issue: The Vendor's Staff Members Seem to Remain
on the Project Forever 307
Issue: There Is No Committed Schedulefrom the Vendor 308
Issue: There Is SubstantialTurnover of Vendor Staff Assigned
to the Project 309
Issue: There Are Delays in Vendor Responses to Problems,Affecting
the Project 310
Issue: The Vendor's Staff Members Are Locked into Their Own
Methods, Which Are Incompatiblewith the Project 311
Issue: The Project Is Overdependent on the Vendor 312
21. xvi
Issue: Vendors Don't Cooperateamong Themselves 312
Issue: Vendor Subcontracts Out the Work
and Then Disappears 313
Issue: Vendor Uses What It Did on Your Project
with Its Next Client 314
Issue: Vendor Turns Over Work ProductsThat Are
Not Usable 315
What to Do Next 315
Summary 316
Chapter18
How to Implement Improved Project Management
Introduction 317
Approach 317
Quick Hit ImplementationSteps 317
Intermediate-Term Actions 320
Long-Term Steps 321
Points of PotentialResistance and What to Do 323
Summary 324
Bibliography 325
Web Sites 327
Appendix 1: The Magic Cross Reference 329
Appendix 2: Issues Checklist 333
Index 337
Contents
22. Preface
INFORMATIONTECHNOLOGY (IT)PROJECTS
FAIL TOO OFTEN
Studies repeatedly point out that 30 to 45% of systems projects fail prior to
completion.Over half of all systems projectsoverrun their budgets and schedules
by 200% or more. Combined costs of failure and overruns total in the hundreds of
billions of dollars. Failures and problems continue, despite improved tools and
technology.Data also indicatethat the failed projectswere viewed as critically im-
portant by management.
FAILURE STATISTICS ARE STAGGERING
The resultsof severalsurveyswere published in Computerworld,a leadingsys-
tems magazine. Here are some of their results:
Failed systems projectscost more than $100 billion per year.
One of every two projectsoverruns its budget by 180% or more.
A survey of what was missing in the project management process indicated
the following:
Project office--42%
Integrated methods--41%
Trainingand mentoring-38%
Policies and procedures-35%
Implementationplans-23%
Executive support-22%
xvii
23. WHY ARE IT PROJECTSDIFFERENT
FROM PROJECTSOF THE PAST?
Many of the methods and techniques of the past are still being used today,
even though the technology, methods, management, and entire environmenthave
changed.Some of the differences are listed in the following table.
Factor Traditional Modem
Focus
Managementattention
Staffinglresources
Project
Staffing
Milestones
Project status
Large projects
Small projects
Risk
Lessonslearned
Managementexpectations
IT projects
Single project
Critical path
Full timeldedicated
Side by side to business
Best people
Assume that they can be reviewed
Budget versus actual;% complete
Divide by organization
Often not treatedas project
Often treatedin a fuzzy way
Each project treated as unique so
that lessons learned are not
stressed
Moderate
Critical to departments
Multipleprojects
Management;critical path
focusingon risk and issues
Part-timelhll-time mix,shared
Processesand systems are
linked
Average peoplewith energy
Reviews must be selective due
to time and resources
Unresolved issues; future tasks
with risk and issues
Divide by risk
Includeas projects
Treated tangibly through issues
Major emphasison lessons
learned
High
Critical to the enterprise
There is a need to update the project managementapproach to reflect the modem
environment.
Systems and technology implementationand support are complex and involve
many elements, necessitatingplanning and project management. Managementfor
these projects is different from that for some standard projects in industries such
as construction and engineering.The projects often involve new technology with
which the project team is unfamiliar.The projects includeinterfaces with existing
systems and other,incompatibletechnologies. Integrationis often required. Given
that many peopletreat softwaredevelopment and programming as an art,it is easy
to see why systems projectsbecomeeven more complex. Nor are the requirements
for the systems stable. Business, technology, and externallygenerated changes can
arise in the middle of the project. Systems projects require extensivecooperation
between business units, informationtechnology,and management.
Therefore, it is not surprising that half of client-server projects fail or that al-
most as many reengineering projects suffer the same fate. Managers at more than
60%of the firms in one survey thought that they had implemented purchased soft-
ware packages incorrectly and had achieved little or no benefit. Firms indicatethat
when afailureoccurs, the direct lossescan be in the millions of dollarsand the total
24. Preface xix
indirect losses in business are often much more (because the f
i
r
m was depending
on the results of the completed projects for revenue or for cost reductions).
E-BUSINESS FAILURE IS SIGNIFICANT
There is no doubt thate-businessis a majorforceand trend for theearly 21stcen-
tury.The benefits of e-businessare well known in all of the media. However, many
don't want to discussthe dark side---business failures.Most of these are not pub-
licized. After all, what would happen to a company's stock price if the failure were
widely known?Some of the causes of e-business failure are the following:
E-business implementation is treated like a traditionalproject-a bad idea.
The scope of the e-business effort is defined as IT only. Business process
and organizational change are not included.
There is an inadequateprovision for change in direction.The project is in-
flexible to change.
This book addresses these issues and more. Most chapters include a section
with e-business guidelines.
WHY DO MANY TECHNOLOGYPROJECTSFAIL?
Why do so many technologyand systems fail?Why don't people learnfrom their
mistakes and those of others? Complexity is part of the answer. Also, people get
caught upin theirwork.They movefromoneprojector piece of workto thenext. Al-
though they continue to use many of the same tools, they do not gather or apply
lessons learned. Werethis notenough,managementand thebusinessdependon tech-
nology today as never before. Technologiesnot only must be implemented correctly
but alsomust be integrated. Thebarsof standards and expectations have been raised.
Failure also occurs because people manage technology projects the same way
they manage other projects. However, technology projects are different. The dura-
tion of the project can be long. During that time, the technology advancesand can
affect the project. The requirementsof the businesscan change. Typically, technol-
ogy projectsare not carried out from scratch. The new project must always be inte-
gratedinto thefabricof thecurrent systems and technology-called thearchitecture
in this book. As part of the project, the projectteam members may have to learn the
technology as they go. These characteristicsare different from what oneencounters
when building bridges, launching new products, or undertaking other, more com-
mon projects.On the other hand, many of the lessonslearnedfrom the project man-
agement can be applied to systems and technology projects.
Another reason for failure is that projects are managed singly-like disjoint
construction projects. This does not work for technology because (1)the projects
25. xx Preface
are often interdependent,(2) many projects depend on the same technology and
resources, and (3) issues that cross many projects are resolved in contradictoryor
conflicting ways between projects.A fundamentaltheme of this book is that tech-
nology projectsmust be managed as a whole, not as individualprojects.
WHAT ARE THE BENEFITS OF PROJECTSUCCESS?
With all of this t
a
l
k about failure, why do projects at all? There are many rea-
sons, includingcomplexity,duration of the work, and the need for organizationof
the work. If you are successful in better managing single and multiple projects,
experienceand lessons learned point to the following benefits:
There are greater benefits to the business, becausethe purpose and scope
are set and supported to providetangible business benefits.
Risk can be minimized and managed better because all projectsare being
managed collectively as well as individually.
Resources are better managed, utilization increases,and critical resources
can be spread across multiple projects.
There are fewer surprises in project work and schedules, allowing more
predictability.
You get more productivity and results from investmentin technology and
systems.
PURPOSE AND SCOPE OF THE BOOK
The purposeof this book is to answer the following questions:
How can the overall technology project management process be improved?
Which systems projects should be given resources and approved for action?
How can you better manage all systems and technology projectstogether?
How can individualprojects be better managed and more successful?
What are specific guidelines for managing different types of projects?
The scope of the book includesthese and other technology areas and addresses
these questions:
What projects should be approved?
How do you formulate and start projectseffectively?
How do you manage single and multiple projects?
How do you identify, analyze, and address specific project issues?
How do you communicateeffectively with management, team members,
staff, and vendors to obtain results?
29. Whiskers,
of bat, 256;
of cat, 246, 250;
of rabbit, 217
White, mould, 207, 208; of egg, 283, 285
Wild oat, 133, 136
Willow, 150; fruit of, 171, 173
Windhover, 329, 331
Wind-sown seed, 172
Wing-covers,
of cockroach, 350, 354;
of beetles, 358, 359, 362
Winged seeds, 174
Wings,
of bat, 257;
of cockroach, 350, 353;
of pea flower, 100, 102;
of pigeon, 266, 270, 273
Wood 70, 71, 72;
avens, fruit of, 174, 177;
louse, 377
Wool, 257, 258
“Woolly bear,” 364, 369
Worm castings, 384, 386
Worms, 383
Yellowoat Grass, 137
Yolk of hen’s egg, 283, 285
Yorkshire fog, 125, 132, 136
GLASGOW: PRINTED AT THE UNIVERSITY PRESS
BY ROBERT MACLEHOSE AND CO. LTD.
30. A HEALTH READER
BY
C. E. SHELLY, M.A., M.D., M.R.C.P.
CONSULTING MEDICAL OFFICER, HAILEYBURY COLLEGE
AND
E. STENHOUSE, B. Sc.
ASSOCIATE OF THE ROYAL COLLEGE OF SCIENCE, LONDON
Globe 8vo.
31. BOOK I. For children of 9 to 10 years of age. 160 pp. 1s.
BOOK II. For children of 10 to 12 years of age. 204 pp. 1s. 4d.
BOOK III. For children of 12 to 14 years of age. [In the Press.
SOME PRESS OPINIONS.
BOOK I.
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presented in the same lucid and simple
style, so that very young readers can
understand them. The book will carry
health and happiness with it, so that we
hope it will find its way into many a
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Head Teacher.—“Full of good advice
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lessons: the subject matter of each is
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Can only do good to those who read it.”
Educational News.—“It is
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information for the young people whom
it is meant to serve as a Class Reader....
A special word of praise is due to the
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32. teachers. It is simply written. Each
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