We present a projection-operator method to express the generalized nonlinear Schrödinger equation for pulse propagation in optical fibers, in terms of the pulse parameters, called collective variables, such as the pulse width, amplitude, chirp, and frequency. The collective variable (CV) equations of motion are derived by imposing a set of constraints on the CVs to minimize the soliton dressing during its propagation. The lowest-order approximation of this CV approach is shown to be equivalent to the variational Lagrangian method. Finally, we demonstrate the application of this CV theory for pulse propagation in dispersion-managed optical fiber links.