EXECUTIVE PROJECT MANAGEMENTP D Rwelamila, PhD, PrCPM Professor of Project Management Graduate School of Business Leadership University of South Africa (UNISA) [email protected] Ph.: 011 6520236 Cell.: 0823783512 CHANGE TO PROJECT ORIENTED CONTEMPORARY ORGANISATIONS - strategic emphasis for projects & upper management influence Relevant Chapters: Graham & Englund (2004): Chapters 1,2 &3 CHANGE TO PROJECT ORIENTED CONTEMPORARY ORGANISATIONS - strategic emphasis for projects & upper management influence Project management is no longer a special need management - 7 forces! A Project part of a complex environment Drivers of change ” :Cleland & Ireland (2007) . Up until the last few years. were inclined to view project management as a special case management – a minor departure from the proper or expected ways of managing the organizations. particularly at the upper and senior levels. and project professionals to see themselves in ambiguous roles in supporting project initiatives. This caused PMs. Forewords (1) “We found that too many leaders and managers. many managers tended to tolerate rather than fully accept project as the way to enhance organizational effectiveness. functional managers. Too often. these managers failed to appreciate the strategic role that projects can play in the management of their organizations. in which the planning staff identifies and characterizes the project and then tosses it to an uninformed and uninvolved project management group that is supposed to complete the project. It requires more than the old "grenade over the wall" approach.” :Dinsmore (1999) 5 . Foreword (2) “Aligning the public organization’s (my emphasis) portfolio of projects to maximize their contributions to strategic objectives takes a highly coordinated effort. - everyone must be engaged with the project before charging ahead. Uncertainties and risks introduced by technological. The changing business landscape brings new challenges and opportunities. Globalization and technology continue to move forward with ever increasing speed. and regulatory factors are always present and can be an enormous challenge to organizing and managing the project teams. economic. Forewords (3) “The complexities and challenges faced byToyota are common in today’s business environment. ………. political. many of them involve effective team work as a threshold competency.” :Thamhain (2005) & Cleland & Ireland (2007) . social. Forewords (4) “There are huge opportunities for eliminating wasted time and effort in almost every project . In manufacturing. Toyota estimate that only 5% of activities actually add value. and more quickly next time!” :Jones (2003): Lean Enterprise Research Centre. UK . whilst the remaining 60% is pure waste – ‘muda’ in Japanese! By halving the effort in designing a new car. 35% are necessary but do not add value. Every PM…has not only to manage their own project but seek ways of eliminating the ‘muda’ in their systems so they can do more for less. Cardiff Business School. they show this ‘muda’ can be reduced by good project management. 7 Primary Forces of Change Facing Contemporary Organisations Compression of product life cycle Global competition Knowledge explosion Corporate downsizing Increased customer/client focus Rapid development of non industrialised countries & closed economies Small projects represent big problems . have forced radical changes in the product life cycle & clients are more demanding for improved services.PRIMARY FORCES FACING CONTEMPORARY ORGANISATIONS Compression of the product/service life cycle: computer aided design (CAD) & manufacturing (CAM). has brought pressures on quality improvement and cost containment . Global competition: transformation from national or regional economies to one global economy during the 1970s. ) Knowledge explosion the growth in new knowledge has increased the complexity of projects because projects encompass the latest advances & services are also more technologically complex.PRIMARY FORCES (Contd. it is hard to find a new product that does not contain at least one microchip • the need to integrate divergent technologies (through PM) . PM is replacing middle management it is rare today to find any major project performed totally in-house . where the PMs have to manage their own people but also their counterparts in different organisations .) Corporate downsizing after years of stressing growth and ‘big is better’. organisations have begun to face the harsh reality that big is also costly downsizing (or rightsizing if you are still employed) and sticking to core competencies have become necessary for survival of firms. Middle management is a mere skeleton of the past .outsourcing.PRIMARY FORCES (Contd. ) Increased Customer focus the majority of customers no longer simply settle for generic products/or services. They want customized products/services that cater for their needs the customized environment requires a much closer working relationship between provider & receiver • PM is critical both to development of customized products and services and to sustaining lucrative relationships with customers .PRIMARY FORCES (Contd. and the gradual opening of Asian communist countries. SADC and other African countries have created an explosion in pent-up demand for consumer goods & infrastructure development there is scramble to introduce new products and services to these new markets & many firms are using PM techniques to establish distribution channels & foreign bases of operations .PRIMARY FORCES (Contd.. Apartheid.) Rapid development of Developing Countries & Closed Economies the collapse of the Soviet Union. etc. ) Small projects represent big problems the velocity of change required to remain competitive or simply keep up has created an organisational climate in which hundreds of projects are implemented concurrently . .PRIMARY FORCES (Contd.the climate has created a multi-project environment and a plethora of new problems. flexibility. speed. and continuous improvement. . innovation.THE FORCES ARE REAL! PM is ideally suited for a business environment requiring accountability. THE IMPACT OF THE 7 FORCES it is no longer possible to to use traditional management methods to solve problems (individuals solving problems!!) .the need to use teams to solve problems (combined skill?) organisational response to the forces cannot take the form of an instantaneous transformation from the old to the new . A Project .Part of a Complex System Inputs & outputs Sector/Industry environment Country/Economy environment Global environment the need to understand the dynamics of environments . .Environment . Cost Project stakeholders H&S +Env. Env. Quality Utility Schedule Inputs Project & POO forces Output(s) Sector/Industry forces Country/Economy forces Global Forces A 3-Dimensional maze –environment H&S – Health and Safety. norms do not fit with knowledge base acquired Step4: .managing ‘infinetum’ – stress because there is no process for project selection (too many at one time & not successful) Step2: -‘the blame culture’ – PMs appointed by accident - finding victim(s) Step3: -the above leads to accidental PMs training .org.blame the PManagement process .lack of upper management support & direction leads to PMs fighting among themselves – departments decide on projects to support Step5: .new leadership (this could lead to step 1 situation) .fighting between PMs .Lack of strategic emphasis –What happens? Step1: -Project creeps .re- organisation becomes an issue & PM problems are put on hold! Projects languish & people are re-organised Step 6: -revitalization . avoid fragmentation of operations A Quality Driven Agenda .highly trained people & respect all participants .what customer want? Activities not adding value are waste & should be eliminated Integrate the Process & the Team Around the Product/Service .right first time Commitment to People .managers with burning commitment to raise quality & efficiency A Focus on the Customer . Drivers of Change Committed Leadership . Learning From Others(1) Car Manufacturing Industry (World-wide benchmarking studies .early 1990s): 2:1 gap in performance (UK vs Japan) 100:1 gap in quality • opening of Nissan. Toyota. of Trade & Industry (DTI) = PPP . & Honda plants in the UK • implementation of “lean production” have led to: time to introduce a car (from 40 to 15 months). placing an order on the factory to sale to customer (120days to 15 days) • Driver: Dept. the rate of supplier defects delivered to assembly plant (from 3% to 5 parts per million). transient endeavour.” (APM. which could be defined in terms of outputs. undertaken to achieve planned objectives. outcomes or benefits.WHAT IS A PROJECT? (2) A project is a unique. 2012) . skills. controlled and delivered so that agreed benefits are realised.” –(APM. tools and techniques to project activities in order to meet stakeholders needs and expectations from a project. 2014):PMBoK “The process by which projects are defined. monitored. PROJECT MANAGEMENT “…the application of knowledge. 2012): APMBoK . planned.” -(PMI. e. defined & established . the project manager) team roles & relationships that are subject to change & need to be developed. with a number of distinct phases in between) -Fig. which may be from different departments & need co-ordinating a single point of responsibility (I.1-1 a budget with an associated cash-flow activities that are essentially unique and non-repetitive use of resources.FEATURES OF A PROJECT Primary features: a project anatomy (life cycle) (a beginning and end. p111-2) . 1991. •stakeholders • activities • work packages •Reassign project team •Cost (operation & •risk level •Establish: • detailed schedule maintenance. time. quality. Total Project Life Cycle Time Plan Accomplish Operation/ Use Phase 4 Phase 5 Phase 6 Phase 1 Phase 2 Phase 3 TERMINATION OWN & OPERATE TRANSFER CONCEPT DEVELOPMENT IMPLEMENTATION Finish Finish Finish Conceive Develop Execute (F) (G) (H) (C) (D) (E) •Finalize product(s) •Project operate •Quality of Facility/ •Gather data •Appoint key team members Set up •Review and accept commercially service •Identify need •Conduct studies •organisation •Transfer product •Project produces •Evaluation process •Establish •Develop scope baseline: •communications responsibility cash flow to pay •goals. cost •Resolve problems Project Life-Cycle [generic] (developed from the PMBOK series. Volume 1. Wideman and Fellow. • equality standards •Detail technical requirements •Document results and principal feasibility • resources •Establish: •Release / direct resources repayment. etc) •potential team • master plan • information control •Training? •Guesstimate resources • WBS • systems •Identify alternatives • policies and procedures •Procure goods and services •Present proposal •Assess risks •Execute work packages •Obtain approval for next •Confirm justification] •Direct/monitor/forecast/ phase •Present project brief control: •Obtain approval to proceed • scope. objectives • end product (s) •Motivate team •Evaluate project lender’s debts interest •basic economics. comparing outcome to predicted outcome. quantity and quality and resources needed) & monitoring (tracking progress. PM & PROJECT GOALS/PARAMETERS moving from a triangle to a pyramid! balancing goals/parameters through planning (defining work requirements. and making adjustments) . analysing impact. Dinsmore (1999) 27 . . Aligning Projects with Strategy “Aligning the organization’s portfolio of projects to maximize their contributions to strategic objectives takes a highly coordinated effort. in which the planning staff identifies and characterizes the project and then tosses it to an uninformed and uninvolved project management group that is supposed to complete the project.” . It requires more than the old "grenade over the wall" approach.everyone must be engaged with the project before charging ahead. Questions to @ PBO Is the Organization committed to using PM strategically? Is there a policy within the Organization formally preparing project scopes/charters? Is synergy created between the Organization planning group and those responsible for project implementation? Is there a formal process within the Organization of senior management making sure that projects do not veer away from chartered objectives? . Default Project Based Organizations Project unlinked to coherent strategies Upper managers are unaware of the total number & scope of projects being undertaken Lip service to learning from projects (audits & close-out reports out of the equation) Window dressing project management information systems The core-team is very weak and chaotic . Bridging the Gap Between Organisation Strategy & Projects – in the face of adversity! . to address stakeholders needs Unsustainable potential – unable to contribute towards profits/ or improving the standard of living . Grenade Over the Wall Syndrome ? Unsuccessful organization/development strategy – not achieving success/developmental goals Inefficient projects – failing to meet budget. Weak impact on quality. utility and stakeholders – unable to schedule expectations meet technical specs. ” Dinsmore (1999) BRIDGING THE GAP BETWEEN ORGANIZATION STRATEGY & PROJECTS . Bridging the Gap!! (1) “ Successful private & public sector (my emphasis) project requires bridging the gap between the organization vision and the projects underway. general project management. and project implementation. specific project alignment. which in turn calls for co-ordination among organization strategies. Overview Disciplined Team Teams Mobilization Source Logistics PROJECT K Resources PROJECT H PROJECT J PROJECT I OPERATIONAL PROJECTS SPECIAL PROJECTS? . FROM ORGANISATIONAL STRATEGY TO PROJECT IMPLEMENTATION PROJECTS FOCUSSED STRATEGIC PROJECTS DIRECTLY TO STAKEHOLDERS PROJECT C PROJECT D PROJECT-SPECIFIC PRINCIPLES Product/Service Targets PROJECT E PROJECT B Interfacing Monitor Company Expectations GENERAL PROJECT Objectives ALIGNMENT Stakeholder Organization Management Management Create PROJECT F Product & PROJECT A Mission. Service Vision ORGANIZATION Portfolio MANAGEMENT Prioritization Risk Analysis Procurement Operational Strategic Project Goals Planning PROJECT L PROJECT G Organizational Multi. CHANGE TO PROJECT ORIENTED CONTEMPORARY ORGANISATIONS Normally. the existing organisation is not a project oriented organisation (it is a project oriented organisation by default) Moving from a ‘default’ environment requires what Rogers (1983) refers to as “Successful change agent.” .. .failure is not usually caused by just one person but is the result of a combination of problems (around the drivers of change?) (2) To be accepted as trustworthy & competent .7 Critical Roles for Successful Change Agents Rogers (1983) (1) (1) Developing the need for change .“talk the talk” & “walk the walk” (drivers of change to define the culture of the org.upper managers must act with integrity & authenticity .) (3) Diagnosing problems from the perspective of their audience .the need to see problems from the PM’s point of view & not to regard the PM as a culprit.avoiding ‘the blame culture’ . ownership of initiatives across the organisation. (7) Going out of business as change agents . then the need for change agents vanishes .7 Critical Roles for Successful Change Agents Rogers (1983) (2) (4) Creating the intent to change thro’ motivation - across the board acceptance of initiatives for change (around the drivers of change?) (5) Working thro’ others in translating intent into action .working as a collective (PMs & Operational managers) (6) Stabilizing the adoption of innovation .change initiatives are projects (with start & end dates) .if the above steps have been successful. 25-50% of projects deliveries are on time. utility issues addressed & there are quality considerations . project risk assessment. no utility considerations. training. within budget. projects are typically late. 50- 75% of project deliveries are on time.How mature is your organisation? (1) Capabilities of applying PM good practices against others in a particular industry/or sector: Stage 1 (Initial): no formal methodology. project review process. poor quality. Stage 2 (Repeatable): move (just) above Stage 1. utility issues addressed & there are quality considerations Stage 3 (Managed): 50/50 move on Stage 1 issues. project authorization process. over budget. within budget. all PMs must complete internal qualification/certification program. . C.T. continuous improvement is a norm. Certification in PM is a requirement for all PMs. & U levels. 75-95% of project deliveries are on time. All employees require basic PM knowledge & skills to be employed.How mature is your organisation? (2) Capabilities of applying PM good practices against others in a particular industry/or sector: Stage 4 (Distributed): Opposite of Stage 1 characteristics. Executives & managers are PM certified. and 99% of projects are within Q. Stage 5 (Sustained): management by projects is an organisation philosophy. clear utility considerations and quality. within budget. How mature is your organisation? (2) The amount of time it takes an organisation to achieve full maturity vary significantly from one organisation to another No organisation has reached the 5 stage Many organisations have achieved the 3rd Stage & parts of the 4th Stage It is not unusual for an organisation to exhibit some of the characteristics in more than one stage It is not possible to skip a stage (because maturing is a process that requires time) .