project management

profileSri Navya Tatikonda
ppmp20009_lecture_week_2.pptx

Project Management Methodologies

PPMP20009

Week 2 Lecture

Dr Bernard Wong

[email protected]

1

Research shows us that the majority of projects fail.

Time / cost

Benefits realisation

Biggest barriers

people factors underestimating complexity

2

Many faces of failure

1980s

Ineffective planning

Ineffective scheduling

Ineffective estimating

Ineffective cost control

Project objectives being ‘moving targets’

Many faces of failure

1990s

Poor morale

Poor motivation

Poor human relations

Poor productivity

No employee commitment

No functional commitment

Delays in problem solving

Too many unresolved policy issues

Conflicting priorities between executives, line managers, and project managers

Stage Gate Process

Gates

structured decision points.

Gate Review Checklists

inform the Project manager what needs to be prepared to be able to pass through the gate.

Gate Keepers?

Providing assurance

Decision making

Sta

5

Stage gate reviews

Decisions

Proceed based on original objectives

Proceed based on revised objectives

Delay making decision until further information obtained

Cancel Project

A structured process for managing a multitude of projects is most commonly called:

Project management policies

Project management guidelines

Industry-wide templates

A project management methodology

Project Management Methodologies

A repetitive series of processes, activities and tools used on every project

A single methodology

Organisations tailor project management methodology to their culture and context

consider QUT and TMR project management frameworks (week 1 moodle site)

Single methodology doesn’t mean one size fits all: Tiered projects

1

Low cost, risk, complexity, criticality

Lite suite of documentation and assurance

2

Medium cost, risk, complexity, criticality

Standard documentation and assurance

3

High cost, risk, complexity, criticality

Significant documentation and assurance

Enterprise project management methodologies

When products, services or customers have similar requirements can implement a enterprise wide PM methodology.

Implementing methodologies may initially be based on rigid policies and procedures

As project management maturity improves shift to guidelines, templates, checklists

Consider a university.

Would the customers (users) be the same for all projects?

Would a rigid policy based PM methodology be appropriate?

Defn’s of a project

10

Enterprise project management methodologies

In what situations would it be difficult to create a single enterprise wide project management methodology?

How could you still maintain some level of consistency if you needed to have multiple methodologies in your organisation?

A situation where it would be difficult to create a single enterprise wide project management methodology would include organisations that span a number of domains.

E.g. A government department that is highly welfare focussed may need two methodologies, one for welfare projects driving the strategic direction and one for ICT projects where they design and implement ICT solutions to support the business.

To maintain some level of consistency, you can have a project management framework that is more flexible, with guidelines on tiering, project lifecycles etc and also separate suites of specialist templates additional to the standard project management templates e.g. network security template for the ICT project suite, and community consultation templates for the welfare projects.

11

Methodologies can fail

There are a number of reasons why a methodology may fail including:

Executive level

Have a poor understanding of what it is, think it is a quick fix, a silver bullet

Working levels

It is too abstract and high level

Too detailed and complex

Insufficient explanation of how to use

Lacks integration into the business

Does not fit project type

Comprehensive list Kerzner p91-92

Deciding on what type of methodology

Factors to consider

Overall company strategy

Size of project scope and team

Project priority

Project criticality

Project risk profile

Project complexity

Project cost

How flexible the methodology and its components are.

Where would each of these methodologies work well?

Project management maturity model

Level 1

Common language

Level 2

Common processes

Level 3

Singular Methodology

Level 4

Benchmarking

Level 5

Continuous improvement

Basic knowledge

Process definition

Process control

Process improvement

Kerzner p1071

15

Project management maturity model

Level 1

Awareness of process

Level 2

Repeatable processes

Level 3

Defined Processes

Level 4

Managed Processes

Level 5

Optimised Process

P3M3

Process not usually documented, little or no guidance or supporting documentation

There may be areas starting to use standard approaches but no consistency across organisation

Processes are documented, standardised and integrated to some extent into business processes

Defined processes that are quantitatively managed i.e. controlled using metrics

Process continuously optimised for changing business needs

16

What Level of

Maturity?

Why?

Where are we now?

What are we working with?

If you don’t know where you are going, any road will get you there.

Cheshire Cat

(Alice in Wonderland)

There are a number of things to consider when deciding what level of maturity to aim for.

Why are you wanting to increase your level of maturity in this space?

-Some might be wanting to do it simply as a continuous improvement strategy.

Some may be having issues with the performance of their program and project delivery or portfolio investment returns

Others may need it to be competitive in a market that looks at the P3M3 levels of organisations in the tendering process

Others may be required to undergo a mandatory audit – as did the Qld Govt in 2012.

One organisation that I have spoken with has noted that their environment has become increasingly fiscally constrained and as such funding is much more competitive. They want to increase certain sections of their maturity, specifically relating to benefits management, business case and blueprint development – so that they can be more competitive in seeking funding for initiatives. So in this case they are not necessarily trying to improve their maturity as a whole, but an aspect of it. In doing this however, it is likely that they will have an increase in maturity in other areas as well.

We need to know where you are now to assist in deciding where you want to go. This is where going through an assessment is essential and I do believe in this being independent. You can self assess but this will always be impacted with bias. You need to baseline.

What are you working with? What is your organisational context? What resources do you have both budget and people? Do you have authentic sponsorship or are your leaders just ticking a mandate off? What’s your organisational culture like, are they open to P3 management or are they likely to see effort to increase maturity as unnecessary overhead?

So when we went through this process we were fortunate to have an authentic sponsor, we had a culture of project and program delivery so the staff understood the value of the practice (and I do say practice rather than methodology – as if you have experienced practitioners, they will argue methodology with you – this is a good thing!). We already had a number of the tools and processes in place it was just a matter of fine tuning in a number of areas. And we had a bit of a mandate as well – so I think the environment was the perfect storm for us. So we could aim high and put in place a rigorous process and procedures that drove our maturity.

So where would this not work. Again in an environment whereby the culture is very different, where there hasn’t been a focus on consistency or comparison across initiatives, where the practice, language and tools of portfolio, program and project management are likely to be seen as unnecessary overhead. And lets be clear these may not be two different organisations but could be two areas within the same organisation. For example perhaps the Information Services branch who are experienced at program and project delivery versus another branch within the organisation for example customer services who do not traditionally utilise program and project management methodologies to deliver their work outcomes. So if you were wanting to raise the maturity across both of these areas you would likely require two different approaches.

This leads to one of the key learnings - you should look at driving P3 Maturity as a Change Management Initiative – because the benefits are largely associated with adoption and usage.

17

Portfolio Management August 2010 - self assessment

In August 2010, we decided to really have a look at the Portfolio Maturity and decided to do a self assessment utilising the p3M3 model which now with Axelos. We determined that our current level was between the level 1 and level 2 (Awareness of and repeatable process) – represented by the blue

18

Portfolio Management 2012 external assessment

19

Project Management Methodology

Consider the different types of project management methodologies and discuss for what projects they would be appropriate.

Dr Kerzner’s 7 Fallacies that delay Project Management Maturity

Our ultimate goal is to implement project management

We need to establish a mandatory number of forms, templates, guidelines and checklists by a certain point in time.

Dr Kerzner’s 7 Fallacies that delay Project Management Maturity

We need to purchase project management software to accelerate the maturity process.

We need to implement project management in small steps with a small breakthrough project that everyone can track

Dr Kerzner’s 7 Fallacies that delay Project Management Maturity

We need to track and broadcast the results of the breakthrough project.

We need executive support

We need a project management course so our workers can become Project Management Professionals (PMPs)

Questions?

Why have you chosen to study project management?

Next week

Have decided which case study you will be using for your assessments

Readings and Resources – get onto MOODLE!!!