project management

profileSri Navya Tatikonda
ppmp20009_lecture_week_5.pptx

Project Management Methodologies

PPMP20009

Week 5 Lecture

Dr Bernard Wong

[email protected]

1

Best Practice

Different definitions

“…best practices are those actions or activities undertaken by the company or individuals that lead to a sustained competitive advantage in project management.”Kerzner

Early days – industry focused successes whereas the government looked at failures to identify best practice.

Gary

2

Assessing Readiness for Implementing Organisational PM

3

Critical Success Factors

Committed sustained executive level leadership

Organisational change management including assessing the organisation’s readiness for change

Continuous Improvement to sustain benefits of implementation

4

Critical Success Factors

Determine feasibility by determining strategic need and the cost benefit position

Share OPM information – to increase awareness, understanding and buy-in

Evaluate the organisation’s current state

5

Developing a blueprint or roadmap

Knowing where the organisation is now.

Knowing where the organisation wants to be in the future.

How

Business Case

Capture rationale of OPM

Set parameters and define success criteria

Tool to guide design, management, and evaluation of the OPM initiative.

What should be included in a business case?

Key Points (Kerzner)

Once business case endorsed form an OPM team to lead the implementation

Need to demonstrate the linked to the organisational strategic objectives

Consider the culture and environment carefully

Senior leadership commitment and support needs to be visible, as do the OPM Leaders.

Strong sponsorship

Clear vision

Implementation plan

Understand your people

Strong sponsorship

One of clear findings when looking at why we achieved the ranking we did was that we had strong sponsorship. Our sponsor had decades of experience in Program and Project Delivery, understood the importance of maturity in program and project management, was well positioned to negotiate the support and resources required to drive the increase in maturity and was forward thinking – really pushing the Portfolio view.

Clear vision

We presented to the Portfolio Board at the time the levels that we wanted to attain and gained their support. These were also communicated to the Program and Project management staff. We also used the audit recommendations and the full P3M3 auditing tool to drive improvements where needed, but also to identify, promote and celebrate good work.

Understand your people – they are the greatest asset you have in achieving your maturity or your greatest issue should they be highly resistant. As stated before you need to understand the capability and the culture of the workforce you have and ensure the plan takes these aspects into consideration.

9

Co-design with diverse working group

Context appropriate governance & method

Meaningful accountability

Co-design with Diverse working group

Leverage your stakeholders to assist with both designing your maturity journey and in embedding and sustaining the maturity you achieve. Capitalise on the diverse skills and experience in your organisation and not only those you work well with. Look to build in constructive conflict to the process – uncomfortable, a little slower, but leads to a better solution in the end. Think about scrabble –your people as the tiles on the board – in the game if you only have all ‘a’s then you can only get one word, likewise if your team (or program and project workforce) are very similar in outlook and background then you are likely to have a very happy working environment, but you will have limited opportunity for thinking outside the box, finding better ways of working, better solutions for clients etc. If you take the whole alphabet of 26 letters the Global Language Monitor as at 1 January 2014 estimated the English language consisted of 1,025,109.8 words. So in words – one letter one word, 26 letters 1,025,109.8 words (you have to love stats). So the value of adding just a few more diverse minds, skills and experiences around the table (and I’m in no way suggesting there should be 26) the possibility of getting the right solution in the right way increases exponentially. Don’t just pay lip service to this one, be comfortable with the uncomfortable and take on the challenge. To drive the maturity in Information Services, we established a working party from all facets of the department– things took a little longer – yes if we designed in isolation we could have had a plan much quicker, but we wouldn’t have had the buy-in, there would have been increased resistance and we had the added benefit of ensuring distributed effort in the end processes.

What do I mean here –traditionally a somewhat centralised PMO would undertake an assurance function for programs and projects. We shifted this to have the PMO as a facilitator of assurance and an assurer of some management products. Assurance was distributed to the areas of expertise– so the risk management assured the risk and issue logs, the Information Security area assured the initiatives information security assessment, the Right to information and Privacy area assured the privacy assessments, procurement assured the tenders and contract management plans. This provided boards with confidence that projects presented gates for signoff had been reviewed by experts and that any concerns raised by the experts that the PM was not able to address presented to the boards, not only from the PMs perspective but also that of the expert who raised the concern. Enabling more informed decisions.

Context appropriate governance & method

When discussing governance and methodology we have all heard the comments ‘there are too many templates to fill in’ ‘all this paperwork is unnecessary overhead’; ‘We don’t have the time to do all of this’; ‘I can’t wait for the Board to meet’ And these comments come from practitioners and the inexperienced alike. The Department had and still has what I call a ‘project by numbers’ tool set – this consisted of everything you would need to come into the area as a contractor and understand the methodology and process we proscribed for managing our projects from a technical perspective, this includes profiling tools, program and project life cycles indicating required documents, gate templates dictating which docs were required to be completed and assured prior to submission to the board. There were templates with explanatory text of what information was being sought. Highly standardised, clear and explicit guidance on the process etc.

You need the ‘right level’ of process, documentation and governance. The level will change for each organisation but more importantly should change for each initiative depending on the complexity and risk profile. It is important to have the right people at the table, and be cognisant of governance burden and administrative overhead – it needs to add value to the decision making and to the delivery.

Meaningful Accountability

When we talk about accountability we need to have a shared and agreed understanding the roles and responsibilities. And these need to work within your organisational context and BAU structure as well. There is no use banging the drum that the book says XXX has to be accountable for something if where it currently sits won’t delegate that down. Use best practice as a guide, have the conversations, challenge the status quo but pick your battles. Here the important thing is to have the roles and responsibilities clear (and complete). Not a battle of semantics - that the head of the project board needs to be termed a project executive and not an SRO. In a very low maturity environment it’s likely semantics will be the least of your worries.

10

Not in the text books

Audit management

70%

20%

10%

Change Mgt initiative

Experienced Practitioners

10, 20, 70 principle

Resource constrained?

‘Project by numbers vs practice flexibility

Drive Maturity as a Change Management Program – you need to understand your workforce, the culture etc

Experienced Practitioners – SMEs don’t always make good PMs and a 5 day course won’t make them practitioners. Not only were our practitioners very experienced but what we have realised in hind sight is that they were extremely diverse – our Program Directors had backgrounds in technology Project management, in policy, we had a statistician, some come up through public service ranks, testers wanting a change, change managers whose soft skills were invaluable as a project manager. We had leaders who authentically supported the PMO, we had a PMO which provided robust assurance and reporting whilst also building capability. We had a Program and Project resourcing team who provided invaluable council in terms of have the right resource in the right place, we had a finance team who drove value and efficiencies while supporting strategic forward planning. We had amazing authentic leaders. There was a great level of respect, healthy debate, constructive conflict and a desire to support and share for the betterment of the portfolio not just the delivery of individual initiatives.

This I believe was the secret ingredient – the people, the culture. We had the perfect storm. We didn’t do this consciously- it was organic. How do you recreate this – all you can do is really be committed to cultivating such a culture. Build it from the ground up – as it is easier to grow it than to change a pre-existing one.

10, 20, 70 principle – Lombardo and Eichinger described this as we learnt (for example project management)

10% from formal learning - courses and reading (so the course and text isn’t going to cut it)

20% from social learning - people (usually the boss or a mentor) (having the education and a great mentor – still not enough)

70% from experiential learning - on the job experience (you have to cut your teeth on a project)

So 10% education, 20% Exposure and 70% Experience is another way to think of it.

What we did was provide experiential development opportunities for those who either were keen to try their hand at project management or those who we had recognised had potential by providing them with training, providing them an experienced practitioner as a supervisor/mentor – and we then gave them a minor work to cut their teeth on ($100k or less).

Resource Constraints–I have asked the question of many of my colleagues whether they thought an organisation could achieve a high level of maturity in a resource constrained environment. At the time we were not resource constrained, we probably thought we were but in hind sight we weren’t. We had the right resources, the right people in the right roles, the time to upskill and mentor less experienced staff etc. Some responses I got to this to this question were ‘No’ ‘No, although I think it would be easier to get a 5 than a 4 (idea of fully optimised/tailored etc)’ ‘I would hope so’ ‘We can strive for it’ ‘Yes of course but it depends on your timeframes.’ ‘Yes absolutely – its scalable – less resources, less money less risk.’

The best response came from the current CIO Darrin Bond, he said ‘Don’t blame a lack of resources on not getting to a reasonable level of maturity. [it may be] more difficult, [it] is achievable and sometimes that can be better.’

And there are startups that have successfully implemented great projects in a resource constrained environments however it would be interesting if audited whether they could meet all the requirements. This again goes to what it is you are trying to achieve, focus on maturity not the ranking.

If you are resource constrained you need to be realistic. But you also have to be innovative – we went from a PMO consisting of 9 people to 2. Rather than the known process of PMO performing health checks, we started peer-reviewed health checks. The unexpected benefit was building capability in less mature PMs, and increased shared learnings. This is something I would keep even if resources increased.

Also the organisation needs to consider the cost benefit balance when investing in P3 maturity. The cost in striving for a level 5 may not be returned as value on the bottom line.

Right mix of ‘project by numbers’ and practice flexibility

In most organisations they want a level of documentation for a number of reasons – audit trails, knowledge management etc. And that isn’t accounting for upskilling inexperienced PMs. There needs to be a balance–there needs to be flexibility – the purpose in project management is to deliver something that will realise a benefit. The tools and processes are to support delivery and provide confidence to the investors or the business that they will get what they have asked for.

Audit Preparation

For those organisations who want an independent assessment of their maturity levels it is important that you understand the audit process and allow significant time to prepare for it.

Participants need comprehensive understanding of full process – use the audit information as a check sheet to gather examples of best practice.

Normally in a mature environment certain people won’t have a full understanding of the end to end process – If there is trust with the control processes the board may not know the specifics or the P3 language of the process especially SMEs, however if they are being interviewed it is likely that they will be questioned on it. So if independent assessment is important making sure that those being interviewed are made aware of not only what the end to end processes are but how they relate to the different levels.

Do you remember walking out of a job interview and thinking – I can’t believe I didn’t say that, I should have given them that example, that would have been perfect. Manage this – prepare your people. It is about ensuring the auditors have the full picture.

Use it as an awareness campaign - What is great about this is that it exposes the great work that is actually getting done and provides stakeholders with a good appreciation of effort and value add of Portfolio, Program and Project Management.

11

Key Points (DoC)

Understand what you want to achieve, why you want to achieve it, & if you have an authentic sponsor.

Develop a practical and pragmatic implementation plan. Know what is realistic with the resources and timeframes you have.

Your people are your greatest asset. Implement as a change management initiative. Use them to co-design the journey and co-maintain the maturity.

12

Project Selection (Portfolio Prioritisation)

What is it and who does it?

Which picture represents project management to you?

Is it all about how well the team works together?

Is it about building something out of disparate parts?

Is it about juggling multiple things at the same time?

What about identifying and managing your stakeholders, leveraging them?

Is it purely about delivery – tell me what you want and I’ll dig it up for you?

Is it all about the balancing act? Balancing the cost and benefits?

Is it about the schedule – the detail

Is it about a life cycle.

Class discussion. – get into groups as to the picture you think reflects project management more and discuss what that means to you. Come up with a definition of project management,

One member of each group to present this back to the class, discussing how the picture you choose aligns to the definition.

13

Feasibility Study vs Cost Benefits analysis

Feasibility Study

Can we do it?

Validate that the project is feasible in terms of cost, technology, safety, marketability, and ease of execution requirements

Cost Benefit Analysis

Should we do it?

Validate that if executed correctly, the project will provide required financial or non-financial benefits.

That benefits are of greater value than the cost of the initiative.

1. What is an opportunity cost and why do executives prioritising projects need to consider it?

2. What metrics could be used for a cost benefits analysis?

Which picture represents project management to you?

Is it all about how well the team works together?

Is it about building something out of disparate parts?

Is it about juggling multiple things at the same time?

What about identifying and managing your stakeholders, leveraging them?

Is it purely about delivery – tell me what you want and I’ll dig it up for you?

Is it all about the balancing act? Balancing the cost and benefits?

Is it about the schedule – the detail

Is it about a life cycle.

Class discussion. – get into groups as to the picture you think reflects project management more and discuss what that means to you. Come up with a definition of project management,

One member of each group to present this back to the class, discussing how the picture you choose aligns to the definition.

14

Prioritisation Criteria

What criteria would a portfolio board use to select projects?

Utilising categorisation in prioritisation

Which picture represents project management to you?

Is it all about how well the team works together?

Is it about building something out of disparate parts?

Is it about juggling multiple things at the same time?

What about identifying and managing your stakeholders, leveraging them?

Is it purely about delivery – tell me what you want and I’ll dig it up for you?

Is it all about the balancing act? Balancing the cost and benefits?

Is it about the schedule – the detail

Is it about a life cycle.

Class discussion. – get into groups as to the picture you think reflects project management more and discuss what that means to you. Come up with a definition of project management,

One member of each group to present this back to the class, discussing how the picture you choose aligns to the definition.

16

Organisational Structures

Matrix Structures

Matrix and Project Management

The Article

Project Management Journal

Volume 44 No 1, pages 17-34

 Besner C. & Hobbs B. (2012) Contextualized Project Management Practice: A Cluster Analysis of Practices and Best Practices

Lessons Learnt

What are lessons learnt?

What are some ways to gather lessons learnt?

Activity

PPMP20009 Lessons Learnt

History

Ancient History

Greeks, Egyptians, Romans, Chinese, Mayans etc

Pre 1940’s – techniques started to develop – henry Gantt developed the Gantt Chart, there were techniques in risk management, budgeting being played with.

Post WW2 governments started to re-build economies and projects came into being more in the form we know today

1960’s to 1985 – new management techniques were developed and shared – quality management, Just in Time management, matrix management – all giving new frames on how we worked and how projects were being managed

1985-2009 – Started to see specialised project management firms starting up, project management was starting to be outsourced.

2009 – 2020 Project management becoming more specialised – project domains emerging and greater emphasis on strategic project management.Starting to see standards being adopted ISO 21500, hiring only qualified PMs for big projects etc

25

Portfolio

Collect

Reflect

Share

Select