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New Project Leadership Model : Managing Business Complexity K. HASS BAF2014 GENEVE
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Transcript of New Project Leadership Model : Managing Business Complexity K. HASS BAF2014 GENEVE
THE NEW PROJECT LEADERSHIP MODEL THE PROMISE OF THE PM/BA PARTNERSHIP
1
Kitty Hass, PMP Principal Consultant, Kathleen Hass & Associates, Inc. BUSINESS ANALYSIS AND PROJECT MANAGEMENT
Cell: 303.663.8655 Email: [email protected]
2
Kitty is the leading expert in
Strategic Business Analysis
and
Complex Project Management
She has written nine books, dozens of
influential articles, and given lectures at
corporations throughout the world. She
is a professor of Strategic PM and BA
Practices at Villanova University and a
keynote speaker at conferences around
the world.
Kitty is a Director on the IIBA Board, and
is on the BA advisory boards for Capella
University and the University of
California, Irvine.
Her ground breaking work in Project
Complexity has earned her recognition
as a recipient of the PMI’s David I.
Cleland Literature Award
The Challenge The Complex Project
Management Model
The New Leadership Model
©KHass and Associates, Inc. 3
Infrastructure
The 21st Century Challenge The Integrated Economy
Project Success still Elusive
Business Value Creation
Convergence of digital, social
and mobile spheres
Information Explosion
Innovate or Evaporate
Complexity
4
Tom Friedman, That Used to be Us Meet the Press, Sept. 4, 2011
What Does All This Mean For BAs?
5 ©KHass and Associates, Inc.
Tom Friedman, That Used to be Us Meet the Press, Sept. 4, 2011
• Traditional project jobs are changing
– BA focus: strategy, innovation, value vs. requirements management
– PM focus: complexity management vs. project management
• Companies can’t find the employees they need – critical thinkers with the ability to:
– Adapt, invent, and re-invent
– Collaborate, create, and innovate
– Leverage complexity to compete
Lead Through Connections
• Collective intelligence – Access untapped knowledge of your
• Enable growth through global teams – Instill – Align with national agendas
• Promote organizational creativity and
• Welcome the tension between – Creative disruption and – Operational efficiency
6 ©KHass and Associates, Inc.
“We do not have the creative
talent needed to innovate”
Complexity
is our biggest
challenge
Creativity is the most
important
leadership quality
“We doubt our
ability to
manage
complexity”
©KHass and Associates, Inc. 7
Everyone is Creative Edward de Bono, Ph.D.
Achieving Innovation
Problem / opportunity analysis
Business architecture
Experimentation
Solution assessment
Feasibility analysis
Business case analysis
Benefits management
Capitalizing on complexity
Enterprise Business Analysis
Planning
Execution
Controlling
Risk management
Conflict resolution
Issue management
Team management
Managing complexity
Complex Project
Management
Implementing the
Innovation Arriving at the Creative Decision
©KHass and Associates, Inc. 8
The Troubling Project Performance
39% of projects delivered on time, on budget, with Required functions
CHAOS Report 2013 Standish Group
Gaps in Enterprise BA and Complex PM
USD 500 billion/month globally
“If we could solve the problem of IT failure, the US could increase GDP by USD 1 trillion/yr.“ Roger Sessions, The IT Complexity Crisis: Danger and Opportunity
9
80% of Projects on Time, Scope,
Budget
Innovative Solutions
Value to the Customer
Wealth to the Organization
We Need to Manage Complexity to Improve Project Performance
10
1. Diagnose Project
Complexity
2. Assign Competent
Leaders
3. Select the Project
Approach
4. Manage Complexity Dimensions
©KHass and Associates, Inc. 11
Diagnose Project
Complexity
©KHass and Associates, Inc. 12
Complex Project Management Dimensions
Long-duration projects
Large, dispersed project teams
Fixed deadlines and inflexible demands
Ambiguous problems, opportunities, solutions
Volatile requirements
High visibility, strategic, multiple stakeholders
Large-scale organizational change
Risks, dependencies, external constraints
IT complexity
© K. Hass and Associates, Inc. Confidential 13
The Project Complexity Model
14
Complexity
Dimensions Project Profile
Independent - Low
Complexity Project
Moderately Complex
Project Highly Complex Project
Highly Complex
Program
“Megaproject”
1. Size/Time/Cost Size: 3–4 team members Time: < 3 months Cost: < $250K
Size: 5–10 team members Time: 3–6 months Cost: $250–$1M
Size: > 10 team members Time: 6 – 12 months Cost: > $1M
Size: Multiple diverse teams
Time: Multi-year Cost: Multiple Millions
1. Team Composition and Past Performance
PM: competent, experienced
Team: internal; worked together in past
Methodology: defined, proven
PM: competent, inexperienced
Team: internal and external, worked together in past
Methodology: defined, unproven
Contracts: straightforward
Contractor Past Performance: good
PM: competent; poor/no experience with complex projects
Team: internal and external, have not worked together in past
Methodology: somewhat defined, diverse
Contracts: complex Contractor Past
Performance: unknown
PM: competent, poor/no experience with megaprojects
Team: complex structure of varying competencies and performance records (e.g., contractor, virtual, culturally diverse, outsourced teams)
Methodology: undefined, diverse Contracts: highly complex
Contractor Past Performance: poor
1. Urgency and Flexibility of Cost, Time, and Scope
Scope: minimized Milestones: small Schedule/Budget:
flexible
Scope: achievable Milestones: achievable Schedule/Budget:
minor variations
Scope: over-ambitious Milestones: over-
ambitious, firm Schedule/Budget:
inflexible
Scope: aggressive Milestones: aggressive,
urgent Schedule/Budget:
aggressive
©KHass and Associates, Inc.
0
1
2
3
4Size/Time/Cost
Team Composition
and Past Performance
Urgency and
Flexibility of Cost, time, and Scope
Clarity of Problem,
Opportunity, Solution
Requirements Volatility and Risk
Strategic
Importance, Political
Implications, Stakeholders
Level of Change
Risks,
Dependencies, and External Constraints
Level of IT Complexity
Project #3 - Product Innovation
Highly Complex Project
©KHass and Associates, Inc. 15
The new Leadership Model
Assign Competent Leaders
©KHass and Associates, Inc. 16
Collaborative Leadership
Expertise
Vision Innovation
©KHass and Associates, Inc.
18
Exploit the Synergies of Shared Leadership
PM
BA Developer
PM
BA
Business
Visionary
Lead Technologist
QA/Test Manager
Traditional
Shared
Exploit the Synergies of PM/BA Collaboration
Business Analyst
• Identify business needs
• Determine solutions
• Discover, define, and document requirements
Project Manager
• Deliver on scope, time, and cost
• Define and improve project performance
accountable for business benefits
accountable for project objectives
19 ©KHass and Associates, Inc.
Differing Perspectives
The Business Analyst View of the Project
The Project Manager View of the Project
Requirements
Initiate
Design
Plan
Construct Test Deliver
Execute Monitor and Control
O & M
Close
Adapted from: Harness the Power of the PM/BA Partnership Webinar 07/29/2008, Management Concepts
20 ©KHass and Associates, Inc.
Differing Views of Scope
Business Analyst
• Solution scope – Business case
– Business requirements
Project Manager
• Project scope – Project charter
– Scope statement
Source: Harness the Power of the PM/BA Partnership Webinar 07/29/2008, Management Concepts
21 ©KHass and Associates, Inc.
Incomplete Views of Requirements Scope
22 ©KHass and Associates, Inc.
SOURCE: PARTNERING FOR PROJECT SUCCESS: PROJECT MANAGER AND BUSINESS ANALYST COLLABORATION, CO-AUTHORED BY PMI AND IIBA
Business
Stakeholder
Solution
Transition
Overlapping Responsibilities
Scope Management
Communications and Stakeholder
Management
Risk Management
Requirements
Management
23 ©KHass and Associates, Inc.
Business Domain
Business Owner
Project Domain
Project Sponsor
Project Manager
Business Analyst
SOURCE: PARTNERING FOR PROJECT SUCCESS: PROJECT MANAGER AND BUSINESS ANALYST COLLABORATION, CO-AUTHORED BY PMI AND IIBA
24 ©KHass and Associates, Inc.
Business/Technology Optimized
Enterprise Level
BA Awareness
Project Level
Innovation Level
1
2
3
4
•BA Practices Informal
•BA Community of Practice Exists
•Increasing awareness of the value of BA
Moderately Complex Projects
Project Change
BABOK® Standards: • BA
Planning/Monitoring • Elicitation • Requirements
Mgt./Communication • Requirements
Analysis
Career Path to Sr. PM/ BA
IT/Business BAs
Highly Complex Programs
Business Architecture
Organizational Change
Value Management
Enterprise Analysis Solution Assessment & Validation
Strategy Execution
Complexity Management
Path to VP of PM/ BA
Architects and Consultants Enterprise Analysts
Breakthrough Innovation
Opportunities converted into Innovative Business
Solutions
Strategy translated into Breakthrough Practices
Cultural Change.
Visioning & Strategic Planning Innovation & R&D
Path to Strategic PM/BA
Business/Technology Experts Innovation Experts Change Experts
Business Needs Met / Strategy Executed
Value-Based BA Practices Traditional BA Practices
Business Requirements
Managed BA Awareness
Capability Gap
Close the Gap between Complexity and Capabilities
0
1
2
3
4
1 2 3 4 5 6
Typ
ical C
om
ple
xit
y R
ati
ng
Overall BA Practice Maturity
1.68
Ins FS IS/IT NP HC Trans1.66 1.66 1.64 1.69 1.62 1.81 BA Practice Maturity
Greatest % of Challenged Projects:
Greater Than 30% Over BSS
30% Over BSS
20% Over BSS
10% Over BSS
On Track
©KHass and Associates, Inc. 26
©KHass and Associates, Inc.
Use Complexity Thinking to Assign Project Leaders
Low Complexity
Projects
Moderately Complex Projects
Highly Complex
Programs
New Business
Strategy and Innovation
Highly Complex
Projects and Programs
PMs and BAs
Senior PMs and BAs
Complex Project Managers and Enterprise Business Analysts
Strategic Business Consultants
PMs increase their probability of having a successful project by 400% with an elite BA
BA Benchmark Study, 2008
27
Build a Great Team
• Passionate
• Small but mighty
• Core full-time leaders
• Highly trained
• Highly practiced
©KHass and Associates, Inc. 28
• Multi-skilled
• Experienced
• Personally accountable
• Expertly coached
• Diverse
Select Adaptive Approach
©KHass and Associates, Inc. 29
30 ©KHass and Associates, Inc.
Low Complexity
• Independent
• Predictable
• Routine
Moderately Complex
• Probability
• Messy
• Integration
Highly Complex
• Uncertainty
• Disorder
• Novel
• Intricate
Linear Iterative
Adaptive Extreme
Low Complexity
Projects
Linear Approaches:
The Waterfall Model
The RAD Model
©KHass and Associates, Inc. 31
When do Linear Methods Work?
• Maintenance, enhancement, continuous improvement
• Well-understood projects when:
– Business problem, opportunity, solution clear
– Requirements well understood
– No major changes expected
– We have successfully done this before
©KHass and Associates, Inc. 32
Challenges with Linear Models
• We just aren’t that good at: – Requirements
– Change Management
– Estimating
©KHass and Associates, Inc. 33
Complex Projects
Iterative Approaches:
The Incremental Model
The Adaptive Model
The Agile Model
“…the nations and people who master the new
sciences of complexity will become the economic,
cultural, and political superpowers of the next century.” Heinz Pagels, Physicist
©KHass and Associates, Inc. 34
©KHass and Associates, Inc.
Linear Adaptive
Structured, orderly, disciplined Spontaneous, disorganized
Relies heavily on plans Evolves, changes
Predictable, defined, repeatable Surprising, ambiguous, unique
Unwavering stable environment Volatile, unstable environment
Proven technologies Unproven technologies
Realistic schedule Aggressive schedule, urgent
21st century projects are chaotic, unpredictable
Methods that work on small projects break down
Combine the elements of classic PM, agile, lean
Traditional Approaches are not Enough
35
Adapting for Survival
36
Equilibrium Chaos
• Complex systems fluctuate between states of • Equilibrium (paralysis, death) • Chaos (unable to function)
• Edge of Chaos most creative, productive state • Essential to survival • Breeds creativity
Peter Fryer, A Brief Description of Complex Adaptive Systems and Complexity Theory http://www.trojanmice.com/articles/complexadaptivesystems.htm
Why do Adaptive Methods Work?
• Iteration is the best defense against complexity
• Decompose large batches of the work into a series of small, time-boxed iterations
• Smaller batches accelerate feedback
• Produce huge benefits
– Easier mid-course correction
– Higher quality
– Greater release frequency
– Better IT/Business alignment
Source: Agile Software Requirements: Lean Requirements Practices for Teams, Programs, and the Enterprise, By Dean Leffingwell
50% faster to market
25% more productive
¼ of expected defects
©KHass and Associates, Inc. 37
Challenges Using Iterative Approaches
• Reduce or eliminate interdependencies – To reduce complexity
– Feature-driven requirements
• Prototype - visualize – For understanding
– To reduce risk
– To prove a concept
• Use integrated tools – For traceability
– For integration
• Evolve the solution – Continuously validate, evolve, and improve requirements and the
solution throughout the project
– Freeze design at the last responsible moment
Core
#1 #2
#3
38
Complex Models Still Emerging
©KHass and Associates, Inc.
Source: Center for Strategic International Studies, Organizing for a Complex World, Developing Tomorrow’s
Defense and Net-Centric Systems, 2009 39
Combining elements of existing practices ◦ Iterative learning ◦ Adapting and evolving ◦ Experimenting ◦ Delayed decision-making
Experimenting with contemporary practices ◦ Late design freeze ◦ Built-in redundancy ◦ Lots of experimentation ◦ Prototypes for
multiple parallel solutions
Challenges with Complex Models
• Knowing how long to keep your options open
• Building options into the approach without undue cost
• Bringing the right group of experts to discover, experiment, create, innovate
©KHass and Associates, Inc. 40
Questions • What is the value of business analysis?
– Small project/adaptive model • 50% faster to market • 25% more productive • ¼ defects
– Business benefits realized/reported by BA • Value to customers • Wealth to bottom line
• What to do when solution is selected before analysis begins? Re-do and validate: – Business case – Solution alternative analysis
• What about PMI? – PMI’s focus exclusively at project level on requirements – IIBA’s focus much broader, more strategic, value-based
embracing all disciplines that support business change
41 ©KHass and Associates, Inc.
Principal Consultant
303.663.8655
IIBA Board of Directors
©2009 by Kathleen Hass and Associates, Inc. adapted from Managing Complex Projects: A New Model by Kathleen B. Hass
PROJECT COMPLEXITY MODEL 2.0
Complexity Dimensions
Project Profile
Independent Project Moderately Complex Project Highly Complex Project Highly Complex Program
“Megaproject”
1. Size/Time/Cost Size: 3–4 team members Time: < 3 months Cost: < $250K in labor costs
Size: 5–10 team members Time: 3–6 months Cost: $250–$1M in labor costs
Size: > 10 team members Time: 6 – 12 months Cost: $1M-$10M in labor costs
Size: Multiple diverse teams Time: Multi-year Cost: > $10M in labor costs
2. Team Composition and Past Performance
PM: competent, experienced
Team: internal; worked together in past
Methodology: defined, proven
PM: competent, inexperienced
Team: internal and external, worked together in past
Methodology: defined, unproven
Contracts: straightforward
Contractor Past Performance: good
PM: competent; poor/no experience with complex projects
Team: internal and external, have not worked together in past
Methodology: somewhat defined, diverse
Contracts: complex
Contractor Past Performance: unknown
PM: competent, poor/no experience with megaprojects
Team: complex structure of varying competencies and performance records (e.g., contractor, virtual, culturally diverse, outsourced teams)
Methodology: undefined, diverse Contracts: highly complex
Contractor Past Performance: poor
3. Urgency and Flexibility of Cost, Time, and Scope
Scope: minimized
Milestones: small
Schedule/Budget: flexible
Scope: achievable
Milestones: achievable
Schedule/Budget: minor variations
Scope: over-ambitious
Milestones: over-ambitious, firm
Schedule/Budget: inflexible
Scope: aggressive
Milestones: aggressive, urgent
Schedule/Budget: aggressive
4. Clarity of Problem, Opportunity, Solution
Objectives: defined and clear
Opportunity/Solution: easily understood
Objectives: defined, unclear
Opportunity/Solution: partially understood
Objectives: defined, ambiguous
Opportunity/Solution: ambiguous
Objectives: undefined, uncertain
Opportunity/Solution: undefined, groundbreaking, unprecedented
5. Requirements Volatility and Risk
Customer Support: strong
Requirements: understood, straightforward, stable
Functionality: straightforward
Customer Support: adequate
Requirements: understood, unstable
Functionality: moderately complex
Customer Support: unknown
Requirements: poorly understood, volatile
Functionality: highly complex
Customer Support: inadequate
Requirements: uncertain, evolving
Functionality: many complex “functions of functions”
6. Strategic Importance, Political Implications, Stakeholders
Executive Support: strong
Political Implications: none
Communications: straightforward
Stakeholder Management: straightforward
Executive Support: adequate
Political Implications: minor
Communications: challenging
Stakeholder Management: 2–3 stakeholder groups
Executive Support: inadequate
Political Implications: major, impacts core mission
Communications: complex
Stakeholder Management: multiple stakeholder groups with conflicting expectations; visible at high levels of the organization
Executive Support: unknown
Political Implications: impacts core mission of multiple programs, organizations, states, countries; success critical for competitive or physical survival
Communications: arduous
Stakeholder Management: multiple organizations, states, countries, regulatory groups; visible at high internal and external levels
©2009 by Kathleen Hass and Associates, Inc. adapted from Managing Complex Projects: A New Model by Kathleen B. Hass
Complexity Dimensions
Project Profile
Independent Project Moderately Complex Project Highly Complex Project Highly Complex Program
“Megaproject”
7. Level of Change
Organizational Change: impacts a single business unit, one familiar business process, and one IT system
Commercial Change: no changes to existing commercial practices
Organizational Change: impacts 2–3 familiar business units, processes, and IT systems
Commercial Change: enhancements to existing commercial practices
Organizational Change: impacts the enterprise, spans functional groups or agencies; shifts or transforms many business processes and IT systems
Commercial Change: new commercial and cultural practices
Organizational Change: impacts multiple organizations, states, countries; transformative new venture
Commercial Change: ground-breaking commercial and cultural practices
8. Risks, Dependencies, and External Constraints
Risk Level: low
External Constraints: no external influences
Integration: no integration issues
Potential Damages: no punitive exposure
Risk Level: moderate
External Constraints: some external factors
Integration: challenging integration effort
Potential Damages: acceptable exposure
Risk Level: high
External Constraints: key objectives depend on external factors
Integration: significant integration required
Potential Damages: significant exposure
Risk Level: very high
External Constraints: project success depends largely on multiple external organizations, states, countries, regulators
Integration: unprecedented integration effort
Potential Damages: unacceptable exposure
9. Level of IT Complexity Technology: technology is proven and well-understood
IT Complexity: application development and legacy integration easily understood
Technology: technology is proven but new to the organization
IT Complexity: application development and legacy integration largely understood
Technology: technology is likely to be immature, unproven, complex, and provided by outside vendors
IT Complexity: application development and legacy integration poorly understood
Technology: technology requires groundbreaking innovation and unprecedented engineering accomplishments
IT Complexity: multiple “systems of systems” to be developed and integrated
PROJECT COMPLEXITY FORMULA
Highly Complex Program
“Megaproject”
Highly Complex Project Moderately Complex Independent
Size: Multiple diverse teams, Time: Multi-year, Cost: Multiple Millions
Or
2 or more in the Highly Complex Program/Megaproject column
Organizational Change: impacts the enterprise, spans functional groups or agencies, shifts or transforms many business processes and IT systems
Or
3 or more categories in the Highly Complex Project column
And
No more than 1 category in the Highly Complex Program/Megaproject column
3 or more categories in the Moderately Complex Project column
Or
No more than 2 categories in the Highly Complex Project column and
No more than 2 categories in the Moderately Complex Project column
And
No categories in the Highly Complex Project or the Highly Complex Program/Megaproject column