Successful Project Management to Achieve Corporate ... · 1. Project Management Institute (PMI)...

Institute of Management | Copyright 2010 | Version 2.2

Engineers Australia – Middle East Interest GroupAdel Khreich January 2011

Successful Project Management to Achieve Corporate Strategy


About Institute of Management

A Division of Blue Visions Management Project Management Consulting

Vetab Registered Training

Organisation (Provider No 91308)

Project Management InstituteRegistered Education Provider(REP Provider ID 2670)

AIPM Endorsed Course ProviderEndorsed by theEndorsed by the

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About blueVisions

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• Project management services

• Specialist project planning

• Contract services (including dispute resolution and expert witness testimony),.

International consultancy focused on increasing project certainty and reducing risk through innovation, culture and excellence in delivery. Provides the leadership, technical excellence and leading edge tools and methodologies to create platforms for sustained long-term business improvement .

• Project Management Capability improvement including assessments, benchmarking, project health checks and methodology development.


Objectives• Understand where project management sits in

the support of business strategy;• Develop awareness of the differences between

project, program and portfolio management, • Overview how PM can add more value to

business strategy;• Become familiar with PM maturity levels and

how improvement in capability can be planned, implemented and embedded into organizations

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Administration• Enrolment Forms• Evaluation forms• A Copy of the presentation will be on our

websites so no need to take a lot of notes

www.bluevisions.com.au

www.im.edu.au

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Understanding Project, Program and Portfolio Management


Industry Definitions

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Project Management – Output driven (time, cost and quality)The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

Program Management – Benefits driven (outcome focused)

The centralized coordinated management of a program to achieve the program's strategic objectives and benefits.

Portfolio Management – Strategy focused

The centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives.


Outputs, Outcomes and Benefits

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Is the portfolio achieving the Objectives?

Are the programs delivering the benefits?

Strategic Planning

FOCUSVision, Outcomes,KRAs, Objectives

MANAGEOutcomes & benefits

Portfolio Management

Program Management

FIT & VALUEAlign, select, prioritise, balance, authorise, report, changes

Project Management

Are the projects performing?

Project Portfolio Managem

ent

MANAGEOutputs - time, cost,scope & quality


Closer Look at Project Management

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Projects have specific characteristics• Output – a result, service or product• Unique – One off• Timeframe – specific start and finish• Requirements – Scope, time, cost, quality


Project Management Standards

1. Project Management Institute (PMI) Project Management Body of Knowledge (PMBoK) and its associated professional exam, PMP (Project Management Professional)

2. Australian Competency Standard for Project Management

3. PRINCE2 Methodology 4. Many others

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Core Functions of Project Management

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• For the client or the

sponsor, they embody the

project’s basic management

objectives

• For the project manager

and team, they constitute

constraints

Core functions describe what is managed


Enabling Functions of Project Management

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• Directly influence the

success of the project, often

through the performance of

people

• Affect project activities and

processes

Enabling functions describe how it is managed


Project Life Cycles

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• Projects typically go through five stages• Often referred to as “project management processes”

• For Simple projects Implementing includes executing, monitoring and controlling


Skill Set for Project Managers

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Technical Skills – The Science (30%)• Process Champion• The PM Knowledge Areas (S,T,C,R,Q,R,P, C)• The Ability to apply the knowledge (Experience)• Tools and metrics

Soft Skills – The Art (70%)• Stakeholder management (Support and buy-in)• Communication (clarity and relevance)• Team leadership (high performance)


Demystifying Program Management

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Is Not............• Project managing multiple projects• Tactical• At project level

Is............• Concerned with interdependent projects• Strategic in nature – links to business strategy• At business level• Managing benefits to the business


Skill Set for Program Managers

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Business Skills• Business Champion – achieving Benefits,

outcomes, ROI• Market, environment • Process and project management “acumen” only

Leadership Skills• Lead teams (to achieve high performance)• Communication (to influence)• Stakeholder management (engagement)


Demystifying Portfolio Management

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Is Not............• Project managing multiple projects• At project level• Managing outputs or outcomes

Is............• Focused on opportunities that offer highest

returns at lowest risks• Selecting, prioritising, funding and resourcing

the right projects• works horizontally - multiple projects


Skill Set for Portfolio Managers

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Business Skills• Product Champion – focus on market &

customer• Determine business value of a product / project• Technology / product changes in market place• Resource & risk management

Leadership Skills• Communication (to influence)• Stakeholder management (engagement)


Achieving Corporate Strategy Through Project Management


It is All About the Business

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The PM must always understand…• Why the owner is investing in the project • That the project is merely an enabler for businesses• That the initiating and planning phases are when most

value is added and risks are mitigated• Process is important for best practice but not at the

expense of the outputs and outcomes• That the role involves leadership and facilitation not just

technical• While change impacts projects that change at a

business level is ongoing and fundamental

Potential for Change

Institute of Management | Copyright 2010 | Version 2.2 21

POTENTIALFOR

CHANGE

Concept Plan Implement Finalisation


Influence, Control & Project Life Cycles

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Change is Personal

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Challenges to Successful PM

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• Lack of understanding of the role of a PM – confusion with other roles

• Lack of authority of PM – treated like a coordinator• No consistent framework to “manage” projects or to

“kill” non performing projects• Separation of the tools, processes and training –

creating inconsistency and inefficiency• Duplication of effort due to lack of templates / tools• Lack of soft skills (communication, leadership,

influencing) = no understanding of win- win • No clear roadmap to improve capability


Clarity in Roles and ResponsibilitiesActivity / Stakeholders

A B C D E

Design R ACoding A R S CUnit Testing RA I IQuality Assurance RA CDocumentation A R S

R = Responsible - owns the problem / projectA = to whom "R" is Accountable - who must sign off (Approve) on work before it is effectiveS = Supportive - can provide resources or can play a supporting role in implementationC = to be Consulted - has information and/or capability necessary to complete the workI = to be Informed - must be notified of results, but need not be consulted

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Missing Ingredients

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PM alone can cause issues in complex environments• Misalignment with strategy:

• Project targets met but fails to achieve business results (wrong scope)

• Misalignment with market:• Project targets met but was the wrong project

• Poor ROI:• Lack of benefits management (plan and track)

• Ineffective Coordination:• Successful project as a standalone but lost

opportunities for collaboration with interdependent projects


Understanding Strategic Value & Intent

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The PM has to reach out and understand… (but not manage)

• Competitive advantage• Time to market of the whole product (not just the

project)• Quality requirements for the whole product• How project costs affect product costs and profitability• The innovation involved in the overall strategy• Business risks (not just the project risks)


“If you don’t know where you’re going, any path is as good as another

… but you won’t realise you’re lost, you won’t know what time you’ll get there.

... you might unknowingly be going in circles, and others won’t understand how they can help.

... since you could pass by without knowing it, you won’t get the satisfaction of having arrived”

Lewis Caroll: Alice in Wonderland

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Why Understand the Strategic Value & Intent


Begin with the End in Mind

• Successful project management begins with clearly defined end goals and a properly planned route to reach them

Horse before the cart

• It is not that organisations do not know the goals they seek – more that the goals are often poorly framed:– Often wrongly expressed in terms of delivering a capability rather

than a benefit– Seldom adequately shared or owned– Frequently unrealistic with no defined route map– Often requires a leap of faith – waiting for miracles

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Mapping of Drivers and their ImplicationsMany Tools…..

• Identify business outcomes and expected benefits

• Assess their relative importance to the organisation (current & future)

Strategic Speculative

SupportKey Operational

New sales channels, e.g., e-commerce

Changes in the economic environment

Competitive pressuresNew policy or strategic initiativesAdaptation to cope with changing

marketsAdding new organisation model,

e.g., tax body begins payment system

Establishing presence in new region

New technology opportunitiesMergers and acquisitions

Improving the quality and delivery of products and services

Industry legislationRandom major events, e.g., flood,

disease, terrorism

General legislationCost reduction and efficiency

improvements

lowlowHIGH

HIGH

Importance to current organisation

Impo

rtan

ce to

futu

re o

rgan

isat

ion

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Benefits Planning


ID # Benefit Description Owner Expected Benefit Outcome

Benefit Measurement

Method of Measurement

Unique ID #

Name of the benefit –short and as descriptive as possible description

Name of the person responsible for achieving the benefit

Summary of benefit outcome Description

off what measure will be used to determine if benefit has been realized

Description of what means will be used to take the measurement

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Benefits Tracking


ID#

Measure’t Date

Baseline Value

Target Value

Actual Value

Benefit Category

Benefit Ranking Actions Required Start Date End Date

Unique ID # Details for baseline and post implementation measurements to be taken

Initial measurement of the agreed measurement metric before benefit is realized

Relative ranking of the benefit in relation to the full suite ofbenefits for the project/program

List the practical actions to be taken to achieve this benefit

Starting date of each action req’d

The agreed target value to be achieved once benefit is realized

The value of the measurement post implementation based on results agreed in benefits plan

Define the category of the identified benefit – expressed in terms of COST, SATISFACTION or TIME

Finish date of each action req’d

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Example Summary Benefits Plan

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Adding Value Through Project Management

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The PM has to step up to…..• Integrate project with business model

• Cost, efficiencies, outputs• Link to the drivers, ROI, interdependencies• Account for business risks and opportunities

(different from project risks and opportunities)• Align execution with strategy

• Understand market share, technology, differentiators and manage their impact on the project

• Get the planning right• The fuzzy front end, never simple, can be frustrating,

this is where value is added


Successful Project Management

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We Know it is Successful When…• All stakeholders are engaged and supportive

• I.e. value is being added and is transparent• They believe in the metrics used to measure performance,

value and benefits• Lines of authorisation are clear and work• High quality deliverables

• The agreed scope, budget and time objectives are realistic and regularly achieved

• Processes are clear and are followed• Robust risk and opportunity management is undertaken• Project team has high morale and low churn• Culture supports ongoing improvement


Summary

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• In the same manner as a Program Manager has to have some level of project management acumen, the Project Manager needs to step up and understand the business purpose, drivers and business risks and opportunities.

• Be ready to support the business through change• Add value by collbaorating across interdependent

projects


Understanding Project Management Capability & Maturity


Observation

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Basis of strong capability:• Effective project managers (good technical

and soft skills with demonstrated experience)

• Standardised processes (for consistency)• Standardised tools (for efficiency)


Capability Development

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… maturing together in step


The 5 Levels of Maturity

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Level 1 – awareness of process

Level 2 – repeatable process

Level 3 – defined process

Level 4 – managed process

Level 5 – optimized process

Processes not documented , terminology not standardised

Basic practices established, and processes are developing, some are used consistently

Processes documented and integrated to some extent

Processes repeatedly applied and measured against overall performance measurement framework.

Continuous process improvement is being enabled.


Developing Project Management Capability

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• Goes to the heart of the business – it impacts how customers are served, how products are developed, how the business is managed

• An incremental process with a carefully designed change management program

• Master the people aspect of change

• Analyse before you optimise - Identify the opportunities, conduct benchmarking exercises and capability maturity assessments


Developing Project Management Capability

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• Strategies to enable early adoption and create ownership within the project management community

• Consider impact on organisational design, job or role definition, performance management, training needs,

• Design, deploy & standardise to drive efficiency and effectiveness

• One size does not fit all - develop suitable processes for the organisation, not all organisations need to have world class project management capabilities


Soft Skills for Program and Project Managers


Leadership versus Management

What &Why

How &When

Program Manager

Project Manager

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70% Art and 30% Science


Humans are More Complex than Projects

“If you have to actively manage the people, they are the wrong people.”

C. Rajan

Leadership is the art of getting someone else to do something you want done because they want to do it.

Eisenhower, Dwight D.

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The Project Team

Manage Up and Down


2. Get the Right People on the Bus

People are not your most important asset. The RIGHT people are.

Get the right people on the bus, the wrong people off the bus, and the right people in the right seats.

“Good to Great”, Jim Collins

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So Why Manage Stakeholders?

“Insufficient involvement of stakeholders and infrequent communication with sponsors were identified as leading

causes of project failure”January 1996 the Gartner Group, “Project Management Skills: Avoiding Management by

Crisis”

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What’s in it for the busy PM?

Engaging the right people in the right way in your project, achieves the successful outcomes sought

Project level - minimises opposition, optimises support to deliver project’s outputs effectively

Program level – identify, respond to and communicate changing stakeholder requirements to your projects to

optimise value of project ‘outcomes’

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Positive Stakeholder Contributions

• Assist you to manage other “difficult” stakeholders• Endorse decision-making processes• Support change control processes• Model appropriate behaviours• Support the program and project teams

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Negative Stakeholder Influences

• Short-circuit agreed procedures• Circumnavigate change control processes• Bully other stakeholders• Offer destructive feedback or criticism• Not attend meetings• Lack urgency with sign-offs• Fuel and promote dissent

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Understanding the StakeholdersPower versus Preference

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Differentiating Needs from Wantsbased on 6 Human Needs Psychology (Source: Robbins 1991)

• Difficult stakeholder behaviours are often a consequence of reactive, unresourceful means of meeting Certainty and Significance. How can you help meet these needs?

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What To Communicate?

• Project requirements, success criteria• Benefits, short term wins• Scope, time, budget, quality• Project changes• Project baselines, progress and status reporting

to measure program performance• Project processes e.g., change control, sign-offs

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Communicate the Vision

“A vision has to be shared in order to do what it is meant to do: inspire, clarify and

focus the work.”

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Win their Hearts and Minds

Steps to Success

1. Have Clear Vision and Purpose2. Inspire by Communicating Vision and Purpose3. Have an Answer for What’s in it for me?4. Develop and Agree Positive Engagement Plan5. Monitor and Change and Keep up to Date6. Communicate Effectively

Source: Robbins (1991)

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Think Win-Win

• Four possible outcomes in every negotiation

• Highest leadershipideal is “win-win orno deal”

• Trust must be present• Takes courage

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Build Relationship Capital

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The Science of Persuasion

GetAgreement

Inform

Understand Needs and Concerns

Build Rapport

30 %

20 %

10 %

40 %

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Rapport

“The ability to enter someone else’s world, to make them feel you understand them, and that you

have a strong common bond”

– Dictionary definition – “mutual trust”– Trust - ‘an absence of vulnerability’– Rapport - a ‘mutual absence of vulnerability’

Build Rapport

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Empathy and Human BehaviourHabitual Versatile

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7. Make The Project Fun!

• Create variety and spontaneity• Organise social events e.g.

birthday lunches, Friday afternoon drinks, team sports

• Create an uplifting, conducive work environment

• Empathise when team is working long hours or away from home

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