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APMG-International Webinar

The Benefits of Implementing a Project Management Methodology

Wednesday 7 August 2013 / 11:00 EDT (New York, US)

Presented by Russ McDowell, Russona Consulting

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Agenda

• Welcome & introduction– Ronn Faigen, General Manager, APMG-US

• The Benefits of Implementing a Project Management Methodology – Russ McDowell, Russona Consulting

• Q&A

• More Information

• Close

Methodology vs. Framework

• Methodology is the “what you do”

• Framework is the “how you do it.”

• PMBOK is a framework– PMBOK 5th Edition, Page 2, Section 1.1

“This standard is a guide rather than a specific methodology. One can use different methodologies and tools (e.g. ….PRINCE2) to implement the project management framework.”

WHAT METHODOLOGY ARE YOU USING?

WHY IS A METHODOLOGY IMPORTANT?

Your presenter…

Russ McDowell•Consultant in program & project management

•Accredited PRINCE2 trainer – lead instructor at Algonquin College

•Practitioner-level certifications in portfolio, programme and project management

•Past Chair of PMI’s OPM CoP with 17,000+ members worldwide

Change is Imperative!

“It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.” -- Charles Darwin

Outcome?

Impact of PM on Business**

• 97% of respondents agreed PM is critical to business performance and organizational success

• 94% agreed that project management enables business growth

** PWC – 2012 “Insights and Trends: Current Portfolio, Programme, and Project Management Practices”

Results Are Not Encouraging!

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How do we get better?

Ad Hoc

Standardize

Measure

Control

Improve

Methodologies

Why do we need one?•Common understanding of steps / roles•Reduce variances in project results•Efficiency of implementing projects•Improve maturity of PM processes

Options for sourcing a methodology•Custom develop for our organization•Outside the organization

Enterprise Wide Benefits

Common approach on all projects

•Sharing resources across multiple initiatives

•Ease of comparing across the enterprise

•Common base of training, reports, analysis

•Adapting / learning across the enterprise

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How Does PRINCE2 Compare?

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Creating Value and PRINCE2“PRINCE2 is perceived as a very robust, comprehensive and pragmatic project management framework.”

Major strengths cited included:•Role of the business case•Extensive guidance on governance•Tolerance concept in 6 key areas•Definition of roles and responsibilities•Product-based planning•Delegation of responsibilities•Tailoring and Embedding

PRINCE2 Enterprise Benefits:

• Proven over • a long period of time, • a wide variety of projects, • over a number of industries• by a large number of organizations

• Large pool of resources to draw upon

• Large support base for maintaining the IP• Community of practice

Board Member’s Benefits

• Controlled Start, Progress & Closure

• Regular Reviews

• Defined Communication Channels

• Management by Exception

Project Manager’s / Team Benefits

• Clear Terms of Reference

• Defined Structure

• Manageable Stages

• Resources Committed

• Brief Reports to Management

• Focused Meetings at Key Decision Points

PRINCE2 Structure / Features

Principles

Tailoring

Processes Themes

PROJECT ENVIRONMENT

PRINCE2® PROCESSES

PRINCE2® PRINCIPLES

ProgressBusiness

CaseOrganization

Quality

PlansRisk

Change

PRINCE2® THEMES

Themes

Fig 1.2 – PRINCE2, 2009 Edition© Crown copyright 2009. Reproduced under licence from OGC

PRINCE2 Processes

© Crown Copyright 2009. Reproduced under Licence from OGC. Fig 11.1

Pre-project

SU

SB CP

IP

Initiationstage

Subsequentdelivery stage(s)

Final deliverystage

Directing

Managing

Delivering

Directing a Project

SB

Controlling a Stage Controlling a Stage

Managing Product Delivery Managing Product Delivery

KeySU = Starting up a ProjectIP = Initiating a ProjectSB = Managing a Stage BoundaryCP = Closing a Project

1. PM Team Structure.

Fig 5.3 – PRINCE2, 2009 Edition

© Crown Copyright 2009. Reproduced under Licence from OGC

2. Management by Exception

Delegation within limits / Stages

•Tolerances

•Exceptions

3. Project Management Components

Supporting the implementation of the methodology, there are a series of documents that are required. They are broken down into 3 categories:

1.Baseline management products

2.Records

3.Reports

4. PRINCE2 Techniques#1 - Product-based Planning involves:

•Identifying what products are needed

•Defining the form and content of each product

•Determining the sequence in which each product should be produced

•Defines the quality criteria which each product must meet.

#2 - Quality Review

•Preparation

•Quality Review Meeting

•Follow-on Actions

•Particularly suitable for the quality testing of any product which takes the form of a document.

Adopting PRINCE2

Making the methodology work in your organization:•Develop PRINCE2 capability•“Embedding” PRINCE2•“Tailoring” PRINCE2•Organization change

Shortages – Enterprise Viewpoint**

Impact from talent shortages and mismatches:

•1 in 4 CEOs said that they were unable to pursue a market opportunity or cancel / delay a strategic initiative due to talent.

•1 in 3 concerned skill shortages impacted their ability to innovate effectively

** PWC – 2012 “Insights and Trends: Current Portfolio, Programme, and Project Management Practices”

Suggestions from PRINCE2 Study*

• Critical importance of ongoing education and training– Not just classroom, also workplace coaching / mentor

• Recognition of the importance of tailoring and embedding

• Shift in emphasis from project to organizational context– Educate project sponsors, project board members

and other senior executives

* QUT – Aug. 2010 “Creating Value in Project Management Using PRINCE2”

PRINCE2 Training and Certification

Foundation Level – 3 days•Understand all roles, principles, themes, processes, techniques

Practitioner Level – 2 days•Measure ability to apply PRINCE2 to managing a non-complex project in an environment supporting PRINCE2

Integrated Family of Best Practices

Portfolio, Programme and

ProjectManagement

Maturity Model(P3M3™)

PRINCE2™ (project)

MSP™ (programme)

PRINCE2™Maturity Model

(P2MM)

Models Guides

Common Glossary

Portfolio Guide (PfM)

Portfolio,Programmeand Project

Office(P3O®)

Gateway® M_o_R® ITIL®

© Crown Copyright 2009. Reproduced under Licence from OGC.Fig 1.3 – PRINCE2, 2009 Edition

Summary

PRINCE2

•Is a foundation for “doing projects right”

•Provides an internationally proven approach to implementing a project management methodology

•And PMBoK Guide are complementary

•Is built on a family of “Best Management Practices”; addressing all levels of organizational needs

QUESTIONS & ANSWERS

More Information

• APMG-International website:– www.apmg-international.com

• PRINCE2– www.prince-officialsite.com

• Russona Consulting– www.russona.com

– www.linkedin.com/company/russona-consulting-corp-

http://www.linkedin.com/company/apmg-international @APMG_Inter