Project Management 2.0. An Introduction and Getting Started

Transcription

1 Project Management 2.0 An Introduction and Getting Started February 20, 2019 PMI NYC Chapter

2 John Bowen Your bio information Executive Consultant, Computer Aid, Inc. (CAI) Founder and President Management Envision CIO PPL Global Corporation ( ) Executive Faculty Lehigh University, Iacocca Institute Adjunct Professor Lehigh University College of Business & Economics Global Business, International IT Management, Project Governance, Project Leadership, Project Sponsorship Degrees: Mathematics, Computer Science, Symbolic Logic DePauw University ~40 years experience in Executive Leadership, Global IT Management, Technology Management, Strategic Planning, IT Governance, IT Due Diligence, Complex System Implementation, Mergers and Divestitures Program management experience: Global projects in 25+ countries in North America, Europe, Latin America, Asia, Africa 2

3 John Bowen Global Project Experience 3 3

4 Computer Aid, Inc. Lehigh Valley, PA based privately-held corporation, founded in ,900 associates: 6 continents, 20 countries, 38 US states IT services: Application Development, Application Support, Management Consulting, System Engineering, Project Management, Process Engineering, IT Resourcing, Robotic Process Automation (RPA), Autism to Work 2018 revenue: $600M IT Metrics and Productivity Institute (ITMPI) IT knowledge center Advanced education content in project management, Six Sigma, CMMI, ITIL, software quality and testing PDU/CDU courseware IT leadership newsletters 4 4

5 Projects drive business innovation and change; in fact, the only way organizations can change, implement a strategy, innovate, or gain competitive advantage is through projects. The next untapped candidate for significant improvements in a company s pursuit of competitiveness is the project activity of the organization. Reinventing Project Management 5 5

6 The day-to-day running of a business will soon be carried out through automation and robots and is already done so in many instances. Projects have become the essential part of any organization. by 2025, senior leaders and managers will spend at least 60% of their time selecting, prioritizing and overseeing the execution of projects. This massive disruption is impacting how organizations are managed. Every aspect of our lives is becoming a set of projects. CIO Magazine 6 6

7 This presentation borrows content from: Harold Kerzner: Project Management 2.0: Leveraging Tools, Distributed Collaboration, and Metrics for Project Success and presentations at the PMI - Great Lakes Chapter Professional Development Day, October 16, 2015 Harold Kerzner John Bowen Dennis Bolles Ty Sarkar 7 7

8 Project Management 2.0 Agenda Project Management 1.0 Definition of PM 1.0 Project Success Criteria Limitations of PM 1.0 Project Management 2.0 Definition of PM 2.0 Benefits and Advantages of PM 2.0 Why IT is Most in Need of PM 2.0 Driving Forces for Better Metrics The Role of the PMO Early Adopters of PM 2.0 Getting Started with PM 2.0 Suggested Reading Questions 8

9 PROJECT MANAGEMENT 1.0 9

10 The History of Project Management Stone Age Bronze Age Iron Age 9000 BCE 3300 BCE 3000 BCE Prehistory History 10 10

11 The History of Project Management Pyramids Stonehenge Roman Medieval Great Machu Aqueducts Cathedrals Wall Picchu 2550 BCE 2000 BCE 100 BCE

12 The History of Project Management Gantt WW I Empire WW II Apollo PC MS Web Chart State Mission Project Henry Gantt ( ) 20 th Century 21 st 12 12

13 Actual Gantt chart defining plan for construction of the Empire State Building (1930) Building the Empire State, page

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16 WHAT IS RIGHT WITH PM

17 Assumptions of PM 1.0: Planners can develop a detailed plan that will remain a valid baseline for the duration of the project Team members will commit to meeting the deliverables in the plan Team members will execute the project in accordance with the plan Deviations from the baseline plan will be treated as exceptions that must be corrected Project success is measured by adherence to scope, cost, and schedule 17 17

18 Strengths of PM 1.0: PM 1.0 is disciplined Many of today s projects share predictable contexts and unchanging assumptions over the life of the project Discipline of PM 1.0 forces a team to produce detailed specifications, complete rigorous testing, and prepare thorough documentation 18 18

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20 WHAT IS WRONG WITH PM

21 Definition of a Project A temporary endeavor undertaken to create a unique product, service or result. PMBOK Guide Fifth Edition, Glossary 21 21

22 Definition of Project Success Completion of the project within the triple constraints of time, cost and scope. PMBOK Guide Fifth Edition, Glossary 22 22

23 Project Management 1.0 Schedule 23 23

24 Weaknesses of PM 1.0: PM 1.0 is not optimized for agility PM 1.0 does not engage all available knowledge PM 1.0 is viewed as operational, not as strategic PM 1.0 does not adequately address the subjective (human) dimensions of all projects 24 24

25 The ten dimensions of Project Management Time management (schedule) Cost management (budget) Scope management Quality Human resources Risk Procurement (contractors) Integration Communication Stakeholder management 25 25

26 RISK MGT. STAKEHOLDER MGT. QUALITY MGT. COMMUNICATIONS MGT. BUSINESS & STRATEGY HUMAN RESOURCE MGT. POLITICS PROJECT VALUE MGT. INTEGRATION MGT. CULTURE & RELIGION PROCUREMENT MGT. SCOPE MGT. COST MGT. TIME MGT. METRICS Adapted from PMBOK Guide Fifth Edition, Figure 3-1, p

27 The two objective (quantifiable) dimensions of Project Management for which metrics and tools are commonplace are almost never the cause of project failure Time management (schedule) Cost management (budget) Scope management Quality Human resources Risk Procurement (contractors) Integration Communication Stakeholder management 27 27

28 The eight subjective (human) dimensions of Project Management - are responsible for 85% of all project failures Time management (schedule) Cost management (budget) Scope management Quality Human resources Risk Procurement (contractors) Integration Communication Stakeholder management Stephen B. Johnson, NASA historian and engineer 28 28

29 1) Boston Big Dig highway tunnel Communication management 2) Boeing 787 Dreamliner Procurement management 3) Denver airport baggage handling system Human resource management 4) Lockheed Martin F-35 Lightning US military joint strike force fighter Integration management 29 29

30 PROJECT MANAGEMENT

31 PM 2.0 = PM Distributed Collaboration Project Management Kerzner 31 31

32 Collaboration Governance Metrics and KPIs Project Leadership Continuous Status (Dashboard) Continuous Measurement Project Management

33 Project Management 2.0 Key Components Project Governance Project Selection Project Execution Feedback Process to obtain status/issues Stakeholders Collaboration Metrics Key Performance Indicators (KPIs) Early Warning Signs (EWS) Monitoring Dashboards(s) (passive) Alerts (proactive) Leadership Executive Sponsor Project Manager 33 33

34 Project Management 2.0 Key Characteristics Business value will be the sole justification for project inception and continuation Frameworks will replace methodologies Business value will be delivered continuously via agile development and interim states Teams will be empowered (shared global awareness and self-synchronization) Metrics will be dynamic (changing by phase, different metrics for each sponsor) 34 34

35 PM 1.0 Definition of a Project A temporary endeavor undertaken to create a unique product, service or result. PMBOK Guide Fifth Edition, Glossary 35 35

36 PM 2.0 Definition of a Project A collection of realized and sustainable business value. Harold Kerzner / John Bowen 36 36

37 PM 1.0 Definition of Project Success Completion of the project within the triple constraints of time, cost and scope. Project Management Institute - PMBOK 37 37

38 PM 2.0 Definition of Project Success Achieving the desired business value within the bounds of competing constraints. Project Management Kerzner 38 38

39 Project Management 1.0 Schedule 39 39

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41 COMPARISON BETWEEN PM 1.0 AND PM

42 Factor PM 1.0 PM 2.0 Project approval process Minimal PM involvement Mandatory PM involvement Types of projects Operational Operational and strategic Sponsor selection criteria Overall project sponsorship From funding organization A single person acting as a sponsor Required business knowledge Committee governance Planning Centralized Decentralized Project requirements Well-defined Evolving and flexible WBS development Top down Bottom up and evolving 42 42

43 Number of constraints Factor PM 1.0 PM 2.0 Definition of success Time, cost and scope primarily Time, cost and scope Competing constraints Creation of business value Scope changes Minimized Possibly continuous Amount of documentation Communication media Project health checks Extensive Reports Optional Minimal Dashboards Mandatory Type of project team Co-located Virtual or distributed 43 43

44 Customer involvement Factor PM 1.0 PM 2.0 Organizational project management maturity Executive s trust in the project manager Speed of continuous improvement efforts Project management education Life-cycle phases Optional Optional Low level of trust Slow Nice to have, but not necessary Traditional life-cycle phases Mandatory Mandatory High level of trust Rapid Necessary, and part of life-long learning Investment life-cycle phases 44 44

45 IT IS MOST IN NEED OF PM

46 IT Project Management Success is Abysmal US Dept of Defense Integrated Human Resource System (DIMHRS) Delivered no functionality; 199% original cost UK s Fire Control Project 11% functionality; 391% original cost California Court Management System 10% functionality; 214% original cost US Social Security Administration Disability Case Processing System No functionality; 100% original cost British Columbia Integrated Case Management System 30% functionality; 100% original cost Spectrum IEEE Org 46 46

47 100% 90% 80% 70% 60% 50% 40% Failed Challenged Successful 30% 20% 10% 0% Failed 18% 19% 24% 21% 18% 19% Challenged 53% 46% 44% 42% 43% 52% Successful 29% 35% 32% 37% 39% 29% IT Project Success Rate Standish Group International, Chaos Report 47 47

48 PROJECT LEADERSHIP 48 48

49 Successful projects are led, not managed. Great Project Management 49 49

50 You cannot manage a project to success; you must lead a project to success. John Bowen 50 50

51 Project Management Methodology Process Project Plans Status Reports Project Meetings Software Skills Time Tracking Issues Tracking Project Leadership Creating Alignment Communication Tenacity Focus Motivation Inspiration Action Energy 51 51

52 DRIVING FORCES FOR BETTER METRICS 52 52

53 Types of Metrics Traditional Metrics Intent Primarily focus on where we are today Key Performance Indicators Value-Based Metrics Early Warning Signs Extrapolate the present into the future to tell us where we will end up A combination of metrics and KPIs that tell us the growth of value as the project progresses Indicators that foretell likely (or inevitable) project failure unless critical success factors are corrected 53 53

54 Our research has identified the top 53 causes of project failure No technical factors made the top 40 Leon Kappelman, Ph.D, University of North Texas 54 54

55 Leon Kappelman, Ph.D, University of North Texas 55 55

56 Investment Life-Cycle Initiation Tracking Value Determination Idea Generation Project Approval Project Planning Delivery Benefits Realization Value Analysis Project Life-Cycle 56 56

57 Deployment on time / budget Adoption for the greater good Effective governance Simple decision making Team effectiveness Goal alignment across organization Talent management Problem solving Celebration and recognition Trust Clear roles and responsibilities Win / win conversations Communication Collaboration Leadership behavior Work / life balance 57 57

58 Project Management 2.0 Better Metrics Building a metrics management program cannot be done overnight. Executive support is necessary from the start. Executive support must be visible. Actions must support words. Without effective metrics, we tend to wait until the project is way off track before taking action. By that time, it may be too late to rescue it. With effective metrics, conflicts among team members and stakeholders are expected to decrease

59 Project Management 2.0 Better Metrics Good metric management programs can increase the chances for successful project completion Stakeholders are expected to make informed decisions and informed decision-making requires more meaningful metrics We need metrics that allow project governance to make decisions based upon evidence rather than guesses Metrics allow us to better manage all competing constraints, e.g., time, cost, scope, risk, customer satisfaction, safety, etc

60 Project Management 2.0 Better Metrics With PM 2.0, all project personnel will have metrics at their fingertips Status reporting will be paperless and continuous (savings estimated to be 20% of total project cost) Project status data will be transmitted on time and from anywhere in the world via mobile devices such that value and performance can be verified, continuously Metrics information must be shared rapidly 60 60

61 Project Management 2.0 With better metrics it is easier for the stakeholders to focus upon and agree to the right target and business alignment it is easier to evaluate the impact of tradeoffs if a change in direction is needed stakeholders have a much more accurate snapshot of project status now and possibly in the future we have more meaningful project health checks the number of conflicts among team members and with the various stakeholders are expected to decrease 61 61

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63 PROJECT STATUS DASHBOARD 63 63

64 Because each stakeholder may have different needs, dashboard reporting systems allow the project manager to prepare customized dashboards to satisfy each stakeholder s needs Effective dashboards can significantly reduce the time for consensus decision making Dashboard reporting of metrics saves time and cost and allows us to get closer to paperless project management practices Effective dashboard communications makes it easier to get cooperation when using virtual teams 64 64

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67 THE VITAL ROLE OF THE PMO 67 67

68 Collaboration Governance Metrics and KPIs Project Leadership Continuous Status (Dashboard) Continuous Measurement 68 68

69 The Role of the PMO in PM 2.0 Adoption The scope of the PMO must be the entire organization The PMO must focus on corporate and strategic issues, not functional or process improvement The strategic PMO may also support portfolio management efforts Capacity planning Project prioritization Project selection recommendations (to senior management) 69 69

70 The Role of the PMO in PM 2.0 Adoption Provide a structure for selecting the right projects Allocate resources to the right projects Align portfolio decisions to strategic business goals Create project ownership by project sponsors Train PMs on PM 2.0 components Promote project leadership Educate executives on the role of Project Sponsor 70 70

71 The Role of the PMO in PM 2.0 Adoption The PMO must put the metrics program in place and maintain ownership The PMO maintains responsibility for corporate-wide metrics education There may be a metric owner for each metric The PMO must conduct metric benchmarking A new position in the PMO is suggested: Chief Performance Officer 71 71

72 EARLY PM 2.0 ADOPTERS 72 72

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75 Characteristics of NASA Projects Complex projects involving combination of hardware, software, leading edge science Collaboration with international space agencies (involving multiple cultures, languages, legal systems, oversight, etc.) High degree of risk Multiple layers of governance (multiple stakeholders) NASA Space Flight Program and Project Management Handbook 75 75

76 NASA projects have continued to make progress in maturing technologies prior to the preliminary design review. This year, 63 percent of projects met this standard, up from only 29 percent of projects in As NASA continues to undertake more complex projects it will be important to maintain heightened attention to best practices to lessen the risk of technology development and continue positive cost and schedule performance. NASA projects are maintaining steady performance toward meeting GAO's best practices for design stability. GAO NASA Assessment, April 15,

77 GAO NASA Assessment, March

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79 GETTING STARTED WITH PM

80 Project Management 2.0 Steps to Take Today Implement project dashboards for status reporting and eliminate (or at least reduce) paper status reports Implement a process for measuring the subjective dimensions of every project as an early warning system Define the success criteria for each project and report on those metrics to all stakeholders Identify the business value created by every project and measure/report progress and results Educate executives in the role of project sponsor 80 80

81 Project Management 2.0 Steps to Take Today Identify or define interim states for every project and modify project plans to include value-added deliverables produced at least quarterly Implement a collaboration tool to facilitate project team interaction, to report and track issues and to provide status to project sponsors and stakeholders Implement a leadership development program for all project managers 81 81

82 PM 2.0 Component 1.Project Governance 2.Project Metrics 3.Team Collaboration 4.Stakeholder Feedback 5.Proactive/Continuous Status Monitoring 6.Project Leadership Supporting System Functionality Project/Portfolio Selection Project Methodology and Process Compliance Phase Gate Measurement Deliverables Verification Metrics, KPIs and EWS Selection Team Input Linked to KPIs/EWS Continuous Stakeholder Input Direct Input to PM from Team Members Issues Logging and Tracking Scheduled Questionnaires to Project Stakeholders (by Phase and by Role) Triggered Questionnaires by Project Status Dynamic Project Dashboards Configurable Displays and Alert Thresholds PM Best Practices Corrective Recommendations 82 82

83 SUMMARY: PM

84 Project Management 2.0 Will be used increasingly for most projects, especially large, complex projects Will be embraced by the PMI and will be formalized in future editions of the PMBOK Will adapt to support Management 2.0, i.e., democratic, participative, collaborative, interactive Will leverage the collaboration tools of Web 2.0 Will require a stronger emphasis on program and portfolio governance to ensure projects deliver business value 84 84

85 Project Management 2.0 Acknowledges and supports flexible project management by abandoning rigorous, and inflexible, PM methodology Supports rapidly evolving business climates and changing priorities Requires a transition from Project Management to Project Leadership implying a significant change in the traditional role of the project manager Requires greater involvement of executive governance Will improve project success rates 85 85

86 SOURCES 86 86

87 Bibliography and recommended reading: Project Management 2.0: Leveraging Tools, Distributed Collaboration, and Metrics for Project Success, Harold Kerzner, PhD The Strategic CIO: Changing the Dynamics of the Business Enterprise, Phil Weinzimer Early Warning Signs in Complex Projects, Ole Jenny Klakegg, PhD, Terry Williams, PhD, Derek Walker, PhD, Bjorn, Andersen, PhD, Ole Morten Magnussen, PhD Reinventing Project Management, Aaron Shenhar, Dov Dvir Project Sponsorship, David West Now It Can Be Told: The Story of the Manhattan Project, Leslie R. Groves The Power of Project Leadership, Susanne Madsen Building the Empire State, Carol Willis The Visual Display of Quantitative Information, Edward R. Tufte 87 87

88 Bibliography and recommended reading: (Stanford University Advanced Project Management Program) This presentation is copyrighted by John M. Bowen, 2019 Animation template by PresenterMedia 88 88

89 Questions? More information? John M. Bowen John M. Bowen Executive Consultant Phone: Computer Aid, Inc Ridgeview Drive Allentown, PA