Project Management 2.0/3.0: Planning for the Future of Project Management. Dr. Harold Kerzner, Ph.D. International Institute for Learning, Inc.

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1 Project Management 2.0/3.0: Planning for the Future of Project Management Dr. Harold Kerzner, Ph.D. International Institute for Learning, Inc.

2 Topic PART 1: CHANGING TIMES: EXECUTIVE APPRECIATION FOR PROECT MANAGEMENT GROWS

3 Executive Acceptance Criteria PM 1.0 Customer-driven project management PM 2.0 Organizational capacity planning What are some of the factors that led to executive acceptance of PM 2.0 and PM 3.0? PM 3.0 Strategic alignment of projects

4 An Executive View of the Benefits of Using Project Management PM 1.0 The existence of fragmented project management (as needed) PM 2.0 PM 2.0/3.0 provides focus, creates business value and drives the business; project management is now seen as mandatory for corporate growth. We are now managing our business by projects PM 3.0 Project management is seen as a strategic competency for survival

5 What Executives Expect from Project Managers PM 1.0 Low levels of expectation; more mistrust than trust PM 2.0 Some trust with regard to project and business decision making Have executives changed the level of expectations they have of project managers? PM 3.0 High levels of expectation; often expected to do the impossible

6 Topic PART 2: SOME ISSUES WITH THE GROWTH OF PROJECT MANAGEMENT 2.0 AND 3.0

7 Time for Implementation PM 1.0 Years based upon customer pressure and executive support PM 2.0 Six months to one year if a PMO leads the effort Is there a standard amount of time needed for implementation to reach the next level? PM 3.0 Three to six months if a PMO leads the effort

8 Understanding PM 2.0/3.0 PM 2.0/3.0 is neither a magical quick fix for project problems nor a Band-Aid. It is a cultural change in the way that project management must work.

9 PM 2.0 and Web 2.0 We can select from a world of project-specific apps that can display data for a given project.

10 Security for the Apps PM 1.0 Minimal security; classifying the documentation as necessary PM 2.0 Security for individual apps and some mobile devices How do we provide security for the critical information on the apps? PM 3.0 Using a highly secured company intranet

11 PM 2.0/3.0 Issues Can a large metric library cause headaches? (i.e., metric mania)

12 Use of Metric Owners PM 1.0 Only the triple constraints metrics were important PM 2.0 PMOs control growth in competing constraints metrics Who takes the lead in metric identification, evaluation, measurement and reporting/display? PM 3.0 Growth in use of metric owners as number of metrics increases

13 Solutions to Metric Mania PM 1.0 Not necessary because of the use of just time, cost and scope PM 2.0 Attempts to balance between too many and too few metrics Can metric owners and the PMO work together to create meaningful metrics that everyone will understand and use? PM 3.0 Distinguishing between a good and bad metric is a necessity

14 PM 2.0/3.0 Issues How difficult will it be to differentiate between a good and bad metric?

15 PM 2.0/3.0 Issues Can information overload occur in PM 2.0 and 3.0 if metric mania is not controlled?

16 Risks of Information Overload PM 1.0 Almost nonexistent; more common to have not enough data PM 2.0 Too much data; wrong metrics, poor measurements, and costly What are the risks if we have too much data? PM 3.0 Mistrust of data; information not used to make informed decisions

17 Types of Project Management Metrics PM 1.0 Metrics based exclusively upon the triple constraints PM 2.0 Competing constraints and some project business-based metrics How have project management metrics changed over time? PM 3.0 Value-reflective metrics and strategic portfolio metrics

18 Metric Measurement Techniques PM 1.0 Rule of Inversion; select the easiest metrics to measure PM 2.0 Growth in competing constraints and measurement techniques Is it possible that today we can measure anything? PM 3.0 Growth in measuring value and some of the intangibles

19 Determining the Number of Metrics/KPIs PM 1.0 Restricted to time, cost and scope PM 2.0 Metric mania grows; difficulty in selecting the project metrics How do we shop for the right number of metrics for a project? PM 3.0 Optimization of the correct number of project metrics

20 How Workers React to New Metrics PM 1.0 Triple constraints; easy to stay within one s comfort zone PM 2.0 Removal from one s comfort zone; metric naysayers appear Why is there resistance to using new metrics? PM 3.0 Willingness to accept and adapt to constantly changing metrics

21 Hiding Poor Performance With PM 2.0 and PM 3.0, workers can no longer hide under fabricated or fudged data.

22 Metric Management Programs PM 1.0 Metric management programs were non-existent PM 2.0 PMOs help identify new metrics; minimal executive involvement Who has the ultimate responsibility for building a metrics management program? PM 3.0 PMOs have total responsibility; mandatory executive support

23 Walk the Talk Executive support for metrics management programs must be visible. Actions must support the words.

24 Topic PART 3 PROJECT MANAGEMENT TOOLS, METHODOLOGIES AND FRAMEWORKS

25 The Project Management Toolbox PM 1.0 The earned value measurement system PM 2.0 Recognizing the need for more metrics and dashboards What tools are contained in the project manager s toolbox? PM 3.0 A variety of tools to select from and customized to the project

26 Project Management Methodologies PM 1.0 Forms Checklists Earned value measurement using only time and cost metrics; EVMS PM 2.0 Guidelines Templates What are the different types and components of project management methodologies? Enterprise methodologies that include business elements (EPM) PM 3.0 Creation of value measurement methodologies (VMM)

27 A Comparison: EVMS, EPM and VMM Variable Time Cost Scope Quality Risks Tangibles Intangibles Benefits Value Tradeoffs EVMS EPM VMM

28 From Methodologies to Frameworks PM 1.0 EPM Methodologies: based on rigid policies and procedures PM 2.0/3.0 EPM Frameworks: forms, guidelines, check-lists and templates

29 Performance Reporting PM 1.0 Progress Reports Time at completion and cost at completion Status Reports Forecast Reports PM 2.0 Business metrics related to the project and portfolio of projects PM 3.0 Has the content of forecast reporting changed? Projections on benefits and value at completion

30 Organizational Reporting of Project Management Performance PM 1.0 Reporting to the sponsor and the lowest level in the organization PM 2.0 Performance reporting to PMOs, middle and senior management Who now asks to see project performance information, especially benefits and value? PM 3.0 Reporting to the corporate board room

31 Topic PART 4 PROJECT MANAGEMENT DASHBOARDS

32 Creating the Dashboards PM 1.0 Nonexistent; time card reporting PM 2.0 Reliance on external contractors for dashboard development PM 3.0 Who creates the dashboards? Internally developed dashboards; hiring of infographics designers

33 Selecting an Infographics Designer Selecting the right infographics designer is critical. A knowledge of project management would certainly be helpful.

34 Project Management Dashboards PM 1.0 Very limited use of dashboards; primarily financial dashboards Rule #1: Rule #2: Rule #3: Rule #4: Are there rules for dashboard design efforts? PM 2.0 Growth in use of dashboards; reliance on external contractors PM 3.0 Growth in use of dashboards; internally developed dashboards

35 Rules for Dashboard Design and Layout Some rules exist for dashboard design and layout: Rules for selecting the right artwork/image Rules for screen real estate Rules for artwork placement Rules for color selection Rules for accuracy of information (2D vs. 3D) Rules for aesthetics

36 How the Mind Works Even the best metrics and dashboards cannot compensate for the ways that people process information.

37 Topic PART 5 PROJECT GOVERNANCE AND STAKEHOLDER MANAGEMENT

38 Project Management Governance PM 1.0 Project sponsorship is seen as executive project management PM 2.0 Defining the sponsor s role; growth of committee governance Do governance personnel understand their job? PM 3.0 Defining the role of committee governance teams

39 Satisfying Stakeholders Needs Because each stakeholder may have different needs, dashboard reporting systems allow the project manager to prepare customized dashboards to satisfy each stakeholder s needs.

40 The Need for Global Information Systems Critical question: How do we handle multinational stakeholders where culture and politics may be issues?

41 Stakeholder Relations Issues with PM 2.0 and PM 3.0 What happens if stakeholders disagree on the meaning of the metric information?

42 Stakeholder Relations Issues with PM 2.0 and PM 3.0 Project managers must make sure that stakeholders understand the meaning of the metric information.

43 Topic PART 6 THE NEED FOR REVISITING PROJECT MANAGEMENT EDUCATION

44 Project Management Certifications PM 1.0 PMP Program Mgt. Nice to have but not necessary PM 2.0 Risk Mgt. Agile How many certifications are actually necessary? Seen as a necessity especially for competitive bidding PM 3.0 Business process certifications and use of Certification Boards

45 Recovery Project Management PM 1.0 Replacement of the project manager or kill the project PM 2.0 Recognizing the importance of periodic health checks Is special leadership needed to improve the chances for recovering a failing project? PM 3.0 Recognizing the skills needed for recovery project management

46 Project Management Knowledge Areas PM 1.0 Heavy on technical aspects and very light on interpersonal skills PM 2.0 Growth in interpersonal skills and the PMBOK Guide areas of knowledge What skills will project managers need in the future? PM 3.0 A heavy focus on international business skills; growth of PM 4.0

47 Topic PART 7 THE GROWTH OF PM 4.0

48 Types of Values Economic Values Cultural Values Behavioral Values Values Religious Values Aesthetic Values Political Values

49 Three Critical Components of Global Project Management Politics Culture Religion

50 Global Project Management Effective global project management practices will make the world smaller.

51 Major Benefit: More Global Partnerships

52

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