Next Genera?on of Project Management
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1 PMI Dallas January 2012 Got Your PMP? Now What? What s The Next Genera?on of Project Management Strategic Project Leadership Achieving Business Results In an Aaron J. Shenhar, Ph.D. Professor of Project and Technology Management CEO, The SPL Group and TLI Tel: (201) , ashenhar@splwin.com, and Changing World 1
2 The Increasing Share of Projects Operations Projects 1800s 1900s Time 2000s Industries, Companies, Society Agricultural society Industrial society Information society But Most Projects Don t Make it 2
3 The Story of Two Modern Projects Airbus A380 Boeing 787 The Challenge and Opportunity Importance Weakness Neglect Opportunity 3
4 But Most Projects Don t Make it Why? 4
5 Is it the Project Manager? Is it the Tools? INTD 5
6 Why Projects Don t Make it? Tradi?onal PM insufficient:» Focused on mee?ng?me and budget» Don t deal with changes & differences» Don t deal with business aspects PM is 80% art and 20% science. Project Management as a Science and an Art 6
7 It is Time to Turn the Art of Project Management into Science 20% Science WBS, GanY, PERT, CPM, PMBOK,. Current Perspec?ve Our Work 80% Art Uncertainty, Change, Context, Flexibility, Business Focus, Strategy, Mo?va?on, Leadership, Inspira?on, Integrity, Trust, Communica?on, Rate of Growth 7
8 Today s Mail 8
9 The Responsibility of the Project Leader (Why we do Projects?) Taurus 2 Taurus 1 9
10 Strategic Project Leadership The New Approach Projects are Done for Business Results You are the Leader, and Responsible for Project Business Results You are a Mini CEO! Combine strategic, opera?onal, and human sides of project leadership, and dynamically adapt them to the specific context What is Strategic Project Leadership Building on tradi?onal PM to transform project prac??oners into leaders who:» Deal with the strategic and business aspects of their project» Ar?culate a vision that inspires and mo?vates their project team» The goal is business results and beyer efficiency 10
11 Strategic Project Leadership The New World of PM Business Focus Visionary Leadership Dynamic Adapta?on Tradi?onal PM What the PM Discipline Says? What is the Reality? What s Missing? 11
12 Traditional Project Management Time Budget Scope Sydney Opera House Los Angeles Subway 12
13 Traditional Project Management Time Budget Scope Project Success is Multidimensional Project Success Efficiency Future Customer Business Team 13
14 The SPL Strategic Assets Project Requirements Commitments Resources Strategy Spirit Organization Processes Tools Project Strategy: The Missing Link Business Strategy! The Missing Link! Project Strategy! Project Plan! Project Strategy: Implementation! What to do and How to do it - to achieve the highest Competitive Advantage and the best Value from the project 14
15 Strategy Components Business Background Business Objective Why? What? How? Strategic Concept Product Definition Product Project Competitive Advantage/Value Why would the customer buy? Success and Failure Criteria Project Definition Strategic Focus Project Spirit Attitude Excitement Symbols Motivation Vision Behavior Values Social Activities 15
16 Project Leadership Through Spirit and Vision Vision: Exciting expression of goals & expectations Motto Is often part of a Vision Examples:» BMW A muscular car that wants to be driven!» 3M Sticks around» The Beam of Life. Building Your Project Spirit Exciting Vision Defining the Right Project s Values Symbols, Which Articulate the Vision Social Activities 16
17 Adaptive Project Organization and Process (One Size Does Not Fit All) Projects Differ Based on: Project Objec?ves/Goals Uncertainty Complexity Constraints Environment» 17
18 Classical Project Phases Initiation Planning Execution Transition Revise Design Revise Requirements Revise Plans The Project Diamond Technology Complexity Novelty Pace 18
19 The Impact of the NTCP Dimensions on Project Management Technology Complexity Later design freeze More design cycles Novelty Complex organization Formality Pace Less market data Later requirement freeze More requirement cycles Autonomy Time control The Story of Two Modern Projects Airbus A380 Boeing
20 Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform NTM NTW Fast/ Competitive Required style Actual style Time-Critical Blitz Dr = (Pl, HT, Ar, -) Da = (Pl, MT, Sy, -) Pace The 787 Project Strategic Project Leadership The New Approach Projects are Done for Business Results You are the Leader, and Responsible for Project Business Results You are a Mini CEO! Combine strategic, opera?onal, and human sides of project leadership, and dynamically adapt them to the specific context 20
21 What is Strategic Project Leadership Building on tradi?onal PM to transform project prac??oners into leaders who:» Deal with the strategic and business aspects of their project» Ar?culate a vision that inspires and mo?vates their project team» The goal is business results and beyer efficiency Strategic Project Leadership The New World of PM Business Focus Visionary Leadership Dynamic Adapta?on Tradi?onal PM 21
22 The SPL Planning Context Project Charter Mandate SPL Ini?a?on Document Project Charter Strategy, Spirit, Organiza?on, Processes, Tools Project Tradi?onal Plans SPL Initiation Document Project Plans SPL Business Results Product Development Company:» Market share of major products increased on average by more than 50% over 5 years Service Provider:» Investment in our stock turned $100 of share value into $2,100 over a 10- year period.» Revenues grew from $200 million to almost a billion dollars over the same period. 22
23 23
24 The SPL Programs The SPL Principles One Day Seminar 8 PDU The SPL Experience 3 ½ Day Workshop 30 PDU The SPL Programs in Dallas The SPL Principles One Day Seminar 8 PDU The SPL Experience 3 ½ Day Workshop 30 PDU Dates: February 1 February 4,
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