WELCOME. The 2018 Kerzner Lecture. International Project Management Day. and. November 1

Transcription

1 WELCOME to The 2018 Kerzner Lectre and International Project Management Day November 1

2 FEATURED SPEAKER Prof. Jeffrey Pinto, Ph.D. Andrew Morrow and Elizabeth Lee Black Chair in the Management of Technology. Lead faclty member for Penn State s Master of Project Management program. Athor and editor of over 23 books and 120 scientific papers. Two-time recipient of the Distingished Contribtion Award from the PMI (1997, 2001). PMI s Research Achievement Award in 2009 and International Project Management Association s Research Achievement Award in Conslted widely in the US and Erope on a variety of topics.

3 When the Unexpected Becomes the Expected Which Becomes the Accepted Jeffrey Pinto, Ph.D. Penn State University

4 Project Governance The se of systems, strctres of athority and processes to allocate resorces and coordinate or control activity in a project.

5 Means of Governance Throgh top-down methods that primarily involve pper management oversight. Throgh market or competitive mechanisms that allow comparison across projects. Throgh professional standards of best practices.

6 Dynamic Tension STANDARDS OF BEST PRACTICE NORMALIZATION OF DEVIANCE

7 Normalization of Deviance Space Shttle Colmbia disaster First Flight on 12 April, Total Flights 160 Crew Members 4,808 Earth Orbits DOZENS OF REPORTED CASES OF FOAM INSULLATION STRIKES AGAINST FUSELAGE Colmbia Destroyed on Reentry (1 Feb 2003)

8 Costa Concordia On Janary 13, 2012, the Carnival crise ship hit rocks off Giglio Island 32 of the 4,252 passengers were killed The corse was napproved bt tradition allowed for ship salte pblicity stnts

9 Costa Concordia Disaster Carnival directors not only approved, bt promoted the ship saltes as a convenient, effective marketing tool.

10 The Phenomenon? Nomalization of Deviance Well-intentioned organizations become desensitized to deviations from the norm. Unexpected becomes the expected which becomes the accepted. In the Colmbia example, inslating foam strikes became an accepted phenomenon of lanches. For Costa Concordia, risky ship saltes were the norm.

11 Or Stdy Interviewed 21 Project Managers in 3 Organizations 1) Mltinational EPCM, 2) Compter and IT Contractor, 3) Medical Device Manfactrer Consider examples in yor organization of gradal processes throgh which nacceptable pm practices have become accepted and standardized. Search for Common Themes

12 How Does NoD Affect Project Management? Project Proposals and Strategic Misrepresentation Client/Contractor Relationships Planning and Schedling Dynamics

13 Normalization of Deviance (NoD) Effect #1 Project Proposals and Strategic Misrepresentation In pblic projects, it is the norm to low-ball estimates and bids in order to get a project on the books Lack of clarity in accontability makes it togh to find a clprit (and, hence, a fall gy ) Use of contractor scapegoating is a common side effect

14 Examples California High-Speed Rail 2008 estimate: $33 billion 2018 estimate: $200 billion and climbing Honoll s Elevated Rail Project Dear Mr. President, please cancel or project! Boston s Big Dig Olympic Games Bidding Rome s response: Thanks, bt no thanks

15 NoD Effect #2 Client/Contractor Relationships Where did the marriage fail? What does trst mean to them? To s? Getting rich on change orders is not a longterm relationship bilder One Case: Sales verss Engineering Decopling sb-grop rewards from the project s whole otcomes Another Case: Rival Camps Mentalities

16 In Practice, What Does This Dynamic Resemble?

17 NoD Effect #3 Planning and Schedling Dynamics Optimism bias Massaging the plan End date-driven schedles Sperficial risk management Undermining Good Faith Efforts to Develop Workable Plans Breeds Cynicism and Demotivation Telling the bosses what they want to hear

18 Implications? Up to 200% schedle and bdget overrns are viewed as the norm in many organizations. Or Project Management Practices are Fndamentally Self-Defeating Short-term reslts vs. Long-term relationships Ctting corners Willfl blindness to self-correction ( Bt it works fine this way!

19 Management, at all levels, in many organizations, creates, by their own choice, a world that is contrary to what they say they prefer and contrary to the managerial stewardship they espose Argyris, 1990

20 Three Organizational Failres Project nderperformance is a fnction of opportnistic behavior by key interests leading to reglar approval of non-viable projects Performance problems are the reslt of misaligned or nderdeveloped governance mechanisms Performance problems have, at their heart, competing project cltres

21 Echoes Fnctional Stpidity Incapacity or Disinclination to Critically Reflect on what we are Doing (Reflexivity) Refsal to Understand Why We are Doing It (Jstification) Refsal to Understand the Conseqences of Or Activities Beyond the Immediate Task at Hand (Sbstantive Reasoning)

22 So What s the Good News? These NoD Behaviors are Visible! Remember, these behaviors are not hidden; they are simply accepted We can Usally Link Case and Effect Doing this is leading to that Soltions May be Hard, bt They are Often Clear (and Measrable)

23 What is the Role for Governance? (1/3) Analyze Standard Operating Procedres May reqire fresh eyes The Inside View is not or friend! Edcate Organizational Members Remember: NoD has become accepted behavior Show why these behaviors are wrong (present evidence) Identify gaps between accepted and expected

24 What is the Role for Governance? (2/3) Clarify Standards Devil is in the details Who clarifies? What standards? E.g., PMI s Code of Ethics and Professional Condct Psh for Transparency Remember that NoD is, at the core, a failre of cltre

25 What is the Role for Governance? (3/3) Reward Compliance People aren t stpid; yo get what yo reinforce

26 Fndamental Qestions First: In the Governance of Projects, where does the Normalization of Deviance lead s? Second: What Role does the Politicization of Project Estimation and Control Play in Failre?

27 Fndamental Qestions Third: How do we Begin Charting a Path from the Present to the Intended Ftre? Who has to be on board? How do we gain by-in?

28 Thank Yo! Qestions? Jeff Pinto