Project Management 2.0/3.0: Planning for the Future of Project Management
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1 Project Management 2.0/3.0: Planning for the Future of Project Management By Harold Kerzner, Ph.D by Harold Kerzner, All rights reserved. 1
2 Topic PART 1: CHANGING TIMES: EXECUTIVE APPRECIATION FOR PROECT MANAGEMENT GROWS 2016 by Harold Kerzner, All rights reserved. 2
3 Project Management Drivers PM 1.0 Profits are seen as the driver for using project management What drives the need for project management? PM 2.0 We are managing our business by projects; growth in applications PM 3.0 Project management can deliver sustainable business value 2016 by Harold Kerzner, All rights reserved. 3
4 Motorola We began looking at our business from the viewpoint of its core processes As you might expect, project management made the short list as one of the vital core processes. (Martin O Sullivan, retired Vice President, Motorola) 2016 by Harold Kerzner, All rights reserved. 4
5 American Greetings Through project management, we ve learned how to make fact-based decisions. Too often in the past we based our decisions on what we thought could happen or what we hoped would happen. Now we can look at the facts, interpret the facts honestly and make sound decisions and set realistic goals based on this information. (Zev Weiss, Chief Executive Officer, American Greetings) 2016 by Harold Kerzner, All rights reserved. 5
6 An Executive View of the Benefits of Using Project Management PM 2.0/3.0 provides focus, creates business value and drives the business; project management is now seen as mandatory for corporate growth. PM 1.0 The existence of fragmented project management (as needed) PM 2.0 We are now managing our business by projects PM 3.0 Project management is seen as a strategic competency for survival 2016 by Harold Kerzner, All rights reserved. 6
7 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 by Harold Kerzner, All rights reserved. 7
8 What Executives Expect from Project Managers PM 1.0 Low levels of expectation; more mistrust than trust Have executives changed the level of expectations they have of project managers? PM 2.0 Some trust with regard to project and business decision making PM 3.0 High levels of expectation; often expected to do the impossible 2016 by Harold Kerzner, All rights reserved. 8
9 What Executives Expect from Project Managers Even with good metrics and dashboards, realistic expectations should be set by Harold Kerzner, All rights reserved. 9
10 Topic PART 2: CHANGING TIMES: GROWTH OF PROJECT MANAGEMENT 2.0 AND by Harold Kerzner, All rights reserved. 10
11 Comparison of PM 1.0 and PM 2.0 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 Customer involvement Optional Mandatory 2016 by Harold Kerzner, All rights reserved. 11
12 Comparison of PM 1.0 and PM 2.0 Factor PM 1.0 PM 2.0 Number of constraints Time, cost and scope primarily Competing constraints Definition of success Time, cost and scope Creation of business value Executive s trust in the project manager Amount of documentation Low level of trust Extensive High level of trust Minimal Communication media Formal reports Dashboards (more informal) Project health checks Optional Mandatory Speed of continuous improvement efforts Slow; captured at the end of the life-cycle Rapid and captured continuously 2016 by Harold Kerzner, All rights reserved. 12
13 Necessities for PM 2.0 to Exist Stakeholders are expected to make informed decisions rather than just any decision Informed decision-making requires more meaningful metrics The metrics information must be shared rapidly 2016 by Harold Kerzner, All rights reserved. 13
14 PM 2.0 PM 2.0 = PM distributed collaboration 2016 by Harold Kerzner, All rights reserved. 14
15 PM 2.0 and Web 2.0 PM 2.0 will use much of the social media software that is currently in use by Harold Kerzner, All rights reserved. 15
16 PM 2.0 and Web 2.0 We can input metric information from any location in the world by Harold Kerzner, All rights reserved. 16
17 PM 2.0 and Web 2.0 We can customize the cell phones and tablets with a world of project-specific apps by Harold Kerzner, All rights reserved. 17
18 Security for the Apps PM 1.0 Minimal security; classifying the documentation as necessary How do we provide security for the critical information on the apps? PM 2.0 Security for individual apps and some mobile devices PM 3.0 Using a highly secured company intranet 2016 by Harold Kerzner, All rights reserved. 18
19 PM 2.0 and Web 2.0 Data can be displayed over cell phone or tablet screens by Harold Kerzner, All rights reserved. 19
20 Metrics Accompany You Everywhere With PM 2.0, all project personnel will have metrics and project status at their fingertips by Harold Kerzner, All rights reserved. 20
21 Comparison of PM 2.0 and PM 3.0 Factor PM 2.0 PM 3.0 Project investment drivers Cost and profitability Alignment of benefits to strategic objectives Strategic focus Business case development Methodologies Metrics selected Assumptions and constraints Project staffing Fragmented; heavily on individual projects Unstructured; with complex assumptions Project methodology; EVMS and EPM To track tangible elements only Fixed over the project s life-cycle Misapplication of critical resources Integrated; corporate portfolio Structured including benefits and value Frameworks; VMM To track tangible and intangible elements Can change over the project s life-cycle Capacity planning and resource management 2016 by Harold Kerzner, All rights reserved. 21
22 Topic PART 3: SOME ISSUES WITH THE GROWTH OF PROJECT MANAGEMENT 2.0 AND by Harold Kerzner, All rights reserved. 22
23 PM 2.0/3.0 Issues Can a large metric library cause headaches? (i.e. metric mania) 2016 by Harold Kerzner, All rights reserved. 23
24 Use of Metric Owners PM 1.0 Only the triple constraints metrics were important Who takes the lead in metric identification, evaluation, measurement and reporting/display? PM 2.0 PMOs control growth in competing constraints metrics PM 3.0 Growth in use of metric owners as number of metrics increases 2016 by Harold Kerzner, All rights reserved. 24
25 Solutions to Metric Mania PM 1.0 Not necessary because of the use of just time, cost and scope Can metric owners and the PMO work together to create meaningful metrics that everyone will understand and use? PM 2.0 Attempts to balance between too many and too few metrics PM 3.0 Distinguishing between a good and bad metric is a necessity 2016 by Harold Kerzner, All rights reserved. 25
26 PM 2.0/3.0 Issues How difficult will it be to differentiate between a good and bad metric? 2016 by Harold Kerzner, All rights reserved. 26
27 PM 2.0/3.0 Issues Information overload is an invitation for micromanagement and poor decision making by Harold Kerzner, All rights reserved. 27
28 Topic PART 4: THE DRIVING FORCES FOR BETTER METRICS 2016 by Harold Kerzner, All rights reserved. 28
29 Identifying The Need We need to go to paperless project management We need metrics that allow project governance to make decisions based upon evidence rather than guesses The need for more metrics is inevitable Metrics allow us to better manage the competing constraints of time, cost, scope, risk, customer satisfaction, safety, value, benefits, etc Our definition of project success is changing 2016 by Harold Kerzner, All rights reserved. 29
30 Definition of a Project PMBOK Guide definition: A temporary endeavor undertaken to create a unique product, service or result. PMBOK Guide Fifth Edition, Glossary Future definition: A collection of sustainable business value scheduled for realization by Harold Kerzner, All rights reserved. 30
31 Definition of Project Success Traditional definition: Completion of the projects within the triple constraints of time, cost and scope. Future definition: Achieving the desired business value within the competing constraints by Harold Kerzner, All rights reserved. 31
32 The PMBOK Guide and Metrics 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. TIME MGT. COST MGT. METRICS Adapted from PMBOK Guide Fifth Edition, Figure 3-1, p by Harold Kerzner, All rights reserved. 32
33 The PMBOK Guide and Metrics 2016 by Harold Kerzner, All rights reserved. 33
34 Creating the Dashboards PM 1.0 Nonexistent; time card reporting Who creates the dashboards? PM 2.0 Reliance on external contractors for dashboard development PM 3.0 Internally developed dashboards; hiring of infographics designers 2016 by Harold Kerzner, All rights reserved. 34
35 Definition of Infographics Infographics is the visualization of data in a manner that is easily understood by Harold Kerzner, All rights reserved. 35
36 Selecting An Infographics Designer Selecting the right infographics designer is critical. A knowledge of project management would certainly be helpful by Harold Kerzner, All rights reserved. 36
37 Topic PART 5: UNDERSTANDING METRICS AND KPIS 2016 by Harold Kerzner, All rights reserved. 37
38 Types of Project Management Metrics PM 1.0 Metrics based exclusively upon the triple constraints How have project management metrics changed over time? PM 2.0 Competing constraints and some project business-based metrics PM 3.0 Value-reflective metrics and strategic portfolio metrics 2016 by Harold Kerzner, All rights reserved. 38
39 Types of Metrics Types of Metrics Traditional Metrics Intent Primarily focus on where we are today Key Performance Indicators Value-Reflective Metrics (also called Value-Based Metrics) 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 creation as the project progresses 2016 by Harold Kerzner, All rights reserved. 39
40 Metric Measurement Techniques PM 1.0 Rule of Inversion; select the easiest metrics to measure Is it possible that today we can measure anything? PM 2.0 Growth in competing constraints and measurement techniques PM 3.0 Growth in measuring value and some of the intangibles 2016 by Harold Kerzner, All rights reserved. 40
41 Intangibles Intangibles, often including benefits and value, may be tough to measure, but they are not immeasurable. Tough things to measure include: Collaboration Commitment Creativity Culture Customer satisfaction Emotional maturity Employee morale Image/reputation Leadership effectiveness Motivation Quality of life Stress level Sustainability Teamwork 2016 by Harold Kerzner, All rights reserved. 41
42 Topic PART 6 PROJECT MANAGEMENT TOOLS, METHODOLOGIES, FRAMEWORKS AND VALUE 2016 by Harold Kerzner, All rights reserved. 42
43 From Methodologies to Frameworks PM 1.0 PM 2.0/3.0 EPM Methodologies: based on rigid policies and procedures EPM Frameworks: forms, guidelines, checklists and templates 2016 by Harold Kerzner, All rights reserved. 43
44 Comparison: EVMS, EPM and VMM Variable EVMS EPM VMM Time Cost Scope Quality Risks Tangibles Intangibles Benefits Value Tradeoffs 2016 by Harold Kerzner, All rights reserved. 44
45 Performance Reporting Progress Reports Status Reports PM 1.0 Time at completion and cost at completion Forecast Reports PM 2.0 Business metrics related to the project and portfolio of projects Has the content of forecast performance reporting changed? PM 3.0 Projections on benefits and value at completion 2016 by Harold Kerzner, All rights reserved. 45
46 Organizational Reporting of Project Management Performance PM 1.0 Reporting to the sponsor and the lowest level in the organization Who now asks to see project performance information, especially benefits and value? PM 2.0 Performance reporting to PMOs, middle and senior management PM 3.0 Reporting to the corporate board room 2016 by Harold Kerzner, All rights reserved. 46
47 Topic PART 7 PROJECT MANAGEMENT DASHBOARDS 2016 by Harold Kerzner, All rights reserved. 47
48 Project Management Dashboards PM 1.0 Very limited use of dashboards; primarily financial dashboards 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 2016 by Harold Kerzner, All rights reserved. 48
49 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 2016 by Harold Kerzner, All rights reserved. 49
50 How The Mind Works Even the best metrics and dashboards cannot compensate for the ways that people process information by Harold Kerzner, All rights reserved. 50
51 Topic PART 8 THE NEED FOR REVISITING PROJECT MANAGEMENT EDUCATION 2016 by Harold Kerzner, All rights reserved. 51
52 Three Generic Categories of Skills Hard Skills Soft Skills Ethical Behavior 2016 by Harold Kerzner, All rights reserved. 52
53 Recovery Project Management PM 1.0 Replacement of the project manager or kill the project Is special leadership needed to improve the chances for recovering a failing project? PM 2.0 Recognizing the importance of periodic health checks PM 3.0 Recognizing the skills needed for recovery project management 2016 by Harold Kerzner, All rights reserved. 53
54 Other Project Management Values PM 1.0 Only the economic value of the projects was important Are there multiple forms of value that are important in project management? PM 2.0 Recognizing the existence of values other than economic PM 3.0 Recognizing the importance of cultural, religious and politics 2016 by Harold Kerzner, All rights reserved. 54
55 Other Types of Values Cultural Values Economic Values Behavioral Values Religious Values Values Political Values Aesthetic Values 2016 by Harold Kerzner, All rights reserved. 55
56 Project Management Certifications PM 1.0 Nice to have but not necessary How many certifications are actually necessary? PM 2.0 Seen as a necessity especially for competitive bidding PM 3.0 Business process certifications and use of Certification Boards 2016 by Harold Kerzner, All rights reserved. 56
57 Questions? 2016 by Harold Kerzner, All rights reserved. 57
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