From Crisis to Control: A New Era in Strategic Project Management

Transcription

1 From Crisis to Control: A New Era in Strategic Project Management Michael Stanleigh, President; Business Improvement Architects International Phone: : Web:: 01 (416) x301 mstanleigh@bia.ca

2 What We Will Cover Today The Project Management Crisis Research and Findings New Era in Strategic Project Management The Future of Project Management Call to Action

3 The Crisis in Project Management Corporations globally, losing millions in wasted project spending This waste carefully hidden from management & investors Projects not positively impacting bottom-line Customer expectations not met Projects not executed by right resources Organizations question how to solve Consultants recommend Project Management Office (PMO) as solution

4 The Crisis Continues Implementing and managing PMO was not the answer: Over 75% shut down their PMO within 3 years PMOs demonstrated no added value PMO s cost $500,000 per year to run ROI should be positive, but it s not

5 The Root Cause Root Cause? The approach to project management New Era in Strategic Project Management Creating a sustainable culture of project management can have a tremendously positive impact on an organization s productivity and profitability.

6 Research Studies PriceWaterhouseCoopers 2004 study Included 10,640 projects total value $7.2 billion Only handful of projects achieved project success 2.5% of global businesses achieve 100% project success Standish Group s 2004 Chaos Report 9,236 IT projects failed 53% were seriously late, over budget or lacked expected features

7 Crisis Examples The Times in London, England July 21, 2005 Cost of Shell s Russian project doubles to $20 billion Shell chief claimed to not have been aware of the cost increase Royal Academy of Engineering & British Computer Society Only 16% of IT projects can be considered truly successful. Cost of such failures is tens of billions of pounds across the EU.

8 Research Strategy 1. Identified Organizations 2. Conducted 50 in-depth interviews with CEO s, Senior Executives and PMO staff 3. Conducted 750 comprehensive surveys With the trend to implementing PMOs, why haven t organizations been able to solve the critical issues?

9 Organizational Mandates Improvement in management of projects 54% Bringing projects in on schedule 46% Improvement in meeting customer requirements 38% Bringing projects in on budget 31% Improvement in the utilization of staff 30% Organizations were clear on what they should do, yet failed to deliver

10 The 4 Things You Need to Know 1. Ensure all projects are strategically aligned 2. Create a culture that supports a project management environment 3. Implement strategic project management best practices 4. Apply quality systems to your projects

11 Strategically Align Projects Only 12.5% align projects strategically Lack of strategic alignment - major reason for project failure 80% - no formal business case to develop their PMO 73% - lack of executive sponsorship - primary reason for failure 68% - no prioritization or strategic alignment process

12 New Era - Strategic PM 1. Recognize the strategic role of projects in organizational success

13 Why PMO s were Implemented More successful implementation of projects 82% Predictable, reusable PM tools, techniques and processes 74% Organizational improvement To help build a project management-oriented culture 66% 64% Increased staff professionalism in PM 48% Increased customer satisfaction 38% PMO s were implemented for the right reasons, and failed to deliver

14 New Era - Strategic PM 1. Recognize the strategic role of projects in organizational success 2. Build project management into the corporate culture

15 PMO Strategic Priorities Development of project management methodology Development of structure for the project management office 77% 76% Identification of project roles and responsibilities 69% Development of tools and templates 60% Implementation of PM training programs 54% Develop process to manage resources 50% PMO s were task oriented, not strategic

16 New Era - Strategic PM 1. Recognize the strategic role of projects in organizational success 2. Build project management into the corporate culture 3. Retain project management knowledge

17 How is Project Success Measured? Projects on time 76% Projects on budget Achieves scope requirements Customer requirements met 67% 66% 65% Achieves all milestone deliverables 52% Contributes to ROI 29% Chosen metrics were not strategic

18 New Era - Strategic PM 1. Recognize the strategic role of projects in organizational success 2. Build project management into the corporate culture 3. Retain project management knowledge 4. Integrate quality management and project management

19 Branded for Quality

20 Dawn of the New Era Project Management will evolve over next 10 years Competency within all positions and role of Project Manager as a unique position will decline Total Performance Management systems will be integral to organizational success Competitive edge requires combination of project and quality management principles Significant bottom-line impact will result Business Improvement Architects

21 Call To Action Train staff in the areas of project and quality management targeted at New Era Thinking Undertake a Project Culture Initiative Create Total Performance Management system Train management - their responsibility in ensuring project success Monitor and measure constantly Work with people not systems Have Fun!!!

22 Thank You!! Michael Stanleigh, President; Business Improvement Architects International Phone: : Web:: 01 (416) x

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