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An Introduction and Getting Started
February 20, 2019 PMI NYC Chapter
Project Management 2.0
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John BowenYour bio information
❑ Executive Consultant, Computer Aid, Inc. (CAI)
❑ Founder and President – Management Envision
❑ CIO – PPL Global Corporation (1999-2009)
❑ Executive Faculty – Lehigh University, Iacocca Institute
❑ Adjunct Professor – Lehigh University College of Business & EconomicsGlobal Business, International IT Management, Project Governance, Project Leadership, Project Sponsorship
❑ Degrees: Mathematics, Computer Science, Symbolic Logic – DePauw University
❑ ~40 years experience in Executive Leadership, Global IT Management,Technology Management, Strategic Planning, IT Governance, IT Due Diligence, Complex System Implementation, Mergers and Divestitures
❑ Program management experience: Global projects in 25+ countriesin North America, Europe, Latin America, Asia, Africa
2
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John Bowen – Global Project Experience
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4 4Copyrighted Material ©
❑Computer Aid, Inc.
❑ Lehigh Valley, PA based privately-held corporation, founded in 1981
❑ 4,900 associates: 6 continents, 20 countries, 38 US states
❑ IT services: Application Development, Application Support, Management Consulting, System Engineering, Project Management, Process Engineering, IT Resourcing, Robotic Process Automation (RPA), Autism to Work
❑ 2018 revenue: $600M
❑ IT Metrics and Productivity Institute (ITMPI)
❑ IT knowledge center
❑ Advanced education content in project management, Six Sigma, CMMI, ITIL, software quality and testing
❑ PDU/CDU courseware
❑ IT leadership newsletters
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5 5Copyrighted Material ©
“Projects drive business innovation and change;
in fact, the only way organizations can change, implement a strategy, innovate, or gain competitive advantage is through projects.
The next untapped candidate for significant improvements in a company’s pursuit of competitiveness is the project activity of the organization.”
Reinventing Project Management
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6 6Copyrighted Material ©
“The day-to-day running of a business will soon be carried out through automation and robots – and is already done so in many instances.
Projects have become the essential part of any organization. … by 2025, senior leaders and managers will spend at least 60% of their time selecting, prioritizing and overseeing the execution of projects.
This massive disruption is … impacting how organizations are managed. Every aspect of our lives is becoming a set of projects.”
CIO Magazine
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This presentation borrows content from:
Harold Kerzner: Project Management 2.0: Leveraging Tools, Distributed Collaboration,
and Metrics for Project Success
and presentations at the PMI - Great Lakes Chapter
Professional Development Day, October 16, 2015
Harold KerznerJohn Bowen
Dennis BollesTy Sarkar
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Project Management 2.0Agenda
❑ Project Management 1.0▪ Definition of PM 1.0▪ Project Success Criteria▪ Limitations of PM 1.0
❑ Project Management 2.0▪ Definition of PM 2.0▪ Benefits and Advantages of PM 2.0▪ Why IT is Most in Need of PM 2.0
❑ Driving Forces for Better Metrics❑ The Role of the PMO❑ Early Adopters of PM 2.0❑ Getting Started with PM 2.0
❑ Suggested Reading❑ Questions
8Copyrighted Material ©
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9
PROJECTMANAGEMENT
1.0
9Copyrighted Material ©
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10
Prehistory
9000 BCE 3300 BCE 3000 BCE
Stone Age
History
Bronze Age Iron Age
10Copyrighted Material ©
The History of Project Management
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11
Pyramids
2550 BCE
Stonehenge
2000 BCE
RomanAqueducts
100 BCE
MedievalCathedrals
1150
GreatWall
1400
MachuPicchu
1450
11Copyrighted Material ©
The History of Project Management
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12
GanttChart
WW I MSProject
EmpireState
1930
WW II Web2.0
20th Century 21st
ApolloMission
1969
Henry Gantt (1856-1915)
PC
20001985
19101914 -1918
1939 -1945
1981
The History of Project Management
12Copyrighted Material ©
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1313Copyrighted Material ©
Actual Gantt chart defining plan for construction of the Empire State Building (1930)
Building the Empire State, page 45
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1414Copyrighted Material ©
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16
WHAT ISRIGHT
WITH PM 1.0
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1717Copyrighted Material ©
Assumptions of PM 1.0:
❑ Planners can develop a detailed plan that will remain a valid baseline for the duration of the project
❑ Team members will commit to meeting the deliverables in the plan
❑ Team members will execute the project in accordance with the plan
❑ Deviations from the baseline plan will be treated as exceptions that must be corrected
❑ Project success is measured by adherence to scope, cost, and schedule
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1818Copyrighted Material ©
Strengths of PM 1.0:
❑ PM 1.0 is disciplined
❑ Many of today’s projects share predictable contexts and unchanging assumptions over the life of the project
❑ Discipline of PM 1.0 forces a team to produce detailed specifications, complete rigorous testing, and prepare thorough documentation
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1919Copyrighted Material ©
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20
WHAT ISWRONG
WITH PM 1.0
20Copyrighted Material ©
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2121Copyrighted Material ©
Definition of a Project
A temporary endeavor undertaken to create a unique product, service or result.
PMBOK® Guide – Fifth Edition, Glossary
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2222Copyrighted Material ©
Definition of Project Success
Completion of the project within the triple constraints of time, cost and scope.
PMBOK® Guide – Fifth Edition, Glossary
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2323Copyrighted Material ©
Project Management 1.0
Schedule
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Weaknesses of PM 1.0:
❑ PM 1.0 is not optimized for agility
❑ PM 1.0 does not engage all available knowledge
❑ PM 1.0 is viewed as operational, not as strategic
❑ PM 1.0 does not adequately address the subjective (human) dimensions of all projects
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The ten dimensions of Project Management
❑ Time management (schedule)❑ Cost management (budget)❑ Scope management❑ Quality❑ Human resources❑ Risk❑ Procurement (contractors)❑ Integration❑ Communication❑ Stakeholder management
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2626Copyrighted Material ©
INTEGRATIONMGT.
SCOPEMGT.
TIMEMGT.
COSTMGT.
PROCUREMENTMGT.
HUMANRESOURCE
MGT.
COMMUNICATIONSMGT.
RISKMGT.
QUALITYMGT.
POLITICS
CULTURE &RELIGION
BUSINESS &STRATEGY
PROJECT VALUEMGT.
STAKEHOLDERMGT. METRICS
Adapted from PMBOK® Guide – Fifth Edition,Figure 3-1, p. 61
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The two objective (quantifiable) dimensions of Project Management … for which metrics and tools are commonplace … are almost never the cause of project failure
❑ Time management (schedule)❑ Cost management (budget)❑ Scope management❑ Quality❑ Human resources❑ Risk❑ Procurement (contractors)❑ Integration❑ Communication❑ Stakeholder management
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2828Copyrighted Material ©
The eight subjective (human) dimensions of Project Management - are responsible for 85% of all project failures
❑ Time management (schedule)❑ Cost management (budget)❑ Scope management❑ Quality❑ Human resources❑ Risk❑ Procurement (contractors)❑ Integration❑ Communication❑ Stakeholder management
Stephen B. Johnson, NASA historian and engineer
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1) Boston “Big Dig” highway tunnel –Communication management
2) Boeing 787 “Dreamliner” –Procurement management
3) Denver airport baggage handling system –Human resource management
4) Lockheed Martin F-35 Lightning US military joint strike force fighter –Integration management
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30
PROJECTMANAGEMENT
2.0
30Copyrighted Material ©
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3131Copyrighted Material ©
PM 2.0 = PM 1.0 + Distributed Collaboration
Project Management 2.0 - Kerzner
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Collaboration
ContinuousStatus
(Dashboard)
Governance
ContinuousMeasurement
Metrics and KPIs
ProjectLeadership
Project Management 2.0
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3333Copyrighted Material ©
Project Management 2.0 – Key Components
❑ Project Governance▪ Project Selection▪ Project Execution
❑ Collaboration
❑ Metrics▪ Key Performance Indicators (KPIs)▪ Early Warning Signs (EWS)
❑ Feedback▪ Process to obtain status/issues▪ Stakeholders
❑ Monitoring▪ Dashboards(s) (passive)▪ Alerts (proactive)
❑ Leadership▪ Executive Sponsor▪ Project Manager
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Project Management 2.0 – Key Characteristics
❑ Business value will be the sole justification for project inception and continuation
❑ Frameworks will replace methodologies
❑ Business value will be delivered continuously via agile development and interim states
❑ Teams will be empowered (shared global awareness and self-synchronization)
❑ Metrics will be dynamic (changing by phase, different metrics for each sponsor)
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3535Copyrighted Material ©
PM 1.0 Definition of a Project
A temporary endeavor undertaken to create a unique product, service or result.
PMBOK® Guide – Fifth Edition, Glossary
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3636Copyrighted Material ©
PM 2.0 Definition of a Project
A collection of realized and sustainable business value.
Harold Kerzner / John Bowen
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3737Copyrighted Material ©
PM 1.0 Definition of Project Success
Completion of the project within the triple constraints of time, cost and scope.
Project Management Institute - PMBOK
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PM 2.0 Definition of Project Success
Achieving the desired business value within the bounds of competing constraints.
Project Management 2.0 - Kerzner
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3939Copyrighted Material ©
Project Management 1.0
Schedule
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4040Copyrighted Material ©
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41
COMPARISON BETWEEN PM 1.0
AND PM 2.0
41Copyrighted Material ©
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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
From funding
organization
Required business
knowledge
Overall project
sponsorship
A single person
acting as a sponsor
Committee
governance
Planning Centralized Decentralized
Project requirements Well-defined Evolving and flexible
WBS development Top down Bottom up and
evolving
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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
Scope changes Minimized Possibly continuous
Amount of
documentation
Extensive Minimal
Communication
media
Reports Dashboards
Project health
checks
Optional Mandatory
Type of project team Co-located Virtual or distributed
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4444Copyrighted Material ©
Factor PM 1.0 PM 2.0
Customer
involvement
Optional Mandatory
Organizational
project management
maturity
Optional Mandatory
Executive’s trust in
the project manager
Low level of trust High level of trust
Speed of continuous
improvement efforts
Slow Rapid
Project management
education
Nice to have, but not
necessary
Necessary, and part
of life-long learning
Life-cycle phases Traditional life-cycle
phases
Investment life-cycle
phases
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45
IT IS MOST IN NEED OF PM 2.0
45Copyrighted Material ©
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❑ US Dept of Defense Integrated Human Resource System (DIMHRS)Delivered no functionality; 199% original cost
❑ UK’s Fire Control Project11% functionality; 391% original cost
❑ California Court Management System10% functionality; 214% original cost
❑ US Social Security Administration Disability Case Processing SystemNo functionality; 100% original cost
❑ British Columbia Integrated Case Management System30% functionality; 100% original cost
Spectrum IEEE Org
IT Project Management Success is Abysmal
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004 2006 2008 2010 2012 2014
Failed
Challenged
Successful
2004 2006 2008 2010 2012 2014
Failed 18% 19% 24% 21% 18% 19%
Challenged 53% 46% 44% 42% 43% 52%
Successful 29% 35% 32% 37% 39% 29%
IT Project Success RateStandish Group International,
Chaos Report
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48
PROJECTLEADERSHIP
48Copyrighted Material ©
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4949Copyrighted Material ©
“Successful projects are led,
not managed.”
Great Project Management
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5050Copyrighted Material ©
“You cannot manage a project to success; you must lead a project to success.”
John Bowen
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5151Copyrighted Material ©
Project Management Project Leadership
Methodology Creating Alignment
Process Communication
Project Plans Tenacity
Status Reports Focus
Project Meetings Motivation
Software Skills Inspiration
Time Tracking Action
Issues Tracking Energy
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52
DRIVING FORCES FOR BETTER
METRICS
52Copyrighted Material ©
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Types of Metrics Intent
Traditional Metrics Primarily focus on where we are today
Key Performance Indicators Extrapolate the present into the future to tell us where we will end up
Value-Based Metrics A combination of metrics and KPIs that tell us the growth of value as the project progresses
Early Warning Signs Indicators that foretell likely (or inevitable) project failure unless critical success factors are corrected
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❑ Our research has identified the top 53 causes of project failure❑ No technical factors made the top 40
Leon Kappelman, Ph.D, University of North Texas
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5555Copyrighted Material ©
Leon Kappelman, Ph.D, University of North Texas
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Project Life-Cycle
Value Determination
Idea
Generation
Project
Approval
Project
PlanningDelivery
Value
Analysis
Benefits
Realization
Investment Life-Cycle
TrackingInitiation
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Deployment on time /
budget
Celebration and
recognition
Adoption for the greater
goodTrust
Effective governanceClear roles and
responsibilities
Simple decision making Win / win conversations
Team effectiveness Communication
Goal alignment across
organizationCollaboration
Talent management Leadership behavior
Problem solving Work / life balance
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Project Management 2.0 – Better Metrics
❑ Building a metrics management program cannot be done overnight. Executive support is necessary from the start.
❑ Executive support must be visible. Actions must support words.
❑ Without effective metrics, we tend to wait until the project is way off track before taking action. By that time, it may be too late to rescue it.
❑ With effective metrics, conflicts among team members and stakeholders are expected to decrease.
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Project Management 2.0 – Better Metrics
❑ Good metric management programs can increase the chances for successful project completion
❑ Stakeholders are expected to make informed decisions and informed decision-making requires more meaningful metrics
❑ We need metrics that allow project governance to make decisions based upon evidence rather than guesses
❑ Metrics allow us to better manage all competing constraints, e.g., time, cost, scope, risk, customer satisfaction, safety, etc.
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Project Management 2.0 – Better Metrics
❑ With PM 2.0, all project personnel will have metrics at their fingertips
❑ Status reporting will be paperless and continuous (savings estimated to be 20% of total project cost)
❑ Project status data will be transmitted on time and from anywhere in the world via mobile devices such that value and performance can be verified, continuously
❑ Metrics information must be shared rapidly
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❑ … it is easier for the stakeholders to focus upon and agree to the right target and business alignment
❑ … it is easier to evaluate the impact of tradeoffs if a change in direction is needed
❑ … stakeholders have a much more accurate snapshot of project status now and possibly in the future
❑ … we have more meaningful project health checks
❑ … the number of conflicts among team members and with the various stakeholders are expected to decrease
Project Management 2.0 – With better metrics …
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63
PROJECT STATUS DASHBOARD
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❑ Because each stakeholder may have different needs, dashboard reporting systems allow the project manager to prepare customized dashboards to satisfy each stakeholder’s needs
❑ Effective dashboards can significantly reduce the time for consensus decision making
❑ Dashboard reporting of metrics saves time and cost and allows us to get closer to “paperless” project management practices
❑ Effective dashboard communications makes it easier to get cooperation when using virtual teams
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67
THE VITAL ROLE OF THE PMO
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Collaboration
ContinuousStatus
(Dashboard)
Governance
ContinuousMeasurement
Metrics and KPIs
Project
Leadership
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The Role of the PMO in PM 2.0 Adoption
❑ The scope of the PMO must be the entire organization
❑ The PMO must focus on corporate and strategic issues, not functional or process improvement
❑ The “strategic” PMO may also support portfolio management efforts
▪ Capacity planning▪ Project prioritization▪ Project selection recommendations (to senior management)
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The Role of the PMO in PM 2.0 Adoption
❑ Provide a structure for selecting the right projects
❑ Allocate resources to the right projects
❑ Align portfolio decisions to strategic business goals
❑ Create project ownership by project sponsors
❑ Train PMs on PM 2.0 components
❑ Promote project leadership
❑ Educate executives on the role of Project Sponsor
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The Role of the PMO in PM 2.0 Adoption
❑ The PMO must put the metrics program in place and maintain ownership
❑ The PMO maintains responsibility for corporate-wide metrics education
❑ There may be a metric owner for each metric
❑ The PMO must conduct metric benchmarking
❑ A new position in the PMO is suggested: Chief Performance Officer
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72
EARLY PM 2.0 ADOPTERS
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Characteristics of NASA Projects
❑ Complex projects involving combination of hardware, software, leading edge science
❑ Collaboration with international space agencies (involving multiple cultures, languages, legal systems, oversight, etc.)
❑ High degree of risk
❑ Multiple layers of governance (multiple stakeholders)
NASA Space Flight Program and Project Management Handbook
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NASA projects have continued to make progress in maturing
technologies prior to the preliminary design review. This year, 63
percent of projects met this standard, up from only 29
percent of projects in 2010. As NASA continues to undertake
more complex projects it will be important to maintain heightened
attention to best practices to lessen the risk of technology
development and continue positive cost and schedule
performance.
NASA projects are maintaining steady performance
toward meeting GAO's best practices for design
stability.
GAO NASA Assessment, April 15, 2014
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GAO NASA Assessment, March 2016
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79
GETTING STARTED WITH
PM 2.0
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Project Management 2.0 – Steps to Take Today
❑ Implement project dashboards for status reporting and eliminate (or at least reduce) paper status reports
❑ Implement a process for measuring the subjective dimensions of every project as an early warning system
❑ Define the success criteria for each project and report on those metrics to all stakeholders
❑ Identify the business value created by every project and measure/report progress and results
❑ Educate executives in the role of project sponsor
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Project Management 2.0 – Steps to Take Today
❑ Identify or define interim states for every projectand modify project plans to include value-added deliverables produced at least quarterly
❑ Implement a collaboration tool to facilitate project team interaction, to report and track issues and to provide status to project sponsors and stakeholders
❑ Implement a leadership development program for all project managers
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PM 2.0 Component Supporting System Functionality
1.Project Governance ▪Project/Portfolio Selection
▪Project Methodology and Process Compliance
▪Phase Gate Measurement
▪Deliverables Verification
2.Project Metrics ▪Metrics, KPIs and EWS Selection
▪Team Input Linked to KPIs/EWS
▪Continuous Stakeholder Input
3.Team Collaboration ▪Direct Input to PM from Team Members
▪ Issues Logging and Tracking
4.Stakeholder Feedback ▪Scheduled Questionnaires to Project Stakeholders
(by Phase and by Role)
▪Triggered Questionnaires by Project Status
5.Proactive/Continuous Status Monitoring ▪Dynamic Project Dashboards
▪Configurable Displays and Alert Thresholds
6.Project Leadership ▪PM Best Practices
▪Corrective Recommendations
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83
SUMMARY:PM 2.0 …
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Project Management 2.0 …
❑ Will be used increasingly for most projects, especially large, complex projects
❑ Will be embraced by the PMI and will be formalized in future editions of the PMBOK
❑ Will adapt to support Management 2.0, i.e., democratic, participative, collaborative, interactive
❑ Will leverage the collaboration tools of Web 2.0
❑ Will require a stronger emphasis on program and portfolio governance to ensure projects deliver business value
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Project Management 2.0 …
❑ Acknowledges and supports flexible project management by abandoning rigorous, and inflexible, PM methodology
❑ Supports rapidly evolving business climates and changing priorities
❑ Requires a transition from Project Management to Project Leadership implying a significant change in the traditional role of the project manager
❑ Requires greater involvement of executive governance
❑ Will improve project success rates
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86
SOURCES
86Copyrighted Material ©
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Bibliography and recommended reading:
❑ Project Management 2.0: Leveraging Tools, Distributed Collaboration, and Metrics for Project Success, Harold Kerzner, PhD
❑ The Strategic CIO: Changing the Dynamics of the Business Enterprise, Phil Weinzimer
❑ Early Warning Signs in Complex Projects, Ole Jenny Klakegg, PhD, Terry Williams, PhD, Derek Walker, PhD, Bjorn, Andersen, PhD, Ole Morten Magnussen, PhD
❑ Reinventing Project Management, Aaron Shenhar, Dov Dvir
❑ Project Sponsorship, David West
❑ Now It Can Be Told: The Story of the Manhattan Project, Leslie R. Groves
❑ The Power of Project Leadership, Susanne Madsen
❑ Building the Empire State, Carol Willis
❑ The Visual Display of Quantitative Information, Edward R. Tufte
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Bibliography and recommended reading:
❑ https://en.wikipedia.org/wiki/Project_management_2.0
❑ http://www.pmi.org/Learning/articles/nasa.aspx
❑ http://www.slideshare.net/wrike/project-management-20-1884020
❑ https://www.wrike.com/blog/definition-of-project-management-2-0/
❑ http://network.projectmanagers.net/profiles/blogs/is-project-management-2-0-dead
❑ http://www.tandfonline.com/doi/full/10.1080/21573727.2011.609558
(Stanford University Advanced Project Management Program)
This presentation is copyrighted by John M. Bowen, 2019Animation template by PresenterMedia
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Questions? More information?
John M. BowenJohn M. BowenExecutive ConsultantPhone: 610-393-4425
Computer Aid, Inc.1390 Ridgeview DriveAllentown, PA 18104www.cai.io
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