executing strategies through modern project management

Project Management e

Pubblica Amministrazione

Roma, 13-11-2008

Luiss B. S. - Aula Magna

Viale Pola, 12

Russell D. ArchibaldPhD (Hon), MSc, Fellow PMI & APM/IPMA, PMP

Il Project Management a supporto della Pubblica Amministrazione

Stato dell'arte a livello internazionale

13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 2

Presentation Objectives:

To provide a road map to Ministers and PA senior executives for achieving the full power of project management.

To help PM professionals show their senior managers where the development of project management should be going.


What You Can Expect:

Verification

Clarification

Revelation!

70%

20%

10% (I hope!)


Presentation Outline

1. Strategic Project Management

2. Integrated Project Portfolio Management

3. The Three Basic Project Management Concepts

1. Key Integrative Roles

2. Integrated and Predictive Project Planning and Control Systems

3. Project Teams

4. Conclusion


PM State of the Art Today

PM principles and practices are sufficiently known and accepted today so that senior executives can request or demand that their staffs apply and actually use them.

This paper presents a set of 33 PM demands that can be achieved today with reasonable effort.


Summary of Demands

PM Policies: 3

Strategic PM: 9

Operational PM: 5

Operational PM Planning and Control: 8

Project Teams: 5

PM Improvement: 3

Total Demands: 33


Minister DemandsTo Unleash Full PM Power:

3 PM policy demands:1. Project portfolio management/PPM

must fully support the agency‟s mission & strategies.

2. Coherent PPM processes must exist & be fully understood.

3. PPM processes & tools must be fully integrated.


Part 1. Strategic Project Management


Strategic management of growth requires:

A vision of the future.

Consensus and commitment.

Documentation of key objectives & strategies.

Execution of specific projects to achieve the objectives.

Strategic Management of Project Portfolios.


The Hierarchy of Objectives and Strategies

Objectives are descriptions of where we want to go.

Strategies are statements of how we are going to get there.

Strategies are carried out and objectives are reached through

Execution of projects.


Project-Driven versus Project-Dependent Organizations

Project-driven: gain or deliver all or most benefits through delivering projects

Design/construction contractors

Government transportation agencies (air/water/rail/road/tunnel)

NASA, Other

Project-dependent: gain most benefits through production or on-going services, but grow through projects


Objectives of Strategic Project Management

1. To assure that each project supports higher level strategies and objectives and contains acceptable risks:

Competitive, technical, cost, schedule

2. To plan, control and execute each project with all other projects so each will meet its strategic objectives:

Specified results on time and within budget


Strategic

PM Demands

1. Every project must clearly support an approved corporate strategic objective.

2. Each project‟s risks must be evaluated and proactively managed using currently available methods and systems.

3. All projects must be evaluated, prioritized and approved using the same corporate criteria.


Part 2.Project Portfolio Management

Projects are investments.

They must be managed like investments: on a portfolio basis.

„Multi-project” and “program management” are still useful but no longer adequate.

“Project Portfolio Steering Group.”

Strategic

Objective

1

Operational

Strategy 1.3

Operational

Strategy 1.2

Operational

Strategy 1.1

Project 1.1.3

Project 1.1.2

Project 1.1.1

Project 1.2.2

Project 1.2.1

Project 1.3.3

Project 1.3.2

Project 1.3.1

Program 1.1

Project Portfolio for Strategic Objective 1

Portfolio vs Multi-Project Mgt.Dye & Pennypacker, PMI 2000

Multi-Project Management

Project Portfolio Management

Purpose Resource allocation

Focus Tactical

Planning Emphasis

Short-term

(day to day)

Responsibility Project/

Resource mgrs.

Portfolio vs Multi-Project Mgt.Dye & Pennypacker, PMI 2000

Multi-Project Management

Project Portfolio Management

Purpose Resource allocation

Proj. selection & prioritization

Focus Tactical Strategic

Planning Emphasis

Short-term

(day to day)

Long/medium term (year/qtr)

Responsibility Project/

Resource mgrs.

Executive/

senior mgt.


The Project Portfolio Management Process: 12 Steps

1. Define the project portfolios required.

2. Define project categories/types.

3. Identify and group projects by type

within each portfolio.

4. Validate each project with strategic

objectives.


The Project Portfolio Management Process Steps (cont‟d)

5. Prioritize projects within programs and portfolios.

6. Develop Project Portfolio Master Schedules (Operational PM.)

7. Establish/maintain key resources data bank.

8. Allocate resources to programs & projects.


The Project Portfolio Management Process Steps (cont‟d)

9. Compare financial needs with availability.

10. Decide how to handle shortfalls and approve list of funded projects.

11. Plan, authorize and manage each project using the PM Process (Operational PM.)

12. Periodically re-prioritize, re-allocate resources and re-schedule all projects.

All steps except 6 and 11 are Strategic PM!)


The Project Portfolio Management Process is Dynamic

A dynamic decision process.

The list of active projects is constantly updated and revised.

New projects are evaluated, selected, and prioritized.

Existing projects may be accelerated, cancelled, or de-prioritized.

Resources are allocated and re-allocated to the active projects. Cooper et al:

Portfolio Management for New Products, 1998


Project Categories Based on End Results

1. Aerospace/Defense

2. Business & Organizational Change

3. Communication Systems

4. Events

5. Facilities

6. Information Systems

7. International Development

8. Media & Entertainment

9. Product/Service Development

10. Research & Dev.


Hierarchical and Multi-Dimensional

Category level

1 2 3 4

Major category

Sub-category 2

Sub-category 3

Sub-category 4


Example:Category 5. Facilities Projects

5.1 Facility decommissioning

5.2 Facility demolition

5.3 Facility maintenance & modification

5.4 Facility design/procure/construct5.4.1 Civil 5.4.2 Energy 5.4.3 Environmental 5.4.4 Industrial 5.4.5 Commercial 5.4.6 Residential 5.4.7 Ships 5.4.8 Other:

5.5 Other: ?


The Operational Project ManagementProcess

For each project type/category the PM process:

Defines the project life cycle.

Provides guidelines for risk analysis, planning and control.

Specifies the project management information systems and tools to be used.

Specifies the planning, authorizing, controlling and reporting methods and documents to be used.


The Operational Project ManagementProcess (cont‟d)

Identifies the key roles and defines responsibilities and authority for project and functional management.

Specifies escalation procedures for un-resolved issues.

Format: flow chart with narrative descriptions and references.


Strategic

PM Demands:

4. The agency‟s PPM and PM

management processes must be documented in a coherent, easily understood manner.

5. All projects must be managed within their specific, defined portfolios and categories.


Part 3. Three Basic PM Concepts

1. Assignment of integrative responsibilities.

2. Application of integrative and predictive project planning and control systems.

3. Integrated project team-working.


1. The Key Integrative Roles

Executive level The General Manager: Minister Level

Project Portfolio Steering Group

The Project Sponsor

Multi-Project Level Manager (VP, Director, etc.) of PM

Multi-project or Program Manager


The Key Integrative Roles (cont‟d)

Project Level The Project Manager

Functional/Project Contributor Level (Internal and External) Department Managers

Functional Project Leaders

Work Package/Task Leaders


General Manager‟s PM Role

Link the project portfolio(s) to the overall organizational strategies.

Oversee the overall PM process.

Monitor integration of the PM process with all other aspects of the organization.

Ensure timely availability of money, people and other resources needed for all authorized projects.


Project Portfolio Steering Group

Approve design of the project portfolio management (PPM) process.

Operate the 12-step PPM process to: Integrate projects with strategies.

Establish & revise project priorities.

Approve new projects & re-prioritize all.

Communicate decisions to & through project sponsors.


Project Portfolio Steering Group (cont‟d)

Seek additional resources when needed to support approved projects.

Recommend improvements to the process and to the project management capabilities.


The Project Sponsor‟s Role

Integrate ongoing strategic direction of his/her assigned project(s) with ongoing organization operations.

Provide this direction to/through the project manager.


Strategic

PM Demands:

6. PM roles must be clearly assigned to qualified people.

7. Minister‟s (or Deputy‟s) PM role must be understood and accepted.

8. PPM Steering Group must be appointed for each project portfolio.

9. Project Sponsors must be appointed and indoctrinated for major projects.


Manager of Project Management

Integrates work on all projects within the portfolio(s).

Integrates and directs development and use of project management methods and tools on all projects.

Manages the project management “home” (Project Management Office/PMO).


Operational

PM Demands:

1. Experienced Manager of PM must be appointed.

2. PM home/PMO must be established.3. Project Managers must be given proper

training.

4. PMs must respect functional lines of authority.

5. Functional Managers must respect project lines of authority.

Sponsor of Project "A"

Manager of

Project

Management

Functional

Department

Manager

Project Manager

of Project "A"

Project

Specialist

Staff

Functional

Project Leader

Work Package

Leader

Work Package

Leader

Individual

Contributors

How

Who

How

Well

Other

Functional

Departments

What

When

How Much

Project Planning

and Control

General Manager


Project Stakeholders

Includes all persons or agencies that have an interest in the project and its outcome.

Often they are outside the project team or the responsible agency.

Important to recognize and deal appropriately with them, but this is often difficult to do!

Identifying Project Stakeholders


2. Integrative & Predictive Project Planning and Control

Each project is planned and controlled by integrating:

All contributing functional areas.

All life cycle phases.

All elements of information: Schedule, Cost, Technical, Risk.

Using Web-based PM software systems.


1. PM Process must be adhered to.

2. All P&C systems are integrated.

3. Only one PP&C system is used in the organization.

4. Earned value concept is applied.

Operational

PP&C Demands:


5. PM Process must describe the project planning & control system.

6. All PMIS modules in next slide are included in the PM Process and PP&C System.

Operational

PP&C Demands (Cont’d):

PM Information & Control System

Technical-Product

Information and

Control System

Modules

Project Information

and Control System

Modules

Risk Information

and Control

System

Modules

Engineering Mgt

Procurement Mgt

Construction-

Production Mgt

Test Mgt

Configuration Mgt

Project/P BS

Planning/ Scheduling

Cost Management

-- Cost Estimating

-- Cost Estimating Support

-- Craft and Crew

-- Unit Material

-- Unit Labor hours

-- Source Document

-- Cost Control

-- Cost Projection

Cost Projection

Accounting Data Entry

On-Line Query

Planning Assurance

(Risk Assessment)

Quality Assurance

Reliability

Maintainability

Safety Assurance


Operational


7. All planning, authorizing, controlling and reporting documents be produced by the supporting computer software systems (with authorized

exceptions). (See Table 5 in my paper.)


How Much P&C Detail?

Always a problem; resolve by:

1. Systematic, hierarchical project breakdown: the Project/WBS

2. Avoid duplicating detail in existing systems: manage the project interfaces.


Operational


8. The concepts of the P/WBS and project interface management be applied to achieve a sustainable level of detail in PP&C documents.


3. Integrated Project Team-Working

Bring multiple disciplines together from diverse organizations to collaborate creatively.

Understand and commit to project objectives.

Develop agreed plans, schedules & budgets.

Achieve outstanding results.


The 5 Requirements for Good Team-working

1. Team member list, defined responsibilities.

2. Clear, well-understood objectives.

3. An achievable project plan and schedule.

4. Reasonable rules of the game.

5. Leadership by the project manager.


Project Team Demands:

1. Must publish a complete team list

for each project.

2. Each team must define the project objectives in its own terms.

3. Each Project Team must commit to an achievable plan and schedule.


Operational


4. Agency‟s PM process must include procedures to ensure effective teamwork.

5. Leadership training must be provided for the Project Manager.


Continual Improvement in PM

Every project must be reviewed on completion to identify where improvements are needed.

New PM ideas, practices & systems are continually being developed.

Specific efforts to improve are continually needed.


Integrating PM into the Organization

No longer sufficient to treat PM as an “add-on” piece of the organization.

PM processes must be integrated with all other affected management processes. Financial

Human resources

Other


Example of Integrated PM in a Telecommunications Company


Using the Internet to Respond to Its Challenges

Enable improved collaboration.

Reduce travel time and cost, enhance teamwork.

Provide risk and issue tracking, and escalation processes.

Empower staff members.

Automate the PM processes.


The Successful Adoption of Web-Based Collaborative Software

Go to http://gulliver.trb.org/news/blurb_detail.asp?id=5273

for 3 case studies on web-based PM system implementation

Chicago Transit Authority,

The Port Authority of New York and New Jersey,

Raytheon.

http://gulliver.trb.org/news/blurb_detail.asp?id=5273

http://gulliver.trb.org/news/blurb_detail.asp?id=5273


PM Improvement Demands:

1. A post-completion appraisal must be performed on every project:

- Lessons learned,

- Improve PM process, practices and procedures.



2. PM discipline & supporting systems must be fully integrated with affected parts of the organization.



3. A Web-enabled PM system be selected and implemented at the project portfolio or total enterprise level.


Presentation Objectives:

To provide a road map to Ministers and PA senior executives for achieving the full power of project management.

To help PM professionals show their senior managers where the development of project management should be going.


4. Conclusion

If the Minister insists that

these 33 demands be carried out, and

if the managers and staff members

comply with these demands,

thenthe organization will join those on the leading

edge of excellence in delivering the benefits to their citizens and their countries…


Ifthe right strategies

are being implemented!!


Thanks for Listening!

Questions or Comments?

[email protected]

executing strategies through modern project management

Business

il project management

project teams4

project portfolios

project categoriestypes

strategic pm

strategic project management2

predictive project planning

portfolio vs multiproject