lean & green project management - pmi conference

PMI Global Congress - EMEA [email protected] Dublin, May 10, 2011

Nicos Kourounakis, MASc, MBA, PMP, IPMA-D, PRINCE2, OPM3

Project & Strategy Consultant, OPM-CG Adjunct Professor, Hellenic American University

[email protected]

Lean & Green Philosophies

Influences on Modern Project Management

May 10th, 2011 Dublin


Introduction


Google Results:

Lean Manufacturing/Production ….1.939.000

Lean Management …………………………. 288.000

Project Management …………………. 37.500.000

Lean Project Management ……………... 123.000

Lean Projects …………………………….………72.700

Green Management ……………….……… 115.000

Green Projects ………………………….…… 248.000

Green Project Management .…..………. 70.800

Lean & Green Project Management ….. 2.604

Introduction

3.340.000

663.000

82.100.000

150.000

101.000

418.000

543,000

402.000

4.530


• Green Projects

• Greening Projects

• Green Project Management

Lean & Green Project Management

Introduction


• Projects create something unique

• they require effort and energy, and

• deliver an outcome of higher energy/value than the value of its inputs.

Where is energy expended in Projects?

• Work/labor

• management/relationships

• infrastructure

• materials and procurements

• ….and waste!!

Project Management


The “waste side story”

Examples of waste in projects:

• material waste

• process waste

• information waste

• knowledge waste

• management waste

• wasting relationships

• work in process (WIP)

• idle workforce

• unused workforce skills

• rework


Project Management Wisdom

"The last project generated a ton of paper and it was still a *#^% disaster.

So this project will have to generate at least two tons!“

Lean & Green genius


What a waste!

Fujio Cho: Waste is anything other than the "minimum" amount of

equipment, materials, parts, and workers which are absolutely essential.

1. Waste from overproduction

2. Waste of waiting time

3. Transportation waste

4. Inventory waste

5. Processing waste

6. Waste of motion

7. Waste from product defects

12-8


Project Management

Optimizing the use of resources is what a large part of Project Management is about.

But what are we really trying to optimize?

Optimize:

• tasks

• phases

• project

• program

• organization

• industry

• society

• natural environment


The New Context

A new problem:

Projects & project management need to be optimized in a new context:

• much broader

• new priorities

• new project success criteria:

• value

• people

• sustainability

• impact on the project’s environments


Project Success Factors & Criteria

(Turner & Muller, 2006

Value

Time Scope Cost


Value

What is value?

What is “the environment”?

Environment is the surroundings of a system that may interact with it by exchanging mass, energy, or other properties.

Source: wikipedia

Value for who? At what horizon?

Cost < Price m

out

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Project Environment

Consider the Project’s Environments when Managing Projects.

What are the projects environment(s)?

• Project's team (social environment)‏

• Programs

• Supply & Distribution Chain

• Organization

• Society

• Natural environment

• ... space / the universe!

More BS ! EBS - Project Environments Breakdown Structure


Lean

Transformation Process

Green


The Toyota Production System

Was developed to increase quality and productivity.

It is based on two philosophies:

Elimination of waste

&

Respect for people


The Lean Approach

• Eliminate waste

• Minimize inventory

• Maximize flow

• Pull from demand

• Empower workers

• Meet customer requirements

• Do it right the first time

• Abolish local optimization

• Partner with suppliers

• Create a culture of continuous improvement

Lean is centered around creating more value with less work!


Agile Values

• Individuals & interactions over processes & tools

• Quality outputs over comprehensive documentation

• Customer collaboration over contract negotiation

• Responding to change over following a plan Source: http://www.agilemanifesto.org

While there is value in the items on the right,

we value the items on the left more

individuals & interactions processes & tools

quality output comprehensive documentation

customer collaboration contract negotiation

responding to change following a plan


Principles Behind the Manifesto

1. The highest priority is to satisfy the

customer needs.

2. Deliver benefits frequently.

3. Requirement changes are welcome !!

4. Business people and project team must

work together throughout the project.

5. Build projects around motivated

individuals. Give them the environment

and support they need, and trust them

to get the job done.

6. The most efficient and effective method

of communication is face-to-face

conversation.

1. Benefits delivered is the primary measure of

progress.

2. Agile processes promote sustainable

development (be able to maintain a constant

pace indefinitely)

3. Continuous attention to excellence, good

infrastructure & design.

4. Simplicity is essential - the art of maximizing

the amount of work not done!!

5. The best solutions emerge from

self-organizing teams.

6. At regular intervals, the team reflects on how

to improve, then tunes and adjusts its

behavior accordingly.


Agile/Lean Teams

• Build Trust

• Master Conflict

• Achieve Commitment

• Embrace Accountability

• Focus on Results

Source: The Five Dysfunctions of a Team, Patrick Lencioni

Agile Projects depend primarily on people, leadership and effective teamwork.

Close the Performance Gap:

• The least the team can do to get by

• The most the team can do


A Balanced System

Scope

Processes

Documentation

Efficiency

Contracts & Plans

with

Purpose

People

Effectiveness

Uncertainty

Responding to change


A Greener Transformation Process

HR/€

Output= Product/service Inputs

Negative Spill-Over “Positive” Spill-Over

Project

Organization

Lessons learned Maturity gained

Processes improved Growth achieved

Creativity unleashed Relationships reinforced

stakeholders

Burned-out staff Other projects “starved” Corrupted clients Non-ethical Conduct Short term gains


Greenwash

Greenwashing: the deceptive use of green PR or green marketing in order to promote a misleading perception that a company's practices, policies or products are environmentally friendly.

Source: wikipedia

Source: http://www.sinsofgreenwashing.org

• Sin of no proof • Sin of the hidden trade off • Sin of vagueness • Sin of irrelevance • Sin of less of two evils


The Foot - Shoe - Footprint

The Foot

The Shoe

The Footprint

< -- the project

< -- project management <--- Lean it!

< -- impact to the environment(s) <--- Green it!


The 3Rs of L&G Project Management

Reduce

Reuse

Recycle


Reduce - Reuse - Recycle

Reduce:

• Energy consumption

• Inventory & WIP

• Waste (e.g. unnecessary work assignments,

communication/collaboration inefficiencies)

• Rework (low quality, inadequately defined

specs or inefficient change management)‏

• Byproducts (of the project or project

management)

Achieved through:

• High Quality Planning

• Lean & Agile Management

• People-centric Management

• Leadership

Requires:

• Attention to Quality

• Project Management Competence

• Management Support

• Efficiency & Effectiveness (PM & PPM)‏


Reuse:

• Components

• Products

• Plans

• Knowledge & know-how

• Teams

• Contractors → partners


Achieved through:

• Methodology & Processes

• Templates & Documentation

• Lessons Learned

• Team Development

• Long Term Thinking

• Transparency & openness

• Coordination (PMO)‏

Requires:

• Attention to Quality

• Proactive Relationships Management

• Knowledge Management

• Management Maturity

• Organizations (Pgms, chains /networks)‏


Recycle:

• Waste (materials)‏

• Project byproducts

• Project Management byproducts

• Relationships


Achieved through:

• Holistic Approach

• Long Term Thinking

• Impact Analysis on Project Environments

Requires:

• Proactive Relationships Management

• Linking Strategy to Projects

• Long Term Strategies

• Structures (Pgms, project chains /networks)‏


The Theory of Relativity


Symptoms, Problems & Root Causes

Too many small projects

People work overtime

Company of heroes

The de facto resource allocation process is fire-fighting

Resource commitments do not hold

High project failure rate

Disappointment with final project benefits

Target dates do not become commitments

Dysfunctional incentive systems

Opportunistic project management behavior

Projects are late

Projects must queue for resources

No rigorous criteria based on which projects are

selected

Launching new projects is too easy

Lack of focus

Source: JARNO VÄHÄNIITTY, Do Small Software Companies Need Portfolio Management, Too?, Helsinki University of Technology, 2006.


Problems

Symptoms

Root Cause

Identifying Problems


Build a self-reinforcing model

Management Model Dark forces of Management


Build a self-reinforcing model

Management model Dark forces of management

Self-reinforcing structure


Lean PM & Portfolio Management

rework


Portfolio Management

PPP

Source: Blomquis and Muler, Middle Managers in Program & Project Portfolio Management, PMI Publications


Basic Themes of L&G Project Management

• We rely on people to plan & deliver value

• Value is related to both outcomes & processes

• … as perceived by clients, users, the project team, the organization, stakeholder groups -> (the project’s environments)‏

• Cost of production should reflect the “total cost”

• Minimize waste & negative by-products

• ..and maximize positive by-products.

m

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Closing Notes

Quality is linked to green thinking: “Quality is the loss transferred to society”

Greening Project Management:

• Green the Portfolio

• Green the Project Vision

• Green the Project Strategy

• Green the Scope/Objectives

• Green the Requirements

• Sound “business” case & continuous “business” justification: outputs - > outcomes -> benefits

• Create a benefits review plan of the planned “green” benefits.


Conclusions

L&G is an investment:

• requires long-term forward looking/thinking and strategies

• needs management support

• apply “green” Kaizen – small/continuous improvements

• find ways to make the benefits visible

• increases team & customer satisfaction

• improves CSR image

Can we afford not to be Green? Ethics & professional code of conduct:

Respect, Responsibility, Honesty & Fairness.

W. E. Deming:

We don't have to change. Survival is not compulsory...


Nicos Kourounakis, MASc, MBA, IPMA-D, PMP, PRINCE2, OPM3

Project & Strategy Consultant, OPM-CG Adjunct Professor, Hellenic American University [email protected]

Lean & Green Philosophies

Influences on Modern Project Management


Nicos is a Project Management Consultant with expertise in Project Management Methodologies, Portfolio Management and Organizational Project Management Maturity.

Nicos has been involved in many international projects in Canada, the United States, the United Kingdom, Ireland, Belgium, Austria and Greece, working both with large organizations and with smaller ventures and start-ups. As a Product Manager he also managed the successful development and launch of an innovative Enterprise Project Management software application, which is currently used by several EU Agencies.

Mr. Kourounakis has also several years of experience in training and public speaking. As an Adjunct Professor at the Professional MBA program of the Hellenic American University in Athens, Greece, he has taught courses and delivered seminars in Project Management, Portfolio Management, Operations & Supply Chain Management and Management of Information Systems. He has also been involved with PMI both as a speaker at the 2011 PMI Global Project Management Congress in Dublin, at PMI-Istanbul 2012, and PMI BeLux in 2012 (Keynote Speaker), and as an elected Vice President of the Board of Directors of the PMI Chapter in Athens, Greece (2008-2011).

Mr. Kourounakis holds an MBA from McGill University, Montreal, Canada, a MASc in Electrical Engineering from the University of Victoria, Canada, and a BSc in Physics from the Aristotle University of Thessaloniki, Greece. Nicos is also one of the first 100 professionals to be certified in PMI's Organizational Project Management Maturity (OPM3).

http://www.linkedin.com/in/nicoskourounakis

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https://twitter.com/nkouroun

Nicos Kourounakis, MASc, MBA, PMP, PRINCE2, IPMA-D

Presenter Profile

http://www.linkedin.com/in/nicoskourounakis

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