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Strategic Project Management - Away from PBO By Default Shadow

P D RwelamilaProfessor of Project Management &

Procurement Systems Graduate School of Business Leadership

University of South Africa (UNISA) South Africa

What to CoverContext – PM for Contemporary Organizations Context – Forewords (4#)Context – Executives/Foot soldiers What is a PBO & Challenges in Practice? Visiting the Project Coal-faceLinkage Between Projects & Strategy – Prac tical dilemmasProject Management Maturity – How mature is your organization?Internal Re-engineering - Strategic PM in action

7 Primary Forces of Change Facing Contemporary Organisations

Compression of product life cycleGlobal competitionKnowledge explosionCorporate downsizingIncreased customer/client focusRapid development of non industrialised countries & closed economiesSmall projects represent big problems

PRIMARY FORCES FACING CONTEMPORARY ORGANISATIONS

Compression of the product/service life cycle:computer aided design (CAD) & manufacturing (CAM), have forced radical changes in the product life cycle & clients are more demanding for improved services.

Global competition:transformation from national or regional economies to one global economy during the 1970s, has brought pressures on quality improvement and cost containment

PRIMARY FORCES (Contd.)

Knowledge explosionthe growth in new knowledge has increased the complexity of projects because projects encompass the latest advances & services are also more technologically complex.it is hard to find a new product that does not contain at least one microchip

• the need to integrate divergent technologies (through PM)

PRIMARY FORCES (Contd.) Corporate downsizing

after years of stressing growth and ‘big is better’, organisations have begun to face the harsh reality that big is also costlydownsizing (or rightsizing if you are still employed) and sticking to core competencies have become necessary for survival of firms. Middle management is a mere skeleton of the past - PM is replacing middle managementit is rare today to find any major project performed totally in-house - outsourcing, where the PMs have to manage their own people but also their counterparts in different organisations

PRIMARY FORCES (Contd.) Increased Customer focus

the majority of customers no longer simply settle for generic products/or services. They want customized products/services that cater for their needsthe customized environment requires a much closer working relationship between provider & receiver

• PM is critical both to development of customized products and services and to sustaining lucrative relationships with customers

PRIMARY FORCES (Contd.) Rapid development of Developing Countries & Closed Economies

the collapse of the Soviet Union, Apartheid, etc., and the gradual opening of Asian communist countries, SADC and other African countries have created an explosion in pent-up demand for consumer goods & infrastructure developmentthere is scramble to introduce new products and services to these new markets & many firms are using PM techniques to establish distribution channels & foreign bases of operations

PRIMARY FORCES (Contd.) Small projects represent big problems

the velocity of change required to remain competitive or simply keep up has created an organisational climate in which hundreds of projects are implemented concurrently - the climate has created a multi-project environment and a plethora of new problems.

THE FORCES ARE REAL!PM is ideally suited for a business environment requiring accountability, flexibility, innovation, speed, and continuous improvement.

THE IMPACT OF THE 7 FORCESit is no longer possible to to use traditional management methods to solve problems (individuals solving problems!!) - the need to use teams to solve problems (combined skill?)organisational response to the forces cannot take the form of an instantaneous transformation from the old to the new

Forewords (1)“We found that too many leaders and managers,

particularly at the upper and senior levels, were inclined to view project management as a special case management – a minor departure from the proper or expected ways of managing the organizations. Too often, these managers failed to appreciate the strategic role that projects can play in the management of their organizations. Up until the last few years, many managers tended to tolerate rather than fully accept project as the way to enhance organizational effectiveness. This caused PMs, functional managers, and project professionals to see themselves in ambiguous roles in supporting project initiatives.”:Cleland & Ireland (2007)

Forewords (2)

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“Aligning the organization’s portfolio of projects to maximize their contributions to strategic

objectives takes a highly coordinated effort. It requires more than the old "grenade over the

wall" approach, in which the planning staff identifies and characterizes the project and then

tosses it to an uninformed and uninvolved project management group that is supposed to complete

the project. - everyone must be engaged with the project before charging ahead.”

- Dinsmore & Rocha (2012)

Forewords (3)“PM is no longer about the sequence of steps

required to complete the project in time. It is about systematically incorporating the voice of the customer/or client (my emphasis), creating a disciplined way of prioritizing effort and resolving trade-offs, working concurrently on all aspects projects in multifunctional teams,and much more. ……….- in this case 80% of the costs are determined before they take over.” :Jones (2003): Lean Enterprise Research Centre, Cardiff Business School, UK

Forewords (4)“There are huge opportunities for eliminating wasted time

and effort in almost every project . In manufacturing, Toyota estimate that only 5% of activities actually add value, 35% are necessary but do not add value, whilst the remaining 60% is pure waste – ‘muda’ in Japanese! By halving the effort in designing a new car, they show this ‘muda’ can be reduced by good project management. Every PM…has not only to manage their own project but seek ways of eliminating the ‘muda’ in their systems so they can do more for less, and more quickly next time!” :Jones (2003): Lean Enterprise Research Centre, Cardiff Business School, UK

ProjectLink in the midst of the Upstream and Downstream of Project Management Development

Strategic Project Management

Tactical Project Management

Technical + Social Cultural Project PM

Executive Management Interface between Project Link and Clients (internally and externally) and the focus to

continuously ensuring appropriate and optimised solutions

[Strategic emphasis; Core team & organisation; PMIS; Developing a PM; Becoming a learning organisation; Inter-organisational relations]U

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The Project Manager and his/her Team’s Interface with stakeholders applying Project

Management Best Practices

The Project Manager and his/her Team’s Integration and Optimisation of the Required Project Resources (Technical)

+ Management (Social-cultural Issues)

Do You Know Who You Are?

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A Project Based Organization (PBO): Characteristics (1)

management by projects must be an organisational strategy;

adoption of temporary organisations for the performance of complex processes;

it must manage a portfolio of different project types;

it must have specific permanent organisations to provide integrative functions;

Do You Know Who You Are?

17

A Project Based Organization (PBO): Characteristics (2)

it must apply a ‘new management paradigm’ (lean management, total quality management (TQM), business process re-engineering and learning organisation);

it must have an explicit project management culture; and

it must perceive itself to be project oriented.

Default Project Based Organizations

Project unlinked to coherent strategiesUpper managers are unaware of the total number &

scope of projects being undertakenLip service to learning from projects (audits & close-out

reports out of the equation)Window dressing project management information

systems The core-team is very weak and chaotic

PROJECT BASED ORGS. BY DEFAULT AS A NORM

Project Management A Cinderella Field?

8 out of 10 project managers are accidental or have inadequate PM knowledge base

Most organizations are fundamentally project based, are PBO by default – characterized by archaic & fragmented systems

Project management training is characterized by curricula falling short a significant number of project management fundamentals

PROJECT MANAGEMENT POSTURING SEEMS TO DOMINATE

Accidental Project Managers – custodians Individuals are appointed as PMs because they have

qualifications in the same field as the project’s core business

Player and referee roles – a conflict recipe Perpetual competence challengesUnderstanding the social coalition dynamics (Overflowing IQ

or Overflowing EQ or Balance IQ/EQ?)

THE GROWING SYNDROME WITH ENTRENCHED DYNAMICS

Project Management -Context & Concepts

From a Linear Model to a Complex 3-Dimensional Maze –environmentFeatures of a Project

A Project - Part of a Complex System(3-Dimensional Maze)

Inputs & outputsSector/Industry environment Country/Economy environmentGlobal environment

the need to understand the dynamics of environments

Project & PBO forces

Sector/Industry forces

Country/Economy forces

Global Forces

Inputs Output(s)

A 3-Dimensional maze –environmentH&S – Health and Safety; Env. - Environment

Quality

Schedule

Cost

Utility

Project stakeholdersH&S +Env.

Features of a ProjectPrimary features:

a project anatomy (life cycle) (a beginning and end, with a number of distinct phases in between) – linear model?a budget with an associated cash-flowactivities that are essentially unique and non-repetitiveuse of resources, which may be from different departments & need co-ordinatinga single point of responsibility (i.e. the project manager)team roles & relationships that are subject to change & need to be developed, defined & established

Time

Total Project Life Cycle

Plan Accomplish

Phase 1CONCEPTConceive(C)

•Gather data•Identify need•Establish

•goals, objectives•basic economics,feasibility•stakeholders•risk level•potential team

•Guesstimate resources•Identify alternatives•Present proposal•Obtain approval for nextphase

Phase 3IMPLEMENTATIONExecute(E)

Set up:•organisation•communications•Motivate team•Detail technical requirements•Establish:• work packages• detailed schedule• information control • systems•Procure goods and services•Execute work packages•Direct/monitor/forecast/control:• scope, quality, time, cost•Resolve problems

Phase 4TERMINATIONFinish(F)

•Finalize product(s)•Review and accept•Transfer product responsibility•Evaluate project•Document results•Release / direct resources•Reassign project team

Project Life-Cycle [generic] (developed from Rwelamila (2001) , the PMBOK series. Volume 1, Wideman and Fellow, 1991, p111-2)

Phase 2DEVELOPMENTDevelop(D)

•Appoint key team members•Conduct studies•Develop scope baseline:• end product (s)• equality standards• resources• activities•Establish:• master plan • WBS• policies and procedures•Assess risks•Confirm justification]•Present project brief•Obtain approval to proceed

Phase 5OWN & OPERATEFinish(G)

•Project operatecommercially•Project producescash flow to paylender’s debts interest and principal repayment.•Cost (operation &maintenance, etc)•Training?

Phase 6TRANSFERFinish(H)

•Quality of Facility/service•Evaluation process

Operation/ Use

Bridging the Gap Between Organisation Strategy & Projects

– in the face of adversity!

From Organizational Planning to Project Implementation

Organizational Strategies – Organization strategies are arrived at through conventional strategic planning

General Project Alignment – Once the strategic objectives are identified, successful strategic project alignment depends on establishing a fundamental interface between those objectives & each project’s specific setting. Activities that bridge the gap between strategic objectives & specific project planning are stakeholder management, prioritization, risk management organization-wide systems, & strategic project planning

Most PBOs have poor communication systems – a good number of projects suffer from non provision of appropriate network & necessary data

SYMPTOMS – OPPOSITE TO PROJECT CRITICAL FACTORS

DEVELOPING A CORE TEAM PROCESS, ORGANISING FOR PM & DEVELOPING A PM INFORMATION SYSTEM

Developing & supporting core teamsOrganizing the Project Management effortDeveloping the Project Management information system

The Role of Project Core Teams (1)

The organisation of people into ad hocgroups takes advantage of bringing together individuals from different specialism/departments as needed for a project task

the need to differentiate between ‘team’ & ‘group’

The Role of Project Teams (2)A ‘group’ is simply a collection of people.A ‘team’ meets the following characteristics:

the output of the group is greater than the sum of the outputs of the individuals;a greater range of options can be considered by exploiting differences in individual thought process;decision-making by team is likely to be better;more openness to taking risks, as the risk is shared between the team rather than carried by one individual;higher overall level of motivation as there is an inherent responsibility to others in the team & a desire no to let them down; andbetter support for the individuals within the team, who are more likely to be included in a greater range of activities than they would normally be exposed to, but without their having to work alone.

The Role of Project Teams (3)

Why focus on the role of teamwork?to help the PM in the design & selection of the workgroup;to enable the monitoring of the degree to which the team is functioning effectively; andto provide feedback to the team to help improve effectiveness.

The Role of Project Teams (4)

Life-cycle of Teamsteams have various stages of developments:• collection• entrenchment• resolution/accommodation• synergy• decline• break-up

using this knowledge, the organization can resist moving core team members once they are assigned

Table 9.2 Team life-cycle

. Stage Characteristics

Collection The bringing together of individuals into agroup with a collective task or problem to solve. The participants have a de gree of eagerness and initial enthusiasm and generally rely on the authority and hierarchy to provide a degree of certaintyin this uncertain environment. They will use this initial phase to establish themselves and find what is expected of them.

Entrenchment As the group starts work they begin to find out where each person stands on various issues.The entrenchment comeswhen people:;arrive with preconceived ideas as to how the project should be proceeding and are unwilling to be persuaded of the merits of allowing the group to decide on the course of action. This phase can be very destructive and is generally fairly unproductive . The reasons for this unproductiveness are issues such as disillusionment with the goals of the project,competition for power or attention within the group, or general confusion as the work being undertaken bears littlerelationship to the goals of the project.

Resolution/ The disagreements begin to be resolved, and characteristics such as mutual accommodation trust, harmony, self-esteemand confidence are seen.This is where the team

starts to put aside the negative social effects and move to being more productive.

Synergy Basedon Ansoff (1968), synergy is defined as when the output of the whole is greater than what would be obtained from thecomponent parts, otherwisestated as 2 + 2 =5. This is the peak of effectivenessof the team, leadershipis shared, and there is a new motivation to complete the tasks at hand.

Decline At some point the team will meet an event when its effectivenessstarts to decline - this can be throughh the nature of thetask being undertaken not changing or the focus of the activities being allowed to move towards a social group.

Break-up If this occurs naturally before the task is finished, there can be problems in getting a new team to take up the remaining work. They will be expected to get 'up to speed' very quickly and have an additional pressure on them.Where the group finishes its·task and it is during one of the earlier stages of development, either in resolution or synergy,the effects on future projects can be highly beneficial as the participants go away with good memories of the work theyhave done.

The Role of Project Core Teams (5)

Personalities in teamsunderstanding of the ways in which individuals behave in group situationsthe curriculum vitae & interview, though maligned, is still the normal mode for recruiting in most project environments

Roles and descriptions - team-role contribution

Allowable weaknesses

Plant: creative, imaginative, unorthodox. Solves difficult problems.

Resource investigator: extrovert, enthusiastic, communicative. Explores opportunities. Develops contacts.

Ignores details. Too pre- . occupied to communicate effectively.· Overoptimistic. Loses interest once initial enthusiasm has passed.

Coordinator:mature, confident, a good chairperson. Clarifies goals, promotes decision-making,dele- gates well.

Can be seen as manipulative. Delegates personalwork.

Shaper:challenging, dynamic, thrives on pressure. Has the drive and courage to overcome obstacles.

Can provoke others.Hurts people's feelings.

Monitor evaluator:s.ober, strategic and disterning. Sees all options. Judges accurately.

Lacks drive and ability to inspire others.Overly critical.

Teamworker:cooperative, mild, perceptive and diplomatic. Listens, builds, averts friction,calms the waters.-

Implementer: disciplined, reliable, conservative and efficient. Turns ideas into practical actions.

Completer: painstaking, conscien- tious, anxious. Searches out errors

· and omissions. Delivers on time.

Indecisive in crunch situations. Can be easily influenced. Somewhat inflexible. Slow to respond to new possibilities.

llnclined to worry unduly. Reluctant to delegate. Can be a nit-picker.

Specialist: single-minded, self- starting, dedicated. Provides knowledge and skills rn rare supply.

Contributes on only a narrow front. Dwells on technicalities. Overlooks the 'big picture'.

The Role of Project Core Teams (6)

Effective TeamworkProject teamwork must make a positive contribution to the success of the project:• the structure of the team & its composition are broken

down into 3 basic categories - related to the appropriate or most likely phase in the project life-cycle

• how teams work? - the disintegrated group (no agreement between team members & decision process in turmoil); - the integrated team (there is complete consensus on all matters, but gone over the edge in terms of effectiveness)

Project Core Teams – Beyond Comfort (7)

Effective Teamwork - the internationalization & globalization environment (1)

in the last 12 years there has been a massive increase in internationalization & globalization of business.This process has been institutionalized by various international agencies, such as:

• GATT (General Agreement on Tariffs & Trade)• GATS (General Agreement of Trade & Services)• WTO (World Trade Organisation)• EU (European Union)• NAFTA (North American Free Trade), etc.

The Role of Project Core Teams (8)

Internationalization & globalization (1)

The culture shock!

• A PM + Team members as encapsulators?• A PM + Team members as absconders?• A PM + Team members as cosmopolitans?

The Role of Project Core Teams (9)Internationalization & globalization (2)

The PM relocation transition curve:• unreality• fantasia• interest• acceptance of reality • experimentation• search• integration

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The Relocation Transition Curve

RELATIONSHIP BETWEEN LENGTH AND RIGOUR OF TRAINING AND CULTURAL FLUENCY REQUIRED

Length of Training

Level of Rigour

Cross- Cultural Training Approach

1-2 Months

1-4 Weeks

Less than 1 Week

High

Low

Information Approach Area briefing Cultural briefing Films/books Use of

interpreters Survival-level

language training

Effective Approach Culture

assimilator training

Role- playing Cases Culture shock:

stress reduction training

Moderate language training

Experiential Approach Assessment

centre Field

experiences Simulations Extensive

language training

Length of stay 1 or less (Months)

2-12 (Months) 1-3 (Years)

ORGANIZATION STRUCTURE

There is no ‘best’ kind of organisation structure- the most appropriate structure depends on the organization's goals, type of work, and environmentAs organizations grow or the environment changes, additional subdivisions and new groupings are implemented to better handle new situations & emerging problems.

CHOOSING AN ORGANISATIONAL FORM (STRUCTURING PROJECTS)

choice is determined by the situation, but even so is partly intuitiverisks involved in the project!cultural preferences of the parent organisation

Pure Project (Dedicated/or Fully projectized) Organisation(1) Fig.2-8

the project is separated from the rest of the parent systemone individual, the programme/project manager , maintains complete line authority over the entire project

Pure Project Organisation (2)

Merits:control over resourcesresponsiveness to customers

Demeritscost-inefficiencylow level of knowledge transfer among projects

Functional Project / or Mixed Organisational System (1) Fig.2-7

nearest to the traditional functional hierarchy where the PM co-ordinates the resources across functional departmentslittle formal authority to the PM to manage the project, control resources, or make decisionssuitable for nurturing smaller projects that are not yet stable under the wing of an existing dept. (later allow them to have autonomy when ready)

Functional Project / or Mixed Organisational System (2)

Merits:no duplication of activities functional excellence

Demerits:insularityslow response timelack of customers focus

Matrix Project (1) Fig.2-11a combination of pure & functional projectthe topology of the matrix structure has same format as a mathematical matrix (vertical lines represent the functional dept.’s responsibility & authority, while horizontal lines represent the project’s responsibility & authority)there is no single executive to whom PMs generally report

Matrix Project (2)

Merits:efficient utilisation of resourcesfunctional expertise available to all projectsincreased learning & knowledge transfer improved communication & customer focus

Demerits:dual reporting relationshipsneed for balance of power

Project Organisation (Comments)The positive & negative features of alternative organisational forms & their variants (hybrids) need to be understood by top management so that they can select the organisational form most suitable for their situation

DEVELOPING THE PROJECT MANAGEMENT INFORMATION

SYSTEM(PMIS)

“Information is no longer simply a strategic asset; it is a critical enabler of

success.”

Birnbaum (2001)Hewlett-Packard Senior VP of R&D

Developing the Project Management Information System (PMIS)

For a continuously operating Project Portfolio Process, monitoring the critical project measures, such as the PM Office, is required so projects can be determined, if necessary, and new projects initiated. Monitoring is collecting, recording, and reporting information concerning any and all aspects of project performance that the PM or others in the organisation wish to know.>Hence the need for a PMIS

Information - food for the system

Ability to conduct evaluations - quality of information will determine the strength of base informationAbility to produce a reliable proposals -depends on the quality of information availableAbility to manage risks - depends on the quality of information available

Contents of PMIS

According to Graham & Englund (2004), the PMIS should do the following:

Answer questions of the major stakeholdersFacilitate communication between team members, team members & other stakeholders, between PMs, & PMs and upper managersHelp to answer “what if?” questions (allocation of resources)Help organisation learning (e.g., audit & close-out information)

Developing a PMIS

The need to agree up front on the specifications of the PMIS (what should be the content & how much information)Upper managers to agree on what they require from the PMIS - What should be the input? What should be the output?

BECOMING A LEARNING ORGANISATION

Project Audit & Closure“Those who cannot remember the past

are condemned to fulfill it.”- Santayana (1863-1952)

“We learn from experience only if the experience is preserved & studied.”

- Whitaker (1999)

Project Audit (2)It is estimated that about 90% of all projects across industries/sectors are not seriously reviewed or audited10% of projects that are seriously audited appear to be done by extremely well-managed organisations which are vigorously committed to continuous improvement & organisation learning

Project Audit - report outlineA very general outline common to those found in practice is as follows:(1) Introduction (description of the project,

objectives) (2) Current status (on project parameters)(3) Future project status (auditor’s conclusions on

progress)(4) Critical management issues (issues requiring

close monitoring)(5) Risk management (review of major risks & their

impacts)(6) Caveats, limitations & assumptions

Project Review/Closure (1)

“…termination comes to every project. At times, project death is quick and clean, but more often it is a long process; and there are times when it is practically impossible to establish that death has occurred.”

- Meredith & Mantel (2013)

Project Review/Closure (3)The final project review/closure report:

Good project management systems have a memory. The embodiment of this memory is the final project closure report. The final report is not another evaluation; rather, it is the history of the project. It is a chronicle of the life and times of the project, a compendium of what went right & what went wrong, of who served the project in what capacity, of what was done to create the substance of the project, of how it was managed.

Project Review/Closure (4)The report content:(1) Project performance - comparison between what

was achieved VS what project tried to achieve(2) Administrative performance - don’t treat the

‘pencil pushers’ with grudging tolerance!(3) Organisational structure - how the structure

aided or impeded the progress of the project(4) Project & administrative teams - individuals &

interpersonal communication & cooperation(5) Techniques of project management - outcome

dependent on the skill with which the forecasting, planning, budgeting, scheduling, resource allocation, risk management, and control are h dl d

ORGANIZATION MANAGEMENT

PROJECT C

PROJECT B

PROJECT A

PROJECT D

PROJECT E

PROJECT F

PROJECT G

PROJECT H

PROJECT IPROJECT J

PROJECT K

PROJECT L

Operational Goals

Multi-Disciplined Teams

Source Resources

Logistics

Team Mobilization

Procurement

Create Product & Service Portfolio

Monitor Expectations

Product/Service TargetsInterfacing

Company Objectives

Mission, Vision

PROJECT-SPECIFIC PRINCIPLES

GENERAL PROJECT ALIGNMENT

Stakeholder Management

Prioritization

Organizational Overview

Strategic Project Planning

Risk Analysis

Organization Management

OPERATIONAL PROJECTS

STRATEGIC PROJECTS

CAPITAL EXPANSION PROJECTS

PROJECTS FOCUSSED DIRECTLY TO STAKEHOLDERS

FROM ORGANISATIONAL STRATEGY TO PROJECT IMPLEMENTATION

Common Project Challenges - Symptoms (1)Most PBOs do not have appropriate troubleshooting

strategies – most projects suffer from inabilities to handle unexpected crises & deviations from project plans

Dominance of incompetent PMs – a significant number of people who assume positions of PMs are technical experts & incompetent administratively, interpersonally, and technically (project specific)

Excessive power & politics – it is common to find high degrees of political activities within organisations & perceptions of projects furthering self-interests of organisation members

SYMPTOMS – OPPOSITE TO PROJECT CRITICAL FACTORS

Common Project Challenges - Symptoms (2)

Negative impact from environmental events – it is common to find external organisational factors (especially within public sector) affecting operations of project teams negatively

Urgency is an elusive word (especially in public sector organisations) – fundamental fact of a temporary social coalition seem far away and the consequences on project parameters are enormous

SYMPTOMS – OPPOSITE TO PROJECT CRITICAL FACTORS

Which Model of Project Management?

The PMI (PMBoK)? The APM (APMBoK)?

The IPMA? BS(BS6079-1:2002)?

ISO (10006:2003)? PRINCE2 (OGC2003)?

IAPPM (CPPBoK)?

Project Management

of Change Project

Organization Project: Changing to Managing

Organizations by Project

Planning

Review of Mission &

Vision

Control

Change Management

Strategic Alignment

Organization Performance

Objects

Cultural Change

Communication People

Organization & Management Requirement

Administration

Stakeholder Analysis

Statement of Policy MOBP

External Influence

Positioning Regarding

Market competition

Revalidation of

Organization Objectives

Setting Performance

Standards

Operational Premises

Internal Agreements

Results Analysis

Change Definition

Rethink or Review

Company Values

Organizational Climate: Now

Organizational Climate: Future

Communication Strategies

Monitor Communication

Selection Channels

Spread the Word

Team Building

Roles & Responsibilities

Allocation & Reallocation

of People

Evaluation of PM

Competency

Developing New

Competencies

Competency-Based Pay

Systems

Organization Design

T & D Strategies

Process

Technology

Reporting Relationships

Change management of the project

Management of resistance

to change

Positioning of leadership

Evaluation of alliances Trend analysis

THE NEED FOR ORGANIZATIONAL CHANGE – PROJECT BREAKDOWN STRUCTURE APPROACH

How mature is your organisation? (1)Capabilities of applying PM good practices against others in a particular industry/or sector:Stage 1 (Initial): no formal methodology, training, project

review process, project authorization process, project risk assessment; projects are typically late, over budget, no utility considerations, poor quality.

Stage 2 (Repeatable): move (just) above Stage 1; 25-50% of projects deliveries are on time, within budget, utility issues addressed & there are quality considerations

Stage 3 (Managed): 50/50 move on Stage 1 issues; 50-75% of project deliveries are on time, within budget, utility issues addressed & there are quality considerations

How mature is your organisation? (2)Capabilities of applying PM good practices against others in a particular industry/or sector:Stage 4 (Distributed): Opposite of Stage 1

characteristics; Certification in PM is a requirement for all PMs; All employees require basic PM knowledge & skills to be employed; 75-95% of project deliveries are on time, within budget, clear utility considerations and quality.

Stage 5 (Sustained): management by projects is an organisation philosophy; Executives & managers are PM certified; all PMs must complete internal qualification/certification program; continuous improvement is a norm; and 99% of projects are within Q, C,T, & U levels.

How mature is your organisation? (2)The amount of time it takes an organisation to achieve full maturity vary significantly from one organisation to anotherVery few organisations have reached the 5th stageMany organisations have achieved the 3rd Stage & parts of the 4th StageIt is not unusual for an organisation to exhibit some of the characteristics in more than one stageIt is not possible to skip a stage (because maturing is a process that requires time)

Where to From Here?

Ability in technical expertise is not an overriding indicator of the effectiveness of a PM – temporary leadership potential a requirement for a PM

Balanced training: technical & socio-cultural –proposed curriculum

‘Grenade on the wall’ approach – negating the principles of a core team & matching strategy with projects

STRATEGIC PM IN PROJECT ORIENTED ORGANIZATIONS – CENTRAL FOCUS

Aligning projects with strategy (What to do) (1)

Undertake a review of all the projects thatare currently under way as well as those completed

over the past year (1)

(i) Ask every department to list all of the projects that theyare currently working on. What is the goal of each? What

is the strategic alignment, if known?(ii) Create an inventory of all projects in the organization,

regardless of size or scope, that are currently on the gowithin all departments and within the whole organization

Aligning projects with strategy (What to do) (2)

Undertake a review of all the projects thatare currently under way as well as those completed

over the past year (2)

(iii) Measure each of these projects. Are they within Q, C, U, & S& according to the original scope? Are they meeting

requirements as defined? Or, are there no measurements inplace?

(iv) Identify projects completed over the past year and measuretheir success rate. These lessons learned will help to identify

project prioritization in the next step.

Aligning projects with strategy (What to do) (3)

Develop a systematic approach to prioritizing allprojects(1)

(i)Develop criteria against which to prioritize all projects Includeimpact on organization strategy and stakeholders. This is best

done with a subcommittee of senior management. (ii) List all projects along with their goal, purpose and strategicalignment and the identified criteria necessary for determiningthe expected impact each project will have on the organization.This process will allow you to rank each project quantitatively

and determine its level of priority.

Aligning projects with strategy (What to do) (4)

Develop a systematic approach to prioritizing allprojects (2)

(iii) Establish a committee of senior management to review andassess project prioritization on a monthly basis. This committee

will provide final approval on all project implementationpriorities.

Aligning projects with strategy (What to do) (5)

Align projects to organizational strategic plans (1)

(i) Review the organization strategic plans and if none exist meetwith the senior executive team to gain an understanding of the key

strategic priorities. (ii) Examine all projects to determine their alignment with the

organization strategic goals. This strategic alignment willdemonstrate how each project's successful execution will support

the organizational strategic plan.

Aligning projects with strategy (What to do) (6)

Align projects to organizational strategic plans (2)

(iii) Terminate projects that are of low priority or not somehowlinked to organizational strategy. Their immediate terminationwill ensure they stop costing the organization money, resources,

time and unhappy stakeholders. Projects not linked toorganizational strategy add no measurable value to the

organization.