Training Project Managers in Small Aerospace Businesses to Increase

Sustainability

Presented by Dr. John C. Leavitt

Background

• Small businesses constitute a significant roll within the U.S. economy• They create over half of the non-farm private gross domestic product and

hire over 40% of high-tech workers such as scientists and engineers. According to Yallapragada and Bhuiyan (2011),

• The U.S. government has historically supported small businesses since they play a significant role within the high-tech markets;

• ‘Small business’ is the spark that ignites innovation- 13-14 times more intellectual property (patents) come from small businesses

• Small business therefore should continue to receive assistance in obtaining government contracts because reductions may negatively impact the economy (SBA, 2010; Senge, 2009).

• The U.S. Government has levied requirements to retrain and certify project and program managers on Government contracts. They are now required or strongly encouraged for many A&D government subcontractors.

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Why do Small Businesses this matter to US? AACEI

• Governmental agencies are expecting programs and projects to contain costs and create functional cost estimates for small task order driven businesses to large Government contracts.

• Training Project Managers will help satisfy this requirement – Realistic Basis of Estimates (BOE’s) for cost and

schedule to help the government evaluate true contract value.

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Problem Statement

• The problem statement, from the research study I conducted is as follows:

• More than 660,000 small businesses in the United States failed in 2009 (SBA, 2010).

• According to the DoD (2010), 31% of A&D contracts are at risk of not being offered to small businesses.

– Small businesses focusing on high-tech markets of A&D industries drive future innovation and are important to the overall health of the U.S. economy (SBA, 2009c).

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Problem Statement

• The general business problem was that small businesses may not meet new federal government requirements for PM certification (NASA, 2009b).

• The specific problem in high-tech areas such as A&D is that proof of PM competency or certification was either required or strongly encouraged to bid new government contracts (FAI, 2007).

– Small businesses may be unable to afford the costs associated with new and future training or certification requirements and will risk the loss of significant government revenue opportunities (DoD, 2010).

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Purpose Statement

• The purpose of this qualitative, phenomenological study was to identify the contributing factors of a successful project management training plan. I interviewed 20 (purposely sampled) small business executives from the aerospace & defense market of the Southeast United States.

• For a PM training plan designed for small businesses within the A&D market to be successful, the plan has to be easy, quickly implementable, and have a low cost (Bager, 2011; FAI, 2007; Haug, Soren & Arlbjorn, 2011).

• Failure of small businesses within A&D markets is a significant social concern- the impact on society if ‘Small Businesses’ fail it would be in direct conflict with the FAR established to ensure the sustainability of small businesses (FAI, 2010). 

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Research Question/s

• The overarching research question was: what contributing factors for a PM training plan will help to sustain small businesses for U.S. A&D markets?

• The researcher asked eight interview questions to obtain the data that fully answered the research question, such as:

• What level of academic degree and PM certification, or combination thereof, would be the most desirable to your organization?

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Conceptual Framework for qualitative studies (looked at several-came back to TLT)

• transforming, or transformational, theory (Favored by PMI)– First introduced by James McGregor Burns in 1978

• task oriented leadership– Bales, 1950 (Task Driven good for managing process not leading teams)

• theory of constraints (Identify the constraints, resolve or re-org)– “The Goal” Goldratt & Cox, 1992 (Rhee, Cho, & Bae, 2010) Weakest link ideology

• “Transformational Leadership is concerned with not only performance but the development of followers to their fullest potential” from within (Nichols, 2008)..

• The PMI stresses teamwork and the use of high-performing work teams within the PMBOK. Transformational leadership ensures that leadership will broaden and elevate the followers’ interests by stirring them to look beyond their own interests for the good of the team or the project (Andersen, Dysvik, & Anne, 2009).

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Literature Reviewedan overviewHistorical (prior to 2007) Business management or

education documentsGovernment/Aerospace-

related documentsPM or program

management-related documents

Books 5 1 1Journals 8 0 0Magazines 0 0 0Webpages or online documents

0 1 0

Total 13 2 1

Current 2007-2012 Business management or education documents

Government/ aerospace-related

documents

Project/program management-related

documentsBooks (46) 11 24* 11Journals (86) 53 5 28Magazines (1) 0 0 1Dissertations (4) 2 0 2Webpages or Gov online documents (23) 1 11* 11Total 67 40 53

Peer Reviewed Current 2007-2012

Business management or education documents

Government/ aerospace-related

documents

Project/program management-related

documentsBooks (36) 6 21* 9Journals (86) 53 5 28Magazines (0) 0 0 0Dissertations (4) 2 0 2Webpages or Gov online documents (14) 0 7* 7Total 61 33 46

Table 1

Breakdown of Historical Documents Reviewed

Table 2

Breakdown of 160 Current Documents Reviewed

Table 3

Breakdown of Current Peer-Reviewed Documents (140 or approximately 88%)

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Method/Design chosen helped add new insights

• I considered many methods to test or quantify whether the stakeholders were aware of options for low-cost training available to them. A single-shot case study was considered. However, as Campbell and Stanley (1963) pointed out, “Such studies have such a total absence of control as to be of almost no scientific value” (p. 6).

• In the end, I used a qualitative method, and phenomenological designed approach. The use of open-ended interview questions was appropriate to collect data that took into account the essence of the lived (human) experience; in addition, the data supported the knowledge obtained from the literature review (Creswell, 2009; Turner, 2010)-provided valuable insight into the needs and perceived value of PMP certification training.

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Population and sample size

• The researcher employed a combination of criterion sampling and purposeful sampling, as defined by Suri (2011). – The specific criteria for selection was to hold a current position of leadership

in a small business operating within the SE-US & within the A&D market.

– Purposeful sampling was to invite participants from within the A&D market in the Southeastern United States.

• The established sample size of 20 for the interviews was considered an appropriate sample size for a qualitative study (Mason, 2009). – The sample size was relational to the depth required (Marshall, 1996).

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Data Collection/Organization Techniques and Tools Employed

1. The researcher sent out over 150 invitations to participate

2. Selected participants completed a letter of Informed Consent

3. Telephone interviews were scheduled

4. The researcher recorded all interviews on both analogue and digital recording systems

5. The researcher coded and transcribed the interviews

6. The researcher used MS Word, MS Excel spreadsheets and NVivo v.9 software to sort, manipulate and store the coded data used to identify emergent themes through the IPA method

I have secured soft copies of the resultant data on two sets of CD-ROMs and have placed them in a personal safety deposit box where they will remain for 5 years

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Analysis of the DataThe use of Interpretive Phenomenological Analysis (IPA)

• IPA was the primary method of analysis used. – Except for the coding of participants names and identifying information,

the coding or annotating the insights of the participant’s responses, used a bottom-up method generating the coding from the data rather than applying a pre-existing code set to the resultant data

– Using IPA required the researcher to gain insights into the meaning of the participants responses and then interpret those insights without changing the significance or connotation of the respondents’ response (Smith, Flowers, & Larkin, 2009)

– Grouping took place by counting of participants who seemed to agree or trend together to align participant responses into a specific group or theme (Fade, 2004).

– Cross-validation and triangulation was then used to validate the groupings and themes found using the NVivo v.9 (QSR International, 2011) software (Kikooma, 2010).

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After IRB approvala pilot study was employed

• To ensure the validity of the interview instrument, the interview questions were piloted with five participants– This pilot followed the interview procedure and provided feedback about

the clarity and answerability of the questions to ensure scholarly content

• The researcher discussed the feedback from the pilot study participants with the study chair – would incorporate instructions that the participants could ask the

researcher to slow down and/or repeat a question at any time

• Since, only a minor instructional adjustment was made as a result of the pilot study, therefore, resubmission to the IRB was not required

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Research AccomplishedInitial Findings

• The research showed me that if the PM training plan was to be implemented successfully, it had to be easy, be implemented relatively quick and be low cost (FAI, 2007; Department of Interior, 2008)

• As expected, participants expressed concerns about future governmental regulation and took a keen interest in identifying key factors for the success of a PM training plan written to help their organizations to prepare for the future– The executives identified the most important components needed to support their

businesses; such as which knowledge areas within the PMBOK are valued the most by them (i.e., scope, schedule, and cost); (PMI TripConst/Kerzner Iron Tri<) the attributes of PMPs whom they might hire, and the overall strategy of success factors and potential barriers to ensure successful implementation

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Presentation of the FindingsPrimary Theme

• One overarching research question guided this study: What contributing factors for a PM training plan will help to sustain small businesses for U.S. A&D markets– The interview responses definitely furthered the knowledge gained

from the literature review– The questions were designed to identify contributing factors for a

successful PM training plan implementation– Costs, was a driving concern-whether from increases in benefit costs

or from the costs of training, Costs can significantly hamper the ability of small businesses to remain solvent (SBA, 2009c).

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Identification of Ten Subthemeslinked to literature reviewed and participant responses

Educational minimums and recommended degrees for PMPs

Knowledge areas of the PMBOK most valued

Top Two of Four most valuable PM lessons to small business executives

PM training helping contract capture

Value of the PMP certification Attributes executives want of a PMP

The value of PM experience to the small business executive

Contributing Factors for successful training plan implementation

Most prevalent barriers preventing a successful training plan implementation

Senior management buy-in, how important is it for success

Each subtheme directly linked to the literature as well as the executives responses. 10 subthemes were derived from the interview responses. Some related directly to the interview questions, and others were derived from the answers to several questions. This crossover was possible because IPA relates meaning to groups and the presentation of the data in a multitude of views that helped group subthemes.

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Application to Professional Practice

• Collection of the lived experiences of the participating executives identified the contributing factors for a successful PM training plan

• Once the study has been published, I expect to modify a PM training plan with the knowledge gained from this study

• The resultant training plan, will be made available to the small businesses within the SE-US A&D market

– The plans optional curricula when tailored to the types, size, and abilities of a small business will drive success.

– The plan WILL IDENTIFY PMI local training resources train the trainer, and other methods that might provide successful PM training.

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Implications for Social Change

• I think that the 2010 report to the president by the SBA makes it clear that:

• By assisting small businesses increase their sustainability job growth and overall economic health maybe positively impacted and improved;

• Ensuring small business sustainability demonstrates social responsibility• Provide lesser expensive options to small businesses for PM training• Assist small businesses within High-Tech sectors from loss of revenue due to

inability to bid future jobs

• Helping small businesses could be good for the employees, the organizations and owners, the even U.S. government agencies imposing the requirement to use certified project managers, most importantly the U.S. economy in general (Davis 2009; GAO-08-1159T: Defense acquisitions: Fundamental, 2008).

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Recommendations Call for action

The intent of this study was to :

• inform small businesses within the A&D market of new government contracting requirements,

• Gather information designed to model a PM training plan,

• Ensure success of the plan by developing factors that contribute to success as well as address barriers to success through curriculum and program options.– I plan to disseminate the findings to small businesses supporting the A&D market of the

southeastern United States through ProQuest publishing and offer the results to the PMI for discussion at the PMI World Congress in 2013

– I also plan to attend the NASA PM Challenge of 2013 (NASA, 2009a, 2012). – The plan when completed will provide a scalable and flexible PM training program that can be tailored to fit the

needs of small businesses within the A&D market.

– I expect I will need 6-months to complete the new revision of the training plan…

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• The PM and Cost Estimation community need to use one clear vernacular for Government proposals– PM training includes multiple reviews of the PMI glossary

of terms to ensure that there is a common framework to build from

– Understanding the DoD 5000.4-M Cost Analysis Guidance and Procedures C3

• Cost Terms, Definitions, and Relationship to Life-Cycle Costs, Work Breakdown Structures, and Appropriations

– Information shown from DAU ACQuipedia-public domain

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Recommendations Call for action

DoD 5000.4-M

22 https://dap.dau.mil/acquipedia/Pages/ArticleDetails.aspx?aid=8e8f5bf3-f517-4e98-8c07-80bb8670a830

Estimate method changes as programs progresses (projects progressively elaborate)

23 https://dap.dau.mil/acquipedia/Pages/ArticleDetails.aspx?aid=8e8f5bf3-f517-4e98-8c07-80bb8670a830

The PMI PMBOK

• Develop scope and requirements

• Develop schedule estimates that are resource based

• Develop budgets from rates multiplied to resources

• Does your estimating method change once in process?– Of course if you use rolling wave planning or just

take the time to update your estimate to complete

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42 Processes within the PMBOK

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Initiating Process

Group

Planning Process Group

Executing Process Group

Monitoring and Control Process Group

Closing Process Group

Project Integration

Management

Develop Project Charter

Dev Preliminary Project Scope Statement

Develop Project Mgmt Plan Direct and Manage Project

Execution

Monitor & Control ProjectWork Integrated Change Control

Close Project

Project Scope Management Scope Planning

Scope Definition

Create WBS

Scope Verification

Scope Control

Project Time Management Activity Definition

Activity Sequencing

Activity Resource Estimating

Activity Duration Estimating

Schedule Development

Schedule Control

Project Cost Mgmt Cost Estimating

Cost Budgeting

Cost Control

Project Quality Mgmt Quality Planning Perform Quality Assurance Perform Quality Control

Project Human Resource Management

Human Resource Planning Acquire Project Team

Develop project Team

Manage Project Team

Project Communication

Management

Communications Planning Information Distribution Performance Reporting

Manage Stakeholders

Project Risk Management Risk Mgmt Planning

Risk Identification

Qualitative Risk Analysis

Quantitative Risk Analysis

Risk Response Planning

Risk Monitoring and Control

Project Procurement Management

Plan Purchases and Acquisitions

Plan Contracting

Request Seller Responses

Select Sellers

Contract Administration Contract Closure

Reproduced from PMBOK 4th Ed.

Education is the key…

• It is my belief that education in project management processes and methods will produce better results for small businesses writing winning proposals that can be more consistent

• Low cost PM training education on skills that develop good risk informed basis of estimates is the key

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Conclusions

• The qualitative interview data collected helped to refine, and clarify, the literature reviewed.– I agree with the SBA -Government should not enact additional barriers that restrict

small businesses, especially within the high-tech sector, because it could have such a negative impact not only on the growth of small businesses but also on recovery of the entire economy (SBA, 2010).

– The results allowed the researcher to identify contributing factors that can help guide a PM training plan to focus specifically on the needs of small businesses.

– The research will help me and will help others manipulate the planned curriculum to support the flexible needs of small businesses

• A small business has differing needs than a Boeing or Lockheed Martin…

• This research, if explored further, will add to the body of knowledge relevant to Project Management scholars and business practitioners.

• If only 1% of the small businesses at risk achieve efficiencies derived from this research, society will gain a significant benefit.

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Invitation for comments

Questions?

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Moved Charts from Oral Defense

• Holding place for charts moved.

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Gathering and Organizing Research Data

• Over 150 invitations were sent out to obtain 20 participants• Telephone interviews of 20 small business executives that

met the selection guidelines were completed using two audio recorders - one digital (researchers laptop using Audacity software), and one analogue (cassette deck) to capture the participant responses.

• Dragon SW did not work-Instituted the backup plan I Manually transcribed participant responses into MS Word -the files were then coded to protect the anonymity of the participants.

• Resultant files used to populate both MS Excel spreadsheets as well as the NVivo software tool where further data coding and mapping took place.

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SKIP for AACEi

Recommendations Further Study

• The researcher recommends further study to ascertain whether the assumptions, limitations, and delimitations applied to this study would hold true for other high-tech markets

• I would also recommend to study other regions within the United States, and nonrelated small business markets, and even nonprofit organizations that may not yet be feeling the effects of government regulatory interference but simply want to improve business practices and gain the efficiencies that PM training may offer (Atamian & VanZante, 2010).

• specific disadvantaged categories could produce additional guidance for a more closely aligned PM training program to the target organizations’ needs.

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Skip for AACEi

Reflections

• Reliance throughout the interview process on technology was a hindrance to a timely conclusion. Short don’t over-rely on technology!– Had the researcher not made backup recordings on an analog voice

recorder, three of the interviews would have been lost or repeated by necessity.

• Although I felt the first study should be Qual-Phen; A mixed methods study performed in the future might provide a more complete final product, and is recommended to augment the knowledge gleaned from this study.

• This study provided the researcher with significant new knowledge that will shape

developing a solid PM training plan.

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References

• Andersen, E. S., Dysvik, A., & Anne, L. V. (2009). Organizational rationality and project management. International Journal of Managing Projects in Business, 2, 479-498. doi: 10.1108/17538370910991106

• Atamian, R., & VanZante, N. R. (2010). Continuing education: A vital ingredient of the 'success plan' for small business. Journal of Business & Economics Research, 8(3), 37-42. Retrieved from http://journals.cluteonline.com

• Bager, T. (2011). The camp model for entrepreneurship teaching. International Entrepreneurship and Management Journal, 7, 279-296. doi: 10.1007/s11365-010-0149-9

• Bales, R. E. (1950). Interaction process analysis: A method for the study of small groups. Reading, MA: Addison-Wesley.

• Burns, J. M. (1978). Leadership. New York, NY: Harper and Row.

• Creswell, J. W. (2009). Research design: Qualitative, quantitative, and mixed methods approaches (3rd ed.). Thousand Oaks, CA: Sage.

• Davis, C. (2009). Federal Acquisitions Institute: Letter of understanding with Project Management Institute. Retrieved from http://www.fai.gov/pdfs/LOU-PMI_ signed081009.pdf

• GAO-08-1159T: Defense acquisitions: Fundamental changes are needed to improve weapon program outcomes. Testimony before the Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security, Committee on Homeland Security and Governmental Affairs, U.S. Senate, 110th Cong. (2008) (testimony of Michael J. Sullivan). Retrieved from http://www.gao.gov/

• Grantham, L. (2008). Adoption of leadership mandated project management standards, methods and training in a global enterprise. Retrieved from ProQuest database. (UMI No. 3302615).

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References

• Haug, A., Soren, G. P., & Arlbjorn, J. S. (2011). It readiness in small and medium-sized enterprises. Industrial Management Data Systems, 111, 490-508. doi:10.1108/02635571111133515

• Mason, M. (2010). Sample size and saturation in PhD studies using qualitative interviews. Forum Qualitative Sozialforschung / Forum: Qualitative Social Research, 11(3). Retrieved from http://nbn-resolving.de/

• National Aeronautics and Space Administration. (2009a). About NASA. doi:10.1117/ 12.86 5764

• National Aeronautics and Space Administration. (2009b). KSC engineering services contract. Retrieved from https://www.fbo.gov/

• National Aeronautics and Space Administration. (2012). NASA project management challenge. Retrieved from http://www.nasa.gov/

• Nichols, T. W. (2008). Authentic transformational leadership and implicit leadership theories (Doctoral dissertation). Retrieved from ProQuest database. (AAT 3352119)

• Project Management Institute. (2008a). A guide to the project management body of knowledge (4th ed.). New Town Square, PA: Author.

• Rhee, S., Cho, N. W., & Bae, H. (2010). Increasing the efficiency of business processes using a theory of constraints. Information Systems Frontiers, 12, 443-455. doi: 10.1007/s10796-008-9145-9

• Senge, P. (2009). The necessary revolution. Leader To Leader: 2009(51), 24-28. doi:10.1002/ltl.314

• Small Business Administration. (2009c). 2009 The small business economy: A report to the president. Retrieved from http://www.sba.gov/sites/default/files/sb_econ 2009.pdf

• Small Business Administration. (2010). 2010 The small business economy: A report to the president. Retrieved from http://www.sba.gov/sites/default/files/sb_econ 2010.pdf

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References

• Suri, H. (2011). Purposeful sampling in qualitative research synthesis. Qualitative Research Journal, 11, 63-75. doi:10.3316/QRJ1102063

• Turner, D. (2010). Qualitative interview design: A practical guide for novice investigators. Qualitative Report, 15(3), 754-760. Retrieved from http://www.nova.edu/ssss/QR

• U.S. Department of Defense. (2010). Department of Defense program goals and statistics. Retrieved from http://www.acq.osd.mil/

• U.S. Federal Acquisition Institute. (2007). Federal Acquisition Institute: Federal working group program and project manager certification recommendations Jan. 17, 2007. Retrieved from http://www.fai.gov/pdfs/FAI%20Working%20Group%20 Report%20FAC-PPM%20certification.pdf

• U.S. Federal Acquisition Institute. (2010). Federal Acquisition Institute: Guide to acquisition-related academic programs and courses Jan. 2010. Retrieved from http://www.fai.gov/pdfs/guide.pdf

• Yallapragada, R., & Bhuiyan, M. (2011). Small business entrepreneurships in the United States. Journal of Applied Business Research, 27(6), 117-122. Retrieved from http://journals.cluteonline.com/

• U.S. Federal Acquisition Institute. (2010). Federal Acquisition Institute: Guide to acquisition-related academic programs and courses Jan. 2010. Retrieved from http://www.fai.gov/pdfs/guide.pdf

• Yallapragada, R., & Bhuiyan, M. (2011). Small business entrepreneurships in the United States. Journal of Applied Business Research, 27(6), 117-122. Retrieved from http://journals.cluteonline.com/

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BACKUP CHARTS

• The following references in Backup References may be called upon during the narration of the Oral Defense.

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BACKUP - References

• Campbell, D. T., & Stanley, J. C. (1963). Experimental and quasi-experimental designs for research. Boston, MA: Houghton Mifflin.

• Crow, A. (2010). The PMP exam: How to pass on your first try (4th ed.). Kennesaw, GA: Velociteach.

• Estrin, J. (2009). Closing the innovation gap, reigniting the spark of creativity in a global economy. New York, NY: McGraw-Hill.

• Gladwin, T. N., Kennelly, J. J., & Krause, T. S. (1995). Shifting paradigms for sustainable development: Implications for management theory and research. Academy of Management Review, 20, 874-874. doi:10.2307/258959

• Kerzner, H. (2010). Project management best practices: Achieving global excellence. Hoboken, NJ: Wiley & Sons.

• Kuruppuarachchi, P. R. (2009), Virtual team concepts in projects: A case study. Project Management Journal, 40(2). 19–33. doi: 10.1002/pmj.20110

• Leavitt, J. C. (2008). USTDC proposal for project management training and certification: ASRC Aerospace-current programs of record. Retrieved from https://ice.asrcfederal.com/

• Moustakas, C. (1994). Phenomenological research methods. Thousand Oaks, CA: Sage.

• National Aeronautics Space Administration. (2009c). Marshal information technology services. Retrieved from https://www.fbo.gov/

• Project Management Institute. (2009). Practice standard for project risk management. New Town Square, PA: Author.

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BACKUP - References

• Sanghera, P. (2007). PgMP: Program management professional exam study guide. Indianapolis, IN: Wiley.

• Small Business Administration. (2009a). Frequently asked questions: Advocacy the voice of small business in government. Retrieved from http://www.sba.gov/advo/stats/ sbfaq.pdf

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