Executing Strategies Through Modern Project Management

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Executing Strategies Through Modern Project Management

  1. 1. Il Project Management a supporto della Pubblica Amministrazione Stato dell'arte a livello internazionale Russell D. Archibald PhD (Hon), MSc, Fellow PMI & APM/IPMA, PMP Project Management e Pubblica Amministrazione Roma, 13-11-2008 Luiss B. S. - Aula Magna Viale Pola, 12
  2. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 2
  3. 3. What You Can Expect:  Verification  70%  Clarification  20%  Revelation!  10% (I hope!) 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 3
  4. 4. 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 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 4
  5. 5. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 5
  6. 6. 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 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 6
  7. 7. Minister Demands To 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 7
  8. 8. Part 1. Strategic Project Management 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 8
  9. 9. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 9
  10. 10. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 10
  11. 11. 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 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 12
  12. 12. 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 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 13
  13. 13. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 14
  14. 14. 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.” 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 15
  15. 15. Strategic Objective 1 Operational Operational Operational Strategy 1.1 Strategy 1.2 Strategy 1.3 Project 1.1.3 Project 1.2.2 Project 1.3.3 Project 1.1.2 Project 1.3.2 Project 1.1.1 Project 1.2.1 Project 1.3.1 Program 1.1 Project Portfolio for Strategic Objective 1
  16. 16. Portfolio vs Multi-Project Mgt. Dye & Pennypacker, PMI 2000 Multi-Project Project Management Portfolio Management Purpose Resource allocation Focus Tactical Planning Short-term Emphasis (day to day) Responsibility Project/ Resource mgrs.
  17. 17. Portfolio vs Multi-Project Mgt. Dye & Pennypacker, PMI 2000 Multi-Project Project Portfolio Management Management Purpose Resource Proj. selection allocation & prioritization Focus Tactical Strategic Planning Short-term Long/medium Emphasis (day to day) term (year/qtr) Responsibility Project/ Executive/ Resource mgrs. senior mgt.
  18. 18. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 19
  19. 19. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 20
  20. 20. 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!) 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 21
  21. 21. 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 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 22
  22. 22. Project Categories Based on End Results 1. Aerospace/Defense 6. Information Systems 2. Business & Organizational 7. International Change Development 3. Communication 8. Media & Systems Entertainment 4. Events 9. Product/Service Development 5. Facilities 10. Research & Dev. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 23
  23. 23. Hierarchical and Multi-Dimensional Category level 1 2 3 4 Major category Sub-category 2 Sub-category 3 Sub-category 4 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 24
  24. 24. Example: Category 5. Facilities Projects 5.1 Facility decommissioning 5.2 Facility demolition 5.3 Facility maintenance & modification 5.4 Facility design/procure/construct 5.4.1 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: ? 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 25
  25. 25. The Operational Project Management Process 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 26
  26. 26. The Operational Project Management Process (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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 27
  27. 27. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 28
  28. 28. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 29
  29. 29. 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 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 30
  30. 30. 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 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 31
  31. 31. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 32
  32. 32. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 33
  33. 33. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 34
  34. 34. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 35
  35. 35. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 36
  36. 36. 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). 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 37
  37. 37. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 38
  38. 38. General Manager Sponsor of Project "A" Manager of Functional Other Project Department Functional Management Manager Departments How Well Project Manager What When Functional of Project "A" Project Leader How Much Project Who Specialist How Staff Work Package Individual Project Planning Leader Contributors and Control Work Package Leader
  39. 39. 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! 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 40
  40. 40. Identifying Project Stakeholders
  41. 41. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 42
  42. 42. Operational PP&C Demands: 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 43
  43. 43. Operational PP&C Demands (Cont’d): 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 44
  44. 44. PM Information & Control System Technical-Product Project Information Risk Information Information and and Control System and Control Control System Modules System Modules Modules Engineering Mgt Project/P BS Planning Assurance Procurement Mgt Planning/ Scheduling (Risk Assessment) Construction- Cost Management Quality Assurance Production Mgt -- Cost Estimating Reliability Test Mgt -- Cost Estimating Support Maintainability Configuration Mgt -- Craft and Crew Safety Assurance -- Unit Material -- Unit Labor hours -- Source Document -- Cost Control -- Cost Projection Cost Projection Accounting Data Entry  On-Line Query
  45. 45. Operational PP&C Demands (Cont’d): 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.) 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 46
  46. 46. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 47
  47. 47. Operational PP&C Demands (Cont’d): 8. The concepts of the P/WBS and project interface management be applied to achieve a sustainable level of detail in PP&C documents. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 48
  48. 48. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 49
  49. 49. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 50
  50. 50. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 51
  51. 51. Operational PP&C Demands (Cont’d): 4. Agency‟s PM process must include procedures to ensure effective teamwork. 5. Leadership training must be provided for the Project Manager. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 52
  52. 52. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 53
  53. 53. 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 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 54
  54. 54. Example of Integrated PM in a Telecommunications Company 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 55
  55. 55. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 56
  56. 56. The Successful Adoption of Web- Based Collaborative Software  Go to http://gulliver.trb.org/news/blurb_detail.asp?i d=5273 for 3 case studies on web-based PM system implementation  Chicago Transit Authority,  The Port Authority of New York and New Jersey,  Raytheon. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 57
  57. 57. PM Improvement Demands: 1. A post-completion appraisal must be performed on every project: - Lessons learned, - Improve PM process, practices and procedures. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 58
  58. 58. PM Improvement Demands: 2. PM discipline & supporting systems must be fully integrated with affected parts of the organization. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 59
  59. 59. PM Improvement Demands: 3. A Web-enabled PM system be selected and implemented at the project portfolio or total enterprise level. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 60
  60. 60. 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. 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 61
  61. 61. 4. Conclusion If the Minister insists that these 33 demands be carried out, and if the managers and staff members comply with these demands, then the organization will join those on the leading edge of excellence in delivering the benefits to their citizens and their countries… 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 62
  62. 62. If the right strategies are being implemented!! 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 63
  63. 63. Thanks for Listening! Questions or Comments? russell_archibald@yahoo.com www.russarchibald.com 13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 64

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