The six phase comprehensive project life cycle model-2013

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This holistic project life cycle includes the Incubation/Feasibility Phase prior to the Project Start Phase, and the Project/Product Evaluation Phase after the Project Close-Out Phase.

This holistic project life cycle includes the Incubation/Feasibility Phase prior to the Project Start Phase, and the Project/Product Evaluation Phase after the Project Close-Out Phase.

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  • 1. The Six-Phase ComprehensiveProject Life Cycle ModelIncluding the ProjectIncubation/Feasibility Phase and thePost-Project Evaluation PhaseRussell D. ArchibaldSUPSI March 20, 2013 1
  • 2. We hope you have or willread our paper• Download this rather long paper athttp://pmworldjournal.net/volume-i-issue-v-december-2012/March 20, 2013 2
  • 3. Origin of this Paper• Russell D. Archibald– Chairman Emeritus, Archibald Associates; PhD(Hon), MSc, PMP, Fellow PMI, Honorary Fellow APM/IPMA• Ivano Di Filippo– In charge of GenialSoftware, Certified PM and Member, IstitutoItaliano di Project Management/ISIPM; in charge of humanresources in the Operations Center of Radiotaxi 3570 Roma, Italy• Daniele Di Filippo– ISIPM member, IT/Engineering Graduate Student at Roma3 UniversityMarch 20, 2013 3
  • 4. My Background• BSME 1948, MSME 1956, PhD (Hon) 2005• 3 careers:– USAF Senior Pilot/Aerospace 15 years– Corporate Executive (Exxon, Bendix, ITT) 15 years– Consultant in project management 35 years, clients in 16countries on 4 continents• Expert witness: Trans-Alaska Pipeline, 5 nuclear power plantprojects• Author, Speaker, Teacher:– 5 books (Italian, Japanese, Chinese, Russian), 12 chaptersin 9 other books, 85 papers at internationalconferences, courses at UCLA, MIT– PM seminar/workshops for thousands of men and womenin many countries
  • 5. The authors acknowledge the positivecomments and criticisms by:• Wayne Abba• Franco Caron• Prof. Gianluca Di Castri• Prof. Dr. Jean-PierreDebourse• Prof. Dr. Harold Kerzner• Prof. Dr. Stanislaw Gasik• David Pells• Dr. Darci Prado• Bob Prieto, and• Prof. Jorge TarazonaMarch 20, 2013 5
  • 6. Presentation Outline1. Introduction• Systems thinking• Scope of “project management”• Importance of models and some examples2. Origins of Projects• Project-driven vs project-dependent organizations• Delivery vs strategic transformational projects• Incubation/feasibility project phase3. Evaluating Projects and Project Results• Post-project evaluation phase• Project success vs project value4. Conclusion and RecommendationMarch 20, 2013 6
  • 7. Part 1. IntroductionSystems thinkingScope of “project management”Importance of models and some examplesMarch 20, 2013 7
  • 8. Systems ThinkingA holistic systems perspective of projectsand programs is required today to achievethe full benefits of systems thinking inproject management.• Senge, Peter M. (1990), The Fifth Discipline,Doubleday/Currency;• Gharajedaghi, Jamshid (1999), Systems Thinking:Managing Chaos and Complexity, Burlington, MA:Butterworth-Heinemann.March 20, 2013 8
  • 9. Two New Project Life CyclePhases are RequiredTo achieve this perspective we need aComprehensive Project Life Cycle definition forapplication on all important projects.This Model recognizes a ProjectIncubation/Feasibility Phase prior to the ProjectStarting Phase, and also a Post-Project EvaluationPhase after the standard Project Close-out Phase.March 20, 2013 9
  • 10. When Does Project ManagementStart and End?Scope of ‘project management’:• Traditional scope includes start-plan-execute-closeout phases, but• Projects begin their existence before the traditional start phase andtheir products continue to exist and must be evaluated after theprojects are closed out.These 2 new phases must be recognizedas belonging within the domain of projectmanagement.March 20, 2013 10
  • 11. Importance of ModelsWe use models in every walk of life:• Physical scale models• Graphic models: drawings, photos, 2 or 3dimensions, animation• Information models:words, numbers, equations, projectplans, computer simulators, contracts• “What is your business model?”“A small replica of the real thing”March 20, 2013 11
  • 12. Predictive Life Cycle ModelsPredictive life cycle models “favor optimization overadaptability” (Desaulniers and Anderson 2002):• Waterfall (also known as traditional): linear ordering of thephases, which can be strictly sequential or overlapping to someextent; no phase is normally repeated.• Prototyping: functional requirements and physical designspecifications are generated simultaneously.• Rapid Application Development (RAD): based on an evolvingprototype that is not thrown away.• Incremental Build: decomposition of a large developmenteffort into a succession of smaller components.March 20, 2013 12
  • 13. March 20, 2013 13Figure 1. Typical current “standard” top levelproject life cycle model.(PMIa 2008, p 16)PMI Standard 4 Phase Project Life Cycle Model
  • 14. March 20, 2013 14Figure 2. A second “standard” project and extendedlife cycle model. (APM 2006 p 80.)APM Extended Life Cycle Model;
  • 15. March 20, 2013 15Figure 3. NASA’s Project Life Cycle Process. Seehttp://spacese.spacegrant.org/uploads/Project%20Life%20Cycle/PPF_WallChart_color.pdffor a very detailed wall chart that expands this simplified version.
  • 16. Adaptive Life Cycle ModelsAdaptive life cycle models “accept and embrace changeduring the development process:”• Adaptive Software Development/ASD: Mission driven, componentbased, iterative cycles, time boxed cycles, risk-driven, and change-tolerant. IBM Rational Unified Process (RUP) (Ref. Appendix B), is a goodexample.• Spiral: Repetition of the same set of life-cycle phases such as plan,develop, build, and evaluate until development is complete.• Extreme Programming/XP: Teams of developers, managers, and users;programming done in pairs; iterative process, collective code ownership.• Agile and SCRUM: Similar to above adaptive life cycle models withiterations called “sprints” that typically last one week to 30 days withdefined functionality to be achieved in each sprint.March 20, 2013 16
  • 17. March 20, 2013 17Figure 4. Overview of a typical Stage-Gate™ project life cycle process fornew product development. Source: Robert G. Cooper et al, Portfolio Managementfor New Products (Cambridge, MA, 2001), p. 272.
  • 18. March 20, 2013 18Figure 5. Spiral software development project life cycle model.Source: http://commons.wikimedia.org/wiki/Category:Spiral_model_of_Boehm?uselang=en
  • 19. March 20, 2013 19Agile Life Cycle Model (Partial)
  • 20. March 20, 2013 20Figure 6. United States DoD 5000Defense Acquisition System Life CycleSource: DoD Defense Acquisition System
  • 21. Proposed Comprehensive ModelMarch 20, 2013 21
  • 22. Project versus Product Life CycleManagement and ModelsStandard project life cycle comes to an end when theproject close-out phase is complete.Product life cycle begins when the product begins to beused, sold or placed in operation, to produce the benefitsthat justified the project in the first place.For consumer products the product life cycle has fivephases: introduction, growth, maturity, decline, andtermination.March 20, 2013 22
  • 23. Other Product Life Cycle ExamplesPetrochemical processing plant: commissioning,operation, decommissioning, and demolitionIT software project: commissioning, operation, anddecommissioning .With agile project management there will often be a longperiod of continuous improvement during the projectexecution phase overlapping with system commissioning.March 20, 2013 23
  • 24. Improved Success in PPPM Dependson Two Desirable GoalsDefinition of the Comprehensive Project LifeCycle Models for both the transformational andthe delivery projects and programs within anenterprise; andThe proper and effective use of InformationTechnology (IT) with Business ProcessManagement (BPM) plus Project, Program andPortfolio Management (PPPM.)March 20, 2013 24
  • 25. Purposes of Project Life Cycle Modelsare to:Enable all persons to understand the processesto be followed throughout the life of the project.Capture and document the best experiences sothat the processes within each project phasecan be improved continually and applied onfuture similar projects.March 20, 2013 25
  • 26. Purposes of Project LC Models (Cont’d)Enable all the project roles and responsibilities and theproject controls methods and tools to be appropriatelyrelated to the overall project life cycle managementprocess;• This includes most importantly assigning qualified persons to theroles of Project Executive Sponsor and Project Manager at the properpoints in the project life cycle.Enable the effective application of projectmanagement software application packages that areintegrated with all appropriate corporate informationsystems.March 20, 2013 26
  • 27. Application of Systems ThinkingWell-documented project life cycle modelsenable us to apply systems thinking tocreating, planning, scheduling, andmanaging the project through all of itsphases, and to evaluating the success andthe value of both the project and theresults that the project has produced.March 20, 2013 27
  • 28. Bob Prieto says:“Often a barrier to effective lifecycle managementis a split responsibility within an owner’sorganization for CAPEX [capital expenditures],OPEX [operations expenditures], and sales.Another barrier to lifecycle management systemsis often corporate accounting systems which donot provide a total cost of ownership picture thatincludes initial studies, CAPEX, OPEX, cost of salesand financing costs.”March 20, 2013 28
  • 29. Franco Caron says:“I think that an extended view of the project life cycle isnecessary. … Since I deal with large engineering projects, inany case projects with an external client, at the outset of theproject I introduce the distinction between proposal phase(something like project incubation) and project phase(articulated in the classical stages) separated by the contractsignature. During the proposal phase the projectconfiguration is fluid and during project execution is fixed byproject constraints. From the point of view of incubationphase, a distinction between internal and external projects isnecessary.”March 20, 2013 29
  • 30. Gianluca Di Castri says:“In my opinion, all matters relevant to projectmanagement and controls will be extended inthe next years in two different directions:horizontally including on one side the strategicphase and on the other side the complete lifecycle of the project, until its dismissal orrevamping, as well as vertically, to include multi-project, programme and, in some cases,portfolio management….”March 20, 2013 30
  • 31. Jorge Tarazona says:“I think that your work is a veryimportant contribution to the holisticand systems thinking approachapplied to Project Management. Itotally agree that it is very importantto develop detailed life cycle modelsfor each specific project category.”March 20, 2013 31
  • 32. Part 2. Origins of ProjectsProject-driven vs project-dependentorganizationsDelivery vs strategic transformationalprojectsIncubation/feasibility project phaseMarch 20, 2013 32
  • 33. Project-Driven andProject-Dependent OrganizationsIt is important torecognize thedifferences betweenthese two types ofenterprisesThey usually exhibitwidely different levelsof maturity in theirproject managementcapabilities33
  • 34. How they Differ• Rely on projects for normal revenue.• Are usually mature in the management oftheir "delivery" projects.• May be less mature in management oftransformative programs and projects.Project-DrivenOrganizations:• Derive most of their revenues from sellingproducts or services.• Rely on innovative projects for expansion:new/improved products or processes.• Often employ Project-Drivenorganizations for specific needs.Project-DependentOrganizations:34
  • 35. Two Kinds of ProjectsDelivery (Commercial) Projects produce ordeliver benefits within the growth strategiesof the enterprise.Strategic Transformational Projects producesignificant changes in the enterprise, itsproducts, or its business processes.March 20, 2013 35
  • 36. Two Kinds of ProgramsTraditionalProgramsconsist of agroup of relatedprojects, whileStrategic orTransformationProgramsusually includeboth projectsand on-goingoperations.36
  • 37. A Practical Set of 12Project Categories:1. Administrative andOrganizational Change2. Aerospace/Defense3. Communication Systems4. Events5. Facilities5.1 Facility decommissioning5.2 Facility demolition5.3 Facility maintenance andmodification5.4 Facility Design-procurement-constructionSome separate facilities design andconstruction into two separatecategories, but these must be closelyintegrated on one facility.6. Information Systems/IT7. International Development8. Media & Entertainment9. Product and ServiceDevelopment9.1 Industrial product9.2 Consumer product9.3 Pharmaceutical product9.4 Service (financial, other)10. Research and Development10.1 Environmental10.2 Industrial10.3 Economic development10.4 Medical10.5 Scientific11. Healthcare12. Other Projects – DisasterRecovery, others….37
  • 38. Definition of the ProjectIncubation/Feasibility PhaseThe phase prior to initiation of the ProjectStarting Phase, during which the necessaryinformation and “embryonic knowledge andunderstanding” of the potential project iscollected, compiled, buffered, and analyzedsufficiently to enable a well-informeddecision to proceed with initiation of theProject Starting Phase.March 20, 2013 38
  • 39. Kerzner: the Need for the ProjectIncubation/Feasibility Phase“Perhaps the most challengingproblem facing executives today isthe determination of how muchadditional work they can take onwithout over-burdening theexisting labor force. We refer tothis as capacity planning.March 20, 2013 39
  • 40. Kerzner (Cont’d)“Another important characteristic of the IncubationPhase is the determination of the availability of aqualified project manager for the project at hand.Regardless of the PMs years of experience andexposure to educational opportunities, not allproject managers are equal in project managementcapability. The size, nature and complexity of theproject should be used as a first look at thequalifications needed to manage such a project.This first look must also appear in the IncubationPhase.”March 20, 2013 40
  • 41. When Does a Project Truly Start?“Project Starting Phase” must begin with a reasonableunderstanding of what the principal objectives, scope,schedule, and cost of the project are expected to be,including:• What the project will create;• What benefits will be produced ;• Verification that the project is aligned with the strategic plans ;• A reasonable idea of the overall scope and expected time scheduleand cost, and whether the needed money and other key resourceswill be available;• Preliminary or conditional approvals and rights;• Overall economic, technological, political, social, and physicalfeasibility under identified risks.March 20, 2013 41
  • 42. Basic Question“Where does this initial ‘embryonicknowledge and understanding’ about thepotential project come from?Answer: The work and analysis performedand buffered during the Project Incubation/Feasibility Phase of its life cycle model.March 20, 2013 42
  • 43. Origins of Projects• Delivery projects and• Strategicallytransformative projectsProjects areconceivedand borndifferently for• Project-driven and• Project-dependentorganizationsWithinMarch 20, 2013 43
  • 44. Should Project Management Practicesbe Used Prior to the Project Start-upPhase? Peter Morris says:“Two conclusions stand out from these twostudies. One, that following the PMBOK Guide®elements may be sufficient to deliver projectsproperly in process and practice terms butprobably is not enough to ensure that the projectis successful. Two, that to do the latter one needsto concentrate more on the managing the front-end.”March 20, 2013 44
  • 45. Peter Morris Continues:“The reality, as shown by theresults of two separate surveys, isthat the overwhelming majority ofpractitioners polled believe thatproject management does applyin the pre-execution stages.March 20, 2013 45
  • 46. Peter Morris (Cont’d)“We need to be voicing a view of thediscipline which provides a holisticapproach to managing projects, andprograms, from their earliest stages totheir last in order to deliver businessbenefit. I call this ‘the management ofprojects’.”March 20, 2013 46
  • 47. Unfulfilled RolesThe Project Executive Sponsorand Project Manager roles existduring the Project Incubation/Feasibility Phase but often arenot formally assigned.March 20, 2013 47
  • 48. Front End Loading (FEL)• Front End Loading (FEL) Phase inDesign/Procurement/ Construction Projectsrecognizes the importance of the ProjectIncubation/Feasibility Phase• Independent Project Analysis (IPA) group (Norway):“FEL is the process by which a company (and projectteam) translates its marketing and technologicalopportunities into capital projects…. during the FELphase, the questions ofWhy, What, When, How, Where and Who areanswered.• http://www.concept.ntnu.no/symposium/index.htm.”March 20, 2013 48
  • 49. Corporate Strategy and theIncubation/Feasibility PhasePrior to any important projectbeginning to take shape in the ProjectIncubation/Feasibility Phase, itsgenesis comes from the strategicdecisions that have been made by thestrategy managers of the organization.March 20, 2013 49
  • 50. Project OriginsProject Type >Organization TypeCommercial orDelivery ProjectsDevelopment orTransformationalProjectsProject-DrivenOrganizations> Requests for proposals/RFPs> Project proposals that comply withwell-established strategic goals and arewithin the known capabilities> Project Starting Phase is not initiateduntil a contract is signed by both parties.Statements belowapply.Project-DependentOrganizationsFew if any commercial/ deliveryprojects exist in theseorganizations. If so the abovecomments apply.> Ideas come from strategicmanagers, marketing/businessdevelopment, R&D, pastcustomers, consultants.> When the ‘embryonicunderstanding’ of the potentialproject has been approved theproject enters the ProjectStarting Phase.March 20, 2013 50
  • 51. Part 3. Evaluating Projectsand Project ResultsPost-Project EvaluationPhaseProject Success vs ProjectValueMarch 20, 2013 51
  • 52. Post-Project Evaluation PhaseDefinitionThe Post-Project Evaluation Phase isdevoted to the effort needed to firstdetermining and then maintaining,improving, and even perfecting theultimate success of the project in thefollowing four dimensions:March 20, 2013 52
  • 53. Four Dimensions for EvaluatingProject Success1. The project from a project managementviewpoint2. The project’s products and results3. All project stakeholders’ perspectives of boththe project and its results4. The overall project and its products from the projectteam cognitive performance perspective.March 20, 2013 53
  • 54. 1. Project Management Dimension:How closely did the project achieve theoriginal objectives as defined in theProject Charter or Project Business Case?Did the project meet the specifiedproduct specifications, budget, schedule,scope?March 20, 2013 54
  • 55. 2. Product DimensionHow well does the product meet the Project Charter?How well does the product achieve its Key PerformanceIndicators/KPIs?What are the established Critical Success Factors (CSF) andhow well does the product measure up against these?Does the market like, buy and use the product?March 20, 2013 55
  • 56. 3. Stakeholder SatisfactionDimension:What level of satisfaction or dis-satisfaction(accomplishment, enjoyment, pleasure, anger, conflict,frustration) exists in each of the project stakeholders?These can be either positive or negative stakeholders.March 20, 2013 56
  • 57. Project Stakeholders IncludeThe project managerProject core team membersInternal project executive sponsorsFunctional contributors to the project andto its productOwners of the final product of the projectMarch 20, 2013 57
  • 58. Project Stakeholders (Cont’d)Investors in the project and its productsUsers and operators of the final productAffected regulatory agenciesCommunities (local, regional, and virtual) that areaffected by the project and its products:March 20, 2013 58
  • 59. Success with StakeholdersKeepSatisfiedManageCloselyMonitor –MinimumEffortKeepInformed59Low Interest in Project HighHighDegree ofAuthorityOverProjectLow
  • 60. Gasik says:• “I would add success as seen by stakeholdersother than the project owner (after all theowner is the most important stakeholder). Butwe must have in mind that there are negativestakeholders for whom “project success” willbe project failure. So success from thestakeholder perspective is success for positivestakeholders and converting as many negativestakeholders as possible to a positiveattitude.”March 20, 2013 60
  • 61. 4. The Project Team CognitivePerformance Perspective.Cognitive enables and constraints exist in all teamsSome examples of Cognitive Constraints:• The Student Syndrome• Parkinsons Law• Overloading Stress• Multi-tasking Stress• Burnout Syndrome• Internal conflicts that can lead to crises• Drastic commitment reduction• “Competence Borderline Syndrome” (I’m going to do just what I have todo, no more!)March 20, 2013 61
  • 62. Project Success is not Project ValueSydney Opera HouseBarcelona Sagrada FamiliaDefense systemsProject for a major new clientMajor stakeholder’s perceptionMarch 20, 2013 62
  • 63. Project Close-out Phase versus thePost-Project Completion PhaseClose-out Phase: ”… finalize all activities acrossall Process Management Groups to formallycomplete the project, phase, or contractualobligations.” (PMI PMBOK 2008, p.65.)Close-out Phase does not include theProduct, Stakeholder, or Cognitive dimensionsMarch 20, 2013 63
  • 64. Timing and Duration of the Post-Project Evaluation PhaseProject management dimension can be completedsoon after Project Close-out PhaseOther dimensions will take longerTime is required to obtain operational or marketingexperience to evaluation the products of the projectMarch 20, 2013 64
  • 65. Who does the Post-Project EvaluationPhase Benefit?Most benefit is to the Project OwnerMeasures the wisdom of initiating, creating, and authorizingthe investment in the project and its products in the firstplace, and also how well the project was actually conductedand how well the final results achieved the initial projectand product objectives.March 20, 2013 65
  • 66. Part 5. Conclusion andRecommendation1. The addition of the Project IncubationPhase and the Post-Project EvaluationPhase to the standard top-level projectlife cycle model produces a truly realisticand comprehensive project life cyclemodel that recognizes the importanceof each of these phases.March 20, 2013 66
  • 67. This Recognizes Actual MaturityThese phases are not actually new in verymature project management practice. Byidentifying and defining them we simplyrecognize the good strategic projectmanagement practices that are being usedtoday in organizations that are fully maturein the project management discipline.March 20, 2013 67
  • 68. Recommendation• We recommend that the ComprehensiveProject Life Cycle Model described in thispaper be taken into consideration foradoption by all professional associationsinvolved in project management as an agreedstandard.March 20, 2013 68
  • 69. A Final Request• Please provide us with– Your comments on and criticisms of the proposedModel and– The names of and contact information for personswho are active in developing PM standards inassociations in which you are active.• We will in turn consider your inputs in ourfinal revision and at the proper time submitthe paper to all of those persons.March 20, 2013 69
  • 70. • Thank you for your time and attention• Our email addresses are:– Russell_archibald@yahoo.com– ivano.difilippo@genialsoftware.it– Daniele.difilippo@live.com• Communicate with Ivano or Daniele inItalian or EnglishMarch 20, 2013 70