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Page 1 Project Management and Organization Success:

  1. 1. Project Management and Organization Success: An executive briefing to Princeton management Michael Knapp July, 2002
  2. 2. this Presentation is intended to: Look at the ‘state of play’ & directions in project & program management Look at the value to Princeton of modern program and project management Discuss the roles and responsibilities of senior management in managing successful programs & projects
  3. 3. <ul><li>Project Management: its current status </li></ul><ul><li>Why Projects Fail </li></ul><ul><li>What’s the ROI? </li></ul><ul><li>Project Management: the new perspective </li></ul>Topics Directions in Project & Program Management Section A
  4. 4. Project Management – a practical definition <ul><li>Project Management covers those set of practices designed to: </li></ul><ul><ul><li>Deliver specific objectives </li></ul></ul><ul><ul><li>Realize clear & measurable benefits </li></ul></ul><ul><ul><li>Within a discrete time frame </li></ul></ul><ul><ul><li>Manage a budget & resources </li></ul></ul><ul><li>Most importantly, projects deliver change and increase value to the organisation, its members and constituency. </li></ul>Section A: Directions in modern project management
  5. 5. A clash of cultures? One reason why Universities often struggle with projects and project management is: “ If a little change is OK, no change is better.” In other words, being efficient at managing change is not necessarily a high priority for a lot of Universities. Section A: Directions in modern project management
  6. 6. What is Project Success? Objectives Time Cost The 'Golden Triangle' of Project Success Project success occurs when we have: Note that project success is more than just finishing the project <ul><li>A delighted client (expectations met) </li></ul><ul><li>Delivered the agreed objectives </li></ul><ul><li>Realised the expected benefits </li></ul><ul><li>Met time and budget expectations </li></ul>Section A: Directions in modern project management
  7. 7. Where project management currently sits <ul><li>Conclusions: </li></ul><ul><li>Project management is seen as being critically important to organization success. </li></ul><ul><li>The relevance of project management is increasing. </li></ul><ul><li>BUT </li></ul><ul><li>Organizations are not prepared to leverage its real value. </li></ul>* PA Consulting report: 1997 - 2002 Section A: Directions in modern project management Where is Project Management heading? 0% 10% 20% 30% 40% 50% 60% 70% PM is a core competency PM is critical to company success PM delivers results in our organization People understand how PM works We have the right project skills 2002 1997
  8. 8. How projects actually perform Section A: Directions in modern project management
  9. 9. Principal causes of project failure Section A: Directions in modern project management <ul><li>Senior management show less than optimal commitment </li></ul><ul><li>Accountabilities are not met </li></ul><ul><li>Poor alignment with Strategies & Priorities </li></ul><ul><li>Benefits not defined or not realizable </li></ul><ul><li>Estimates are wrong. Full life cycle costs were never understood </li></ul><ul><li>Scope is not set or controlled </li></ul><ul><li>Insufficient / inappropriate resources </li></ul><ul><li>The wrong strategy. Time frames too ambitious or too long </li></ul><ul><li>Inappropriate technology </li></ul>
  10. 10. Projects have too often focused on delivering benefits at the operational level Academic Unit 1 CEO Administration HR Student Finance Academic Unit n IT External Affairs Business Units Service Units Strategic Operational Traditional Focus of Projects IT Section A: Directions in modern project management IT has been the traditional focus of projects & project management within a HE organisation
  11. 11. A new focus on ROI Strategic Benefits <ul><li>Positioning the institution </li></ul><ul><li>Technology enabling change </li></ul><ul><li>Strategic alliances and Joint Ventures </li></ul><ul><li>Better financial & administrative performance </li></ul><ul><li>Improving services to our various stakeholders </li></ul>Business & Academic Unit / Tactical Benefits Operational Benefits Why invest in projects? It’s more than just better technology & saving fte! Section A: Directions in modern project management <ul><li>Increased research opportunities </li></ul><ul><li>Improved communication & collaboration </li></ul><ul><li>Improved services to the student </li></ul><ul><li>New opportunities in Teaching & Learning </li></ul><ul><li>New business opportunities </li></ul><ul><li>Raising the academic profile </li></ul><ul><li>‘ Ubiquitous connectivity’ enhances academic independence </li></ul><ul><li>Improved business process efficiency </li></ul><ul><li>Greater process automation </li></ul><ul><li>Eliminating waste, duplication & re-work </li></ul><ul><li>Improving services to users & end-users </li></ul><ul><li>Re-allocating resources to more productive tasks </li></ul>
  12. 12. Types of Projects Business / Organisation change <ul><li>Re-structuring the organisation </li></ul><ul><li>Implementing new methodologies </li></ul><ul><li>New business & academic initiatives </li></ul>Technology <ul><li>Infrastructure </li></ul><ul><li>Systems Integration </li></ul><ul><li>Communications </li></ul><ul><li>T&L technologies </li></ul><ul><li>Web-based services </li></ul>Process improvement <ul><li>Business Process Re-engineering </li></ul><ul><li>Management Improvement </li></ul>Academic Projects <ul><li>New / updated Learning Programs </li></ul><ul><li>Implementing Learning Technologies </li></ul><ul><li>Research Projects </li></ul><ul><li>Academic ventures </li></ul>Marketing & Promotion <ul><li>Marketing & promotion campaigns </li></ul><ul><li>Market & industry research </li></ul>Business Venture There are more than just IT projects <ul><li>Joint ventures </li></ul><ul><li>In-sourcing </li></ul><ul><li>Business Development </li></ul>Section A: Directions in modern project management
  13. 13. Projects are, firstly, Business Projects ‘ End-to-end’ Project IT Project* Business Process Re-engineering Project* Implementation Project* * - examples only The ‘End-to-end project’ is designed to deliver business benefits The project is made up of component projects which are aligned with broad areas of responsibility Overall accountability resides at a single point The Project Sponsor is whoever will receive the greatest benefits    Most organizational projects are business projects with a significant technology component.  Section A: Directions in modern project management
  14. 14. 1. Supportive & knowledgeable management 2. Good Project Management Practices 3. Good Project Methods 4. Skilled Project Managers <ul><li>They have achieved appropriate competency </li></ul><ul><li>Know what they’re doing & keep focused </li></ul><ul><li>Recognised as professionals </li></ul><ul><li>Commit to their accountabilities </li></ul><ul><li>Appropriate resourcing & funding </li></ul><ul><li>Issues resolution - decision making </li></ul><ul><li>Know & understand ‘Project Dynamics’ </li></ul><ul><li>Stakeholder management </li></ul><ul><li>Risk management </li></ul><ul><li>Quality Management </li></ul><ul><li>Planning (especially estimating & scheduling) </li></ul><ul><li>Scope creep kept under control </li></ul><ul><li>Best Practice ‘know-how’ </li></ul>What Delivers Success Section A: Directions in modern project management
  15. 15. Organization Maturity Individuals’ Competencies Effective Projects The combination of the ‘culture’ and practices of the organization along with the sum competencies of the individuals in a project governance position (not just the project manager) deliver effective projects. Delivering more successful projects requires a happy marriage of the right organization maturity and the right level of individuals’ competencies. How we deliver more effective projects Section A: Directions in modern project management
  16. 16. seat of the pants <ul><li>Projects just ‘happen’ </li></ul><ul><li>Poor project initiation </li></ul><ul><li>Inadequate buy-in </li></ul><ul><li>Poor communication </li></ul><ul><li>Inter-dependencies not managed </li></ul><ul><li>Insufficient planning </li></ul><ul><li>Unknown benefits </li></ul><ul><li>Poor standards (if any) </li></ul><ul><li>Success rate less than 40% </li></ul>aware competent best practice <ul><li>Projects formally initiated </li></ul><ul><li>Plans endorsed </li></ul><ul><li>Varying standards with few disciplines </li></ul><ul><li>Methodologies introduced </li></ul><ul><li>Stakeholders managed </li></ul><ul><li>Projects become business-driven </li></ul><ul><li>Success rate less than 60% </li></ul><ul><li>Methodology & standards well established & supported </li></ul><ul><li>Stakeholders understand & accept accountabilities </li></ul><ul><li>Discrete measures support good management </li></ul><ul><li>End-to-end projects set up & managed as such </li></ul><ul><li>Risks clearly defined & controlled </li></ul><ul><li>Project Management accepted as profession </li></ul><ul><li>Success rate less than 75% </li></ul><ul><li>Improvement programs formal </li></ul><ul><li>Good measurement enables optimization </li></ul><ul><li>High risk projects successfully managed </li></ul><ul><li>Respect & support of projects </li></ul><ul><li>Success rate better than 75% </li></ul>This model is meant to give a very quick ‘snap-shot’ of an organization’s maturity in regards to its ability to effectively manage projects. The model relies on a fairly subjective assessment of a number of indicators which point to the overall maturity of the organization. Section A: Directions in modern project management Organisation maturity in managing projects
  17. 17. Section A: Directions in modern project management Competency-based management Generic Management Socio-cultural Specialist Project Management <ul><li>Empathy </li></ul><ul><li>Cultural awareness </li></ul><ul><li>Respect and equity </li></ul><ul><li>Awareness of the environment </li></ul><ul><li>Social fairness </li></ul><ul><li>Financial management </li></ul><ul><li>Resource management </li></ul><ul><li>HR management </li></ul><ul><li>Business Planning </li></ul><ul><li>Operational management </li></ul><ul><li>Scope management </li></ul><ul><li>Stakeholder management </li></ul><ul><li>Risk management </li></ul><ul><li>Communication management </li></ul><ul><li>Time management </li></ul><ul><li>Quality management </li></ul><ul><li>Vendor & contract management </li></ul><ul><li>Specialist resource & HR management </li></ul>All those in a Project Governance position are both aware of the responsibilities of their position, and confident they have the necessary competencies to meet those responsibilities.
  18. 18. Project Dynamics Scope & Size Resources Risk Technology Time Constraints Management Practice Quality Budget Project Impact Project Dynamics describe the way various factors inter-relate in influencing project outcomes. Predicting project outcomes is complex and is often counter-intuitive Section A: Directions in modern project management
  19. 19. Dynamics and Paradoxes 1. Projects do not perform as if they have a brake and accelerator. 2. Adding resources to a project can slow it down. 3. Taking resources away from a project can speed it up. 4. The more we measure where change comes from, the less change we will measure. 5. Putting a project ‘on hold’ is like being told to ‘breathe less’. 6. Good practice is ‘scaleable down’ but bad practice is not ‘scaleable up’. 7. Projects which include contingency take a shorter time than projects without contingency. 8. High risk projects are often more beneficial than no-risk projects. Section A: Directions in modern project management
  20. 20. Project Life Cycle Start the Project Execute the Project Complete the Project <ul><li>In its simplest representation, a project has 3 phases it passes through: </li></ul><ul><ul><li>It has a start </li></ul></ul><ul><ul><li>It has a middle (where a lot of work is done!) </li></ul></ul><ul><ul><li>It has a finish </li></ul></ul><ul><li>The application of the project life cycle to a particular project is called the Project Methodology </li></ul>Section A: Directions in modern project management
  21. 21. x = Actual cost / time 1.5x 0.5 x 0.8 x 1.3x 1.2x Over-estimating Under-estimating 0.25 x 0.7 x Project Definition or Business Case NOT > +/- 50% NOT > +/- 30% Project Initiation <ul><li>A key objective for all project managers and senior management is to increase the accuracy of estimates as early as possible in the project cycle </li></ul><ul><li>All estimates should reflect a level of confidence </li></ul>Section A: Directions in modern project management Estimating Accuracy across the Project Life Cycle
  22. 22. “ If the old middle managers are dinosaurs, a new class of managerial mammal is evolving to fill the niche they once ruled: project managers” Project Management – a new perspective Section A: Directions in modern project management <ul><li>The profile of Project Management is being elevated within organizations as it is increasingly seen as fundamental to organization success </li></ul><ul><li>Emergence of Strategic Project Management </li></ul><ul><li>Emergence of the Project-based Organisation </li></ul><ul><li>Seen as delivering a partnership between administration, business, academic groups, technology & vendors </li></ul><ul><li>It’s being seen as a profession, with defined career paths and competency-based accreditation </li></ul><ul><li>The ‘dark science’ aspects are being replaced with practices based on performance & measurement </li></ul>
  23. 23. Project Management – 2 fundamental questions Section A: Directions in modern project management <ul><li>There are 2 fundamental questions which need to be answered regarding organizational projects: </li></ul><ul><ul><li>Are we running the right projects, with the right priorities for the right investment (people & $’s)? </li></ul></ul><ul><ul><li>and </li></ul></ul><ul><ul><li>As an organization, do we have the maturity and competency to run successful projects? </li></ul></ul>
  24. 24. The answers lie in understanding the new model <ul><li>Strategic benefits were not targeted </li></ul><ul><li>Projects run in a stand-alone manner </li></ul><ul><li>Solutions were seen as technology solutions </li></ul><ul><li>The business case not fully understood </li></ul><ul><li>Management practice immature </li></ul><ul><li>Senior management were not involved enough </li></ul>‘ Old’ Model <ul><li>Projects deliver the Strategic, Academic & Business Plans </li></ul><ul><li>Projects grouped under Programs </li></ul><ul><li>All projects are, firstly, business projects </li></ul><ul><li>The ROI is well understood AND realizable </li></ul><ul><li>Project Management is competent </li></ul><ul><li>Senior management involved and committed </li></ul>‘ New’ Model Section A: Directions in modern project management
  25. 25. <ul><li>Strategic Project Management </li></ul><ul><li>Portfolio & Program Management </li></ul><ul><li>Business-driven project management </li></ul><ul><li>The value for Princeton </li></ul>Topics The value of program & project management Section B
  26. 26. Program A Project A1 Project An Program X Project X1 Project Xn Portfolio of Programs and Projects The Project Portfolio <ul><li>The current approach is to group projects into programs, and define all of these in the organization's Project Portfolio </li></ul><ul><li>The aggregation of the projects into programs is known as the Project Portfolio </li></ul><ul><li>One way to view the Project Portfolio: it’s how we will deliver the Strategic Plan and component Academic, Research and Business Unit Plans </li></ul>Section B: The value of program & project management
  27. 27. Strategic Project Management Strategic Project Management is a set of processes which ties the Project Portfolio directly to the Strategic and Business Plans: <ul><li>The Portfolio is the prioritized list of Programs and Projects </li></ul><ul><li>The Portfolio is built each year BUT the cycle is repeated each quarter </li></ul><ul><li>The continual evaluation of project performance and success against the Business Plans ensures goals & targets are being met </li></ul><ul><li>The process supports the rigorous monitoring of claimed benefits and ROI as the projects are being run – NOT after projects have finished </li></ul>Section B: The value of program & project management
  28. 28. Strategic Plan Academic Strategic Plan Strategic Goal 1 Goal 2 Research Strategic Plan Goal 3 Goal n Programs relate to the Strategic Plans IT Strategic Plan Administration Strategic Plan Program A Program B Program B Program N Owner X X X X X X X Owner Owner Owner X Programs relate Business Plans to the Strategic Plan X Section B: The value of program & project management
  29. 29. Portfolio Program A Academic Units HR Project 1 Project 2 IT Project 3 Finance Benefits / Commitments Benefits / Commitments Benefits / Commitments Benefits / Commitments Benefits / Commitments Benefits / Commitments Benefits / Commitments Benefits / Commitments Benefits / Commitments Benefits / Commitments Benefits / Commitments Benefits / Commitments Programs & projects are functional in nature Section B: The value of program & project management
  30. 30. Projects are grouped into Programs <ul><li>Some reasons why structuring projects into programs makes sense. </li></ul><ul><li>Projects relate to same / similar business objectives. </li></ul><ul><li>They may share scope. </li></ul><ul><li>They often impact the same part of the business in the same time-frame. </li></ul><ul><li>They probably share resources. </li></ul><ul><li>They may well be dependent of the same technology. </li></ul>Section B: The value of program & project management
  31. 31. The value of program & project management <ul><li>By relating programs to business & academic plans, their realization is controlled and more assured. </li></ul><ul><li>There is greater coordination across all the initiatives and projects running across the organization. </li></ul><ul><ul><li>(‘the right hand DOES know what the left hand is doing’) </li></ul></ul><ul><li>There is more effective use of scarce and valuable resources. </li></ul><ul><li>Greater coordination leads to less waste, shorter time frames and lower costs. </li></ul><ul><li>Decision-making becomes clearer and more effective. </li></ul><ul><li>Your people achieve greater satisfaction and less frustration. </li></ul><ul><li>Project success is enhanced and benefits realized. </li></ul>Section B: The value of program & project management
  32. 32. <ul><li>1. Key management roles </li></ul><ul><li>2. Principal accountabilities </li></ul><ul><li>3. Accountabilities across the Life Cycle: </li></ul><ul><ul><li>Project Start-up </li></ul></ul><ul><ul><li>Project Execution </li></ul></ul><ul><ul><li>Project Completion </li></ul></ul>Topics Section C The roles and responsibilities of senior management in project success
  33. 33. Key Management Roles Section C: The roles & responsibilities of senior management in project success The main Senior Management roles in Program & Project Management are: Program Sponsor Project Sponsor Steering Committee Member Take ownership for the delivery of strategic goals Chairs the Program Board. Has overall accountability for ensuring the benefits of the Program are delivered ‘ Owns’ the project. Funds the project. Chairs the SC. Sets direction and maintains the vision. All projects need to be owned. Whoever has most to gain (& lose) is often the sponsor. SC members are ‘key stakeholders’ and assist the Sponsor in decision-making and endorsing management deliverables. Key stakeholders are those who, by definition, will cause project failure if they withdraw support. Role Description Comments
  34. 34. In influencing project success and benefits realization, there is probably no more important role than that of the Sponsor How important is the Project Sponsor? It is the Sponsor who sets the vision, defines the goals and objectives, approves and owns the scope and makes all the ‘big calls’. Section C: The roles & responsibilities of senior management in project success
  35. 35. Principal Accountabilities of the Sponsor Section C: The roles & responsibilities of senior management in project success <ul><li>Commit adequate funding against a business case. </li></ul><ul><li>Ensure project accountabilities defined and agreed. Buy-in has occurred. </li></ul><ul><li>Ensure appropriate Project Governance is set up. </li></ul><ul><li>Priorities delivery options. </li></ul><ul><li>Ensure the right business / academic resources are allocated. </li></ul><ul><li>Approve Scope and changes to Scope. </li></ul><ul><li>Approve all project plans and budgets. </li></ul><ul><li>Ensure critical issues and conflicts are effectively resolved. </li></ul><ul><li>Ensure good management is carried out. Drive this practice ‘top-down’. </li></ul><ul><li>Make sure that projects are tracked using ‘hard data’ - the Performance Indicators. </li></ul><ul><li>Initiate Project Reviews to identify any major issues & improvements. </li></ul>
  36. 36. <ul><li>1. Make sure that scope is clearly and unambiguously defined. </li></ul><ul><li>2. Ensure accountabilities (R&R) are defined and agreed. </li></ul><ul><li>Agree to Project Governance (including make-up of the Steering Committee). </li></ul><ul><li>Define the Business Case: a valid & realizable ROI. </li></ul><ul><li>Make sure the business has the capability and resources to run the project successfully – especially key personnel are available. </li></ul><ul><li>5. Ensure the Project Plan (esp. cost and time estimates) are valid. </li></ul><ul><li>6. Review the Risk Plan and contingencies. </li></ul>Accountabilities of the Sponsor at Project Start-up Section C: The roles & responsibilities of senior management in project success
  37. 37. Governance Models Section C: The roles & responsibilities of senior management in project success Project Governance Program Governance
  38. 38. Accountabilities of the Sponsor during Project Execution Section C: The roles & responsibilities of senior management in project success <ul><li>Attend Steering Committee meetings! </li></ul><ul><li>Have a 1-on-1 with the Project Manager to review status and resolve issues. </li></ul><ul><li>Ensure changes to scope are kept to a minimum and are ALWAYS agreed to. </li></ul><ul><li>Ensure that resourcing commitments are being met. </li></ul><ul><li>Ensure budget, time frames and objectives will all be met; if not, then ensure corrective action is taken. </li></ul><ul><li>Monitor the claimed benefits to ensure they remain valid. </li></ul>
  39. 39. Accountabilities of the Sponsor at Project Completion Section C: The roles & responsibilities of senior management in project success <ul><li>At the end of the project: </li></ul><ul><li>1. Ensure Benefits Realization is carried out. </li></ul><ul><li>Sponsor a ‘Post Implementation Review’. </li></ul><ul><li>Oversee the hand-over from the project to the business / academic units. </li></ul><ul><li>Ensure improvements are made to management practice. </li></ul><ul><li>Share your experiences & knowledge with peers. </li></ul>
  40. 40. at the end of the day... Managing successful projects is an issue for the whole of Princeton. The ability for continued growth, meeting aggressive time frames and achieving academic, research & business objectives will all be boosted by the application of good project management practice. Princeton has the opportunity to further its reputation as being a truly excellent organization.

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