Project Management The State of the Art

Project management the state of the art Futurex 2007 - The Conference: ICT: Foundations of the Economy Elmar Roberg 082 651-5138 [email_address]

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The people

The organisation

The art

A little history

First project management body

Internet

1965

IPMA

PMI

1969

230,000 members

Major standards generating body

CAPM, PMP (200,000 certifications)

To come: PgMP, PfMP

PRINCE2™

UK OGC / APM

80,000 certifications

Others

GAPPS, AIPM, JPMA, etc. etc

The state of the art A striking proportion of project difficulties stem from people in both customer and supplier organisations failing to implement known best practice. This can be ascribed to the general absence of collective professionalism in the IT industry, as well as inadequacies in the education and training of customer and supplier staff at all levels. Moreover, there is a broad reluctance to accept that complex IT projects have similarities with major engineering projects and would benefit from greater application of well established engineering and project management procedures. “ A significant percentage of IT project failures, perhaps most, could have been avoided using techniques we already know how to apply. For shame, we can do better than this.” (L Hatton) The Challenges of Complex IT Projects BCS, Royal Academy of Engineering April 2004

A profession has …

Initial professional education

Law school

Accreditation of knowledge requirements

Oversight bodies

PMBoK, SWEBoK

Skills development

Housemanship

Articles

Years of experience

Certification

CA exams

Board exams

PMP

MCSD, …

Licensing

Professional development

House doctor, specialist

Professional Societies

Medical Association

PMI, CSSA, IEEE, ACM

Code of Ethics

Organisational certification

Beyond individual competence

ISO

CMM

Gibbs, Ford (SEI) & McConnell

Competence Competence = ƒ ( Knowledge, Skill, Personal attributes ) Skill = ƒ ( Applicable experience, Years, Results ) Talents / gifts are 1. recognised 2. developed 3. exercised to become skills

Knowledge

Project management knowledge

PMBoK

PRINCE2

Project manager competency development framework

PMP, P2 Foundation / Practitioner

Domain knowledge

SWEBoK

Industry certification & training

General business

APM BoK

Business schools

General management

Skill

Domain

Hands on application

Years

Success, results

PM personal attributes a la IPMA

Ability to communicate

Initiative, engagement, enthusiasm, ability to motivate

Empathy, ability to connect, approachability

Common sense, assessment of value, acceptance of responsibility, personal integrity

Conflict resolution, openness to new ideas, fairness

Ability to find solutions, holistic thinking

Loyalty, solidarity, readiness to assist weaker members

Leadership ability

Personal attributes a la PMI PMCDF

Achievement & action

Helping & human service

Impact & influence

Managerial

Cognitive

Personal effectiveness

How to assess …

Knowledge

PMP

Qualifications

Assessment

Subject

Required level

Is at level

Assess pattern

Experience

CV

Reference checking

Interview techniques

Personal attributes

Profiling

Assessment

Examples

What is missing?

Assessing organisations

So, you have employed capable project managers, but just how good is your organisation as a project incubator?

Maturity models

PMI OPM3

CMM and derivatives

Standards, methods, … Method The definition: “ A way of doing things .” Dict What does this mean? Methodology The definition: “ A system of practices, techniques, procedures, and rules used by those who work in a discipline. .” PMBoK What does this mean? Standard The definition: “ A document established by consensus and approved by a recognised body that provides, for common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context .” PMBoK What does this mean?

Value, benefit, … Value The definition: “ The ratio of benefit to the cost to deliver that benefit.” EJR What does this mean? Benefit The definition: “ The quantifiable and measurable improvement resulting from an outcome which is perceived as positive by a stakeholder and which will normally have a tangible value expressed in monetary or resource terms. Benefits are expected when a change is conceived. Benefits are realised as a result of activities undertaken to effect the change .” OGC What does this mean? Value management The definition: “ A management technique to define the perceived and actual value to the enterprise, and then assessing progress and achievements based on this value .” OGC What does this mean? Value engineering The definition: “ A creative approach used to optimise project life cycle costs, save time, increase profits, improve quality, expand market share, solve problems, and/or use resources more effectively .” PMBoK What does this mean?

Portfolios, programmes, projects Project The definition: “ A temporary endeavour undertaken to create a unique product, service, or result.” PMBoK What does this mean? Start and end date. Unique. Scarce resources. Complex. Cross-functional. Programme The definition: “ A group of related projects managed in a coordinated way to obtain benefits and control not available from managing individually. Programmes may include elements of related work (e.g. ongoing operations) outside the scope of the discrete projects in a programme .” PMBoK What does this mean? Related projects, work. Coordination. Complementary. Portfolio The definition: “ A collection of projects or programmes and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The projects or programmes of the portfolio may not necessarily be interdependent or directly related .” PMBoK What does this mean? A list. Linked to strategy / business plans.

Portfolios, programmes, projects Programme Portfolio Sub-Programme Portfolio Portfolio Portfolios Projects Programmes Programmes Projects Projects Programmes Projects Other Work Projects Projects

Example: MSF programme Envision O’ll Arch Rqmts Build Releases Close Tranche 1 Tranche 2 Tranche 3 Benefit realisation measurement Stab Rel1 Deploy Deploy Deploy … Stab Rel2 Deploy Deploy Deploy … Stab Rel3 Deploy Deploy Deploy … … Realise benefits Realise benefits Realise benefits

Portfolios, programmes, projects (2) Multi-project management Mega-project management Project Management The definition: “ The application of knowledge, skills, tools, and techniques to project activities to meet project requirements.” PMBoK What does this mean? . Programme Management The definition: “ The centralised, coordinated, management of a program to achieve the programme’s strategic objectives and benefits .” PMBoK What does this mean? . Portfolio Management The definition: “ The centralised management of one or more portfolios, which includes identifying, prioritising, authorising, managing and controlling projects, programmes, and other related work, to achieve specific business objectives .” PMBoK What does this mean? .

Portfolio, programme and project management PMI PFM Std Project Programme Portfolio Scope Narrow Wide Business Deliverables change Changes to meet benefit expectations Changes with strategic goals Change tolerance Averse Expected and even encouraged Monitors need for change Success Measurement On time Within budget Products delivered to spec ROI New capabilities Benefits Aggregate performance of portfolio components

Portfolio, programme and project manager PMI PFM Std Project Manager Programme Manager Portfolio Manager Leadership style focus Task delivery Directive Relationships Conflict resolution Politics Adding value to portfolio decision-making Manages Technicians Specialists “ Doers” Project managers Management / coordination of portfolio management staff Team role Team players Motivate through knowledge and skills Provide vision and leadership Provide insight and synthesis and leadership Planning level Detailed High-level Create and maintain process and communication relative to aggregate portfolio Planning focus Delivery of products Provide guidance to projects Activity Monitor & control tasks Monitor & control production of products Monitor & control projects Monitor & control ongoing work Monitor aggregate performance and value indicators Method of control Hands on Governance structures

PPPM context PMI PFM Std Organisational resources Vision Mission Org strategy & objectives Ops planning & mgt Proj Portfolio planning & mgt Mgt of ongoing ops Mgt of projectised activities (pgms, pjs)

How it all hangs together Programme management Provide programme governance Close programme Describe programme Manage benefits Manage programme portfolio Identify programme Control projects Initiation Planning Executing Controlling Closing Project concept Initiation Planning Executing Controlling Closing Project concept Initiation Planning Executing Controlling Closing Project concept Initiation Planning Executing Controlling Closing Project concept Strategy Business Plan Operational Plans Enterprise Portfolio Management Support P M O P S O P O

A progression … PMO Independent unrelated projects Coordinated projects Programmes Portfolio management PSO PO PMO PO PO PO PO PO PO PO PO Budget

Do your bit … “ TO BE RECOGNIZED AS THE LEADER OF THE PROFESSIONAL DEVELOPMENT OF PROJECT MANAGEMENT IN SOUTH AFRICA” www.pmisa.org.za 011 315 0035 [email_address]