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Week03 slides spring_2013 Week03 slides spring_2013 Presentation Transcript

  • Mgt 610 Strategic Perspectives on Project ManagementSession 3Project Manager’s Value MindsetDr. Thomas Lechler Phone: (201) 216-8174FAX: (201) 216-5385email: tlechler@stevens.edu
  • Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler. All rights reserved.For academic use only. 2Session 3: Evidence1. Success factors describe the constraints of the traditionalproject management paradigm, how could a new paradigmlook like?2. Project value differs from traditional project success. Whatare the consequences?3. A framework for a project strategy will be developed tomaximize project value.
  • Mgt 610 Strategic Perspectives on Project Management(c) 2013, Thomas Lechler. All rights reserved.For academic use only. 3Module 3: AgendaProject Value Management Framework1. Basics of Strategic Management2. Project Value Perspectives3. Project Value Network4. Project Value Strategy5. Project Value Statement View slide
  • Mgt 610 Strategic Perspectives on Project ManagementUncertainty Focused PM Perspective1. Project uncertainty can be managed by seeking,discovering and exploiting project value opportunitiesduring project implementation.2. The project manager is instrumental in discovering andexploiting project value opportunities.3. The project manager needs to have a project valuemindset (PVM) to discover and exploit opportunities.For academic use only. (c) 2013, Thomas Lechler. All rights reserved. 4Change Focus to Value View slide
  • Mgt 610 Strategic Perspectives on Project ManagementResearch Framework: HypothesesFor academic use only. (c) 2013, Thomas Lechler. All rights reserved. 5Exploited ValueOpportunitiesProjectValueH 1 H 2H 3PM’s Project ValueMindsetProject Value Mindset Study
  • Mgt 610 Strategic Perspectives on Project ManagementPM’s Value Mindset – DefinitionProject Manager’s Project Value Mindset.. is a mental state involving dispositions and traits resulting inactivities to seek, discover and exploit opportunitiesbeyond a pre-defined value proposition with the intent tomaximize a project’s value.Project Value Opportunity.. represents a potential to exceed the pre-defined projectvalue occurring during a project’s implementation.Project Value.. could be represented by a single or any combination ofefficiency, technical effectiveness and the satisfaction of aproject’s stakeholder.Project Value Mindset StudyFor academic use only. (c) 2013, Thomas Lechler. All rights reserved. 6Research Framework: Definitions
  • Mgt 610 Strategic Perspectives on Project Management• 5 key informants per project: Project Manager, ProjectSponsor, 3 key members of project team.• The U.S. sample includes responses from 387 core teammembers, 114 project managers and 95 senior managers.• Successful projects (104) unsuccessful projects (10).• New product development projects (20%), softwaredevelopment projects (28%), constructions projects 10%,and IT projects (31%) implemented in many industries.• All projects had a budget of at least $500,000 and theiraverage duration is 18 months.For academic use only. (c) 2013, Thomas Lechler. All rights reserved. 7Research Method: SampleProject Value Mindset Study
  • Mgt 610 Strategic Perspectives on Project ManagementPM Value Mindset – SEM EstimatesProject Value Mindset StudyExploited ValueOpportunitiesR2=.41ProjectValueR2=.52.63* (7.49) a.19 * (2.04).59* (5.93)Strat_RqmntSpec_RqmntTraitsOverachievementAmbiguityOpportunity Disp..59*.59*.65*.60*.64*.77*PM ValueMindsetStandardized Path Coefficients of the Structural Equation Model* t-ValuesaFit StatisticsRMSEA AGFI NNFI NFI CFI X 2 df0.002 0.93 1.00 0.99 1.00 14.98 (p=.53) 16For academic use only. (c) 2013, Thomas Lechler. All rights reserved. 8
  • Mgt 610 Strategic Perspectives on Project ManagementConclusions• PM Value Mindset is important:• to manage uncertainty,• and capture project value.• Project value opportunities occur in situations ofuncertainty.• Opportunities must be perceived and exploited tomaximize project value.Project Value Mindset StudyFor academic use only. (c) 2013, Thomas Lechler. All rights reserved. 9
  • Mgt 610 Strategic Perspectives on Project Management• Technical opportunities are less frequent than expected!• Not every situation of uncertainty leads to opportunities!Nature of OpportunitiesOpportunity Category Opportunities FrequenciesTechnology Testing solution 3Implementation process Monitoring, process improvement,outsourcing, versioning8Project & Business Multiplier, identified new opportunities oforiginal solution11Future Business Project life cycle opportunity, beyondproject7(c) 2013, Thomas Lechler. All rights reserved. 10For academic use only.
  • Mgt 610 Strategic Perspectives on Project Management• 4 cases identifying real opportunities and misperceiving opportunities• 2 cases having both exploited and unexploited opportunities• Identifying opportunities is not easy or natural!• Exploitation of more than two opportunities not observed!• Very few rejected opportunities!Opportunity Recognition & ExploitationNumber of Opportunities per Project Frequencies PercentageOne opportunity identified & exploited 15 36%Two opportunities identified & exploited 7 17%Opportunities identified but not exploited 2 5%No identified opportunity 4 10%Misperceived opportunities 20 48%(c) 2013, Thomas Lechler. All rights reserved. 11For academic use only.
  • Mgt 610 Strategic Perspectives on Project Management• Opportunities are mainly recognized by the project managers!Context of Opportunity RecognitionStakeholders FrequenciesBoard of directors 3Project steering committee 1Project sponsor 3Project manager 15(c) 2013, Thomas Lechler. All rights reserved. 12For academic use only.
  • Mgt 610 Strategic Perspectives on Project Management• Business perspective is key to opportunity perception and exploitation!• Constraint management is constrained to risks!Project Manager TypePM Types UncertaintymisperceivedOpportunitymisperceivedOpportunityidentified byPMOpportunityidentified byothersTechnocrat (6) 0% 100% 0% 0%TC (24)46% 58% 21% 21%Business (9)33% 11% 78% 22%(c) 2013, Thomas Lechler. All rights reserved. 13For academic use only.
  • Mgt 610 Strategic Perspectives on Project ManagementValue Effects of Project OpportunityFrequencies PercentageStakeholder Satisfaction 17 77%Shareholder Satisfaction 15 68%Financial Returns 13 59%Schedule 13 59%Quality (Performance) 12 55%Budget 11 50%Outcome (Specs) 10 46%Quality (Grade) 8 36%Non-financial Benefits 6 27%Other 4 18%(c) 2013, Thomas Lechler. All rights reserved. 14For academic use only.