PM Network August 2011


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PM Network August 2011

  1. 1. PM AUGUST 2011 VOLUME 25, NUMBER 8 NETWORK MAKING PROJECT MANAGEMENT INDISPENSABLE FOR BUSINESS RESULTS.®> Selling thevalue of a PMO> How to increase IT success rateyour portfolio’s profit on the rise Did You Choose This Career? The phenomenon of the accidental project manager
  2. 2. If your team looked like this, any PPM solution would work. Daptiv, on the other hand, is a PPM solution designed for human beings. It is easily configured so that you can introduce powerful new PPM capabilities – when and where your organization is ready for them. To learn more about the PPM solution that adapts to Designed for People your needs - and those of your team - visit
  3. 3. >>>OPENING SHOT“We have to conduct thorough [research]on ecological and environmental fac- ”tors, as well as on impacts on countriesin the lower reaches of the river.—Bai Enpei, Secretary of the Communist Party of China YunnanCommittee, in China Daily Nujiang T he last free-flowing river in China region—could withstand an earthquake or could soon be dammed as part of other natural disasters like those that sparked River, an ambitious hydropower program to boost the country’s non-fossil Japan’s recent nuclear plant emergency. “Project developers should bear in mind Yunnan, fuel energy output to 15 percent by 2020. Hydropower has no carbon emissions, a that these geological conditions also pose business risks to them,” said Zhang Xing- China powerful counterpoint to the highly pollut- ing coal plants in the region. Yet the plans sheng, managing director of The Nature Conservancy’s North Asia division, in China for a reservoir and four dams on the Nujiang Daily. River could mean displacing up to 60,000 No dam projects in the region should be human residents as well as more than 7,000 approved without scientific appraisal, Mr. plant and animal species in the area. Zhang told the newspaper—but he added There are also questions of whether the that the process is “next to nonexistent in dams—to be located in a seismically active the current dam-building sprees.”
  4. 4. 26% Average business improvement because of project management training initiatives.*Project managementtraining is worth theinvestment.*Our latest research report, The Stateof Project Management Training,proves it. So how are firms achievingthese business results?Instructor-led classroom training is byfar the most used and most effectivemethod of project management training.Contact us at PM College to learn moreabout developing a successful trainingprogram for your organization.Download your copy at The State of Project Management » A PM SOLUTIONS RESEARCH REPORTtrainingresearch. Sponsored by © 2011 Professional Development Solutions, Inc. FREE REPORTpmcollege PM College provides corporate project management training I 888.619.2819 clients around the world.
  5. 5. pg. 44 Rapid Adaptation “We knew therebut still be somebemodificationsit during execution would had to able to run as a fast-track project. Traditional approaches to project management with well-defined periods for all steps couldn’t be followed strictly. —Petri Jokinen, Neste Oil, Singapore ” contentsfeatures aug1128 career track the accidental project manager Even as the profession grows, many are still thrust into it. Learning from peers is the way to go. by Kelley Hunsberger34 the pmo: Something of value The key to securing ongoing stakeholder support for a proj- ect management office? Relentlessly measure progress and broadcast its success. by Sarah Fister Gale44 Staying power A Finnish company branches out to Singapore and discovers pg. 40 a high-level talent pool to fast-track a biodiesel refinery megaproject. by Manuela S. Zoninsein a cloSer look: SiemenS,50 BooSting the Bottom line munich, germany Benefits realization and business cases all add up to increased profits. Two-year by Sandra A. Swanson stints help an engineering conglomerate’s thousands56 Special Section: education and training of project team Spirit management Although people are unpredictable, with the right training, team offices con- members will embrace collaboration. by Cindy Waxer stantly prove measurable bottom-line results.
  6. 6. It’s Time toGet Agile!Collaborate. Adapt. Iterate.Dont get left behind! Discover what all of the buzz is about in the Agiledevelopment world. IIL offers two new courses that explore Agile approaches:Agile Development and Project Management INTELLIGENCE, INTEGRITY AND INNOVATIONLearn the who, what, when and how of Agile IT projects and find out which practicestranslate into a more flexible approach to managing projects. Find out how Agile Project, Program and Portfolio Managementdevelopment relates to project management and get an overview of common Microsoft® Project and Project Server Lean Six Sigmapractices across a range of Agile methodologies. Business Analysis PRINCE2®Implementing Scrum for Agile Software Development ITIL®Get serious about Agile development using the fastest growing specific methodology. Leadership and Interpersonal SkillsLearn how to plan and run a sprint, how to estimate and prioritize user stories and Training, Consulting, Coaching and Mentoringhow to introduce Scrum to your organization. Customized Course Development AssessmentsTo register for these classes or to view our digital catalogue please Companies All Over the WorldBangalore · Beijing · Budapest · Dubai · Frankfurt · Helsinki · Hong Kong · London · Madrid · Mexico City · New York · Paris · São Paulo · Seoul · Singapore · Sydney · Tokyo · TorontoInternational Institute for Learning, Inc. 110 East 59th Street, New York, NY 10022-1380 USA Phone: +1-800-325-1533 or +1-212-758-0177
  7. 7. pg. 10 Turning a Corner “Companiesmuch moreadoptingthanprinciples of project ” management today are readily the they were in the past. —Jim H. Johnson, The Standish Group, Boston, Massachusetts, USAaug11viewpoints calendar of events UPCOMING MAJOR PMI GLOBAL EVENTS 22-25 October PMI Global Congress 2011—North America, Dallas/Fort Worth, Texas, USA. 18 From the Top Visit for details. A New Prescription Joel Verinder, PMP, Texas Health Resources, Arlington, Texas, USA AUGUST 20 Thinking Positive 8-11 SeminarsWorld, Annapolis, The Enthusiasm Factor Maryland, USA. by Alfonso Bucero, MSc, PMP, Contrib- uting Editor 21 The Agile Project Manager 15-17 PMI São Paulo Chapter International 3 Solutions for Your Offshore Problem Seminar, São Paulo, Brazil. by Jesse Fewell, CST, PMP 22 Career Q&A Climbing the Ladder 25-26 4th Pernambuco Project by Lindsay Scott Management Congress, Recife, 24 Voices on Project Management Pernamubuco, Brazil. From the Bottom Up by Phil Patrick, PMP SEPTEMBERalso in this issue 8-10 Project Management National01 Opening Shot 66 Help Desk Conference 2011, Bangalore, India.08 Feedback 68 Featured eBooks In Memoriam 71 Services Directory10 The Buzz 72 Metrics >> DOWNLOAD THE PM NETWORK APP26 In This Issue and read the magazine on your iPad, iPhone or iPod Touch.on the cover10 IT Success Rates on the Rise28 Did You Choose This Career?34 Selling the Value of a PMO50 How to Increase Your Portfolio’s Profit
  8. 8. pMPMI Staff network Contributing Editors THE PROFESSIONAL MAGAZINE OF THE PROJECT MANAGEMENT INSTITUTE Publication & MeMbershiP PM Network (ISSN 1040-8754) is published monthly by the Project Management Institute. PM Network is printed in the USA by Quad Graphics, Sussex, Wisconsin. Periodical postage paid at Newtown Square, PA 19073-3299 and at additional mailing offices. Canadian agreement #40030957. Postmaster: Send address changes to PM Network, 14 Campus Boulevard, New- town Square, PA 19073-3299 USA. Phone +1 610 356 4600, fax +1 610 482 9971.Vice President, Brand Management The mission of PM Network is to facilitate the exchange of information among professionals inLesley Bakker; Bud Baker, PhD, Wright State University the field of project and program management, provide them with practical tools and techniques, Alfonso Bucero, PMP, Bucero PM Consulting and serve as a forum for discussion of emerging trends and issues. All articles in PM Network arePublisher the views of the authors and are not necessarily those of PMI.Donn Greenberg; Sheilina Somani, PMP, Positively Subscription rate for members is US$42/year and is included in the annual dues. PMI is Project Management a nonprofit professional organization dedicated to advancing the state of the art of projectEditor in Chief management. Membership in PMI is open to all at an annual dues of US$119. 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  9. 9. FEEDBACK LETTER TO THE EDITOR VOICES ON PROJECT MANAGEMENT BLOG Project Managers in the C-Suite A Swan by Any Other Name Jim De Piante, PMP, writes:The cover story in the April issue of PM Network (“Control- For me, career growth means managing projects that are moreling Chaos”) promised to tell us how to protect our projects important, more valuable, more interesting or just more fun. Often,against a flock of “black swans.” While much of the advice this can mean bigger teams and bigger budgets, but for me, thatis useful, it has little to do with the true black swan idea. doesn’t necessarily translate into bigger thrills. Career growth Events or circumstances with extremely low probability does not mean at all that I need to become an executive to feeland extremely high impact are in fact just risks, and they fulfilled. I see project management and executive management ascan and should be tackled through complementary, but very different, skills. To me, that means thatthe normal risk process. There the two fields will appeal to two very different kinds of people,is no useful reason to give them depending on individual temperament.the special name of black swans.Unfortunately, the risk process Saira Karim, PMP, commented:cannot address these unpredictable It would be fantastic if executives had more project managementevents. training, but I do believe each role needs its own set of personalities The black swan is a valuable and skills. Project managers are doers/constructors, whereas theconcept that warns us to expect executives are more of the painters and creators. Both need eachthe unexpected. We should be other and are complementary roles, and there should be some proj-careful to use the term prop- ect management representation in executive management.erly and not dilute it through misuse or laziness. If wemistakenly think that risks with very low probability and Matt Kirchman, PMP, commented:very high impact are black swans, then we are likely to Project managers, through ensuring that their projects are strategi-remain blind to the existence of truly unpredictable shocks. cally aligned, are more tactically oriented. I think of accomplished proj-Instead, we should use the risk process to address known ect managers as the non-commissioned officers in the military. Theyunknowns, and rely on business continuity and resilience are the ones that help a unit (or team) accomplish a particular goal,techniques to protect us from the attack of the black swan. and their effectiveness is based on respect for what they can do, not —David Hillson, PMP, PMI Fellow for their rank. I think it will continue to be rare for project managers to Petersfield, Hampshire, England move to the upper echelon of management, and I’m OK with that.What’s your take? Continue this discussion in the Project PMI members can access a related research report, Project Man-Risk Management Community of Practice. agers as Senior Executives: Volumes 1 and 2, at>> Visit for more information. Knowledge-Center/Research-Completed-Research.aspx >> Join the discussion at LINKEDIN Daniel Hill, PMP, asks: What is a project Which of the following social media manager’s most important personality trait? vehicles do you use to support your profession and/or career?NK Shrivastava, PMI-RMP, PMP, responds: Listening LinkedIn: 63%and communicating is the most important personality trait Facebook: 12%for a project manager. Remember what the PMBOK® Guidesays — More than 90 percent of a project manager’s time Twitter: 4%goes into communication. To be a good communicator, Other: 2%you need to be a good listener first. All of the above: 19%>> Join the discussion in the PMI Career Central group. From the Voices on Project Management blog at We love to hear from you! Write us an email at >> FOLLOW US on Facebook:
  10. 10. In MeMorIaM By SaNJEEv GuPTaEliyahu M. Goldratt, PhD1947 – 2011Eliyahu M. Goldratt, PhD, author of The Goal and In 1997, Dr. Goldratt expanded TOC in his bookcreator of the theory of constraints and critical chain Critical Chain, which provides the basis for criticalproject management, passed away at his home in Israel chain project management. Critical chain project man-on 11 June. He was an iconoclast who also established agement emphasizes resources rather than schedulingnew methods for managing manufactur-ing, supply chains and projects. After obtaining a doctorate in phi-losophy from Bar-Ilan University, Dr.Goldratt left the academic world topursue a career in business. He joinedCreative Output in 1979, which becamethe number-six company on the Inc. 500list in 1984. Its optimized productiontechnology software was the precursor tomanufacturing and supply chain optimiza-tion, which became a multibillion-dollarindustry in the late 1990s. Dr. Goldratt became recognized asa business thought leader with his 1984bestseller, The Goal, which introduced theworld to the theory of constraints (TOC).It is among Forbes’ list of business bestsell-ers and is required reading in almost everymaster of business administration program,though the book’s influence is best capturedin a quote from The Economist: “A surveyof the reading habits of managers foundthat though they buy books by the likes ofTom Peters for display purposes, the one management or cost. This methodology is claimed to enable 10 tobook they have actually read from cover to cover is The 50 percent improvement in project speed. Seven of theGoal.” Even though it was privately published, it has eight largest U.S. military air depots reportedly havesold more than 5 million copies in 35 languages. used its techniques to improve fleet availability while The underlying principle of TOC is that optimizing cutting costs.local efficiencies creates artificial constraints that prevent One cannot overstate Dr. Goldratt’s influence onan organization from realizing its full potential. Dr. thousands of managers around the world, and it willGoldratt famously proclaimed that cost accounting is the only grow with time.“enemy number one” of productivity. By keeping thefocus on the ultimate goal, organizations can increase their Sanjeev Gupta is CEO of Realization, a critical chainspeed and throughput. TOC has been adopted in a wide project management software and services provider inarray of private and public organizations worldwide. San Jose, California, USA. august 2011 PM NETWORK 9
  11. 11. thebuzz submit news to all monetary figures are in U.s. dollars unless otherwise noted. Failure rates Finally Drop The reporT card for IT proj- ects is in—and things are looking up as companies step up their project management maturity to better handle scope, risk and change. after years of abysmal failure rates, the number of projects delivered on time and on budget is increasing, according to Chaos Manifesto 2011, a new report by The Standish Group. The survey of 10,000 projects conducted in 2010 around the world revealed: n 37 percent of IT projects were suc- cessful, coming in on time and on budget. n 42 percent were “challenged,” arriv- ing over budget, late, or with less- than-required features and functions. n 21 percent failed completely, can- celed prior to completion or deliv- IN ThEsE PaGEs ered but never used. Those numbers compare favor- 12 project Managers Like This ably on all fronts to the 2008 survey illustration by keith negley results, which showed that only 32 14 Mass destruction percent of IT projects succeeded, 16 Building a New africa while 44 percent were challenged and 24 percent failed. The 2011 results represent the highest success rate in the history of the sEE ThE laTEsT NEWs about project, program and portfolio management online at PM NETWORK May 2008 WWW.PMI.ORG
  12. 12. >TIPChaos survey, which The Standish Group has beenconducting biannually since 1994. After years ofpoor showings—in 2004 only 28 percent of projects Bridge the divide. Despite the growingwere considered a success—the recent uptick indi- adoption of project management in IT, there remains a discon-cates that the IT world may have turned a corner. nect between project managers and senior management. Execu-AheAd of the Curve tive sponsors don’t always understand the strategic impact thatOne of the most obvious reasons for the increase effective project management can have at an organizational levelin successful projects is the economic recovery tak- and don’t always see the value of critical project managementing root in many markets, says Jim H. Johnson, processes, says Jim Johnson, The Standish Group, Boston, Mas-chairman of The Standish Group, Boston, Massa- sachusetts, USA. And project managers don’t always do the bestchusetts, USA. That shift, albeit slow, means fewer job of conveying that value. “Executive sponsors need training onprojects are being shut down or failing due to finan- project management, and project managers need training on how tocial constraints. But it’s more than that. Organizations are communicate with executives,” he says.approaching IT projects in a new way. “Compa-nies today are adopting the principles of projectmanagement much more readily than they were in the rising success rate also stems from the typesthe past,” Mr. Johnson says. Tasks such as estimat- of projects being launched. The Standish researching and risk management are more thoughtfully found fewer big organization-wide enterpriseaddressed earlier on, reducing errors and improving resource planning (ERP) system rollouts in the laston-time delivery rates throughout the project life two years. “We saw a lot more moderate projects,cycle. More companies are also developing project with companies revamping or upgrading existingmanagement offices (PMOs), which drive project systems,” Mr. Johnson says. “Those projects aremanagement maturity. smaller and easier to deliver.” IT project teams, in particular, tend to be ahead And those companies that did roll out new ERP 37%of the curve because they work in a much more system projects in 2010 fared poorly, according The portiondynamic environment and need to be able to deal to the 2011 ERP Report by Panorama Consulting of successful IT projects inwith problems and turn things around more quickly Group. The survey of 185 organizations from 57 2010, comingthan in other fields, says Ricardo Viana Vargas, countries revealed 61 percent of ERP projects in in on time andPMP, a past chair of the PMI Board of Directors small and mid-sized companies took longer than on budgetand CEO of Macrosolutions, a management con- expected—compared to 36 percent in 2009. Andsulting firm in Belo Horizonte, Brazil. nearly three-quarters exceeded their budgets, up 32% “Because IT projects are shorter and more from to 51 percent in 2009. On the plus side, the The portiontime-sensitive, IT project managers are adept at data shows an increase in the number of compa- that wasmaking faster decisions and using smarter team- nies that realized significant business benefits from successful in 2008work,” he says. the project investments, indicating that companies Certain IT project management concepts, such prioritized results over maintaining budget or 28%as Agile, may not be a good fit for sectors outside of schedule. The portionIT. But Mr. Vargas says other industries can pick Such life-cycle management is vital for projects that wasup some tips on preventing project failure by using to deliver bottom-line value, and is a sign of the successful inhallmark IT approaches such as prompt decision- increasing complexity that project managers face in 2004 Source: Themaking and straightforward communications. managing risks on big IT projects. Standish Group “Make precise decisions quickly and be ready “Most project managers still look at risk as ato change directions if need be,” he says. “The one problem to avoid, but there are types of risks thatwho moves fastest to market gets a huge advantage.” add value,” Mr. Johnson says. “You have to look at risk and value together to increase the ROI.”SmAll SCope, Big pAyoff Otherwise, those IT project success rates mayNo doubt the increasing maturity is helping, but start to slide back. —Sarah Fister Gale august 2011 PM NETWORK 11
  13. 13. thebuzz Project Managers Like This FACEBOOK, TWITTER, BLOGS, WIKIS their teams. By far, though, the most popular use and other social media tools haven’t quite of social media was to stay in touch with friends reached the exalted status of Gantt charts and and colleagues, cited by 85 percent of the respon- work breakdown structures in the project man- dents. Thirty-six percent of respondents said they agement profession. used social media to communicate with team But they’re gaining ground. members, and 24 percent said they used it to More than 75 percent of project managers reach stakeholders. That conversation, however, said social media improves the way they manage should be one with give-and-take. projects, according to the 2011 Social Media in a “Social media is not just a tool to blast your Project Environment survey by London, England- message, but to really understand what it is that based Elizabeth Harrin, author of Social Media people want to talk about, what gets them most for Project Managers [PMI, 2010]. No on-the- engaged,” says Vickie Smith-Siculiano, PMP, an sidelines observer, Ms. Harrin is also author of Internet marketing and search engine optimiza- the blog A Girl’s Guide to Project Management, tion specialist at Marketview Research Group, a founding member of the PMI New Media Edgewater, New Jersey, USA. Council and head of IT program delivery at Spire Before project managers start tapping into Healthcare. social networks, she recommends defining the The survey, which included 181 respon- most influential stakeholders so the right content dents from more than 30 countries, found that reaches the right channels. LinkedIn ranked as the most popular tool for business use among project professionals. That SOCIAL BOUNDARIES was followed by instant messaging, blogs, Twit- Simply declaring that social media has hit critical ter and wikis. mass doesn’t begin to capture its true reach. “Wikis have a very low barrier to entry in that More than 500 million people actively use they are very easy to set up. Wikis are also easy Facebook, logging more than 700 billion minutes to use, and they are excellent for capturing les- per month on the website. Twitter sees an average sons learned and project information,” says Ms. of 140 million messages sent out per day, adding Harrin. “At the end of the project, a wiki can up to 1 billion tweets per week. More than 100 be passed on to the operational team as a great million people use LinkedIn to network with col- source of organizational knowledge.” leagues past and present. And more than 80,000 Podcasts and video podcasts (vodcasts) were companies—up from 10,000 just a year ago—use among the least-used tools, according to the sur- the corporate social network Chatter. vey. But Ms. Harrin sees a missed opportunity for With that kind of adoption, it’s hard for any project management office professionals looking organization to resist social media’s pull. Yet for training and education tools. extolling the wonders of social media and actu- Nearly half of all respondents employed social ally implementing these tools to benefit a project media tools for document sharing, while 27 per- team are two entirely different things. cent used them for project status updates, and a Many organizations jump into the fray with quarter said they actively used them for managing no clear strategy, which can be detrimental in How Project Managers Use Social Media project status updates managing teams stay in touch with friends and colleagues communicate with team members communicate with document sharing stakeholders 85% 48% 36% 27% 25% 24% SOURCE: Social Media in a Project Environment12 PM NETWORK AUGUST 2011 WWW.PMI.ORG
  14. 14. thebuzzMost popular social networking tools Mr. Wyatt suggested establishing clear policies tailored to each network. For example, linkedin project managers and their teams need to know when it is—and isn’t—appropriate to share pho- tos of a project on Flickr or discuss its progress on Twitter. instant Messaging The New SocialiTeS One of the most common concerns with adopt- wikis ing social media comes from senior managers and project team members fretting it will mean moreLeast popular work. “The best way to tackle this is to do what you can to manage stakeholder expectations,” Ms. Podcasts Harrin says. “Try to find out what people believe about social media and address any myths.” Video Podcasts From there, she suggests starting small. “Intro- duce new functionality slowly and take the timeSource: Social Media in a Project Environment to train people properly,” Ms. Harrin says. “Con- sider how, if at all, you are going to track thethe long run. “Just because the whole team is benefit of your social media implementation.”on Facebook and Foursquare doesn’t mean that Having a social media champion on the teamthey will know how to get the best out of these can help, too. This person can show the way bytools in the workplace,” says Ms. Harrin. “What demonstrating the tools to their full capac-is appropriate for personal use is not necessar- ity and coaching other team members onily appropriate for work. We need to get this bit the do’s and don’ts of social behavior. “Iright to see the growth in the use of social media would like to hope that usage will be self-tools on projects.” regulating, with team members managing That means setting standards—which most their own interactions,” she says. “However,companies have failed to do thus far. Almost 39 if that doesn’t work, an alternative is for the Twitter seespercent of 1,038 U.K. employees said their orga- champion to step in to ensure that guide- an average ofnization had no social media policy, according to lines and policies are adhered to.”the 2011 Social Media Survey, a new report com- Security also needs to be addressed from 140 millionmissioned by consulting group Protiviti. Twenty- the start. Organizations must treat social messagesfour percent said they were simply unaware of media as they would any other business sent out perwhether there was a policy or not. tool—with the proper access controls and “It’s extremely worrying that only a quarter protocols in place. It helps to have a frank day, addingof workers have been provided with any real discussion with the IT department about up to 1 billionguidance regarding the use of social media sites,” what your team is trying to achieve by using tweets perJonathan Wyatt, Protiviti managing director, said social media, Ms. Harrin says. a press release. People of all ages rely on social media, “Many senior managers assume that their of course. Yet as younger people weaned onless-experienced colleagues would not post inap- Facebook and Twitter make their mark inpropriate comments online and that they would the workplace, many of the barriers slowing downthink about the risks involved, but time and time social media’s full integration will be brokenagain they are proven wrong,” he added. “We’re down. It will be “a gradual shift,” however, Ms.seeing a growing number of cases where firms Harrin predicts. “And until we have confidencehave vague or out-of-date social media policies and policies supporting the use of these toolsthat are unenforceable if inappropriate activity from the IT departments, we won’t see wide-scaletakes place.” adoption.” —Kelley Hunsberger august 2011 PM NETWORK 13
  15. 15. thebuzz Mass destruction The race to build chemical weapons once drove countries apart. But projects to destroy the leftover stockpiles are now bringing gov- ernments together as they share knowledge across the global community. Political leaders around the world agreed to ban chemical weapons from the battle- field in 1997. Under the chemical Weapons convention (cWc), no new chemical weap- ons would be created, and all existing stores would be destroyed by 2012. angola, North Korea, egypt, Somalia and Syria were the only holdouts. In the 14 years since, teams worked to develop project plans, facilities, tools and tech- nologies to safely eliminate the deadly agents. They’ve made impressive progress: as of the pueblo Chemical agent-destruction pilot plant, pueblo, Colorado, usa May, more than 65 percent of the 71,000 tonnes of declared existing chemical weapons had been destroyed, according to the Organisa- In the United States, progress has slowed in tion for the Prohibition of chemical Weapons part due to the strict regulatory environment. (OPcW), the independent organization that although the country is currently constructing oversees the convention. albania, South Korea two facilities to destroy its remaining supply, and India have already completed destruction those projects aren’t anticipated to be com- of their chemical weapons. The russian Federa- plete, with the plants decommissioned, until tion has destroyed more than half of its stock- possibly 2021. pile (20,000 tonnes), and the United States has Neither country is being punished for miss- destroyed more than 84 percent of its supply ing the deadline because of the sheer complex- (23,406 tonnes). ity involved in delivering the projects. “The But there’s still a long way to go. reason why the United States and russia couldn’t ... make it by april 2012 is not bad Missed deadlines will,” Sergey Batsanov, director of the Geneva Neither russia nor the United States—which office for the Pugwash conferences on Science together possessed 90 percent of the world’s and World affairs, told Global Security News- Images Courtesy of assembled ChemICal Weapons alternatIves stockpile of chemical weap- wire in april. “Simply, the process turned out ons at one time—will meet to be much more complicated, much more the 2012 deadline. resource-intensive.”As of May, more than For russia, money has That teams are dealing with highly sensi-65 percent been the biggest obstacle. tive materials has to be foremost in every deci-of the “The implementation of the sion, says Douglas Omichinski, engineering71,000 tonnes [chemical weapons destruc- tion] program has been giant Bechtel’s project manager for the design, construction, systemization, operation andof declared existing chemical hampered by the global closure of the Pueblo, colorado, USa-basedweapons had been destroyed financial crisis, which threw Pueblo chemical agent-Destruction Pilot Plant it back two to three years,” (PcaPP). With construction of the plant more Konstantin Kosachev, chair- than 77 percent complete as of July, destruction man of the foreign affairs committee in the State of chemical weapons stored at the U.S. army Duma, told russian news agency rIa Novosti in Pueblo chemical Depot is slated to begin in June. The country now predicts a 2015 close. early 2015.14 PM NETWORK august 2011 WWW.PMI.ORG
  16. 16. thebuzz It’s one of the last two remaining U.S. proj- weapons destruction programs. “The Unitedects, but the team knows it can’t be rushed. States began with a much larger stockpile than “With projects like these, safety, quality and most other countries, but we’ve been successful inenvironmental compliance come well ahead of attaining nearly all international treaty milestonebudget and schedule,” Mr. Omichinski says. dates,” Mr. Levi says. As part of the CWC guidelines, OPCW has “We have benefited from a work force withtreaty personnel at the Pueblo plant monitoring a great deal of chemical weapon demilitarizationcompliance. Tracking by various international, experience, historical knowledge and practical les-federal, state and county regulators, coupled sons learned on our team,” says Mr. Levi.with the strict regulations associated with the Along with delivering their own projects,construction and operations of a hazardous waste- Bechtel and the U.S. government have workedtreatment facility, means every aspect of the closely with project teams in other nations, pro-project is carefully scrutinized. “From a project viding technologies, processes and perspective, it adds a lot of time to The U.S. government, for example, is participat-the overall process as compared to commercial ing in a technology transfer with Russian teams over-construction,” Mr. Omichinski says. seeing projects to destroy chemical weapons facilities, Adding to the challenge is the vast array of according to U.S. Army Corps of Engineers.stakeholders involved in these projects, says Wal- Even after all the weapons are wiped out,ton Levi, the U.S. government’sacting site project manager. Gov-ernment officials, local communitymembers, environmental activists,and the international communityare all closely watching projectprogress, requiring transparency andregular feedback. “The best lessonwe’ve learned is the importance ofcommunication,” Mr. Levi says. To keep the public informed,the Pueblo team sends its mes-sage through a variety of channels.Along with hosting monthly projectupdate meetings with communitystakeholders, it produces videosexplaining how the technologyworks and shares that informationvia YouTube, social networkingsites, newsletters and other mediaoutlets. “We want to be sure theyunderstand why we choose the at the pueblo plant, one of three distillate carbon filters is being staged on site to await permanent or processes we do andto show them that we have thedocumentation to support our decisions,” Mr. many team members will be able to tap into theirOmichinski says. experience and move into other complex projects at nuclear facility construction and utility com-Crossing Borders panies, says Mr. Omichinski. “When you workEven with all the scrutiny, the experience gained in such a highly regulated procedure-driven envi-at Pueblo and other sites has helped the United ronment, there are a lot of places you can go.”States safely ramp up its position in international —Sarah Fister Gale august 2011 PM NETWORK 15
  17. 17. thebuzz Building a new africa AfricA’s woefully inAdequAte infrastructure con- tinues to hinder the continent’s great eco- nomic promise. And it’s clear the sub- saharan nations can’t do it on their own— paving the way for new alliances with the private sector. looking to improve the dire traffic jams in its commerce capital of lagos, nigeria joined forces with local African development gautrain rapid rail Link, south africa Bank. the resulting $400 million project to rehabilitate and widen Bringing in ExpErtisE—and MonEy the city’s expressway marks the country’s first PPPs create new avenues for financing while public-private partnership (PPP). providing governments with much-needed And in south Africa, which has implemented project management knowledge. the influx of many successful PPPs over the past decade, the private-sector money and expertise drives more Gauteng provincial government teamed up with cost-efficient projects, reduces risks and fosters Bombela, a canadian-french consortium, for an best practices while developing the skill sets of 80-kilometer (50-mile) rapid-rail link to connect the local population. Johannesburg, Pretoria and Johannesburg’s or that added project management capability tambo international Airport. the nearly $4 billion is particularly valuable on large cross-border project, which began construction in 2006, was projects that face increased structural and reg- slated to debut in July. ulatory complexities, says Adama deen, head the simple truth is that without adequate of infrastructure programs and projects at the roads, telecommunications lines and other pri- Johannesburg, south Africa-based new Part- mary infrastructure, the sub-saharan region nership for Africa’s development’s Planning can’t build its industrial base and lure future and coordinating Agency. investors. “PPPs give these countries the capacity they yet most African nations lack the financial need to manage and implement cross-border resources and expertise to close this yawning infrastructure projects,” he says. “it is the way gap. even after spending nearly 12 percent of forward for Africa.” its collective GdP on infrastructure, the conti- the Kenyan government, for example, is Image Courtesy of BomBardIer nent requires nearly $93.3 billion more to meet looking to finance as much as 80 percent of its current needs, sanusi lamido sanusi, governor infrastructure projects through PPPs by 2030. of the central Bank of nigeria, reported at nigeria estimates it will need between $12 bil- the west Africa Global trade and investment lion to $15 billion annually for the next six years forum in June. to meet its infrastructure demands. to reach enter the private sector—always on the prowl those numbers, the urban development Bank to stake a claim in new markets. of nigeria plc (udBn) and the development16 PM NETWORK august 2011 WWW.PMI.ORG
  18. 18. thebuzzBank of Southern Africa signed an agreement more complex struc-in March with “the express goal of improv- tures, often impact-ing the capacities of both public and private ing negatively onsectors to deliver infrastructure,” said UDBN implementation,”managing director Adekunle AbdulRazaq according to a >> after spending nearlyOyinloye in a press release. They will share report from the 12 percent of its collectiveideas and technical expertise for infrastructure online busi- gdP on infrastructure, africadevelopment, including guidance for project ness publicationstructuring, financing options, funds mobili- How We Made requireszation, bid management, and evaluation and It in Africa. “A fair nearly $93.3negotiations. amount of education billion more and communication in both the to meetOvercOming rOadblOcks public and private sector must be currentAlthough PPPs bring the promise of much- encouraged.”needed development and investment in Africa, For the PPP project model to needsthey also add complexities—and complica- flourish in the long term, govern-tions. ments need their own project man- To begin with, Africa’s public sector leaders agement experts to help guide themust define the optimal amount of private- process. That will ensure they under-sector participation in any project, André Pot- stand their responsibilities and risks astas, infrastructure advisory leader for Africa at they move forward on projects that can takeDeloitte, wrote in an article for Independent years or even decades toOnline, a South African news outlet. One of bring to financial close.the biggest challenges facing project leaders is Project plans alsodeciding which partner takes on the respon- need to account for infra- Fog City Consultingsibilities and associated risks of each project structure operation oncephase, including design, finance, construction, construction is complete,operation and maintenance. said George Mahlalela, “The shape of that risk allocation deter- director-general of themines the structure of the partnership and Department of Transport Online PMP® Examthe costs,” he wrote. “Agreeing [on] this risk- for South Africa, in a Preparationsharing allocation has often been a stumbling June interview with Mon- Weekend, Weeknightblock.” eyweb. & Governments also struggle to bring funda- “Our interest is not 5 Day Boot Campsmental project planning and execution capabil- only just getting foreign We will provide you all the knowledge and tools needed to take the next step in yourities to a point at which the private sector has investors to come into career. Dont let this opportunity pass youthe confidence to invest, says Mr. Deen. South Africa. We see the by, register today for one of our upcoming “Many projects are not ready for PPPs creation of jobs in local experienced instructor led courses.because they have not achieved bankability,” industries as important,”he says. “The risks are elevated for the private he said. “Part of what Online PDUssector when a country can’t provide security we’re going to be talk-guarantees.” ing about is how do Assuming teams can get a project off the they transfer skills andground, a lack of local project management transfer technology intoand technical expertise can still hinder their South Africa so that forprogress—or force private companies to bring future development … Enroll Today!in talent to take on leadership roles. we have that kind of “The result is often a vehicle which is top- capacity here.” PMP and the PMI Registered Education Provider logoheavy with international advisers and perhaps —Sarah Fister Gale are registered marks of Project Management Institute, Inc. august 2011 PM NETWORK 12619_FOG CITY CONSULTING.indd 1 17 7/7/11 10:14:5
  19. 19. fromthetop Joel Verinder, PMP, Texas Health Resources, Arlington, Texas, USA A New Prescription SOME PROjEcTS just refinement of a strategic IT council. The council shouldn’t make the cut, espe- includes an executive representative from each hos- cially in an industry facing pital, along with several physicians, and a few other severe financial restraints. But IT representatives to provide technical direction at Texas Health Resources, and answer questions. every project requested of Now, the council considers every project pro- the IT department was posal and ranks it against the current portfolio and approved—until joel Verinder, existing resource constraints. The PMO also pres- PMP, stepped in as portfolio ents monthly data to the council about resource management office director. availability. Before a project is approved, business Leveraging experience gained across sectors rang- owners must bring their case to the council and ing from airlines to telecom, he has transformed the be able to define the anticipated ROI, whether it’s existing portfolio management office (PMO) into financial, regulatory or patient safety. Every busi- a business-driven one aimed squarely at helping ness case is expected to have metrics to define suc- >> As the PMO, ensure each of the not-for-profit’s 14 hospitals ben- cess. And six to nine months after implementation, we provide efits from the organization’s limited IT resources. business owners must report back on the results to the council.transparent data How has the organization’s approach to portfolio to the executive management changed? What kinds of results have you seen? The PMO’s initial charter focused on people, Today, we support 85 projects, and overall IT decision mak- process and tools, but the executive leadership morale has improved. But it took some time. In ers. This infor- wanted increased adoption and business value. the first couple of council sessions, it was a struggle When I came in, I swung it around to focus on to prioritize projects. Eventually, with all the talk mation validates business needs first, and figure out how project about healthcare reform and new reimbursementthat the portfolio management processes and templates can help models, people started to understand the resource solve problems. We got some quick wins early constraints we face. is aligned with on, which helped us gain momentum. Eventually We’re taking a more holistic systems approach, the strategic we evolved to focus on resource planning and with the goal of meeting the needs of all the hospi- prioritization. tals in the network. And because business owners direction of the are now presenting project results to the council, organization, Why did the PMO focus on resource planning? it gave visibility to some of the small projects that Texas Health supports 14 hospitals with a central- have delivered tremendous ROI. while enabling ized PMO and a single IT group with 575 people. leaders to truly There’s always a big need for our services, and we What lessons have you learned that might benefit were often overwhelmed with requests. The IT other PMO leaders? run IT like a team members had developed a “just get it done” The most important aspect of project management business. mentality, and they didn’t feel like they had a revolves around change management and how you voice. It caused us to start asking questions about communicate that change to your stakeholders and whether we were working on the right projects and project teams. If you can’t translate your vision to whether we could do a better job. the organization, that’s a risk. And if the business We worked with the IT governance team to owners don’t see value in what you are doing, you create a prioritization model, which included the won’t exist for long. 18 PM NETWORK August 2011 WWW.PMI.ORG
  20. 20. viewpoinTs The enThusiasmThINKING POsITIvE FacTor You can go from apathy to eagerness with the right motivation. by AlfONsO bucERO, Msc, PMP, cONTRIbuTING EdITOR W hen I looked for ways to motivate myself early in my career, I saw every project not only as a learning opportunity but also an opportunity to make people happier. And the key to doing that was fostering enthusiasm. As a project manager, there’s a way to develop enthusiasm so meaningful and profound that it will not decline no matter what strain it is put under: 1. Decide what particular personal characteristic you want to strengthen. 2. Develop it by acting as if you already possess the desired characteristic. 3. Believe and repeatedly affirm that you’re in the process of creating the quality you’re working to develop. If you want to be a more enthusiastic, for example, you must act with enthusiasm! Another practice to foster an optimistic attitude is As a project manager, there’s a that of “mental ventilation.” Clear your mind of the way to develop enthusiasm so gloomy, foreboding thoughts that prevent the cheerful and spirited thinking that stimulates enthusiasm. meaningful and profound that it Getting up on the Right Side of the Bed will not decline no matter what A vital element in developing enthusiasm as a project manager is the manner in which you start the day. strain it is put under. Approaching each morning with enthusiasm can set the tone for the entire day—despite any disappointing vators. I’m always looking for new projects and initia- news you may face. tives that help me feel alive and happy. Develop your I always read some positive sentences after having enthusiasm and apply your passion to managing the my breakfast. Regardless of how busy my day is going people involved in your projects. to be, for those few minutes, I don’t permit any hurry Start the day focused on your blessings, and you will or haste, even in thought. react to your issues with a more positive approach— As you progress in your career, many things conspire and your enthusiasm will never die. PM to dull your enthusiasm: disappointments, project fail- ures, frustrated hopes, unmet ambitions and the inevi- Alfonso Bucero, MSc, PMP, is an inde- table energy drain. But such deterioration of your life pendent consultant who manages projects force happens only if you allow it. If you make a real throughout Europe and Asia. He is the effort, you can remain an enthusiastic project manager. author of Today Is a Good Day!: Atti- To maintain enthusiasm, you must find your moti- tudes for Achieving Project Success. 20 PM NETWORK august 2011 WWW.PMI.ORG
  21. 21. viewPoints3 solutions ThE agilE PROJECT MaNagERfor Your offshore ProblemAs distributed projects become the norm, Agile methods can help them run JEssE FEWEll, CsT, PMPt he honeymoon is over. Looking to deliver more while spending less, just about every large com- More project managers are pany has engaged in distributed offshore proj- suffering from quality issues, lan- ects over the last several years. But organizationsare discovering that outsourcing carries more pain than guage gaps and woefully unmetwas promised. More project managers are suffering fromquality issues, language gaps and woefully unmet expecta- expectations. so what can we do?tions. So what can we do? Here are some ways that Agilecan help you overcome some of the side effects of running reveal problems and opportunities earlier in the game. Ifoffshore projects: it reveals a slew of defects, the sponsor can reprioritize debugging over adding new features. If an incremental1. Stop emailing and start collaborating. deliverable is built to off-target specs, the sponsor still hasAgile project management places a strong emphasis on the opportunity to swap some of the pending features forcollaborative colocated communication. Using written the needed refinements.English can sometimes mitigate language issues, but emailtakes too long, and large documents can be stale the 3. Waste some money.moment they’re sent. Instead, we need to augment project The most successful teams build an additional 1 to 2 per-communications with modern online collaboration tools cent into their budgets for micro investments that yieldsuch as Google Docs, instant messaging, discussion boards high strategic value. One example would be sponsoringand Skype. Some teams have always-on webcams so each some advanced technical training for team leads at theside can see what’s happening on the other. offshore site. Even if you have to use your own budget, You can’t have successful projects without some kind of investing in better engineering practices can dramaticallyinteraction. If time zones make that inconvenient, share reduce the quality risk on your deliverables. Many execu-the pain, with each worksite taking a turn after-hours. tives may yell at you for spending “unnecessary funds”—In short, work hard to communicate in real time. You’ll but US$10,000 out of a US$1 million budget is a smalldevelop stronger collaboration, which will yield greater price to pay for project success.understanding and more innovative results. Projects are hard enough as it is without adding the extra2. Get bad news early. pain of coordinating teams across cultures, countries andA mentor once told me, “Never surprise your boss.” Simi- continents. But as global projects become more the rulelarly, a good project manager wants bad news as early as pos- than the exception, the modern project manager needssible. One of the greatest pain points for distributed projects to be vigilant in improving communication, quality andis unmet expectations. Sponsors can spend significant time satisfaction. Agile can help achieve that. PMand money generating rigorous requirements, wait a yearto see any output and then receive a single large deliverable Jesse Fewell, CST, PMP, is the managingthat simply misses the mark. If iterative-incremental deliv- director for offshore Agile projects at Ripple-ery is a good risk-management practice for local projects, Rock India and founder of the PMI Agilethen it’s absolutely vital for distributed projects. Community of Practice. He can be reached A monthly demo using a virtual meeting platform can at august 2011 PM NETWORK 21
  22. 22. viewpoints Climbing the laddcareer Q & a To get ahead, build your business acumen and leverage your social media connections. by Lindsay scott q I’ve been a Project Management Professional (PMP®) Find people in the business willing to mentor you in n certification holder for a number of years. However, I their area of expertise. want to ensure my career-development plans include A show of commitment to self-development may also additional business skills useful in a senior role. What create wider opportunities for you as you come into con- should I be focusing on? tact with members of the business team. Your visibility A will almost certainly be raised, and that may put you in q Your current experience, skills and certification in proj- a better position to practice your enhanced knowledge. ect management have provided a solid foundation for your career so far. To take it to the next level, you need I recently signed up on LinkedIn to reconnect with people, to consider the wider business environment in which but how else can it help me in my career development? A you operate. Business management, com- With Facebook seen as a personal mercial awareness, financial channel, LinkedIn is widely rec- management, organizational ognized as the leading profes- strategy and business change are sional social networking tool. just some of the business areas Used proactively, three areas are that directly relate to project particularly valuable: managers. Widening the focus 1. Networking: Keep in touch to include organizational and with those with whom you already human resources management, have a working relationship— marketing, operations, and current and past team members, leadership will give you a well- peers, managers and vendors. rounded skill set. That, in turn, These are the people who may boosts your chances for moving someday be able to provide you up the career ladder. with new career opportunities. All this may sound like the Be sure to also use LinkedIn to blueprint for a master’s degree follow up with the project man- in business administration, agers you encounter at meetings, but your development doesn’t conferences and seminars—espe- have to take such a formal (and cially if you’re looking for a win- expensive) route. The key to dow into project management building additional business careers in sectors and industries skills is choosing the learning other than your own. that best suits you and your It’s worth noting that 80 industry. Here are some ways to percent of career opportunities get started: don’t come through career or n Engage your manager and corporate sites, but rather from explain your objectives. personal recommendations and n Identify target areas in which referrals. Make those connec- you’re looking to increase your tions work for you by staying knowledge. visible and proactive. 22 PM netWorK August 2011 WWW.PMi.orG