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PM Network August 2011

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  • 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. 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 daptiv.com
  • 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. 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 Trainingwww.pmcollege.com/ » A PM SOLUTIONS RESEARCH REPORTtrainingresearch. Sponsored by © 2011 Professional Development Solutions, Inc. FREE REPORTpmcollege PM College provides corporate project management training forpmcollege.com I 888.619.2819 clients around the world.
  • 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. 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 visit:www.iil.com.IIL 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. 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 www.PMI.org 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 www.PMI.org 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 www.pmisp.org.br/11seminario 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 www.pmipe.org.br 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 www.pmi.org.in/conference201109 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. 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; lesley.bakker@pmi.org 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; donn.greenberg@pmi.org 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. For informationDan Goldfischer; dan.goldfischer@pmi.org Roberto Toledo, MBA, PMP, Alpha PM Con- on PMI programs and membership, or to report change of address or problems with your sub- sulting scription, contact:Publications Production Supervisor Neal Whitten, PMP, The Neal Whitten GroupBarbara Walsh; barbara.walsh@pmi.orgPeriodicals Associate PMI Board of DirectorsNatasha Pollard; natasha.pollard@pmi.org Project ManageMent instituteGeneral E-mail: pmipub@pmi.org 14 Campus Boulevard / Newtown Square, PA 19073-3299 USA Chair Beth Partleton, PMP Tel +1 610 356 4600; Fax +1 610 482 9971Reader Feedback: editorial@pmi.org (+1 262 337 1097, E-mail: customercare@pmi.org Toll-free: 1 855 746 7879 (United States) / 1 855 746 7879 (Canada) / 1 800 563 0665 (Mexico)Bookstore: bookstore@pmi.org beth.partleton@bod.pmi.org) PMI Asia Pacific Service Centre Vice Chair Peter Monkhouse, BSc(Eng), MBA, SingaporeAdvertising Sales PEng, PMP Tel: +65 6496 5501 / E-mail: customercare.asiapac@pmi.org (+1 416 702 9574, PMI Europe-Middle East-Africa (EMEA) Service CentreFor advertising information, contact: peter.monkhouse@bod.pmi.org) Lelystad, Netherlands Tel: +31 320 239 539 / E-mail: customercare.emea@pmi.orgJ.T. Hroncich Secretary-Treasurer and Chair, Performance Toll-free NumbersPMI Advertising Sales Program Oversight Committee 00 800 7464 8490: Austria, Belgium*, Bulgaria*, Czech Republic*, Denmark, Estonia*,c/o Capitol Media Solutions Deanna Landers, MBA, PMP Finland, France, Germany, Hungary, Iceland, Ireland, Italy, Latvia*, Lithuania*, Luxembourg,3340 Peachtree Rd. NE, Suite 1050 Malta*, Netherlands, Norway, Poland, Portugal, Slovak Republic*, Slovenia*, Spain, Sweden*, (+1 303 378 8459, Switzerland, United Kingdom, Vatican CityAtlanta, GA 30326 USA deanna.landers@bod.pmi.org) 00 800 4414 3100: Cyprus, Greece+1 404 347 3316 Chair, Strategic Planning and Program 07 810 800 7464 8490: Russia*advertising@pmi.org Alignment Committee +31 320 239 539 (toll number): Andorra, Belarus, Bosnia and Herzegovina, Croatia,Media kit: www.PMI.org/Advertising Liechtenstein, Macedonia, Moldova, Monaco, Romania, Serbia and Montenegro, Ukraine Jane Farley, MSc, FPMINZ, PMP (+64 21 890 254, *Use the toll number (+31 320 239 539) from mobile phones in these countriesSTAFF LIAISoN jane.farley@bod.pmi.org) PMI India Service CentreManager, Supplier Relations New Delhi, IndiaSandra Ardis; sandra.ardis@pmi.org Tel: +91 124 4517140 / E-mail: customercare.india@pmi.org DirectorsProject Management Institute other locations Eugene (Gene) Bounds, PMP Beijing, China; Washington, D.C., USA; Shenzhen, China; Mumbai, India;Publishing Department Bengaluru, India; Sydney, Australia; Montevideo, Uruguay; Porto Alegre, Brazil14 Campus Boulevard / Newtown Square, (+1 703 377 4186,PA 19073-3299 USA eugene.bounds@bod.pmi.org) See www.PMI.org/AboutUs/Customer-Care.aspx for contact details.Tel +1 610 356 4600; Fax +1 610 356 4647 Steve DelGrosso, MSc, PMP Address editorial inquiries, advertising and Publications Mail agreeMent #40030957 (+1 919 848 6986, Return Undeliverable Canadian Addresses to: Circulation Department /mailing list rental queries, and requests for steve.delgrosso@bod.pmi.org) P.O. Box 1051 / Fort Erie, Ontario L2A 6C7reprints, bulk copies or reprint permission to Shirley Edwards, PMPPMI Publishing Department. © 2011 Project Management Institute Inc. All rights reserved. (+1 704 715 8606, All rights reserved. “PMI,” the PMI logo, “Making project management indispensable for Unless otherwise specified, all letters and business results,” “PMI Today,” “PM Network,” “Project Management Journal,” “PMBOK,” shirley.edwards@bod.pmi.org)articles sent to PMI are assumed for publica- “CAPM,” “Certified Associate in Project Management (CAPM),” “PMP,” the PMP logo,tion and become the copyright property of Herman Gonzalez, PMP “PgMP,” “Program Management Professional (PgMP),” “PMI-RMP,” “PMI Risk Management (+1 647 287 7247, Professional (PMI-RMP),” ”PMI-SP,” “PMI Scheduling Professional (PMI-SP)” and “OPM3”PMI if published. are registered marks of Project Management Institute, Inc. “Project Management Profes- herman.gonzalez@bod.pmi.org) sional (PMP)” is a service mark of Project Management Institute, Inc. in the United StatesPublication Services Louis J. Mercken, MBA, PMP, PMI Fellow and/or other nations. (+32 495 53 46 43, PM Network welcomes story ideas and/or suggestions about sources. Our stories are written by pro-Imagination, Chicago, Illinois, USA louis.mercken@bod.pmi.org) fessional journalists. Please contact Imagination editorial director Cyndee Miller or PMI editor in chief Dan Goldfischer with your ideas and suggestions. If you are interested in submitting articles for the PMIEVP Association Strategy , Jon Mihalic, PMP Knowledge Shelf, located at www.PMI.org/Knowledge-Center/Knowledge-Shelf.aspx, please contactRebecca Rolfes; rrolfes@imaginepub.com (+1 703 216 2548, jon.mihalic@bod.pmi.org) Dan Goldfischer. More information can be found at www.PMI.org/en/Knowledge-Center/Publications- PM-Network.aspx . Published articles do not necessarily reflect the views of the magazine or theAccount Director William Moylan, PhD, PMP Project Management Institute. PM Network is not responsible for loss, damage, or any other injury toRachel Brooks; rbrooks@imaginepub.com (+1 248 473 5451, unsolicited manuscripts or other material.Editorial Director william.moylan@bod.pmi.org) Digital eDitionCyndee Miller; cmiller@imaginepub.com Frank Parth, MS, MSSM, MBA, PMP A digital edition of this issue is available to PMI members by logging on to www.PMI.org and selecting Knowledge Center, then Back issues in the online library. The digital edition of PMSenior Editor (+1 714 813 8971, frank.parth@bod.pmi.org) Network is also accessible on iPad, iPhone and iPod Touch, via the PM Network app.Matthew Wright; mwright@imaginepub.com Vijay Prasad, M.Tech, PMP reaDer services (+91 98490 06070, vijay.prasad@bod.pmi.org) For placing orders or for inquiries, please contact PMI Publishing Department at pmipub@pmi.org.Editor Ricardo Triana, PMP Permissions. 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  • 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 www.PMI.org/>> Visit risk.vc.pmi.org for more information. Knowledge-Center/Research-Completed-Research.aspx >> Join the discussion at PMI.org/Voices. 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 PMI.org We love to hear from you! Write us an email at pmnetwork@imaginepub.com. >> FOLLOW US on Facebook: www.facebook.com/PMInstitute.
  • 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. thebuzz submit news to pmnetwork@imaginepub.com. 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 www.PMI.org/PMport.10 PM NETWORK May 2008 WWW.PMI.ORG
  • 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. 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. 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. week.in 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. 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. 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 funding.management 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 placement.equipment 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. 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. 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, www.fogcityconsulting.com “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 www.fogcityconsulting.com info@fogcityconsulting.com “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. 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. 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. viewPoints3 solutions ThE agilE PROJECT MaNagERfor Your offshore ProblemAs distributed projects become the norm, Agile methods can help them run smoothly.by 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 jesse.fewell@vcleader.pmi.org. august 2011 PM NETWORK 21
  • 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
  • 23. viewpointser career Q & a can opt in or out of email alerts, allowing you to choose your level of involvement in each group. Want more career advice? Head 3. Job searches. LinkedIn has emerged as the recruit- to Career Central at PMI.org or ment tool of choice for many companies looking to draw quality project professionals. That means even if check out the PMI Career Central you’re not seeking a job, you could receive new career group on LinkedIn. opportunities at any time based on your profile. If you are actively looking for work, update your LinkedIn profile both in the ”status” and “add a current position” fields. These are the main areas that organizations use to 2. Groups: There are more than 3,000 project man- search for new talent. agement-related groups on LinkedIn, covering a variety The LinkedIn setup also means you’ll see organiza- of specializations, regions and industries. The groups are tions that are recruiting. These targeted ads show up on an opportunity not only to connect to others in your your page, and you only see opportunities that match field but also to share knowledge. your profile. PM Discussion boards and links to resources such as webinars and conferences are excellent ways to seek spe- Lindsay Scott is the director of program cific advice from the enormous pool of knowledgeable and project management recruitment at people within your chosen groups. Arras People in London, England. Please You can be a member of up to 50 groups at any one send your career questions to pmnetwork@ time. That could lead to information overload, but you imaginepub.com. 23 0109_AGU_BOOST.indd 1 1/26/11 10:31 AM august 2011 PM NeTWOrK
  • 24. viewpoints From the BovOIcEs ON PROjEcT MaNaGEMENT How a team of individual contributors came up with a strategy that saved millions and delighted executive management. by PhIl PaTRIcK, PMP I t all began with a chance elevator pitch. schedule was our initial focus. Naturally, the team’s enthusiasm At the not-for-profit healthcare consortium Kaiser grew as we began to see how our work would improve the Permanente, projects are evaluated at monthly meetings organization. The initial scope was cost savings for one specific to address the need for additional resources, funding and region, but senior managers agreed to expand the scope to the 3 the like. After a presentation in 2009, I ended up alongside entire enterprise and requested an action plan. the senior vice president of the infrastructure management group. I seized the opportunity to tell him about an idea that 3. Present a compelling action plan. could save substantial infrastructure operating costs. At the When the time came to put the enterprise-wide action plan organization, innovation and creative solutions have become in front of management, the goal was to cover all bases. I part of the culture, but its sheer size can make escalation and didn’t expect many follow-up opportunities to impress. The implementation challenging. action plan targeted senior management in all relevant depart- That brief exchange blossomed into an action plan for a ments and included material for finance management and multi-year, multimillion-dollar cost-savings initiative that is customers. Senior managers had to have a firm enough grasp 1 helping achieve one of the organization’s key strategies. of the activities and benefits to be able to convey the value proposition to others. As a practical matter, they also needed 1. Align with the executive vision. to understand how the benefits (e.g., cost savings, increased As in many industries, executives in healthcare are tasked with productivity, improved quality, etc.) would be measured and doing more with less. Improving cost structure was a recur- statuses tracked. ring theme in our CIO’s message at town hall meetings. I saw I used my understanding of governance processes and value in reducing operating expense tied to that vision—and interdepartmental relationships to develop a resource model therefore determined my idea would likely be welcomed by encompassing project team members throughout the organi- the senior leaders governing project funding. zation. The IT structure was dynamic, so I continued to share I began discussions with project team members about the resource plan with team members to ensure accuracy. details. There would be a high level of complexity and risk in The action plan was developed with three principal goals: dismantling a large, restrictive-legacy, private wide-area net- 1. Provide sufficient background to understand what was work. It had been patched with hundreds of expansions span- required to complete the key milestones and demon- ning more than a decade and equipment made by a bankrupt strate command of the technical tasks supplier. After preliminary analysis, we began to see scenarios 2. Explain the total quantitative and qualitative benefits in which the network cost savings would indeed be substantial 3. Specify the resources required and new patient care technologies could roll out much sooner. We developed an easy-to-follow, leave-behind document 4 With that preliminary analysis and an informal vote of after each meeting with management to facilitate their com- 2 confidence from the senior vice president, we intensified the munication with others. effort. 4. Obtain organizational buy-in. 2. Assemble a skilled exploratory team. There’s an old saying that goes, “If it’s to be, it’s up to me.” Leaders at the bottom of the org chart can be highly influ- But while leading change as an individual contributor in a ential. You make the first move, and others gradually join large organization, that couldn’t have been further from the in. My team pulled a few people together for weekly strategy truth. For example, I relied heavily on the vice president of meetings. I began by reminding everyone that our mission was network services to lead a coalition of senior managers over tied to the CIO’s vision of reducing operating expense. Quan- vital engineering resources. I struggled with how and when tifying cost savings, scope of work, resource requirements and to follow up with executives to whom I rarely had exposure. 24 PM NETWORK august 2011 WWW.PMI.ORG
  • 25. viewpointsttom Up VOicES ON PROjEcT MaNagEMENTReview meetings with senior managers in other departments members, business partners andsailed along smoothly, though. customers. Buy-in from the finance department was a whole differ- I also chaired weekly analysisent matter. Like most successful companies, my organization meetings with technical resourcesrequires solid financial justification before bringing on addi- to discuss schedule issues andtional resources. review network analysis proposals Because of the scale, developing the spreadsheets with to maximize savings.finance to validate the short- and long-term financial benefits In the first year, our custom-took an enormous amount of time. The scope of this program ers began expressing approval asimpacted more than 1,000 locations in eight regions of the they began to see cost benefits. Phil Patrick, PMP,country, and the resources to support the work were spread Monthly commitments were leads a network strat-throughout 10 departments. consistently met or exceeded. The egy team at Kaiser5 annual savings commitment was Permanente informa-5. Build high-performance project teams. exceeded two-and-a-half months tion Technology inOnce the business case was finally approved, it was as if a early by 155 percent, translating Pleasanton, califor-party that started in my garage had morphed into a full-blown into additional savings of several nia, uSA. He can beballroom gala. The project management office (PMO) was millions of dollars—confirmed reached through hisbrought on board to track the financial benefits. Eventually, by the PMO. blog at leadfromthe-we welcomed its tracking and reporting because it was an bottom.blogspot.com.independent validation of millions of dollars in savings. Competitive Forces The first challenge in the execution phase was how to Without leaders at every level, organizational transfor-structure more than 20 project managers into manageable mation becomes impossible. Rapidly changing marketteams so that hundreds of planning and analysis meetings with conditions and fierce competition pose unprecedentedspecialized technical resources were conducted in an organized challenges to an organization’s market standing—andfashion. Looking at the entire organization, we created focus perhaps survival. Action plans and strategies fromgroups, and established regular status and planning meetings organization-savvy workers paying attention to executivewith project managers in different regions to discuss schedule, vision enable energies to be channeled into projects withbudget and change requests for more funding when necessary. the most benefit. Furthermore, if project managers were going to replicate Sometimes the great ideas come from a project manager atthis effort and build support, they needed to be trained to the bottom. Such opportunities are rare—so when a promis-present the project objectives and key milestones to their team ing idea comes your way, be ready to start the party. PMRaise Your Voice No one knows project management better than you, the prac-titioners “in the trenches.” So PM Network launched its Voices on Project Management column.Every month, project managers will share ideas, experiences and opinions on everything fromsustainability to talent management, and all points in between. If you’re interested in contributing,please send your idea to pmnetwork@imaginepub.com. august 2011 PM NETWORK 25
  • 26. <In This Iskey takeawaysthe accidental projectmanager pg. 28>> the phenomenon of the “accidental project manager” doesn’t seem to be going anywhere anytime soon.>> those thrust into project management roles must quickly develop the neces- sary skills, including how to effectively identify and communicate with spon- sors and stakeholders.the pmo: something of value pg. 34>> Quantifiable metrics can help persuade skeptical executives to support the 40 project management office (pmo) model. “Without delivering>> communicating results in simple reports will demonstrate a pmo’s value to the organization and the bottom line. tangible demonstrablestaying power pg. 44 return on investment,>> governmental partnerships and incentives persuaded an energy company to launch a biodiesel refinery project in singapore. you aren’t doing what>> a well-established talent pool allowed the project team to fast-track the initiative, you need to do to achieve success. “ while meeting the desired certification standards. —Steve Clark, Siemens, Norcross,Boosting the Bottom line pg. 50 Georgia, USA>> By building a compelling business case based on metrics, portfolio decision-makers can convince finance managers that the potential for profit outweighs the risks.>> from the first planning session to the harvesting of end results (sometimes years More than 50 after project close), benefits realization reveals just how profitable an endeavor was. The percentage of Siemens’ annualteam spirit pg. 56 revenues that come>> without team collaboration, projects won’t run smoothly. from managing and>> training in effective listening, expected behaviors, conflict resolution and coopera- delivering customer- tion can get teams working well together. facing projects
  • 27. sue>>>Project PEOPlE augusT 2011 James Bosak, PMP, CA Technologies............ 30 Steve Clark, Siemens .........................................40 Michael Cooch, PwC........................................... 36 PagE PEOPlE Tammy Lenski, Ed.D., Tammy Lenski LLC ..... 59 Craig J. Letavec, PMP, PgMP, Siemens IT Solutions and Services ......................................40 PagE Matti Lievonen, Neste Oil ................................... 46professionals Neil Denny, The Wilsher Group.. ...................... 58 Clive Enoch, PhD, PMP, Standard Bank ........ 52 Kevin McDevitt, Siemens ...................................40 Eric Morfin, PMP, Pfizer .................................... 37need to work to Patricia Ensworth, Harborlight Management Services................................................................. 30 Diego Nei, CEACRE (Centro Evangélico decreate an environment Shoshana Faire, Professional Facilitators Apoio e Acolhimento) ......................................... 32 International.. ........................................................ 59 Yvan Petit, PMP, Université du Québec àwhere accidental Gary Furlong, Agree Dispute Resolution.. ..... 58 Montréal..................................................................51 Matt Rawson, Practicus ..................................... 53project managers can Joe Gartrell, PMP, USAA .................................. 33 Steven Romero, PMP, CA Technologies..........51recognize the change Martina Huemann, WU (Wirtschaftsuniversität Wien), Vienna University of Economics and Raed Skaf, PMP, Deloitte................................... 36 Business ................................................................. 31in their role and openly Petri Jokinen, Neste Oil ..................................... 45 Jen L. Skrabak, PMP, WellPoint........................51 Terry Tanner, City and County of Denver ...... 38seek assistance. Edwin Kapinus, PMP, DM Petroleum Operations Company .......................................... 36 Joel Verinder, PMP, Texas Health Resources,—James Bosak, PMP, CA Technologies, Arlington, Texas, USA .........................................18 Denise Keller, Benchmark Email ..................... 54Cary, North Carolina, USA Todd Williams, eCameron Inc.............................53 PG. 28 Caroline Leies, MorganFranklin........................ 53 ORgaNizaTiONs PagE ORgaNizaTiONs PagE“ Agree Dispute Resolution, Dundas, Ontario, Professional Facilitators International, Sydney, Canada ........................................................................ 58 Australia .......................................................................59 I have seen very Benchmark Email, Los Alamitos, California, PwC, London, England ........................................... 36 USA .............................................................................. 54 positive relationships CA Technologies, San Francisco, California, Siemens, Norcross, Georgia, USA......................40 with the finance USA .............................................................................. 30 Siemens, Philadelphia, Pennsylvania, USA ...... 26 CEACRE (Centro Evangélico de Apoio e Siemens IT Solutions and Services, department when Acolhimento), Salvador, Brazil ............................. 32 Waynesville, Ohio, USA ..........................................40 the project manager City and County of Denver, Colorado, USA .......37 Standard Bank, Johannesburg, South Africa ........................................................................... 52 or PMO establishes, Deloitte, Riyadh, Saudi Arabia .............................. 36 Tammy Lenski LLC, Peterborough, New DM Petroleum Operations Company, New Hampshire, USA........................................................59 manages and tracks Orleans, Louisiana, USA ........................................ 36 Université du Québec à Montréal, Montreal, the project and the eCameron Inc., Camas, Washington, USA...53 Quebec, Canada ........................................................ 51 business decision Harborlight Management Services, New York, New York, USA...31 USAA, San Antonio, Texas, USA......................... 33 WellPoint, Los Angeles, California, USA ............. 51 throughout the ” MorganFranklin, Washington, D.C., USA ........... 53 The Wilsher Group, Monkton Combe, Bath, project life cycle. Neste Oil, Espoo, Finland ....................................... 45 Avon, England ........................................................... 58 —Caroline Leies, Morgan Franklin, Pfizer, La Jolla, California, USA............................37 WU (Wirtschaftsuniversität Wien), Vienna University of Economics and Business, Vienna, Washington, D.C., USA Practicus, Henley-on-Thames, Oxfordshire, Austria .......................................................................... 31 PG. 50 England ....................................................................... 53 august 2011 PM NETWORK 27
  • 28. caREERtrackaccidental the project manager by Kelley Hunsberger // illustration by Otto Steininger Even as the profession grows, many are still thrust into it. Learning from peers is the way to go. 28 PM NETWORK august 2011 WWW.PMI.ORG
  • 29. august 2011 PM NETWORK 29
  • 30. W “When I grow up, I want to be a project side plant supervisor for a telephone manager.” company where he was responsible for That’s not a line you hear too often. complex installations. While he had the Most kids tend to dream of one day technical expertise for the position, he being a firefighter, actress or football star. lacked any formal project management But the project management profes- training. “There are too many organiza- sion is growing exponentially world- tions that expect people with technical wide, and more and more institutions expertise to just know how to formally of higher education are offering courses manage a project,” he says. covering its processes. The hardest part about moving from Despite this, many professionals delivering a technical solution to man- still find themselves working as project aging a project is accepting that there managers—without ever having applied may be a better way of doing things, for the position. says Mr. Bosak, director of program “At the beginning of their careers, management at the IT management typically people don’t have a burning software giant CA Technologies in desire to become project managers,” says Cary, North Carolina, USA. “People Patricia Ensworth, author of The Acci- want to believe that they have been dental Project Manager: Surviving the doing a good job. And they may have Transition from Techie to Manager [John been—but that does not mean that it Wiley & Sons, 2001]. “They start out can’t be improved,” he says. “There is doing something else—marketing, social always room for improvement. Intro- work, biochemical engineering—and spection takes time and a willingness to after acquiring subject matter expertise change once you see a better way, and and leadership skills, they are promoted that is not always easy for people or into the role of project manager. Some organizations.” accidental project managers accept their It wasn’t until he began reading proj- new responsibilities enthusiastically, ect management books and speaking some reluctantly.” with successful colleagues that Mr. Bosak Whether enthusiastic or not, so- discovered he hadn’t put enough impor- called accidental project managers find tance on documenting, tracking and themselves with a host of new responsi- estimating. “When I realized all of the bilities as part of their workload—and elements that I had always glossed over that means they need to get up to speed in my projects, I was stunned,” he says. as quickly as possible. “Accidental project managers are often able to achieve a technically per- Welcome to the fect result that is not what the sponsor Wonderful World of had in mind,” he adds. “Or they may project management not meet the budget or timeline. The James Bosak, PMP, fell into manag- trained project manager understands ing projects while working as an out- that knowing how to deliver the result >TIP Join your local PMI chapter. No matter where you are in the world, chances are there’s one nearby. It’s one of the best ways to connect with your peers face-to-face and gain valuable knowledge of the profession. PMI also offers virtual communities of practice for a variety of industries and topics. When something stumps you at work, post a query on the community site—and gain insights from more experienced project professionals.30 PM NETWORK august 2011 WWW.PMI.ORG
  • 31. is only important if the result Accidents Will Happensupports the requirements and isdelivered when needed. There is a As project management continues to gain in popularity atdirect line from the requirements organizations around the globe, will this trend of the accidentalto the activities to the result to project manager begin to wane?customer satisfaction.” Don’t count on it, says Patricia Ensworth, author of The Accidental Project Mr. Bosak then took his proj- Manager. “Accidental project managers are not only here to stay, but alsoect management career to the tend to increase in numbers when an organization formalizes project man-next level by acquiring the Project agement as a core competency.” She says these accidental project managersManagement Professional (PMP)® will continue to head up small efforts where they can transition more easilycredential. into the role and learn about the position. The trick is finding a good bal- A lot of it comes down to where you live.ance between your old and new “The profession of project management is in very different stages in dif-job responsibilities. “I am still in ferent countries,” says Martina Huemann, WU (Wirtschaftsuniversität Wien),a technical field, getting projects Vienna University of Economics and Business, Vienna, Austria. “In countriesdelivered but managing different where there are education programs established and universities that offeraspects, such as project selection project management programs, there is a higher likelihood that the career ofand funding priorities,” he says. “I a project manager is a planned rather than accidental one.”enjoy the challenge as well as the Expect to see an increase in accidental project managers for internaladvancements in technology.” projects, such as development or change efforts, which are often done on an ad hoc basis, Ms. Huemann says. That’s the case even in industries whothe Players utilize project management and have professional project managers estab-Often, the background of an acci- lished for external projects.dental project manager is loaded The accidental project manager’s future depends on how sponsors viewwith technical experience and the role, says James Bosak, CA Technologies, Cary, North Carolina, USA.expertise, says Martina Huemann, “There will always be accidental project managers, and certified projectassociate professor of project man- managers need to recognize that fact. Project professionals need to work toagement at WU (Wirtschaftsuni- create an environment where accidental project managers can recognize theversität Wien), Vienna University change in their role and openly seek assistance.”of Economics and Business, Organizations must understand that when they assign a resource toVienna, Austria. “So they might deliver a project, they are creating a project management position. As such,be used to thinking very much they need to train their resources appropriately, he says. That way they arein detail, providing expertise and creating project managers—and not of the “accidental” variety.concentrating on their technical Companies can also benefit from the establishment of a PMO (programtask,” she says. management office). “There will still be accidental project managers, but there In their new role, however, would be a resource to reach out to them and assist them,” Mr. Bosak says.these employees will need to startconsidering the big picture. Thatincludes leading others, designing project manger knows to find the spon-collaboration processes and understand- sor and get requirements in writing,ing how the project fits into the larger and hold sponsors accountable for theorganizational landscape. final decisions on things. And they also One of the first things new project know to make a list of stakeholders andmanagers need to learn are the different actually search for other stakeholders.”roles people play in the project. “I think Then it’s time to communicate effec-accidental project managers know that tively with the various constituencies.they are doing the project for ‘some- Sometimes that means taking on theone,’ but they don’t have a solid concept role of entrepreneur when dealing withof sponsor versus stakeholder, and they the sponsor and other senior managers,always miss some stakeholders,” Mr. says Ms. Ensworth, president of Har-Bosak says. “This results in incomplete borlight Management Services, a proj-requirements and rework. A trained ect management consultancy in New august 2011 PM NETWORK 31
  • 32. Is the “accidental project manager” a relic of the past? We posed that question on the PMI Career Central group on LinkedIn. Here’s how project professionals responded: As long as organizations want to embrace change, they will have to initiate projects—whether they call them that or not. And since experi- enced project managers are always in short supply, there will always be people with no direct authority, who never expected to be placed in that position, managing projects. For many of them, it will be a once- or twice-in-a-lifetime experience; for others, it will be the beginning of a new career. —Dave Gordon, USA My background has been identified as a good fit for project man- agement. I’ve been a web developer, technical business analyst and an executive officer for a state agency. Those experiences have been invaluable with being able to communicate well with both technical and non- technical people. —Brent Laning, PMP, USA I became a project manager by accident. I was in estimation and tendering and I submitted a tender. After the contract was awarded, I got involved in the project initiation, and the client approached our top management for me to continue as a project manager until the end of the project. Since then, I am on two “boats” (i.e., estimation and tendering, and project management). Sometimes I feel it is good for me. But when I am overloaded, I feel I should choose a single boat. —Nadeem Arshad, PMP, Qatar York, New York, USA. “Sometimes one methods have and haven’t worked for must make a sales pitch for the project them and any tips for successfully lead- to obtain approval and initial fund- ing teams. ing,” she says. “And always, throughout Talk to veteran project profession- the project life cycle, it is necessary als “not only about the appropriate to gather high-level information about tools and techniques, but also about the political and financial climate and the informal network of political to reassure senior stakeholders that the influence and the unwritten rules that project is a good investment.” determine how things actually get done,” she says. the Learning Process Take their advice—and don’t view Your boss pats you on the back and suggestions for improvement as a sign says, “Congratulations! You’re manag- of mistrust in your ability, says Diego ing this project.” Now what? Nei, project manager at CEACRE Don’t just stand there wide-eyed and (Centro Evangélico de Apoio e Acolhi- panicked. Learn from your peers by net- mento), an orphanage in Salvador, Bra- working with other project managers zil. “People can unintentionally sound inside and outside of your organization, as if they are bragging or complaining suggests Ms. Huemann, adjunct profes- when actually they are just trying to sor of project management at SKEMA pass along information about what has Business School in Paris, France, and a worked in their experience.” project management trainer and con- Help from peers will only take new sultant at Roland Gareis Consulting project managers so far, however. You in Vienna, Austria. Ask them what must also learn skills that can be paired32 PM NETWORK august 2011 WWW.PMI.ORG
  • 33. with your technical expertise. The organization should also be “Take a PMBOK® Guide project involved in educating accidental projectmanagement course, take an Agile proj- managers on their new responsibilitiesect management course, then decide and how to carry them out. To do so,where on the spectrum of formal meth- project management processes shouldods the project lies,” Ms. Ensworth be ingrained in the corporate culture.advises. “Obtain a project management “Accidental project managers aresoftware tool and learn how to use it more likely to hit their stride and stayto create a work breakdown structure, in the race when their organizationsa network diagram with a critical path take project management seriously as aand a Gantt chart.” profession, a body of knowledge and a Courses on negotiation, presenta- skill set,” Ms. Ensworth says.tion skills and public speaking can also That means defining project man-be beneficial. agement as a human resources job cat- Once you have educated yourself egory, as well as developing clear criteriaand sought the counsel of more expe- for evaluating the role’s competencies. Accidental projectrienced professionals, the next step is In addition, project status should beto garner as much “in the field” experi- reported to, and monitored and con- managers are moreence as possible, says Joe Gartrell, PMP,San Antonio, Texas, USA-based process trolled by, executives at the managing director level and above. likely to hit theirengineer at USAA, a financial servicescompany for those who have served “Most important,” she notes, “proj- ect managers should feel that they stride and stay inin the U.S. military and their fami-lies. “Keep going, get as many projects belong to a community of practice. A formal PMO can establish this struc- the race when theirunder your belt as possible and startdown the route to earning your PMP® ture, but it can also be created through peer-to-peer centers of excellence.” organizations takecredential,” he says. “Experience is para-mount. However, most employers use should You staY or project managementthe PMP credential as an initial screen, should You go? seriously as aespecially in today’s difficult economy Not everyone who falls into the role ofwhere you may be competing against project manager will remain there. A lot profession, a bodyhundreds, if not thousands, of other of it depends on personality.project managers. Detail your accom- “All types of management require one of knowledge and aplishments with measurable results and to accomplish things through the effortsdevelop the ability to translate your of other people, so accidental project skill set.experience into any industry. In essence, managers who want to be in the spot- —Patricia Ensworth, Harborlight Managementhow does your experience transfer to light or to take pride in the craftsman- Services, New York, New York, USAthe job you’re applying for?” ship of their own work products might Making these strides will help not enjoy the role,” Ms. Ensworth says.impress your team members and senior “Moreover, project managers often needmanagers, Mr. Nei says. “If new proj- to accomplish things through borrowedect managers can show people how resources, so accidental project managersdedicated they are and that they can who prefer ticking off checkboxes overperform as well—if not better—than hustling for favors will become frustratedanyone, they will earn their peers’ by their lack of results.”respect soon enough.” However, those who do stick with When seeking educational opportu- the career path may find themselvesnities inside the organization, start with becoming more visible and more influ-the project management office (PMO). ential within their organization—and asIf there isn’t one, see what lessons a result, their stars can rise faster thanlearned have been documented by more those of managers who remain in purelyexperienced project managers. operational roles. PM august 2011 PM NETWORK 33
  • 34. The PMO: by SaRah fiSTeR gale :: illuSTRaTiOn by MaTT kenyOnSOMeThingOf Value The key to securing ongoing stakeholder support Relentlessly measure progress and broadc34 PM NETWORK august 2011 WWW.PMI.ORG
  • 35. for a project management office?ast its success. august 2011 PM NETWORK 35
  • 36. FOr Whether an organization has trouble meeting schedules, staying on budget or managing unanticipated risks, these issues should set the framework for a PMO’s charter and be a primary measure of progress, Mr. Skaf says. “Measuring the current situation and maturity gives the PMO a baseline for goal-setting, and helps in choosing the years the project management office right PMO model and proving results.” (PMO) has struggled to be taken seri- ously. In the early days, many PMOs SWOT Team failed due to lack of executive support, A baseline is just the beginning, though. vision or expertise. And even though the PMO leaders need a plan to prove model has matured and more PMOs they are delivering results, says Edwin are proving their value as critical drivers Kapinus, PMP, PMO manager for DM of business improvement, fighting the Petroleum Operations Company, the history of failure makes it that much management and operations contrac- harder to secure buy-in and resources tor for the U.S. Department of Energy from wary executives. To overcome this (DOE) on the strategic petroleum skepticism, PMO directors need to be reserve project headquartered in New certain from the start that they have Orleans, Louisiana, USA. the tools, resources and plan to achieve In 2008, Mr. Kapinus created a their goals. PMO for the organization, based “Fifty percent of PMOs fail the upon the results from an enterprise- first time around,” says Michael Cooch, wide SWOT analysis—assessing the director of global project and portfolio strengths, weaknesses, opportunities management propositions at the con- and threats in the organization. sulting giant PwC in London, England. “An emerging theme from the That alarming statistic is backed up SWOT analysis was a need for bet-Fifty percent of by research performed by Gartner at its 2010 ITxpo, as well as PM Solutions’ ter planning, control and execution of projects through the utilization of proj-PMOs fail the first The State of the PMO 2010 report. “To reduce that level of failure, ect management principles and tech- niques,” he says. “Thus, the PMO wastime around. To PMOs need a business case that is underpinned by solid measures and created to begin the process of creating that vehicle towards better project andreduce that level metrics,” Mr. Cooch advises. The best PMO business case has corporate performance.” The results suggested that more rig-of failure, PMOs a clear vision for what it will accom- plish, and aligns its goals with the orous project management principles on all projects would help reduce risksneed a business broader goals of the business, says Raed Skaf, PMP, consulting manager and unexpected costs, as well as add efficiencies to the operation throughcase that is at the accounting and consulting firm Deloitte in Riyadh, Saudi Arabia. “A better communication and more formal processes and methodologies.underpinned by PMO has to address specific problems that the organization is facing to be “The DOE relies on our company to have a vision for the successful integra-solid measures relevant,” he says. PMOs are not one-size-fits-all, tion of projects where cost, schedule, quality, safety, operability, security andand metrics. agrees Mr. Cooch. “If you don’t match your mission with the objectives of the environmental effectiveness are all key considerations of the project plans,”—Michael Cooch, PwC, London, England organization, the likelihood of PMO Mr. Kapinus says. “We see the PMO failure increases significantly.” as a hub to establish policies and proce- 36 PM NETWORK auguST 2011 WWW.PMI.ORG
  • 37. dures, to act as a single point of contactfor the planning and support of projectexecution, to mentor new project man-agers and to assist project managers >>Proving its Worthwith the recovery of troubled projects.” It’s not enough to just be successful as a project management Mr. Kapinus and his team created amore formal project management gov- office (PMO). To win stakeholder support and secure the budget andernance process, set stage gate reviews resources necessary for the organization to mature, PMO leadersand are building a lessons-learned pro- have to set goals, measure results and communicate those resultscess for issues and best practices that relentlessly across the organization.arise in projects. The PMO also imple- Here are five tips to make your PMO value statement heard:mented bi-weekly team meetings on 1major projects to update everyone on Define quantifiable measurements to prove what you’ve accom-progress, and to address any problems plished. Like every business unit, the PMO must set a baselineas soon as they arise. “Without frequent discussions, for the current state, define goals for improvement and measureproblems might not get resolved and results, says Eric Morfin, PMP, Pfizer, La Jolla, California, USA.it could easily become chaotic, result- “When you can back up your value statement with factual data, you’lling with impacts to the project,” he win stakeholder support.”says. “All of these processes will help 2create the desired disciplined approach set a realistic time frame for results. When Terry Tanner tookrequired to effectively manage projects over as head of the PMO for the City and County of Denver,as well as deepen the roots of a culture Colorado, USA, he made it clear to the CIO that it would takechange for using project managementprinciples.” 18 months before he could make a positive impact. “Leadership needs The PMO is already seeing improved to be disabused of preconceived notions that progress will happenresults, thanks to more formal key right away,” he says. “Even if one or two projects succeed early on,milestone reviews. On a current engi- you need sustained delivery to prove the change will be consistent.”neering project, a separate contrac- 3tor was hired to create the detailed Be sure you have the resources necessary to achieve yourdesigns. First, though, the PMO and goals. When the leadership team doesn’t understand the valuethe assigned project team conducted a proposition of a PMO, it won’t provide the necessary budget,review of the project scope statementand discovered it contained several support and talent it needs to succeed, says Michael Cooch, PwC,incomplete and non-compliant items London, England. “This lack of investment ultimately increases thethat did not align with project objec- chances of PMO failure, making it a self-fulfilling prophecy.” 4tives. These inconsistencies were thenlogged and tracked to resolution to Establish credibility throughout the organization. If you relyavert a potentially large impact to sub- on the support of one or two stakeholders to keep your PMOsequent project phases. going and they leave the organization, you’ll be in trouble, Mr. “If we hadn’t done that review, it Tanner says. As a city employee, his leadership team changes withcould have cost a lot of money in claims every election, so he knows he must have a broad support base toand procurement issues down the line,”Mr. Kapinus says. “But by being proac- remain relevant. “Building advocacy at the workplace level for thetive, we solved the problems before we PMO buys dividends with new leadership.” 5put it out to bid.” Mr. Kapinus is currently tracking get the best people on your team. You can have the bestthe success of that and another big methods, standards and practices in the world, Mr. Tannerproject at DM Petroleum Operations, says, “but without quality project managers, a PMO won’twhich he will use as an example to deliver value.”showcase the value the PMO brings tothe organization. august 2011 PM NETWORK 37
  • 38. >TIP OvercOming a Legacy Of faiLure Even when a PMO has a solid plan for success that includes quantifiable When measures, though, it can falter early on launching a PMO, without committed support from the start with the OPM3 executive team. ProductSuite®, recommends>>True Having a champion is especially Raed Skaf, PMP, Deloitte,Value important if you are trying to get past the notion that PMOs tend to fail, Riyadh, Saudi Arabia. “Frequent says Terry Tanner, IT services PMOPMOs contribute directly to assessments are essential to director for the City and County ofthe following performance Denver, Colorado, USA. Mr. Tanner measure the project managementimprovements: joined the governmental agency in processes’ maturity, the 2009 after it had tried—and failed—Decrease in failed projects: organization’s improvement and31% to implement a similar PMO a few years before. alignment with business strategy.” Denver initially had small IT shops set up in every agency across the cityProjects delivered and county, with no centralized officeunder budget: to oversee them. In 2003, the new office was resurrected, and Mr. Tanner30% CIO consolidated them all under one PMO, with the goal of creating a homogenous system and interface for was brought in to help make sure it avoided the mistakes of the past. “When I arrived, the organizationImprovement in productivity: IT services. was chaotic,” he says. Though there21% “The PMO was put in place as a response to the ‘next big thing’ syn- drome,” Mr. Tanner says. “By that I were many professional project man- agers on staff, they had no repeatable processes, and every project leader mea-Projects delivered ahead mean the next solution that will fix sured progress in his or her own wayof schedule: all that ails an organization or agency, based on personal experiences.19% without understanding anything about Mr. Tanner’s team members estab- the solution, what it takes to imple- lished formal project planning and ment, the timeline before results can be implementation processes for all IT expected, etc.” projects, created standardized meth-Cost savings per project:17% As a result, the executive team had odologies, rules and regulations, and unreasonable expectations concerning developed a charter and road map for the time it would take before results improvements that included key per- could be delivered, and did not under- formance indicators for the coming 18Increase in resource stand what would be required from a months. They also implemented toolscapacity: leadership perspective at the PMO level to measure overall portfolio progress,13% as well as their own involvement and support. “If management is not fully commit- and created a centralized database for project information, enabling the PMO staff to run reports that communicateuS$ ted to the PMO and providing active support and guidance, then I believe measurable value in terms of time saved and resources used.567,000The cost savings per it’s doomed to mediocrity at best, and failure at worst,” he adds. “That PMO lasted two years.” Today Mr. Tanner can show that 95 percent of the projects over which his staff has control meet their scheduleproject a PMO provides A couple of years later, another CIO goals; schedules controlled by third- was appointed—and this one under- party vendors are less consistent, heSource: The State of the PMO 2010, PM Solutions stood the value a strong PMO could admits. He has also reined in control of bring to the organization, he says. The scope creep and cost overruns, which,38 PM NETWORK august 2011 WWW.PMI.ORG
  • 39. he says, enabled the IT group to deliver30 more projects in 2010 compared to2009—with fewer staffers and a smaller 6-9 November PMO Symposium 2011,budget. “These measures show definitively Orlando, Florida, USAthat we add value to the organization,” Presented by the PMI Program Manage-Mr. Tanner says. ment Office Community of Practice, this four-day event is the largest internationalthe Best Measures conference devoted to the topic. MoreBeing able to demonstrate tangible than 30 presentations, workshops andmeasures of success through reports networking opportunities will be offered.and project case studies is vital to >>For more information, visitwinning over skeptical executives who www.pmosymposium.org.question the value of the PMO. Butthese tools only work if those measuresalign with the organization’s goals, says we reduced the time it takes to developEric Morfin, PMP, senior director of a clinical plan by 75 percent.”the oncology business unit at the phar- He’s currently working on a PMOmaceutical giant Pfizer in La Jolla, project at Pfizer, focusing on achievingCalifornia, USA. similar capacity improvements across The key is determining what lead- the oncology project portfolio.ership values the most right now, and If he had tried to sell resource alloca-recognizing that the things it values will tion as a model for PMO success a fewchange along with the business. years ago, it would have fallen flat, he “A lot of PMOs make the mistake says, because at that time quality outputof thinking time is the most important and compliance were the driving focus.driver, when it’s often more valuable to “You always have to ask yourself what itfocus on resource allocation,” he says. is that the executive team values today,Figuring out ways to work smarter and how you can demonstrate thatthrough more efficient processes can value through the PMO.”lead to better on-time delivery while Once you have determined organiza-managing costs. This, in turn, creates amore appealing business case for execu- tional goals and achieved results, make sure senior management knows what A lot of PMOstive leadership. Recently, Mr. Morfin helped the has been accomplished, Mr. Morfin says. Those in charge of the PMO must make the mistakeNational Cancer Institute develop aPMO. In his evaluation of its project generate regular reports that demon- strate their successes. Those reports of thinking timemanagement process, he found thatteams working on early-phase drug- must be in the language of the execu- tive suite—using simple clear measures is the mostdevelopment projects start from scratchwith each project plan, even though that show the impact of the PMO to the business. Mr. Morfin confines his important driver,80 percent of what they do is fairlystandard: recruiting staff, developing reports to one-page summaries with sharp graphics that tell a story at a when it’s oftenprotocols and identifying data. Mr.Morfin helped develop a work break- glance. “Keep it short and simple,” he advises. more valuable todown structure template to streamlinethis process. PMO directors should also encour- age key stakeholders to talk up their focus on resource In the old system, teams wouldparticipate in 16 four-hour meetings to successes to other executives, Mr. Skaf advises. “It’s easier to build support for allocation. —Eric Morfin, PMP, Pfizer, La Jolla,create a project plan, he says. With the a PMO when it’s championed by senior California, USAnew template, it now takes only four management,” he says. “People listen tomeetings. “By focusing on resource use, those whom they trust.” PM august 2011 PM NETWORK 39
  • 40. a closer losiemens, munich, GermanyiF If only it were always this easy. The project management offices (PMOs) at Siemens, the global engineering and electronics powerhouse, have little trouble gaining stake- holder support for their endeavors. At any given time, the organization has several thousand PMOs doing everything from overseeing massive programs to establishing enterprise-level stan- dards and best practices for project management in individual business units and across the entire company. “Project management is a core competency at Siemens,” says Kevin McDevitt, senior program manager of enterprise processes, and project and risk management at Siemens in Philadelphia, Penn- sylvania, USA. He notes that more than 50 percent of the company’s annual revenues come from managing and delivering customer-facing projects. But more than just offering a project man- agement framework, PMOs at Siemens enable the company to advance its methodologies and strategic management maturity, says Craig J. Letavec, PMP, PgMP, Waynesville, Ohio, USA- based director of the North America solutions PMO for Siemens IT Solutions and Services, which was acquired by Atos Origin. “Many PMOs get mired in the tactical man- agement of projects and programs,” says Mr. Letavec, author of The Program Management Office: Establishing, Managing and Growing the Value of a PMO [J. Ross Publishing, 2006]. While that may be a fine place for a PMO to start, it’s not a sustainable long-term model for most large organizations. “You’ve got to elevate what you do so that the PMO structure is seen as continually driving value across the business,” he says. “You’ve got to get your arms around the tactical issues, then move on to the more strategic goals.”40 Steve Clark, Siemens, Norcross, Georgia, USA PM NETWORK august 2011 WWW.PMI.ORG
  • 41. ok Two-year stints help an engineering conglomerate’s thousands of project management offices constantly prove measurable bottom-line results. photo b y stan kaady
  • 42. >TIPCreate case studiesthat will help futurePMos define their owncharters, goals andmeasures of success,suggests Steve Clark,Siemens, Norcross, PMOs at Siemens begin with standard- or continuing to make its business unit’sVirginia, USA. “It helps ized principles and guidelines that are the processes more efficient. same across the organization. However, “Our PMO model is dynamic, and it isother divisions see the PMO directors are encouraged to tailor their driven by continued process improvement,”benefit of going down processes to meet their group’s unique he adds. needs. “Siemens provides the framework,this path.” and we implement it in a way that makes A Course in FinAnCe sense for our organizational needs,” Mr. When the organization’s project manage- Letavec says. ment methodologies aren’t followed, non- But with that freedom comes responsi- conformance costs accrue. bility and accountability. Every PMO must Mr. Letavec came up with a strategy to be able to demonstrate the value it brings combat this: He puts his project managers to the organization through measurable through financial lessons. results based on the goals laid out in its “Many of our project managers have charter. “If you don’t have measures, you bottom-line responsibility for executing don’t know your value,” Mr. McDevitt says. projects to schedule and profit targets, so That value must be delivered in a set they have to understand their costs and time frame. At Siemens, it’s recommended what will impact those costs,” he says. that every PMO be chartered for two years. Finance lessons help them make the At that point, executives reevaluate the connection between project decisions and PMO’s mission to be sure it has delivered bottom-line results. Mr. Latavec also part- the benefits it set out to provide, and that it ners project leaders with a financial profes- continues to drive value. sional and/or a quality manager on major “Most of our PMO leaders go in under- initiatives, so that together they can make standing they have about 24 months to decisions that balance quality, cost and deliver benefits,” Mr. McDevitt says. schedule goals. If the reviews show that the PMO has The PMO also tracks historic occur- met its goals, senior management then rences of issues that cause nonconformance decides to either disband the office, or set on projects, and the costs of those issues. new goals and expectations for the next 24 Then it creates process-improvement strat- months. egies to avoid repeating those mistakes. “It keeps the PMOs aggressive, so they Having that baseline enables the PMO to are always going after new benefits,” Mr. identify opportunities for improvement that McDevitt says. That may mean focusing will deliver the most value, and track the on Six Sigma training or lean principles, actual monetary value of those efforts.42 PM NETWORK August 2011 WWW.PMI.ORG
  • 43. For example, the IT teams had a recur- manager of the industry automation divi-ring issue with an online interface, leading sion PMO.to project delays. By identifying the cause, For example, an issue arose when aMr. Letavec’s team members identified customer chose a business interface solu-technology as the driver of the problems tion within its price range but inadequateand updated it to eliminate the problem on for its facility. Because the Siemens teamfuture projects. agreed to the choice without determining Then they tracked the trend over time, whether the solution would work properly,showing the history of nonconformance it was held accountable when the solutioncosts before and after the solution was didn’t meet the client’s needs.implemented. “It cost US$175,000 to fix that problem, “When you have that kind of data, it’s which came right out of our bottom line,”easy to see the value of the PMO,” Mr. Mr. Clark says.Letavec says. Those nonconformance cost items are managed in a common tool and loadedFilling in the gaps into the lessons-learned database. Now allOver in its industrial automation division, project team members in the division canSiemens launched a PMO in 2008 to deliver review the database, see if they are dealingthree benefits: with a similar situation and receive help inn Improved customer satisfaction determining whether a solution is the right >n Managed growth of profit margins fit. They can also make clear to custom-n Standardized processes for reliable proj- ers exactly what the technology can do for ect delivery them—all before an agreement is signed. By The PMO started with a staff of one full- tracking similar projects before and aftertime employee and one half-time, as well as the new processes were implemented, Mr. Despite limitedteam members in each business unit withinthe division. That lean operation oversaw a Clark’s team can show reductions of these kinds of problems, which ties directly to resources, inrange of projects, from small US$100,000equipment installations to US$100 million improved profit margins. “The good news is that we hear fewer the first 18multi-year custom plant operation systems. and fewer of these stories,” Mr. Clark says. months, projects Despite limited resources, in the first 18 “We’ve seen a steady reduction of noncon-months, projects supervised by the PMO formance costs, improved reliability and supervised bymeasured a 6.5 percent improvement ingross margins. improved project delivery thanks to better communication and process improvements.” an industrial “That translated to a nine-to-one return automationon the improvement program to create spreading the Wordthe PMO,” says Mr. McDevitt, who acts Mr. Clark’s PMO went through its two-year PMO measuredas a coordinator and mentor over the U.S.network of PMOs at Siemens. Ongoing renewal in 2010, and the charter remains the same going forward. a 6.5 percentmeasures show that the industrial automa- “Our vision is benefits-based, but we are improvementtion division has maintained an average of continually looking for ways to refine our5 percent improvement on 2008 project processes as we achieve greater project in grossmargin baselines for the last 12 quarters. The improvements came through sys- management maturity,” he says. And at Siemens, benefits realization is the margins.tematically identifying gaps in the project driving principle for each and every one of itsplanning, delivery and risk-assessment pro- PMOs. “Without delivering tangible demon-cesses that led to problems and noncon- strable return on investment,” Mr. Clark says,formance costs down the line, says Steve “you aren’t doing what you need to do toClark, the Norcross, Georgia, USA-based achieve success.” —Sarah Fister Gale august 2011 PM NETWORK 43
  • 44. stayingPOWER by Manuela S. Zoninsein * photos by Jonathan Danker/PixSync PhotographyA Finnish company branches out to Singapore and discoversa high-level talent pool to fast-track a biodieselrefinery megaproject. Petri Jokinen, Neste Oil, Singapore
  • 45. F For the city-state of Singapore, innova- free of any local opposition to the plant, tion and enterprise are key components “so the process went smoothly,” he of national government policy. From says. The project team broke ground in enticing the Fédération Internationale March 2008 at a greenfield site in Tuas, de l’Automobile to set up its first night- an undeveloped part of the island. time Formula 1 racecourse along its shores to embracing foreign venture Creating a Clean Fuel start-ups, the island nation welcomes To reach the plant’s desired capac- top-notch know-how from all over the ity of 800 million kilograms (881,849 globe. It has also demonstrated a com- tons) of renewable diesel per year, the mitment to environmentally sustain- organization relied upon its proprietary able technology, including clean water and newly developed NExBTL (next- projects, LED (light-emitting diode) generation biomass-to-liquid) process lighting experimentation and solar cell technology. The plant converts a variety production facilities. of renewable feedstocks, in particular These factors, combined with the vegetable oils and waste animal fats, fact that Singapore is a major oil refin- into renewable diesel. Because it essen- ing center, put the nation on Neste Oil’s tially creates a sulfur- and aromatics- radar when the Finnish refining and free fuel, it’s one of the cleanest diesels marketing company looked to expand in existence. 4,800 At its peak, its renewable fuels business abroad. “The government played an impor- tant role in promoting our investment,” says Matti Lievonen, president and CEO The first part of the project was aimed at perfecting the NExBTL process—making certain that it met stringent demands of each particular the number of of Neste Oil, Espoo, Finland. “Singapore market in which the company operates has fulfilled all our expectations.” or plans to operate.construction team The €550 million megaproject’s “The biofuels legislation is frag-members working plan consisted of designing and con- mented at the moment in Europe, as on the project, structing a renewable diesel production it is around the world,” Mr. Jokinen plant, including a process plant, a utili- explains. hailing from 13 ties system, a tank farm, an operations The company needed to address countries center, and maintenance and adminis- two main categories: greenhouse gas tration buildings. reductions and feedstock sustainability 13.8 Internal studies for the project began requirements. “Both of these have been in 2006, and by November 2007, the confirmed by performing life cycle cal- company’s board of directors greenlit culations according to methodologies million the investment. required by regulators,” Mr. Jokinen says. One of the project’s first steps was In addition, NExBTL technology to partner with a local governmental development focused on product qual- The total hours agency. Neste Oil worked closely with ity and feedstock flexibility—two fac- the Singapore Economic Development tors that differentiate it from other fuel spent on the Board (EDB), which helps companies production.construction portion establish operations domestically. The biodiesel is produced by of the project “This cooperation provided excel- hydrotreating vegetable or waste oils lent support for us in finding a suitable by removing sulfur. The end result is plant location, all permitting activi- a product the company says combusts ties, recruitment and training of local efficiently, keeps engines clean and personnel,” says Petri Jokinen, manag- reduces greenhouse gas emissions by 40 ing director of Neste Oil’s Singapore to 80 percent. It can be used in modern subsidiary. diesel engines without modification, The EDB, for example, helped the works in airplanes and is available to be company find a suitable plot of land used as part of a fuel blend.46 PM NETWORK august 2011 WWW.PMI.ORG
  • 46. In January, the refinery received While the process technology isInternational Sustainability & Carbon the same, there were differences in itsCertification, confirming that the plant implementation. The project team hadmeets the sustainability criteria of the to adapt to a whole new set of chal- 2006European Union’s Renewable Energy lenges, including a different business Research phaseDirective and the product is suitable for culture and new regulations, legisla-meeting Germany’s bio-content man- tion and governance. Permitting for the initiateddates. Given that Europe is a key mar- facility in Singapore required nominat-ket for the company, and that Germany ing various independent professional november 2007in particular is a major consumer of engineers who had to perform reviews Project greenlit bybiofuel, Neste Oil focused on attaining of the structural designs and conduct board of directorsthis certification. verifications during the construction phase. Though this requirement neces-same same but Different sitated additional quality-control steps, march 2008Neste Oil already operates two renew- it “also helped assure that the construc- Construction startedable diesel plants that came on stream in tion conforms to the design require-Porvoo, Finland in 2007 and 2009. But ments,” Mr. Jokinen says. november 2010launching a project in a new part of the Additionally, the entire project hadworld required significant groundwork to be accomplished within a tight three- Operations beganto develop contact with local authorities, year schedule. Neste Oil managementtalent and partner organizations. had put in place an aggressive growth “The two Finland plants were our strategy for increasing productionfirst commercial NExBTL plants, so of capacity of NExBTL renewable diesel.course there was a lot of learning,” he “We knew there would be somesays. Those lessons proved vital when modifications during execution but stillthe project team drafted its plan, espe- had to be able to run it as a fast-trackcially concerning process equipment project,” Mr. Jokinen says. “Traditionaland plant operations requirements. approaches to project management The previous experience didn’t trans- with well-defined periods for all stepslate 100 percent to the Asian initiative, couldn’t be followed strictly.”though. So Neste Oil established key criteria “Some solutions in the earlier plants and relied heavily on a skilled projectwere not repeated in the same way in the team, most of whom had been involvedlarger, scaled-up facility,” Mr. Jokinen says. in the previous two refinery projects. august 2011 PM NETWORK 47
  • 47. AddING FuElTO ThE FIRE Project team members “had In Singapore, rather than worryingPrior to launching the refinery megapro- good access to detailed infor- about building up appropriate techno-ject in Singapore, Neste Oil had established mation about the technol- logical and managerial competencies,cooperative agreements with suppliers ogy and the kind of solutions “we were able to do hiring in a market-to source feedstocks for its home-base that are available,” as well as place where the right kind of personnelplants in Finland. those elements to be avoided, exists,” Mr. Jokinen says. On the new, larger initiative, the com- Mr. Jokinen says. This was “The talent pool in Singapore ispany had to expand that operation, and accomplished through the absolutely first-class,” Mr. Lievonenfurther develop the sustainability practices establishment of a process agrees.to meet the most stringent regulatory licensor team that providedrequirements. all required support and back- Forward Motion That process was all the more impor- ground information for the The project team addressed safety withtant because the cultivation practices of technical and project manage- execution design reviews of the plant’spalm oil, one of the main ingredients in ment team during design, con- hazards and operability. Safety require-NExBTl creation, have caused contro- struction, commissioning and ments were included in contracts, andversy among environmentalists worldwide. facility start-up. contractors received specialized train-The vast majority of the world’s palm oil ing. A behavior-based safety system wascomes from Southeast Asia—but the same singapore’s got also implemented, covering all safetylowland forests that provide palm oil for talent concerns and procedures that couldproduction are the only remaining orang- While Neste Oil owns the arise, with the goal of decreasing theutan habitat. process technology, it sought number of work-related injuries. Those Managing this outspoken group of a contractor for developing an results were discussed monthly bystakeholders has been eased by the cre- engineering package. senior management, and all recordableation of the Roundtable on Sustainable The organization sent out safety incidents were investigated for-Palm Oil, a not-for-profit organization with an RFP (request for proposal), mally. Technip and other contractorsthe objective to develop and implement and following a competitive were then required to propose actionsglobal standards for sustainable palm oil. bidding process, the Italian to rectify problems. Now, Indonesia, as the world’s largest company Technip was chosen IT systems needed during the con-palm oil producer, is becoming a bench- as the EPCM (engineering, struction phase fell under Technip’smark for emerging markets to adopt sus- procurement and construction domain. Neste Oil ran a parallel sub-tainable practices, with new regulatory and management) contractor. project to define and implement alllegal certifications passing into protocol. As for operations and telecommunications, IT network infra- maintenance, Neste Oil’s proj- structure and business applications ect leaders chose to recruit according to the organization’s corpo- and build that team using Singapore rate practices. residents. Technip also dipped into the The construction team discovered local talent pool for its construction that different methods had to be used contractors. compared to projects in Europe, for A skilled worker base cemented example. Much less pre-cast concrete Neste Oil’s decision to build up a structures were used, while more activi- permanent division in Singapore, Mr. ties were performed with manual labor. Jokinen says. “As the country has a Construction completed on sched- significant amount of oil refining ule and on budget last year, and com- and petrochemical industry, there are mercial operations began in November. already a lot of professionals with the Today, the Tuas refinery produces right type of education and industrial 1 billion liters (2 trillion gallons) of experience,” he explains. “In other diesel fuel per annum. places in the world, not having that Next up for the company is a similar- kind of established industry in place sized facility in Rotterdam, Netherlands would mean the company would have as well as a change in the variety of to invest much more in training per- feedstocks used in the biodiesel creation sonnel.” process. PM48 PM NETWORK august 2011 WWW.PMI.ORG
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  • 49. bo50 PM NETWORK august 2011 WWW.PMI.ORG
  • 50. Benefits realization and business casesall add up to increased profits.osting by SaNdRa a. SWaNSON the bottom line i n tough economic times—and the world has seen “As a project management office (PMO) director, I its fair share of late—many organizations’ knee-jerk had little exposure to the profitability of projects once reaction to maintaining profits is to cut under- they were completed and handed over to a receiving performing projects (and the teams running them). organization,” says Yvan Petit, PMP, associate professor But that’s hardly the only path to profitability. in the management and technology department of the “It’s just as important to define the right proj- Université du Québec à Montréal, Montreal, Quebec, ects based on a holistic vision as it is to kill projects Canada. The focus, he says, was primarily on keeping that don’t demonstrate measurable value,” says Jen L. the project cost within the approved budget. Skrabak, PMP, Los Angeles, California, USA-based The best way to ensure the highest profitability committee chair to update The Standard for Portfolio of portfolios is through the decision-making process, Management. She’s also the director of operational excel- says Steven Romero, PMP, IT governance and port- lence at the healthcare company WellPoint. folio project management evangelist at the software Although profitability is a highly desirable outcome, company CA Technologies in San Francisco, Califor- it represents a complicated issue for project professionals. nia, USA. august 2011 PM NETWORK 51
  • 51. “CFOs are there to Innovation projects are some of the most profitable, but they can also carry oversight. The best committees assign one of their members or another high-stop money from the most risk. In the midst of economic ranking executive as the “value moni- turmoil, organizations tend to be wary tor” of the project, Mr. Romero says.being spent. Per- of these initiatives. But by using metrics “While the effort is underway, this to build a compelling business case, executive is responsible for workingsuade them other- project decision-makers can convince with the portfolio manager and PMO finance managers that the benefits out- director to ensure the project is onwise by speaking weigh the risks. track to deliver value.”their language at Most steering committee and invest- ment governance committees do a The leadership team should con- tinue to monitor results, includingthe end of each decent job of vetting projects and pro- post-implementation one year later—or grams best aligned with enterprise strat- even two to three years later—becauseproject phase. egy, Mr. Romero attests—but they fail that’s how long it may take to deter- to pose other critical questions: mine whether the project was profit-Demonstrable mile- n Can we? Does the organization have able, he says. the time, money, resources and moti- “This benefits realization is rare,stones are key.” vation to undertake an innovative, and neglecting it contributes greatly—Matt Rawson, Practicus, Henley-on- potentially profitable initiative? to enterprise inability to monitorThames, Oxfordshire, England n Are we? Is the project on track to previous investment decisions,” Mr. deliver the profit that prompted its Romero says. As a result, those organi- approval in the first place—or are zations miss the opportunity to learn potential benefits eroding? from past projects and improve deci- n Did we? Did the project lead to the sion-making. “This is a great way to envisioned profitability? ensure the profitability of innovation Executives must use portfolio man- efforts,” he says. agement processes to conduct ben- efits realization—and not just after the Case of the the fact. To some degree, this should Multiplying Margins be achieved through project execution Organizations that want their project A TIME fOR PEAcE At many organizations, project man- friction between the two groups is To help strengthen that working agers regularly clash with the finance often due to their differing perceptions relationship, project and program department. Is there a way to improve of time, says Yvan Petit, PMP, Univer- managers should learn to speak the that rocky relationship so the two sité du Québec à Montréal, Montreal, finance department’s language when groups can work together with more Quebec, canada. Project managers proposing projects. Knowing how to harmony and less head-butting? think of a project as an endeavor with calculate ROI, net present value, pay- Project managers and financial a start date and end date. financial back and internal rate of return will do managers see the world very differ- departments tend to conceive of time more than determine the right finan- ently, says clive Enoch, PhD, PMP, as being cyclical, with yearly budgets cial calculations to support the busi- Standard Bank, Johannesburg, South and reporting periods. ness case and obtain funding, says Africa. “One is focused on execution “In their dialogue with the project Jen L. Skrabak, PMP, WellPoint, Los and the other is focused on assess- manager, finance departments are Angeles, california, USA: “It will help ing performance retrospectively. As a likely to require forecasts for each design the right approach and value result, the one will always believe that calendar year,” he says. “Such infor- drivers to initiate the right project.” the other doesn’t know what they are mation is typically not relevant for the finance managers typically ask talking about,” he attests. project manager.” probing questions to determine the52 PM NETWORK august 2011 WWW.PMI.ORG
  • 52. portfolio to play a bigger role in driv- n Business cases were developed to ing profits should require their project obtain project approval and included managers to create robust, fact-based a timeline for benefits realization. business cases for all endeavors, sug- n After the business requirements gests Caroline Leies, managing director were finalized, a stage-gate decision at MorganFranklin, an IT consulting was made regarding how to proceed firm in Washington, D.C., USA. with the project. This required the “Many times projects only come business case to be updated and up with subjective or qualitative ben- approved before the initiative moved efits,” she says. It’s all too easy to focus into technical design and build. exclusively on timelines and risks, and n After implementation, benefits were forget about the numbers behind the tracked and reported to executives business decision. for eight quarters. >TIP “I have seen very positive rela- n The project manager and the project tionships with the finance depart- leads from business and IT had their ment when the project manager or bonus compensation tied to the real- Monitor PMO establishes, manages and tracks ization of the project benefits. the project and the business decision As the sponsor of a project to rede- projects from concept to throughout the project life cycle,” Ms. sign a provider portal, Ms. Skrabak cash, suggests Caroline Leies says. “ensured that the key project objec- Leies, Morganfranklin, Avoid the pitfall of rushing the tives were translatable into metrics planning phase. Organizations that that added the most project value, Washington, D.c., USA. force the creation of a business case and ones that we can book hard sav- “Benefits realization after before the true scope and level of ings for.” effort for the initiative are known end the project is completed up with meaningless numbers. seemingly small is not only a program In her experience, the PMOs that mistakes Cost Big management best prac- played an important role in increasing Although finance managers and project profits have adhered to the following managers have different perspectives tice but also establishes a processes: (and pressures) within an organization, culture of accountability.”hard benefits the organization can requiring them to justify them,” he from being spent,” he says. “Per-book savings against, she adds. That says. “in addition, it frees up the suade them otherwise by speakingmeans project managers should be project manager’s time to manage their language at the end of eacharmed with background informa- the people on the project rather than project phase. Demonstrable mile-tion and prepared to substantiate all build a series of reports, and fosters stones are key.”assumptions about a project. a cooperative relationship between The way data are conveyed is When significant financial report- the project team and finance.” just as vital, Mr. Rawson empha-ing is required, the best option is to Above all, try to get the chief sizes. “The project manager has toallocate a representative with the financial officer on your side, get out from behind the computerappropriate expertise and charge his advises Matt Rawson, director and remember that communicationor her time to the project, says Todd of program, project and change cannot take place via spreadsheet,”Williams, president of ecameron management at Practicus, a Hen- he says. “Project managers mustinc., a project audit and turnaround ley-on-Thames, Oxfordshire, Eng- engage with financial staff, andcompany in camas, Washington, land-based consulting firm focused understand what data and informa-USA. “This allows executives to see on change management. “Remem- tion they need, in what format andthe actual cost of these functions, ber, cfOs are there to stop money by when.” august 2011 PM NETWORK 53
  • 53. they do share overarching goals when for a project to be done or redone, the it comes to the organization’s health. more expensive it becomes. If com-ThE “FOuR Cs” OF To increase profit and productivity, pleted on or ahead of schedule, there both disciplines must start by estab- can be significant dollars saved, whichCOMMuNICaTION lishing clear strategies and objectives, hits the bottom line.”When approaching the finance depart- says Clive Enoch, PhD, PMP, head of Her team members use a web-basedment about projects, Jen L. Skrabak, the enterprise portfolio management project management tool to see allPMP, WellPoint, Los angeles, Califor- office at Standard Bank, Johannesburg, project-related communications andnia, uSa, suggests that you ensure South Africa. updates in real time, as well as the statusyour business case is: “Without this, any initiatives run in of open tasks and milestones. Clear. The project scope and the organization will be misdirected,” But when one individual recentlyapproach should be in layman’s terms, he says. “Even if the organization does bypassed the system, the results werewithout acronyms and technical terms increase profit, it will not be as much costly. A server migration projectthat may be unfamiliar to your audi- as it could have been if the initiatives brought together programming teamsence. were strategically aligned and the strat- from three time zones. In the interest Concise. Prepare an elevator egy was clearly directed toward increas- of saving time, a team member emailedspeech on the what, when, where, why ing profit.” instructions and updates directly,and how of the project. Due to the recent credit crunch, his rather than using the project manage- Concrete. Make your case based organization has had to consider its ment software.on facts and data, not guesses and strategy carefully, and make a concerted “As a critical piece of info was nottheories. effort through the definition of its communicated to the entire team, we Compelling. The ROI should speak strategic objectives to reduce cost and missed our window to migrate onefor itself. increase productivity. of our relay servers,” Ms. Keller says. Project management practitioners “This resulted in us having to extend can help contribute to the bottom line our contract for another month on by finding ways to improve efficiency. one of our servers, and it proved to be “Time is money,” says Denise Keller, an expensive bypass. The workaround COO and founding partner of Bench- ended up costing us an additional mark Email, a small-business email US$10,000.” marketing company in Los Alamitos, Another common mistake organiza- California, USA. “The longer it takes tions make is being too rigid. “The portfolio should not be expected to remain static, but should EaSIER SaId ThaN dONE be modified when changes occur,” Mr. Petit says. “It could actually be a good “Benefits realization management is an elusive ideal that I’ve never seen thing to stop projects if this means completely successfully applied,” says Calum Roberston in the PMI Pro- doing the right projects at a given point gram Management Office Community of Practice: in time.” The three main challenges I come across are: PMO directors must closely moni- 1. Governance. Who is responsible for realization of business benefits? tor a given program’s status so they The project manager? The project sponsor? The PMO? Of course it’s the can respond rapidly to requests for sponsor, but they often seek to avoid this accountability. new projects, he says. This requires 2. How do you manage realization of benefits? When a project “go live” constantly updated information on the has been achieved and the team disbanded, the spotlight moves to other comparison of resource needs versus projects. The project manager is usually redeployed to other projects and availability, for example, and the depen- no one is driving the benefits. dencies between projects. 3. How do you ensure benefits are delivered? The only way I have found Failure to do so can lead to authoriz- is to transfer expected business outcomes into the project sponsor’s personal ing more projects than the organization objectives. Failure to achieve benefits means no bonus. The added advantage can handle, Mr. Petit warns. is that it encourages greater reality when stating business case benefits. And mistakes like that can mean the >> Join the discussion at pmo.vc.pmi.org. difference between being in the black— or in the red. PM 54 PM NETWORK august 2011 WWW.PMI.ORG
  • 54. Team Spirit by Cindy WAxer Although people are unpredictable, with the right training, team members will embrace collaboration.
  • 55. W orld-class project managers prepared. They get upset and often take can deploy sophisticated strat- an adversarial approach. Conversations egies, organize scarce resources to deal with the problem tend to go and excel under tight deadlines. badly. But possessing the right skills One useful tool is reality testing. doesn’t mean much if they can’t This is often used by mediators to get build a cohesive team. team members to question and chal- “A project manager isn’t just lenge their perception of the problem or there to run a Gantt chart,” says the position they are taking. Training in Gary Furlong, partner at Agree Dis- this technique helps people adjust their pute Resolution, a consulting firm in position and become more flexible. Dundas, Ontario, Canada. “As a project “Some training in questioning skills manager, you must get things done that engage people in problem solving, through other people. That’s the defini- along with effective listening and real- tion of the role.” ity testing can minimize the adversarial However, galvanizing the troops approach and keep everyone workingThe group is often requires a project manager to act simul- together,” he adds.able to identify for taneously as army sergeant and amateur psychologist—a no-nonsense leader Lesson Two: Brainstormitself behaviors that with an iron fist and a silver tongue. behaviors.assisted conflict reso- Failure to create collaborative teams can have a disastrous impact on a work Group brainstorming sessions can explore the kinds of behavior that helplution, such as force’s morale and an organization’s bot- team members achieve greater col- tom line. laboration.listening to others, “There are four costs of conflict: In workshops, Mr. Denny has proj-not talking over time, energy, money and reputation,” ect managers and team members iden- says Neil Denny, author of Conversa- tify obstacles or challenges they arepeople, not rushing tional Riffs: Creating Meaning out of facing. Next, he forms mixed teams thatto conclusions and Conflict [Sunmakers, 2010]. “When we encounter conflict in organizations, we select one challenge and discuss it for 10 minutes.asking questions. expend massive resources under all of “When it comes to the debrief, the these headings, which leads to incom- group is asked questions such as, ‘How—Neil Denny, The Wilsher Group, petent teamwork.” did you approach and debate the issue?’Monkton Combe, Bath, Avon, England rather than concentrating on the specific Class Is In sessIon issue itself. This focuses on the ‘meta- To prevent such losses, project manag- conversation’ or ‘how we talk about what ers who undergo training can become we are talking about,’” he explains. true leaders, capable of clearing up As a result, “the group is often employee misunderstandings, more able to identify for itself behaviors effectively handling difficult team that assisted conflict resolution, such members, negotiating sensitive issues, as listening to others, not talking over assigning responsibilities and holding people, not rushing to conclusions or people accountable. solutions and asking questions,” says Mr. Denny, who also serves as an associ- Lesson One: Start with ate at the training and coaching consul- communication skills. tancy The Wilsher Group in Monkton “Typically, team members are so wor- Combe, Bath, Avon, England. ried about staying positive that they Training can go one step further to avoid difficult or crucial conversations,” “align and harmonize everyone’s expec- Mr. Furlong says. tations with a team-developed set of When something unpleasant rears team values or ground rules,” Mr. Fur- its head, many team members aren’t long says.58 PM NETWORK august 2011 WWW.PMI.ORG
  • 56. By doing so, project managers can warns Tammy Lenski, Ed.D., founderget their team members “on the same and principal of the conflict resolutionpage and define what everyone means consultancy Tammy Lenski LLC inby respectful behavior, as well as a clear Peterborough, New Hampshire, USA.process for how issues will be resolved,” “It requires the right amount of spacehe adds. for people to make mistakes and for the organization to beLesson Three: Break out the forgiving of those mistakes.”board games.Lessons on effective listening and group Mr. Denny goes so far as to suggest that some friction is ThE PROjEcTbrainstorming sessions often get tense. better than none in the work- MaNagER iN ThEProject professionals can lighten themood by employing some fun-filled place. “We need to give permis- sion for conflict to be spoken MiRRORtechniques to convey similar messages. about so that team members it can be a bitter pill to swallow, but “There’s a wide range of off-the-shelf can provide honest feedback,” sometimes project managers them-games available that concentrate on he states. selves are inadvertently contributing tocooperation and cooperative behaviors,” And that’s where a trainer, the friction between feuding teammates.Mr. Denny says. mediator or third-party facilita- “Project managers have to learn how A particular favorite of his is Pan- tor comes in handy. In addition to manage their own emotions and reac-demic by Z-Man Games, which has to training project managers tions to be able to best help others ineasy-to-grasp rules in which team mem- how to foster collaboration, tense moments,” says Tammy Lenski,bers work together to save the human consultants can also create Ed.D., Tammy Lenski LLc, Peterborough,race from deadly diseases. a safe place for project team New hampshire, USa. “They have to be To make the most of board games, members to air grievances. able to maintain their own balance in“leave teams to read through the rules “I don’t want to imply order to help others.”themselves,” Mr. Denny suggests. “Even that mediators don’t have Some project professionals arethen there’s the need for teams to col- their own baggage,” Dr. Len- scheduling masters or agile whizzes—laborate when deciding who is going ski says. “But mediators don’t but just don’t have the knack for under-to read and explain the rules. See who have baggage associated with standing team dynamics.takes the lead. How are queries dealt your particular problem or the Most people can develop team-with and resolved? How does the team people involved—a key factor building competencies with the rightcommit to learning together?” in why mediation can be so training, though, attests Shoshana Faire, useful. They bring a fresh set of Professional Facilitators international,It’s gonna get Messy ears and eyes. Plus, skilled orga- Sydney, australia. “You can learn theCollaboration training should “focus nizational mediators understand skills for emotional intelligence,” she says.on the relationship-building and effective- how the human brain works That’s provided, of course, you havecommunication part of what it takes to and how conflict is caused in patience, an eagerness to be trained—get people working together effectively,” systems.” and a willingness to step outside yoursays Shoshana Faire, director of Pro- An outside perspective comfort zone.fessional Facilitators International, a could be just what’s needed toconflict resolution consultancy and smooth tensions.coaching firm in Sydney, Australia. “When people begin shut-She’s also coauthor of Everyone Can ting off from each other and it gets aWin: How to Resolve Conflict, now in bit too emotional, a mediator can getits second edition [Simon & Schus- a conversation happening between twoter, 2006]. people,” Ms. Faire says. Project managers shouldn’t view Project managers can have the meth-team-building training as a panacea, odologies down pat, but without athough—or assume that because they’ve cohesive team, a project won’t meet itsparticipated in a group session that goals. Team-building training can helpteamwork will come easily. manage the always-complicated people In fact, “collaboration is messy,” side of projects. PM august 2011 PM NETWORK 59
  • 57. >>>SPECIAl ADvErTISInG SECTIOn M.s. in Project Management online Working professionals choose academic quality and convenience. I It’s perfect for busy n today’s competitive project management world, having high-quality credentials from a top-ranked university like Drexel University gives professionals an edge. After all, Drexel is professionals who repeatedly ranked among “America’s Best Colleges” by U.S.News & World Report. But who has time to go back to school? want to get ahead without interrupting Thankfully, Drexel University Online has it all fig- ured out. Offered 100 percent online, Drexel’s cutting- edge master of science degree in project manage- ment can be completed in just two years without their careers. stepping foot on campus. This 45-credit, part-time program teaches students the business, commu- nication, global and leadership skills they need to manage projects, programs and portfolios in a and design. This is a far-reaching degree that offers demanding project-driven environment. It’s perfect a lot of career value. for busy professionals who want to get ahead with- When it comes to academic excellence, out interrupting their careers. Drexel is certainly a leader. Founded in 1891 in Giving graduates an even further advantage, Philadelphia, Pennsylvania, USA, Drexel is one of the Drexel program’s curriculum is aligned with the nation’s top institutions of higher education. PMI’s internationally recognized A Guide to the In fact, it’s one of the largest and most prominent Project Management Body of Knowledge (PMBOK® private, not-for-profit universities in the United Guide) and is designed to support the completion States. And this quality is carried through to its of the Project Management Professional (PMP®) online offerings, as all of Drexel Online’s pro- certification. grams offer the same excellent curriculum, highly Even if students haven’t homed in on a specific regarded credentials and outstanding faculty as its industry, Drexel Online’s M.S. in project manage- on-campus programs. ment still offers a powerful career boost. That’s To find out more about Drexel University because project management competency can be Online’s M.S. in project management degree, applied to a variety of fields, including defense visit us online at www.drexelproject.com or call contracting, engineering, financial services, gov- 1-877-215-0009. Applications are now being ernment, IT/software development, and media arts accepted for the fall 2011 term. Drexel University Online +1-877-215-0009 www.drexelproject.com 60 | AUGUST 2011 | EDUCATIOn & TrAInInG | WWW.PMI.OrG
  • 58. >>>SPECIAL AdvERTISInG SECTIOn Beyond pMp® certification The University of Maryland’s Clark School offers one of a handful of programs accredited by the PMI Global Accreditation Center for Project Management Education Programs within an engineering school. H ow can professionals in project manage- nThe Clark School faculty. ment set themselves apart from the crowd? 3. The program has a continuous improvement Their ranks are growing rapidly, and their abil- mechanism built into routine operating procedures. ity to outlearn the competition is probably the only 4. The student population is from around the sustainable advantage. They need to become masters world. Their diverse educations, backgrounds and of project management knowledge. The A. James Clark experiences contribute in a meaningful way to the School of Engineering’s project management program classroom discussions and team projects. offers technical professionals the chance to gain that 5. The faculty brings extensive real-world experi- knowledge from anywhere in the world. ence to the classes and is devoted to teaching It was the sixth program worldwide accredited excellence, working with students and the pursuit by PMI’s Global Accreditation Center. The program of knowledge through research. is also designated by PMI as a Global Registered Education Provider, and in 2004 it became a online Master’s in project ManageMent founding member of the International Project The professional master of engineering in project Management Educational Union. management is available online. It is a practice- The project management program at the oriented, part-time graduate program designed to University of Maryland in College Park, Maryland, assist engineers and technical professionals in their USA offers courses on campus and online, and career development and to provide the expertise strives to differentiate itself from other graduate needed in the rapidly changing business, govern- programs in project management. ment and industrial environments. 1. The program is designed by and for engineers, Students in the program have the opportunity architects and other technical professionals. to enhance their knowledge in their discipline and, It resides in the Clark School of Engineering, in some cases, launch a new career path. while most other project management programs The online program uses digital technology to are in business schools or continuing education capture classes on campus and make them available programs. online. In addition, weekly teleconferences provide 2. The program was designed in response to sig- live interaction between students and professors. nificant input from customers. The school also evaluated: core courses n Other graduate-level programs n Introduction to project management n A Guide to the Project Management Body of n Management of project teams Knowledge (PMBOK® Guide) n Project cost accounting and finance n Literature reviews n Project performance measurement n Input from practicing professional project n Legal aspects of engineering design managers and construction University of Maryland, A. James Clark School of Engineering +1-301-405-0362 www.oaee.umd.edu/go-beyond.html 62 | AUGUST 2011 | EdUCATIOn & TRAInInG | www.PMI.ORG
  • 59. >>>SpEcIAl AdvErTISIng SEcTIOn applying training in the Workplace An ESI study provides insight on how to turn hope into reality. W hile organizations may take the time more responsibility.” Many indicate no rewards or to prepare for, attend and even measure negative consequences as the “motivation.” Might the impact of training, many struggle these incentives be out of line with today’s work to ensure newly learned skills and knowledge are force? Organizations may have to reexamine their applied on the job. Why? They are missing the fun- strategies for motivating an evolving work force. damentals: an overall adoption plan, a strategy for reinforcing the application of learning post-training, ConClusion 2: manager engagement is a clear way to measure learning application, and CritiCal manager involvement pre- and post-learning. Securing manager support was the second-most According to ESI research, organizations start important strategy in the transfer of learning—but out “hopeful” that they are fully committed and managers must do more than simply endorse the engaged in the transfer of learning. But upon further program. Managers must be expected to have con- questioning, ESI found that hope and reality are two crete responsibilities and provide tactical support very different things. every step of the way, including developing a plan for learning transfer, holding formal pre- and post- esi 2011 global survey highlights: training discussions, and ensuring reinforcement. n three strategies identified as most important in the transfer of learning: Trainees have the time, ConClusion 3: a Formal, proven proCess resources and responsibility to apply learning; is laCking For transFer oF learning their managers offer support; and the instruction While many say they have a systematic approach for approach simulates the actual work environment. ensuring learning is applied on the job, this assess- n One-third of respondents do not have a formal pro- ment is often highly anecdotal or “simply a guess.” cess/system for ensuring that training is applied Organizations must formally assess, evaluate and successfully within the organization. although report on trainees’ success at applying learning to two-thirds indicate that they do have a formal the workplace. process, subsequent answers cast doubt on that figure. ConClusion 4: post-training n For those who indicated they have a formal reinForCement is leveraging neW process for learning, 60 percent say the primary soCial, inFormal Communities method for proving or measuring this estimate Organizations are leveraging an expanding array of of learning transfer is either informal/anecdotal tactics to recall trained knowledge and increasing feedback or “simply a guess.” These self-contra- their use of “just-in-time” tools for its on the job dictory responses call into question their certitude application, including more flexible, community- about having a formal learning transfer system and based support such as communities of practice, peer its success rate. coaching and social networks. ConClusion 1: employees need to be For a full copy of the research report, visit www.esi- motivated the right Way intl.com/learningtransfer. Survey responses downplay the role of financial To learn how ESI can help your organization incentives to motivate employees’ learning adoption, ensure learned skills are applied on the job, call +1 noting the greatest incentive is the “possibility of (877) 766-3337. ESI International +1-877-766-3337 www.esi-intl.com/learningtransfer 64 | AuguST 2011 | EducATIOn & TrAInIng | WWW.pMI.Org
  • 60. Discover ESI in Booth #707 at PMI® Global Congress 2011 – North America of driving project results that accelerate your career. When economic patterns change, so do the expectations for project leaders. Prepare yourself for these new realities with ESI’s learning programs. From gathering better requirements, to solid risk analysis to increasing your cross-functional capabilities, ESI provides the assessments, online resources and instructor expertise you need for your projects— and career—to thrive. Discover how ESI’s learning solutions can drive www.esi-intl.com your performance forward. Learn more today atesi-info@esi-intl.com www.esi-intl.com/career. +1 (703) 558-3000 Americas +44 (0)20 7017 7100 EMEA +65 6505 2040 APAC +91 80 41141344 India
  • 61. HELPDESK by Kelley Hunsberger>>StrEamingStatuSWhen software meets social media, the result is activitystreams with real-time updates and user-friendly interfaces.No doubt about it: We live in a Facebook world. Social media channels, largeand small, have revolutionized communication—changing the way we connect with oth-ers and transforming the very way organizations do business. Project professionals are no exception, of course. So vendors are now incorporatingFacebook-like activity streams into their project management software. If you’re looking for ways to make your project management more social, here arefour tools tapping into the trend:1 LiquidPLanner 3.0: The latest version of this web-based project management tool adds social activ- ity streams to its existing tracking, reporting, organizing and scheduling features. Users can collaborate in real time with features such as @replies, comment streams, “watched” items and change notifications. The main workspace for each project has a Facebook feel to it. www.liquidplanner.com 3 Wrike: This online project management tool added activity streams to its list of features last year. The stream is similar to a Twitter feed and can only be seen by a select group of users. When a team member finishes a task or makes an update, it automatically shows in the stream. The software also integrates with outside tools such as RSS feeds, Microsoft Outlook and Google Docs.2 www.wrike.com 4 sPrintr: Mendix, the company behind Sprintr, bills it as a lightweight tool “that’s sort of Facebook meets Microsoft Project.” Recently introduced in beta, this col- goPLan: Activity streams started showing up in laboration software is designed for Agile teams, with the this online project management software more than name stemming from the short sprints of development two years ago. The feature replaced the software’s work. The home page is a general activity stream—each real-time chat functionality, which some people project gets its own equivalent of a Facebook wall. Users found obtrusive. Users can check a teammate’s sta- can also create project “stories,” which their collaborators tus by visiting the update page and can revise their can then comment on. own status by using the form at the top of each page. www.sprintr.com www.goplanapp.com66 PM neTWOrK august 2011 WWW.PMI.Org
  • 62. PMP ®CertificationSETS YOU APART.Villanova’s Advanced Master CertificatesKeep You There.Maintain Your Edge While Satisfying Your PDUs Requirement – 100% Online!You’ve distinguished yourself as a Project Management from planning and tracking to evaluating risk management andProfessional (PMP®) with sought-after expertise in your field. minimization techniques. Plus, this comprehensive contentBut with career success comes increased demands on your is conveniently delivered via state-of-the-art technology thattime. Thanks to Villanova University’s convenient 100% online efficiently helps you reach your goals:certificate programs, you can seamlessly maintain your PMP®certification without interfering with your work responsibilities. • Video-based eLearning lets you “attend class” at the office, at home or wherever it’s most convenient.Villanova’s advanced project management programs are the ideal • Virtual classroom tools include two-way voice over IP instant ,way to expand your knowledge, satisfy your PDUs requirement message and shared whiteboards for maximum interactionand acquire an updated credential from the university ranked #1 with classmates and faculty.for nearly two decades by U.S. News & World Report*.Whether you choose the Advanced Master Certificate inIS/IT Project Management or the Advanced Master Certificate in START EARNING YOUR PDUs AND SAVE 15%Applied Project Management, you will gain cutting-edge project CLASSES FILL QUICKLY!management strategies that you can implement immediately, 866-301-6682 | VillanovaU.com/PDU*Villanova has been ranked by U.S. News & World Report as the #1 Regional University in the North for nearly two decades. PMP and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc. © 2011 All Rights Reserved. Made Available by University Alliance® – The Nation’s Leading Universities Online. SC: 197765zv1 | MCID: 10913 TRADITION. ACADEMIC EXCELLENCE. ONLINE CONVENIENCE.
  • 63. >>PMI eBooks >PROJECT MANAGEMENT INSTITUTE PROJECT MANAGEMENT INSTITUTE PROJECT MANAGEMENT INSTITUTEA Guide to the Project Management Body The Standard for Program The Standard for Portfolioof Knowledge (PMBOK® Guide)—Fourth Management—Second Edition Management—Second EditionEdition This document continues to recog- Continuing to recognize andThe PMBOK® Guide—Fourth Edition is nize good practices for managing guide practitioners on generallythe preeminent global standard for proj- multiple projects and programs recognized good practices in theect management. Like previous editions, successfully. With 14 new processes discipline of portfolio manage-it represents generally recognized good and nine new Knowledge Areas, ment, the latest edition featurespractices in the profession while reflecting including program financial man- two new Knowledge Areas: port-project management’s continually evolving agement, stakeholder management folio risk management and port-knowledge. and program governance, the The folio governance. This standard The PMBOK® Guide—Fourth Edition Standard for Program Manage- helps portfolio managers “do thecontinues the tradition of excellence in ment—Second Edition helps ensure right work” and raises awarenessproject management with: proper metrics are developed so of the opportunity costs through-■ Standard language throughout to aid organizations out the process and an increased reader understanding can success- focus on delivering results. PURCHASE FOR:■ Data flow diagrams that clarify inputs fully manage Sharpen your organization’s and outputs for each process large and com- focus on portfolio management■ Greater attention on how Knowledge plex programs. as it relates to program and Areas integrate in the context of initiat- project management. PMI’s The ing, planning, executing, monitoring and Standard for Portfolio Manage- controlling, and closing process groups ment—Second Edition will help■ Two new processes: identifying stake- you achieve PURCHASE FOR: holders and collecting requirements better project A strong project management foundation performance.is key to your success, PURCHASE FOR:so use PMI’s globalstandards to make sureyou get it right. 68 PM NETWORK AUGUST 2011 WWW.PMI.ORG
  • 64. Make project knowledge more accessible.Use reader apps to access PMI ebooks on your Mac, PC, smartphone or tablet.EDITED BY DAVID I. CLELAND, PhD, PMI FELLOW, AND BOPAYA BIDANDA, PhDProject Management Circa 2025What is the future of project manage- management, from the theorist to thement? What changes can you expect, and practitioner.how should you plan for growth? The 29 chapters examine the state of Drawing on the collective experience project management in a specific industryof project management leaders from or environment then forecast the expectedaround the world, Project Management technological, economic, social, politicalCirca 2025 develops and explores sce- and competitive character of the profession.narios for project management in the Get industry and geographic predic-year 2025. Editors David I. Cleland, tions. See how management systems andPhD, PMI Fellow, Bopaya Bidanda, processes may change. And learn howPhD, and 39 authors identify and eval- project management’s growth coulduate the likely future of project man- lead to new frontiers, such as sustain- PURCHASE FOR:agement, exploring key issues that will able manufacturing, climate control andaffect everyone involved with project nanotechnology.EDITED BY FRANK T. ANBARI, PhDQ&As for the PMBOK® Guide Fourth EditionThose who want to learn more about the ■ An answer section with reference pageprofession, as well as those who want to numbers and relevant quotations from thefine-tune their development skills, will find PMBOK® Guide—Fourth Edition to helpin this book: you enhance your breadth and depth of■ A straightforward question-and-answer knowledge in a specific area. format with 200 multiple-choice ques- Once you’ve read the PMBOK® Guide— tions covering key project management Fourth Edition, you’ll want to test yourself themes and concepts of the project man- with this useful complement. How much agement framework and the nine project do you really know about project manage- management Knowledge Areas in the ment? Whether you are a seasoned profes- PMBOK® Guide—Fourth Edition. sional, novice, student or instructor of■ Questions and answers derived from and project management, you should appreciate categorized by PMI’s bestselling global Q&As for the PMBOK® Guide Fourth Edi- standard, the PMBOK® Guide—Fourth tion for its rich content and ability to test PURCHASE FOR: Edition. your skills and knowledge. AUGUST 2011 PM NETWORK 69
  • 65. Invest in your career and sharpen your project management skills. Register now for PMI GLOBAL CONGRESS ® 2011 NORTH AMERICA 22-25 October 2011 | Gaylord Texan Resort and Convention Center | Dallas/Fort Worth, Texas, USA Join us for one day, two days or a Keynote speaker full multi-day program to: MALCOLM GLADWELL Make your professional development The best and most effective managers dollars count and earn PDUs are often said to be intuitive in Stand out to employers with the sense that newly gained knowledge from over they have the confidence to 150 educational sessions act on instinct. What is this instinct? And how can this Take back insights from notable intuition be developed? Author Malcolm Gladwell draws lessons from the world speakers of professional athletes, surgeons and musicians to understand the components Network with peers and industry of intuitive expertise and help decision leaders in a breathtaking location makers tap into that powerful resource. Register now and get the latest details at PMI.org/NA2011Reg For exhibit and sponsorship opportunities please visit PMI.org/Exhibit© 2011 P Project Management Institute, Inc. All rights reserved. “PMI” and the PMI logo are registered marks of Project Management Institute, Inc. te M st ag g PRA-322-2011 (6-2011) RA
  • 66. ServiceSDirectory In Project Management, We Cover It All! UMT’s 30 Project Management Suite courses cover everything from Project Management basics to more advanced and current topics like Iterative and Agile Project Management. All 30 UMT Project Management Suite courses are self-paced, Download the newest catalog at: 100% online and accessible 24x7. Also, they are a ordable. http://pmsuite.umtweb.edu. UMT can also o er these courses on-site at your organization. Email: training@umtweb.edu. Phone: 1-800-924-4883 | 703-516-0035. ® UMT, a PMI Global REP since 2000. PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc. www.umtweb.edu UMT_DoubleDOS_2.indd 1 5/20/11 9:50 AM advertiSerDirectory0062_PM_EDUCATE_GET_PDUs.indd 1 7/19/10 9:45 0096_AGU_EARN.indd 1 11/22/10 10:17:50 AM to receive free information about products or services advertised or listed in this issue, please contact advertisers via their web address below. page aDvertiser UrL page aDvertiser UrL 55 acumen ..................................................................................................................... Fuse360.com 2 PM Solutions ........................................................................................... www.pmsolutions.com 23, 71 american Graduate University .............................................................................www.agu.edu 49 PM Study ........................................................................................................www.pmstudy.com c2 daptiv ....................................................................................................................www.daptiv.com 70 Project Management institute .............................................................................. www.pmi.org 60-61 drexel University Online .................................................................................. www.drexel.com 7, 19 Project Management training institute ........................................................www.4PMti.com c4 embry riddle................................................................................................. Worldwide.erau.edu c3 rMc Project Management ..................................................................... www.rmcproject.com 64-65 eSi international ...............................................................................................www.esi-intl.com 71 University of Management and technology ..............................................www.umtweb.edu 17 Fog city consulting ........................................................................www.fogcityconsulting.com 62-63 University of Maryland ...................................................................................www.pm.umd.edu 4 iiL ...................................................................................................................................www.iil.com 67 villanova University Online.......................................................................villanovaU.com/PdU 71 PM educate ............................................................................................... www.pmeducate.com
  • 67. metr1csPMOs undEr PrEssurE thE PLaCEs tO BE The top five IT job markets in the United60% The portion of senior-level project profession- States, based on such factors as job openings, als who reported their project management industry growth and demand for talent: office’s (PMO) value has been questioned 1 houston, texas15% The portion who reported they track ROI and benefits realization 2 Washington, d.C. 3 Columbus, Ohio40% The portion who said their PMO is operating to a fair or poor extentSource: The Global State of the PMO: Its Value, Effectiveness and Role as the Hub of Training, ESI 4 detroit, Michigan 5 Philadelphia, Pennsylvania Source: Modis, May 2011International. Results based on a March 2011 global survey of 3,740 senior-level project and programmanagers across industries.saFE and sOund? “Less than 50 percentThe portion of government organizations in although there is continued pressure toEMEA (Europe, the Middle East and Africa) with reduce the costs of public administration …an official strategy in place to overcome informa- the risk of non-compliance with increasing regu-tion security threats lation and legislation as well as the risk of politi-29 percent cal embarrassment are sufficient to warrant ”The portion of respondents who ranked human ongoing investment [in information security].error as the top danger, followed closely byincreased proliferation and sophistication of threats —Jan Duffy, EMEA research director, IDC Government InsightsSource: Information Security in the Public Sector: Avoiding the Risk of Non-Compliance and Political Embarrassment, IDC Government Insights, June 2011FuturE FOCus 1 2 3 4 5The top five areas of focus for CIOs over the next three to five years: Internal InSIght and collaboratIon rISk management clIent IntImacy PeoPle SkIllSIntellIgence and communIcatIonSSource: The Essential CIO, IBM. Results based on a global study of 3,018 CIOs conducted between November 2010 and February 2011. 72 PM NETWORK august 2011 WWW.PMI.ORG
  • 68. Our New Products are Here. And You’re O cially Out of Excuses. PMP® Exam Prep, Seventh Edition—for the Updated Certification Exam PMP® Exam Prep, Seventh Edition—Study Guide Now in its Seventh Edition, this worldwide best-selling PMP® certification exam preparation book is a time-tested and proven study guide.This comprehensive resource includes 400+ practice exam questions, exercises, exclusive Tricks of the Trade® and a full chapter dedicated to making sure you pass the exam on your first attempt! PM FASTrack® Exam Simulation Software PM FASTrack® designed to prepare you for the PMP® certification exam in every way. Available as a CD or downloadable license, this program features a database of 1500+ practice exam questions, automatic question bank updates, exam reporting and archiving, and easy cross-referencing to the PMP® Exam Prep book. Why be surprised when you take the actual exam? Find your gaps before the exam finds them for you! Hot Topics Exam Flashcards—Flip Book or Audio CD Now you can study at the office, on a plane, or even in your car with RMCs portable and extremely valuable Hot Topics Exam Flashcards—in hard copy or audio CD format. Over 300 of the most important and difficult to recall exam-related terms and concepts are now available for study as you drive, fly, or take your lunch break. Order them both! The Complete PMP® Exam Prep System The PMP® Exam Prep System by Rita Mulcahy contains one each of three products—a PMP® Exam Prep textbook, a copy of PM FASTrack® Exam Simulation Software, and one copy of Hot Topics Flashcards (audio or flip book—your choice). Rita Mulcahy Order Directly from RMC at www.rmcproject.com Founder of RMC web: www.rmcproject.com RMC Project Management, Inc. 01011010 phone: 952.846.4484“PMP” is a registered mark of the Project Management Institute, Inc. email: info@rmcproject.com