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D john peter

  1. 1. Project Management National Conference 2011 PMI India Achieving Delivery Excellence D John Peter PMP Associate Director, Mind Tree Limited2|P a g e Application of Select Tools of Psychology for Effective Project Management
  2. 2. Project Management National Conference 2011 PMI India Contents 1.1 ABSTRACT....................................................................................................................4 2 KEYWORDS.....................................................................................................................5 3 EXCUTIVE SUMMARY..................................................................................................5 4 QUALITY JOURNEY .......................................................................................6 5 JOURNEY TO EXCELLENCE.........................................................................................8 6 CRITICAL SUCCESS FACTORS....................................................................................9 7 KEY METRICS & MEASUREMENT............................................................................11 8 WAY TO DELIVERY EXCELLENCE..........................................................................12 9 DELIVERY EXCELLENCE...........................................................................................13 10 CONCLUSION..............................................................................................................15 11 REFERENCE.................................................................................................................15 12 Author Profile.................................................................................................................183|P a g e Application of Select Tools of Psychology for Effective Project Management
  3. 3. Project Management National Conference 2011 PMI India 1.1 ABSTRACT ACHIEVING DELIVERY EXCELLENCE Practice leads to perfection and consistency brings stability. Perfection and consistency will ensure Quality. Will quality ensure Excellence? It is difficult to say ‘yes’ because quality means “Good” and excellence means “Extremely Good”. So Delivery Excellence means much more than Quality. Delivery Excellence is the keyword and a critical factor for achieving success. If we closely look at the product and service industry, organizations are keeping “Delivery Excellence” as part of organization goal and hence they are searching an answer for the question “How to achieve Delivery Excellence?” The only way organizations can be driven to achieve excellence is by keeping an eye on competition and world best practice in all aspects of the business (Bendell et. all, 1998). Several researchers (Pinto & Slevin, 1987 and 1988), (Pinto and. Kharbanda, 1995) have identified the project success factors (Refer Table-1). Similarly critical success factors that ensure “Delivery Excellence” should be identified. Based on the current project management scenarios and the research data (refer Table-1), we have further analyzed and identified the set of critical factors (Refer Table-2) and techniques (refer table-4) that predominantly ensure “Delivery Excellence”. Delivery Excellence techniques have already been implemented companies like Apple and Godrej. These companies achieved the highest level of success. Innovation co-creation is one of the techniques helped them to achieve delivery excellence. “The Power of Co-Creation” author Venkat Ramasamy has described how organizations could turn around their business from a low margin to high margin and loss making to profit making organization. So this document will discuss about the best practices, tools and techniques available for “Achieving Delivery Excellence”.4|P a g e Application of Select Tools of Psychology for Effective Project Management
  4. 4. Project Management National Conference 2011 PMI India 2 KEYWORDS Delivery Excellence, Project Success, Techniques, Innovation 3 EXCUTIVE SUMMARY ACHIEVING DELIVERY EXCELLENCE Excellence is the quality of being outstanding or extremely good. This is the definition from dictionary. Delivery Excellence of an organization is the quality of delivering outstanding or extremely good deliverables. Quality means “Good” but excellence means “Extremely Good”. Delivery Excellence means much more than achieving Quality. So Delivery Excellence is much more than delivering projects within cost, time, effort or reducing defects or merely meeting expectations or reducing complaints. Nevertheless, these factors are critical for project management success but Delivery Excellence is crucial for project success. Project Success ensures Organizations success. Net effect “Delivery Excellence” ensures Organization success. Project Management Project Success Organization Success Success Delivery Excellence So today, organizations are investing in innovations and new initiatives to achieve “Delivery Excellence” and most of them are searching an answer for the question “How to achieve Delivery Excellence?” Apple is the best example to know about “achieving Delivery Excellence”. Apple delivered much more than product quality by bringing rich user experience features in iPods through innovation co-creation with customer which brought them breakaway success. Sony products are famous for their quality but today Apple products are the most preferred. How can Apple compete with Sony – a market leader and gadgets giant? The logic is simple; Apple has the “Delivery Excellence” capability which has the power to go beyond Sony’s Quality. It is not companies like Apple can achieve excellence or companies from Japan or USA can achieve excellence. Excellence can be achieved irrespective of the sector and country. After all excellence is a habit not an activity. “Super 30” of5|P a g e Application of Select Tools of Psychology for Effective Project Management
  5. 5. Project Management National Conference 2011 PMI India Anand Kumar from Bihar, India is a great example for delivery excellence. By 2011, 236 of the 270 had made it to IITs and Discovery Channel showcased his work in a documentary. Today Japanese “famous for Quality” are coming all the way from Japan to meet Anand Kumar and learn the delivery excellence techniques. So it is natural for organizations to learn “Delivery Excellence” techniques and move from the tag of “traditional organization” to “delivery excellence organization”. Hence this paper explores the new tools and techniques for “Achieving Delivery Excellence”. 4 QUALITY JOURNEY FROM QUALITY TO EXCELLENCE Japanese equipment is very good, very accurate, and very well maintained. In the 1950s and 1960s, Japanese goods were synonymous with cheapness and low quality, but over time its quality initiatives began to be successful. Fig-1 shows Japan’s quality journey from 1950 to till date.6|P a g e Application of Select Tools of Psychology for Effective Project Management
  6. 6. Project Management National Conference 2011 PMI India Fig: 1: Quality Journey Quality SPC TQM SQC 2000 QM 1980 QM: Quality Management SQC: Statistical Quality Control 1960 TQM: Total Quality Management SPC: Statistical Process Control 1950 Period in Year Japan has been dominating in implementing the quality processes and procedures that provide them the highest quality and reliability in todays electronics markets. How Japan has taken lead in quality initiatives? Japanese companies have invested their time, effort and cost heavily on quality initiatives which brought them quality tools and quality gurus like Deming, Juran, Ishikawa, Keizan. As Japan continuously worked on quality initiatives, they could reach a matured level in quality and thereby their products are extremely good and reliable. Their investments are giving returns today. How Japanese achieved quality in their products starting from small products like calculators, music players and TV to big motor bikes and cars? Accordingly, it is the time for the industry to go beyond Quality that is excellence. In project management, it is Delivery Excellence.7|P a g e Application of Select Tools of Psychology for Effective Project Management
  7. 7. Project Management National Conference 2011 PMI India 5 JOURNEY TO EXCELLENCE WHY DELIVERY EXCELLENCE? When products have the desired quality then why delivery excellence? Is it really a matter for high quality product organizations to go for delivery excellence? It is a trivial question but one of the Japanese Organization has seen the answer for this question when their leading electronics product “walkman” has to be phased- out when Apple’s iPod came into the market. Though walkman is the highest quality product, it lost its position completely against Apple’s iPod. So what is the ground reality here? That fact is delivery excellence, which can go beyond the quality. During this period companies started looking for something beyond quality. From that time onwards movements started for “Achieving Excellence” in one or another forum: Tom Peters and Robert Waterman were deeply involved in the movement and came out with the landmark book “In Search of Excellence”. They mentioned that organizations in every imaginable area of business, government and the social sector have been restlessly seeking the formula for success. The “excellence movement” created an appetite for management systems but still searching the process for achieving excellence. Success of the project is no more depending on triple (Ref. Fig-2) constraint (Shenhar et al., 2002). Fig-2: Triple Constraint - Triangle Model Fig-3: NTCP – Diamond Model TIME COST SCOPE8|P a g e Application of Select Tools of Psychology for Effective Project Management
  8. 8. Project Management National Conference 2011 PMI India Shenhar et al. have been reinventing project management and identified a new NTCP diamond model which talks about adaptive project management more than triple constraints. Over the years, following “movements” have started and took center stage, attracted their share of advocates and practitioners but still in evaluation stage for achieving delivery excellence. 1. Factors ensure Project Management Success – Cost, Scope, Time, Quality (triangle model) 2. Factors ensure Project Success – Customer Satisfaction (diamond model) 3. Factors ensure Organization Success – Delivery Excellence (circle model) 6 CRITICAL SUCCESS FACTORS FACTORS ENSURE PROJECT SUCCESS & DELIVERY EXCELLENCE Sydney Opera House is one of the typical examples of Project Success but Project Management failure. As for as project management success it had 1500% over budget and 250% time overrun however in terms of Project Success Sydney Opera House turned to be an amazing success project. So project success and project management success should be distinguished clearly and defined accurately. Since 1980, many researches have been done and identified different set of critical success factors. As per G.U. Prabhkar (2008) “the only agreement seems to be the disagreement on what constitutes project success”. Researchers like Pinto & Slevin (1989), Chua et al (1999), PMI (2004), Turner & Muller (2007), Walker et al (2004), Hyvari (2006), Khang & Moe (2008) have identified the critical success factors (Refer Table-1) that significantly determine project management success.9|P a g e Application of Select Tools of Psychology for Effective Project Management
  9. 9. Project Management National Conference 2011 PMI India Table-1: Project Success Factors Based on the research data, analyzed and identified the below set of critical factors and criteria that predominantly ensure “Delivery Excellence” refer Table- 2. Table-2: Delivery Excellence Factors Delivery Excellence Score Performance Benchmark Critical Factors ensure CardSl. No. Delivery Excellence Performanc Projec BU MindTree Industry Competitor Planned Actual e t Level Level Level Level Level Customer Satisfaction 1 100+% Level Employee Satisfaction 2 100+% Level Business/ Revenue 3 100+% Growth 4 Effort Variance 100+% 5 Schedule Variance 100+% 6 Review Effectiveness 100+% 7 Defect Density 100+% Business / Increase 8 100+% Profit Best Practices / 9 100+% Innovation10|P a g e Application of Select Tools of Psychology for Effective Project Management
  10. 10. Project Management National Conference 2011 PMI India 7 KEY METRICS & MEASUREMENT MONITOR AND TRACK KEY DELIVERY EXCELLENCE METRICS Managing critical factors is part of the process of achieving Delivery Excellence. As per Quality Management System, without measurement things cannot be managed. So Project Success and Delivery Excellence critical success factors should be measured, monitored and tracked. Following table shows the list of metrics to be measured and monitored through productivity tools and measurement system. As discussed in the Journey to Excellence section, metrics collection also can be done at different level. Representatives from Project Management, Project and Organization are responsible for collecting the metrics at each level. Table-3 represents the metrics related to Delivery Excellence. Delivery manager and Senior Management members are responsible for Project and Organization level metrics. Table-3: Key Metrics List Long Term Short Term Measures Target Increase Revenue Revenue growth % Increase Financial % Increase Increase Customers Number of Customers Growth Innovation: % of revenue from new Increase Projects % Increase projects Increase Satisfaction Customer Satisfaction Level % Increase Increase Referrals Frequency of referral % Increase Customer Satisfaction # of project managed triple Increase Confidence % Increase constraints within threshold limits Improve Relationship # of commitment/milestone missed % Reduction Increase Core Skills Training % Increase Learning & Growth Increase Systems % Unavailable % Reduction Availability Increase Review Review Efficiency % Increase Efficiency Internal Reduce Escalations Number of Escalations % Reduction Business Reduce Cycle Time Cycle Time % Reduction Process and Employee Turnover Reduce Attrition % Reduction Quality Reduce Defects Defect Density % Reduction Reduce Costs Waste, Rework, Warranty Costs % Reduction11|P a g e Application of Select Tools of Psychology for Effective Project Management
  11. 11. Project Management National Conference 2011 PMI India Above list of metrics are indicative and Organization can have a modified version of metrics list based on their project and business model. Typically organization can have a Balanced Score Card with above metrics. Delivery Excellence team members should evaluate Organization project performance against industry bench mark data for scoring. Teams exceeding the bench mark performance are eligible for getting the “Seal of Delivery Excellence” 8 WAY TO DELIVERY EXCELLENCE TOOLS & TECHNIQUES TO ACHIEVE DELIVERY EXCELLENCE Munns & Bjerimi (1996) identified and shared the distinction between project success and project management success. This differentiation helped project managers to identify the focus area and achieve success. Similarly, the distinction between achieving Quality and achieving Excellence should be identified. Apple is one of the organizations, who achieved Delivery Excellence by their breakthrough innovation of iPods. Apart from western countries, In India, Godrej has introduced a new Refrigerator with radio. This innovation has helped them achieving 150% revenue growth. Here Godrej has been relying on innovation to overcome the large multinational competitions in consumer durable market. Many more examples and case studies can be discussed but the inference is the same, there is a gap between the traditional way of achieving quality and excellence way of achieving Delivery Excellence. Based on the industry experience, identified certain initiatives for moving organizations from their traditional ways to excellence ways. Following are the high level list of transformational initiatives to be performed for achieving Delivery Excellence. Gold and Diamonds are glittering after going through different paths and changes. Organizations also need to take initiative to go through the different transformation process.12|P a g e Application of Select Tools of Psychology for Effective Project Management
  12. 12. Project Management National Conference 2011 PMI India Table-4: List of Initiatives MOVE FROM MOVE TO EXCELLENCE WAYS ACHIEVEMENT AREASTRADITIONAL WAYSIndividual Co-Creation Innovation Skill assessment, Interview,Manual Process Automation Process Project health, Revenue goalsReactive Model Predictive Model High Matured organizationSupply on Demand Predict Demand and SupplyConservative/Delayed Open & Confident Culture, Transparent/Quick CommunicationCommunication Creative environment Quantitative Process (ensure to keep Certified team manages criticalQualitative Process certified Developers/PMs) projects better than others Taking ownership to achieveAbility Responsibility Goals and Objectives Refer best practices and lesson learnt Save TIME, COST and ShowRe-Invent & Re-Create and Re-Use value addition to customersWait for Survey report Predict Customer Satisfaction Capability and MaturityResource Pool Competency Development Centre Right Talents Availability 9 DELIVERY EXCELLENCE BENEFITS OF ACHIVING DELIVERY EXCELLENCE Organizations with Delivery Excellence capability can reap many benefits from all angles. Partial list of benefits includes increase revenue, improve performance, increase productivity and reduce cost & time. Unlike Quality Management, benefit of Delivery Excellence goes beyond project management level, project Level and organization level. It also spreads across present and future time period. Particularly it helps future growth of the organization. Benefits achieved through innovations and different initiatives will continue beyond the project level and will help organization growth. Partial list of Delivery Excellence key benefits are as follows.13|P a g e Application of Select Tools of Psychology for Effective Project Management
  13. 13. Project Management National Conference 2011 PMI IndiaProject Management Level Project Level Organization LevelOn Time Customer Satisfaction Add new customersOn Budget Employee satisfaction Reduce AttritionOn Effort Meet Revenue Goals Improve ProfitMeet Quality goals Improve Productivity Reduce Cost & Time For more clarity, Delivery Excellence benefits highlighted in Figure-4 as a calculated comparison view between two scenarios where one is before implementing Delivery Excellence Group and the next is after implementing Delivery Excellence Group in an IT Service organization. Fig-4: Delivery Excellence Benefits Chart14|P a g e Application of Select Tools of Psychology for Effective Project Management
  14. 14. Project Management National Conference 2011 PMI India 10 CONCLUSION SEAL OF DELIVERY EXCELLENCE Organizations have to encourage innovations and motivate employees to implement new initiatives for achieving Delivery Excellence apart from monitoring and tracking the delivery excellence key factors. Organization can effectively implement Delivery initiatives by including subject matter experts to implement the process and award “Seal of Delivery Excellence” to eligible projects. This process should encourage teams to go for excellence, identify the innovations and share with internal and external groups like Baldrige in USA, a National Program for encouraging Performance Excellence. Achieving Excellence process should be simple, so that everyone can achieve excellence. In such case, better to know, “what is Excellence?” Is it like climbing the Mount Everest or winning a medal in Olympic Games? How can everyone achieve? Lior Arussy, the author of the book “Excellence Every Day” says “equating excellence with heroism not only demotivates but also discourages”. So the conclusion here is to change the mindset after all “excellence is a habit not a heroic activity”. “Everyone” is capable of achieving excellence in an organization by meeting or exceeding stakeholder expectations. Stakeholder means not necessarily limiting to customers; it can be internal or external team members. Finally, achieving excellence should be a Daily Goal. Collective effort on the daily goal across the organization will ensure “Delivery Excellence”. 11 REFERENCE Azim Premji - (2005), Achieving global excellence through IT, Web Ref. http://www.grass-roots.in/cache/index.php/1231 Basil Vandegriend – (2007), Achieving Excellence in Software Development, web ref.15|P a g e Application of Select Tools of Psychology for Effective Project Management
  15. 15. Project Management National Conference 2011 PMI India http://www.basilv.com/psd/blog/2007/achieving-excellence-in-software- development BIS – Bureau of Indian Standards (1991), “Performance Criteria” for Rajiv Gandhi National Quality Award http://www.apeda.gov.in/apedawebsite/Announcements/Rajiv_Gandhi_Nat ional_Quality_Award.pdf BNQP— Baldrige National Quality Program – (2002) “Criteria for Performance Excellence” U.S. Department of Comme – National Institute of Standards and Technology Retrieved from the World Wide Web: www.quality.nist.gov/bcpg.pdf.htm Cesare Zanasi and Cosimo Rota - (2003) “Project Success Factors”, Reference from web http://centmapress.ilb.uni- bonn.de/ojs/index.php/proceedings/article/viewFile/45/43 Donald Chrusciel and Dr. Dennis W.- (2003) Field "From Critical Success Factors into Criteria for Performance Excellence” (Vol. 19-4, Aug 2003) http://atmae.org/jit/Articles/chrusciel073003.pdf Guru Prakash Prabhakar Bristol Business School, University of the West of England, “What is Project Success: A Literature Review” International Journal of Business and Management September, 2008 Harry V. Roberts, Bernard F. Sergesketter – (1993) “Quality is Personal” – A Foundation for Total Quality Management, The Free Press, NY, USA History of Japanese Quality Movement, web ref. http://www.wtec.org/loyola/ep/c6s1.htm Japan celebrates Super 30 success - Giridhar Jha - 22 Jun, 2011 Web Ref.16|P a g e Application of Select Tools of Psychology for Effective Project Management
  16. 16. Project Management National Conference 2011 PMI India http://in.education.yahoo.com/news/yedumailtoday/japan-celebrates-super-30- success-20110622 Lior Arussy - (2008), Excellence Every Day, Make the Daily Choice - Inspire Your Employees and Amaze Your Customers, Printed in NY, USA. Pp. 143-153. Murali Chemuturi and Thomas M. Cagley, JR. – (2010), Mastering Software Project Management, Best Practices, Tools and Techniques, J. Ross Publishing, FL, USA NTCP Diamond Model (SHENHAR, A.J., DVIR, D. 2004) web reference: http://giorgiomartorell.blogspot.com/2010/08/ntcp-model.html Singapore Government’s “Managing for Excellence” in CPIB CPIB - Corrupt Practices Investigation Bureau, http://app.cpib.gov.sg/cpib_new/user/default.aspx?pgID=159 Super 30 - Anand Kumar, web reference: http://en.wikipedia.org/wiki/Anand_Kumar Vasanthi Perumal, Abu Hassan Abu Bakar, Arman Abd Razak, Shardy Abdullah, Aidah Awang – (2010) “Critical success factors for sustainable housing: a framework from the project management view” Asian Journal of Management research, University Sains Malaysia, Pulau Pinang, Malaysia Web Ref. http://ipublishing.co.in/ajmrvol1no1/EIJMRS1007.pdf Venkat Ramasamy., Francis Gouillaet (2010): “The Power of Co-Creation”, Build it with them to boost growth, productivity, and Profits. Free press, NY.USA Pp. 38-3917|P a g e Application of Select Tools of Psychology for Effective Project Management
  17. 17. Project Management National Conference 2011 PMI India 12 Author Profile Peter has 18+ years of experience in information technology progressing from development, project management and program management. He is currently working with MindTree, Bangalore as Associate Director. Peter is a certified Project Management Professional (PMP) from PMI, USA. He has experience in developing project management tools and identifying techniques to improve overall performance and productivity. His area of focus is achieving Delivery Excellence by using the right Tools and Techniques. John has done degree from Thyagarajar College of Engineering, Madurai and MS from BITS, Pilani. johnpeter_devesahayam@mindtree.com peter2pmp@yahoo.com18|P a g e Application of Select Tools of Psychology for Effective Project Management

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