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Dr Harvey Maylor, Cranfield University presentation Governance SIG May 2013

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Dr Harvey Maylor, Cranfield University presentation Governance SIG May 2013

  1. 1. Governance: Focus,complexity and intelligentclient behavioursDr Harvey Maylor
  2. 2. The challengeResults consistent:>68% of projects failingMajor challenge fororganisations:CapexStrategies, initiatives,innovationsRevenue© Cranfield University 2013 2
  3. 3. Reality check© Cranfield University 2013 3Met timetarget70%Met costtarget70%Met qualitytarget70%+ +Probability of meeting all 3 objectives = 0.7 x 0.7 x 0.7= 0.34
  4. 4. Back to PM101© Cranfield University 2013 4“The fundamental premise of successful businesspractice is to offer what clients want:cheaper, faster and better than competitors.”
  5. 5. UOR Delivery FocusSeniorMgt.DeliveryteamProvider ClientProvider ClientUORs..That’s where speedand mobilisation ofresources is key andcan be criticalUORs..That’s where speedand mobilisation ofresources is key andcan be criticalUORs..That’s where speedand mobilisation ofresources is key andcan be criticalUORs..That’s where speedand mobilisation ofresources is key andcan be critical5
  6. 6. Non UOR DeliveryFocus“I’m actuallyadamant that we won’tcompromise on qualityit’s a product ontime actually. Not toomuch cost, but product ontime with reasonable cost“an organisationthat fundamentallyunderstands the servicedelivery requirement.”“Why are we here?...To make a profit…that’swhat we’re in businessto do”“For the client - costand quality probably”“from the client perspectivewhatever price we canmeet they will expect top-line quality“we weren’t necessarily thecheapest but we addedvalue and were trusted onthat”The clients judge us oncost and on-timedelivery“for the client– it’s alwaysabout price”“The client relationship isabsolutely key. A strong andpositive client relationship“Margin is a deal hurdleand improving marginis a big driver”Quality of delivery,quality of people,quality of service“The most importantis we deliver value ratherthan low cost”“So if you puta quote inthey’ll alwaysgo for thelowest”SeniorMgt.DeliveryteamProviderProviderClientClient it’s a product ontime actually. Not toomuch cost, but product ontime with reasonable costit’s a product ontime actually. Not toomuch cost, but product ontime with reasonable costPage 6
  7. 7. Three guidingprinciples forstrategic focus1. Understand how important project delivery capabilityis to your organisationYou get what you focus on, promote and measure.2. Understand focusThe firm that attempts a narrow mission will be moresuccessful than one that attempts a wider one3. Simply saying this is important isn’t enoughThe organisational strategy is the pattern ofdecisions actually taken and must demonstrate bothinternal and external fit7Question 1: What is the role of governance (if any)in gaining strategic focus ?Question 1: What is the role of governance (if any)in gaining strategic focus ?
  8. 8. Task Complexity Managerial Response?Complexity?9
  9. 9. Complexities Structural complexity: Number, size, financial scale, interdependencies, variety, pace,technology, breadth of scope, number of specialities, multiplelocations/time-zones. Socio-political complexity: People, politics, stakeholder / sponsor commitment, resistance,shared understanding, fit, hidden agendas, conflicting priorities,transparency. Emergent complexity: Technological and commercial maturity and novelty, clarity of vision /goals, clear success criteria / benefits, previous experience,availability of information, unidentified stakeholders.10
  10. 10. Complexities“In your work, which of the3 complexities is the most difficult tomanage?”“In your own formal training anddevelopment, which of the 3complexities has received the mostattention?”We asked a group of 246 PMs these questions11
  11. 11. RepresentingComplexities12
  12. 12. Responses toComplexities How to respond to the project / programmemanagement complexities we face? How many of these are self-inflicted? Three ways of addressing each:Resolve – make it go awayReduce – make less severeRun with it – deal with the residuals13
  13. 13. Responding toComplexities For ‘less-complex’ work, ‘standard’ responses areadequate (planning, resourcing etc.) To deal with projectcomplexities, a moretailored and thoughtfulapproach is required.14
  14. 14. Responding toComplexitiesStructural Soc-Pol EmergentPlan &ControlPlan comms (inc. clearvisualisation); isolatekey tasks; createproject board ofstakeholders.Co-location; use PMOas point of control;scenario planning;change control.RelationalPrioritisecommunication withstakeholders; reachout to others.Socialise changes;revisit assumptions;increased informalcommunication.Flexibility(Risk & Change)Anticipate refinementand testing; changecontrol; paralleldevelopments.Manage expectationsof change; revisitbenefits regularly;‘look-ahead’ with clientComplexity responsemore than this area?15
  15. 15. Choice of Manager Understanding the complexities can be usedto choose the right manager.Technical, size, numberof interconnections.SE S-PAdaptive,flexible.Relationship-builder. Better understanding of the projectcomplexities: Structural Socio-political Emergent Can help in selecting the rightmanager for the task, based on: Skills, previous experience, or Development needs.16Question 2: What is the role of governance (if any)in managing complexity?Question 2: What is the role of governance (if any)in managing complexity?
  16. 16. © Cranfield University 2013 17
  17. 17. Intelligent Clients NAO 2006 report – identified importancein general terms and the term intelligentclient T5 case MoJ CNOMIS Ford & Apps Comparison with current approaches toprocuring complex projects With complexity comes paradox “Paradoxes are only paradoxes becausethey are based on a logic or rationalethat is different from what weunderstand or expect.” (Harvey, 1988,p.20) .18
  18. 18. Paradox Notable work on paradox: Streatfield (2001). Our research highlighted the many paradoxes inthe world of projects and project management(Maylor and Brady, 2010). “Paradoxes are only paradoxes because they arebased on a logic or rationale that is different fromwhat we understand or expect.” (Harvey, 1988,p.20) .1919
  19. 19. Paradox Idealised logicThe riskparadoxPassing the risk on by outsourcing assumes the client canavoid the riskThe contract paradox The tighter you specify the terms and conditions in thecontract the more likely a successful deliveryThe cost-cuttingparadoxSkimping on up-front investment and selecting the lowestbid supplier and applying rigorous controls ensures valuefor moneyThe outsourced problemparadoxAn external supplier is better placed than an internal agentto ‘fix’ organisational problemsThe relationshipparadoxCurrent legislation is perceived to prevent governmentprocurers developing relationships with suppliersThe process paradox The mantra is ‘if there is a problem, fix the process’ – whichmay be fine for simple projectsThe learning paradox Programmes should be ideal vehicles for learning – PDCAmaps well to the programme life cycle207 paradoxes identified
  20. 20. Working with paradox© Cranfield University 2013 21Question 3: What is the role of governance (if any)in encouraging intelligent client behaviours?Question 3: What is the role of governance (if any)in encouraging intelligent client behaviours?1. Understand the complexity of aspects of a projectWhich areas are truly highly complex and whichcan be treated as transactional?2. Understand paradoxFor those highly complex areas, recognise thatdecisions could be paradoxical3. Operationalise strategyIntelligent client behaviours towards risks,contracts, costs, integration, relationships,process and learning
  21. 21. Conclusions1. Focus requires hard trade-off decisions to be made.2. Project complexity can be managed.3. For high residual complexity, intelligent behavioursinclude understanding where decisions areparadoxical.© Cranfield University 2013 22Question 2: What is the role of governance (if any)in managing complexity?Question 2: What is the role of governance (if any)in managing complexity?Question 3: What is the role of governance (if any)in encouraging intelligent client behaviours?Question 3: What is the role of governance (if any)in encouraging intelligent client behaviours?Question 1: What is the role of governance (if any)in gaining strategic focus ?Question 1: What is the role of governance (if any)in gaining strategic focus ?
  22. 22. Governance: Focus,complexity and intelligentclient behavioursDr Harvey MaylorEmail: icpm@cranfield.ac.uk (until 31stJuly)harvey@pmpc.co.uk

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