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Lean & Green Project Management - PMI Conference

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In the past decades, lean production philosophy has influenced deeply the way many manufacturing business work today. However, lean philosophy can also be adapted and applied to project work, and influence project management approaches with the ultimate goal of reducing/eliminating waste of all forms.

Examples of reducing waste in projects are reducing material waste, process waste, minimizing work in process, eliminating idle workforce, minimizing unused workforce skills, minimizing rework due to poor quality or spec changes). The lean approach is applied both to projects’ processes but also to the whole project value chain.

Adopting a Lean approach aims to reduce project costs while maximizing value for clients or users. However, it usually achieves this within the defined project boundaries, that is, the defined value chain of the project (i.e. suppliers, project team, customer or users).

Borrowing, however, the basic principles of green management and applying them to project management, one would tend to consider more the interrelation & interdependence between the systems of projects, the environment, economy and society, and therefore influence the project scope, deliverables, and project management approach to become “friendlier” to the surrounding systems/environments. Such systems (or sub-systems) are other projects, programs, corporate portfolios, the organization at large, society, and the natural environment.

This presentation offers an overview of the current developments in lean and green approaches as applied to project management, and proposes the consideration of the broader social and natural environments in the definition of projects. Green project management should include green objectives in the definition of the project scope, and apply a greener approach in managing project work. The purpose is to minimize any negative impact to project environments (negative by-products) while maximizing positive impact (positive by-products) by applying a less fragmented and longer-term holistic thinking, thus moving towards a more sustainable project management model.

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Lean & Green Project Management - PMI Conference

  1. 1. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Nicos Kourounakis, MASc, MBA, PMP, IPMA-D, PRINCE2, OPM3 Project & Strategy Consultant, OPM-CG Adjunct Professor, Hellenic American University Nicos.Kourounakis@opm-cg.com Lean & Green Philosophies Influences on Modern Project Management May 10th, 2011 Dublin
  2. 2. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Introduction
  3. 3. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Google Results: Lean Manufacturing/Production ….1.939.000 Lean Management …………………………. 288.000 Project Management …………………. 37.500.000 Lean Project Management ……………... 123.000 Lean Projects …………………………….………72.700 Green Management ……………….……… 115.000 Green Projects ………………………….…… 248.000 Green Project Management .…..………. 70.800 Lean & Green Project Management ….. 2.604 Introduction 3.340.000 663.000 82.100.000 150.000 101.000 418.000 543,000 402.000 4.530
  4. 4. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 • Green Projects • Greening Projects • Green Project Management Lean & Green Project Management Introduction
  5. 5. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 • Projects create something unique • they require effort and energy, and • deliver an outcome of higher energy/value than the value of its inputs. Where is energy expended in Projects? • Work/labor • management/relationships • infrastructure • materials and procurements • ….and waste!! Project Management
  6. 6. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 The “waste side story” Examples of waste in projects: • material waste • process waste • information waste • knowledge waste • management waste • wasting relationships • work in process (WIP) • idle workforce • unused workforce skills • rework
  7. 7. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Project Management Wisdom "The last project generated a ton of paper and it was still a *#^% disaster. So this project will have to generate at least two tons!“ Lean & Green genius
  8. 8. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 What a waste! Fujio Cho: Waste is anything other than the "minimum" amount of equipment, materials, parts, and workers which are absolutely essential. 1. Waste from overproduction 2. Waste of waiting time 3. Transportation waste 4. Inventory waste 5. Processing waste 6. Waste of motion 7. Waste from product defects 12-8
  9. 9. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Project Management Optimizing the use of resources is what a large part of Project Management is about. But what are we really trying to optimize? Optimize: • tasks • phases • project • program • organization • industry • society • natural environment
  10. 10. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 The New Context A new problem: Projects & project management need to be optimized in a new context: • much broader • new priorities • new project success criteria: • value • people • sustainability • impact on the project’s environments
  11. 11. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Project Success Factors & Criteria (Turner & Muller, 2006 Value Time ScopeCost
  12. 12. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Value What is value? What is “the environment”? Environment is the surroundings of a system that may interact with it by exchanging mass, energy, or other properties. Source: wikipedia Value for who? At what horizon? Cost < Price   m out n in vv
  13. 13. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Project Environment Consider the Project’s Environments when Managing Projects. What are the projects environment(s)? • Project's team (social environment)‫‏‬ • Programs • Supply & Distribution Chain • Organization • Society • Natural environment • ... space / the universe! More BS ! EBS - Project Environments Breakdown Structure
  14. 14. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Lean Transformation Process Green
  15. 15. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 The Toyota Production System Was developed to increase quality and productivity. It is based on two philosophies: Elimination of waste & Respect for people
  16. 16. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 The Lean Approach • Eliminate waste • Minimize inventory • Maximize flow • Pull from demand • Empower workers • Meet customer requirements • Do it right the first time • Abolish local optimization • Partner with suppliers • Create a culture of continuous improvement Lean is centered around creating more value with less work!
  17. 17. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Agile Values • Individuals & interactions over processes & tools • Quality outputs over comprehensive documentation • Customer collaboration over contract negotiation • Responding to change over following a plan Source: http://www.agilemanifesto.org While there is value in the items on the right, we value the items on the left more individuals & interactions processes & tools quality output comprehensive documentation customer collaboration contract negotiation responding to change following a plan
  18. 18. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Principles Behind the Manifesto 1. The highest priority is to satisfy the customer needs. 2. Deliver benefits frequently. 3. Requirement changes are welcome !! 4. Business people and project team must work together throughout the project. 5. Build projects around motivated individuals. Give them the environment and support they need, and trust them to get the job done. 6. The most efficient and effective method of communication is face-to-face conversation. 1. Benefits delivered is the primary measure of progress. 2. Agile processes promote sustainable development (be able to maintain a constant pace indefinitely) 3. Continuous attention to excellence, good infrastructure & design. 4. Simplicity is essential - the art of maximizing the amount of work not done!! 5. The best solutions emerge from self-organizing teams. 6. At regular intervals, the team reflects on how to improve, then tunes and adjusts its behavior accordingly.
  19. 19. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Agile/Lean Teams • Build Trust • Master Conflict • Achieve Commitment • Embrace Accountability • Focus on Results Source: The Five Dysfunctions of a Team, Patrick Lencioni Agile Projects depend primarily on people, leadership and effective teamwork. Close the Performance Gap: • The least the team can do to get by • The most the team can do 
  20. 20. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 A Balanced System Scope Processes Documentation Efficiency Contracts & Plans with Purpose People Effectiveness Uncertainty Responding to change
  21. 21. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 A Greener Transformation Process HR/€ Output= Product/service Inputs Negative Spill-Over“Positive” Spill-Over Project Organization Lessons learned Maturity gained Processes improved Growth achieved Creativity unleashed Relationships reinforced stakeholders Burned-out staff Other projects “starved” Corrupted clients Non-ethical Conduct Short term gains
  22. 22. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Greenwash Greenwashing: the deceptive use of green PR or green marketing in order to promote a misleading perception that a company's practices, policies or products are environmentally friendly. Source: wikipedia Source: http://www.sinsofgreenwashing.org • Sin of no proof • Sin of the hidden trade off • Sin of vagueness • Sin of irrelevance • Sin of less of two evils
  23. 23. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 The Foot - Shoe - Footprint The Foot The Shoe The Footprint < -- the project < -- project management <--- Lean it! < -- impact to the environment(s) <--- Green it!
  24. 24. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 The 3Rs of L&G Project Management Reduce Reuse Recycle
  25. 25. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Reduce - Reuse - Recycle Reduce: • Energy consumption • Inventory & WIP • Waste (e.g. unnecessary work assignments, communication/collaboration inefficiencies) • Rework (low quality, inadequately defined specs or inefficient change management)‫‏‬ • Byproducts (of the project or project management) Achieved through: • High Quality Planning • Lean & Agile Management • People-centric Management • Leadership Requires: • Attention to Quality • Project Management Competence • Management Support • Efficiency & Effectiveness (PM & PPM)‫‏‬
  26. 26. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Reuse: • Components • Products • Plans • Knowledge & know-how • Teams • Contractors → partners Reduce - Reuse - Recycle Achieved through: • Methodology & Processes • Templates & Documentation • Lessons Learned • Team Development • Long Term Thinking • Transparency & openness • Coordination (PMO)‫‏‬ Requires: • Attention to Quality • Proactive Relationships Management • Knowledge Management • Management Maturity • Organizations (Pgms, chains /networks)‫‏‬
  27. 27. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Recycle: • Waste (materials)‫‏‬ • Project byproducts • Project Management byproducts • Relationships Reduce - Reuse - Recycle Achieved through: • Holistic Approach • Long Term Thinking • Impact Analysis on Project Environments Requires: • Proactive Relationships Management • Linking Strategy to Projects • Long Term Strategies • Structures (Pgms, project chains /networks)‫‏‬
  28. 28. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 The Theory of Relativity
  29. 29. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Symptoms, Problems & Root Causes Too many small projects People work overtime Company of heroes The de facto resource allocation process is fire-fighting Resource commitments do not hold High project failure rate Disappointment with final project benefits Target dates do not become commitments Dysfunctional incentive systems Opportunistic project management behavior Projects are late Projects must queue for resources No rigorous criteria based on which projects are selected Launching new projects is too easy Lack of focus Source: JARNO VÄHÄNIITTY, Do Small Software Companies Need Portfolio Management, Too?, Helsinki University of Technology, 2006.
  30. 30. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Problems Symptoms Root Cause Identifying Problems
  31. 31. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Build a self-reinforcing model Management Model Dark forces of Management
  32. 32. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Build a self-reinforcing model Management model Dark forces of management Self-reinforcing structure
  33. 33. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Lean PM & Portfolio Management rework
  34. 34. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Portfolio Management PPP Source: Blomquis and Muler, Middle Managers in Program & Project Portfolio Management, PMI Publications
  35. 35. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Basic Themes of L&G Project Management • We rely on people to plan & deliver value • Value is related to both outcomes & processes • … as perceived by clients, users, the project team, the organization, stakeholder groups -> (the project’s environments)‫‏‬ • Cost of production should reflect the “total cost” • Minimize waste & negative by-products • ..and maximize positive by-products.   m out n in vv
  36. 36. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Closing Notes Quality is linked to green thinking: “Quality is the loss transferred to society” Greening Project Management: • Green the Portfolio • Green the Project Vision • Green the Project Strategy • Green the Scope/Objectives • Green the Requirements • Sound “business” case & continuous “business” justification: outputs - > outcomes -> benefits • Create a benefits review plan of the planned “green” benefits.
  37. 37. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Conclusions L&G is an investment: • requires long-term forward looking/thinking and strategies • needs management support • apply “green” Kaizen – small/continuous improvements • find ways to make the benefits visible • increases team & customer satisfaction • improves CSR image Can we afford not to be Green? Ethics & professional code of conduct: Respect, Responsibility, Honesty & Fairness. W. E. Deming: We don't have to change. Survival is not compulsory...
  38. 38. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Nicos Kourounakis, MASc, MBA, IPMA-D, PMP, PRINCE2, OPM3 Project & Strategy Consultant, OPM-CG Adjunct Professor, Hellenic American University Nicos.Kourounakis@opm-cg.com Lean & Green Philosophies Influences on Modern Project Management
  39. 39. PMI Global Congress - EMEA Nicos.Kourounakis@opm-cg.comDublin, May 10, 2011 Nicos is a Project Management Consultant with expertise in Project Management Methodologies, Portfolio Management and Organizational Project Management Maturity. Nicos has been involved in many international projects in Canada, the United States, the United Kingdom, Ireland, Belgium, Austria and Greece, working both with large organizations and with smaller ventures and start-ups. As a Product Manager he also managed the successful development and launch of an innovative Enterprise Project Management software application, which is currently used by several EU Agencies. Mr. Kourounakis has also several years of experience in training and public speaking. As an Adjunct Professor at the Professional MBA program of the Hellenic American University in Athens, Greece, he has taught courses and delivered seminars in Project Management, Portfolio Management, Operations & Supply Chain Management and Management of Information Systems. He has also been involved with PMI both as a speaker at the 2011 PMI Global Project Management Congress in Dublin, at PMI-Istanbul 2012, and PMI BeLux in 2012 (Keynote Speaker), and as an elected Vice President of the Board of Directors of the PMI Chapter in Athens, Greece (2008-2011). Mr. Kourounakis holds an MBA from McGill University, Montreal, Canada, a MASc in Electrical Engineering from the University of Victoria, Canada, and a BSc in Physics from the Aristotle University of Thessaloniki, Greece. Nicos is also one of the first 100 professionals to be certified in PMI's Organizational Project Management Maturity (OPM3). http://www.linkedin.com/in/nicoskourounakis http://www.scoop.it/u/NicosKourounakis https://twitter.com/nkouroun Nicos Kourounakis, MASc, MBA, PMP, PRINCE2, IPMA-D Presenter Profile

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