![[metrics] The laTesT
sTaTisTics, surveys
and sTudies
InsIde the CIO’s AgendA
Where they’re spendIng
more than half of CIos said their project investments would include: As most
wIndows 7 server networK-Based dAtA CIOs are
mIgrAtIOn vIrtualIzatIon seCurIty proteCtIon
direct
reports to
38%
of CIos were plannIng to
launCh data Center Con-
of those,
67 perCent
Intend
to adopt
server
vIrtualIza-
the CEO
or have a
seat at the
solIdatIon projeCts In 2012
tIon.
executive
table, the
25% salary
of those,
55 perCent
are Imple-
mentIng
software
and com-
saId they’ll IntroduCe
Cloud ComputIng
as a servICe
(saas). pensation
needs
to be in
source: techtarget. results based on a survey of 2,642 global It professionals and business analysts published in january.
line with
the BOttOm LIne [that of]
US$144,000 the average base salary of
senior It executives in 2011
the busi-
ness line
leaders
The portion of reporting
IT executives
who took on
The portion of
IT executives at that
new roles in
2011 in pursuit
who reported
a decrease in level.
45% of greater
compensation
17% compensation
in 2011
—daniel m. ryan, CIo, City of Battle Creek,
michigan, usa
source: CIo/It strategy media group. results based on a survey of more than 1,700 global It executives and professionals conducted in november 2011.
18 pm networK March 2012 www.pmI.org](https://image.slidesharecdn.com/pmnetwork201203dl-1330663103607-phpapp02-120301223951-phpapp02/85/Pmnetwork201203-Dl-20-320.jpg)
![[casE study]
In ActIon: evALuAtIng A
MegApRoject’s RIsk AnALysIs
The largest civil engineering endeavor in Europe, the Crossrail project
will create major railway connections, including 21 kilometers (13 miles)
of tunnels, under the London, England area by 2018. HM Treasury, the
United Kingdom’s economics and finance ministry, hired Pegasus-Global construction of the crossrail tunnel portal west of royal oak station, london, England
Holdings Inc. in Cle Elum, Washington, USA to evaluate the approxi-
mately US$25 billion megaproject’s initial risk analysis.
This was a “full stakeholder involvement” risk-management program,
says Patricia Galloway, PhD, PMP. Everyone involved had an opportunity
to participate in the development and modeling of the full program
risk profile. For example, local governmental and quasi-governmental
units were invited to participate—even though at that point they had no
direct financial stake in the execution of the megaproject.
That included labor unions. While they do not have authority to
pass laws, they do regulate the conditions under which their respective
memberships will work, notes Jack Dignum of Pegasus-Global. “Given
the high level of labor needed to execute the project and the fact that
there would be significant competition for that labor pool throughout
the duration of the project, the unions were invited to participate in the
development of the risk profile for the project,” he says.
The total risk profile was divided into three types (delivery, program
and sponsor risks) and included seven steps:
1. Risk Identification, probability and Impact Quantification. All
risk elements received from stakeholders were categorized in a complex 3. Risk Leveling. “The extremely high number of individual risks
matrix, which considered such things as the location of individual tasks. identified—several thousand—resulted in modeling being impracti-
The result was the development of a detailed risk register that reported cal,” Dr. Galloway says. It would take too much time to run models,
risk elements and impact quantification. and the results would be too unreliable over multiple runs. To address
2. Risk Level Review. A committee was established to manage and that concern, the review committee coalesced the highest risks in
control the risk-management program following development of the risk terms of probability and consequence into a document called the
registers. The review committee was composed of commercial, planning “Level 1 Risk Register.” That reduced the total number of risks, as
and legal departments of the project sponsor, the U.K. Department for well as the what-if combinations among various risk elements, she
Transport. explains. The result: a practical model and a higher level of reliability
Stakeholders created their own risk registers, with the Crossrail risk- in the model runs.
management team adding each list to the total register and then culling 4. Risk Modeling. Risk analysis software with Monte Carlo simula-
the combined profile of duplications. tion was used to run probabilistic models of the Level 1 Risk Register.
When the risk-management team asked the participants to review The primary purpose of the model was to confirm or question the
the combined register, there was significant pushback by participants, contingency cost amounts contained in the full megaproject cost
who complained that their specific risks had been dropped, Mr. Dignum estimate in preparation at that time.
says. “It was described as a series of meetings where no one was happy, 5. Risk Model Reviews. The committee reviewed the results of
everyone thought the other participants’ risks were less important than the model runs, adjusting the baseline assumptions to refine the risk
their risks, and where no one would agree to give up anything,” he says. register and model assumptions. This review was conducted at the
To address the problem, the Department for Transport had partici- individual risk element level. Each change was fully documented and
photo courtEsy of wikimEdia
pants from its commercial, planning and legal departments form a “risk reported back to the stakeholders who had participated in the assem-
review committee.” bly of the original risk profile.
The first task was to educate those committee members about the 6. Model Adjustment. Based on committee reviews and consider-
purposes for a risk model and how one worked. They were then given ing stakeholder comments, the model was adjusted and rerun. Steps
the full risk register to analyze and “rationalize” it to other stakeholders. 4, 5 and 6 were repeated several times as the project definition was
“Once that process was developed with the input of the commit- refined.
tee, it was the committee that presented it and defended it to the 7. Final Acceptance. “Our audit found the risk-management pro-
risk-participant universe,” Mr. Dignum explains. gram to be prudent and opined that it met—and in a number of
instances, exceeded—the standards in the transportation industry,”
Dr. Galloway says.
EvEryonE involvEd had an opportunity to participatE in thE dEvElopmEnt and modEling
of thE full program risk profilE—including labor unions.
March 2012 PM NETWORK 41](https://image.slidesharecdn.com/pmnetwork201203dl-1330663103607-phpapp02-120301223951-phpapp02/85/Pmnetwork201203-Dl-43-320.jpg)
![[caSE STudy]
holding Team members accounTable
The challenge: A 28-month, £145 million construction project at Heathrow
rendering courtesy of grimshaw architects
Airport in London, England involved integrating the schedules of more than 10
teams and standardizing procedures across different tools. Project teams built a
pier, a large corridor connecting the terminal with the gates.
Scheduling Technique: Dimitris Antoniadis, PhD, operations and compliance manager at Carillion, a construction services com-
pany in Worcester Park, Greater London, England, developed a project control handbook that detailed how all project manage-
ment practices, including scheduling, were to be carried out. As parties joined the project, they received the document.
They were also informed up front that they were to be held accountable for monitoring progress on their activities against
the master schedule and, at designated intervals, rolling up that data into summary activities. Dr. Antoniadis would then insert
the summaries into the master schedule. He required each activity to have a monetary value associated with it, so that if it were
delayed or moved, impact on cost could be immediately assessed.
At first, some stakeholders were wary of the transparent scheduling and project control procedures.
“It took me two hours to convince a director from a separate party to use the work breakdown structure,” Dr. Antoniadis says.
End result: Integrating the schedule with the cost, risks and opportunities in an overall program of works helped to result in a
£35 million savings for the client, Dr. Antoniadis says.
The standardization of scheduling procedures proved popular. “In the end, everybody, even the project’s sponsors, congratu-
lated the team because the techniques did work.”
Scheduling Takeaway: Develop an efficient, simplified system for monitoring the project that can be transferred across different
scheduling tools. Build in the ability to order more detail on an activity’s progress as needed and consider combining risks with the
schedule to better spot delays—and their monetary impact.
[caSE STudy]
Trimming 14 Years off a schedule
The challenge: The U.S. Department of Energy (DOE) In 1999, when the program schedule was estimated, it
launched a US$3 billion environmental restoration was determined it would take over four decades, ending
program that encompassed more than 70 projects. in 2040. Several years into program execution, the DOE
The project’s scope included the remediation of several requested that the schedule be accelerated by 14 years—
areas contaminated by nuclear waste at the Savannah leaving Mr. Vakil with the task of fast-tracking a complex
River Site in South Carolina, USA, a 300-square-mile program while maintaining the appropriate change con-
(483-square-kilometer) area. trol. This acceleration would cut the project duration by
“From the outset, the one third, resulting in substantial cost savings.
program’s size and com-
plexity made creating Scheduling Technique: To tackle the sheer immen-
a master schedule and sity of the program, Mr. Vakil broke down the entire
pricing out the multi-year program into sub-projects and developed a master
baseline and overhead schedule using the critical path method. He matched
factors, along with the the estimating work breakdown structures (WBS) to
integration of seven proj- the schedule WBS, identifying links between projects to
ect teams, very difficult,” analyze subsequent schedule impacts.
says Manan Vakil, PMI-SP, Mr. Vakil and his colleagues formatted the schedul-
PMP, project reporting ing software to allow only the team responsible for a
manager at Fluor, who project to provide schedule updates.
oversaw the program. He also developed a consistent schedule cod-
62 PM NETWORK March 2012 WWW.PMI.ORG](https://image.slidesharecdn.com/pmnetwork201203dl-1330663103607-phpapp02-120301223951-phpapp02/85/Pmnetwork201203-Dl-64-320.jpg)
![ing structure across the program so that projects could be Funding from the U.S. American Recovery and Reinvest-
reported at various levels of management, disciplines and ment Act covered the cost of adding resources to execute the
remediation areas. For instance, upper management could work in less time.
review schedule progress by milestones, while project teams
could review summary activities. End result: By continuously analyzing the schedules of the
When the client requested the intense schedule accelera- projects in the program and monitoring time buffers that
tion, it offered Fluor a financial award for each project it suc- were allotted to activities in case of delays, Mr. Vakil and his
cessfully completed early. teams successfully accelerated the schedule and attained the
At that point, Mr. Vakil developed another working sched- financial awards. The program is now slated for completion
ule by pricing out the program without any overhead fac- in 2026.
tors, moving resources to where they were most needed. He
assigned activities to be done in parallel—or early—when pos- Scheduling Takeaway: Even the most massive projects
sible. He then took the pricing model amounts and put them can be conquered when broken into manageable chunks.
into the change control to determine the monetary value. Closely monitoring resources and managing projects simul-
Once the accelerated schedule was approved, it became the taneously or out of sequence can cut years off of a com-
new baseline. plex program.
[caSE STudy]
SAlVAging An “UnreAliSTic” commiTmenT
The challenge: Eager to win an oil storage facility project in Fujairah, United
Arab Emirates, equipment maker Belleli Energy Srl committed to an 11-month
schedule—even though the client said it was anticipating a 13-month turnaround.
Compounding that challenge was the fact that the US$22 million Socar
Aurora Fujairah Terminal project involved virtual team members based in Italy
and India, as well as foreign suppliers in India, Italy, the Netherlands and the
United States. An accelerated schedule put more pressure on all team members
to make their deadlines.
Scheduling Techniques: A. Vincent Paul Raj, PMI-SP, PMP, construction manager
at Belleli, and his team:
1. Ordered long-delivery-time items, such as roofs and pumps, as early
as possible
2. Used a pre-determined list of qualified agencies to delegate inspection of all
materials on each supplier’s premises
3. Airlifted critical items, such as main oil pumps and valve actuators, for speedier
delivery
Despite these efforts, though, the supplier from the Netherlands failed to
deliver the pumps for loading oil onto the ships on time. Without these items,
the project team could not complete construction, and the project missed its
deadline.
“Of course stakeholders were not happy, but at least they were kept The Added Wrinkle of
Scheduling Virtual Teams
informed about the situation,” Mr. Raj says. He forwarded them the project
schedule every week. As a result, stakeholders knew the delay was coming and “The conflicts that arise in all proj-
ects—scheduling in particular—are
agreed to reset the schedule to a tentative 13-month time frame dependent
more prone to arise in virtual teams,
upon when the pumps finally arrived. unless we maintain adequate human
In an attempt to prevent further holdups, Mr. Raj and his team performed a resources and communication plans,
what-if analysis to identify key deliverables’ worst-case scenarios and how those and unless we realize that the needs of
situations would affect dependent activities along the critical path. a virtual team are the same as those of
a face-to-face team.”
The team divided the project into work packages (engineering, procurement,
construction, etc.). Within a package, each task was broken down to the individ- —Fernando Contreras, PMI-RMP, PMI-SP, PMP,
Project Management & Engineering Services,
ual activity level. Pump and dome roof supply, for example, were deemed critical. Lima, Peru
March 2012 PM NETWORK 63](https://image.slidesharecdn.com/pmnetwork201203dl-1330663103607-phpapp02-120301223951-phpapp02/85/Pmnetwork201203-Dl-65-320.jpg)
![Addicted to Technology
Project managers today have an array of scheduling tools at
their disposal. But never let yourself be utterly dependent
upon software, warns Patricia Di Cunto Bracco, PMI-SP,
PMP, project manager in the project management office of
Banco Bradesco S.A., a bank in São Paulo, Brazil. “We must
remember that the use of tools is fundamental to support-
ing the project manager, but interpretation of results is up
to the capability and experience of the professional.” [caSE STudy]
SAving A ProjecT
ThAT ByPASSed due
diligence
Team members were responsible for closely The challenge: A project team building an industrial
monitoring all supplier progress—and, in at least plant in Thailand did not plan for country-specific front-
one case, terminating a poorly performing subcon- end requirements, and the initiative was quickly thrown
tractor (having Belleli execute the work directly). off schedule. Bob Albers, owner and managing director
Temporary pumps were used until the perma- of Project Solutions International, a construction and
nent ones arrived. To mitigate risk, the team hired energy project management consultancy in Bangkok,
a third party to inspect the pumps before delivery. Thailand, was brought in to readjust the schedule and
These extra measures raised the project con- get the US$65 million project back on track.
struction cost by 10 percent, Mr. Raj says, but his Once constructed, the plant will be used to refine
organization willingly absorbed the increase to win the byproduct of a manufacturing process into a sell-
phase two of the project. able commodity. But the client had not considered that
the process’s environmental consequences might make
End result: The Dutch subcontractor finally deliv- obtaining land for the plant challenging. The team had
ered the pumps in December 2011, and although also underestimated how long it would take to secure
the project missed the 13-month deadline as well, tax, machinery and product import and export incentives
stakeholders were forgiving because the team had from the Thai government.
kept them abreast of the situation, Mr. Raj says. “Something that a lot of companies get into when
“Transparency in communication gained the trust they go to work in a foreign country is they don’t under-
of stakeholders,” he adds. “Now they are negotiat- stand the bureaucracies that they have to deal with,” Mr.
ing with us for the next phase of the project.” Albers says.
Missing the original commitment prompted
better communication between the company’s Scheduling Techniques: First, Mr. Albers worked on con-
commercial and project management units. vincing the home office in the United States to accept
“The project management department gave that the unanticipated complications made hitting the
feedback to our project director that it’s not good original completion date unfeasible.
to commit unpractical dates to the client,” Mr. Raj Meanwhile, he and his team used project risk- and
says. “This was taken very seriously in phase two.” resource-analyzing tools to come up with a new schedule—
The project team gave the worst-case scenario this time accounting for local conditions.
project delivery date, which was accepted by the
client. End result: The project team found that by reducing
engineering and construction durations, it could deliver
Scheduling Takeaway: Communicate across within six to eight weeks of the original date. Contrac-
departments during the planning phase to prevent tors would have to take measures to complete the same
commitment to an unrealistic schedule. Especially amount of work in less time, which naturally raised their
useful for fast-tracked projects, critical chain helps costs. Mr. Albers explained the situation, and the client
break down tasks essential to hitting deliverable signed off.
dates. Inform stakeholders of worst-case scenarios
so any delays don’t come as a surprise. Scheduling Takeaway: Perform due diligence on all of
the factors that could affect the schedule—especially
when working in a country with different regulations. PM
64 PM NETWORK March 2012 WWW.PMI.ORG](https://image.slidesharecdn.com/pmnetwork201203dl-1330663103607-phpapp02-120301223951-phpapp02/85/Pmnetwork201203-Dl-66-320.jpg)
![HelpDesk
The Rise of VoIP
Voice over Internet protocol can put an organization on the road to a unified communications strategy.
by Peter Fretty
When assessing the factors that contribute to a project’s success, been no exception.”
a team’s ability to effectively communicate repeatedly surfaces to VoIP for mobile devices and session initiation protocol (or SIP
the top. Many times, it’s the technology that serves as a crutch— trunking—a service that allows organizations to use VoIP without los-
especially when legacy voice systems are end of life. ing the many features of its phone system) are surfacing as key areas
“For many organizations, the handwriting has been on the wall for of interest.
quite some time,” says Art Schoeller, principal analyst with research In addition, the growing importance of unified communications
firm Forrester in Westport, Connecticut, USA. among organizations as a critical tool to enhance business productiv-
Over the past decade, continued evolution has been the only con- ity is having a profound impact on the VoIP services market.
stant within the world of corporate telecommunications, from the VoIP helps reduce expensive charges for project team members
ongoing mobile explosion to the steady growth of voice over Internet using mobile devices while traveling in other countries.
protocol (VoIP) to unified communications deployments designed to “Instead of making the call incurring roaming charges, team
integrate all forms of communication (video, voice and data) into a members could tap into a WiFi connection and use a ‘softphone’ like
single point of contact, whether onsite or mobile. Skype,” Mr. Schoeller says.
The trend of organizations outsourcing their communications VoIP truly excels when large organizations are ready to move to a
infrastructure has taken off in earnest, says Subha Rama, customer centralized model for voice instead of using private branch exchange
research manager at Siemens Enterprise Communications in Oyster (PBX) configurations at each site.
Bay, New York, USA. “The migration to Internet protocol tech- “Ultimately, this can lead to a cloud model,” Mr. Schoeller says.
nologies is in full swing in the enterprise communications market, “Plus, organizations are looking at moving to unified communica-
mainly because of the significant cost savings,” she says. “Given tions, incorporating instant messaging (IM), presence [which shows
the economic instability in many of the global markets, companies if someone is on the network and available] and web conferencing,
are looking at technologies and delivery models that would sig- which is much more geared towards VoIP instead of traditional time-
nificantly reduce capital expenditures and result in sustained ROI. division multiplexing environments.”
Widespread use has led to the evolution of cloud-based delivery When properly deployed, VoIP can be the stimulus and backbone
models for core enterprise applications, and communications has for a solid, unified communications deployment. “Tools such as inte-
Mobile VoIP VIPs
VoIp SerVIce VIdeo MobIle operatIng SySteM coMpatIbIlIty group VIdeo MeSSenger detaIlS
Skype Yes PC, Mac, Android, iOS Only with premium Yes Free download.
Premium service
enhances features.
Google Voice Yes PC, Mac, Android, limited on iOS Yes Yes Requires Google
email account for full
functionality.
SipDroid Yes Android No No Requires Google Voice
number. Ongoing
development.
Fring Yes iOS or Android Yes Yes Free download.
GrooVe IP No Android No No App costs US$4.99.
Requires Google Voice
number.
66 PM NETWORK March 2012 WWW.PMI.ORG](https://image.slidesharecdn.com/pmnetwork201203dl-1330663103607-phpapp02-120301223951-phpapp02/85/Pmnetwork201203-Dl-68-320.jpg)
Pmnetwork201203 Dl
- 1. PM MARCH 2012 VOLUME 26, NUMBER 3 NETWORK MAKING PROJECT MANAGEMENT INDISPENSABLE FOR BUSINESS RESULTS.® HOW SAFE IS THE CLOUD? STAKEHOLDER REALITY CHECK WHAT TO KNOW BEFORE YOU TAKE THE JOB GANTT AS MOTIVATOR LEADERSHIP WITHOUT AUTHORITY AIRPORT PROJECTS TAKE OFF MANAGING RISK WITH NUMBERS
- 3. Lead March 2012 | Volume 26, Number 3 38 Risk by the Numbers No one can see the Patricia Galloway, PhD, PMP, Pegasus- future. But quantita- Global Holdings tive risk management Inc., Cle Elum, can help make it a Washington, USA little clearer. By Sandra A. Swanson
- 5. Features MARCH 2012 | VOLUME 26, NUMBER 3 30 Who’sdata into the handsCloud? party Putting Guarding the of a third can save money, but the projects raise a host of security concerns. Here’s what every organization needs to know. By Sarah Fister Gale 44 Perception vs. Reality familiar? “It’s just a little tweak.” Sound Here’s some advice on breaching the disconnect between a stakeholder’s perception and how things really stand. By Michelle Bowles Jackson 48 Massits mainframe becomes obsolete, a When Migration city must instigate a program to move its departmental IT systems to a new server. By Peter Fretty 56 Six QuestionsJobAsk Before You Take the to Even in today’s improving labor market, it’s tempting to jump at any job offer. But while a steady paycheck is an honorable goal, it shouldn’t come at the cost of job satisfaction, a healthy career trajectory or a comfortable corporate culture. By Cindy Waxer 48 60 Timecase studies reveal the winning Four Tamers strategies project professionals used to combat time constraints—especially as circumstances changed. By Lisa Tomcko 30 44 56 60
- 7. 11 also March 2012 | VOLUMe 26, NUMBeR 3 Making project ManageMent indispensable for business results.® thE PulSE 8 Emerging Markets Ready for Takeoff Developing nations see airport project boom alSO In thIS ISSuE 15 11 More Projects, Freezes Persist 7 Feedback IT spending increase doesn’t Revisiting earned value necessarily mean more jobs management 13 East Africa Looks for VOICES 18 Metrics Strength in Numbers Stats on the CIO agenda, Five nations hope partnership 20 Peer to Peer online shopping and clean will bring economic success Leadership Without Authority technology Pat Weaver, PMI-SP, PMP and 14 Chicago Rail Project Puts a Roberto Guandique 66 Help Desk Lot on the Line The Rise of VoIP High-profile revamp aims to 23 From the Top By Peter Fretty update transit route Regular Checkups Teresa Knudson, PMP, Mayo 68 Marketplace 15 Sensing Bridge Problems Clinic, Rochester, Minnesota, Books that cover the Before It’s Too Late USA “bagel metaphor” and 20 Projects seek to curb project management offices infrastructure disasters 26 Project Perspectives Can This Project Be Saved? 71 Directory of Services 16 Little Green Schoolhouses Project management U.S. schools ramp up 28 In the Trenches resources sustainability measures Unclear on the Concept By Grace Willis, PMP 72 Closing Credit Japan’s 40-year nuclear cleanup COlumnIStS 24 Trend Watch Leadership Counsel By Roberto Toledo, MBA, PMP, Contributing Editor 24 25 What’s at Stake The Gantt You Might Not Know By Lynda Bourne, DPM, PMP DOWNLOAD THE PM NETWORK APP and read the magazine on your iPad, iPhone or iPod Touch. 28
- 8. NETwORk 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 PMI Staff contrIbutIng edItorS 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- Vice President, Brand Management Alfonso Bucero, PMP, Bucero PM Con- town Square, PA 19073-3299 USA. Phone +1 610 356 4600, fax +1 610 482 9971. Lesley Bakker; lesley.bakker@pmi.org sulting The mission of PM Network is to facilitate the exchange of information among professionals in the field of project and program management, provide them with practical tools and techniques, Publisher Sheilina Somani, PMP, Positively and serve as a forum for discussion of emerging trends and issues. 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- 9. Feedback EVM, Revisited Facebook I am writing in response to Roger Kent’s comments in the Feedback section of the can a project manager become the January edition (page 6). I am amazed that a PMI publication would print—even next ceo? in a Feedback column—something that demonstrates such a basic misunder- standing of professional project management. A better question is: How is a CEO not a project manager? Mr. Kent seems to believe that understanding “percent complete” is somehow —Jefferson Nicholson unobtainable. Professionals believe that knowing what has been completed on a project, in terms of tangible deliverables, and expressed as a percentage of I feel that being a project manager is a great path to planned completion to date, is critical. executive leadership. As a project manager, you’re Mr. Kent fails to understand that if these numbers are made up, he has bigger exposed to many different challenges and varying tech- problems than a nologies, and you are typically a master communicator failure to apply and problem solver. Marry that with some strategic The notion that EVM only works earned value man- thinking, and you are on your way. in the context of “very large, agement (EVM). structured projects that last —Rick Roe Likewise, tasks that over a year and spend more than are “95 percent US$1 million” is nonsensical. join the discussion at complete…for a facebook.com/PMinstitute. long time” are not making any progress while expending money. It doesn’t take EVM to understand this, though EVM techniques will tend to highlight these is- sues before they are uncorrectable. Voices on Project ManageMent blog Finally, the notion that EVM only works in the context of “very large, struc- tured projects that last over a year and spend more than US$1 million” is nonsen- //Poll// sical. EVM works for any project that has a budget, can associate that budget with to what degree have actual work, has a way to measure the work accomplished and compare it with you noticed increased planned accomplishments, and captures actual cost. These are the basis of having schedule compression on projects at your a credible project plan and a credible project management method. organization? —Saul Ackovitz, PMP, Reston, Virginia, USA Extensive 43.5% We want to hear from you. Send letters to pmnetwork@imaginepub.com. Some 43.5% Opinions expressed in Feedback are not necessarily those of PM Network. Not at all 13%
- 10. thePul US$3.1 120 million US$150 billion The amount Brazil budgeted to rebuild its The number of annual passengers the Al Maktoum International Airport in Dubai, United Arab Emirates, will be able to billion The amount slotted for airport airport infrastructure to prepare for the handle when it’s completed in 2017 projects in developing markets 2014 World Cup and 2016 Olympics 8 PM NETWORK March 2012 WWW.PMI.ORG
- 11. se EmErging markEts rEady for takEoff high-flying economies in emerging markets mean an influx of people coming and going—further tax- ing an already inadequate airport infrastructure. Governments from Vietnam to Saudi arabia to Kenya are respond- ing with a fleet of megaprojects to revamp ailing airports or start new ones from scratch. roughly US$150 billion is slotted for airport infrastructure and expansion proj- ects in developing regions, accord- ing to arabian reach. Nearly one-third of that money is being spent in booming Middle East markets. That lineup includes the luxurious US$10 billion al Mak- toum International airport in IMagE cOuRTEsy Of fOsTER + PaRTNERs Queen Alia International Airport, Amman, Jordan March 2012 PM NETWORK 9
- 12. thePulse Dubai, United Arab Emirates, which will be able to handle 12 million Up iN The air tonnes of annual cargo capacity and 120 million passengers upon A sampling of airport completion in 2017. In neighboring Qatar, New Doha International megaprojects around the Airport is due to open later this year in the capital; it’s billed as the globe: first global project designed with the new Airbus A380 in mind. King abdul aziz Struggling for a return to normalcy after years of war, Iraq international, Jeddah, recently announced it will build a new airport in Mansuriya, with Saudi Arabia project planners working under the protection of Iraqi security al Maktoum forces, according to AviationPros.com. Karbala also plans to seek international airport, The NighT bids later this year for an airport capable of handling 5 million pas- Dubai, United Arab Emirates ShifT sengers a year. New Doha international Almost all airport revamp Not all teams face such extreme conditions, of course. But emerg- airport, Doha, Qatar projects have to take place ing markets often present daunting project environments plagued without disrupting day-to-day Daxing international operations. by a lack of project management expertise and woefully inadequate airport, Beijing, China Global engineering giant infrastructures. At the same time, teams are under extreme time Bechtel is currently manag- pressures to accommodate growing airport traffic. Dubai international ing an expansion project airport (Concourse 3), at McCarran Airport in Las In response to a 15 percent jump in air traffic at Amman, Jor- Dubai, United Arab Emirates Vegas, Nevada, USA. To avoid dan’s Queen Alia International Airport, the government launched interfering with the airport’s a major expansion project. The renovated airport will feature a 500,000 annual flights—and associated stream of baggage high-tech roof consisting of photovoltaic canopies that harness sun- light, providing renewable energy and natural ventilation. Slated for tractors, passengers and air- line employees—the project completion later in 2012, a new US$600 million terminal should be Although team must juggle construc- tion equipment, materials and able to handle 12 million passengers a year, nearly three times the 56 percent up to 2,000 workers. In response to this chal- current capacity. of U.S. com- lenge, Bechtel shifted some China’s four largest airports—including Hong Kong’s—each saw passenger traffic increase by at least 10 percent, according to panies plan of the construction activities to the early-morning hours, Airports Council International. To accommodate that influx, the to increase when the flight schedule was Chinese government is building Daxing International Airport near tech spending, less aggressive. “Obviously, there is always Beijing. Scheduled for completion in 2017, the nine-runway facility workers can a potential cost impact associated with nighttime will have a capacity of 200 million, staking its claim as the busi- est airport in the world. The new project would also relieve some expect average working,” says Don Wright, of the pressure on the Beijing Capital International Airport. The raises of just Bechtel’s project manager on the Las Vegas expansion. “We facility is currently over capacity despite construction three years 2.8 percent. try to reduce nighttime work ago of Terminal 3—which by itself is 17 percent larger than London, Source: InformationWeek’s Outlook 2012, as much as possible, and we England’s Heathrow Airport. and Computer Economics’ 2012 IT Salary would always advise contrac- Report tors if overtime was expected or required so they could plan Will Brazil Be Ready? accordingly. Often, the con- The 2008 Summer Olympics provided some of the impetus for struction costs for overtime Beijing’s Terminal 3, and preparation for the 2014 World Cup and were significantly less than the costs of disrupting pas- 2016 Olympics is putting host Brazil in a similar spot. Hundreds of sengers and airlines during thousands of visitors are expected to descend for each event, putting daytime hours.” more strain on an overburdened airport infrastructure. So far, the US$3.1 billion revamp has had a bumpy flight. In early 2011, the Brazilian Audit Court criticized government officials for missing deadlines, not controlling costs and lacking transparency. Even soccer legend Pele, an ambassador to the World Cup, piled on, saying “Brazil is not ready.” An upgrade of the Viracopos-Campinas Airport near São Paulo suffered a significant schedule setback after project planners failed to obtain necessary environmental licenses. 10 PM NETWORK MaRch 2012 WWW.PMI.ORG
- 13. Delays in thebidding process also hampered how to schedule, given the rigid deadlines and construction work at northeastern Brazil’s busiest booming traffic. “Brazil has a short timeframe airport, in Salvador. to deliver significant capacity and efficiency Experienced multinational partners are look- upgrades to their airport infrastructure,” she says. ing to help, drawing on their earlier experiences Because the government requires consor- with similar ventures. ICN Gateway, a network of tia tendering for concessions at the airports Australian construction companies and suppliers, in Guarulhos, Campinas and Brasilia to have is looking to fill that role in Brazil—again with at least one team member with experience in the Olympics as a common thread. The company operation of airports with more than 5 million is going in armed with experience preparing the passengers per year, most Brazilian consor- country’s infrastructure for the Sydney Olympics tia will need a global partner in their team, in 2000 and Melbourne’s 2006 Commonwealth Ms. Costa-Wong says. Likewise, she says Games. multinationals hoping to get a foot in the door To land any large airport contract, companies in Brazil will benefit from partnering with local need to prove their project management exper- firms. tise, says Candida Costa-Wong, ICN’s interna- If emerging markets can manage the myriad tional business capability adviser in Melbourne, challenges that airport projects pose, the sky’s the Victoria, Australia. Companies also must know limit. —Louis La Plante IT Job ouTlook: More Projects, Freezes Persist U.S. companies plan to launch more IT projects in 2012—but that doesn’t necessarily mean a jump in job openings or salaries. Even as a talent war rages in Silicon Valley, career prospects remain sluggish overall. Infor- mationWeek’s Outlook 2012 report found that 56 percent of the 605 U.S.-based tech profes- sionals surveyed planned increased tech spend- ing, and three-quarters reported heightened demand for new IT projects. However, the survey also found that hiring freezes will persist for nearly one-third of companies, and 36 per- cent said they’ll only fill openings for existing positions. The survey posits that outsourcing, virtualization and cloud computing are allow- ing companies to get by with smaller staffs. Overall IT compensation also remains flat, according to a tracking survey by Janco March 2012 PM NETWORK 11
- 14. thePulse Different Skills, Different Fates Not all IT project professionals computing skills will have no and oil and gas sectors—are are mired in a soft job market. trouble finding work. struggling to fill roles, he says. “In the IT world, there are IT project managers frus- “The ideal mix is someone always skill shortages in the trated with the U.S. market who is bilingual with a project growth technologies, and may also want to look beyond management background and many IT organizations have no their home borders. knowledge of finance or engi- choice but to pay up for those “Many clients come to us neering,” Mr. Shanahan says. skills or turn to service provid- who are developing projects In Brazil, IT project man- ers for in-demand expertise— worldwide, and they’re looking agers who speak English, and pay a premium,” according for project managers who can Portuguese and Spanish can to Computer Economics’ 2012 run big integrated projects,” virtually write their own tick- IT Salary Report. says Keric Shanahan, Experis, ets, he says. “It’s taking 60 to Dice.com predicts that Atlanta, Georgia, USA. 90 days to fill many of these IT professionals with .Net, Companies in Brazil and high-tech roles, and the more mobile application develop- India—particularly in the specific the request, the longer ment, virtualization and cloud finance, mining and metals, it takes.” Associates and eJobDescription.com. The experience should find opportunities. Proj- total mean compensation for IT professionals ect management ranked number five on IT across North America increased only 0.81 per- recruitment website Dice.com’s list of priority cent last year to US$78,229 from US$77,604 skills to hire for 2012, for example. “The best at the beginning of 2011. And even that came IT project managers looking to build their opportunities with a major caveat: The bump only put com- marketability should focus on honing their require pensation back to January 2008 levels. business analytic skills and demonstrating people who Overall, 2012 doesn’t look all that promis- ing on the salary front. Computer Economics’ the strategic value they’ll bring to a project, says Keric Shanahan, PMP, director of global can wear 2012 IT Salary Report revealed that the aver- project management at Experis, an engineer- that business age pay raise for U.S. IT workers will be a less- ing, IT and finance resourcing firm in Atlanta, hat and not than-dazzling 2.8 percent, with little variance Georgia, USA. only run a for experience or position. “The best opportunities,” he says, “require Despite the mediocre market, project people who can wear that business hat and not project, but professionals with the right combination only run a project, but justify the requirements justify the of technical skills and project management that go into it.” —Sarah Fister Gale requirements that go Down and Out into it.” IT employment in the United States remains flat. EmploymEnT (in Thousands) —Keric Shanahan, PMP, Experis, Atlanta, Georgia, USA 3,200 3,000 2,800 2,600 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 u.s. naTional novEmbEr EmploymEnT for iT by yEar Source: U.S. Bureau of Labor Statistics/Janco Associates 12 PM NETWORK March 2012 WWW.PMI.ORG
- 15. East Africa Looksfor Uganda Kenya Strength in Numbers Rwanda Burundi More than three decades after its first attempt Not everyone is quite so bull- Tanzania Indian Ocean fizzled, the East African Community (EAC) is ish on the prospects of the EAC once again positioning itself as an economic pow- becoming a new project hot spot— erhouse in Africa. By combining forces, Kenya, especially within the hoped-for schedule. Rwanda, Tanzania, Burundi and Uganda aim to The EAC leadership’s timeline for pull in investment to support and sustain eco- regional integration is highly unrealistic, says nomic growth—and projects—across the region. Mark Bohlund, senior economist, Sub-Saharan The EAC was first founded in 1967, but dis- Africa at IHS Global Insight, London, England. banded 10 years later due to intense political “The East African Common Market Protocol is infighting. It was revived in 2000, and in recent nowhere near implemented, and when the leader- years, the consortium has seen steady economic ship set those targets, they took little notice of their growth. Combined real GDP increased 5.9 percent ability to meet them,” he explains. in 2010, compared to a 4.9 percent global rate. The European Union took close to 50 years to In 2012, the World Bank predicts EAC econo- achieve similar results, he says, “and they had supe- mies will expand between 5 and 7.6 percent, with rior capacity during that time.” Rwanda and Tanzania leading the pack. The EAC region is also under renewed pres- That kind of growth is a powerful step toward sure to deal with rising security issues, including the EAC’s goal of establishing a common currency piracy, cyber crime, terrorism, human trafficking Traffic this year and forming a political federation in 2015. A single currency—patterned after the euro— and money laundering. Beatrice Kiraso, EAC deputy secretary general in charge of politi- Jams Stall could ease regional companies’ concerns about cal federation, has said she’s worried that the Growth? exchange rates and spur project activity. threats, if left unaddressed, could greatly under- Whether project investors come or not could depend on The group has already opened up borders of all mine regional integration. the ability of East Africa Com- member states for labor and capital, and has a cus- There are also economic realities to contend munity countries to address toms union, common market, legislative assembly, with. Burundi remains one of the world’s poor- their abysmal infrastructure. Investments in infrastructure bank and court. There are even calls to let South est nations, still recovering from the wounds of a in Sub-Saharan Africa have Sudan and the Democratic Republic of the Congo decade-long civil war. averaged about US$10 billion join the bloc. Still, Mr. Bohlund says the nation has made per year, which is only half of what is needed to support As things stand, the efforts have sparked a progress in improving its business environment sustained economic growth, jump in intraregional trade from US$1.8 billion over the past year; the World Bank ranked it eighth according to the World Bank in 2005 to US$2.7 billion in 2008, according to a on its 2012 list of the top business reformers. Group. report in Financial Times. “The EAC is the fastest- Rwanda, too, has made tremendous strides Port and transportation network projects could make growing of all the Africa regional economic com- in improving its business landscape. The World or break the community’s munities,” Donald Deya, CEO of the Pan African Bank’s Ease of Doing Business index ranked the future, argues IHS Global Lawyers Union, told the U.K. financial newspaper. country 45th in 2012, taking into account 10 cat- Insight’s Mark Bohlund. Projects such as the mas- The potential for even more growth is signifi- egories, including ease of securing construction sive retrofit of the dilapidated cant: The EAC nations have more than 133 million permits, access to electricity, credit availability and Kenya-Uganda railways by people, with a combined GDP of US$80 billion. protection for investors. the Rift Valley Railways con- sortium must be completed “We want to make business easier for the “This makes Rwanda attractive for foreign for the region to sustain any business community and to also make life easier investors in spite of its small size and lack of economic growth, he says. “If for East Africans,” Owora Richard Othieno, head natural resources,” Mr. Bohlund says. “Many com- they are successful with these of the EAC’s Department of Corporate Com- panies can use Rwanda as a base for project opera- kinds of projects, it should have large implications for munication and Public Affairs, told Public Radio tions due to its superior business environment.” the cost of doing business in International. Kenya, on the other hand, ranked 109th, falling this region.” March 2012 PM NETWORK 13 PMN0312 1-17.indd 13 2/22/12 11:46 AM
- 16. thePulse threepositions from the year before. But its advanced economy, size, location and in neighboring countries. “Tanzania is afraid thriving private sector give it many distinct advantages over its peers, Mr. Bohlund Kenyans will buy up its land, and Uganda fears says. Its strong banking sector and prime location on the Indian Ocean make it the Kenyans will take all their skilled labor jobs,” Mr. business and transportation hub for the entire region. “If you want to go to East Bohlund says. Africa, the easiest way is to go through Kenya,” he notes. Yet part of the bloc’s power is based on making Kenya may in fact be too strong. Its advanced economy could create tension the most of each member’s individual strengths. among other members, particularly when it brings its own citizens to run projects Both Tanzania and Uganda, for example, have huge oil deposits, making them attractive destina- tions for mining and energy projects. In January, Real GDP Growth Rates Tanzania announced that it had begun working on strategies to prepare the economy to better Partner State 2005 2006 2007 2008 2009 2010 accommodate natural gas investments. The gov- Burundi 0.9 5.5 3.6 4.5 3.5 3.9 ernment is planning a major project to construct Tanzania 7.4 6.7 7.1 7.4 6.0 7.0 a gas pipeline from Mnazi Bay in Mtwara to Dar Uganda 10.0 7.0 8.1 10.4 3.9 5.6 es Salaam to be operational by the end of 2012, Kenya 5.7 6.1 7.0 1.7 2.6 5.6 according to Daily Monitor. Rwanda 7.2 6.5 7.9 11.2 6.1 7.5 EAST AFRICA 6.2 6.4 6.7 7.0 4.4 5.9 They may have joined forces, but each nation is wisely carving out its own niche. Source: Partner States Note: Rates for Uganda were computed using GDP in local currency —Sarah Fister Gale RIDERS Chicago GOAL: Complete the project without alienating commuters Rail Project CHALLENGE: The team has already exceeded the federally required efforts to inform the public during the planning and early construction stages. Follow- Puts a Lot ing the model of a decade-long CTA project to reno- vate the Brown Line completed in 2009, the Red Line team holds frequent community meetings. On the Line “Input from public stakeholders—community leaders, elected officials, residents and transit riders—can inform decisions about project scope, scheduling and phasing,” says CTA spokeswoman. Every weekday, more than 250,000 rail Catherine A. Hosinski. commuters ride the Red Line that connects the north and south sides of Chicago, Illinois, USA. Running 24 hours a day, seven days a week, it’s the city’s busiest line. Given that kind of traffic, the Chicago Transit Author- ity (CTA) decided to launch a US$1 billion mega makeover that covers track replace- TRACK ment, station upgrades and power system GOAL: Replace dilapidated tracks over the approximately enhancements. Now the agency just needs 10-mile (16-kilometer) stretch between 18th and 95th streets to eliminate so-called “slow zones” where trains to figure out how to do all that within bud- must operate at 15 miles (24 kilometers) per hour, instead get, on schedule—and with minimal disrup- of the optimal 55 (89) tion to the city’s stakeholders. CHALLENGE: The Red Line travels through residential and business areas, restricting the times that crews can labor on the project. And because the line runs at grade on the median of a major expressway, work must be scheduled within space limitations and coordinated with the state transportation department that oversees the expressway. 14 PM NETWORK MARCH 2012 WWW.PMI.ORG
- 17. SENSING BRIDGE loads, weather, and other issues that cause damage or deterioration.” The issue is figuring out which bridges are fine and which ones PROBLEMS BEFORE need repair. Making the wrong choice could lead to sudden closure of a criti- IT’S TOO LATE cal transportation link—or worse, a collapse. In 2007, the eight-lane Interstate 35 bridge over the Mississippi River in Minneapolis, Min- nesota, USA, collapsed during evening rush hour, killing 13 people Cash-strapped U.S. municipalities are playing a dangerous game and injuring 145. It was the fifth-busiest bridge in the state, and was with aging bridge infrastructure, often postponing maintenance proj- out of commission for more than a year. ects until absolutely necessary. But they now have a new weapon: Using sensors can help municipalities better manage risk and align high-tech tracking sensors that can better pinpoint those bridges in maintenance funds with the bridges in the greatest need of repair. need of immediate renovation. “Traditional metrics rely on visual inspections,” Dr. Sanayei says, “Using these sensors, we can increase safety, reduce risk and save but that information should be complemented with sensors placed millions of dollars annually by focusing investments on those bridges around the structure to track strains and stresses associated with that require fixing,” says Masoud Sanayei, PhD, a professor in the everyday usage that cannot be easily found with visual inspections. department of civil and environmental engineering at Tufts Univer- Dr. Sanayei and his team are completing a pilot project to test the sity in Medford, Massachusetts, USA. technology on a bridge in Barre, Massachusetts. With support from “Just because a bridge is old doesn’t mean it will collapse,” he the National Science Foundation, the team installed more than 200 explains. “It depends on how well it’s been built and maintained, traffic sensors on the span. The data collected will then be compared to a STATIONS GOAL: Revamp aging and sometimes run- down stations, including adding elevators and rehabbing the platform and mezzanine at the 69-year-old Clark and Division stop CHALLENGE: The work could entail multiple and simultaneous speed restrictions, single- track operations and temporary track closures— all while the station stays operational. That means the project team must develop not only service plans that reflect the multiple construc- tion projects, but also new service contingency plans for any unplanned interruptions, says Ms. Hosinski. IMAGES COURTESY OF WIKIPEDIA SUBWAY GOAL: Upgrade the ventilation system on the underground portion of the Red Line that runs through downtown CHALLENGE: The bulk of Chicago tourists visit sometime during May through October—and most of them congregate downtown. Those additional passengers require the project team to schedule accordingly and communicate any changes. MARCH 2012 PM NETWORK 15
- 18. thePulse them is fairly small, whereas if the problem is left undiscovered it can lead to more costly problems.” Dr. Kalantari founded his company, Resen- sys—a startup funded by the University of Mary- land—to commercialize a technology that uses wireless sensors installed on bridges to track strain, IMaGE cOuRTEsy Of WIKIPEdIa vibration, tilt, temperature and other conditions. The devices transmit data to servers using cellular networks so bridge conditions can be tracked in real time. A central computer analyzes the data and instantly warns officials of possible trouble. In February, Dr. Kalantari wrapped up a pilot The Interstate 35 Mississippi River bridge after the 1 August 2007 collapse project, with support from the Maryland State Highway Administration, that used more than a baseline of what a healthy bridge looks like. dozen sensors to monitor conditions and measure Being able to more accurately assess risk and select bridge maintenance projects is structural parameters of highway bridges. After vital in a country where one in four bridges were deemed either structurally deficient 18 months of tracking results and conducting or functionally obsolete by the American Society of Civil Engineers. The organization follow-up evaluations, the project demonstrated called for a US$17 billion annual investment in 2009 (the last year for which figures are that every time the sensors detected an issue, the available), yet only US$10.5 billion is spent annually on bridge construction and main- location and scope of the problem detected were tenance projects. accurate. Sensors could help make the most of those limited funds. U.S. President Barack Obama has made a “The most up-front benefit of the technology is the cost savings in maintenance vigorous appeal for additional infrastructure projects,” says Mehdi Kalantari, PhD, research scientist at the University of Maryland spending, but the sensors could be another way to in College Park, Maryland, USA. “If you can discover issues early enough, the cost to fix bridge the gap. —Sarah Fister Gale Little Green Schoolhouses The next generation of U.S. students won’t just learn about in Wallingford, Connecticut, USA. The 31,325-square- sustainability—they’ll live it every day in the classroom. foot (2,910-square-meter) alumni-funded structure Schools across the country are looking to launch thousands targets LEED platinum status, and includes labs, of projects to retrofit or completely rebuild facilities in the adjacent greenhouses and 14 dorm rooms. Designed coming years. by Robert A.M. Stern Architects, the building will be “It’s a big goal, but it’s also a tremendous opportu- powered by a 250-kilowatt photovoltaic array, a nity to transform the entire design and construction roof-mounted solar water-heating system, a geother- Educational industry for schools, as well as the schools themselves,” mal heat pump, a water-recycling system and waste facilities says Rachel Gutter, director of the U.S. Green Building vegetable oil. have a higher Council (USGBC) Center for Green Schools, Washing- Slated to be operational by the 2012-2013 school year, percentage of ton, D.C., USA. the center will be home to roughly 20 students in a com- Progress has been steady. As of 2011, 2,292 schools from petition to maintain a net-zero environment. Students LEED-certified kindergarten through 12th grade had either registered or will not only be able to track their usage via a building green space become certified through the USGBC LEED (Leadership in dashboard, but on their smartphones as well, according to than any Energy and Environmental Design) program. That number Fast Company magazine. other was nearly double among universities, with 1,370 buildings Of course, not every school can line up project fund- market certified and another 2,982 registered. ing from generous alumni—so the up-front cost of new sector. One of the most ambitious is a US$20 million proj- construction or retrofits can be a tough sell to schools ect at Choate Rosemary Hall, an upscale prep school on a tight budget. However, Ms. Gutter says most 16 PM NETWORK March 2012 WWW.PMI.ORG
- 20. [metrics] The laTesT sTaTisTics, surveys and sTudies InsIde the CIO’s AgendA Where they’re spendIng more than half of CIos said their project investments would include: As most wIndows 7 server networK-Based dAtA CIOs are mIgrAtIOn vIrtualIzatIon seCurIty proteCtIon direct reports to 38% of CIos were plannIng to launCh data Center Con- of those, 67 perCent Intend to adopt server vIrtualIza- the CEO or have a seat at the solIdatIon projeCts In 2012 tIon. executive table, the 25% salary of those, 55 perCent are Imple- mentIng software and com- saId they’ll IntroduCe Cloud ComputIng as a servICe (saas). pensation needs to be in source: techtarget. results based on a survey of 2,642 global It professionals and business analysts published in january. line with the BOttOm LIne [that of] US$144,000 the average base salary of senior It executives in 2011 the busi- ness line leaders The portion of reporting IT executives who took on The portion of IT executives at that new roles in 2011 in pursuit who reported a decrease in level. 45% of greater compensation 17% compensation in 2011 —daniel m. ryan, CIo, City of Battle Creek, michigan, usa source: CIo/It strategy media group. results based on a survey of more than 1,700 global It executives and professionals conducted in november 2011. 18 pm networK March 2012 www.pmI.org
- 21. taken to the the CryStal Ball CleanerS 49% the portion of executives in developing mar- US$8.99 billion The global spending on clean kets who expected the global economy to get tech investments in 2011, a worse in the first six months of 2012 13 percent jump over 2010 39% the portion of executives in developing mar- kets who expected their own economies to get worse in the first six months of 2012 Source: Economic Conditions Snapshot, McKinsey Quarterly. Results based on a survey of 2,299 global executives across industries conducted in December 2011. The increase in clean tech investments in North America Career ConneCtionS + 30% - 92% of our U.K. program and project management practitioners have a LinkedIn account 30% The decrease in clean tech 55% of those had been approached investments about a job opportunity through the in Europe social media network in the 12 months and Israel prior to the survey Source: 2012 Arras People Programme and Project Management Census, Arras People. Results based on an ongoing survey of 1,000 U.K. project Source: Quarterly Investment Monitor Report, and program management practitioners who were actively looking for a new position in 2011. Cleantech Group Shopping networkS The average number of consumer online purchases per person per month: 90 perCent netherlandS: 2.6 Of ChINESE FranCe: 2.6 ONlINE China: 8.4 USa: 5.2 Uk: 4.3 ShOPPERS USE SOCIAl MEDIA. “Today’s global retailers have a huge opportunity to enhance the mechanisms necessary to keep up with shoppers who are demanding more customization in terms of delivery and returns, product choice and number of channels from which to choose.” Source: Customers Take Control, PwC. Results based on a survey of 7,005 consumers across three continents published in December 2011. March 2012 PM NETWORK 19
- 22. Voice Can you be a true project leader if you don’t have the power Peer to Peer embedded in an organizational hierarchy? Two project professionals discuss what it takes to be Leadership Without Authority Pat Weaver, PMI-SP, PMP: Some project managers are completely responsible for the on- time, on-budget performance of work—but many organizations refuse to give them any control over the people needed to do the work. The project manager is blamed for not achieving time and cost outcomes. This is a failure of organizational governance, which is the responsibility of executives, and it’s all too common. A project manager with brilliant leadership capabilities, managing 20 PM NETWORK March 2012 WWW.PMI.ORG
- 23. Pat Weaver, PMI-SP,PMP, is managing director of Mosaic Project Services pty Ltd., a project management training and con- sulting company in Melbourne, Australia. Roberto Guandique is an Atlanta, Georgia, USA-based partner at RTI (RealTech International Inc.), an IT consulting and training firm. and initiative. He or she does not need anybody to present the mantle of “authority.” Mr. Weaver: Leadership without management backup tends to create a mob on the rampage in one form or another. How- ever, far too many project managers rely on authority and have unhappy, unproductive workers in their team. The only way you become a true leader is if others decide to follow you. Your power, authority, position and management skills are largely to make decisions or aren’t irrelevant. Mr. Guandique: Yes, Mr. Weaver, nobody becomes a leader an effective leader. without followers. But the true leader does not want followers; he or she wants to teach others how to be leaders. When I teach our junior people, I am trying to teach them to become inde- pendent, to give them autonomy. What I am trying not to do upwards, can sometimes overcome these hurdles, but good is to have them depend on me to do what they are supposed to governance should be focused on removing those obstacles in do themselves. This might seem like a paradox, but I think that the first place. every leader wants that. Roberto Guandique: Neither authority nor position will make Mr. Weaver: Mr. Guandique, you’re correct—effective leader- you a leader. I see many professionals who, because they have ship is embedded in the motivations of the people who elect to been given authority by someone higher up, think they are lead- be your followers, and one of the key motivators is autonomy. ers. If that were the case, any fool with authority could be called Good followers and good team members are also good leaders in a leader. their own right or aspire to become good leaders. When I was new in my career, I thought you needed author- ity to be a leader, but not anymore. If a person needs authority Mr. Guandique: I have seen project managers who act domi- to lead, he or she is not a leader but a manager. A leader leads by neering in order to be in control. It’s sad—many of the more pure charisma, dedication, engagement, knowledge, experience experienced project managers are the ones who try to apply this March 2012 PM NETWORK 21
- 24. Those who relyon authority or position are the worst leaders—and the most common. —Roberto Guandique, RTI, Atlanta, Georgia, USA “behavioral leadership style,” and most of the time with negative results. Mr. Weaver: The fight to climb up the corporate ladder in most Western corporations and bureau- cracies, such as those in the United Kingdom, the United States and Australia, does encourage selfish behaviors. who people are following. Following can take many forms: the Then, after succeeding in the corporate jungle, those same person who is asked for advice to solve complex problems, the people must become holistic, generous and supportive to be person who is asked to help in negotiations or discussions, the really effective top-level executives. It’s a hard task, and only a person who is listened to in a meeting. few succeed. Leaders do not need to rely on power or authority; in fact, leaders can manage without formal authority if their followers Mr. Guandique: If a leader is constantly living to the “Super- are happy to follow. man syndrome” created by some societies, he or she burns out and the organization collapses. Leaders need to create other Mr. Guandique: Sometimes the “I have 30 years’ experi- leaders so they can take care of other personal and professional ence and I have seen it all” mentality is the cause of failed matters. leadership in projects as well. We need to renew the way we A leader can be anybody who shows initiative to lead. Leader- approach leadership in project management. Young, inexpe- ship can be taught, but not everybody who goes to leadership rienced project managers are more open to new paradigms, training school becomes a leader. He or she must know the and eventually I believe they will be the responsibility and sacrifice of leading. ones who will change the approach to leadership. Mr. Weaver: Leadership can be taught—but not in school. Core traits include integrity and trust, which are innate, as well as great Mr. Weaver: I completely disagree with communication skills and efficient management capabilities, par- Mr. Guandique on this point. Many of the Join the ticularly delegation. The last three can be taught or improved. important traits that help leaders lead tend discussion in to accumulate with age. Where older people the Career Central Mr. Guandique: With so many employees, managers and “wan- can be at a disadvantage is cultural—what group on nabes” pretending to be leaders these days, how do we recognize worked 20 years ago probably won’t be LinkedIn. a true leader? much use today. In my opinion, a leader does not try to blind us with his or But the traits of any effective leader her brilliance; a true leader makes us see ourselves so we can get include a burning desire to keep on learn- better. Few project managers I know have shown this capability. ing, linked with flexibility, adaptability and the ability to Those who rely on authority or position are the worst leaders— develop rapport with and motivate their followers. Stuck-in- and the most common. the-mud project managers who want to do the same things they did 10, 20 or even 30 years ago aren’t leaders—and aren’t Mr. Weaver: If someone has to tell you they are a great leader, very good managers. Great leaders are continually adapting to they probably are not! To identify a leader, you just have to see the needs of the situation and the needs of their followers. PM 22 PM NETWORK March 2012 WWW.PMI.ORG
- 25. Teresa Knudson, PMP,Mayo CliniC, roChesTer, MinnesoTa, usa voices From the Top Regular Checkups T o keep ahead of the constant changes in the health- care sector, the world-renowned Mayo Clinic is rely- ing on robust project practices led by its enterprise portfolio management office (EPMO). Teresa Knudson, PMP, launched the EPMO after years of working with senior leaders to develop project manage- ment practices. Four years later, the prognosis is good. The ency. With the new portfolio system, every project must align to one of the eight portfolios to indicate ownership and to ensure that we are investing our resources in the projects that provide the most value to our patients. This streamlines and reinforces both the ownership and approval processes, and avoids projects working around the system. EPMO has provided better oversight of the project portfolio, Has the organization’s approach to greater transparency over project progress, and a formal project approval shifted? structure for portfolio and project management that ensures In the past, there were various avenues for project approval these processes align with the clinic’s strategic goals, she says. and funding, with inconsistency in the decision-making. “In the past, everyone adapted project management to When we introduced standardized processes, the number their own needs. Now we use A Guide to the Project Man- of new projects seeking approval dropped from about 80 agement Body of Knowledge (PMBOK® Guide) and internal to about 40 in the first year as project sponsors realized the and external best practices as a basis for our project manage- need for more information to support their business case. ment practice,” Ms. Knudson says. “This hybrid approach Leadership, in turn, had a better understanding of the proj- has allowed us to follow a common methodology, structure ects being proposed, which helped the prioritization and and processes in all areas of our organization.” decision-making. As a result, 16 of the 40 proposed projects were approved. What was the EPMO’s initial mission? Now there’s much more visibility and structure. Every- For us, the Our first goal was to gain a better awareness of the projects one completes the same four-page project charter docu- best approach that were underway and ensure that they were properly ment that includes core data about the project goals, value, was to utilize aligned to our organizational objectives. alignment with strategic plans, objectives, risks, and required a top-down We had an initial listing of about 26 projects, but those costs and resources. implementa- were only the ones requiring US$5 million or more in capital tion process investments. After interviewing managers across the orga- What advice would you offer other that focused nization, we discovered there were more than 400 projects organizations about launching an EPMO? on the port- ongoing. Some were listed twice, by different stakeholders; As you begin, keep it simple. For us, the best approach was folio man- some were listed as active even though they were completed; to utilize a top-down implementation process that focused and other projects had the same goals but were being deliv- on the portfolio management needs of our senior leader- agement ered multiple ways by different teams. ship. This provided immediate value to our senior leaders, needs of It became obvious very quickly that we needed better who have since been able to reinforce its use across the our senior oversight. organization. leadership. The most important advice, however, is that you need to How did you increase oversight? continually look for ways to provide the most value to your We broke the portfolio of 400 projects into eight enterprise organization. This requires a good roadmap that is updated portfolios that corresponded directly with Mayo Clinic’s regularly, continual learning, and the ability to evolve and leadership structure. Doing that created instant transpar- improve. PM March 2012 PM NETWORK 23
- 26. TRend Watch Here’s how to develop the kind of Leadership vision that can take you—and your team—to new levels. CounseL T by RobeRto toledo, MbA, PMP, ContRibuting editoR The project management profession has evolved significantly since its early his or her team but regularly reinforces and years. It is undeniable that one aspect that has become increasingly relevant is checks on team members’ progress and how we look at the importance of people skills. accomplishments. As project managers, technical knowledge is at the core of our toolbox. But Be proactive. Turn visions into goals and assist people skills are what enable us to thrive in the profession. the team in achieving these goals. A leader Leadership may very well be a project manager’s most important “soft” skill. It does not just dictate orders but provides the is the amalgamating ingredient of effective team dynamics, which is a determining necessary momentum and the right environ- factor in achieving project goals. Projects have deliverables to produce, processes ment for the team to achieve the desired goals. to follow and information to constantly communicate to stakeholders. Without a always say “please” and “thank you.” Never leader imparting vision, motivation, knowledge and control (sometimes in a subtle underestimate the power of politeness and way), a project has the potential to lose its focus and fail. gratitude to your teammates in building a strong bond. Here are some basic ideas that can help you kick-start your development process. You were not born a leader. Leadership is a skill that is nurtured and cultured In the end, the definition of a good leader is over time; you must practice and develop it. rather simple: a person who accomplishes Lead by example. In general, people follow what they see in others. Set an project goals while simultaneously developing example by exerting the practices and behaviors you want to see in your team. the people around him or her to a higher level Develop your credibility by consistently following up on your words and trans- as well. PM lating them into action. Be a “people catalyst.” Best practices dictate that a project is only as success- Author’s note: Last October, I had the great privilege to be part of PMI’s 2012 Leadership Institute Master ful as its project manager’s ability to effectively communicate with his or her Class. In preparing this column, I experimented with team. Good leaders bring out the best in people. You should be able to com- crowdsourcing, having three of my closest classmates collaborate on it. My special thanks to naresh Saharya, municate your vision to the team. A good leader would focus on planning PMP, Kevin Chui, PMP, and Ram Sriram, PMP, for their rather than on plans. thoughtful insights on the subject. Show courage. Take informed, analyzed risks and act without fear. Build trust around you. Trust is the basis of relationships and team interac- Roberto Toledo, MBA, PMP, is managing partner tion. Focus on building trust among your team and between you and your of Alpha PM Consulting, a trainer and a consul- team members. tant who works across the Americas. He can be reached at rtoledo@alphapmconsulting.com or Set the strategy and constantly reinforce it. A good project manager trusts followed on twitter at @robertoledo. 24 PM neTWORK March 2012 WWW.PMI.ORG
- 27. WhAT’S at Stake The GanTT You MiGhT noT Know He’s famous for his chart. But a century ago, Henry Gantt also came up with a revolutionary means to motivate project teams. M by Lynda bourne, dPM, PMP Most project managers are familiar with the Gantt chart—but there is more to a bonus was not earned, the cause was inves- Henry Laurence Gantt’s work than his useful document. tigated, and removed or remedied. The system For example, most people think the concepts of stakeholder engagement and proved highly effective and generated sustained team motivation are relatively new. But after reading two books by Mr. Gantt, I productivity improvements, in excess of 100 realized that he introduced these concepts nearly 100 years ago! percent. Mr. Gantt’s standout contribution was his approach to workforce manage- Mr. Gantt recognized that a system of man- ment. It focused on the efficient use of labor, along with a fair division of rewards agement requires all of its parts to work in har- between the workers and factory owners when there was an improvement in pro- mony if it is to be effective and that “in every ductivity. workroom, there is a fashion, or habit of work, His work was influenced by the idea of scientific management, introduced by and the new worker follows that fashion, for it Frederick Taylor, who held the theory that the best way to understand a complex isn’t respectable not to.” task is to break it down into its component parts. You then study and optimize Consequently, “the changing of a system of each part, and find the best way to complete the work from those parts. management is a very serious matter and can- What made Mr. Gantt’s work uniquely valuable was how he used this infor- not be done by a busy superintendent in his mation to motivate work- spare time.” ers. He recognized that Today’s takeaway? Detailed planning and RecoMMended Reading incentives are a far more accurate recordkeeping are important, and If this column has sparked your interest, powerful motivator than charts help in that regard—but only if the plans check out henry Gantt’s books Work, penalties. Standardized are realistic and the team is properly trained Wages, and Profits and organizing for Work. work was broken into and motivated to achieve the objectives. Mr. tasks. Once a task had been Gantt also said that forms “are simply the set, each worker received means to an end. If the end is not kept clearly individual instruction. When he learned to perform a task during a set time and in mind, the use of these forms … is apt to be to the required quality, he was paid a bonus in addition to his daily wage. detrimental rather than beneficial.” PM Supervisors earned rewards as well. A foreman received a bonus for each worker on his team who received a reward, and the foreman’s bonus doubled if all of the workers in his team achieved a reward. This encouraged the foreman to Lynda Bourne, DPM, PMP, is the managing director of Stakeholder Management pty Ltd. work with and support the least-effective members of the team. and director at Mosaic Project Services pty When everyone achieved the bonus, it showed that the plant as a whole was Ltd., both in Australia. Dr. Bourne graduated from RMIT as the first professional doctor of working to its optimum productivity and generating maximum profits. Whenever project management. March 2012 PM NETWORK 25
- 28. voices Project Perspectives Can This Project Be Saved? You’ve been handed a project that’s failing. Here’s what to do: Byron Love, PMP Tony Pashigian David Rodgers director of IT consulting services, Intrepid engineering, program management and sales partner and vice presi- Solutions, Baltimore, Maryland, USA consultant, Grakon, Seattle, Washington, USA dent of consulting services at IMPAQ Audit the nine Knowl- is vectored toward I have been in this situa- tells everybody the status, Accountability Busi- edge Areas in A Guide achieving the success tion and have launched but it protects you. ness Solutions, San to the Project Manage- defined by the stake- the programs smoothly 3. Assess the plan for Diego, California, USA ment Body of Knowledge holder. each time. The steps that opportunities to compress (PMBOK® Guide) for Because projects are I go through are: time or cost and define I love this type of project, the project and gain an executed by people, you 1. Make sure you clearly what it costs for the com- as projects in the red are understanding of the will need an excellent understand the scope pression. Get the impact usually ones that have issues that caused the team to produce the and have concurrence in front of management, the attention of the project to go off-track. results your stakehold- with the customer on a stakeholders and pock- business and that people On my projects, I ers expect. You will statement of work. You’ll etbook holders to get want back on track. The always ask the primary need a cohesive team never get it out of the approval to execute. key is not so much your stakeholder for a “state- that can perform under red if the finish line keeps 4. Do not wait for project management ment of success,” which pressure to endure moving. Scope creep is approval for time or cost approach but how you is a narrative of the the increased scrutiny one thing, but this is a compression. Get your work with the stakehold- conditions that must be that your project may time when customers team executing, at least, ers to understand: present at the end of receive. often try to get away the “brutal reality” plan, 1. The urgency from the project in order for Be prepared for with “elegance creep,” from step 2. You can’t a business perspec- the primary stakehold- your leadership to be or subtle time-sucking or afford to lose more time. tive and the ultimate ers to consider the proj- tested, as you may expensive tweaks to the 5. If the compression desired results if ect successful. need to fight for new project. solves the issue, then successful The statement of resources, obtain 2. Define the plan to monitor closely. If it 2. The risk of not coming success will serve as a additional training for execute the project at a doesn’t completely fix through lighthouse to help you current resources, or normal pace with no fluff the issue, you have to 3. The current barriers navigate the troubled discipline and correct and without regard for find the strategic time These three things paint seas of a red project. poor performers. If there the fact that your cost and tactical means to a picture of future suc- Once you have that, are people on your team or timing does not meet inform the customer cess and current reality you can then update who are responsible expectations. This is the about the delay and your that then allows you to your project plan, which for running the project brutal reality of the situa- plans to mitigate it. The use good project man- should address the nine aground, you must hold tion. You must get this in earlier they know, the agement principles to PMI Knowledge Areas them accountable and front of the stakeholders more accepting they’ll rally both stakeholders in such a way that each perhaps replace them. as soon as possible so be. A last-minute surprise and team members in they can see what you’ve miss will likely cause creating a successful inherited. This not only them to melt down. strategy. 26 PM NETWORK March 2012 WWW.PMI.ORG
- 29. Gabby Kent, PMP Jon McGlothian, PMP Martin House student, Warwick Business School, Sydney, Australia president, The Mt. Olivet Group LLC, deployment Norfolk, Virginia, USA manager, MindLeaders I’ve been in this situation staff from the booking ThirdForce, Taunton, more times than healthy codes you can see are not What do you do when established, a reason- Somerset, England projects. Here’s what I’ve relevant. you have been given able definition of suc- learned: 4. Set up a team meeting. a project that is in cess can be created. The first thing to do is 1. Locate the authorizing Identify what is produc- trouble? 5. Create a commu- to check the risks assess- sponsor, the senior execu- tive that people can get 1. Take the emotion nications plan for all ment to determine tive who stands to signifi- on with, and what the sig- out of play. Deal with stakeholders. Keep whether cost overrun cantly lose or gain from nificant issues and actions the issues, not the everyone informed was an acceptable risk at it (often the financer). are. Communicate and be personalities. about the current sta- the outset. Don’t assume Meet with him or her and transparent about what 2. Determine the exact tus and next steps. that the job was wrongly articulate the approach to you’re doing. financial status of the Your job then is budgeted. Check the getting the situation back 5. Lastly, the situation will project. It is critical to to bridge the gap expenditure audit and in hand and build confi- require long work hours know what resources between the end-user compare it to the brief. dence. For a few weeks, for a while, and it will be are available to you. (the true customer), Remember the old you need to remove 90 stressful. Be kind, even 3. Complete a stake- the stakeholders and triangle of cost, speed percent of the people when others aren’t. These holder analysis. It the project team. You and quality. If the qual- hassling you so you can situations are a real test is especially key to will have to find com- ity has been enhanced focus on the important of character. Be system- determine if there is mon ground between by feature creep, or the stuff. The sponsor will atic as you rescope and a “silent saboteur” in the three constituents project deadlines have have enough authority to analyze what’s going on. the mix. and resolve any issues. tightened, then cost hold those people at bay. If the project 4. Understand the Stay positive in your overrun wasn’t a prob- 2. You need to figure out executive is flaky, or original scope of the efforts and have confi- lem until the organiza- what the project is about the technical solution is project. Once this is dence in your abilities. tion needed a scapegoat. as quickly as possible. fundamentally flawed You don’t win or 3. Run the financial and no one is taking lose in project manage- reports and locate all staff decisive action (because, ment—this isn’t about bookings. Prioritize by bluntly, there is a reason you. Own the project, determining those who why the project is red), but in the end, the deliv- have spent the most time then take steps to find a erables are someone on the project and who new assignment. Some else’s property. The best have worked on it most projects are a poisoned outcome you can hope recently. Ask what they’re chalice, and no amount for is happy stakeholders doing or have done on of hard work will turn the (including the finance the project. Remove all situation around. department). March 2012 PM NETWORK 27
- 30. voices In theTrenches Unclear on the concept Does that job description sound ideal? Think again. Many organizations don’t know what a project manager really should do. by Grace Willis, PMP The ugly truth of project management job opportunities—often discovered after Another example where I may have botched a candidate has been interviewed and hired—is that many hiring managers don’t “establishes trust” was the time I voiced con- really know what a project manager does or is supposed to do. cerns to my director about developers who The job title “project manager” has been bastardized, with actual role responsi- thought it was OK to habitually show up late to bilities ranging anywhere between that of an administrative assistant to a subject daily stand-ups and surf the Internet on their matter expert and even a software developer. cell phones during sprint planning sessions. I The title “project manager” has also been whitewashed in some organizations, also called out a business product owner who given to everyone from a Project Management Professional (PMP)®-certified vet- didn’t quite understand the concept of locking eran to a marketing traffic manager or office coordinator. down user stories for a sprint—and instead went This happens everywhere from small mom-and-pop operations to Fortune directly to developers to “sneak in” a request. 500 corporations. The response to my concerns? I was told Here’s a summary of (cough, cough) “activities” I’ve been assigned or had to to turn a blind eye and let the team members undertake during my career in project management: do what they wanted. n Explain to developers in a purported long-standing agile organization expecta- tions of a daily stand-up meeting, what planning poker cards are used for and Questions to ask—and answers You the importance of actually checking user requirements before coding Don’t Want to hear n Write governance and company policy documents for an application’s in- Thus far, two hiring managers have admitted house use to me that they thought they needed me—but n Code in XML they weren’t quite ready. n Organize hotel, car rental and catered lunch for visiting vendors during a project I resigned from one job after quickly assess- strategy session ing the lay of the land. In the role, I had pri- In all these roles, I worked for executives who hired me as a project manager, marily sent emails and filled out spreadsheets yet when it was time to get down to business, they didn’t know what project man- with information no one ever read. During agement was. the two-week period after I gave my notice, they transitioned this burdensome (I’m being Project Manager…or Supernanny? sarcastic) duty to the receptionist. Yet, when I You know that line in the job description that reads, “Excellent interpersonal skills looked at the job ad for my replacement, they and capable of dealing with all levels of staff”? Well, for many hiring managers, asked for a PMP®-certified project manager. this line seems to mean that the project manager is to function like the neighbor- In another job, I was basically hired to hood babysitter—working for “that family with the crazy kids.” revive dead-end projects that were never The hiring manager is akin to the stressed-out parent who needs Supernanny properly vetted in the first place. The execu- to help clean up the mess of the project, control the team of rogue employees who tive sponsor took a laissez-faire approach, and won’t cooperate and manage the overpriced, underachieving third-party vendor ignored my recommendation to either kill the that no one vetted before contracts were signed. project or start over properly. Another catchy line in job descriptions for project managers is the “establishes So why does this happen and what can be trust” requirement. In my career, that has meant sharing personal details with my done about it? I have two solutions: educate boss and team to be perceived as “team player.” I’ve survived everything from a and interview more thoroughly. boss who was comfortable discussing her likely divorce to a developer who felt The burden is on us project managers to edu- free to use team lunches as the opportunity to discuss bodily functions. cate the hiring community. Part and parcel of Supposedly, this was how they established trust. I was told I needed to share the education process is digging deeper during my feelings more. interviews. In hindsight, I can definitely say that 28 PM NETWORK March 2012 WWW.PMI.ORG
- 31. I was atfault for having gotten myself into these roles because of my lazy inter- viewing approach. Remembering that interviewing is a two-way street can help circumvent career mishaps. Interviews provide an opportunity to learn if the role is real project management à la PMI standards…or its evil twin, “faux project management.” Here are some questions that you absolutely must ask in interviews, and some warning signs to look for: n Does your organization have a proj- ect management office? (Red flag: They don’t know what PMO stands for.) n If they do have a PMO, are the proj- ect managers in it PMP-certified? (Red flag: No, you’d be the first.) n Describe the existing project manage- ment process. (Red flag: They don’t The burden is on us ProjecT Managers have one, nor can they articulate To educaTe The hiring coMMuniTy. what they expect.) n Which project management tools are you currently using? (Red flag: Excel department for which you’re interviewing is spreadsheets and emails.) the only one using it, and the hope is to push n How familiar is your team with the concept of project management and how project management tools and techniques have they worked with project managers in the past? (Red flag: Long silence.) from the bottom up.) n Can you describe a successful project from beginning to end, and what tools, This is by no means a comprehensive list, documents and business procedures were used? (Red flag: No answer.) but it should definitely help you glean enough n Can you describe how you would support the project manager’s role within information to determine if you should run for the team and across departments? (Red flag: The expectation is that the project the hills or prepare yourself mentally for what manager relies solely on winning people over with his or her charming person- you’ll be dealing with. You’ll also know more ality to get folks to cooperate.) about the competence of the person you’re n Have you had a project manager on this team before and, if yes, why did he most likely going to be reporting to. So good or she leave? (Red flag: “Things just didn’t work out, and we decided to part luck, colleagues. Go forth and conquer. PM ways.” This could be a sign that the project manager fell victim to the scape- goat’s guillotine.) n Would you describe this organization/department as weak, mixed or strong matrix? (Red flag: The hiring manager doesn’t have the foggiest idea what Grace Willis, PMP, is an independent consul- tant for business process optimization in the you’re talking about.) automotive industry in Berlin, Germany. n Does a project management culture exist organization-wide? (Red flag: The March 2012 PM NETWORK 29
- 32. WhO’S GuaRdIN ThE cloud?by SaRahFISTER GalE IlluSTRaTION © CJ buRTON/CORbIS 30 PM NETWORK March 2012 WWW.PMI.ORG
- 33. g Putting data into the hands of a third Party can save money, but the Projects raise a host of security concerns. here’s what every organization needs to know. March 2012 PM NETWORK 31
- 34. What to aSk 1 2 O When vetting cloud vendors for migration projects, Marc Crudgington, Advantage Sales and Marketing, Houston, Texas, USA, suggests asking the following questions: how does the center’s recovery plan initiate? “You want to find out what triggers the move to the disaster-recovery site, how long that move will take and how you will gain access to the data,” Mr. Crudgington says. how long has the vendor been in business? How many customers does it have? And how financially viable is it? “If they haven’t been a provider for a long time, that might be a concern,” he says. On the cutting edge not so long ago, cloud computing is officially mainstream. Looking to cut costs and increase efficiencies, orga- nizations are launching projects to move more and more data to remote servers. Sixty-one percent of 1,700 executives from around the world and across sectors reported they were using, evaluating or planning to implement cloud computing this year, according to a 2011 survey by consulting giant Ernst & Young. The long-term forecast is also “cloudy,” with orga- nizations reporting cloud computing’s share of the IT spend will jump from 10 to 70 percent over the next decade, according to Carbon Disclosure Project’s 2011 Cloud Computing: The IT Solution for the 21st Century survey. Those high adoption rates, however, mask the seri- ous issue of cloud security. Even mature organiza- tions with stringent internal processes are vulnerable, because cloud computing often means involving a third-party vendor. That opens the door to technical failures at outsourced data centers, concerns about vendor longevity and an increased risk of cyber threats. 3 A 2011 study of U.K.-based IT managers by Kasper- how do they respond to outages? “It’s not the sky Lab found that 62 percent worried about the secu- most important concern if they’ve had an out- rity of the cloud. What’s more, 60 percent said those age. It’s how long it lasted that’s important,” Mr. fears prevented them from moving mission-critical data Crudgington says. 4 to cloud environments. Where is the data center located? “I’m less concerned about the safety of the neighborhood,” The big question now is whether some fundamental he says, “but I do look at the likelihood of natural project management due diligence is being skipped in disasters,” avoiding data centers in regions prone the rush to the cloud. to floods, hurricanes or earthquakes. 5 how secure is the physical perimeter? Look Security DiSconnect at whether doors and server cages are locked, The reasons for embracing the cloud are manifold. A and who has access to the building and the data November 2011 study by tech consulting firm CSC center. 6 found that 93 percent of the 3,645 global IT decision- how often do they perform penetration tests? makers surveyed reported better performance in at least These are conducted by third-party vendors who attempt to breach the network to determine the one area of their IT departments since adopting the absolute level of security. cloud. Those improvements cut a wide swath: 32 PM NETWORK March 2012 WWW.PMI.ORG
- 35. cloud Surveillance Despite fears aboutinformation security, the U.S. federal government is rapidly launching cloud computing n Increased data center efficiency and use projects to cut IT costs and increase budget control. (52 percent) InformationWeek’s 2011 Federal Government Cloud n Lower operating costs (47 percent) Computing Survey found 29 percent of the 137 business n Reduced waste and lower energy consump- technology decision-makers at U.S. federal government tion (64 percent) agencies said they were using cloud services, up 10 per- centage points from February 2010. Another 29 percent In the United States alone, organizations said their agencies will tap into the cloud by February 2012. will save an estimated US$12.3 billion a year in U.S. CIO Steven VanRoekel said in December 2011 that energy costs by 2020 by moving to the cloud, the U.S. government has met 14 of the 25 points in the IT per a 2011 report by the Carbon Disclosure reform plan laid out by his predecessor, Vivek Kundra, real- Project. izing nearly US$1 billion in savings. However, 77 percent of the respondents cited secu- However, some of those companies may rity as their biggest concern, and that has caused many not have looked before they leapt. More than projects to be delayed or scaled back. To allay these fears, half of the respondents to the Ernst & Young the government created FedRAMP, the Federal Risk and survey had not implemented any controls to Authorization Management Program, a centralized risk- mitigate the risks of a cloud migration project. management and security body that acts as a go-between The consequences of such a process oversight between federal agencies and cloud providers. A success story at the state level could provide a can be significant: The average organizational blueprint as well. The state of Michigan implemented an cost of a data breach is US$7.2 million, the automated hosting solution for fast-track projects called Ponemon Institute estimates. MiCloud in 2011. Chief security officer Dan Lohrmann “As part of any cloud project plan, you’ve says the move has helped the state lower customer costs got to understand where your data is, who for storage by reducing the per-gig rate from more than US$2.80 to about US$0.38. has access to it, and whether you can meet “It met the use needs by offering a service that did not expectations for backup and recovery in case have as much redundancy but had a much lower cost,” he of a disaster,” says Bernie Wedge, lead for the says. IT risk practice at Ernst & Young Americas in Moving to the cloud had its risks, Mr. Lohrmann admits, Atlanta, Georgia, USA. and security was a focus from the outset. To eliminate ven- Without a clear concept of who’s doing dor issues, he chose to build a private cloud, which ranked as the preferred model for government projects by almost what, a gaping security maw can open. In a half of all the InformationWeek respondents. two-part Ponemon study concluded in April “We built it in-house, which means we didn’t have 2011, 69 percent of cloud users said the pro- to bid the project out or use vendor technology,” Mr. vider was responsible for security, while only Lohrmann says. 35 percent of providers thought it was up to Opting to build a private cloud cost more than a shared public cloud system. It also meant his team had to ramp up them to guard the data. Many major cloud its cloud computing skill set, and the department still had providers’ terms of service reflect that dis- to purchase, configure and maintain all the hardware. connect. The three largest cloud providers— But the extra cost and effort was worth it, Mr. Google, Microsoft and Amazon—all have Lohrmann says, because he has total control over the various provisions in their user agreements system, ensuring that critical data stays in the state’s own absolving them from responsibility in the case data centers. “I own all the pieces, and I made sure security was built into all of our project specs,” he says. of hacking. March 2012 PM NETWORK 33
- 37. a Word FroM the Wise Executives who’ve implemented cloud In the United States alone, migration projects offer some advice on how to address security concerns at the outset, 1 strengthen the business case and increase organizations are expected buy-in: Start Small. “The biggest mistake you to save an estimated can make is to move everything to the cloud all at once,” says Daniel E. Retzer, XSP, Bir- US$12.3 billion mingham, Alabama, USA. Like all IT projects, cloud transformation initiatives have risks, and you don’t want to put proprietary data a year in energy or critical applications in the cloud before you’ve worked out all the kinks. If you are costs by 2020 by moving new to the cloud, choose a low-priority, easy-to-deliver project, such as email stor- to the cloud. age, he suggests. “It will give you a sense of the benefits that the cloud can offer, and it 2 will make it easier to extend this technology Source: 2011 report by the Carbon Disclosure Project onto other projects, initiatives and processes. PrePare your team. “You don’t want people learning as they go,” says Endre Jarraux Walls, Resources for Human Devel- opment, Philadelphia, Pennsylvania, USA. Educating the team about the latest tech- nologies, security trends and threats ensures 3 No StoNe UNtUrNed they know how to choose the right technol- From the moment organizations launch cloud com- ogy and vendor for the organization’s needs. puting projects, they must recognize that choosing the recognize the need for executive right vendor can make or break the entire endeavor. buy-in. Educate stakeholders about the “Vendor reputation is the most important aspect of impact, benefits and steps you’ve taken to the vendor-selection process for cloud projects,” says ensure data security, says Emmanuel Ebo Marc Crudgington, national IT director at Advantage Freeman, PMP, Dun & Bradstreet Credit Sales and Marketing in Houston, Texas, USA. Because Bureau, Accra, Ghana. “At the end of the day, you need funding to execute any project, and 4 the company manages personal consumer data, it puts you have to have executive buy-in to make a high priority on finding a trustworthy and secure that happen.” vendor. “If that data leaks, our reputation suffers,” he explains. Share your metricS. Once you imple- ment the project, measure your results and Project professionals should start by creating a risk share them with everyone in the company. registry that defines their concerns, including protec- “That would enable the right buy-in as well tion from hackers, location of the data, user access and as help in assessment for future cloud proj- back-up options. ects,” says Bikram Barman, senior engineer- As credit consulting firm D&B (Dun & Bradstreet) ing manager at Yahoo! in Bengaluru, India. opens its new office in Accra, Ghana, it sees the cloud Demonstrate the benefits of an operational expenditure model versus a capital expen- as a faster track to ROI, says Emmanuel Ebo Freeman, diture model, and of scalability and rapid PMP, head of IT and operations. But it also means deployment of projects, he adds. “Organiza- coming up with a secure back-up plan should the net- tions should address and put in the right work go down—which in Ghana is not an uncommon mitigation for security, availability, interoper- occurrence. ability and portability concerns.” March 2012 PM NETWORK 35
- 38. “As a creditreferencing bureau, our systems are mission-critical, and we can’t afford to have downtime of even 20 minutes,” he says. He’s considering using the company’s Inter- net service provider, but he won’t make a deci- sion until he thoroughly vets its security system, including proof of third-party audits. “Security is always front-of-mind for us, whether data is on site or hosted,” Mr. Free- man says. Along with evaluating the security of the physical location, he’s investigating additional data-encryption tools and assessing the skill set of the vendor’s on-site IT team, looking for: Making the Case 1. In-depth technical skills 2. Project management skills and capability 3. Customer relationship skills and a mature When it comes to the cloud, executives have heard it all, from software vendors who promise no data service delivery process downtime to doomsday reports of massive data When Mr. Crudgington launches a cloud hacking. With all the hype, it may be time for a migration project, he meets with several ven- reality check to ensure the project isn’t sabotaged dors. “One of the first questions I ask is, ‘If a before it even begins. leak happens, what are you going to do?’” he To make the case, project leaders must define says. Any vendor’s disaster-recovery plan should the risks as well as the benefits of cloud projects. define precisely how back-up systems will oper- A winning ROI doesn’t have to be limited to the ate and how clients can access data. bottom line. At automation solutions provider XSP, Along with talking to vendors’ existing cus- for example, the company’s migration project has tomers and reviewing third-party analyses, Mr. provided greater budgetary control, as more of the Crudgington’s vetting process also looks at IT spend shifts to the vendor rather than hardware whether data will be colocated on servers with costs, says Daniel E. Retzer, managing director and CTO of the company in Birmingham, Alabama, USA. other clients. “The nice thing about operational expenses is that you can turn them off when you don’t need them and pay for only what you need,” he says. “You can’t do that with a data center full of servers.” His team can also spin up servers in a matter of minutes as opposed to weeks, letting it focus on value-driven projects rather than hardware mainte- Any vendor’s nance. For Resources for Human Development (RHD), disaster- recovery plan a human services not-for-profit organization in Philadelphia, Pennsylvania, USA, the ROI of cloud projects is based on increased reliability, better performance and disaster recovery. If an in-house system went down, for example, all of RHD’s offices should define precisely across the country would be impacted. By using a cloud vendor with a robust disaster-recovery strat- how back-up systems will egy, the company reduces its risks, CTO Endre Jar- raux Walls explains. operate and how clients “These are huge issues for us, and they make the business case for this project,” he says, noting that the new system has achieved 99.999 percent can access data. —Marc Crudgington, Advantage Sales and Marketing, Houston, Texas, USA uptime since its launch.
- 39. One of themost important aspects of dealing with security on cloud projects is educating the business functions and the executive team about the risks, the benefits and the rules of the road. —Bernie Wedge, Ernst & Young Americas, Atlanta, Georgia, USA illUSTRATiON © CJ BURTON/CORBiS “Getting all of this data is a key part of the due- comes in armed with statistics that define the ROI diligence process, because once you make the transition in terms of energy and cost savings, and greater to the cloud, you are at your vendor’s mercy,” he warns. flexibility in service delivery. “When you have good numbers, it’s not a tough sell,” he says. The NexT STep Holding educational sessions and establishing Smart organizations take their cloud risk-manage- defined processes for cloud projects helps prevent ment strategies beyond the confines of the IT ven- departments from “going rogue,” moving pieces of dor relationship, crafting a cross-functional team their own operations to a cloud vendor and bypass- that can make the necessary cultural shifts. ing the corporate IT function, Mr. Wedge adds. “It’s a change management issue,” Mr. Wedge “Departments that outsource data without going says. “One of the most important aspects of deal- through corporate IT often don’t consider the back- ing with security on cloud projects is educating the end issues and risks, like back-up recovery and data business functions and the executive team about the privacy,” he explains. risks, the benefits and the rules of the road.” Only once all those issues are addressed—from Project leaders should hold meetings to present the quality of the lock on the vendor’s door to the the business case and reinforce stakeholder sup- executive team’s understanding of security proto- port, says Dan Lohrmann, chief security officer for col—will organizations know their data is secure in the state of Michigan, Lansing, Michigan, USA. He the cloud. pM March 2012 PM NETWORK 37
- 40. No oNe caNsee the future. But quantitative risk-ma patricia galloway, phD, pmp, pegasus-global holdings inc., cle elum, Washington, usa
- 41. nagement techniques canhelp make it a little clearer. risk by the numbers by Sandra a. SwanSon :: photo by rick dahmS
- 42. e xpect the unexpected: That’s a basic job requirement for organizations and their team of project managers. But as they work to reduce uncertainty around projects, organizations must continually grapple with a balancing act between risk and reward. Choosing the Right teChnique Risk-analysis approaches should match the particular needs of a project in order to provide a good fit for users’ level of understanding, notes Patricia Galloway, PhD, PMP, CEO of Pegasus-Global Hold- ings Inc., an energy and infrastructure consultancy in Cle Elum, Washington, USA. Problems can emerge if a risk technique is too complex, for instance. While a highly detailed technique may be use- ful for the team performing the risk analysis, other users of that information may not have the same level of training—and could deem a technique unnecessarily detailed for their purposes. “In this situation, the value of the initial risk analysis is lost, potentially undermining the work to be done in the risk-monitoring phase,” Dr. Galloway says. What tool is right for your organization? Here are the pros and cons that come with some of the most popular quantitative risk-analysis approaches: Monte CARLo: A simulation technique that computes the project cost or schedule many times, using input values selected at random from probability distributions of possible costs or durations. The end result: a distribution of possible total project cost or completion dates. PRo: Real-time adjustment. Project professionals can more easily update an initiative’s risk-man- agement focus as execution moves forward. “Over time, some risk element events disappear while others oVeR tiMe, move into range,” says Jack Dignum, senior vice president and COO of Pegasus-Global Holdings Inc. soMe Risk in Cle Elum, Washington, USA. “For example, risks linked to permitting fade as permits are obtained, eLeMent while risks linked to detailed design may become more prevalent once those permits have been received.” eVents Con: The lure of high-tech razzle-dazzle. Because it’s a computer model, some project disAPPeAR whiLe managers are lulled into believing it consistently spits out the right answer, Mr. Dignum warns. otheRs Gut instincts are often ignored. “Project managers won’t challenge the model because they believe, MoVe into somehow, that the computer is ‘smarter’ than they are,” he says. RAnge. — JacK DIGNuM, PEGasus-GlObal sensitiVitY AnALYsis: A modeling technique used to help determine which risks HOlDINGs INc., clE EluM, have the most potential impact on the project. WasHINGTON, usa PRo: A fairly good overview. By looking at how variables deviate from expectations, project professionals can get a grasp on how risks associated with those variables will affect an initiative. Con: Limitation. The approach is best suited to analyzing a single condition, but reality indicates that several variables change at the same time, says Rafael Alfredo Díaz Real, PhD, PMI-RMP, PMP, senior consultant at Alpha Consultoría, a project management training and consulting firm in Mexico 40 PM NETWORK March 2012 WWW.PMI.ORG
- 43. [casE study] In ActIon: evALuAtIng A MegApRoject’s RIsk AnALysIs The largest civil engineering endeavor in Europe, the Crossrail project will create major railway connections, including 21 kilometers (13 miles) of tunnels, under the London, England area by 2018. HM Treasury, the United Kingdom’s economics and finance ministry, hired Pegasus-Global construction of the crossrail tunnel portal west of royal oak station, london, England Holdings Inc. in Cle Elum, Washington, USA to evaluate the approxi- mately US$25 billion megaproject’s initial risk analysis. This was a “full stakeholder involvement” risk-management program, says Patricia Galloway, PhD, PMP. Everyone involved had an opportunity to participate in the development and modeling of the full program risk profile. For example, local governmental and quasi-governmental units were invited to participate—even though at that point they had no direct financial stake in the execution of the megaproject. That included labor unions. While they do not have authority to pass laws, they do regulate the conditions under which their respective memberships will work, notes Jack Dignum of Pegasus-Global. “Given the high level of labor needed to execute the project and the fact that there would be significant competition for that labor pool throughout the duration of the project, the unions were invited to participate in the development of the risk profile for the project,” he says. The total risk profile was divided into three types (delivery, program and sponsor risks) and included seven steps: 1. Risk Identification, probability and Impact Quantification. All risk elements received from stakeholders were categorized in a complex 3. Risk Leveling. “The extremely high number of individual risks matrix, which considered such things as the location of individual tasks. identified—several thousand—resulted in modeling being impracti- The result was the development of a detailed risk register that reported cal,” Dr. Galloway says. It would take too much time to run models, risk elements and impact quantification. and the results would be too unreliable over multiple runs. To address 2. Risk Level Review. A committee was established to manage and that concern, the review committee coalesced the highest risks in control the risk-management program following development of the risk terms of probability and consequence into a document called the registers. The review committee was composed of commercial, planning “Level 1 Risk Register.” That reduced the total number of risks, as and legal departments of the project sponsor, the U.K. Department for well as the what-if combinations among various risk elements, she Transport. explains. The result: a practical model and a higher level of reliability Stakeholders created their own risk registers, with the Crossrail risk- in the model runs. management team adding each list to the total register and then culling 4. Risk Modeling. Risk analysis software with Monte Carlo simula- the combined profile of duplications. tion was used to run probabilistic models of the Level 1 Risk Register. When the risk-management team asked the participants to review The primary purpose of the model was to confirm or question the the combined register, there was significant pushback by participants, contingency cost amounts contained in the full megaproject cost who complained that their specific risks had been dropped, Mr. Dignum estimate in preparation at that time. says. “It was described as a series of meetings where no one was happy, 5. Risk Model Reviews. The committee reviewed the results of everyone thought the other participants’ risks were less important than the model runs, adjusting the baseline assumptions to refine the risk their risks, and where no one would agree to give up anything,” he says. register and model assumptions. This review was conducted at the To address the problem, the Department for Transport had partici- individual risk element level. Each change was fully documented and photo courtEsy of wikimEdia pants from its commercial, planning and legal departments form a “risk reported back to the stakeholders who had participated in the assem- review committee.” bly of the original risk profile. The first task was to educate those committee members about the 6. Model Adjustment. Based on committee reviews and consider- purposes for a risk model and how one worked. They were then given ing stakeholder comments, the model was adjusted and rerun. Steps the full risk register to analyze and “rationalize” it to other stakeholders. 4, 5 and 6 were repeated several times as the project definition was “Once that process was developed with the input of the commit- refined. tee, it was the committee that presented it and defended it to the 7. Final Acceptance. “Our audit found the risk-management pro- risk-participant universe,” Mr. Dignum explains. gram to be prudent and opined that it met—and in a number of instances, exceeded—the standards in the transportation industry,” Dr. Galloway says. EvEryonE involvEd had an opportunity to participatE in thE dEvElopmEnt and modEling of thE full program risk profilE—including labor unions. March 2012 PM NETWORK 41
- 44. 2 in 3business City, Mexico. “Focusing on one change in one single variable is quite unrealistic in a real- executives worldwide world situation.” say their company’s focus on risk management has DECISION TREE: This diagramming technique (using decision and chance increased since the nodes) shows possible outcomes of a decision, weighing cost and other factors. 2008 financial crisis, PRO: Provides options. The tool explicitly reveals the various options available on but just 1 in 10 say a project—all in an easy-to-glean model. “If an aspect of a project is going very poorly, their executive it can be stopped,” explains Charles Linville, PhD, president and founder of Ploughman management is Analytics, a data management business analytics consultancy in Champaign, Illinois, highly effective in creating a strong risk- USA. “If an aspect of a project is going well, additional resources can be invested.” management culture. CON: Lack of buy-in. Because it is often calculated with “educated guesses” by the Source: Harvard Business Review Analytic Ser- project manager or team, upper management often doubts its accuracy, Dr. Díaz Real warns. vices and Zurich Financial Services Ltd. survey of 1,419 executives worldwide What GeoGraphy has to Do With it Risk management isn’t as ingrained in some parts of the world. In the Latin American region, for example, risk man- agement is still “in its toddler years,” says Rafael Alfredo Díaz Real, PhD, PMI- RMP, PMP, Alpha Consultoría, Mexico City, Mexico. Most large organizations carry out a risk-management process during project feasibility stages, which is generally repeated (but not reanalyzed) for the planning stage, he says. If only a couple months have passed since a feasibility study, the risk-management process may be valid. But because it often takes at least six months to go from feasibility to planning, risks should be reviewed, Dr. Díaz Real advises. Organizations tend to emphasize risk identification but neglect risk management as an integral process, he says. “In my experience, although there may be a policy on this regard, it is rarely followed, as project teams are busier execut- ing the project and solving risks turned into issues once they happen,” Dr. Díaz Real says. “There is not enough prevention culture.” This oversight is reflected in staffing choices: In his experience, risk managers are rarely assigned, and the task falls on the project manager’s shoulders, regardless of the size of the initiative. As a result, the project manager becomes overburdened, and risk management falls by the wayside. Parts of the Middle East also suffer shortcomings when it comes to assessing risk, according to Imran Malik, PMP, director of the customer program management office for Du, the Emirates Integrated Telecommunication Company, in Dubai, United Arab Emirates. “Organizations very often ignore risk management in our part of the world,” he says, citing two primary reasons: 1. There is a lack of organizational project management maturity in Middle Eastern markets. 2. The limited amount of qualified and skilled project professionals in the region keeps them too busy managing constraints to see the big picture. “That blurs the program vision and hinders the project manager’s ability to identify future risk,” he explains.
- 45. Many projects involvea significant aMount of iMprovisation—and that’s where an iterative approach helps to Mitigate risk. —Charles Linville, PhD, Ploughman Analytics, Champaign, Illinois, USA Risks WoRth taking It’s All In the RelAtIonshIps For an effective assessment of uncertainty, organizations need to recognize Risk management relationships among projects, Dr. Linville says. Determine: profiling shouldn’t be n Dependence on common resources, such as personnel, equipment or budgets the only basis for deci- n Dependence on the same uncertain quantities sions, notes Patricia n Interdependence (for example, Project A won’t work unless Project B is Galloway, PhD, PMP, Pegasus-Global Hold- successful) ings Inc., Cle Elum, “If a project management team is overseeing something that it has done Washington, USA. many times before, following carefully documented procedures that pretty Overreliance on risk much always yield the same results, it may have had a chance to become management could cause organizations to shy away from innovation. very well-calibrated,” Dr. Linville says. “While a first-of-a-kind technology But that’s not always the case. Many projects involve a significant project may hold risks due to unknowns, amount of improvisation—and that’s where an iterative approach helps those risks may be assumed in order to mitigate risk, he says. “We iterate because we often don’t know what’s to gain advantage of the benefit of the going to be hard and what’s going to be easy, what’s going to be expensive project results when completed,” Dr. and what’s going to be affordable, what’s going to be important and what is Galloway says. And depending on the nature of the project, there may also going to be immaterial,” he says. “We iterate because it’s efficient to iterate.” be factors (such as tax incentives) that Organizations must also be willing to consider subjective assessments of would offset some of the assumed finan- uncertainty, Dr. Linville says. And many managers are loath to do so. cial investment risks, she says. “Numbers people in corporations—accounting, finance, and in some cases, those who practice predictive analytics—often like empirical data, and if empirical data aren’t available, they throw up their hands and say, ‘We don’t know.’ Well, it doesn’t matter if they know or not. The firm is going to be making a decision,” he says. Even if it makes subject-matter experts uncomfortable, there are times when project professionals must elicit subjective assessments of uncertainty from them. But, they should do so with the understanding that people known as “experts” tend toward overconfidence, Dr. Linville warns. “I’m not talking about overconfidence about the success of a project, although that may be present as well,” he says. “I’m talking about insuffi- sensItIvIty ciently recognizing the existence of uncertainty.” AnAlysIs Is best suIted shARed ResponsIbIlIty to AnAlyzIng A careful analysis of risk can help organizations pinpoint worthwhile A sIngle investments (and avoid bad ones). But there is no absolute answer in risk condItIon, management, and it shouldn’t fall on a single person’s shoulders, Dr. Díaz but ReAlIty IndIcAtes Real notes. thAt seveRAl “Tools may provide data—and in the best case, educated information. vARIAbles But the final decision and the responsibility falls on the project manager and chAnge At the the sponsor,” he says. “Both are part of the team, and decisions as important sAMe tIMe. as these cannot be made alone.” pM —Rafael Alfredo Díaz Real, PhD, PMI-RMP, PMP, Alpha Consultoría, Mexico City, Mexico March 2012 PM NETWORK 43
- 46. perception “It’s just alittle tweak.” Sound familiar? disconnect between a stakeholder’s
- 47. vs. reality BY MICHELLE BOWLES JACKSON Stakeholders and project man- agers don’t always find themselves on the same page. In fact, some- times it seems as if they’re not even reading the same book. From unrealistic schedules to changing requirements, project managers have to find ways to deal with stakeholder expecta- tions that don’t align with the situation on the ground. Here are some of the most common misperceptions and how proj- ect professionals can bring stakeholders back to reality. Here’s some advice on breaching the perception and how things really stand.
- 48. Mistrust vs. Lack ofEngagement Perception: We haven’t been briefed on the status of the project for a while; the project manager must be keeping something a secret. Reality: The project manager failed to conduct a stakeholder analysis to engage them throughout the effort. Project Failure vs. Solution: To maintain open lines of communica- Unrealistic tion with external stakeholders, conduct a hybrid stakeholder analysis, sug- gests John Turner, an independent project manager and developer working Expectations for Mace, a program and project management consultancy and construction company in London, England. Perception: The team Early on, come up with a list of all of the individuals involved in and isn’t hitting every milestone on touched by the project. Then identify a select group of 10 or so key stake- the dates specified, so the proj- holders who are representative of the larger group based on their work expe- ect is obviously a failure. rience, proximity to the final user base and buy-in to the project concept. “For example, if you need to include someone to represent the financial Reality: Those very specific people in the organization, the representative should have a strong financial project milestones are created background,” Mr. Turner says. “If you are working on an IT project, stake- months ahead of time, and holder representatives should have some concept of what you are produc- not all requirements can be known when an initiative ing and the likely techniques for achieving it.” launches. The project may still produce good results. Ask members of the select group for their top three or four priorities for the project. From there, you can build a list of project requirements that Solution: Project managers must be clear and trans- encompasses the group’s input, thus creating the project’s scope. parent when managing stakeholder expectations, Mr. “Once you have blended stakeholders’ success factors and have a list Turner says. of requirements that stakeholders helped create, they are far more likely to “Explain to stakeholders that a ‘project plan’ is merely support the project as you will have created an inclusive endeavor from the a ‘projection’ of what you expect to happen in the future. outset,” Mr. Turner says. Say, ‘I can tell you with some confidence what will hap- If some priorities cannot be included in the list of project requirements, pen over the next six to eight weeks, but beyond that it is transfer them to a backlog so they are not forgotten and then commu- just not possible to know,’” he suggests. nicate this to the group. Explain the reasons why—it’s too expensive, say, Technology may change, for instance, or team mem- or you don’t have enough team members available. The project team can bers could come and go, forcing the original project plan focus on certain aspects and perhaps complete the other tasks at a later to be tweaked. time, he suggests. And that’s a good thing, Mr. Turner adds. “Following an Mr. Turner recently led a project in which he used Scrum methodology outdated project plan will merely result in a death-march and brought together the core stakeholder group every three weeks to gather project that will fail.” feedback on which priorities should form the focus of the next sprint. Instead of setting delivery dates in stone months out, “Everyone felt like they knew what was going on with the project,” he project managers should communicate to stakeholders says. “Half the job of a project manager is doing the job well; the other half is what they can expect in the first few deliveries, he says. letting stakeholders know what is going on, even if it is something that they For distant milestones, tell stakeholders what they can may not want to hear.” expect, not when, Mr. Turner adds. If stakeholders insist upon setting far-off delivery dates, it is imperative to make it clear that you are proceeding on a best-case scenario. Then, as soon as a milestone seems to be in jeopardy, this fact must be communicated immediately. Tell them, “Although I aimed to give you this par- ticular piece of functionality in the sixth month, it’s unlikely now.” Then, explain the reasons and commu- nicate the new plan based on updated priorities set by the business owner. “If you wait until the end to communicate major issues and then don’t deliver, you will lose your stake- holders’ buy-in,” Mr. Turner says. “If stakeholders have supplier choice and you fail to deliver, you won’t get chosen again and will lose their business in the future. If you are the only choice, this will still have an impact in terms of reduced expectations and a termi- nal lack of involvement in your next project.” 46 PM NETWORK March 2012 WWW.PMI.ORG
- 49. Minor Addition vs.Scope Creep Perception: All we’re asking is for some new little requirements. There’s no reason to bother going through any formal process to gain approval. Reality: Those “little” requirements add up: The project experiences scope creep as resources work on undocu- mented requirements, which translates into time and money lost. Solution: The confusion often occurs when project scope management isn’t as strict as it should be and when team members work closely with stakeholders, says Neda Akbarzadeh, CAPM, PMP, senior program manager for audit, compliance and deployment at the U.S. Department of Homeland Security’s FEMA (Federal Emergency Man- agement Agency) in Washington, D.C., USA. To avoid these situations, communicate to external stakeholders as well as team members that no changes will be accepted without the appropriate approval process. Ms. Akbarzadeh even suggests including this in team members’ performance evaluations—and penalizing them if they work on undocumented requirements. Encourage team members to communicate scope creep immediately so you can ask stakeholders if a change request is necessary. “Have constant communication, or visits if necessary, with team members or team leads beyond the typical status meetings,” she says. “It is important for project managers to understand what the team is working on or stay informed about every task being worked on.” A project management office can also help. An organization must provide tools, such as processes and an auto- mated system, for project managers to use as a knowledge center, register the project streamlines, and document the phases and deliverables, Ms. Akbarzadeh says. Fast, Cheap and High-Quality vs. You Can’t Have It All Perception: Projects can be done quickly, don’t understand the level of effort involved with each task,” she says. inexpensively and at a high quality—without sac- That disconnect arose on a recent time and attendance rificing any constraints. system implementation project at Airports Company South Africa, an airport operator in Johannesburg, South Africa. Reality: In many cases, something has to The initiative not only involved integrating the new solution give. If a project is completed quickly and inex- with an existing financial system but also process changes for pensively, quality could suffer. A project team employees. can conduct high-quality work in a short amount “The client stakeholders assumed both the process of time, but stakeholders should expect increased costs as a changes and the automation could be done concurrently and result of added resources. quickly,” says Dorcas Mbali Nkomo, senior project manager at the company. Solution: The dissension often occurs as a result of execu- In reality, a slew of unaccounted-for stakeholders—unions, tives or other divisions making promises to their stakeholders human resources, IT and legal—had to be involved. For exam- without involving the project manager—and it manifests dur- ple, the client stakeholder failed to realize the impact of the ing project kickoff, when stakeholders bring their unrealistic new solution’s legacy. expectations to the table, Ms. Akbarzadeh attests. “Changes in processes resulted in changes in staff require- “It helps to get other departments, including distant ments to perform a task. This subsequently would lead to stakeholders or policy/procedure owners, engaged to have a changes in employee contracts, warranting extensive negotia- common understanding of how the work will be done and not tions with labor unions,” Ms. Nkomo says. make promises that are not achievable,” she says. To overcome the challenge, the project team conducted To keep stakeholders up to date throughout the project life workshops with key stakeholders from the various groups to cycle, initiate conversations outside of formal status or techni- uncover solutions. In addition, Ms. Nkomo appointed change cal meetings. “At times, status meetings can get too technical agents within the organization to educate colleagues on the for most stakeholders,” Ms. Akbarzadeh says. project’s benefits and impact. Project managers should shift their focus instead to provid- “If project teams are to produce quality deliverables, stake- ing details on what exactly is required to reach each milestone. holders need to be educated on the risk of ‘quick and dirty’ “When it comes to accomplishing projects, stakeholders often projects vs. well-planned projects,” Ms. Nkomo says. PM March 2012 PM NETWORK 47
- 50. mass by PeterFretty // Photos by DaviD ahntholz migration Michael D. Falkow, PMP, City of inglewood, California, Usa
- 51. s When its mainframe becomes obsolete, a city must instigate a program to move its departmental it systems to a neW server.
- 52. C City officials in Inglewood, California, USA realized their governmental systems, including the one that handled emergency response, were dependent on a main- frame that was rapidly becoming out-of-date. Although highly resilient, the main- frame increasingly cost more and more to maintain—and was becoming harder and harder to repair. As the mainframe aged and the old-school programmers and analysts retired, it became evident that migration to a new platform was imminent. “We needed an upgrade path that alleviated our dependency on the mainframe, took into account the budgetary limitations inherent to the public sector, and still provided a robust and desirable long-term solution without compromising the com- plex business needs of a multifaceted organization,” says Michael D. Falkow, PMP, CIO and assistant city manager for Inglewood. “We also needed to put the city in a position where its information technology and communications (ITC) department could efficiently and effectively support and maintain the line of business applications without having to rely upon expensive software developers.” The city decided there was no choice but to migrate to a new platform soon after Mr. Falkow became the ITC director in mid-2005. He launched a more than US$4 million strategic program to evaluate each and every line of business application that resided on the mainframe. “From a resource perspective, I was able to convince the city manager and city council to allow me to create a systems analysis and implementation division of the ITC department where the primary mission was to evaluate technology solutions across all city departments, and a public safety systems division focused solely on our police department’s technology needs,” Mr. Falkow says. “Inherent in this strategic evaluation was a buy-versus-build-versus-modernize approach.” ITC officials found that in some cases, it might be cost-effective and more efficient US$900,000 to purchase an entirely new system; in others it could prove beneficial to join forces with other organizations. The amount of money Department by Department the city of Inglewood, The mainframe decommissioning took over five years and involved a host of internal california, usa saved by resources, including computer operators, systems analysts, project managers, devel- opers, business process experts and trainers, as well as dozens of contractors and joining a consortium of consultants. other cities on its public “After we evaluated each application, we created a project for each. In the case of safety records manage- system replacements—for example, a homegrown line of business application being replaced with a commercial off-the-shelf solution—we issued a request for proposal ment system, a savings (RFP) and went through the standard procurement process,” he says. of more than 90 percent. The finance, payroll, timekeeping and personnel system as well as the library solu- tion fell into this category. “Given our resource limitations, we weren’t able to assign a specific project man- ager to each project,” Mr. Falkow says. “In some cases, the systems implementation specialist or systems analyst became the de facto project manager. In other cases, it was the business process expert within the department who took charge.” Once the project team acquired the new system, it trained the user base as part of its implementation process. 50 PM NETWORK MarCh 2012 WWW.PMI.ORG
- 53. GETTiNG yOuR TEaMTO accEPT dEfEaT, NOT allOWiNG ThEM TO WallOW iN sElf-PiTy aNd iNsTEad lEvERaGiNG ThE lOss as a sTRENGTh GOiNG fORWaRd is a sKill ONly lEaRNEd ThROuGh ExPERiENcE. —Michael d. falkow, PMP Library SyStem: The process was one of the easiest systems to con- vert, and most of the schedule was to account for the demands of the bureaucracy, Mr. Falkow says. He and the library director visited a site in Phoenix, Arizona, USA to see a sizable and successful installation of the vendor system. After city council approval, the project team extracted all of the data from the mainframe library system, and the vendor con- verted it over to its system. After a few weeks of testing, the system went on line—nine months total, from RFP to go-live. Parking ticket SyStem: The parking ticket system proved much more complex than the library’s. The tool processes parking citations, not only for the city but for more than 60 other municipal entities around the state as well. This provides net revenue to Inglewood through a government-to-government shared services model. Each client agency pays for the services it uses—including an administration fee for the program management provided by Inglewood. That financial incentive led the governmental agency to deem it worth- while to continue providing those services, Mr. Falkow says. But the cost of developing a replacement system was estimated at US$1.5 million, and new server equipment would cost an additional US$300,000. March 2012 PM NETWORK 51
- 54. The public-private all systems Go partnership strategy for august 2005 Program launch the parking ticket system September 2005 Began discussions on avoided an estimated homegrown computer-aided dispatch US$1.8 million in system capital expenditures October 2005 Request for proposal (RFP) issued for finance, payroll and human required to develop resources system and implement February 2006 Go-live at neighboring city through government-to-government a replacement system, shared services model for the safety records management system and it shortened the September 2006 RFPs issued for dispatch required implementation and parking ticket systems time by 24 months. November 2006 RFP issued for library —Michael D. Falkow, PMP system January 2007 Library system project In addition, city officials voiced concerns about the need to launch improve system backup and disaster-recovery capabilities. March 2007 Public-private partnership “It was determined that the most cost-effective and timely established for parking ticket system course of action was to contract with a private-sector out- sourced service provider who could provide a hosted system October 2007 Vendor agreement on and the related technical and operational support staff,” Mr. computer-aided dispatch system migration Falkow says. March 2008 Library system goes live The city issued its RFP in September 2006, and eventu- July 2008 Final client agency converted to ally decided upon a vendor to provide a hosted, web-enabled new parking ticket solution citation management system, as well as the technical staff for the conversion and implementation across all client agencies. august 2009 First attempt at the dispatch “Upon completion of the implementation project, the city system project fails was in a position to terminate the mainframe-based citation November 2009 New dispatch system management system it had built, resulting in operational project launched savings associated with the maintenance and upkeep of the September 2010 Second attempt at system,” Mr. Falkow says. “It also allowed for the retirement dispatch system goes live of the principal software engineer. That position was removed from the budget from that point forward.” October 2011 Residential sound insulation Overall, the initiative resulted in ongoing savings of more department project ends than US$200,000 per year in personnel costs, he adds. November 2011 Mainframe fully The city of Inglewood was the first agency to implement decommissioned the hosted system, followed by the partner agencies based upon their size, staff availability, configuration requirements and physical location. “The public-private partnership strategy avoided an esti- mated US$1.8 million in capital expenditures required to develop and implement a replacement system, and it short- ened the required implementation time by 24 months,” Mr. Falkow attests. Residential sound insulation system: The ITC team’s last project in the decommissioning program involved residential sound insulation. This department’s 52 PM NETWORK March 2012 WWW.PMI.ORG
- 55. mission is toattain, coordinate and manage grant funds provided by the U.S. Federal Aviation Admin- istration and the Los Angeles World Airports, which runs Los Angeles International Airport (known as LAX). These funds are used to sound-insulate homes. To comply with the grant-reporting requirements, the department must file financial reports. “Recently, the granting authorities asked for a great deal of data that went back several years. We have much of this data scanned and archived in our enter- prise document management system or available in hardcopy files,” Mr. Falkow says, “but the only way to determine what exactly we need to retrieve is to access the legacy finance system on the mainframe.” This required him to contact a retired mainframe programmer/analyst for assistance. The project closed in October 2011, wrapping up the complex multi-year program. Mapping out an it No Small ChaNge Migration project Looking back on the enterprise-wide systems upgrade When the city of Inglewood, California, USA’s program, the biggest lesson was the need to always emergency-dispatch migration project failed, Micro Focus was brought in to save the initiative. Here, evaluate how a change might affect end-users before Kevin Brearley, director of product management at making a decision, Mr. Falkow says. the enterprise software maker in Newbury, Berkshire, “In the case of our emergency-response system, England, offers his advice for IT migration projects: knowing that a new system would have an impact on To stay on track and ensure success with migrations, I our 911 dispatchers and public safety personnel in the follow this seven-step roadmap: field, we chose to modernize with the help of an applica- tion migration specialist rather than buy an off-the-shelf 1. Clearly establish delivery ownership and schedule commitments of each migration component. solution,” he says. “You can’t really pinpoint a dollar value here, but it is indeed a critical success factor. In 2. During the analysis and design delivery phase, apply project management, success isn’t always based solely expert advice to technical solution design to ensure upon correctly implementing a solution on time and the solution fits your requirements and environment. on budget. If the users reject it, it’s a failure—usually an 3. Apply strong project management and solution expensive one!” architecture expertise across your project life cycle The project teams knew that any major change in and assign strong internal subject-matter experts to ensure solution adoption and success. the way departments do business would be significantly disruptive to the user base. 4. Prepare robust problem-resolution processes early Mr. Falkow also learned the significance of facilitat- (toward the end of the “build phase”) and leverage ing and supporting the project as a team effort—not pre-existing test processes to avoid wasting time in post-migration testing and production support. just internally but externally as well. “Vendors must be brought in as partners from the 5. Adopt an incident-tracking solution from the start start, and they have to want success just as much as the of your project and organize support processes and operations environment support during the project customer,” he says. “When the going got tough and we initiation phase. were trying to overcome hurdles, it was the strength of our partnerships that pushed us over the top and made 6. Limit data conversion planning to only “input files.” the program a success.” 7. Plan for cost savings, then track achievement. The organization also assigned a strategic account March 2012 PM NETWORK 53
- 56. What happens Whena Mission-CritiCal projeCt Fails? Because of the mission-critical nature “As a team, we were certainly unhappy, of supplying software to the emergency as a great deal of effort went into the proj- call center and the city’s fleet of patrol ect,” Mr. Falkow says. “I took special care vehicles, migrating the computer-aided to work with my team to ensure that this dispatch system was the most intense defeat wouldn’t permanently disable them project, says Michael D. Falkow, PMP, from putting in the same or more effort City of Inglewood, California, USA. going forward. Getting your team to accept After a two-year failed attempt that defeat, not allowing them to wallow in cost Inglewood US$210,000 (not includ- self-pity and instead leveraging the loss ing internal staff costs), the city part- as a strength going forward is a skill only nered with a vendor in August 2009. learned through experience.” Not only did he have to report the fail- What Went Wrong: The dispatch ure to the city council, but he had to ask system was the most complex system the members for an additional US$112,000 in the migration program—not only for a second attempt. because it is a mission-critical public “Project failure is only as bad as you safety system but also because the make it. If you learn from your mistakes, feature set was superior to any readily leverage as much of the work you did available commercial system. going forward and mitigate the costs of the next attempt, “After all, we built, maintained and enhanced the often the initial failure can be overshadowed by success,” system over the course of more than two decades,” Mr. he says. Falkow says. “To make matters worse, we didn’t have the The project team accomplished a rebound by leverag- funding available to purchase a commercial solution, which ing much of the time, money and resources that went into we estimated would cost us more than US$1.5 million.” the unsuccessful initiative and transferred it to the new After an evaluation of options, the project team partner. selected a subcontractor with the understanding that a “The work we did with the first vendor involved code migration would take an estimated six months. evaluating the interconnectivities among all the dispatch “After 19 months, we had to abandon the project screens, and understanding the way in which data was after a simple operating system security update took the stored, manipulated and accessed in and from the main- development system down for nearly eight hours,” he says. frame’s data structure,” Mr. Falkow explains. “We couldn’t risk taking a system as critical as a dispatch Once the second project successfully wrapped up, system into production and have a simple patch break it.” the new system allowed the governmental organiza- tion to eliminate two full-time employee positions What Was done about it: At this point, the city through retirement, saving more than US$210,000 switched to a vendor that could emulate the mainframe annually in salary and benefits. In addition, the city environment on the new server platform. was able to finally decommission its aged mainframe, The failure, while disheartening, didn’t disrupt end- another savings of US$120,000 per year in mainte- users because they were still operating on the mainframe. nance and support. manager to provide a focal point to address challenges, help triage severe problems and maintain an ongoing support dialogue. On a governmental program of this size, accountability falls heavily on all involved. The mainframe migration was highly visible to the city manager and the city council because it was about more than just money, Mr. Falkow explains. “It involved the way the city operates as a whole, and it set the stage for how it would operate going forward,” he says. The city’s ITC department has achieved a 50 percent reduction in staff headcount, from 36 to 18. “That, coupled with the increases in revenue from our government-to-government operations and decreases in maintenance fees, is dramatic to say the least,” Mr. Falkow says. “The entire program cost less than anticipated as well. Each year, we came in under budget. Part of this shrinking budget was due to cost-savings measures we intentionally put in place, and part of it was due to streamlining and other efficiencies.” PM 54 PM NETWORK March 2012 WWW.PMI.ORG
- 58. 6 career track QuEsTions To ask BEforE You TakE ThE JoB 1 by Cindy Waxer Even in today’s improving labor market, it’s tempting to jump at any job offer. But while a steady paycheck is an honorable goal, it shouldn’t come at the cost of job satisfaction, a healthy career trajectory or a comfortable corporate culture. To ensure your next project management job is the perfect fit, ask your interviewers these six questions before you accept the job:
- 59. 1 WhaT’s The corporaTeculTure lIke? If an organization’s corporate culture isn’t right for you, even the most enticing salary and benefits package might not be enough to keep you onboard. To make sure you’re join- ing a company that reflects your own personal beliefs, ask potential employers a few basic questions, suggests Everlyn Mwangi, PMP, retail quality assurance analyst at Safaricom, a telecom company in Nairobi, Kenya. “I’d want to know what environment I’d be working in in terms of dressing culture (some organizations have defined dress codes), corporate language, teamwork, corporate responsibility and any other expectations that the employer may have in terms of cultural fit,” she says. Even religious practices can play a factor—especially for a profession as mobile as project management. “If, for example, you are a Christian and you got a job in a Muslim country (or vice versa), what would the organization’s expectations be? Such guidelines would be vital for me to know lest I find myself going against my employer’s norms once I am hired,” Ms. Mwangi explains. Another consideration: Is there a project management office (PMO), and how does it fit into the corporate structure? Is project 2 management considered a senior management or junior-level activ- ity? Getting the answers to these questions will help you discover how much value the company places on project management and the level of support you’re likely to receive from coworkers. WhaT WIll my role be, exacTly? These days, a project manager’s job description can range from “a cog in the wheel” to “a key contributor.” Because of this wide spectrum, you must find out what role you will play in a company’s growth. March 2012 PM NETWORK 57
- 60. view a “I’ve worked some places where a project man- slideshow ager is supposed to set up meetings and take notes,” to find out says Amy Forsberg, PMP, program manager at RPI, what the project a print-on-demand company in Seattle, Washing- management job market is like ton, USA. “The other extreme is the project man- out there. only ager who leads projects, negotiates with vendors on pmi’s career and plays much more of an active role.” central. Find out where project managers fit in the manage- rial structure, Ms. Mwangi adds. “Will it be top level, middle level, or will I be an operational manager?” What project 4 Ask the hiring manager what a typical day looks like for an employee in a similar position at the organization, or ask what specific duties will be management expected of you. Doing so will help you determine what to expect coming into work each day. practices are in place? like it or not, some organizations aren’t at the point where they consider project management a strategic competency. And for those that do, there are no hard and fast rules how to practice project management. “That’s all the more reason to ask whether a potential employer has specific standards, meth- ods and tools for project management or if they allow project managers to carry on projects with their own standards and procedures,” says Colin A. McCall-Peat, PMP, enterprise PMO manager at Gijima, an information and communications technology firm in Johannesburg, South Africa. The answer often correlates directly with 3 how you can shape your role as a project profes- sional at the organization. “I worked for a company where I was respon- sible for making sure stakeholders agreed with the project, making sure the right team was in Where do you see place and negotiating with vendors,” Ms. Fors- the organization berg says. “In that case, I picked my own project management processes.” in five years? Take your questions a step further to get into the nitty-gritty details, Ms. Mwangi advises. in today’s economy, it can be commonplace to join a company only to discover For example, “What is the project management that it’s merging with a competitor in eight months’ time. Avoid such surprises by structure of the organization? Is it projectized, inquiring along these lines: “I like to know what the company’s business goals are, functional or matrix? What type of projects will especially if the company is a start-up,” Ms. Forsberg says. “With a start-up, it is I be running in terms of size and frequency?” important to know if they are planning to do an initial public offering, want to be How an organization perceives a failed proj- acquired or something else.” ect, and its strategies for picking up the pieces, The answers to these questions often determine “if a paycheck is going to last are also strong indicators of whether or not a more than six months,” she explains. potential employer is right for you. Determining an organization’s direction can also help you assess your own poten- “Ask what the implications for a project tial for professional development. manager are if a project fails,” Mr. McCall-Peat “As the organization grows and expands, I would also expect my role to grow and recommends. “And if a project has to change expand so that I’m able to keep up with the changing trends in project management,” course, are there certain recovery steps and Ms. Mwangi says. scope change management processes in place— or does the company allow willy-nilly changes?” 58 PM NETWORK March 2012 WWW.PMI.ORG
- 61. 5 What technologies supportproject management at the organization? Will your days be filled with Excel spreadsheets or a highly sophisticated project management system? The answer to this question could mean the dif- ference between being frustrated by mounds of paperwork and enjoying the simplicity of an automated process. Look for an organization that has implemented tools such as a portfolio management system, project management templates and a solid reporting structure, Mr. McCall- 6 Peat suggests. Communication software varies from one company to the next, so find out exactly what is used, Ms. Forsberg recommends. What Advice From Your Peers opportunities Perhaps the most impor- Will you have authority? are there for tant thing would be to Without it, one is impotent advancement? ascertain the level of management commitment to perform project man- agement. You may have and support for program taken on the responsibility, management, and the true but with no authority to You might have landed a new level of authority a pro- effectuate your plans, it’s a job—but you still have to think gram manager is given. bad trip down microman- about your future. There are a num- —Ray Abrishami, InLinx agement and blame road. ber of specific questions you can ask Communications, San —Andrea Pappas, to seal your upward mobility. Francisco, California, USA AutoScribe, “Ask to see the career frame- Washington D.C., USA work for the project management First you should create job family so that you can get an a relationship with the I would ask about the idea of what different job titles interviewer and understand organizational structure. Is there are, and how these differ- what he or she wants. If I there project management ent levels are represented,” Mr. want to decide whether to or functional leadership? McCall-Peat says. “A company accept or reject a job, I ask Is it a weak, strong or bal- should also have a development what my job will be—and anced matrix? Also, do roadmap for how to get from one level to the next—what kind the answer should not only they have an internal proj- of qualifications, training, skills and competencies one needs to be a job title like “project ect management method- progress.” manager.” The answer ology? If so, for how long Another concern: How far is an organization willing to go to should consist of a com- and to what level of suc- help you move up its ranks? Will they pay for training or certifi- plete description to specify cess? Some organizations cations? Do they offer a mentorship program that allows you to my duties, responsibili- consider themselves proj- learn from the company’s leaders? ties and expectations. My ect management-driven “If the project management role is valued by the company, it’ll second question is: Who but don’t actually practice help you with additional education and will be more open to you will be my boss? To whom what they preach. expanding your role within the organization,” Ms. Forsberg says. should I report? Sometimes —Kathryn Meekings, it is not acceptable for me Drivetrain Power and Pro- Still, no matter how strong your investigative skills, there will to report to several bosses pulsion, Sydney, Australia always be surprises once you start your position as a project if that means consuming professional at a new organization. most of my time collect- “I have never taken a job that was exactly like it was broad- ing information to prepare cast to me,” Ms. Forsberg says. reports with different for- share your expertise But asking a few carefully thought-out questions can give mats for each boss. and network in the pmi career central group you a better idea of what you’re in for…before it’s too late. pm —Kiumars Mahmoodzadeh, on linkedin. TAM Iran khodro Co., Iran
- 62. T Four case studies to coMbat tiMe co 60 PM NETWORK March 2012 WWW.PMI.ORG
- 63. Time reveal the winningstrategies project proFessionals used nstraints—especially as circuMstances changed. Tamers by Lisa Tomcko With project teams spread across organizations and conti- nents, keeping efforts on schedule has become increasingly complex. “Understanding advanced scheduling techniques will be something especially indispensable for any project man- ager in the future,” says Imad Mouflih, PMI-RMP, PMI-SP, PMP, project manager at STC, a Riyadh, Saudi Arabia- based telecom company. From cutting years off a complex program to missing deadlines without upsetting stakeholders, he and other project professionals share their insights about managing ever more intense scheduling demands. March 2012 PM NETWORK 61
- 64. [caSE STudy] holding Team members accounTable The challenge: A 28-month, £145 million construction project at Heathrow rendering courtesy of grimshaw architects Airport in London, England involved integrating the schedules of more than 10 teams and standardizing procedures across different tools. Project teams built a pier, a large corridor connecting the terminal with the gates. Scheduling Technique: Dimitris Antoniadis, PhD, operations and compliance manager at Carillion, a construction services com- pany in Worcester Park, Greater London, England, developed a project control handbook that detailed how all project manage- ment practices, including scheduling, were to be carried out. As parties joined the project, they received the document. They were also informed up front that they were to be held accountable for monitoring progress on their activities against the master schedule and, at designated intervals, rolling up that data into summary activities. Dr. Antoniadis would then insert the summaries into the master schedule. He required each activity to have a monetary value associated with it, so that if it were delayed or moved, impact on cost could be immediately assessed. At first, some stakeholders were wary of the transparent scheduling and project control procedures. “It took me two hours to convince a director from a separate party to use the work breakdown structure,” Dr. Antoniadis says. End result: Integrating the schedule with the cost, risks and opportunities in an overall program of works helped to result in a £35 million savings for the client, Dr. Antoniadis says. The standardization of scheduling procedures proved popular. “In the end, everybody, even the project’s sponsors, congratu- lated the team because the techniques did work.” Scheduling Takeaway: Develop an efficient, simplified system for monitoring the project that can be transferred across different scheduling tools. Build in the ability to order more detail on an activity’s progress as needed and consider combining risks with the schedule to better spot delays—and their monetary impact. [caSE STudy] Trimming 14 Years off a schedule The challenge: The U.S. Department of Energy (DOE) In 1999, when the program schedule was estimated, it launched a US$3 billion environmental restoration was determined it would take over four decades, ending program that encompassed more than 70 projects. in 2040. Several years into program execution, the DOE The project’s scope included the remediation of several requested that the schedule be accelerated by 14 years— areas contaminated by nuclear waste at the Savannah leaving Mr. Vakil with the task of fast-tracking a complex River Site in South Carolina, USA, a 300-square-mile program while maintaining the appropriate change con- (483-square-kilometer) area. trol. This acceleration would cut the project duration by “From the outset, the one third, resulting in substantial cost savings. program’s size and com- plexity made creating Scheduling Technique: To tackle the sheer immen- a master schedule and sity of the program, Mr. Vakil broke down the entire pricing out the multi-year program into sub-projects and developed a master baseline and overhead schedule using the critical path method. He matched factors, along with the the estimating work breakdown structures (WBS) to integration of seven proj- the schedule WBS, identifying links between projects to ect teams, very difficult,” analyze subsequent schedule impacts. says Manan Vakil, PMI-SP, Mr. Vakil and his colleagues formatted the schedul- PMP, project reporting ing software to allow only the team responsible for a manager at Fluor, who project to provide schedule updates. oversaw the program. He also developed a consistent schedule cod- 62 PM NETWORK March 2012 WWW.PMI.ORG
- 65. ing structure acrossthe program so that projects could be Funding from the U.S. American Recovery and Reinvest- reported at various levels of management, disciplines and ment Act covered the cost of adding resources to execute the remediation areas. For instance, upper management could work in less time. review schedule progress by milestones, while project teams could review summary activities. End result: By continuously analyzing the schedules of the When the client requested the intense schedule accelera- projects in the program and monitoring time buffers that tion, it offered Fluor a financial award for each project it suc- were allotted to activities in case of delays, Mr. Vakil and his cessfully completed early. teams successfully accelerated the schedule and attained the At that point, Mr. Vakil developed another working sched- financial awards. The program is now slated for completion ule by pricing out the program without any overhead fac- in 2026. tors, moving resources to where they were most needed. He assigned activities to be done in parallel—or early—when pos- Scheduling Takeaway: Even the most massive projects sible. He then took the pricing model amounts and put them can be conquered when broken into manageable chunks. into the change control to determine the monetary value. Closely monitoring resources and managing projects simul- Once the accelerated schedule was approved, it became the taneously or out of sequence can cut years off of a com- new baseline. plex program. [caSE STudy] SAlVAging An “UnreAliSTic” commiTmenT The challenge: Eager to win an oil storage facility project in Fujairah, United Arab Emirates, equipment maker Belleli Energy Srl committed to an 11-month schedule—even though the client said it was anticipating a 13-month turnaround. Compounding that challenge was the fact that the US$22 million Socar Aurora Fujairah Terminal project involved virtual team members based in Italy and India, as well as foreign suppliers in India, Italy, the Netherlands and the United States. An accelerated schedule put more pressure on all team members to make their deadlines. Scheduling Techniques: A. Vincent Paul Raj, PMI-SP, PMP, construction manager at Belleli, and his team: 1. Ordered long-delivery-time items, such as roofs and pumps, as early as possible 2. Used a pre-determined list of qualified agencies to delegate inspection of all materials on each supplier’s premises 3. Airlifted critical items, such as main oil pumps and valve actuators, for speedier delivery Despite these efforts, though, the supplier from the Netherlands failed to deliver the pumps for loading oil onto the ships on time. Without these items, the project team could not complete construction, and the project missed its deadline. “Of course stakeholders were not happy, but at least they were kept The Added Wrinkle of Scheduling Virtual Teams informed about the situation,” Mr. Raj says. He forwarded them the project schedule every week. As a result, stakeholders knew the delay was coming and “The conflicts that arise in all proj- ects—scheduling in particular—are agreed to reset the schedule to a tentative 13-month time frame dependent more prone to arise in virtual teams, upon when the pumps finally arrived. unless we maintain adequate human In an attempt to prevent further holdups, Mr. Raj and his team performed a resources and communication plans, what-if analysis to identify key deliverables’ worst-case scenarios and how those and unless we realize that the needs of situations would affect dependent activities along the critical path. a virtual team are the same as those of a face-to-face team.” The team divided the project into work packages (engineering, procurement, construction, etc.). Within a package, each task was broken down to the individ- —Fernando Contreras, PMI-RMP, PMI-SP, PMP, Project Management & Engineering Services, ual activity level. Pump and dome roof supply, for example, were deemed critical. Lima, Peru March 2012 PM NETWORK 63
- 66. Addicted to Technology Projectmanagers today have an array of scheduling tools at their disposal. But never let yourself be utterly dependent upon software, warns Patricia Di Cunto Bracco, PMI-SP, PMP, project manager in the project management office of Banco Bradesco S.A., a bank in São Paulo, Brazil. “We must remember that the use of tools is fundamental to support- ing the project manager, but interpretation of results is up to the capability and experience of the professional.” [caSE STudy] SAving A ProjecT ThAT ByPASSed due diligence Team members were responsible for closely The challenge: A project team building an industrial monitoring all supplier progress—and, in at least plant in Thailand did not plan for country-specific front- one case, terminating a poorly performing subcon- end requirements, and the initiative was quickly thrown tractor (having Belleli execute the work directly). off schedule. Bob Albers, owner and managing director Temporary pumps were used until the perma- of Project Solutions International, a construction and nent ones arrived. To mitigate risk, the team hired energy project management consultancy in Bangkok, a third party to inspect the pumps before delivery. Thailand, was brought in to readjust the schedule and These extra measures raised the project con- get the US$65 million project back on track. struction cost by 10 percent, Mr. Raj says, but his Once constructed, the plant will be used to refine organization willingly absorbed the increase to win the byproduct of a manufacturing process into a sell- phase two of the project. able commodity. But the client had not considered that the process’s environmental consequences might make End result: The Dutch subcontractor finally deliv- obtaining land for the plant challenging. The team had ered the pumps in December 2011, and although also underestimated how long it would take to secure the project missed the 13-month deadline as well, tax, machinery and product import and export incentives stakeholders were forgiving because the team had from the Thai government. kept them abreast of the situation, Mr. Raj says. “Something that a lot of companies get into when “Transparency in communication gained the trust they go to work in a foreign country is they don’t under- of stakeholders,” he adds. “Now they are negotiat- stand the bureaucracies that they have to deal with,” Mr. ing with us for the next phase of the project.” Albers says. Missing the original commitment prompted better communication between the company’s Scheduling Techniques: First, Mr. Albers worked on con- commercial and project management units. vincing the home office in the United States to accept “The project management department gave that the unanticipated complications made hitting the feedback to our project director that it’s not good original completion date unfeasible. to commit unpractical dates to the client,” Mr. Raj Meanwhile, he and his team used project risk- and says. “This was taken very seriously in phase two.” resource-analyzing tools to come up with a new schedule— The project team gave the worst-case scenario this time accounting for local conditions. project delivery date, which was accepted by the client. End result: The project team found that by reducing engineering and construction durations, it could deliver Scheduling Takeaway: Communicate across within six to eight weeks of the original date. Contrac- departments during the planning phase to prevent tors would have to take measures to complete the same commitment to an unrealistic schedule. Especially amount of work in less time, which naturally raised their useful for fast-tracked projects, critical chain helps costs. Mr. Albers explained the situation, and the client break down tasks essential to hitting deliverable signed off. dates. Inform stakeholders of worst-case scenarios so any delays don’t come as a surprise. Scheduling Takeaway: Perform due diligence on all of the factors that could affect the schedule—especially when working in a country with different regulations. PM 64 PM NETWORK March 2012 WWW.PMI.ORG
- 68. HelpDesk The Rise ofVoIP Voice over Internet protocol can put an organization on the road to a unified communications strategy. by Peter Fretty When assessing the factors that contribute to a project’s success, been no exception.” a team’s ability to effectively communicate repeatedly surfaces to VoIP for mobile devices and session initiation protocol (or SIP the top. Many times, it’s the technology that serves as a crutch— trunking—a service that allows organizations to use VoIP without los- especially when legacy voice systems are end of life. ing the many features of its phone system) are surfacing as key areas “For many organizations, the handwriting has been on the wall for of interest. quite some time,” says Art Schoeller, principal analyst with research In addition, the growing importance of unified communications firm Forrester in Westport, Connecticut, USA. among organizations as a critical tool to enhance business productiv- Over the past decade, continued evolution has been the only con- ity is having a profound impact on the VoIP services market. stant within the world of corporate telecommunications, from the VoIP helps reduce expensive charges for project team members ongoing mobile explosion to the steady growth of voice over Internet using mobile devices while traveling in other countries. protocol (VoIP) to unified communications deployments designed to “Instead of making the call incurring roaming charges, team integrate all forms of communication (video, voice and data) into a members could tap into a WiFi connection and use a ‘softphone’ like single point of contact, whether onsite or mobile. Skype,” Mr. Schoeller says. The trend of organizations outsourcing their communications VoIP truly excels when large organizations are ready to move to a infrastructure has taken off in earnest, says Subha Rama, customer centralized model for voice instead of using private branch exchange research manager at Siemens Enterprise Communications in Oyster (PBX) configurations at each site. Bay, New York, USA. “The migration to Internet protocol tech- “Ultimately, this can lead to a cloud model,” Mr. Schoeller says. nologies is in full swing in the enterprise communications market, “Plus, organizations are looking at moving to unified communica- mainly because of the significant cost savings,” she says. “Given tions, incorporating instant messaging (IM), presence [which shows the economic instability in many of the global markets, companies if someone is on the network and available] and web conferencing, are looking at technologies and delivery models that would sig- which is much more geared towards VoIP instead of traditional time- nificantly reduce capital expenditures and result in sustained ROI. division multiplexing environments.” Widespread use has led to the evolution of cloud-based delivery When properly deployed, VoIP can be the stimulus and backbone models for core enterprise applications, and communications has for a solid, unified communications deployment. “Tools such as inte- Mobile VoIP VIPs VoIp SerVIce VIdeo MobIle operatIng SySteM coMpatIbIlIty group VIdeo MeSSenger detaIlS Skype Yes PC, Mac, Android, iOS Only with premium Yes Free download. Premium service enhances features. Google Voice Yes PC, Mac, Android, limited on iOS Yes Yes Requires Google email account for full functionality. SipDroid Yes Android No No Requires Google Voice number. Ongoing development. Fring Yes iOS or Android Yes Yes Free download. GrooVe IP No Android No No App costs US$4.99. Requires Google Voice number. 66 PM NETWORK March 2012 WWW.PMI.ORG
- 69. APPEARANCE OF ANYPRODUCT OR MANUFACTURER IN PM NETWORK DOES NOT CONSTITUTE AN ENDORSEMENT. 29 million+ The number of mobile VoIP Simply put, organizations implement- subscribers by the end of 2011, Is your organization deploying ing VoIP need to look at the applica- unified comunications? up from 9 million the year before tions from the perspective of their 2012 Source: In-Stat long- and short-term requirements, 2010 US$76 billion including whether or not team mem- bers are disparate and the role a web- Deployed and utilizing The amount of revenue the entire based unified communications strategy 36% VoIP market is expected to exceed can play in improving communication 30% by 2015 among team members and with stake- Plan to deploy in the next 6 months Source: Infonetics Research holders. 11% Consultant Consideration: 9% Panasonic Plan to deploy in 7 to 11 months grated voice and web conferencing can help With its Cloud Business Phone System, 9% project teams collaborate more rapidly instead Panasonic surfaces as a solution for of using email to make decisions,” he says. consultants running a business out of 8% “Also, real-time presence status can help team their home. There’s one connection Plan to deploy 12 to 24 months members know about each other’s availability for business calls and one for personal 11% to collaborate so they can resolve issues more use. With expansion capabilities of up 14% readily.” to three hosted voice connections, six cordless handsets and eight phone Have no plans to deploy Picking a Provider numbers, the solution can grow with a 33% When it comes to choosing hosted VoIP pro- business. Features include voicemail to 39% viders, Mr. Schoeller says organizations need email via .wav files, call forwarding and Source: InformationWeek Unified Communications Survey of 302 North American to consider these factors: up to five-way conferencing. business technology professionals in September 2011 and 406 in April 2010 n References and proven architecture. While Small Business Selection: Digium start-ups may offer solid solutions, it’s a Digium bases its solution on the Switchvox tool. Geared for the small to medium-sized enter- massive risk to put an organization’s ability prise market, it offers audio conferencing, video calling and IM via open-source Jabber. Internet to communicate in untested waters. access and videoconferencing are offered through partnerships, some of which are open source. n The case for migration. Providers should play a key role in selling the idea of a migration Enterprise Enablement: Avaya project to stakeholders. They must provide a A unified communications provider, Avaya uses the VoIP environment to provide a single- proposal that defines an effective migration point solution for all means of communication (video, voice or data). With scalability and from the current environment to VoIP and the ability to unify systems, devices and applications from multiple vendors, the Aura solu- ultimately makes the business case. tion is designed to work for organizations of all sizes. n A clear roadmap to unified communica- tions. Single-point unification, simplification Going Mobile and flexibility are the keys to the future of Affordable options across the mobile VoIP landscape are growing exponentially, led by communication. Without a clear roadmap Skype, Google Voice, Sipdroid, Fring and GrooVe IP. Each offering has its own set of distinct in place, taking the next step could resem- benefits (such as the ability to blend video, voice and text communication) and limitations ble starting over. (operating system compatibility). PM MArCh 2012 PM NETWORK 67
- 70. pmiMarketplace HOW TOORDER Online: Marketplace.PMI.org | Telephone: 1-866-276-4PMI (U.S. and Canada) or +1-770-280-4129 (international) | Email: info@bookorders.pmi.org Phone ordering hours now extended until 8:00 p.m. U.S. Eastern Time (GMT -5) Monique Aubry, PhD, MPM, Ralf Müller, DBA, MBA, PMP, and Johannes Glückler, PhD Governance and Communities of PMOs A comprehensive survey and discussion of the theory surrounding multiple project management offices (PMOs) form the basis of this research report. “Communities” are the newest approach, characterized by opportunities and hurdles in current management contexts. The report includes four case-study examples from the international telecommunications, healthcare, financial and pharmaceutical industries; clear and helpful graphics that illuminate theoretical concepts and sum- marize case study data; and an interesting and revealing “bagel metaphor” that discloses the short- comings of centrally implemented PMOs. The authors describe benefits to both practitioners and academics in their conclusions. Project Management Institute, 2012, ISBN: 9781935589488, paperback, 106 pages, $23.95 Member, $29.95 Nonmember Project Management Institute Frank Ryle, PMP Lyssa Adkins Practice Standard for Earned Keeping Score: Project Coaching Agile Teams: A Value Management—Second Management for the Pros Companion for ScrumMasters, Edition Agile Coaches, and Project Integrating the Managers in Transition This new edi- worlds of golf and tion augments the project management, Migrating from earned value man- this compelling and “command and agement (EVM) provocative business control” to agile information in A novel focuses on coaching requires a Guide to the Proj- three main charac- whole new mindset. ect Management ters challenged with This timely book Body of Knowledge creating a flexible gives agile coaches (PMBOK® Guide)– new project management framework to the insights needed Fourth Edition. It addresses the use of transform a company facing dire straits. to adopt this mindset and guide teams EVM for medium and small projects, as Readers follow the trio as they attempt to extraordinary performance in a reen- well as shows that the technique is still to integrate three different project man- ergized work environment. Readers will relevant for large projects. It also pro- agement perspectives into one inclusive, learn about the role of the agile coach, dis- vides detailed explanations of the basic convergent approach, discovering paral- cover what works and what doesn’t, and elements and processes of EVM and lels between the step-by-step structure of learn how to adapt powerful skills from demonstrates how to scale EVM to fit project management and the hole-by-hole many allied disciplines, including the fields varying project sizes and situations. The nature of golf. The narrative intertwines of professional coaching and mentoring. standard also provides in-depth coverage logic and analysis with story and creativ- Coverage includes understanding what of more complex EVM subjects. Filled ity, introducing a practical approach to it takes to be a great agile coach, master- with graphical examples, the book allows managing projects and offering valuable ing all of the agile coach’s roles and creat- readers to establish and execute EVM on lessons for almost any work environment. ing an environment where self-organized, projects in almost any environment. high-performance teams can emerge. Project Management Institute, 2011, International Institute for Learning, 2011, Addison-Wesley Professional, 2010, ISBN: 9781935589358, paperback, 135 pages, ISBN: 9780983025702, paperback, 193 pages, ISBN: 9780321637703, paperback, 352 pages, $44.75 Member, $55.95 Nonmember $18.95 Member, $19.95 Nonmember $40.85 Member, $42.99 Nonmember 68 PM NETWORK March 2012 WWW.PMI.ORG
- 71. Featured Books Marketplace.pMI.org Serghei Floricel, PhD, Sorin Piperca and Marc Banik, PhD Increasing Project Flexibility: The Response Capacity of Complex Projects “E xpect the unexpected” is excellent advice for all project managers, especially those involved in highly complex projects. While the importance of effectively handling unexpected events is often mentioned in project lit- erature, formal study of the matter has been lacking. Increasing Project Flexibility: The Response Capacity of Complex Projects fills this void. Projects generate a social structure that is unique to each organization. One of the essential properties of the structure is its ability to deal with unexpected events or what the authors call its “response capacity.” To explore and better understand this element, the writers adopt a three-stage approach that includes theoretical development, qualitative investigation and quantitative exploration. In the theoretical development stage, the study draws on fun- damental social theories and prior project management research to propose three properties of the project structure that define its response capacity: cohesion, flexibility and resourcefulness. Theory meets practice in the qualitative investigation stage. The authors examine 17 field case studies completed across a variety of business sectors. They use the studies to identify con- crete activities and relations that correspond to the dimensions they developed theoretically. While the importance In the quantitative exploration stage, the authors create a survey based on of effectively handling the concrete examples gathered in the qualitative stage to measure the con- unexpected events is often cepts developed theoretically. mentioned in project liter- This study is an important addition to project literature and research, its details providing value to academics and practitioners alike. ature, formal study of the matter has been lacking. Project Management Institute, 2011, ISBN: 9781935589372, paperback, 167 pages, $23.95 Member, $29.95 Nonmember This book fills that void. March 2012 PM NETWORK 69
- 73. ServiceS Directory aDvertiSer Directory Toreceive free information about products or services advertised or listed in this issue, please contact advertisers via their web address below. page advertiser UrL 7, 71 American Graduate University www.agu.edu 17 Barbecana Inc www.Barbecana.com 71 Bellevue University www.bellevue.edu 70 Gartner www.gartner.com/us/ppm 71 PM Educate www.pmeducate.com 2 PM Solutions www.pmsolutions.com C2 PM Study www.PMstudy.com 55 Project Management Institute www.pmi.org 4, C3 Project Management Training Institute www.4PMTI.com C4 RMC Project Management www.rmcproject.com 71 University of Houston www.tech.uh.edu/programs/professional/ 65 Villanova VillanovaU.com/Lead 71 University of Management and Technology www.umtweb.edu
- 74. “It is difficult to get an accurate estimate now because we really don’t have a very good understanding of the level of devastation, the amount of the meltdown, and the material that needs to be removed and the exact radiation level.” —Najmedin meshkati, PhD, university of Southern California, los angeles, California, uSa photo courtesy of IAeA closing The earthquake and tsunami that crippled the Fukushima Dai-ichi nuclear plant in Ōkuma, Japan has prompted a 40-year-long project to decommission three wrecked reactors and spent fuel rods. Nuclear crisis minister Goshi Hosono acknowledged that it’s “an unprecedented Credit project,” and that the process isn’t “totally foreseeable.” “But we must do it even though we may face difficulties along the way,” he added. Before the plan was approved, plant operator Tokyo Electric Power Company (TEPCO) consulted with experts and nuclear regulators to determine the best means of removing the toxic items—though the exact location of the melted fuel remains unknown. PrOJECT: Fukushima Dai-ichi Because of the extremely high levels of radiation, the process will require yet- nuclear plant cleanup to-be-developed remotely controlled robots. BuDGET: uS$14.8 billion TEPCO has been commissioned to start removing the spent fuel rods within ESTimaTED COmPlETiON DaTE: 2051 two to three years, and engineers hope to begin disposing of the melted fuel within a decade. 72 Pm NETWOrK March 2012 WWW.Pmi.OrG