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Agila ”projekt” - Ett nytt sätt att
                 standardisera?
                                         .
            Standardisering och agilt, finns det någon motsättning?
Vad är standardisering av projekt och projektverksamhet inom ett företag, och
vad fyller den för behov? Och vilka är drivkrafterna bakom denna utveckling?
      Finns det någon motsättning mellan agila utvecklingsmetoder och
 standardisering av projektprocessen, eller är de i själva verket bara ett nytt
     kapitel i historien om projektens institutionalisering inom företagen.
                 En kort presentation av mitt forskningsprojekt.
                                 Inger Bergman
                             Industrial PhD Student
                         Chalmers University of Technology
                             Senior PM Consultant
                           Semcon Project Management
Agenda

• Kort presentation av mig och mitt
    forskningsprojekt
•   Projektet som en organisation i organisationen
•   Standardisering och institutionalisering – två
    sidor av samma mynt
•   Agila arbetssätt – vilka krav ställer det på en
    organisation och dess projekt
Min bakgrund
10 år som lärare
15 år med projektmetodstöd på Ericsson
10 år som konsult
Och nu – forskare på deltid på Chalmers University of
Technology

Dags att summera…..

Från traditionell tillverkningsindustri till projektbaserad
utveckling:
• Vad var det som hände?
• Hur var det möjligt och vem gjorde det?
• Och vad händer sen?
Theoretical Framework

I approach the subject from organization theory,
rather than a traditional project management
perspective by looking at firm-based projects as:

  Temporary organizations
  embedded in a parent organization
  with different levels of coupling to the
  organization, its projects and environment
Analysis Model




The model makes it possible to study a firm-based project’s
coupling to its parent organization from different perspectives
A Project’s Coupling to Its Organization




Hypothesis:
• At least one link is decoupled (otherwise part of “business as usual”)
• At least one tight link (otherwise not “firm-based”)
Examples of Negative Effects from Loose Coupling
 Structure Perspective
 • Poor management control
 Process Perspective
 • Poor quality, time and cost control
 People Perspective
 • Poor knowledge transfer
 • Loss of knowledge gained in projects
 Product, Mission
 • Poor control of alignment with strategies
Standardization

Standardization is a means to tighten
the projects’ coupling to its parent
organization (“the company”) through
formalization of project processes,
work products and competencies.

Examples of standardization
initiatives in the company’s history:

•   Standardization of terminology
•   Standardization of project documentation and reporting
•   Standardization of project management process
•   Standardization of knowledge and attitudes through certification
    of project managers
Institutionalization
Institutionalization initiatives have
mainly been focused on tightening the
coupling by adapting the company
structure and processes
to the demands of the projects.



Examples of institutionalization
initiatives in the companys history:
• Institutionalization of project roles for line managers
• Establishment of project management offices (PMO)
• Institutionalization of project governance (project sponsor role,
    fixed steering groups, project portfolio management)
• Integration of project financial planning and reporting into the
    corporate financial system
Example 1: Internal Change Project




Typical pattern for internal change with loose coupling in the process and
structure perspective.
Success criteria: Tight coupling in the people and mission perspective
Example 2: A Typical Customer Project




By loose coupling in the structure perspective, the project is free to
adapt to the customer’s organization
Also processes need to adapt to the customer, but are mainly
developed to optimize the product delivery and integration
Project management teams are internal but the projects employ
subcontractors
Example 3: New Product (with New Technology)
              Development Project




By the loose coupling in the product perspective, the project is allowed to
be innovative and explore new technology and business ideas
New technology also means exploring new processes and ways of working
Agile Manifesto

“We are uncovering better ways of developing software by doing it and
helping others do it. Through this work we have come to value:

   Individuals and interactions    over processes and tools
   Working software*               over comprehensive documentation
   Customer collaboration          over contract negotiation
   Responding to change            over following a plan

That is, while there
is value in the items on the right,
we value the items on the left more.”

* Project result??
Agile Development




              Downloaded from Wikipedia 20111010
              http://en.wikipedia.org/wiki/Scrum_(development)
Environment
                                          Business
                                          Technology
                                          Project trends
                                                           Digital
     Perspectives on the organization



                                                                         1G
                                                                                        2G
                                                                                                                                         3G
                                                                                                                                                                       4G
                                        Products & offerings                                                                                              Multimedia
                                                                                                                                              Services

                                        People


                                        Processes
                                          Development processes
                                          Delivery processes                                       Rev1          Rev2           Rev3              Rev4               Rev5

                                          Project processes/support
                                        Structure
                                                                       M-structure                        Matrix Organization            Centralization     Globalization
                                                                       Functional Organization                                             Outsourcing/
                                                                                                           Mergers/Growth                  Downsizing

                                        Projects                                                                                                         Customer
                                                                                                                                                         Projects
                                                             Infrastructure Projects
                                                                                                                  R&D Projects
                                                                                                                                               Internal Change Projects

                                                                                                                          Institution-     Standardiza-  Project
        The                                                   The First                Single Project       Common         alization        tion of PM  Portfolio
    “Traditional”                                           “New” Projects             Management         Standardized
                                                                                                          Terminology          of          Competence Management
      Projects
                                                                                                                            Projects
1876
1876
   1970                                       1975              1980            1985             1990           1995            2000              2005            2010
                                                                                                                                                                  2010
Example 4: Agile Product Development Project




The development process is “built-in” and fully aligned with the organization’s way of
working, a situation that requires less need for documentation.
Fixed teams with cross-functional competence - strong coupling in the people
perspective.
The permanent organization has a structure that is well adapted to support the
development work.
Semi-tight coupling in the product perspective opens up for allowing new requirements
while at the same time ensuring full understanding of impact of suggested changes.
Tight coupling between the project benefits and the organization’s mission and value-
adding responsibility.
Institutionalization Supporting Agile WoW

Examples of institutionalization
initiatives in the company’s history:
• Institutionalization of project
    roles for line managers
• Establishment of project
    management offices (PMO)
• Institutionalization of project
    governance (project sponsor role,
    fixed steering groups, project portfolio management)
• Integration of project financial planning and reporting into the
    corporate financial system
• Establishment of a permanent matrix organization
    (legal organization vs. operational - “product-based”)
• Establishment of fixed development teams
• Introduction of fixed released dates for new releases of products
Consequences of the Agile Approach
       for the Company’s R&D Organization

•   Shorter “projects” with increasing need for integration and
    coordination and eventually to program management

•   Focus for project management has shifted from
     planning and progress control
        to
     coordination, integration, and value-driven quality control

•   Closer alignment between product portfolios and project
    portfolios

•   The project-line dilemma is almost gone – with empowered fixed
    teams for which product development is “business as usual”.
Tack!




Frågor?

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Strøm 5 - Inger Bergman - Agila projekt, ett nytt sätt att standardisera

  • 1. Agila ”projekt” - Ett nytt sätt att standardisera? . Standardisering och agilt, finns det någon motsättning? Vad är standardisering av projekt och projektverksamhet inom ett företag, och vad fyller den för behov? Och vilka är drivkrafterna bakom denna utveckling? Finns det någon motsättning mellan agila utvecklingsmetoder och standardisering av projektprocessen, eller är de i själva verket bara ett nytt kapitel i historien om projektens institutionalisering inom företagen. En kort presentation av mitt forskningsprojekt. Inger Bergman Industrial PhD Student Chalmers University of Technology Senior PM Consultant Semcon Project Management
  • 2. Agenda • Kort presentation av mig och mitt forskningsprojekt • Projektet som en organisation i organisationen • Standardisering och institutionalisering – två sidor av samma mynt • Agila arbetssätt – vilka krav ställer det på en organisation och dess projekt
  • 3. Min bakgrund 10 år som lärare 15 år med projektmetodstöd på Ericsson 10 år som konsult Och nu – forskare på deltid på Chalmers University of Technology Dags att summera….. Från traditionell tillverkningsindustri till projektbaserad utveckling: • Vad var det som hände? • Hur var det möjligt och vem gjorde det? • Och vad händer sen?
  • 4. Theoretical Framework I approach the subject from organization theory, rather than a traditional project management perspective by looking at firm-based projects as: Temporary organizations embedded in a parent organization with different levels of coupling to the organization, its projects and environment
  • 5. Analysis Model The model makes it possible to study a firm-based project’s coupling to its parent organization from different perspectives
  • 6. A Project’s Coupling to Its Organization Hypothesis: • At least one link is decoupled (otherwise part of “business as usual”) • At least one tight link (otherwise not “firm-based”)
  • 7. Examples of Negative Effects from Loose Coupling Structure Perspective • Poor management control Process Perspective • Poor quality, time and cost control People Perspective • Poor knowledge transfer • Loss of knowledge gained in projects Product, Mission • Poor control of alignment with strategies
  • 8. Standardization Standardization is a means to tighten the projects’ coupling to its parent organization (“the company”) through formalization of project processes, work products and competencies. Examples of standardization initiatives in the company’s history: • Standardization of terminology • Standardization of project documentation and reporting • Standardization of project management process • Standardization of knowledge and attitudes through certification of project managers
  • 9. Institutionalization Institutionalization initiatives have mainly been focused on tightening the coupling by adapting the company structure and processes to the demands of the projects. Examples of institutionalization initiatives in the companys history: • Institutionalization of project roles for line managers • Establishment of project management offices (PMO) • Institutionalization of project governance (project sponsor role, fixed steering groups, project portfolio management) • Integration of project financial planning and reporting into the corporate financial system
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  • 11. Example 1: Internal Change Project Typical pattern for internal change with loose coupling in the process and structure perspective. Success criteria: Tight coupling in the people and mission perspective
  • 12. Example 2: A Typical Customer Project By loose coupling in the structure perspective, the project is free to adapt to the customer’s organization Also processes need to adapt to the customer, but are mainly developed to optimize the product delivery and integration Project management teams are internal but the projects employ subcontractors
  • 13. Example 3: New Product (with New Technology) Development Project By the loose coupling in the product perspective, the project is allowed to be innovative and explore new technology and business ideas New technology also means exploring new processes and ways of working
  • 14. Agile Manifesto “We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals and interactions over processes and tools Working software* over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan That is, while there is value in the items on the right, we value the items on the left more.” * Project result??
  • 15. Agile Development Downloaded from Wikipedia 20111010 http://en.wikipedia.org/wiki/Scrum_(development)
  • 16. Environment Business Technology Project trends Digital Perspectives on the organization 1G 2G 3G 4G Products & offerings Multimedia Services People Processes Development processes Delivery processes Rev1 Rev2 Rev3 Rev4 Rev5 Project processes/support Structure M-structure Matrix Organization Centralization Globalization Functional Organization Outsourcing/ Mergers/Growth Downsizing Projects Customer Projects Infrastructure Projects R&D Projects Internal Change Projects Institution- Standardiza- Project The The First Single Project Common alization tion of PM Portfolio “Traditional” “New” Projects Management Standardized Terminology of Competence Management Projects Projects 1876 1876 1970 1975 1980 1985 1990 1995 2000 2005 2010 2010
  • 17. Example 4: Agile Product Development Project The development process is “built-in” and fully aligned with the organization’s way of working, a situation that requires less need for documentation. Fixed teams with cross-functional competence - strong coupling in the people perspective. The permanent organization has a structure that is well adapted to support the development work. Semi-tight coupling in the product perspective opens up for allowing new requirements while at the same time ensuring full understanding of impact of suggested changes. Tight coupling between the project benefits and the organization’s mission and value- adding responsibility.
  • 18. Institutionalization Supporting Agile WoW Examples of institutionalization initiatives in the company’s history: • Institutionalization of project roles for line managers • Establishment of project management offices (PMO) • Institutionalization of project governance (project sponsor role, fixed steering groups, project portfolio management) • Integration of project financial planning and reporting into the corporate financial system • Establishment of a permanent matrix organization (legal organization vs. operational - “product-based”) • Establishment of fixed development teams • Introduction of fixed released dates for new releases of products
  • 19. Consequences of the Agile Approach for the Company’s R&D Organization • Shorter “projects” with increasing need for integration and coordination and eventually to program management • Focus for project management has shifted from planning and progress control to coordination, integration, and value-driven quality control • Closer alignment between product portfolios and project portfolios • The project-line dilemma is almost gone – with empowered fixed teams for which product development is “business as usual”.