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IPPM - The Integrated Process and Project Management Organization


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The IPPM Organization is a integrated management model to synergisticly combine functional, process, and project management.

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IPPM - The Integrated Process and Project Management Organization

  1. 1. IPPM Organization® Integrated Process and Project Management Organization Stefan Hagen, © startup euregio Management GmbH
  2. 2. Major challenges of today‘s business environment „Only the fittest will survive.“ → strategic AND operational excellence is needed, high performance organizations intensity of competition is increasing – price pressure, innovation Globalization & pressure, quality pressure, time pressure... effectiveness AND efficiency Competition company‘s culture, strategy, processes, and structures have to be aligned to the radical change etc. complexity is rising – time for action is declining radical technological innovations, innovation pressure changes and trends are hardly predictable Complexity and cross-functional collaboration and communication is more and more discontinuity important high risk projects, increasing uncertainty etc. War for Talents, Human Resource Management as a major challenge inter-cultural management Rising importance long-term business relationships are based on trust and personal of „soft facts“ networks etc. © startup euregio Management GmbH, 2001-2008 2
  3. 3. That‘s how most organizations work today... © startup euregio Management GmbH, 2001-2008 3
  4. 4. ... and thats how they should work! © startup euregio Management GmbH, 2001-2008 4
  5. 5. We need fast, innovative and adaptive organizations! © startup euregio Management GmbH, 2001-2008 5
  6. 6. The Roots of Modern Organizational Theories Taylorism („Fordism“) © startup euregio Management GmbH, 2001-2008 6
  7. 7. And today? Taylorism still dominates! © startup euregio Management GmbH, 2001-2008 7
  8. 8. Conclusion © startup euregio Management GmbH, 2001-2008 8
  9. 9. The use of good theory... „Even for practical purposes theory generally turns out the most important thing in the end.” Oliver Wendell Holmes, Writer, 1809-1894 „Everything should be made as simple as possible, but not simpler.” Albert Einstein, Physicist, 1879-1955 „It is beyond a doubt that all our knowledge that begins with experience.” „Experience without theory is blind, but theory without experience is mere intellectual play.“ Immanuel Kant, German Philosopher, 1724-1804 © startup euregio Management GmbH, 2001-2008 9
  10. 10. The heart of IPPM © startup euregio Management GmbH, 2001-2008 10
  11. 11. Some Core Values of the IPPM Keep things simple To lead means in a complex world to serve! Vertical AND * also see Tom Peters (2003) Re-Imagine. Business Excellence in a Disruptive Age horizontal view Smaller, flexible and adaptive units Professional Service Firms (PSF)* Real customer orientation Self-organization, entrepreneurship WOW Projects* Improvise! ACT! Accept nothing but excellence and quality Stagnation means Regression → Question everything! © startup euregio Management GmbH, 2001-2008 11
  12. 12. Helicopter Perspective © startup euregio Management GmbH, 2001-2008 12
  13. 13. The IPPM Organization® FUNCTIONAL MANAGERS Business Process A Customer Requirements Customer SUCCESS MANAGERS PROCESS Business Process B Business Process C PROGRAM & Program XY MANAGERS PROJECT Project A Project B Project C Project D Support Support Support Support Process A Process B Process C Process D VALUE DRIVER LEVEL © startup euregio Management GmbH, 2001-2008 13
  14. 14. The Integrated Process and Project Management Organization® ... • • ... in an integrated management ... combines the vertical model to effectively and (departments, line management, effeciently design, lead, and functions) and horizontal continuesly renew organizations, (processes, projects) view of an organization, • ... is a new management • paradigm, ... allows to balance out customer, employee, and business • ... is based on a systemic and requirements continuously cybernetic understanding of • organization and management, ... is based on the following general principles: simplicity, • ... is a stable framework for efficiency & productivity, developing high performance effectiveness & performance, top organizations, quality, real customer orientation, • bias for action, speed, self- ... is a field-tested organizational organization & entrepreneurship, approch based on proven continuous individual & management concepts and organizational learning theories © startup euregio Management GmbH, 2001-2008 14
  15. 15. Organizational Units within IPPM ORG. UNIT ROLE & RESPONSIBILITIES General Management ensure competitiveness and long-term survivability normative and strategic management business development strategic change management strategic human resource management Functional Managers maximize business value, profits strategic development of the function (effectiveness) → human resource management, knowledge management operative leadership of the function (efficiency) → management by objectives resource management and alignment Process Managers maximize customer value (internal, external) strategic process design and development operational process leadership and coordination Program & Project maximize customer value (internal, external) Managers leadership of project teams ensure program / project sucess (on scope – on budget – on time) cross-functional knowledge management © startup euregio Management GmbH, 2001-2008 15
  16. 16. Value Driver Level • Professional Tension Management • Strategic and operational Management & Leadership • Human Resource Management • Knowledge Management • Change Management, Management of Change • Ensure Business Excellence © startup euregio Management GmbH, 2001-2008 16
  17. 17. Value Creation Level • Input: Customer Requirements • Transformation: efficient and effective creation of values • Output / Outcome: Customer Success! © startup euregio Management GmbH, 2001-2008 17
  18. 18. Support Processes • necessary for effective value creation • outsource (if possible)! → concentrate on own core competencies • Examples: – IT Support – operative Marketing, Advertisement – Facility Management – Call Center Management – Legal Issues – ... © startup euregio Management GmbH, 2001-2008 18
  19. 19. Professional Tension Management It‘s not EITHER ... OR It‘s BOTH ... AND © startup euregio Management GmbH, 2001-2008 19
  20. 20. Between the poles - Management of Tensions and Extremes Maximize Customer Value Maximize Business Value vs. Exceed customer expectations Profitability, cost savings Flexibility, Dynamics Stability, Repeatability vs. Projects, Team Work, Innovation Operations, Functions, Routine Processes Cross-Functional Managers, Line Managers, Functional Managers Generalists Specialists vs. Process Manager, Project Manager, Engineers, Production Experts, Technicians... Program Manager Simplicity Complexity, Variety vs. KISS: „Keep it simple, stupid.“ „Only variety can destroy variety.“ Horizontal View Vertical View vs. Processes, Projects, Programs Lines, Functions, Departments © startup euregio Management GmbH, 2001-2008 20
  21. 21. Professional Tension Management CONFLICTING GOALS, CONTRADICTION Overcoming through COOPERATION CONFLICT © startup euregio Management GmbH, 2001-2008 21
  22. 22. Professional Tension Management in the IPPM Organization® • Professional Tension Management requires a corporate culture which is dominated by openess, mutual trust, and the ability to deal with conflicts and disagreements. • Managers must demonstrate and also claim professional tention management from „top down“. • „Good“ decisions are rationally AND emotionally right. • There is no right or wrong – no black or white any more. It‘s about taking the right decisions for the moment, it‘s about taking chances and proactively fighting risks. What was right yesterday can be wrong tomorrow. • Constructive criticism is required and asked for. Destructive criticism is prohibited. • Areas of tensions and disagreements: Human vs. Human, Issue vs. Human, Human vs. Issue, within humans © startup euregio Management GmbH, 2001-2008 22
  23. 23. IPPM Success Formula + Excellent People & Culture Excellent Strategy, Processes, and Structure SUCCESS = © startup euregio Management GmbH, 2001-2008 23
  24. 24. Coordination and Collaboration in the IPPM Organization • Core competencies and specialist know-how are concentrated in vertical functions and departments. • Personal ressources are normally assigned to the functional managers. • Values are solely created in business processes, programs, and projects. • Process managers, program managers and project managers coordinate and manage the creation of values in cross-functional process or project teams. • Conflicting goals are solved through a professional tention management (vertical vs. horizontal goals). © startup euregio Management GmbH, 2001-2008 24
  25. 25. The Goal: High Performance Organization High Performance Organization = Intensity: Leadership / Culture BUSINESS EXCELLENCE Integriertes Qualitätsmanagement: Seghezzi u.a. (2007) Integration of Sub-Systems © startup euregio Management GmbH, 2001-2008 25
  26. 26. Just do it! Start today! „I've learned that mistakes can often be as good a teacher as success.” Jack Welch, CEO of General Electric from 1981-2001 © startup euregio Management GmbH, 2001-2008 26
  27. 27. Academic Foundation of the IPPM Organization® Organizational Learning / Change Management NM OT / OB IMS Normative, Organizational Value-Based BPM Integrated Theory (OT), Management Management Organizational Systems Behaviour (OB) Business Process Management SGMK SM Info-M St. Galler Strategic PM Information Management Management Management Konzept QM IM Project Management, WFM Program Management, OM Project Portfolio Quality Innovation Workflow- Management Management Management Management, Operative Logistics Management Systems Approach, Management Cybernetics, VSM © startup euregio Management GmbH, 2001-2008 27
  28. 28. Sources BLEICHER, Knut (1994): Normatives Management. Politik, Verfassung und Philosophie des Unternehmens. St. Galler Management-Konzept Band 5. Campus Verlag. Frankfurt/New York. HAAS EDERSHEIM, Elizabeth (2007): Peter F. Drucker - Alles über Management. Redline Wirtschaftsverlag. Heidelberg. HEIMBOLD, Roman (2005): Alles im grünen Bereich. Projektmanagement für jedermann (1. Aufl.). mitp-Verlag. Bonn. MALIK, Fredmund (2005): Führen, Leisten, Leben. Wirksames Management für eine neue Zeit. Heyne-Verlag. München. MALIK, Fredmund (2003): Systemisches Management, Evolution, Selbstorganisation. Grundprobleme, Funktionsmechanismen und Lösungsansätze für komplexe Systeme (4. Aufl.). Haupt Verlag. Bern/Stuttgart/Wien. MINTZBERG, Henry (1989): Mintzberg on Management: In our strange world of organizations. Free Press. New York. PETERS, Tom (2007): Re-imagine. Spitzenleistungen in chaotischen Zeiten. Gabal Management Verlag. Offenbach. PETERS, Tom/WATERMAN (1988), In Search of Excellence: Lessons from Americas Best Run Companies: Lessons from America's Best-Run Companies. Time Warner International. SCHWANINGER, Markus (1994): Managementsysteme. St. Galler Management-Konzept Band 4. Campus Verlag. Frankfurt/New York. SEGHEZZI, Hans Dieter (2007): Integriertes Qualitätsmanagement. Der St. Galler Ansatz (3. Aufl.). Carl Hanser Verlag. München. WUNDERER, Rolf (1997): Führung und Zusammenarbeit. Beiträge zu einer unternehmerischen Führungslehre (2. Aufl.). Schäfer-Pöschel Verlag. Stuttgart. © startup euregio Management GmbH, 2001-2008 28
  29. 29. Contact startup euregio Management GmbH Stefan Hagen Rheinstrasse 26-27 6890 Lustenau AUSTRIA Phone: +43 (0)5577 87118 Web: e-Mail: Free Project Management Know-How (in German): © startup euregio Management GmbH, 2001-2008 29