Cranfield School of Management Interview: Tony Grundy Strategic Project Management SM Hello, I am Steve Macaulay from the Learning Services Team at Cranfield School of Management. I am here today to talk to Tony Grundy about Strategic Project Management. Tony, the first thing to say is that you are not just a teacher of this stuff, you actually put it into practice through consultancy. TG That is correct, in fact a lot of the processes have been developed not so much in academia, but very much with working with managers and learning from them and playing and experimenting with them some new tools and techniques that now form the process. SM Well, let’s have a look at the book – what led you to write it in the first place? TG Well, there were a number of reasons. One was that project management, I really feel is an excellent tool, provided it is not overwhelmed with technical stuff and not everything has to be on a complicated critical path. This is a very good philosophy and it is also vitally important when we look at the implementation of strategy. But in its own right it can actually be used to sort of breakdown a strategic plan into more manageable bits and if all sort of mini or micro strategies that then form a real basis for concrete action. So I do feel that it is an essential part of the strategy process and can be deployed in its own right on smaller scale issues, without having to do it as a big piece exercise. SM So what makes strategic project management different from bog standard project management? TG Well, conventional project management is very much about activity analysis and timings and resources and control and planning and it does seem to be much less to do with the earlier stages of diagnosing why we need to have a project in the first place, looking at the options, its scope – thinking about the sort of cunning or clever plan to go about delivering those options which can be done in many, many different ways. It is also about dealing with Knowledge Interchange Podcasts Page 1 Cranfield School of Management Tony Grundy uncertainty, both within the immediate project and also in its environment. So that is all very much tied up with strategy. The other thing that I have found is that strategy tools like the option grid, the uncertainty grid, the stakeholder analysis seem to work really well on projects and complement the existing things like activity analysis, Gantt charts and critical path and all that stuff. So by combining the two you have got a more integrated process and one which has got tools which deal with the issues. The other thing I will say quickly is that most business projects are quite ambiguous and changing – they don’t necessarily behave in such a way as conventional projects like building a house, and therefore you almost need some different tools for the job. SM So what do you need for a successful strategic project? TG Well you need a number of things, you need to diagnose why you are trying to do it in the first place, because often you find that it is almost a solution looking for a problem that someone comes up with an idea and gets committed to it without thorough diagnosis. We then need to look at what are the options for not only what to do, when to do it and also how – it may be something that you outsource to people outside the organisation or you could do it quickly, much slower, you could roll it out or pilot it first. There are all kinds of different options. So they need thorough creation and then evaluation. And then at the planning stage that is when you suddenly hit the kind of more traditional project management techniques like activity analysis, work breakdown analysis – but even those can be then identified in terms of their potential uncertainty using the strategy tools, also the stakeholders' tools available for that and then there is the actual implementation which, even then the environment might change, the objectives may need reviewing, so it is a highly iterative process. And finally looking at the learnings, there is a stage there which is often kind of a bit thin in normal project management – people run off to the next project without digesting what went well in terms of process before we go onto the next one. SM So, if you looked at a profile of what you would see as a good strategic project manager, how would they differ from what I am kind of rather pejoratively describing as a bog standard project manager? TG Yes, well you asked me about strategic thinking earlier in a separate mini interview – does the strategist have to be a superman? And I said no. I think in many ways the strategic project manager needs to be more of a superman because they Knowledge Interchange Podcasts Page 2 Cranfield School of Management Tony Grundy need to combine the basic project management skills, they have got to have strategic vision, they have got to be able to influence really well and story tell and be imaginative about changes in their project environment and got to have pretty good interpersonal skills. So there is a lot to actually combine in one person. The ability to think bigger picture, but at the same time paradoxically the ability to suddenly say, right what are we actually going to deliver? Let’s make this specific and almost to be like, I call it the strategy police and make sure those results were actually forthcoming. So there is a lot of tenacity and that leads us very much into some operational skills too. SM So, if we get down to practicalities, you have obviously worked on this quite a lot – can you give me any examples where you have seen some good strategic project management in practice? TG Well, I think the classic was when I was doing some work with a telecoms company, somewhere in Watford, I know we both live near Watford, and it was about 100 million turnover and the strategy director said I would like to a plan for the plan, so we did that and that was the first time that I realised that you could actually – it was very valuable to literally manage a strategic plan as a project. And so we did a very thorough project plan of each stage and we had the resources, the outputs, the inputs, the interdependencies, the whole thing – the stakeholders was very thoroughly mapped out with inputs and outputs as I said. So that went really, really well. Now the sort of twist on this was that when we came to the crucial stage which was the decision making by the board, I questioned at the time we will never do this in two days, you will need three or four and they said no we have only got two. It turned out to be five and a half days, so beware under scoping this stage. If you think it is going to half as long, its probably going to be twice as long, or worse. So, it’s the political stages that need a bit of float as they say in project management and it is interesting too that the whole output of the project changed because the economy changed, the market changed and they had to go through downsizing, but the work of that project was vital in preparing for the second project which led on, which was what I call the detergent strategy of sorting the mess out. SM Now, you just quoted a success, are there any that you look at and you can say, hey that didn’t work well at all and what were the reasons behind that? TG Well, I think it was a bit of a mixture. You usually do find it a mixture and there is a continual learning process. I am trying to Knowledge Interchange Podcasts Page 3 Cranfield School of Management Tony Grundy think of ones that didn’t work out. I think probably one was, I think, at a certain university. I think there was a group called strategy and they wanted to look at delivering a strategy, but again I think the problem there was it wasn’t the fact that we had a decent process, it was simply that there might have been some agendas that were nervous about doing this and really what actually caused the block. In my process I bring in a classic change management tool called force field analysis and there was clearly some hidden constraining forces there and possibly the timing wasn’t so right. So you have really got to examine the political environment, the hidden stuff, before you ever embark on a strategic project. SM Now I am going to read a number of quotes – I mean there are plenty in your book, very quotable quotes. One of them said if you think its easy, its probably difficult, if you think it is difficult, its probably very difficult, and if you think it is very difficult, its probably mission impossible. Now what do you mean by that? TG Well, in the book there is a technique called a traction difficulty analysis which was used to reduce costs at a pharmacutical company by about £7 million. It just was spontaneously created to do the job, anyway in that grid the axis on the bottom is difficulty – there was easy, difficult, very difficult – what I found is that managers underestimated by one order of magnitude sometimes, or often, the degree of difficulty. So if they think it is very difficult it probably is mission impossible – there seems to be almost a will to power syndrome in projects. So you are using these kind of grids and going down another level you can identify in a more thorough way just how difficult it is going to be and you can’t hide from it, that is the nice thing, you see it on paper, you can communicate it, you are not going to do it unless you have got a more cunning plan. SM Now, I would like read another quote – a project team relying primarily on activity analysis and computer software, critical path and resource planning will get bogged down by internal politics, often inadequate resources and inadequate project training and project development. TG Well, I think that is a reflection of people spreading themselves far too thinly. Do you know there is a favourite Blackadder film, the Millennium Tape, where they go back in time and there is this three foot high wall to keep the Scots out and they clearly get completely overrun – it's very, very funny, but I think a lot of project management is just like that, too many projects, no real prioritisation, no saying no to anything and the result of that is the resources quality and quantity wise are always spread too thinly. Knowledge Interchange Podcasts Page 4 Cranfield School of Management Tony Grundy SM Now the last one I am going to read says experience shows that top management may get defensive about openly exploring sensitive business problems – middle managers may assume it's top management’s job to deal with change when this is impossible and managers easily revert to blame rather than being open. TG Yes, I think this is even more prevalent where allegedly it is a sort of clever environment, the more intellectual people are the more they will deny that there is a problem and these organisational learning difficulties seem to be endemic and no one is prepared to do anything about them, or can do because its just emperor's clothes. No one can say, well actually the reason why we are screwing up this whole strategy is not because of a lack of thinking, but we just can’t express what our views are and we can’t be open with each other. So this is the biggest problem in many ways. SM Now, I would like to just reflect – we have spent quite a long time looking if you like at your experience and the history, I would like to project forward now and say if you were given the chance to write another edition of your book, what future trends that are in there would you say I would want to write a bit more about that or that is really important – I think I need to stress that a bit more? TG Well, funny you should say that, you interviewed me about another book and I did mention a few things there. Now in this case, I just couldn’t think what I would really fundamentally want to change and I think what has happened is that it was written a bit ahead of its time. At the time there was nothing about the strategic management of projects as such, and whilst there are more texts around which sort of cover that area, there isn’t really anything that has happened since then which I would go like, ah, that is missing. It does seem to work as a pretty effective process. SM Tony Grundy, thank you very much. TG Thank you. Transcript prepared by Learning Services for the Knowledge Interchange www.cranfield.ac.uk/som Knowledge Interchange Podcasts Page 5 Cranfield School of Management Produced by the Learning Services Team Cranfield School of Management © Cranfield University 2007