All Change? Innovations and Constraints to Innovation in Project Management Dr Harvey Maylor Director: International Centre for Programme Management Cranfield University, UK Agenda • Introduction • Flexible projects, insecurities, change and innovation • From Critical Chain to Advanced Project Thinking • Innovation – cases • Innovation – constraints • So what and what now? Why Programme Management? Flexible projects, insecurities, change and innovation Deming: “90% of the causes of error are the fault of the system” • The response to project disaster is… • The professional institutes are promoting… Beyond Deming: “90% of the causes of project problems are behavioural” • More process isn’t the answer • Implications for profession need working through From Critical Chain to Advanced Project Thinking Or 10 R 15 • Nature of constraints in projects – Logic – Resources – Policies and behaviours • Planning assumptions – Normal distribution – Handovers fixed – Safety • Planning and behaviours – Student syndrome – Multi-tasking – Sustained false optimism • Whatever happened to criticality? Bl 15 Pr 10 Or 30 Gr 10 Bl 30 Y 10 Y 20 In the beginning… • Chaotic processes – consistent with the rest of the industry • 65 step build schedule – nobody understood • One major constraint was information flow • Totally unpredictable flows • 2004 – missed major financial targets – instead of completing 160 units, only completed 113. • Depressing environment to work in – “so much to do, so little time.” • High staff and contractor turnover • Brand widely perceived as a leader Advanced Project Thinking • Phase 1 – Produce logically sound buffered programme • Phase 2 – Implement the weekly updating process • Phase 3 – Implement the weekly delay & disruption process Method • Begin with the end in mind • Ask stupid questions – what do we do and why do we do it that way? • Constantly challenge assumptions • Engender optimism & engage the people • Effectiveness THEN efficiency • Discipline accompanies more rigorous thinking • Required ‘meeting of minds’ • Pilot – try it out – evaluate – amend • Make visual – charts and histograms worked through with all staff and contractors • Managers coached on-site – not left to it • Tasks – combine – simplify - eliminate Lessons Learned • Time reductions were possible • First benefit was detail plans – major investment of time required to do this the first time • Sequenced everything, reworked until met business need • Involve whole team (inc sales) • Need to get wide stakeholder buy in – ran contractor seminars • But initial application too aggressive – not everyone bought in. First time required reprofiling and reinstating buffer – not happened since • Not continuous flow, but pragmatic flow Buffer Chart Single Project Hook 100 80 60 40 20 0 0 20 40 60 80 100 Buffer Chart Programme Level Linden Western Buffer chart as @ 18/05/07 100% 90% 80% Chipp Ph 1 Buffer usag 70% 60% 50% Moor FarmPh1&2 40% Chipp Ph 2 30% Chipp B1&C1 20% Enterprise 10% Chipp Ph 2B 0% 0% 10% 20% 30% 40% 50% Project progress 60% 70% 80% 90% 100% And now… • • • • • • • • Chaotic processes – consistent with the rest of the industry – stage 1 performance 65 step build schedule – nobody understood One major constraint was information flow Totally unpredictable flows 2004 – missed major financial targets – instead of completing 160 units, only completed 113. Depressing environment to work in – “so much to do, so little time.” High staff and contractor turnover Brand widely perceived as a leader • • • • • • • • • • Basic processes and disciplines installed – stage 2 performance Detailed build programme Information flow and latest responsible moments understood Predictable and high flow of work and completions 2005 build team singled out for ‘amazing transformation’ by company chairman 2006 – hit all targets, major awards 2007 company sold – massive increase in value Environment buzzing Stable staffing and contractor base Brand actually leading practice Innovation: Constraints • Linden today? • Balfour Beatty – 1995 – 4 major roadbuilding projects • Tilbury Douglas – 2002 – Southwest Water waste treatment works • …and so on Why? 1. Learning literature: process as defensive routine “An organizational defensive routine is any policy or action that inhibits individuals, groups, inter-groups or organisations from experiencing embarrassment or threat and at the same time prevents the actors from identifying the causes of embarrassment or threat.” (Argyris, 1993, p.15). 2. In the project environment, people seek stability, not from the organisation (inherently unstable, temporary and shifting as project progresses), the product (outcome being uncertain), but in the process – the way they work. Tolerance of uncertainty limits behaviour. “Stability is all-important, even at the expense of innovation and change” (Levy, 2005) 3. When you change underlying behaviour you might be able to break defensive routines and create sustainable change. “Simply changing the process won’t generate the changes you want in performance.” (Maylor, Brady and Thomas, 2008) So what and what now? • The double hurdle of managing projects: absorb uncertainty but still deliver to TCQ • Process isn’t the answer • Behaviours intervene – requires we move to Behavioural Planning • Advanced Project Thinking approach worked – but only so far • Incentives for individuals and greater corporate willingness to question approaches are key to removal of defensive routines icpm@cranfield.ac.uk www.cranfield.ac.uk/som/icpm