1
2
What brings me to this issue?
 Several interviews with senior v.p.’s directors, and
clients
 Teaching over 9,000 students project management
 Current market miscomprehension of the difference in
project management and project coordination
 A perceive lack of authority given project managers
based on senior management ignorance of the role
3
Outline
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Strategic Management Process
Strategy to Project
Project Management Process
Project to Process
Implications
4
“ Only 30 percent
of projects come
in on time
schedule, and/or
budget!”
PMI Research Conference 2009
Strategic Management Process
What are the implications to our firms?
5
Strategic Management Process
Based on Strategic Direction
Know the Vision and Mission of your enterprise or
business unit.
Will this project aid the theory of your business?
Are the objectives clear and do you have clarity
of purpose?
Are you organized based on your purpose?
What are the dominate strategy formations?
6
Strategic Management Process
Enterprise’s
Competency
Sphere of
OWENS’ STRATEGIC MODEL FOR RE-ENGINEERING
TURNING VISION INTO ACTION
M
External
Customer
I
Views of
Future
Leadership
Values
INFORMATION STRATEGY PLAN
BENCHMARKING
S
S
Enterprise’s
Culture
GOALS
I
Influence
Market
Assessment
INFORMATION RE-ENGINEERING
GRAND
STRATEGIES
BUSINESS AREAS ANALYSIS
BUSINESS SYSTEMS ANALYSIS
OBJECTIVES
BUSINESS SYSTEMS INTEGRATION
O
N
V
I
S
I
OPERATIONS RE-ENGINEERING
FUNCTIONAL STRATEGIES
STRATEGIC
RE-ENGINNERING
Tactical Plan
Operational Plans
Tactical Plan
Tactical Plan
Operational Plans Operational Plans
Projects
Processes
Processes
Projects
Chaos
Process
ACTION PLAN
Program B
Strategic Plan
Program
A
06/05/06
7
Operational Plans
Project Team
Processes
Projects
Program C
OPERATIONAL PLAN
PERFORMANCE PLAN
RESULTS
O
DESIRED BEHAVIORS
N
REAL ORGANIZATIONAL VALUES
QUALITATIVE -CONCEPTUAL
QUANTITATIVE – TASK ORIENTATED
P
l
a
n
n
i
n
g
O
n
P
u
r
p
o
s
e
Strategic Management Process
Portfolio, Program , and Project Narrative
8
Strategy to Project
9
FIGURE 2.1
Strategy to Project
Theory of the Project
Projects have the greatest chance of success
when they emanate out of:
Strategic Plans
Best Practices
Been Given Thoughtful Reflection
10
Strategy to Project
11
Program B
Strategic Plan
Program A
Tactical Plan
Operational Plans
Operational Plans
Tactical Plan
Tactical Plan
Operational Plans
Operational Plans
Project Team
Projects
Processes
Processes
Projects
Processes
Chaos
Process
Projects
Program C
Strategy to Project
Define the Problem
12
Where you want to be:
•Key deliverables
•Stakeholder analysis
Project Definition
Gap
Statement
Project Hypothesis
•Communications Plan
•Strategic Impact
•Competitive Posture
Why?
Congruence Model
Informal
Organization
Desired
Outcomes
Inputs
History
Strategic
Choice
Formal
Organization
Work
Resource
Outputs
Process
Capabilities
People
Transformation - WBS
Outputs
Systems
Environment
Strategy to Project
13
Needs and Wants
Why am
I here!
Why am
I here!
Why am
I here!
Why am
I here!
Strategy to Project
14
Strategy to Project
Project Management Definition
Project management is the leadership art and operations
science of organizing the components of a project,
whether the project is development of a new process,
product, service, policy, strategy, or experience. A
project is a one time, multitask effort with a clearly
defined start and end date. A project is not something
that is part of normal business operations.
Projects are owned by a sponsor and managed
by a professional practicing project management
(P3M). It's typically created once, it's temporary,
and it's specific. A project consumes different
capital resources (human, financial, materials,
equipment, and time) based on assumptions
and constraints.
15
Project Management Process
16
PMI Project Phases PMBOK 4th ed.
P3M Effort
Process Group
Initiating
Develop Project Charter
Identify Goals and Objectives
Develop Strategies and Plans
Research Previous Experience
Develop Project Charter
Stakeholder Analysis
Feasibility Analysis
Requirements Analysis
Develop Preliminary Project
Scope Statement
Process Group
Executing
Acquire Project Team
Obtain Resources
Conduct Team Orientation
Assign Responsibilities
Direct and Manage Project
Execution
Manage Team Performance
Assure Quality
Manage Project Communication
Contracting with Subcontractors
Process Group
Planning
Set Up Project Environment
Define Scope
Develop Project Schedule
Develop Risk Plans
Plan for Quality
Organize Project Resources
Develop Procurement Plans
Develop Financial Plan
Develop Project Support Plans
Develop Project Management Plan
Process Group
Monitoring and Controlling
Monitor and Control Project Work
Integrated Change Control
Scope Verification
Schedule Control
Manage Finances
Perform Quality Control
Manage Project Team
Produce Performance Reports
Manage Stakeholders
Risk Monitoring and Control
Contract Administration
Process Group
Closing
Close Project
Assess Satisfaction
Summarize Project Results and
Lessons Learned
Review and Recognize Team
Performance
Close Out the Project Records
Review and Reconcile Financial
Performance
Contract Closure
Close Contract
Project Management Process
17
Key Project Elements for Success
Scope
Risk
Resources
.
Quality
Cost
Schedule
Requirements
Project Management Process
18
Change Management
Business Framework
Who?
What?
Where?
When?
How?
Why?
How Much?
How Risky?
What Value?
PM manages the orchestration of change across layers of a business framework
19
Project to Process
Leadership/Ownershi
p
Program Mgmt
Project Mgmt
Project to Process
Four Functions of Organizational Culture
20
21
Project to Process
Change Management
The different “constituencies” go through various stages of reaction to change,
at different times.
Letting go > real curiosity > experimentation > insight (AHA!) > change
New Processes
New Competence
Practices
Certainty
Denial
AHA!
Shock
Experimentation
Anger
Curiosity
Fear
Acceptance
Confusion
Endings
Surrender
Neutral Zone
New Beginnings
22
Project to Process
Product/Process Cash flow
Profit
New Development
Delivered Process
Tb
To
Tf
Tp
Tr
Tv
Tpb
Project Effort
To= opportunity cost
Tr= released
Tp= perceived
Tv= volume ramp up
Tb= begin
Tpb= payback positive
Tf= frozen spec.
Te= end of life
Te
Project to Process
PM Network Diagramming Tool Set
23
Project to Process
Earned-Value Analysis
24
SPI = BCWP (EV)/BCWS (PV)
Scheduling Efficiency
Shows how much work has been accomplished for
each dollar worth of schedule to date.
CPI = BCWP (EV)/ACWP (AC)
Cost Efficiency
Shows how much work has been completed for each
dollar actually spent. This is the more common ratio
used
Project to Process
Investment Returns
• The difficulty with cost benefit analysis is that some of the
costs and most of the benefits will occur in the future,
while the development costs must be paid in the present.
• We try to determine what each of the
future costs and benefits are worth
now (their present values) so that
valid comparisons can be made.
• Therefore a clear sense of the project ROI,
ROA, and ROE is essential for understanding the firms
strategic viability.
25
Project to Process
26
Learn from the Effort
Lessoned Learned
A summary of mistakes avoided
and risk managed.
Actions are defined to ensure success.
Reflection of difficulties encountered and insights
turned into gains.
Implications
Some PM Perceptions
27
• PM or P3M (Professional Practicing Project or Program Management)
Is there a distinction?
• PM or Task Jockeying
The team leadership narrative
• Method maturity match to culture
What is the right amount of rigor?
• Role between sponsor and P3M
Fidelity: the quid pro quo – referent power
Law of Reciprocity
Implications
Power & Influence
Power of Access and Agendas
Having a seat or impact at the strategic
decision making table.
-Boman & Deal
28
Implications
Assigning the Project Manager
Improper P3M assignment will frustrate the
project team and enable scope creep. Can the
P3M stand up to the forces embedded in the plan!
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30
Implications
A Systems Model of Change
Figure 16-1
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Implications
Project System View
Congruence Model
Informal
Organization
Inputs
Desired
Outcomes
Environment
Systems
History
Strategic
Choice
Formal
Organization
Work
Resource
Outputs
Process
Capabilities
(Nadler, 1999)
People
32
Implications
Mission
Vision
Objectives
Programs and Projects
Strategy to Project
33
PM Bibliography
Bolman, Lee G. and Deal, Terrence E. Reframing Organizations, San
Francisco: Jossey-Bass, 1997
Gray, Clifford F. and Larson, Erik W. Project Management-The Managerial
Process Boston : McGraw-Hill, 2003
Kerzner, Harold. Project Management 8th ed. Ohio: Wiley & Sons, 2003
Lewis, James P. The Project Managers Desk Reference. Boston: McGraw-Hill,
2000
Nadler, D.A. & Tushman, M.L. (1980) A model for diagnosing organizational
behavior. Organizational Dynamics, 9 (2), 35-51
PMBOK Guide. A guide to the Project Management Body of Knowledge. 3rd
ed. Newton Square: Project Management Institute, 2004
Senge, Peter M. The Fifth Discipline: The Art & Practice of the Learning
Organization. New York: Currency, 2006
Schwartz, Peter, Art of the Long View. New York: Currency Doubleday, 1991