Organising Global Project Teams and PMOs with Dr. Tom Johns Ph.D., PE, PMP, MAPM 1st International Athens Conference on Project Management Best Practices Athens, July 1st, 2006 QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants The Project-based Company Trend toward Project-based way of working The Company Bus Dev Sales Ops Customer MIS PM Project A PM Project B Projects QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants A Management System With Different Values Societal Values Corporate Values Personal Values QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants Dimensions of Cultural Difference Individualism Universal Specific Synchronic Achievement Past Emotional External Control Internal Control Future Neutral Sequential Ascription Fons Trompenaars, QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Diffuse Particular Riding the Waves o Collectivism f Culture Business Management Consultants INDIVIDUALISM versus COLLECTIVISM (Individual versus the Group) The Quality of Life: Two people were discussing ways in which individuals could improve life. 3a. One said: “It is obvious that if individuals have as much freedom as possible and the maximum opportunity to develop themselves, the quality of their life will improve as a result.” 3b. The other said: “If individuals are continuously taking care of their fellow human beings the quality of life will improve for everyone, even if it obstructs individual freedom and individual development.” QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Fons Trompenaars, Riding the Waves of Culture Business Management Consultants INDIVIDUALISM versus COLLECTIVISM (Individual versus the Group) The Quality of Life: Two people were discussing ways in which individuals could improve life. 3a. One said: “It is obvious that if individuals have as much freedom as possible and the maximum opportunity to develop themselves, the quality of their life will improve as a result.” 3b. The other said: “If individuals are continuously taking care of their fellow human beings the quality of life will improve for everyone, even if it obstructs individual freedom and individual development.” QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Which of the two ways of reasoning do you think is usually best, 3a or 3b? Fons Trompenaars, Riding the Waves of Culture Business Management Consultants INDIVIDUALISM versus COLLECTIVISM (Individual versus the Group) The Quality of Life: Percentage of respondents opting for individual freedom (answer 3a) 100 80 60 40 Canada USA UK Russia Germany Japan Italy 0 France 20 QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Fons Trompenaars, Riding the Waves of Culture Business Management Consultants Dimensions of Cultural Difference (Rules versus Relationship) Individualism Universal Specific Synchronic Achievement Past Emotional External Control Internal Control Future Neutral Sequential Ascription QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Diffuse Collectivism Particular Business Management Consultants UNIVERSALISM versus PARTICULARISM (Rules versus Relationship) The Car and the Pedestrian: You are riding in a car driven by a close friend. He hits a pedestrian. You know he was going at least 40 miles per hour in an area of the city where the maximum allowed speed is 20 miles per hour. There are no witnesses. says that if you testify under oath that he was only driving 20 miles per hour it may save him serious consequences. His lawyer QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Fons Trompenaars, Riding the Waves of Culture Business Management Consultants UNIVERSALISM versus PARTICULARISM (Rules versus Relationship) The Car and the Pedestrian: What right has your friend to expect you to protect him? a. My friend has a definite right as a friend to expect me to testify to the lower figure. b. He has some right as a friend to expect me to testify to the lower figure. c. He has no right as a friend to expect me to testify to the lower figure. What do you think you would do in view of the obligations of a sworn witness and obligation to your friend? d. Testify that he was going 20 miles per hour. e. Not testify that he was going 20 miles per hour. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants UNIVERSALISM versus PARTICULARISM (Rules versus Relationship) The Car and the Pedestrian: What right has your friend to expect you to protect him? a. My friend has a definite right as a friend to expect me to testify to the lower figure. b. He has some right as a friend to expect me to testify to the lower figure. c. He has no right as a friend to expect me to testify to the lower figure. What do you think you would do in view of the obligations of a sworn witness and obligation to your friend? d. Testify that he was going 20 miles per hour. e. Not testify that he was going 20 miles per hour. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. How many of you answered “c” or “b and e”? Business Management Consultants UNIVERSALISM versus PARTICULARISM (Rules versus Relationship) The Car and the Pedestrian: Percentage of respondents opting for a universalist system rather than a particular social group answers c or b+e 100 80 60 40 Canada USA UK France Germany QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Japan 0 Russia 20 Fons Trompenaars, Riding the Waves of Culture Business Management Consultants Dimension of Cultural Difference Relationships & Rules Environment Time QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants Institutional Implications of Pervasion of Value Relativism Power may be substituted for ideology Expediency may replace ideological criteria Decentralization of decision making may be made difficult Policy becomes impossible - continuity & consistency are non-existent - decision makers become immobilized Ronald S. Paul Battelle Values QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants For a Project-based Company To be “In control” 1. Develop Project Management skills in everyone, 2. Work through Cross Functional Project Teams, 3. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Conceive middle management as facilitators and coaches, 4. Participated management, eliminate fear, Maintain few organizational layers, 5. Maintain a client minded organization, 6. Operational procedures support teams. Business Management Consultants Passion without a system is as bad as a system without Passion QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants A Complete Project-based Management System Organizational Support Teams as Building Blocks (People) Principles & Methods QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants Measuring Maturity (Level and Variance) For Global Quality System Spread of Scores Target Spread of Scores - 1.5 Levels Project Management Score Spread - Principles Sub System Project Management Maturity Level - Principles Sub System Objectives Company Score Reporting Infrastructure Reporting Process & Behaviors 2.9 Project Organization Scheduling & Resourcing Control Techniques 2.8 Baseline (Budget) 1.2 3.0 3.0 Scheduling & Resourcing Control Infrastructure Interfaces Baseline (Budget) Control Process & Behaviors Interfaces 3.8 3.1 Risk Control WBS Reporting Process & Behaviors 2.1 Control Infrastructure 3.6 Reporting Infrastructure Project Organization 3.0 Control Techniques Control Process & Behaviors Objectives WBS 3.4 3.0 3.0 3.1 2.7 3.0 Risk Response Risk Assessment Risk Control Project Plan 3.6 Maturity Level Bus Mktg Dev Risk Response Risk Assessment The Company Closure & Post Activity Risk Planning Sales Sales Ops Ops Project Plan Closure & Post Activity Risk Planning Maturity Variance Customer MIS MIS PM Project A PM Project B Projects QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants Organizational Support Teams as Building Blocks Principles & Methods QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants Project Management Offices PMOs Three Levels of a PMO Level 3 Strategic PMO CEO IT Development Systems Project Operations Support PMO Finiance IT PMO Enterprise PMO Level 2 Business Unit PMO Level 1 Project PMO QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants Typical Roles of Project Offices PMO A. The Weather Station (Traces and reports events without effecting them) Progress against schedule milestones and deliverables, Budget performance, Quality performance against requirements, Risk. B. The Control Tower (Nurtures project management as a business process within the company) Establishes, enforces, improves and maintains and consults on management standards, e.g. life cycle management, planning and control, risk management, portfolio management support. C. The Resource Pool (Provides a pool of skilled, supervised project managers to be assigned to projects) Develops, coaches, supervises and maintains a pool of project managers; assigns QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. project managers to projects; accepts overall quality, schedule and budget performance responsibility for projects Business Management Consultants National Patterns of Corporate Culture Decentral ¥ USA INCUBATOR GUIDED MISSILE ¥ Canada Informal ¥ UK ¥ Sweden ¥ France ¥ Belgium ¥ Denmark ¥ Nether- Formal lands Ega litaria n India ¥ FAMILY Fulfilment-oriented culture EIFFEL TOWER ¥ Spain Project-oriented culture ¥ Germany ¥ Japan INCUBATOR Central GUIDED MISSILE Person Tas k EIFFEL TOWER FAMILY Pow er-oriented culture Role-oriented culture Hierarchical QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants Matrix Organisational with Project Office General Manager Mgr Engr'ng Mgr. Proj. Mgmnt Proj Engrng Project Mgr #2 P.E. #1 Mgr Mfg Mgr Mkt'ng Mech Engrng The Project Team QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. The Project Office Business Management Consultants Matrix Organisation and PMO PMO QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants Organizational Support Group & PMO Bayer AG Company Business Committee Business Management Committee Project Committee Research & Development Project Management Marketing Reg. Sections Process Development Sections Bio. Tox. Form. Project Manager QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. PMO Projects Business Management Consultants The Project-based Organization Beyond Matrix beyond Decentralization PM Service Packages Project A The Company Bus Dev Sales Ops CRO MIS Core Competences PM PM Project B Project A PM PM Project C Projects Project B QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Federal Information Center Projects Business Management Consultants SAP’s Global PMOs support governance & interdependence EMEA Line Mgmt. APA Line Mgmt. PMO EMEA PMO Japan JP Line Mgmt. PMO APA SAP Global PMO NA Line Mgmt. PMO LA QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. LA Line Mgmt. PMO NA Business Management Consultants Keys to Successful PMOs A A Focus on organization’s maturity, A A Start small, A Change the organizational structure and the “way of thinking and working” to that of project-based, Invite cross-section of functional managers to report on work streams in their respective areas without tools driven by PMO, Develop what you have now before buying new tools and systems, A A Communicate clear roles and responsibilities Facilitation process of prioritization, QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Business Management Consultants Thank you QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Questions? Business Management Consultants