Organizing Global Project Teams and PMOs

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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
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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
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Business Management Consultants
A Management System
With Different Values
Societal Values
Corporate
Values
Personal
Values
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Business Management Consultants
Dimensions of Cultural Difference
Individualism
Universal
Specific
Synchronic
Achievement
Past
Emotional
External
Control
Internal
Control
Future
Neutral
Sequential
Ascription
Fons Trompenaars,
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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.”
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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.”
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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
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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
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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
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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.
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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.
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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
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Japan
0
Russia
20
Fons Trompenaars,
Riding the Waves of Culture
Business Management Consultants
Dimension of Cultural Difference
Relationships
&
Rules
Environment
Time
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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
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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.
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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
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Business Management Consultants
A Complete Project-based
Management
System
Organizational
Support
Teams as Building
Blocks (People)
Principles & Methods
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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
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Business Management Consultants
Organizational
Support
Teams as Building
Blocks
Principles & Methods
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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
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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
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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
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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
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The Project Office
Business Management Consultants
Matrix Organisation and PMO
PMO
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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
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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
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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
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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,
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Business Management Consultants
Thank you
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Questions?
Business Management Consultants
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