Multi-Project Management; Toyota's Successful Organizational Structure

Ten years ago, Toyota restructured their organization around better integration and management of multiple projects. In 1998, Michael Cusumano and Kentaro Nobeoka wrote Thinking Beyond Lean, which explored this successful approach in detail.

The essence of the restructure was to create multiple centers that each managed a program of related projects. Each center was self-sustaining with its own functional staff, planning group, etc. Also, at the head of each center was a "heavy" senior project manager with a combination of business and technical experience (and, as we know, these people are few and far between).

Each individual project in the center could be led by a project coordinator (since there are not that many heavy project managers to go around). In other words, the heavy project managers were reserved for managing the centers/programs, and were responsible for assuring alignment between project and functional managers in that center.

Finally, anything that wasn't related to the work in those particular centers was moved to a separate center so as not to dilute the efforts of the primary centers.

This approach has since proven to lead to better overall throughput and quality, better alignment and crosstalk within each center, and better leverage of components within each center.

Below is a PDF report outlining the details of the reorganization...

http://imvp.mit.edu/papers/95/Nobeoka/nobe-3.pdf

Critical Chain Project Management CCPM: Software Optimizes Aircraft Maintenance Project ...

Lisa Mathews provides update on the use of critical chain project management, CCPM, for aircraft maintenance project optimization. ...

Critical Chain Project Management CCPM: Software Optimizes Aircraft Maintenance Project: Via Black Anthem: C-130 Hercules begins critical chain project management journey ...

... "The critical path is basically the best way we can flow an airplane all the way through the system, he said. Critical chain is the longest chain on each individual aircraft and customizing each aircraft based on its critical chain. The group will use Concerto software to accomplish CCPM. This software will help prioritize where mechanics are sent to work. Concerto was used by the C-5 Production Group last year and has been modified for use by the C-130s this year. " ...

Realization Technologies defies conventional wisdom, both business- and product-wise. Used by over 140 leading organizations throughout the world, its system of execution for projects, based on Critical Chain, breaks old management rules instead of blindly automating them. Unlike traditional project management software that is heavy on planning and tracking, this system changes the rules of execution. Realization also offers fixed price implementations, with 90 percent of its fees tied to improving customers' bottom lines. Realization is headquartered at 2 N. First Street, San Jose, Calif.

IT Governance: Scope of Responsibility ...

University organization model is a representative scope for an IT governance council with good list of responsibilities. ...

IT Governance: Scope of Responsibility: Via The University of Southern Mississippi: IT Governance ...

... "This is an advisory and coordination council that provides a process for identification and prioritization of requests requiring technology support. The process will be based on business/client value which will include identifying need, cost, benefit, visibility/impact and risk. Under the direction of the Chair, the council will serve as the technology advisory body ... " ...

Business Intelligence Project: Prince2 Methodology ...

Business Intelligence Project: Prince2 Methodology: Via Computing: Mayor's office testing performance software ...

... "The LDA is using the technology as part of a data warehousing and business intelligence project run under public sector best-practice methodology Prince2. " ...

Not Motivated? Read this Tom Peters Report

I've long admired Tom Peters' PSF (Professional Services Firm) approach, where he suggests that each and every one of us in business operate as if we are our own professional services firm. When you think about it, it's truly liberating. In fact, his Project 50 book is one of the best project management books I've read.

In this free eBook, Project 05, Tom Peters rants on his favorite topics, such as: PSFs are everything, Why the MBA should be abolished, Why CEOs are idiots, Leadership tips from Lord Nelson, Why everything should be Decentralized, Passion over Process, and more.

If you're not fired up now, you will be. Highly inspiring and motivating. Check it out...

http://www.tompeters.com/blogs/freestuff/uploads/Project05.pdf

Business Performance Management: IT Project Challenges ...

Project managers need to pay special attention to requirements definition when involved in business performance management, or BPM, initiatives. Craig Schiff discusses the challenges associated with business performance implementations. ...

Business Performance Management: IT Project Challenges: Via DMReview: Maximize Business Performance: Don't Underestimate the Potential Impact of BPM

... "Underestimating BPM's possible payoff goes hand in hand with inadequate sponsorship and support from senior management that relegates BPM to a small IT project to be dealt with in the back office. This tends to result in failure to involve end users in the early stages of requirements definition and a poor grasp of the business issues. " ...

Software Project Approach; Evolutionary VS. Big-Bang Delivery

It's been a debate for some time now. Should software projects follow an evolutionary approach (i.e. rolling wave, time-boxed, agile, etc.) or a traditional waterfall, big-bang approach.

I can say that modern thinking is that the evolutionary approach is best. But it's not without its own problems.

If you're looking for a book that compares each and makes this case soundly, check out Software Projects: Evolutionary vs. Big-Bang Delivery, by Felix Redmill. It not only examines each approach, but offers solutions to the problems inherent in evolutionary delivery.

It's pricey at $130, but used copied are available on Amazon for $52. If you need to make a case or are looking to better understand evolutionary methods, it may be worth it.

Here's the Amazon.com link below...

Amazon.com: Software Projects : Evolutionary VS. Big-Bang Delivery (Wiley Series in Software Engineering Practice): Books: Felix Redmill

PMI Lowers Passing Score on 2005 PMP Exam; Breaking News

Point Advantage, a PMI education provider of PMP exam prep courses, project management training programs, and learning tools, announced on their website that PMI has lowered the passing score on the new PMP exam from 81.7% to 61%.

We reported the other day that PMI was reviewing the exam questions, as they usually do after releasing a new exam, and this is the result. Of course, they'll retroactively adjust the scores of those who have already taken the exam.

More details below on the Point Advantage site...

Project Management Certification Training PMP Exam Prep Courses

Phased Approach Critical to World Class IT Governance; Nice 'n Easy

Fred Gattelaro from Pacific Edge has an excellent article in Computerworld on the importance of introducing IT Governance in phases, not as a big-bang approach.

I can say with certainty that this is sound advice.

He suggests focusing on each of the following three phases, one at a time:

• Creating Visibility -- First Understand What Exists
• Improving Execution -- Integrating New Processes
• Optimizing Results and Continuous Improvement

Just as with introducing any new fundamental change, the organization needs to progress through a maturity model. And, for IT Governance, this one's as good as any.

Too many organizations try to do it all at once, and it becomes a real credibility problem. Read on...

Charting a Course to Achieving World-class IT Governance, One Step at a Time - Computerworld

Project Portfolio Management: Business Intelligence Enables Visualization ...

Project Portfolio Management PPM vendors are increasingly bundling business intelligence components in their offerings, such as Business Engine's collaboration with Cognos. ...

Project Portfolio Management: Business Intelligence Enables Visualization: Via Business Engine: Business Engine Teams with Cognos to Deliver Business Intelligence Tailored to IT and Engineering Organizations: Global 2000 Companies Gain Greater Insight into Project-based Portfolios with Advanced Metrics, Dashboards and Reporting ...

... "BEN Business Intelligence embeds industry-leading business intelligence technology from Cognos, including Cognos ReportNet and Cognos PowerPlay, to provide IT and business users with powerful reporting and OLAP analysis through easy access to timely and accurate information. Business Engine recognizes the strategic importance of business intelligence and corporate performance management in helping enterprises gain greater value from their IT investments, align business goals and ultimately deliver solid results, said Ted Jandl, Area Vice President of Strategic Partners at Cognos. Coupling Cognos with Business Engine's leading Project Portfolio Management solution gives savvy corporate leaders the ability to make informed decisions about their business and technology investment portfolio while helping to drive enterprise agility in the face of a shifting economic landscape. " ...

Sustaining Innovation: Growth Through Creativity ...

Creativity fuels the innovation engine. How can we increase creativity to accelerate innovation? What are leadership principles necessary to drive growth through the creative organization? Here are some great insights ... Marc Babej provides excellent summary of Peter Georgescu, Young & Rubicam, on sustainable innovation from the Fortune Innovation Forum. Peter emphasizes three points on innovation: Embrace creativity, emphasize human values, and support active involvement in investing in future generations through education. Creativity is seen as a core enterprise competency that requires a special type of leadership to cultivate and sustain. ...

Via Being Reasonable: Peter Georgescu on Sustaining Innovation ...

... "First, embrace creativity as the most vital enterprise resource. The only leverageable asset on a company's balance sheet. Creativity is the cure for lack of differentiation, and in turn it begets profits. It's an inexhasutible resource, but also fragile. Creative output requires a new type of leader, one who refuses to manipulate or manage through fear. " ...

David Tanner, Tanner & Associates, Inc., discusses harnessing and increasing the creative capability in a research and development environment. These techniques should apply to most innovation scenarios. ...

Via Winston Brill: Creativity and Innovation in R&D ...

... "It's vital to set aside quality time specifically for people to learn the techniques of creative thinking. This first step satisfies an essential criterion for cultural shift - that is, it gives status to the effort. What resources can you use to focus on this subject? In-house seminars, books and articles on creativity, and outside creativity experts. " ...

Ben Simonton expands on the leadership techniques necessary to increasing the enterprise creativity competency ...

Via Corante: What Drives Innovation?. IdeaFlow: Discussion about innovation and creativity -- new products, strategy, open innovation, commercialization of technologies, patents, idea generation, customer input in the NPD process, more.

... "The brain controls creativity, innovation, productivity, motivation and commitment. I will attempt to explain a superior leadership strategy which turns on brains to the maximum extent and thus greatly enhances innovation. ... A superior leadership strategy inspires people to do more, dream more and learn more. We all know that people are our most important asset and that the best ones are self-motivated self-starters. Unfortunately, only 5% or so are naturally that way. A superior leadership strategy is capable of making the vast majority of employees self-motivated self-starters who are highly committed and highly productive, up to 300% more so than if poorly motivated. So what is this strategy? " ...

Project Management Graphical Innovations

I've posted in the past about the limitations of current project management reporting (are Gantt charts really the best we can do in the 21st century?).

PCF has some intriguing reporting alternatives on their site for project schedule, resource, and earned value tracking, as well as high level program performance.

Check it out...

PCF Ltd - Giving You Complete Control

PMI Reviewing New Exam Questions; Clarification of Rumors

Rita Mulcahy at RMC Project Management (and creator of an excellent PMO Exam Study course) posted a clarification on her site of PMI's recent announcement regarding the review and possible revision of new exam questions.

PMI's normal process is to review the performance of questions after new exam is released, and as such they are doing it with this exam. They may remove or rewrite certain exam questions as needed, and would adjust the score of those who have taken the exam accordingly.

Apparently, rumors have gotten out of hand, and Rita clarifies them below...

Clarification of PMI Announcement Regarding PMP Exam: Are the Rumors True?

Microsoft Security: Risk Govern Audit ...

Microsoft is making concerted effort on security management, appealing to technology independent partners with services focused on security policy, governance, compliance, risk assessment, risk management and auditing, while balancing its focus on infrastructure security, the technical perspective. ...

Microsoft Security: Risk Govern Audit: Via ISACA: Microsoft Partner Program Includes ISACA Certification in Restructure of Its Security Solutions Competency ...

... "Having a skilled and innovative security partner ecosystem is central to the company’s approach and, therefore, a large part of the effort has been significant changes to the Microsoft Partner Program, Security Solutions Competency, announced this week in partnership with long-established certification programs from Information Systems Audit and Control Association® (ISACA®) and International Information Systems Security Certification Consortium (ISC)2. " ...

Michael Domingo provides update on Microsoft's updated approach to security, which balances the technical with the strategic security management: risk, govern, audit. ...

Via Microsoft Certified Professional Magazine: Security Competency Gets Revamped

... "Microsoft says it has taken a technology agnostic approach within its Security Solutions competency, splitting it into two specializations that address technical issues and the other that looks at security policy and risk management, governance, and auditing. " ...

With more than 47,000 members who live and work in more than 140 countries, the Information Systems Audit and Control Association® (ISACA®) is a recognized worldwide leader in IT governance, control, security and assurance. Founded in 1969, ISACA sponsors international conferences, publishes the Information Systems Control Journal®, develops international information systems auditing and control standards, and administers the globally respected Certified Information Systems Auditor™ (CISA®) designation, earned by more than 40,000 professionals since inception, and the Certified Information Security Manager® (CISM®) designation, a groundbreaking credential earned by 5,200 professionals.

ITIL Service Desk Implementation: Virgin ...

Virgin implements software to enable the ITIL-compliant service desk, including project management integration. ...

ITIL Service Desk Implementation: Virgin: Via Axios Systems, the leading ITIL based Help Desk and IT Service Management solution: Virgin goes for experience in IT Service Management ...

... "Virgin Money is installing assyst across its operation at its central Service Desk in Norwich, initially implementing Incident Management to be followed by Asset and Configuration Management. This first phase of the implementation will also include an integration with its internal project management process. " ...

Project Management and Art; Not so Different

Many people are suprised to hear that I was an art major in college and ended up in the IT and project management fields. But art, writing, music, computer programming, and project management have some surprising similarities.

In all cases, you typically begin with an overall structure, and then fill in details as you progress. They all require organization and planning (with the exception of some modern abstract art, but even that is often planned out). And they all involve creating something that must be accessible to people, whether it's a piece of art, a song, a software program, a project's product, or any type of communication.

Yes, planning, structure, and human interface are key to art, writing, music, computer programming, and project management, so it's not unusual to find someone adept on one area to naturally do well in the others.

Communications Newsletter for Project Managers

Since we all know from PMI that communication is 90% of a project manager's job, why don't more project managers focus most of their self-improvement efforts in that area?

Several months ago, I subscribed to an excellent communicatons newsletter from Ragan Management Resources. It's an 8-page newsletter chock full of tips, anecdotes, and ideas for anyone who needs to communicate in their jobs--and that certainly applies to project managers.

I've found it invaluable, and among all the project management publications I read, this is where I get most of my ideas from.

The website is below. You can view a sample issue and test out a trial subscription. The full subscription is $109, but well worth it. And no, this is not a paid advertisement.

Communication Solutions

CIO: Chief Information Officer Global Perspective ...

Global companies need CIOs with global perspective that respect and leverage the diversity of cultures for business success, yet are able to drive the appropriate amount of information technology standardization (technology, process, organization) to manage costs effectively. Mary Brandel explores the challenges and opportunities of the global CIO role. ...

Via Computerworld: Global CIO: Take everything IT does, then add exponential complexity ...

... "The overarching challenge that most global CIOs face is developing a common IT governance strategy that specifies a standard set of technologies and applications in order to leverage global buying power, realize huge economies of scale, spread best practices discovered in one business area throughout the world, and gain a global view of customers and operations. " ...

Leadership Equation: 12 Priorities to Live By

As PMThink regulars might know, I've posted several times about my key two priorities when managing project constraints;

1) Speed is more important than Cost
2) Success is more important than speed

Well, I have ten more overall leadership priorities that I live by. I didn't invent them all (some I've come across over the years and adopted, and some are even cliches by now), but these are the priorities that have served me well. I'll list them now, but I plan to write more about them in the future. Here are the other 10 priorities:

3) Principles are more important than rules
4) Results are more important than process
5) People are more important than results
6) Spirit is more important than ability
7) Experience is more important than spirit
8) Character is more important than intellect
9) Perception is more important than reality
10) Simplicity is more important than perfection
11) Integrity is more important than popularity
12) Facts are more important than theories

Chew on these for a while. More to come.

Project Management Seminar: Manage Complexity ...

Project Management Seminar: Manage Complexity: Via CoolAvenues: Managing Projects Successfully in a Complex Environment ...

... "Managing Projects Successfully in a Complex Environment, Program Director: Prof. Shyam Shankar Sahay, December 5-9, 2005 at IIM Lucknow ... " ...

Project Management Seminar: High Costs of Turnover ...

Project Management Seminar: High Costs of Turnover: Via Appleton Post-Crescent - Business planner

... "Dec. 13: The Northeast Wisconsin Chapter of the Project Management Institute is holding a seminar led by Thomas Mattus from Successful Strategies International on the High Costs of Turnover Within Projects. The event will be held at Liberty Hall, 800 Eisenhower Drive, Kimberly. A social will be held at 5 p.m. with a dinner and the program to follow. " ...

Project Management Seminar: Late Projects Inevitable ...

Upcoming project management seminar ...

Project Management Seminar: Late Projects Inevitable: Via Santa Cruz Sentinel: Business Calendar ...

... "Realization Technologies Inc. presents Why late projects are inevitable with conventional project management 8 a.m. to 12:30 p.m. Dec. 7 at Hilton Santa Clara, 4949 Great America Parkway, Santa Clara. " ...

IT Strategy: Just Horsin' Around ...

T A Balasubramanian explores IT strategy and the race to leverage technology for success. ...

IT Strategy: Just Horsin' Around: Via Express Computer: Galloping around with IT ...

... "Actually, I have boiled these down into what I call my four equestrian rules of IT strategy. " ...