Interpreting Business Results

Tom provides interpretation of Bank of America CEO summary of quarterly results. ... Priceless. ... Read on. ...

... "We made total asses of ourselves, allowing ourselves to be conned by a bunch of out-of-touch Nobel-winning economists with their portfolio-risk smoothing models ... " ...

Via Tom Peters: Vile Bile

Connections - Drug Development and the New Renaissance

It is several years since I first read "The New Renaissance" by Douglas Robertson but I am still fascinated by the additional perspectives it provides on today's work. The thesis is that certain developments in methods of communicating information enable advances in civilisation. The developments cited are spoken language, writing, printing and, most recently, networked computing. Each development results in orders of magnitude increases in the amount of information available to individuals. The increased access to information supports improvements in civilisation in technology, health, science, politics and virtually every other area as well.

The project connection comes up as we approach the completion of a major project to submit to the US and European agencies an application for approval to market a drug. The submission document represents an enormous amount of information about the drug. Much of the information about the its efficacy and safety is derived from extensive trials. There are many other sources, internal and external, addressing such aspects as the manufacturing process, conduct of the trials, literature searches, financial certification, labelling, test methods and scores of others. Collecting, managing, verifying and consolidating all this information within any reasonable time scale would scarcely be possible without information technology.

Breakthrough CIO Behaviors

CIO tips for transitioning from the operational to the business strategic. Behaviors include shifting the business conversations and emphasizing new organizational competencies focusing on business processes. The results are business IT projects that deliver on the value proposition. ...

... "Rather than managing the daily operations, the Breakthrough CIO identifies and executes on these projects, and tracks their returns and corresponding risk levels, until IT becomes a predictable investment. " ...

Via CXO Today: The Breakthrough CIO Role

Project Management Opportunity to Differentiate

Tata shares results of IT project performance survey and the results aren't flattering for the info tech profession. This consistent trend of non-performance offers companies that perform well to differentiate from the pack --- and, maybe, even achieve a sustainable competitive advantage. ...

... "Yet despite these worrying levels of failure to deliver, 43% of organisations say that their business managers and the Board accept problems as the norm. This attitude is especially common in Europe (44%) and AsiaPac (48%). Despite the general poor performance of IT projects globally, such results do not evoke a sharp reaction from management. " ...

IT Project Underperformance is the Norm

No surprises

Developing a new drug for market definitely counts as a major program - in fact a succession of major projects. And some drugs are more complicated than others - Biologics are compounds derived from living sources and include antibodies, vaccines and other proteins. The approval process is rightly more complicated than for small molecule drugs. Somewhere in that chain of projects comes a landmark event - Submission of the Biologics License Application (BLA) to the US FDA. The BLA is a massive document that includes all the evidence derived from many trials, studies, tests, analyses, literature searches and so on. It includes information about the drug itself, its manufacture, storage, ingredients, purity, delivery mechanism and more. It includes information about the trials, how they were conducted, how the patients benefited, any adverse reactions, how was impartiality maintained and so on. It's big and it's complex. Add to this the fact that it is a very expensive proposition and the success of a single new drug can affect the fortunes of even the largest drug company. Of course there are commercial pressures to get it done quickly - to bring relief to sufferers, to get to market, to beat the competition and to be able to start work on other opportunities.
So we have a multi-million dollar project - very important to the organisation, under tight time pressure, with scores or hundreds of component deliverables all focused on a single event. The duration and effort for many of these deliverables is very uncertain. The results of analysis of data coming in from clinical trials or from other studies affects the writing of the different components. Consistency of information in different areas is important. A new realisation in one area can require changes to a deliverable in another area. All this makes for a very exciting project management environment and the plea for No Surprises.

Project Management on One Page

I just picked up The One-Page Project Manager by Clark Campbell. I'm always looking for ways to simplify things, and am a big proponent of "one-page" type solutions. I've use a one-page business plan, a one-page charter, a one-page business case, and other such tools, always with good results.

Needless to say, I was intrigued by the concept when I saw the book. And I was not disappointed.

Not only does the book offer some good insights, but it offers step-by-step instructions on how to complete a visually appealing, one-page project overview and status for senior management that includes:

- The project's key objectives
- The major tasks and schedule dates
- How the task align with the objectives
- Project cost and schedule status
- Key resources and priorities
- Intangible key criteria
- A brief summary of the project status
- Basic descriptive information

Best of all, as noted in the book, the templates are available as free downloads from the book's website (below). I still recommend reading the book as opposed to just winging it with the template, as the book offers further explanation.

The author notes that this is not meant as a replacement for MS/Project, Primavera, or any other tool you may be using. Instead, it is used in addition, as a way to communicate with senior management, the project team, or anyone else that needs to know the relevant facts about the project without reading a fifty-page report.

Check it out...

OPPM -One Page Project Manager

Green is INnovative

Sun offers advice on green IT strategy and provides assessment toolkit as part of its eco initiative launch. ...

... "1. Assess Your Datacenter: Sun has resources available that you can use to measure the current efficiency and environmental impact of your datacenter, or we can do it for you. Based on the results, we can recommend ways to optimize space, power, and cooling for better efficiency and utilization across your IT infrastructure.

2. Optimize Your Infrastructure: Customers can upgrade their old equipment to new models that are the most energy efficient and powerful systems possible. Sun systems can deliver improved performance, power and cooling efficiencies as well as provide additional capacity in your facility.

3. Deploy Virtualization Technologies: Sun's virtualization solution is built upon industry-proven virtualization technologies – from desktop, to server, to disk and tape, and includes the free and open Solaris OS that runs across more than 890 Sun and non-Sun systems and has built-in virtualization and Predictive Self-Healing features. These products, combined with innovative programs, tools, services, and strategic partnerships can help customers achieve greater utilization, greater manageability, and significant savings, while bypassing power and space limitations. " ...

Via Sun Micro: Sun Eco Innovation Initiative

Practical Application of Innovation

Here's practical advice on applied innovation techniques. ...

... "Any Innovation plan must be just that, a hard plan. It can't be an initiative. A plan has to have milestones and expected results. These results must be measurable and memorialized in writing. " ...

Via The Heart of Innovation: Science of Innovation

The Dell Supply Chain Competitive Advantage

Dell's competitive advantage ... cooking the books ...

... "The investigation raised questions relating to numerous accounting issues, most of which involved adjustments to various reserve and accrued liability accounts. The investigation identified evidence that certain adjustments appear to have been motivated by the objective of attaining financial targets. According to the investigation, these activities typically occurred at the close of a quarter. The investigation found evidence that, in that timeframe, account balances were reviewed, sometimes at the request or with the knowledge of senior executives, with the goal of seeking adjustments so that quarterly performance objectives could be met. The investigation concluded that a number of these adjustments were improper, including the creation and release of accruals and reserves that appear to have been made for the purpose of enhancing internal performance measures or reported results, as well as the transfer of excess accruals from one liability account to another and the use of the excess balances to offset unrelated expenses in later periods. The investigation found that sometimes business unit personnel did not provide complete information to corporate headquarters and, in a number of instances, purposefully incorrect or incomplete information about these activities was provided to internal or external auditors. " ...

Via Dell: Dell Independent Investigation Completed; Will Restate Financials

EVM not serving its intended function at U.S. DoD

A recent article in InsideDefense titled "Pentagon to Take New Steps to Combat Major Cost, Schedule Problems" describes strong warnings issued by top DoD officials. Kenneth Krieg, who stepped down July 20 as Under Secretary of Defense for Acquisition, Technology and Logistics (USD-AT&L), issued a July 3 memo stating...

Several unfavorable findings from recent audits indicate that earned-value management (EVM) is not serving its intended function in the internal control process,

DOD components are due to update John Young, acting USD-AT&L by early October on "efforts to underscore the rules and get better results," according to InsideDefense. "Young announced in a July 30 letter that the military departments will be compelled to immediately form powerful Configuration Steering Boards (CSBs) for every major program in development."

Kalamazoo Dog House Story (Part 4)

How do projects help translate strategic objectives to front-line action? Our story continues. See also Part 1, Part 2, and Part 3.

Doghaus.biz introduced process discipline and Project Management to the dog house industry, with great results. Unlike archrival PetKorp, Doghaus.biz was the first to introduce custom orders to an industry that had been dominated by retail sales. CEO Michael Haus' has one strategic objective -- his economic engine -- which is to focus his business on Profit per Deliverable (PpD). That is, he tracks the price and cost of each dog house (deliverable) individually. Accordingly, his business model requires hiring low-wage installers for simple dog house installations (non-projects) but employing local construction firms for custom projects. He created an executive dashboard that tracks PpD on a monthly basis. His dashboard tracks custom-project metrics and non-project metrics on separate gauges. The PpD(Projects) indicator always shows a healthy profit, but the PpD(Non-Projects) indicator usually shows negative cash flow because it competes directly with PetKorp retail sales. So the entire Doghaus.biz executive team continually applies pressure on the operations staff to cut costs for the non-project installations.

How does this project vs. non-project tracking system play in Kalamazoo? See the comments section to find out....

Outcomes and Actions...Too simple?

Some of the feedback on my previous post, about a new and simpler definition of the word "project" has been that the definition may be too simple. How could something as complex as a major business project be defined by something as simple as "outcomes" and "actions?" My answer comes in five parts:
(1) Outcomes and actions can be combined in a staggering number of ways, not unlike the way protons, neutrons and electrons are combined to form matter. Consider Agile PM, where outcomes are defined by a backlog of user stories (with story points) and executed in fixed time bins (iterations). Consider how Agile actions are guided by daily stand-up meetings. Consider large government projects where interim outcomes are described in "work packages," are defined and refined into a complex performance measurement baseline (PMB), placed under tight change control, and tracked with various pre-defined earnings rules. Consider how outcomes include widely-agreed concepts of "deliverables" and "creating unique products, services or results." And yes, intended outcomes and next-actions help guide personal decisions as well. It is a very scalable definition of projects -- more scalable, in fact, than the traditional definition of a project.
(2) There is a lot of room for improvement, even in traditional projects, for how we define, control and track intended outcomes and how we translate those outcomes into front-line action. Consider how many projects have failed because day-to-day actions were not connected to clearly-defined intended outcomes. Not so simple, is it?
(3) It takes extra effort to decide if a project activity should be defined by its end state (outcome) or is simply a means of moving us forward (action). If we don't go this extra mile, we may create an amorphous and confusing froth of outcomes and actions that is a source of miscommunication and waste. Outcomes and actions should be distinct, yet linked. And that is far from simple to do.
(4) One of the things I've learned about outcomes and actions is that they are entirely different beasts. Outcomes are the realm of control. God bless order and structure. Outcomes need to be comprehensive and mutually-exclusive, which is not so simple to implement, but very important too. Actions will never be comprehensive and mutually-exclusive. Actions are the realm of knowledge worker freedom of choice (which is why they are knowledge workers). Actions are messy, but God bless the mess.
(5) In upcoming posts, I'll show how this definition helps with respect to the next great frontier in project management, which is Management by Project (MBP). This simple definition, although written by a personal productivity guru, has surprising power with a topic that is beyond the scope of the PMBOK Guide.
Is the outcome/action definition simple? Yes. But it explains and predicts a lot of things from personal management, to project management, to MBP.
/Garry

What is a Project? Think Again!

Max Wideman’s very impressive Comparative Glossary of PM Terms contains 23 different definitions of the word project – all written by very knowledgeable people. Creating a sticky definition of the word “project” (a sticky definition is one that can be easily memorized by a general audience) requires battling the Curse of Knowledge. The Curse of Knowledge is the result of forgetting what it’s like NOT to know what you know. The more you know, the stronger the curse. That’s why truly sticky ideas often come from unexpected sources, and different fields. (Unexpected is one of the Made to Stick principles.) In my opinion, the very best definition of the word project comes from personal productivity guru David Allen, in his brilliant book Getting Things Done. Here it is...

• A project is any outcome you’re committed to achieving that will take more than one action step to complete.

Why is this a great definition?

(1) This definition is water tight. Unlike the other 23 definitions, I can’t think of a single exception to this definition. (If you can, please post a comment.)

(2) The word outcome covers a lot of PM territory. The word outcome includes the concepts of “deliverables” and “creating unique products, services or results.” It applies to your garage project and it applies to “landing a man on the moon and returning him safely to earth.”

(3) The word action captures an essential element of every project – making progress one discrete step at a time.

(4) The word committed filters out activities that are not projects.

(5) The three key words outcome, action, and committed are simple and concrete (two more Made to Stick principles).

Most of the definitions in Widemans’s glossary define projects as the way very knowledgeable people LIKE TO MANAGE projects, especially large ones. Knowledgeable project managers like clear specifications (or user stories), they like budgets and change control, they like project-friendly cost accounting, they adore network schedules (or iterations), they like to manage risk, they manage resources, they create return on investment in their project portfolio, etc. There's nothing incorrect about any of these ideas, but these XL clothes don’t fit very well on small projects. After all, small projects are projects too, and there are far more small projects than there are large ones!

Example: If we are visiting a science museum (just a casual visit) it is certainly not a project. However, if we are committed to organizing a safe, enjoyable learning experience at the science museum for a large group of Third Graders, our project is the set of actions that we take to achieve this intended outcome. It isn't about abstractions like temporariness and uniqueness. This project does not have a budget, it doesn’t have a logic-driven schedule network, there’s no accounting system, there are no deliverables, we might repeat the adventure every school year, and it isn’t formally risk-managed or resource-managed. But anybody that has organized a major field trip for a large group of kids knows that it is indeed a project! Why? Because it has an intended outcome, it has action steps, and it requires commitment.

David Allen's definition deserves to be in the Hall of Fame of Sticky Ideas.

P.s., Thanks for reader Kurt U. for prompting this post.

Project Early Warning System

If we can detect project problems early, we can resolve them. What's your best indicator? Scope quality, SPI / CPI, QA results? ...

... "In general, the earlier you spot trouble, the easier it is to do something positive about it - anything from making minor adjustments to scope or schedule to killing the thing outright. " ...

Via CIO: Project Rescue

Agile Tipped?

Have agile methods for software development tipped yet? And, the survey says ...

... "There are two interesting observations about these results. First, although the majority of organizations are applying agile techniques on projects of 10 or fewer people, many are, in fact, trying agile on larger projects. " ...

Via Dr. Dobb's Journal: Agile Survey Results

Don't Align, Synchronize

Forrester defines a new role for IT in the strategy of a business. ...

... "But achieving a state of 100% alignment will no longer be possible - if it ever was - as firms evolve over the next five years toward business technology (BT), the pervasive technology use that drives business results. " ...

Via Forrester Research: Alignment

Late IT Projects Hurt

HP / Economist survey shows that late projects are prevalent and having negative business consequences. Speed of delivery is the key metric highlighted in the findings. ...

... "The survey showed that accelerating speed of delivery does not have to aversely affect quality or positive business results. When project overruns do occur the culprits are usually midstream changes to business priorities and poor coordination between IT and business managers. Better definition of business requirements, greater investment in IT process automation and more collaboration across IT functions are the primary solutions for accelerating time to delivery. " ...

Via HP: Global Survey Reveals Late IT Projects Linked to Lower Profits, Poor Business Outcomes

Technology Demographics Survey Results

51% of American adults are elite or middle-of-road users of technology. The balance uses few technology assets. ...

... "The questions below allow you to place yourself in one of the categories in the Pew Internet Project's Typology of Information and Communication Technology Users. " ...

Via Pew Internet & American Life Project: Where Do You Fit?

Think Clear: Mind Map to Innovate ...

To think clear, mind map. ... even if on paper ... survey says. ...

... "Two-thirds of respondents said the biggest benefit of mind mapping software is that it helps them to clarify their thinking. " ...

Via Innovation Weblog: Results

Innovate: Monday Morning Plan

Here's some ideas to jump-start your innovation tommorrow (Monday). Make some time for brainstorming. Don't penalize mistakes. Get folks interacting. Read on. ...

... "Creative or alternative thinking does not mean playing with brightly coloured balls all day long. It means selecting appropriate techniques and methods from as wide a variety as possible and matching them to the task in hand to get the best results possible. " ...

Via Derek Cheshire's Creativity and Innovation: Monday's Plan of Action

Project Team Motivators: Pay 4 Performance Bonus

Looking for ways to motivate your team through financial compensation? Performane bonus may do the trick, according to research results. ...

... "However, if the same money was applied to pay-for-performance bonuses, the analysis suggests a performance increase of better than 15 percent. Indeed, the results suggest that providing a strong pay-for-performance link for bonuses rather than raises had the greatest potential benefit ... " ...

Via Cornell Hotel School: Compensation Study: Performance Impact

The Five-Minute Project Manager

Sometimes the best project management tips come from other fields, such as this free "Five Minute Guide to Project Management" from a creative arts website.

Simple, to-the-point, and yet quite effective, this brief guide reminds us of the basics that so often get forgotten in the midst of earned value, critical path, and other favorite topics of PM nerds.

As the article discusses creating a project plan and formally managing subsequent revisions as part of a "contract" between you and the sponsor, let's not forget the importance of defending the right plan.

I was having lunch with a group of CIOs the other day (following a presentation I had done), and all agreed that the number one killer of projects was an unrealistic plan, often agreed to under duress by an intimidated project manager.

Several CIOs present shared success stories of making a case to other senior executives by way of a high level project schedule, outlining the steps needed to achieve results. Often, that's all it takes. Some people I've spoken with have had some luck backwards-scheduling as needed from a given target, either to demonstrate the futility of the desired target, or to raise discussion as to which items can be eliminated.

Anyway, I digress. Here's the article about the PM basics ...

creativepro.com - The Art of Business: Project Management for Creative Professionals

Results Project Failure Poll

Communications, resource planning, and scheduling were identified as top root causes of project failures in CompTIA poll. ...

... "Nearly 28 percent of the more than 1,000 respondents to the web poll singled out poor communications as the number one cause of project failure. Insufficient resource planning was the second most mentioned cause of project failure, cited by just less than 18 percent of poll respondents. The third most frequent cause of project failure, according to the CompTIA web poll, was an unrealistic schedule, chosen by 13.2 percent of poll participants. " ...

Via CompTIA: Project Failure - Root Cause Poll ...

The Enemy of Simplicity: The Thud Factor

We've all heard about the benefits of simplicity, whether in our processes, our communication, or in our objectives. In all its forms, simplicity is a way to reduce confusion, boost morale, and encourage speed and flexibility. In fact, simplicity, speed, and flexibility are three of the "Six Winning Principles" I wrote about in Napoleon on Project Management (the other three being exactitude, character, and moral force).

But there's a lurking enemy of simplicity, and it often goes unnoticed. It can be found in the motives of individuals creating the processes, communications, or objectives. I'm talking about job protection. I don't mean the blatant kind that results from grandiose thinking, egotism or turf wars. It's much more subtle than that.

It can happen if an individual or department is placed in charge of creating a process or devising a plan. Or it can happen if a consulting company is brought in to do a study or offer advice. Common sense says that these people, while not necessarily devious, will hesitate to come up with anything too simple, lest they feel they're not doing their job. The result is often something that is way more detailed, complex, and expensive than it needs to be.

What can we do about it? We need to be very aware of motives and rewards, and make sure we don't consiously or unconciously reward people for complexity. We need to send a message that the shortest, simplest way to meet the goal wins (even offering incentives if possible). This can avoid what many consultants jokingly refer to as "the thud factor"----the customer's perception of the value of the service as judged by how much of a noise the report makes when it's dropped on their desk.

Whether it's a consulting company, a PMO, an internal process center, or a project team, we need to find a way to head off the thud factor and insure simplicity. We can do this by understanding motives; sending the right message; insisting on brief, simple reports; and creating the right reward system.

IT Governance: Board of Director Involvement

Corning demonstrates leading practices in board-level governance of IT - setting strategy, shaping the portfolio, understanding business impact, and sustaining benefit realization. The company expects growth through innovation in display technologies, diesel products, and telecommunications. Corning has a history of innovation and continues to invest in longer-term emerging technologies. ...

... "They play an active, creative role in helping to set IT strategy, make sure they know what's in the technology pipeline and what it will mean to the bottom line, and ride the results hard. " ...

Via Corporate Board Member Magazine: Board Level Governance of IT

Innovation Obstacles: Resistance, Time

Pulse-point survey on innovation shows cultural resistance and lack of time as barriers to innovation. Langdon Morris is author of Permanent Innovation, which is the process of innovating continuously, by developing an organizational culture that embraces innovation as a core value. ...

... "Both topics are chronic problems in organizations today, and both are significant red flags that indicate unhealthy situations. If your organization is characterized by resistance to change or you don't feel you have enough time for innovation then it may be time for a serious assessment of your organization's culture, and perhaps some remedial work to shift more of your focus toward something other than short term concerns." ...

Via Innovation Labs: Results of the Permanent Innovation Survey (PDF) ...

Is Project Management Relevant?

Over the years, I've had discussions with software developers who question the need for project management. I've heard everything from "The developers are the only ones who really know what's needed anyway!" to "All the project managers do is slow things down and add unnecessary bureaucracy!" to "Why can't the the developers just work with the customer to give them what they need and avoid the middleman?"

The fact is, given the right developer and a fairly isolated project, all of these are valid statements. But many projects are much more complex than that. They involve multiple stakeholders with conflicting needs, offshore resources, multiple vendors, complex interrelationships with other activities and departments, and more. They frequently involve managing all of this against budget and schedule constraints.

Leading, facilitating, and managing all of these elements is where a good project manager can help. An effective project manager removes barriers for a team rather than adding barriers. Any activities that may appear like "nuisance work" to technicians, such as reporting time or percent complete against milestones, are often necessary to meet the project's schedule or budget constraints.

A good project manager will work with developers to determine the appropriate project approach, depending on the constraints and the level of uncertainty involved. Perhaps an agile approach is warranted, with learnings applied incrementally. Perhaps piecemeal deliverables can be achieved for quick wins and earlier value. A good project manager will also prepare management reports, conduct presentations, and deal with vendor issues.

Most of all, a good project manager will communicate to all parties throughout the project. Although some developers do indeed have the expertise to do all this, it distracts from the work they need to do.

This is not just a nuance of the software industry. The same holds true in any industry where technical or subject matter experts question the need for project management. Project management is a completely different skill set, necessarily so. It's geared toward leading people to achieve objectives. An organization can of course put the project manager in a better position to be successful by providing adequate tools, general principles, and minimal bureaucracy.

The article below offers clear and simple evidence of the importance of project management. It begins with the results of a 1999 study that showed that the number one reason companies stopped working with Internet design firms was not about their lack of creativity or high costs---it was about their inability to effectively manage a project.

Here's the article...

MB Journal Article Archives

IT Supplier: Pressure Expected

CIO survey indicates increased pressure on IT suppliers to lower costs. ...

... "... negotiating tougher terms with suppliers of commodity systems and services is a top priority in order to free up investment for strategic software development and business change programmes. " ...

Via silicon.com: CIO Survey Results

Business Results: IT Strategy

Today's IT career path requires evolving your role into a challenging place - the potential to impact business results - which comes with its set of risks. However, standing still increases the risk of outsourcing, or worse yet, irrelevance. ...

... "If they're not in the decision-making stream, playing some role that's accountable for real results from IT strategy, even on a very local, project level, they're at greater risk both to outsourcing and stalling wages. They need to work themselves into a position that's closer to business results and end customers. " ...

Via InformationWeek Weblog: Read

Managing from the Bottom Up

Yesterday I entered a post about Best Buy's new Results-Only Work Environment (ROWE), and how allowing employees total freedom as to where and how they work, focusing instead on results, has shown a 35% productivity improvement. Granted, this may not apply in every environment, but the premise of focusing on results over rules is sound.

What I failed to mention is that this initiative didn't come from the top. In fact, CEO Brad Anderson didn't even know about it untill it was well under way and showing tangible benefits. And that's just the way he likes it.

Kudos to Anderson for allowing the flexibility in his organization for innovation from within, and the courage to try new things. That is what a learning organization is all about.

Anyone who ever brought about major transformation (think Martin Luther King, Ghandi, Jesus), usually did it in a bottom-up approach, not by first convincing "management."

One other thing I failed to mention. While it's uncertain to what extent it played in encouraging this particular situation, a primary consultant to the Best Buy organization is Marcus Buckingham, the talent management guru and author of three of the most enlightening management books I've read (First Break All the Rules, Now Discover Your Strengths, and The One Thing You Need to Know). I'd venture to say that his influence has at least indirectly encouraged this people-focused mentality.

Focus on Results, not Time: Best Buy Breaks New Ground

The other day, I posted a blog about the traffic anarchy experiment going on in Europe, where seven cities eliminated all traffic signs and the result was a reduction in accidents. My point was that if we focus on accountability and results, people will surprise us.

Well, Best Buy has taken that a step further. In the latest Business Week magazine, the feature story highlights Best Buy's daring new Results-Only Work Environment (ROWE) program. As part of the program, they have eliminated all work schedules in their participating areas and have practically eliminated meetings.

If someone wants to come in at 10:00am, fine. If they go to a movie in the afternoon, no problem. The key isn't how many hours they work, or even where they work (most workers are virtual most of the time). It's how well they achieve results.

Sound like chaos? Sound like people will just slack off? Well, once again the results say it all. For the divisions testing this method, voluntary turnover dropped dramatically (-90% for the Dot.Com division, -52% for the Logistics Division, and -75% for the Sourcing Division).

Sure, the turnover rate went down, but what about productivity? That too was greatly improved. The average rise in productivity for the participating divisions was +35% since the ROWE system was introduced in 2005.

Of course, what's important to making this work is to have the right metrics (i.e. customer retention, reduction in turnover, etc.). Many business mistakes happen because the wrong incentives are in place, leading workers to strive to meet a goal that sacrifices quality or is not in the best interest of the company as a whole.

The bottom line is that evidence is growing that we are better served by focusing on results over rules and policies wherever possible, something I've been saying for years. Now I'm glad to see some tangible evidence from those brave enough to try it.

Here's the Business Week article. Be sure to check the sidebar article about how to kill meetings!

Smashing The Clock

Control vs. Accountability: Are We Our Own Worst Enemy?

In our never-ending struggle to gain more control over the chaos in our organizations, and with more and more focus on change management, who would think of going in the opposite direction and allowing more freedom?

Let's take a look at a story with some surprising results (sent courtesy of my old friend, Larry Beane).

Thanks to a project initiated by the European Union, seven sities and regions in Europe have completely done away with traffic signs. The originators of this idea must have been on to something. Contrary to the normal expectation that this would result in pandemonium, the accident rate went down!

Now arguably, this may or may not work in a congested city, but it got me thinking about the need for accountability. Perhaps the more rules we inflict, what we're really doing is relieving people of accountability---the paradox being that we need to give people freedom to make them fully accountable. Otherwise, we claim ownership of the problem instead of delegating it.

This is not unlike Toyota's policy of trusting their work teams to solve problems independently, and trusting that if their solutions are wrong, they'll work to correct it and learn from the experience. This is what a learning organization is all about.

This isn't to say we should just abandon all change management processes. On the contrary, providing people with effective processes can lead to successful outcomes. But for each rule we devise, we should consider an alternate approach of holding people accountable for outcomes, and insuring they have the capacity to succeed. Yes, provide processes, training, principles, guidelines, etc. But then focus on outcomes and accountability. And allow for learning-based corrections.

It's a radical thought, but a little anarchy may just bring the control that we need.

Here's the article about the successes of traffic anarchy...

Controlled Chaos: European Cities Do Away with Traffic Signs - International - SPIEGEL ONLINE - News

Innovation: Necessary But Not Sufficient

Recent research illustrates that companies expect their growth to be enabled through innovation, however they see significant room for improvement in their innovation process. To address their shortcomings, the survey results show a strong investment in external spending on the front-end of innovation, including customer and market insights. Survey provides additional findings for improving innovation. ...

... "Furthermore, 50% of the companies reported that 10% to 25% of their revenues over the next 3 years would be driven by products and services that will be developed over the next 12 months. Less than 5% of these companies believe they have a highly effective innovation process and only a small number are using state of the art approaches to innovation like open networks and innovation based metrics." ...

Via ArchStone Consulting: Survey Reveals 50% of Companies Dissatisfied with Return on Innovation Investment (PDF) ...

IT Architecture: Cross-Over Potential

Computer architecture principles are applied to treatment of ADHD and dyslexia with positive results. IT strategist contributes to advancement of our understanding of these disabilities. ...

... "Eugen Oetringer is an infrastructure consultant in the information technology industry. His areas of expertise include capacity management, information management, storage management, IT architecture, IT strategies, processes and complexity. He is the main inventor and author of The IT Strategy Management Process, which describes a simple way to manage important information in the midst of information overload. " ...

Root Cause Proposal for ADHD, Dyslexia, Headaches and other Conditions – Public Request for Research

Extreme Project Management: Reality Rules

I just finished reading Doug DeCarlo's book, Extreme Project Management. I met Doug at a recent PMI event we both presented at. Not only is his keynote presentation a crowd pleaser (hint: he plays the drums to illustrate the pace of a typical project and uses Noah's Ark as a sample project from the "ultimate Sponsor"), but his book is chock full of practical, immediately usable ideas.

I was amazed at how much his philosophy mirrors my own, with a focus on simplicity, value, results, and the understanding that change is inevitable. A key point of Extreme Project Management is that reality rules. Plans are nice, but then results must drive further planning instead of assuming reality will yield to the plan.

As an example of simplicity, consider what he calls "The Four Business Questions":

1) Who needs what and why?
2) What will it take to get it?
3) Can we get what it takes?
4) Is it worth it?

As another example, check out his "Three Sentence Project Skinny":

1) Who will do what for whom?
2) This project will be considered completed when: ___
3) Why? This project supports the organizations objective to: ___

The book also offers handy checklists (such as what to ask the sponsor during the first and secend meetings, etc..), the 4 Accelerators, the 10 Shared Values, the 7 Win Conditions, and more.

Although the book is the size of the Encyclopedia Britannica, it's extremely readable and has diagrams that bring together all the concepts in the book. I highly recommend it to anyone looking for a book grounded in reality as opposed to academic theory. Above all, this will help project managers succeed where the rubber meets the road---communicating and dealing with stakeholders.

Amazon.com: eXtreme Project Management: Using Leadership, Principles, and Tools to Deliver Value in the Face of Volatility: Books: Douglas DeCarlo

Singing for Project Management

In honor of International Project Management Day, held on November 2nd, the PMI GovSIG produced an entertaining musical video called Big Results. I can see the followup to "High School Musical" already.

The sound is a little out of synch from the video, making it sort of like "Godzilla Meets Project Management," but still entertaining.

Check it out below...

International Project Management Day November 2, 2006

PMI Announces Program Management Certification: Bring On the PgMP

PMI has finally announced the certification for program managers ---- the Program Management Professional or PgMP (the "sm" after the designation in the press release is for the service mark). It'll be available in early 2007.

The title is probably a good choice and has good synergy with the existing PMP designation. Of course, it's the same designation as the Program Management Plan (PgMP) from the Army Core of Engineers, so hopefully that won't cause confusion in those circles.

As I've mentioned before, the rigor of the PgMP requirements should give organizations a pretty good feeling about taking on program managers with this certification. It's based heavily on experience in the real world and feedback on results as opposed to pure knowledge.

Also, one needn't have a PMP certification to apply for PgMP certification. Here's the press release...

PMI to launch credential for program management practitioners

Talent Management: Readiness Survey Results ...

Interesting results of recent talent survey ...

Knowledge Infusion performed the 2010 Talent Readiness Survey in the early summer of 2006 to understand the talent gap to be left by retiring Baby Boomers. The study evaluates when people will leave the workforce, if there will be talent shortages that impact business outcomes, the steps organzations can take to find, develop, and retain the critical skills required for success. ...

The survey validates these findings:

Larger organizations are likely to impacted the most by the retiring workforce.

By 2010, a significant portion of the eligible workforce will retire.

To get ready: You must understand the impact on your organization. What percentage of your workforce could retire in four years? If succession planning at your company is focused more on the executive ranks, now is the time to apply succession modeling to your critical skills. Take a skills inventory. Understand the skills across the workforce demographics. Develop a plan to attract and retain the critical skills for your organization.

And, of course, digitizing your talent data enables your organization to provide visibility to this critical workforce information. Cornerstone OnDemand provides integrated on-demand solutions for talent management.

Via Cornerstone OnDemand : Managing Talent in the Face of Workforce Retirement ...

Project Results Podcast: Moral Force

Here's the latest Project Results podcast. In this podcast, I discuss moral force, the sixth of Napoleon's Six Winning Principles, which can be achieved by providing order, purpose, recognition, and rewards. Enjoy.

PMO of the Year: Do You Qualify?

As reported in PM Forum, the Center for Business Practices (CBP) is sponsoring a "PMO of the Year" award. The deadline for entries is September 30, 2006.

If your PMO has succesfully implemented new ideas, methods, and processes that led to measurable improvements and tangible results, you just might be a winner.

The winner will get extensive industry press coverage, an all-expense paid trip to the CBP Summit in Las Vegas, and more. Here's the PM Forum article...

PMFORUM, Connecting the World of Project Management PMFORUM Breaking News: New PMO Award Announced by Center for Business Practices

ITIL Six Sigma: Future IT Operations ...

The convergence of ITIL and Six Sigma is expected to be the future framework for IT operations. New book explores the use of Six Sigma in the information technology organization. ...

... "Lead Author of the book, Sven den Boer of Getronics said: This long-awaited book on aligning ITIL and Six Sigma is a good start for professionals who want to appreciate how these two approaches can be combined. Proxima Technology played a key role in the book by providing some practical examples to help make it easier for readers to understand. We were pleased to have Linh Ho on the team. itSMF-NL Chief Editor, Jan van Bon was very pleased with the results and added: We have succeeded in finding a great team of authors internationally, experts in both ITIL and Six Sigma. Today, the need for Six Sigma is continuously heard from the IT management field, and we hope to fulfill the fast growing demand with this great best practice. " ...

Proxima Technology's Marketing Director Co-Authors Six Sigma for IT Management Book

For good results; Spare the Melodrama

I just read an interesting antecdote. In 1968, during the National Basketball Association's Eastern Division playoffs, Bill Russell missed a foul shot and had only one more chance to sink the basket to seal the victory against the Philadelphia 76ers. If he missed it, the Sixers would have an opportunity to tie the game. Sam Jones, a guard for the Celtics, went up to Russell and whispered something. Russell made the shot and won the game.

Everyone wanted to know what powerful words Jones said to Russell. Eventually, Jones revealed his powerful, inspirational words.

His words were, "Flex your knees, Bill."

It's a good lesson that sometimes, a gentle reminder of what's needed is much more powerful than a lecture or a melodramatic plea. Food for thought.

July Podcast from Jerry Manas - Character

Once again, a few days late, but better late than never... In this month's podcast, I share Napoleon's thoughts, words, and actions to illustrate character, which includes integrity, calmness, and responsibility.

Incidentally, for those who wish to receive the free monthly Project Results e-newsletter, which includes information from Napoleon on Project Management, as well as articles on leadership, project management and other such topics, here's the sign up page.

ITIL Service Delivery Software ...

Software category continues to improve at ITIL service delivery processes ...

... "Targeted at distributed and disparate environments, Vigilant's Get Aware Suite offers a complete set of comprehensive ITIL based processes for service delivery and incident management. The foundation of the enhanced suite is a methodology based on results-oriented processes that assist IT organizations in correlating information and diagnosing root causes." ...

ITIL Service Delivery Software: Via Vigilant: Vigilant Technologies Enhances Powerful Suite for IT Performance and Operations Services ...

Project Failure: Asset Impairment Charge: IT Strategy Rationalization ...

IT integration projects are a tough business. Failures can be expensive, impact the bottom line, and affect careers. Here's a clear example ...

... "LCH.Clearnet has decided to close down its Generic Clearing System (GCS) project. A review of the GCS programme in 2005 had already concluded that part of the GCS investment would not be brought into economic use and an impairment charge of EUR20.1 million was therefore recognised in the 2005 interim accounts. Further work completed in June 2006 concluded that the further development of GCS was not economically or technically viable, and the Group has therefore decided not to continue to use assets from GCS within its technology strategy. An impairment charge of EUR47.8 million, which substantially relates to those assets, has been recognised and will be reported in the LCH.Clearnet Group Limited 2006 half year results to be published in August." ...

Project Failure: Asset Impairment Charge: IT Strategy Rationalization: Via LCH ClearNet: LCH.Clearnet Rationalises IT Strategy ...

Is the Role of the Project Manager in Jeopardy? - An Editorial

A few weeks ago, I posted a blog about the new Program Management credential from PMI. In it, I referenced PMI's definition of a program manager vs. project manager in their FAQ page.

A project manager, according to PMI, has the following responsibilities (I've put some of the key points that jumped out at me in bold):

• Perform their duties under general supervision and are responsible for all aspects of the project for the life of the project
• Lead and direct cross-functional teams to deliver projects within the constraints of schedule, budget and resources
• Demonstrate sufficient knowledge and experience to appropriately apply a methodology to projects that have reasonably well-defined project requirements and deliverables.

A program manager, according to PMI, has the following responsibilities (again, I've bolded the key points):

Under minimal supervision, program managers are responsible and accountable for the coordinated management of multiple related projects directed toward strategic business and other organizational objectives. These programs contain complex activities that may span functions, organizations, geographic regions, and cultures. Program managers build credibility, establish rapport, and maintain communication with stakeholders at multiple levels, including those external to the organization.

Clearly, a program manager must be closely tied to the strategic goals and benefits, monitor the program accordingly, and have a strong connection to senior management. And I also feel that the new credential seems on the surface to set the bar appropriately high.

But I can't help but feel that, in contrast, the PMP credential is losing steam. First, there are myriad organizations virtually guaranteeing an "instant-PMP" after a crash course and some tweaking of one's background experience (although PMI is now doing audits of work experience).

Second, a project manager must, in many cases, go beyond the PMP/tactical focus and possess the same traits and skills that PMI has designated as requirements of a program manager, especially in the case of an enterprise and/or global project, such as a business transformation effort. I realize PMI's role definitions are a way to differentiate and justify the new certification and I suppose one could organize their effort into a "program" to qualify for that certtification, but in these changing times (and with greater challenges for project managers), I think PMI needs to evaluate and revamp the PMP certification as well.

When I do presentations on principle-based leadership training, I have a slide where I present what I call "The PM Challenge." I present it as a boxing match. In one corner, we have a project manager, armed with MS/Project and the PMBOK, but lacking:

• Business Acumen
• Leadership Skills
• Conflict Management Skills
• Negotiation Skills
• Presentation Skills
• Communication Skills
• Strategic Intuition

In the other corner, we have the "challenger," represented by "the project," with the following characteristics:

• Global, virtual team
• Complex technology
• Complex change
• Multiple vendors
• Offshore resources
• Conflicting Stakeholders
• Scrutinizing Executives

Such a project manager, without the appropriate leadership and soft skills, doesn't stand a chance. Wouldn't a person with the skills PMI describes as a "program manager" be more apt to have success?

In the latest PM Network magazine from PMI, there are not one, but TWO articles that illustrate this point. One is titled "Project Management 2.0: Project Management is at a Crossroads," by Peter Fretty. The other is titled "No Limits," by Marcia Jedd, and talks about what project managers must do to crash through the glass ceiling and elevate it from the tactical trenches.

Perhaps a start would be to take a new view of project management beyond just "executing to a set of requirements to deliver on-time and on-budget." The current tactical focus might explain the consistent failure rates of projects. One problem is that PMI has traditionally "followed common good practices in the field," which of course is what a standard is supposed to do. The problem is that common practices have brought common results, which aren't all that good. Time for an upheaval. Perhaps they need a section, apart from the "standard" itself, for "new frontiers in project management," which could outline those who are breaking the mold with good results.

I'd be interested in others' thoughts on this topic. Who knows---It just might help drive requirements for the next version of the PMBOK and/or PMP credential.

Implementing PPM: Don't Expect Overnight Results

Karen Klein of Projects@Work interviewed Daniel Stang, a principle analyst at Gartner, on preparing for Project Portfolio Management (PPM).

Some key lessons are to not expect overnight success, to implement in stages (beginning with automating what is already working), and to engage a good change management team.

Organizations that attempt to go from zero to high level maturity via a big-bang approach run a high risk of failure. Stang also cautions against trying to sell PPM initially on the hard benefits. The benefits at the early stages of maturity tend to be softer, with the tangible benefits coming later.

Here's the article. Also, see the free PPM Software Evaluation tool offered at the bottom of the article.

http://www.projectsatwork.com/content/Articles/232143.cfm

Elusive IT Project Value: Book Tells How To Achieve It

I've just finished reading an excellent book on achieving value from IT projects, The Information Paradox: Realizing the Business Benefits of Information Technology, by John Thorp and the Fujitsu Consulting's Center for Strategic Leadership.

Thorp and company claim that today's IT projects are evolving more and more from simple automation efforts to complex "information" initiatives, and even further---to complete business transformation initiatives. This calls for a different approach and requires IT and Business collaboration.

As the book points out, the classic "let's buy a product and assume it comes with automatic benefits" approach doesn't work in today's more complex arena (and in fact it probably never did). In a complex business transformation initiative, trying to assume that an IT project in isolation will deliver value is wishful thinking.

The book also points out the four critical dimensions of complexity, which it says are blind spots in traditional thinking:

1) Linkage - to other related initiatives and to business strategy
2) Reach - those areas of organizational structure or supply chain processes that may be impacted by the change, or that need revisiting in order to bring about the benefits
3) People- those affected by the change and/or that need to be engaged (i.e. proactive change leadership and stakeholder analysis)
4) Time - the time it takes to manage the overall initiative, including the above dimensions, to fully realize the benefits (most companies grossly underestimate this)

Unfortunately, many IT projects just focus on on-time and on-budget delivery (resulting in a situation that the book describes as, "the operation was successful but the patient died"). Thorp and company refer to this as "investment myopia."

Instead, a committment to business value, ongoing process improvements, frequent iterations of delivery, and better project selection techniques are key. Most of all, we need to be aware of the blind spots mentioned above.

The book goes on to describe how a system of program management, portfolio management, and governance, with a focus on benefits realization, can bring about results. It also cautions about the dangers of treating selections as a one-time annual event, making selections in isolation (instead of in the context of investment programs), and not looking at all aspects of value (i.e. going beyond simple financial measures).

I highly recommend the book for those struggling with determining the value of IT, or trying to bring about collaborative change in their organizations. If you look at any major successful transformation, it was brought about by a marriage of technology, business process, and organizational change, and with full backing from senior management. This book can go a long way toward helping make this happen.

IT Governance: Model for Accountability ...

Is the CIO accountable for the decisions in IT governance? Michael Schrage discusses techniques for creating accountability in IT governance --- make governing boards and steering committees accountable to each other and for results. ...

... "That story often comes to mind when I hear the frustrations of IT governance and IT project steering committees designed to better align budgets, schedules, requirements and priorities. " ...

IT Governance: Model for Accountability : Via CIO: The Hammer of Consensus ...

IT Strategy: Financial Services CIO Recognized ...

CIO is recognized for excellence in strategic management, impact on company results, and deployment of advanced technology. Financial services firms are critically dependent on technology and must integrate IT strategy into the overall business strategy. Saxo Bank is differentiating itself. ...

... "In a profile appearing in Borsen in connection with the award, Ole Rossing was commended for his central role in the strategic direction of Saxo Bank. The bank has no separate IT strategy – rather, IT is a fully integrated part of the company's total strategy, placing Rossing in a particularly pivotal role for the bank's success in recent years. He has also been a key driver of the bank's exponential growth in recent years. Ole Rossing came to Saxo Bank eight years ago, at which time the bank's IT department numbered just seven employees. Today, Rossing leads 200 of Saxo Bank's 575 current total employees. " ...

IT Strategy: Financial Services CIO Recognized: Via saxobank: Saxo Bank's Ole Rossing scoops up IT award ...:

Join the Project Management Revolution; The SOPM Model Takes Shape

OK, I've been fleshing out the Service-Oriented Project Management (SOPM)™ model, and have come up with a more memorable and catchy representation of the four steps, although the actual content is pretty much the same.

The acronym for the four phases is UP-IT (which can symbolize "upping" the level of customer service, saying "up yours" to old ways of doing things, or "upping" the success rates of IT projects---in which case the "it" stands for "IT").

Ready??? Drum roll please......

The four phases are:

• Understand
• Prepare
• Iterate
• Transform

Here's a revision of my previous post on the topic...

1) UNDERSTAND ... Develop an understanding of the problem being addressed, the goals, constraints, the internal environment, the external market, benchmarks, the people and subject matter involved, potential solutions, risks, benefits/justification, and any other knowledge necessary for success. Most of all, understand the customer and what they need to be successful.

2) PREPARE ... After helping the customer obtain approvals if needed, prepare the project organization (resources, roles & responsibilities), operating principles, the infrastructure and tools needed to run the project, organizational alignment, preliminary training needed, communication, and anything else needed for a smooth road ahead.

3) ITERATE... Using the axiom, "Think bold, implement safely," plan, design, build, test and pilot the solution before attempting a full scale implementation. Encourage innovation. Implement in phases to achieve quick wins, earlier benefits, and greater customer satisfaction. Consider iterative prototypes during the design phase. Don't forget additional training needed.

4) TRANSFORM... After each project phase and at the end of the project, evaluate and document lessons learned, customer satisfaction, and benefits achieved (vs expected) for the purpose of transforming yourself and the customer for the better. This includes guiding the customer to help them achieve maximum results with the product or service delivered, and laying the groundwork for their continued success.

Now that I have the framework locked in, I'll complete the model around these four phases. I am absolutely convinced that this model can help increase customer satisfaction and the general success rates of projects.

Are PMOs Too Complex For Their Own Good?

There's an excellent editorial on PM Forum about the increasing view of PMOs as "unnecessary bureaucracy" by many senior managers. Unfortunately, many PMOs have created this situation for themselves.

The trick is to focus on streamlining schedules and reducing overhead costs, but in reality the "lets' make our process fit the most complex project we can imagine" approach often results in the reverse---according to the article---as people on normal size projects don't know which items are optional and which are mandatory.

If done right, a PMO can be an excellent way to institute repeatable lean processes, upskill the organization, and remove barriers for project teams. If done wrong, it can appear as a bureacratic burden on the organization.

This editorial is well worth reading for those starting a PMO and looking to avoid being a statistic ...

PMFORUM, Connecting the World of Project Management - Editorials

SOPM; A New Project Management Methodology

Service Oriented Project Management (SOPM) is taking shape as a methodology that fills the gaps in traditional project management, namely a RELENTLESS customer focus and the all-important analysis and benefits evaluation after the project has "completed."

As I fine tune the model, I'll post the iterations here, as a methodology in progress.

The four high-level steps in SOPM are as follows:

1) UNDERSTAND ... Develop an understanding of the problem being addressed, the goals, constraints, the internal environment, the external market, benchmarks, the people and subject matter involved, potential solutions, risks, benefits/justification, and any other knowledge necessary for success. Most of all, understand the customer.

2) ENABLE ... After helping the customer obtain approvals, prepare the project organization (resources, roles & responsibilities), operating principles, the infrastructure and tools needed to run the project, organizational alignment, preliminary training needed, communication, and anything else needed for a smooth road ahead.

3) ITERATE... Plan, design, build, test and pilot the solution before attempting a full scale implementation. Implement in phases to achieve quick wins, earlier benefits, and greater customer satisfaction. Consider iterative prototypes during the design phase. Don't forget additional training needed.

4) EVALUATE... After each project phase and at the end of the project, evaluate and document lessons learned, customer satisfaction, and benefits achieved (vs expected). This includes evaluating how the customer can achieve maximum results with the product of the project, and laying the groundwork for their continued success.

By using an UNDERSTAND, ENABLE, ITERATE, and EVALUATE process, with COMMUNICATE as an overarching activity that extends across all four steps, we adopt a much more holistic and customer-centered approach to project management.

A few key points... Customer satisfaction should be measured at milestones throughout the project, not just at the end. It's as important as monitoring cost and schedule (i.e. Earned Value performance).

Imagine seeing an S-Curve showing Planned Value, Earned Value, Actual Cost, and Customer Satisfaction. Maybe your project is on schedule and on budget, but the customer isn't satisfied with the results (or with the project communication, or a whole host of other issues).

A narrow focus on cost and schedule takes too much of an inward view. Besides, measuring customer satisfaction throughout a project allows for corrective action instead of managing in the rear view mirror.

More to come.

NOTE: I have since revised this model. See my updated entry.

Service Oriented Project Management (SOPM); Bridging Three Worlds

With all this talk about Business Process Reengineering (BPR), and the latest industry focus on innovation, I've been piecing together a model that brings together the best of BPR, Innovation, and Project Management (and even borrows elements of ITIL). I call it Service Oriented Project Management or SOPM. I believe the term has been used, but not in this context, and not as a formal model. I think it's important enough that it needs to be formalized.

There are some that view these three disciplines as separate, or even mutually-exclusive, but they're not. In fact, to be successful, these disciplines need each other. It should go without saying that BPR needs innovation in order to break new ground (resulting in dramatic and radical change, as opposed to incremental change). And project management skills are needed to keep a team on track and manage risk.

Certainly, there are situations where incremental change is quite appropriate, and, for these cases, process "improvement" disciplines such as Six Sigma and TQM are fine. But especially when radical change is needed, we need a superstructure of good project management to lead all phases of a BPR initiative, from the as-is state exploration, through the to-be state development and validation, and to the actual implementation of the initiative.

Likewise, project management in general needs the strong customer focus that BPR brings (usually sorely lacking in most projects). Almost any project can benefit from a BPR-type approach of getting to the root of the customer's problem first-hand, and bringing about dramatic results through innovative thinking. This also takes project management beyond the realm of simple "execution and control".

Using a BPR lifecycle, innovative thinking, and an overall project management approach, we get a holistic methodology that uses the best of each. And, if this is driven by overarching principles from all three disciplines, we can boost our chances of success exponentially.

And finally, there's the customer. EVERYTHING in all of these disciplines must have a relentless focus on the customer. With any initiative, the glue that holds all of this together is a service owner--- someone who understands the customer's needs (and their business) and owns the initiative from cradle to grave (just like an ideal order fulfillment process should be, according to Michael Hammer, the inventor of BPR). Whether or not this should be the project manager is a whole subject in itself, but it should be someone.

If the project manager does assume this role, then they had better have a strong customer and business focus, and be relieved of any project administration duties that aren't adding value to the customer (which can be assigned to a project accountant). In many companies, the project managers may not have the right skills for this role, but that's not to say that shouldn't change.

More to come, as I flesh out and develop the model. Meanwhile, I'm open to your thoughts on this.

Study Shows No Consensus on PMOs

Having trouble getting consensus in your organization on the value and structure of your PMO? If so, you're not alone.

As reported in PMForum, the research team that has been studying how PMOs are used has released its interim findings.

The findings, based on the 500 companies studied, show that there is wide variation in the perceived value of PMOs, the structure of PMO's, and in the functions PMOs deliver.

In addition, there appears no be no pattern whatsoever in one industry or region versus another. At the least, it'll make it difficult to come up with any kind of "standard PMO design."

It only makes sense that a PMO's charter could vary based on the culture of the organization, the project management maturity of the employees, the committment of senior management, what the organization is trying to get out of the PMO, and a host of other variables.

Maybe the lack of agreement, and the resulting organizational maelstrom caused when many PMOs are launched, is the reason why two-thirds of PMOs fail. Studies have shown that the PMOs that begin by insuring the success of project teams and providing portfolio management services---and then progress to becoming a center of excellence---seem to have longer-lasting success than those that try to do too much too soon.

Meanwhile, it should be interesting seeing the final results of this particular study. The PMForum report is below...

PMFORUM, Connecting the World of Project Management PMFORUM Breaking News: REALITY OF PMO'S STUDY: INTERIM RESULTS RELEASED

Organizational Project Management; Why Should CEOs Care?

Paul Dinsmore and Pedro C. Ribeiro's article in Chief Project Officer talks about why CEOs should care about project management. He lists several areas where project management can directly impact the bottom line, including working capital, sales growth, and profit margins.

People are beginning to realize that project management is much more than managing individual initiatives; it's about transforming everything an organization does into a project-based approach.

In the article, Celina Antunes, CEO South America Region for Cushman & Wakefield Semco comments:

“For decades, project management has been a discipline in engineering, construction and other industries, where a key management skill has always been the ability to complete a job on time and on budget. Yet it's only been in recent years that the discipline has moved to its current status as one of the leading reasons for success in some of the world's best companies. When you need an outcome done right, on time, and within a budget, you definitely need project management to assure results”

Of course, to be truly effective, this requires a strong committment to becoming a "learning organization." Here's an excerpt from another quote, from Robert Cook, former CEO Latin America for Unisys Corporation:

“The importance of excellence in project management could not be over rated. I would guess that all of us as senior operations people have been involved in projects that have created shareholder value and those - that have reduced
shareholder value... We need to be in a continuous learning process. A well structured lessons learning process in project management is key to seamless execution and ensuring that the direction of the project is correct from the beginning of the effort”.

For the full article, read on...

Chief Project Officer: Why Should Project Management Matter to CEOs?

When IT Projects Impact the Bottom Line ...

Accenture takes financial impact to the bottom-line for over-runs associated with the UK National Health Service IT project, enabling an integrated patient care record. Project issues are related to sub-contractor delivery delays, higher forecast development costs, and lower projected adoption rates. ...

... "The National Health Service's troubled GBP6.2bn IT project has descended into financial misery and corporate recrimination, with Accenture forecasting it will not make a penny from the scheme for years " ...

When IT Projects Impact the Bottom Line: Via Telegraph: Accenture sunk in an NHS mire ...

Accenture Reports Second-Quarter Fiscal 2006 Financial Results: EPS of $0.11 Includes $450 Million Pre-Tax Provision Related to Company’s National Health Service Contracts: "Based on new developments in the second quarter, Accenture now believes that the future costs of deploying systems will exceed future deployment revenues under the current contract terms. As required under GAAP percentage-of-completion rules, Accenture has recorded a $450 million provision for future losses on deployment. The provision is reflected in cost of services for the second quarter of fiscal 2006. The provision, net of lower bonus compensation, resulted in a $342 million pre-tax reduction in operating income and a $0.27 after-tax reduction in EPS in the second quarter. "

ITIL Best Practice Projects Accelerating ...

Voyence's survey results on ITIL adoption shows that approximately half of those surveyed expect to accelerate ITIL best practice projects over the next 18 months. Change and configuration management were selected as the most important ITIL implementation. The next most important ITIL-candidate processes were incident and problem management. ...

... "Voyence, a pioneer in automated change and configuration management solutions, announced the results of a survey taken at Pink Elephant's 10th Annual International IT Service Management Conference from Feb. 12-14, 2006. Voyence sampled 83 random IT administrators at the show to determine the industry's readiness for regulatory compliance demands and how quickly the industry is adopting IT Infrastructure Library (ITIL) best practices. " ...

ITIL Best Practice Projects Accelerating: Via Voyence: Survey Reveals More Than 90 Percent of IT Managers Cannot Prove Network Compliance With Government Regulations: Survey Indicates ITIL Best Practice Projects Accelerating Due To Compliance Requirements ...

State of the PMO Study Launched

Interthink Consulting and Projects@Work are conducting a comprehensive research study on current PMO practices.

All those participating in the study, which consists of 55 questions, will receive a detailed copy of the research findings on May 31st, 2006. The study covers the following areas:

• PMO services and offerings
• PMO implementation approaches
• PMO size, scope and complexity
• Challenges and critical factors for PMO success
• Perceived value and impact of the PMO

To learn more about the study, to participate, or to see the results of the last study they did in 2002, read on...

Interthink Research

Mining for Talent; Fielding a Good Project Team

Tom Peters has been blogging about a book by Dennis Littky called The Big Picture: Education is Everyone's Business. Now I can see why. I purchased the book and it's revolutionary. Littky is a pioneer in the education industry and has achieved startling results with his focus on students as individuals. But the book isn't just for those in education, it's for anyone in a leadership role.

Much like the theme of How Full is Your Bucket, the subject of my previous post, it focuses on finding the hidden talents in the individual, and not just basing decisions on grades, scores, or averages. I'm still reading it, so I'm sure I'll be posting more on it in the near future, but so far it's a very enlightening book, and makes so much sense it's scary.

I've always subscribed to this philosophy, as I feel that fielding a good team in business is no different than fielding a good team in sports. You need to find people's desires and areas of talent (nearly everyone has some), encourage them to build on that talent, and put them in the right positions to exercise that talent. Combined with positive reinforcement (which elevates their self-confidence), they will shine as individuals, and if well-matched with others (team dynamics), the team will shine as well.

I recently saw yet another source that supports this theme of "mining for talents." I just subscribed to Leadership Excellence magazine (and in fact have been asked to submit an article to them, which will most likely appear in their April issue). On their website, I saw this quote from leadership guru Warren Bennis...

“It became clear to me that to understand Drucker’s philosophy of management, you need to know his philosophy of education. In fact, they are one and the same: Honor individual differences. Take people as they are. Don’t attempt to change or manipulate them to be like or to become somebody else. There is no one right way. Organizations are as much learning environments as they are socially useful institutions established to produce goods. At their best, they make available sufficient roles where individual strengths can contribute to productivity and where individual weaknesses are irrelevant. There is virtually no such thing as an ineffective worker, only a worker whose areas of competence are inappropriate for a particular role.”

—Warren Bennis, consultant,
Leadership Excellence, January 2006

Very inspiring words.

Want Project Results? Use Plenty of Praise

We've talked quite a bit on PMThink about the dangers of criticism and the negative impact it can have. The flip side of that is the wonderful results that repeated praise and positive reinforcement can have.

A few years ago, Tom Rath and Donald Clifton drew upon their years of research with the Gallup organization to develop a groundbreaking book called How Full is Your Bucket?, a New York Times #1 bestseller. In the book, they show indisputable evidence that when people are criticized, they end up producing the same as if they were totally ignored, yet when they are praised, productivity goes up dramatically.

In one example, students were given tests over a period of five days. One group was praised in front of their peers for what they did right. Another group was criticized in front of their peers for what they did wrong. A third group was put in a different room and given no feedback. The improvement results after 5 days were:

Praised - 75%
Criticized - 19%
Ignored - 5%

Additional studies showed that positive emotions improved overall health, transformed people, built more resiliency during difficult times, and produced optimal functioning both individually and as a group.

Most importantly, the book talks about the power of individualizing praise; recognizing what is meaningful to the specific individual, since each person has different motivators.

The book goes on to show how the same results hold true whether at home or in the office, with relationships with a spouse, children, or colleagues. So, next time you're leading people, remember the old adage, "Catch 'em doing something right."

Keeping Technology In-House Pays Off

A little over a year ago, JPMorganChase canceled its $5 billion outsourcing contract with IBM Global Services and brought its technology operations back in-house.

Says CIO Austin Adams:

"The decision to cancel the outsourcing deal wasn't driven entirely by cost savings... It was about our belief that we wanted to be more involved in every aspect of our business, and technology is a significant part."

And this belief has proven true. The bank is now seeing cost savings from better leveraging of software and hardware deals, and is seeing excellent operational efficiencies as well.

For project managers, this can bring additional benefits, such as having the right know-how in house, and avoiding the need to manage across multiple organizations.

In general, while appearing to be a silver bullet, outsourcing can have negative effects on morale and can damage communities as well. Furthermore it doesn't always bring the cost-savings it promises and puts the organization at the mercy of its vendors. Collectively, there's no telling what the long-term impact will be on the United States.

Companies such as Toyota practice long-term thinking, pride of workmanship, and remain community-focused, with good results. Cheers to JPMorgan Chase.

Here's the full article from Baseline Magazine. There's also an interesting sidebar called "Can You Outsource Project Management?"

JPMorgan Chase Retakes Control of I.T.

Scheduling is Dead, Bring on Chaos; So Says A Foremost Scheduling Expert

Project scheduling has no future whatsoever, and this comes from no less than Murray Woolf, the Managing Director of the PMI College of Scheduling's Scheduling Excellence Initiative (SEI).

This article, posted at PMForum is one of the better ones I've seen in a while (possibly because it's aligned with my philosophies). The premise is that, in today's day and age, the industry is headed toward more of a "give the people objectives and let 'em work it out" philosophy, which is completely opposed to the old "build a detailed schedule and make 'em follow it" mentality.

This is completely aligned with a value system that I've long subscribed to (and had posted on here at PMThink), and that is: To foster passion and accountability, we need to provide:

- Autonomy and Trust
- General Guidance and Principles
- Support and Removal of Barriers

This, of course, must be supported by having clear objectives.

Through all this, we also need to send a message that results are more important than blindly following rules. This doesn't mean that we needn't have processes, as people need a system in order to achieve consistent results; merely that we should give project managers the freedom to bypass certain processes if it's necessary to achieve good results. "Good" is the operative word here. Just meeting a date is not "results."

I believe that Mr. Woolf's article endorses my approach, and acknowledges that the following is where the future of project management is:

More organized chaos than it is controlled components.
More project facilitation than it is project scheduling.

This doesn't mean that planning isn't important either; merely that the act of planning shouldn't be confused with rigidly following the plan/schedule. As Dwight D. Eisenhower said, "Plans are nothing; Planning is everything."

As it is, and as Mr. Woolf rightly points out, project managers and "schedulers" are so bogged down in details and administrivia that they become more project reporters than managers. We need to observe where the future is headed and free project managers from the burdens of such fruitless details.

Instead, their efforts should be spent on adequate preliminary research, communication, facilitation, risk awareness, and other traits necessary to effectively manage a project.

For the full article, which I highly suggest reading, see Mr. Woolf's paper below...

PMFORUM, Connecting the World of Project Management - Papers

Project Failure Rates Soar; Blame the Estimates

How many times have you heard these statements from management?

"I didn't call this meeting to discuss whether we can meet the deadline. We're here to decide how we're going to meet it."

"What we've got to do now is to roll up our sleeves and do whatever it takes to get the job done!"

"I agree with you in principle, but this project is so urgent that we just don't have the luxury of doing it right."

These statements are all referenced in an excellent article by Conrad Weisert, titled "The Burden of Proof in Estimating." He attributes it to the fictional "Management By Cliche Handbook," but the statements and the poor results they usually lead to are anything but fiction.

With project failure rates not much better than they were five years ago, this article validates what I've been saying for a while: Most projects that run over budget do so because the original unrealistic estimate was provided under pressure from management.

It's critical that a project manager defend the right plan and negotiate tradeoffs in scope, time, or cost accordingly. Perhaps the best approach, and most consistently effective one, is to timebox the scope, aiming for realistic, phased deliverables.

It's also important when submitting a budget estimate, that the correct level of accuracy is stated (i.e. plus/minus 25%, or whatever is appropriate). PMI offers some guidelines, but those are just that---guidelines. A detailed bottom-up baseline estimate should only be provided after a detailed schedule is developed.

The bottom line is this. Weisert has a very simple principle: "In assessing the credibility of a project estimate the burden of proof falls on those who claim it can be done." This is sage advise. For the full article, read on...

Burden of Proof in Project Estimating