Align IT and Business on Critical Projects

Leadership alignment sessions, daily status reports during critical phases, and workforce collocation are all valuable techniques for aligning IT and the business on important IT projects and ensuring expectations are met. ...

... "one of the first things that he and other project leaders did was to collocate 20 business managers with 40 IT workers to help them stay in sync on the project's products and timetables. " ...

Via Computerworld: Customer Expectations on IT Projects

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

Customer Orientation: Friction-Free Process

Guy lists ten mistakes that add friction to the user adoption process, that highlights a lack of customer orientation. We've all been there before. Check it out. ...

... "... compilation of silly and stupid ways companies are hindering adoption of their products and services. ... " ...

Via Guy Kawasaki's How to Change the World Blog: The Top Ten Stupid Ways to Hinder Market Adoption

Digital Lifestyle: Cavs Lead The Way

Cavaliers push limit of paperless, digital customer experience for ticketing in sports events. Of course, some resistance is inevitable. ...

... "While some major league baseball teams have introduced electronic ticketing, the Cavaliers have taken it a step further, providing a completely paperless transaction. " ...

Via Yahoo! News: E-ticketing

Project Management Imperatives: Ten Keys to Success

Someone recently asked me what I felt the critical success factors were for any project (i.e. what were the top "must do's"). Although I can think of many more, here were what I felt were the top ten:

1) Get the roles right. (Insure accountability; use a RACI chart or Responsibility Matrix so roles are clearly defined. Insuring people understand their commitments up front will avoid problems later.)

2) Get the goals right. (Make sure all the key stakeholders agree on the goals. I've seen more projects go wrong for this reason than any other. Time spent here will pay dividends later.)

3) Get the current scope right. (I say "current scope," because change should be expected. Projects by default contain change because they are unique in nature. It's not whether you'll experience change, it's how you analyze the potential impacts and manage the approval of the change that counts. Agreed-upon and approved scope changes are perfectly acceptable, with one caveat: It's often wise to set a limit to the number of times scope can be changed for the current product release, and defer some changes to a subsequent release, else value gets delayed.).

4) Obtain commitment from the business, customers, and other stakeholders as to their part in the success of the project. (Many projects derail because the customer doesn't live up to their side of the bargain, doesn't understand their side of the bargain, or some other necessary constituent isn't cooperating for various reasons. Obtain the right commitment up front, starting with senior management.)

5) Determine the critical success factors and risks. (Critical success factors and risks go hand in hand. Many people ignore this or sweep it under the rug, and accept any related risks as a given. The critical success factors will identify related risks and help set expectations).

6) Set expectations. (This is frequently overlooked and is a key cause of failure. The sponsor, customers, and anyone impacted by the project must be given realistic expectations for what is needed from them, how long the project will take, how much it will cost, what the uncertainty factor is, what the available resources are, and anything else necessary to avoid surprises and/or an under-equipped effort.)

7) Beware of conflicting directives. (I call this the "Robocop Syndrome." In the film, Robocop, the titular robotic policeman goes on full tilt when he encounters directives that conflict with his primary directive. I see this happen often in organizations where a project sponsor demands something that is in conflict with other key stakeholders' wishes and/or top organizational directives. This could be covered under "goals" or "expectations," but it's so important that it warrants its own point. The project manager must head this off at the pass before the project goes down a rat hole it won't recover from.)

8) Plan Collaboratively. (The act of planning is not an isolated exercise. It's a collaborative exercise and should be done with the project core team and subject matter experts via some sort of facilitated brainstorming session---possibly with sticky labels on a wall.)

9) Beware of unilateral and granular "one-size-fits-all" solutions. (This is often ineffective, both as a project management methodology and a process implementation policy. Look at the big picture, and the potential variations. Keeping a framework high-level can allow for greatest flexibility and adaptability. Aim for principles over rules wherever possible. Use rules when safety is involved, regulatory requirements exist, or exact accuracy is needed---per Marcus Buckingham's guidelines from "First Break All the Rules.")

10) Don't let rank set you off course. (Often, a senior manager pulls rank and makes requests that are either detrimental, unwise, or in direct conflict with organizational goals. When this happens, see rules 6 and 7. It is the project manager's responsibility to set the right expectations, warn of potential risks, and head off potential conflicting directives at the pass.)

There it is. My list of "must do's." Project management isn't rocket science. In fact it's not a science at all. It's more of an art. Hopefully, the guidelines above can serve as a useful palette.

Project Proposal: Pitch the Business Case

Guy's partner, Bill Reichert, offers sage advice on pitching business plans to venture capitalists, investors. These same principles apply to project proposals for your investment portfolio. A concise, yet informative, pitch makes a governance session efficient and effective. ...

... "Pitching is about understanding what your customer (the investor) is most interested in, and developing a dialog that enables you to connect with the head, the heart, and the gut of the investor. " ...

Via Guy Kawasaki's How to Change the World: The Entrepreneur's New Year's Resolution: I Will Fix My Pitch

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

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) ...

Right Brain Project Management

I recently re-read Daniel Pink's book, A Whole New Mind. I noticed now that it's out on paperback, the subtitle changed from "Moving from the Information Age to the Conceptual Age" to "Why Right-Brainers will Rule the Future."

The latter is probably more accessible and gets to the heart of the book. The premise is that with more technical jobs being eliminated due to automation and offshore outsourcing, we're left clinging to the one thing that computers and offshore resources can't replace---the soft skills. It's not that offshore people don't have the capacity to do this, it's just not effective from a remote location.

The books specifically outlines Six Senses that are now required to compete in today's market (I'd add that these were always needed for effectiveness, but now it's a necessity for career survival). The Six Senses we need to build are:

1) Not just function, but DESIGN (the WOW factor)
2) Not just argument, but STORY (i.e. we need to be storytellers to make a good case)
3) Not just focus, but SYMPHONY (i.e. synthesis of complex relationships vs. heads-down analysis)
4) Not just logic, but EMPATHY (incidentally, the key trait in Daniel Goleman's Emotional Intelligence)
5) Not just seriousness, buy PLAY (fun leads to employee satisfaction, which leads to customer satisfaction and profits. Therefore, Fun=$ !)
6) Not just accumulation, but MEANING

FACT (not from the book, but relevant nonetheless): Per a recent management forum of 70 business schools, many of them are requiring less quantitative courses and more leadership courses. Also, a number of organizations are now recruiting design students instead of MBAs.

The key is that the logical, sequential left-brain stuff is still necessary, but we need to compliment it with the more contextual and feeling right-brain skills. With communication being 90% of a project manager's job, I'd say this directly applies to project managers as well.

Below is a link to Pink's book on Amazon...

Amazon.com: A Whole New Mind: Why Right-Brainers Will Rule the Future: Books: Daniel Pink

User Interface Projects: Increase Cycles of Learning

In supply chain management, the concept of faster turns translates into lower inventory and more responsive to customer needs. In user interface design, faster turns leads to more robust customer experience. However, the path there can challenging as user feedback guides the releases through each cycle. Netflix and Google are profiled. ...

... "Since only 1 in every 5 to 10 ideas work out, the strategy of constraining how quickly ideas must be proven allows us to try out more ideas faster, increasing our odds of success. " ...

Via User Interface Engineering: Link

The Customer Experience: Advancing the Brand If Done Right

Aspect launches interesting campaign that reemphasizes a focus on the customer experience at the call center, where strong opinions are formed about companies that rely on that channel for sales or service. With today's technology, the power has shifted to the consumer. ...

... "Independent research demonstrates that each unhappy customer will tell 13 to 15 people about their bad experience with a company – far more people than they will tell of a good experience. When factoring in the power and reach of the Internet, one bad experience could have a significant impact on a company's brand, and ultimately, the bottom line. Aspect Software has coined this age of the activist consumer that uses emerging web technologies -- blogs, chat rooms, and wikis -- to air both their praises and their grievances about their experiences with corporate brands, Power Shift 2.0. " ...

Via Aspect Software: Aspect Software Unveils Global Campaign to Address Phenomenon of Power Shift 2.0 ...

CRM Project: Old Hat?

Interesting article explores current evolution of CRM projects, which have been bolstered by on-demand-software, integrated view of the customer, efficient training delivery options, and referenceable value benchmarks. ...

... "As far as business cases go, start early and establish your baseline before you start seeing a return from the tightening-up of the business processes in preparation of the application installation. " ...

Via TechLinks: Hal Harz on The State of CRM ...

Customer Satisfaction: Customization through Specialized Ecosystem ...

Specialization and ecosystems are a means to differentiate a product in the marketplace. Stock Toyota Scions are highly customized to meet the customer's requirements through an ecosystem of specialized body shops. In business services, an ecosystem of specialized providers could customize any stock IT product to the customer needs, while the manufacturer (software company) focuses on production. Will the information technology service-oriented architecture enable mass customization in the IT space? ...

... "Customisation, the idea that by a fully connected and interoperable business world it would be possible to deliver exactly what was wanted by connecting the consumer directly through the manufacturing or services ecosystem. " ...

Via CTO Blog: Unavailable Soon or no two are ever the same!

Einstein Project Management Tip #4: Think Value

And so we continue our series on project management tips from Albert Einstein. Here's another...

"Strive not to be a success, but rather to be of value."

This sums up perfectly the problem with most projects today. They focus on "success" without fully defining what success means. Project managers and PMOs track schedule and budget metrics. Then, at the end of the project, some capture customer satisfaction, almost as an afterthought.

What really needs to happen is to insure value to the customer, and this usually goes way beyond being on time and on budget. We spoke about the need for clear goals. Surely that's part of it. We also need to deliver in small, frequent iterations to provide the quickest value and get more immediate customer feedback.

Customer satisfaction should be measured and tagged as an index throughout the life of a project, just as Earned Value uses indices to track cost and schedule performance. This allows course correction to be made in areas such as goal clarification, communication, and other areas needed to provide good value.

And when the product has been delivered, be sure that the customer can maximize the benefits of the product through proper training, tips & techniques, next steps, or any other items that will help them get the value expected.

These are the very items I've attempted to address with my Service-Oriented Project Management (SOPM) framework, with its four phases of Understand, Prepare, Iterate, and Transform (UP-IT).

More Einstein tips coming soon...

Project Management Winds Are Changing

There's an excellent article by Betsy Morris in the current issue of Fortune Magazine about how the Jack Welch way of winning is---dare we say---a thing of the past.

How is this relevant to the project management field? Well, for one, it means recognizing the winds of change in the industry, and how projects are selected, promoted, and managed. Above all, this impacts program and portfolio management. Particularly, note four trends in management thinking:

Innovation:

Let's take Welch's old rule of being number 1 or 2 in your market (or else fixing, selling, or closing the business). The new rule is to find a niche and create something new. The article uses CocaCola as an example of a company that was basking in their glory as number 1, but eventually realized (although it took a while) that energy drinks and bottled water were about to pass them. As the article points out, energy drinks "are now expected to outearn every other category of soft drink within three years." Parhaps marketing guru Harry Beckwith said it best in Selling the Invisible when he said that it's fine to do something 10% better until someone else comes along and does it 110% different.

Customer-Centric Management:

Welch started a whole movement of focus on the shareholder, which led many organizations to ignore the future amid pressure to appease shareholders and "make the numbers." Now, organizations realize that the customer is king. The article references several companies that have made this realization, and the trend is heading in that direction. After all, statistics show that even a minor improvement in customer retention leads to a major increase in profitability. The days of short-term thinking may be finally coming to an end.

Reinvention vs. Incremental Change:

Since it seemed Jack Welch could do no wrong, everyone imitated whatever Jack did---and Six Sigma was no exception. The problem is that, according to the article, of the 58 large companies that announced Six Sigma programs, 91% have trailed the S&P 500 since. As the article points out, that's mostly because Six Sigma is intended to "fix an existing process," whereas innovative companies that developed new and unique products (or reinvented their business) took the lead.

Stop Ranking Your Players; Inspire Passion:

Once of Welch's most controversial systems was to constantly rank his employees and regularly weed out the "C" players. But companies have had difficulty getting productivity and innovation out of "increasingly disenfranchised employees." In the article, Christopher Bartlett of Harvard Business School put it best:

"People don't come to work to be No. 1 or No. 2 or to get a 20% net return on assets. They want a sense of purpose. They come to work to get meaning from their lives."

Side editorial: For the "enlightened" approach of finding the hidden strength in everyone (something Peter Drucker always suggested), read Marcus Buckingham's Now Discover Your Strengths (or any of his books for that matter). Or read Dennis Littky's The Big Picture: Education is Everyone's Business. I assure you, you'll never be the same.

Meanwhile, I highly recommend the article (the link is below) for those looking for the latest trends in management thinking, and who want to remain one step ahead.

From a project management perspective, the handwriting is clearly on the wall. The traditional "execute to a set of deliverables" approach won't cut it. Today's project manager needs to be thinking about things like innovation, customer focus, business transformation, business acumen, change leadership, and team passion. Those focused on merely schedule, budget, and scope will soon be dinosaurs.

Fortune: The new rules - Jul. 11, 2006

Agile Project Leadership ...

Agile network sustains mission with election of new board members. I like the relentless focus on value and all of the core principles. Worth a quick check. It's valuable to anchor back to principles periodically. ...

... "Agile Project Leadership Network (APLN) New Officers and Board Members: The Agile Project Leadership Network (APLN), a partner non-profit organization focused on making people great project leaders by focusing on value, teams, context, customers, individuals and uncertainty also named several new officers to its roster. APLN was founded in 2004 by individuals active in writing about, practicing and evangelizing the movement toward fast, flexible, customer value-driven approaches to leading projects of many types. Although the organization is separate from the Agile Alliance, the group's aim is to work closely with the Agile Alliance to help them become better Project Leaders. " ...

Via Yahoo Finance: Agile Alliance and The Agile Project Leadership Network Announce New Board Members and Officers for 2006-2007 ...

The Distributed PMO: Lessons From Strange Places

I've read two pieces of information lately that couldn't be more different, and yet they both got me thinking about the benefits of what I call a "distributed PMO."

First, as I mentioned last week, I had read about Ken Kizer's magnificent transformation of the formerly abysmal Veteran's Health Administration (a poorly run group of hospitals mired in government hierarchy and bureaucracy). He established an network of regional "hubs" (what he called Virtual Integrated Services Networks, or VISNs - pronounced "visions"). Each VISN was itself a network of partnerships, associations, alliances, hospitals, etc. that worked together for the good of the customer.

The VISNs had the benefits of standardized quality with local presence. Decision-making was moved from Washington HQ to the VISNs, who were closer to the action than Washington HQ could ever be.

The role of headquarters became one of support, guiding principles, consulting advise, information services, and change leadership. Headquarters drives behaviors that benefit the overall structure.

Forms and approvals were reduced to a bare minimum. A relentless focus on the customer/patient (one of my battle cries, as most of you know) now guides all decisions and research.

If this isn't a good model for a PMO, I don't know what is. If project managers and functional experts (each who rely on one another for success) operated in various "regions" and/or functions (close to the action), and the PMO's role were to provide (and I repeat from above) support, guiding principles, consulting advise, information services, and change leadership, more PMOs would become a valued and integrated part of their organization.

And if the focus were on reducing forms and bureaucracy, helping project teams be successful, and improving the customer experience (as opposed to an internal focus on merely schedule and budget metrics), PMOs might find themselves more popular as well.

Incidentally, this also happens to mirror the Toyota organizational model.

The idea of a distributed, integrated network isn't unique to business. It even happens in nature (here's where the strange part comes in). I was reading about a giant sea creature, larger than a blue whale, called a Giant Siphonophore (Praya sp.). The creature (yes, this is true, folks) runs 130 feet long and is actually made up of many other life forms, each having its own specialized role that works to service the whole entity, yet is unable to exist on its own. In other words, the Giant Siphonophore is a "colonial life form." As I read this, I was again reminded of the concept of a virtual, yet integrated network.

Yes, I actually make these odd connections, but ideas can come from anywhere. By the way, the creature can be seen in the IMAX film, The Living Sea (available on DVD). Here's more info on the colonial nature of the Giant Siphonophore and it mutually dependent parts. Food for thought.

ITIL Business Case ...

Evergreen offers whitepaper on the business value associated with ITIL implementation, with benefits seen in operational efficiency, customer satisfaction, and risk minimization. ...

... "The white paper references a number of data points taken from current research and enterprise IT process improvement case studies consistently documenting a 20-40% reduction in the effort required for ongoing IT operations, powered by the implementation of ITIL process improvements. The same research clearly links ITIL with strategic gains in customer service quality, accuracy and efficiency and IT risk and compliance work. The development of an ITIL strategy is also discussed and an incremental approach is recommended, one which starts with small steps but shows measurable gains quickly. " ...

Evergreen Systems Releases White Paper on Building the Business Case for ITIL ...

Inverse of ITIL Compliance Described ...

Description of service desk that fits the "inverse of ITIL" performance capability. George Spafford shares experience of what not to do and what could be better. This poor level of service is pretty common, not just in IT service desks, but especially acute in retail businesses. Good customer service is a differentiator, and it is not hard to differentiate yourself in that space, given the overall poor performance in many industries. ...

... "From an ITIL perspective, the Service Desk (SD) function is a vital one. It should serve as the single point of contact with customers and users to collect and distribute information both reactively and proactively, plus it should own the incident tickets to make sure they are properly managed. " ...

Inverse of ITIL Compliance Described: Via Datamation: Customer Disservice

For Successful Projects, Think Hospitality

OK, I'm still thinking about the Bahamas. One thing I couldn't help but notice while I was there was a huge project that Cable Beach Resorts is undertaking, which will combine the Wyndham, Radisson, and Nassau Beach resorts into a sprawling mega resort of "sister" hotels with an integrated waterscape to compete with Atlantis.

It began as an $85 million project, but is now estimated at $2 billion (not sure of the reason, perhaps scope creep, surprise costs, or other unknown factors, but more likely this began as a joint renovation effort and evolved into a more cohesive whole as they saw the potential). However, what struck me is the way that they're doing it in phases to minimize the impact on guests. For instance, at the Radisson, where I stayed, they'll do one wing at a time, and during the interim will allow guests to use the facilities across all three resorts. In addition, they communicated heavily to travel agents, the media, and current guests.

It just reinforced to me that all projects, regardless of industry, should be treated as hospitality projects, with customer impact and communication a key part of the plan (and more than a little excitement and fun thrown in for good measure). Just some food for thought.

PMO Success Story: A.G. Edwards Case Study

There's an excellent article in CIO Magazine this month showing how A.G. Edwards reinvented its PMO to bring their projects to an 88% success rate (from about 50% originally).

Some key lessons:

• They created a 25-step project management high-level framework of just the high level activities common to all projects. They didn't inflict a detailed application development methodology and left the "how" flexible, as long as the "what" was satisfied. At a more detailed level, they used Primavera for project tracking and dashboard metrics.
  
• They provided leadership training to boost the confidence of their PMs
  
• They moved the project managers from the PMO to the functional areas to encourage collaboration and better align the PMs with the business.
  
• They offered project planning services to assist the distributed project managers with using the new framework effectively (allowing them to use the planning tool of their choice, be it Excel, MS/Word, or a whiteboard). The 25 framework touchpoints, however, are common to all projects for cross-project comparison purposes (I assume enabled in Primavera).
  
• They redefined "success" as "projects that deliver business value." This gives customer satisfaction and business value even greater priority than being on-time and on-budget (note: they still improved their schedule and budget statistics anyway).
  
  This is the essence of the new model and bears repeating. The customer defines success. Under this model, it's quite possible to have a project that is late and over-budget and seen as a raving sucess.
  
• They tirelessly met with stakeholders in individual and group settings to offer the benefits and ask for their support. They used a subtle soft-sell approach with the "bad actors."
  
• They first involved the PMs receptive to new ideas as part of a pilot and them used them to "spread the gospel"
  
• They measured success rates and publicized them in quarterly reports to senior management.

These are all powerful and valid ways to make a PMO successful, and are philosophically aligned with the Service Oriented-Project Management (SOPM) model I've been developing. In this case, these changes collectively served to boost IT's credibility at A.G Edwards significantly.

Here's the full article. Don't miss the sidebar "8 Steps for Improving Project Management."

When Failure Is Not an Option - Editorial - CIO

IT Strategy: Customer Focus SOPM ...

Marc Puich discusses the opportunity for information technology in the biopharmaceutical industry, advocating a simplified enterprise application architecture and a gradual, disciplined approach to operations excellence. I especially like his thoughts on customer focus and feel this spirit should be reflected in the principles of the service-oriented project management methodology that we are developing. SOPM should be customer-centric and its critical path should focus on the essential deliverables for customer success. ...

... "Begin with the customer. Developing an IT strategy should begin with an external focus. This process requires taking a critical look at what functionality is truly necessary to support your customer, versus what would be nice to have. The goal of a system is not to remove people from a process, but to provide the customers with what they need. " ...

Via BioPharm International: Operations Excellence: Perfecting IT Management System Selection for Biopharmaceutical Organizations - Proper application of an IT system can be a critical component to driving efficiency and reducing waste ...

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.

Business Transformation Project: Information Technology Component ...

Financial services company embraces the cultural and organizational change necessary to drive $50MM business transformation in customer service and align information technology project(s) as a component of that initiative. ...

... "Explaining that the banking group is currently in 16 countries and 12 jurisdictions in the Caribbean, Ramano emphasised that the initiative is not an IT project, but rather a business transformation initiative of which the information technology is a major component. " ...

Business Transformation Project: Information Technology Component: Via Advocate: RBTT recast initiative: Putting customer service at the helm ...

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.

Business Process Reengineering Project: Assessment Guide Reference ...

Here are sample screening criteria from GAO guide, when considering whether a business process reengineering project should be