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 undertaken. ...

... "Is the process of strategic importance to the agency's mission? Does the process urgently need dramatic improvement in order to meet the agency's own performance goals?

Is there a high level of customer and/or stakeholder dissatisfaction with the process (quality, timeliness, cost)? Does the process have a long cycle time with many sequential activities, multiple hand offs, checkpoints, and significant waiting time between work steps (e.g., processing a benefits claim)?

Did benchmarking show that other organizations can do the same (or analogous) process much better? Is the process highly dependent on information, so that information technology might be used to speed the work flow, collapse work steps, and improve real-time decision-making? " ...

Business Process Reengineering: Assessment Guide Reference: Via GOA: Framework Part A

Personal Value Proposition: Assess Your Business Impact ...

Nice article, by Pete McGarahan, challenges the reader to assess how they contribute value to an organization and be accountable for their future by taking risks, learning, and owning their personal development. Quick and worthwhile read ...

... " ... a business mentor once asking me, What's your value proposition to the organization? I was taken aback by the question and began rattling off what I did for a living. He quickly stopped me and said, No, Pete, what value do you provide to the organization on a daily basis? " ...

Personal Value Proposition: Assess Your Business Impact: Via CCN: Being the CEO of You (PDF) ...

PMOs; Where's the Value?

A contributor to eProject's eLounge mentioned this excellent article from Chief Project Officer. It's written by Tom Westcott, founder of Project Solutions Group. Several years ago, I saw him speak on scheduling techniques at the PMI Delaware Valley Chapter's Annual Workshop, and was very impressed with his dynamic style and pragmatic approach.

In the article, Westcott talks about how PMOs must demonstrate value if they are to survive, and offers some good tips on how to do just that. Specifically, he says they must create strategic alignment, deliver real value, and communicate frequently.

Here's an excerpt on what he has to say about delivering value:

PMOs must deliver value to survive. Value is not templates, tools, methodology, processes, training; these are means to driving value. Value is gaining efficiencies, achieving cost savings, increasing customer satisfaction, reducing time-to-market, increasing revenue and profit, reducing deficits, or increasing competitive advantage. Too many PMOs wrap their whole mission and existence around the services they provide instead of their impact on the business. Executives buy value.

Too many PMO directors are former project managers who see their role as project management evangelists. This
leads to a myopic view, and often they are ill-prepared or unable to work strategically with executive management. PMO directors need to speak and think in business terms, financial and organizational. Nix the "project-management speak." How does this project benefit the organization and support our strategy? And how can we get it done as quickly and inexpensively as possible? That's what they care about.

For the full article, read on...

Chief Project Officer: PMO or Bust?

Innovation and Project Management - Part 3 of 3

This is a continuation of Part 2, and shows how Tom Kelley's The Ten Faces of Innovation is living proof that innovation and project management are not mutually-exclusive, and in fact, must coexist for true success.

In Part 1, we talked about the Learning Personas described in Kelley's book (the Anthropologist, the Experimenter, and the Cross-Pollinator). In Part 2, we discussed the Organizing Personas (the Hurdler, the Collaborator, and the Director). Now we'll examine the final batch of personas, The Building Personas. Again, these are all adapted from Tom Kelley's book, which offers much more details and many real-life stories to illustrate these personas in action (and no, I don't get commission).

The Building Personas

7) The Experience Architect – Designs the customer experience, beyond just the functionality of a product. Comes up with new and creative ways to awe the customer, yet with the same basic product functionality. An example is Cold Stone Creamery, which creates an entertaining experience where the server mixes ice cream with any number of desired toppings on a slab of cold stone. The servers even put on shows. [my added comment is that The Experience Architect can learn from observing others, even in other genres, and as such can gain from the “Cross-Pollinator” and “Anthropologist” personas.]

8) The Set Designer – Creates a fun and vibrant physical working environment that can spark creativity and collaboration. Allows employees great latitude in their personal work spaces. Avoids dull, repetitive spaces. Creates formal and informal public spaces where people can collaborate and brainstorm, with all the appropriate supplies and accommodations.

9) The Caregiver – Anticipates customer needs before, during, and after the engagement, and goes above and beyond normal expectations. Makes it easy for the customer to select the right services, provides useful and quick information when needed, insures easy accessibility by the customer, and builds lasting relationships with the customer.

10) The Storyteller – Builds internal morale and external awareness through compelling stories and case studies that reinforce key values or traits. Builds “corporate legends” that get passed around. Not “spin doctors,” the storytellers get their stories from first-hand accounts from customers or employees. Storytelling builds credibility, unleashes people’s emotions, helps teams bond, and generates lessons learned.

Well, that concludes my summary of Tom Kelley's The Ten Faces of Innovation, and its applicability to project management. As you can hopefully see, what project manager wouldn't benefit from these learning, organizing, and building personas that can lead to a better customer experience, a more satisfied team, and a memorable result?

Sure, we can (and should) still define the scope of the project, manage changes to the agreed-upon scope, and use project scheduling and budgeting techniques (we don't want to throw the baby out with the bathwater). But we can take our projects to the next level with a strong dose of innovation, and these personas are as good a way to do that as any.

SAP CRM Projects: Barriers Acknowledged by SAP ...

In this article, SAP leader shares lessons-learned with SAP CRM implementation: the closer you get to the customer, the more different the requirements ... CRM software needs flexibility at the customer interface ... enterprise offerings are not flexible ... without early wins in the sales force and front-office, the workforce satisfies its requirements with other tools. ...

... "For many SAP customers, CRM adoption was scheduled in the second and third phases of an ERP project and by that time, customers were either worn out or not willing to undergo system disruptions ... " ...

SAP CRM Pojects: Barriers Acknowledged by SAP: Via SearchSAP: SAP acknowledges barrier to mySAP CRM implementations

Collaboration and Openness Business Model ...

In continuation with previous post on collaboration and openness, IBM releases study that supports the business model for transparency and collaboration to drive innovation and, ultimately, revenue growth. ...

... "In terms of how to drive innovation, the study found that 76% of CEOs ranked business partner and customer collaboration as top sources for new ideas. This greatly contrasts with internal R&D, which ranked eighth as a source for new ideas -- cited by only 14% of CEOs. Despite the value they place on collaboration, many CEOs are still in the planning stage. While 76% of CEOs say that collaboration is critical, 51% say their organizations currently collaborate extensively. Interestingly, this is exaggerated in emerging markets, where 73% are collaborating, compared to 47% in mature markets. The study also suggests a link between collaboration and financial performance. " ...

Collaboration and Openness Business Model: Via IBM: Majority of Global CEOs Plan Fundamental Change and Expect New Forms of Innovation to Drive Growth, According to IBM Study ...

Collaboration and Openness in the Participation Age ...

Sun CEO Scott McNealy challenges industry leaders to rethink traditional business models built on the global network economy, where transparency, community, and collaboration drive innovation into The Participation Age. ...

... "Sun believes the world is entering a new era - the Participation Age - where dramatically lowered barriers to entry, plummeting device prices, and near-universal connectivity are driving a new round of network participation. From blogs to Java, SMS messages to Web services, participants are forming communities to drive change, create new businesses, new social services and new discoveries. This growth in the network economy is fueled by sharing and collaboration among communities interconnected by technology and driven by purpose. Sun also believes that sharing and collaboration in the Participation Age will stimulate innovation to help all participants from across the world grow and prosper. " ...

Collaboration and Openness in the Participation Age: Via Sun Microsystems: Thought Leaders Prove Sharing Builds Economies at Sun Microsystems' Participation Age Event: Sun CEO Scott McNealy Pushes Industry to Rethink Business for 21st Century, Focus on Collaboration and Community ...



Addtional references on the intersection of transparency, collaboration, community, and innovation:

Via SAP: SAP Leads Industry Collaboration in Support of Enterprise Services: "For the first time, a community process in which collaborative business process innovation can flourish in an open and transparent forum will become the standard by which all enterprise services development is measured. The Enterprise Services Community Process is the only industry-driven method for defining enterprise services and is poised to become the preferred method for the SAP customer and partner ecosystem to achieve business process innovation through the use of enterprise services. "

Via The Future of Work Weblog: Distributed Work and Network Building Tools: "As work becomes ever-more-highly distributed, an individual's responsibility for maintaining his or her network of connections, both inside and outside his or her company, is increasing. Team members might be located in different geographic locations and timezones. They may only have come together for a short-term project or they might not even be members of the same company. ... "

Via Business Week: This Way To The Future: "Ultimately, innovation is about continually pushing back the boundaries of what is possible. The true genius of capitalism is that it provides economic incentives for sustained innovation. "

Fighting the Status Quo; A Lesson from an Education Reformer

Reading Dennis Littky's The Big Picture: Education is Everyone's Business has been very inspiring. Just as Littky challenges the status quo in the education system, we must do so in our organizations.

Here's a quote I especially like in the book:

"No matter how far you have gone on a wrong road, turn back"
- Turkish Proverb

I've listed 21 key points, paraphrased from the book, to illustrate how the same issues that face the education system apply to creating a learning environment in business...

1. Teach how to think flexibly, not that there's a right way and a wrong way for doing everything. It's worth noting that the best tennis players hold the racket the wrong way.
2. Create an environment that allows students the freedom to find themselves with the support and motivation of inspiring adults [leaders]
3. Teach students to fish; don't give them fish. Quote: "We have plenty of people who can teach what they know, but very few who can teach their own capacity to learn" - Joseph Hart
4. Use collaborative learning - i.e. "What do we think of this passage as compared to this one?" etc.
5. Teaching and learning are about problem solving. Put teachers and learners in the best possible environment for them to do this together.
6. Don't dismiss someone as "dumb in math" or "uninterested in science." Cater to their strengths [as Peter Drucker says, "Make weaknesses irrelevant" and pair people with complementary strengths if need be]
7. Don't measure education [or any kind of success] by the number of minutes a kid sits at a desk.
8. Remember the Three R's: Relationships (with teachers, community, parents, etc.), Relevance (to the students lives and passions - i.e. "what's in it for me"), Rigor (allow them to concentrate intensely in an area of their interest - build depth, not breadth)
9. Insure a shared philosophy among the principal and teachers [i.e. management]
10. Fix the atmosphere. Create an environment for learning. Fun, happiness, respect, kindness.
11. Build celebration into the culture. Celebrate often, for various occasions.
12. Know who really sets the culture of a school [or organization]. It's the senior students [middle management and vocal champions -- what Seth Godin calls "the sneezers" --those who can spread an "idea virus"]. Engage them in recreating the culture, and others will follow suit. You can't change the culture by holding a special assembly [or a meeting or a memo]
13. Never make rules based on the exception.
14. To build trust and respect, provide responsibility and decision-making to students, and control over their environment, tools, and learning
15. A culture can thrive and grow on its own stories. Every interaction helps build the culture.
16. Start with the student, not the subjects or classes. Quote: "One size never fits all. One size fits one." - Tom Peters
17. Use real world examples - or better yet, real projects. Students can tell when things really matter and when they're contrived. [so can business people learning project management]
18. Don't give grades. The real world is based on giving feedback and showing people what they need to do to improve. It helps students succeed. Grades are meaningless, subjective, and can destroy morale. Use a narrative instead. It's a tool to help learning, not evaluation for evaluation's sake.
19. Quote: "Nobody grew taller by being measured." - Phillip Gammage
20. Measure what counts. There is no one indicator of success that fits every student. Instead, measure how often a student talks to teachers about their problems [builds the right culture]; measure if parents agree the school is a safe place and that it views parents as partners [i.e. customer satisfaction]
21. Friends of change [6 C's] are: concentration (on your philosophy), commitment, conversation, collaboration, caring, conviviality

Project Management: Microsoft Office Live Beta Now Available ...

Office Live Beta is now available to support collaborative project management in a software-as-a-service model ...

... "the Microsoft Office Live Collaboration service offers small businesses password-protected online workspaces (intranets and extranets). Capabilities include customer management, project management, sales and marketing management, employee management, and company administration, as well as password-protected internal shared sites to facilitate collaboration among employees, customers, suppliers and other business partners. " ...

Project Management: Microsoft Office Live Beta Now Available: Via Microsoft: Microsoft Launches Beta Program for Microsoft Office Live Services: Internet-based services include free Web site, domain name and e-mail accounts ...

Why Projects are Late; The Top Six Reasons

Here are the top six reasons why projects are late and what we can do about it...

1) Unrealistic Deadlines - As we've reported here before, this is one of the most frequently overlooked reasons for late projects---and unfortunately, often the last thing people look at.

Solution: It's imperative for a project manager to defend the right plan and not give in to pressure to sacrifice good principles. If necessary, negotiate to time-box the project into multiple phases.

2) Customer/Partner Availability - I've seen numerous project managers over the years talk about the challenges they face keeping a project on schedule when they're waiting on a customer or business partner to do testing or sign off on some deliverable.

Solution: Set milestones, monitor progress, and raise an issue if the lack of availability will cause a delay. If necessary, negotiate a new project baseline---which may be quite appropriate if the customer and/or steering team agrees that a delay is acceptable.

3) Resource Availability - There's nothing worse than putting together a reasonable schedule only to have your key resources pulled off into different directions, but it happens more often than we care to admit.

Solution: Try to obtain full commitment up front for your resources' time. Even so, unexpected conflicts will happen. Same as #2 above, set milestones, monitor progress, and raise an issue if needed. Again, negotiation may be necessary, which can result in getting your resources back or in setting a new project baseline to accommodate the new priorities.

4) Uncertainty - Especially in the IT field, uncertainty is a given. At any time, unexpected circumstances may cause project delays.

Solution: Use rolling wave scheduling, planning the whole project from a high level, but only the nearest 90-day horizon in detail. Try agile approaches as well, aiming for prototypes and frequent iterations. Ideally, pilot the project, and aim for vertical rollouts (one group at a time). Build contingency into your schedule for known risks. Most of all, manage stakeholder expectations.

5) Management Decision - Sometimes, management makes a conscious decision to delay a project, either for strategic needs, changes in priorities, or any number of reasons.

Solution: If the delay is a management or customer decision, a new project baseline should be saved, with current metrics based on that. Note that it's also important to keep the original baseline, as that offers a different set of measures (mostly around organizational alignment).

6) Poor Estimates - Sometimes a project is late simply because tasks were underestimated or omitted from the schedule. Although this is not always the cause of project delays (and rarely the only cause), it tends to be the first one people look at.

Solution: Build experience and capture historical data by project category and activity. If the data isn't categorized it won't be useful. Create and maintain checklists of items to consider. Build project schedule templates. The most frequently overlooked areas in IT are: training, data-loading, cutover preparation, system network testing, adequate QA testing, and documentation.

Collaborative Thinking; The Project Manager's Challenge

Years ago, I read a wonderful saying by Antoine de Saint-Exupery, the author of The Little Prince. He said, "Life has taught us that love does not consist in gazing at each other but in looking outward in the same direction."

That saying stuck with me for some reason, and I was reminded of it again recently as I began to read an absolutely energizing book called Creating We, by Judith Glaser. The book carries the same basic intent as Saint-Exupery, except on an organizational level.

The basic premise is that in order to break through the typical silo thinking and toxic, fear-driven, autocratic environments that drive so many organizations today, one needs to get the players to focus externally on the customer, instead of internally at---or against---each other. Just take a look at this list from the book on why organizations fail:

• Lack of shared focus, shared purpose, and/or shared vision
• Lack of enterprise-wide communication
• Lack of organizational ambition and a strategic approach to getting there
• Lack of respect for others within the organization
• Failure to tap resources and inner talent, creativity, and responsibility
• Failure to break down the walls ("silos") between divisions
• Lack of team cohesion and failure to develop team agreements, rules of engagement, and decision-making processes.
• Failure to focus outside and see the customer
• Lack of hope and spirit; a punishing environment

Is this your organization?

Glaser, whose executive consulting company, Benchmark Communications Inc., has helped many of their A-list clients transform their culture from I-centric organizations to we-centric organizations, offers many compelling case studies and practical advice in the book. I highly recommend it to anyone trying to break down the silos in their organization.

For project managers, it's especially useful, as projects often require facilitating conflicting stakeholders and departments to some sort of agreement. Compounding the problem is that these people are often at higher levels in the organization. To address this, the book offers ways to facilitate we-thinking that are useful from any level in an organization, although ideally it should be driven from the top. For that matter, why not buy a copy for your senior executives (and no, I don't get commission).

Innovation in Project Management; A Lesson from Ford

Tom Peters blogged recently about Ford, Pixar and the new wave of innovation sweeping companies. Although he had a softer spot for what Pixar is doing, the main point was that innovation is the new world order. Operational excellence is out, as is short-term thinking and reactionary cost-cutting. Even GE is now all about innovation.

Just look at these enlightening statements in a recent announcement from Ford CEO, Bill Ford, announcing their renewed focus on innnovation...

Ford Motor Company stands for a far-sighted commitment to growth. We stand for a renewed focus on the customer. We stand for boundless innovation in every aspect of our business...

Here is what we will not stand for: incremental change, avoiding risk, thinking short-term, blocking innovation, tying our people's hands, defending procedures that don't make sense, and selling what we have instead of what the customer wants. In short, we will not stand for business as usual.

Going forward, our employee evaluations will include a section on innovation. We’re also going to design compensation plans that reward new thinking. And we’re going to create a way for employees to appeal a decision, even if they have an idea and the boss says no.

These are inspiring words. Don't be surprised to see this approach make its way into the project management field. Instead of taking a project charter and "executing well," enlightened project managers will encourage opportunity assessments, get their teams and management excited about new ideas and concepts (assuming they're not squashed), and attempt to try new methods.

We've been posting recently about Agile Scrum Project Management. That's just one example of something that's new and different, but will most likely not gain ground in traditional, conservative organizations.

Here's more from Bill Ford's presentation...

Innovation Acceleration: Innovation-Driven Vision: Ford Motor Company

Agile Project Management with Scrum

I have been wondering lately, what does agile really mean here?
This article says, Agile means responding to change - both technological change and changes in requirements perhaps due to customer demand and market opportunities.

It makes sense to me that this would be needed. The world is spinning much faster now and people expect content on the web, for example, to be relevant.

How does this differ from typical PM approaches? It has an answer there too...
-----
More traditional project management "command and control" approaches assume the relationship between the inputs and outputs of a software development process are stable and predictable and that the schedule of outputs will still be relevant by the time they appear. Scrum accepts the fact that things are going to change and takes an empirical approach.

In Scrum work is delivered in monthly "sprints". Each sprint delivers a single, usable piece of work called the "product increment". This product increment is immediately available for evaluation and use by the customer at the end of a sprint. Projects managed in a "command and control" style often have an infrequent release schedule. This can result in a gulf between customer expectations and reality. Scrum requires these predictable, frequent releases to ground customer expectations on demonstrated, working code rather than the false comfort of forecasts and reports. Short of an emergency, stakeholders aren't allowed to approach developers formally or informally with requests to do additional work during a sprint. This gives the development team enough stability to be able to complete a product increment without being distracted by the noise of external disruptions.
-----
Now that last part about not having stakeholders formally talk to developers is something that I try to enforce on my projects also. So, maybe it's not so different after all...to learn more visit:
ITWALES.COM - Agile Project Management with Scrum:

Project Portfolio Management: IT Business Management Solution ...

Touchpaper introduces new project portfolio management (PPM) system that drives IT business alignment. ...

... "Touchpaper has launched a new product portfolio underlining the company’s IT Business Management (ITBM) strategy and its vision for an ITBM enabled organisation where the IT and customer service departments measure themselves against the strategic and operational goals of the business. Aimed at commercial and government organisations, the Touchpaper ITBM suite is available through the company’s direct sales channels and via its international network of Value Added Reseller (VAR) partners. Many customers have already committed to the new Touchpaper ITBM solution including Hachette Livre UK Books Group, London Borough of Hillingdon, London School of Economics and Political Science, Newport City Council and Sanimed.

Specifically, Touchpaper’s ITBM suite can help deliver projects that drive business growth and value; meet customer needs and pre-defined levels of service; achieve governance and regulatory compliance; link business and IT strategies, plans and relationships; demonstrate the business value of IT; apply metrics to IT; budget and manage IT spending; foster change in business processes and manage risk. " ...

Project Portfolio Management: IT Business Management Solution: Via Touchpaper: Touchpaper Launches New Solution for IT Business Management ...

ITIL CRM Solution: Amdocs

Compucom leverages Amdocs ITIL-compliant CRM solution to provision services. ...

... "CompuCom Systems, Inc. has selected Amdocs CRM to help deliver support to its enterprise customer base. CompuCom Systems is a leading Information Technology (IT) managed services provider that offers IT outsourcing, application development, systems integration, and consulting, as well as the procurement and management of hardware and software. CompuCom provides outsourced 24-hour help desk support services to Fortune 1000 companies, as well as hardware and software repair services utilizing the company's 3,100 field service technicians. To deliver an enhanced customer experience, the company chose to partner with Amdocs. Amdocs has pioneered Integrated Customer Management (ICM) - a strategy designed to help service providers worldwide deliver a better customer experience by placing the customer at the center of everything a service provider does.

CompuCom is currently using several modules of the Amdocs CRM suite of products, including customer support, contract management and quality assurance, to manage the entire customer lifecycle from proactive remote device management through the delivery of onsite field services. Amdocs CRM consolidates all customer data onto a single, unified platform that can be integrated into existing back-office systems, allowing CompuCom to easily access customer information and increase response times to help desk requests. One of the main reasons CompuCom chose to adopt Amdocs CRM is that it is ITIL-compliant. Information Technology Infrastructure Library (ITIL) represents a set of best practices around the support and delivery of IT services, including guidelines surrounding customer service and service management implementation, designed to align IT with business objectives. " ...

ITIL CRM Solution: Amdocs: Via Amdocs: Amdocs Expands Partnership with CompuCom Systems to Deliver an Enhanced Customer Experience to CompuCom's Enterprise Customers

Project Manager Certification: PM3 Level

Alcatel advocates PM3 level and beyond for project manager certification for complex project engagements. Alcatel plans to sustain project management training and to certify 30 project directors per year and 200 project managers. The company is committed to develop project management as a core competency. ...

... "During an official award ceremony at Alcatel's headquarters in Paris recently, the 2005 certified top project directors of Alcatel have been welcomed by the board of directors. Two years ago, Alcatel launched an innovative accreditation program for its project managers. This program, which includes the Project Management Institute (PMI) certification, enables the project managers of the Group to continuously improve their skills in complex project management. At the end of the program, the candidate receives Alcatel's accreditation.

Beyond the PMI certification, Alcatel proposes the PM3 and PM4 levels. Four levels of competence along a career path are clearly defined: project leader (PM1), project manager (PM2 or PMI equivalent), project director (PM3) and executive project directors (PM4). The PM3 accreditation allows Alcatel to identify a key competence and to ensure that all the project directors within the Group have the same language and share the same strategy. In front of the customer, the business skills of the project managers are today a key criteria in the selection process of a vendor. The PM3 accreditation permits the customer to assess the competences of the project director, which will be its interface in a complex project. " ...

Project Manager Certification: PM3 Level: Via Alcatel: Alcatel launches an accreditation program for its employees awarding the management of complex projects ...

Agile Project Management Ecosystem: New Partners ...

Rally works to develop an agile project management ecosystem by adding new partners. ...

... "Rally actively partners with industry-leading companies to help customers acquire the development and project management skills needed to succeed with Agile, one of the world's fastest growing technology trends. Rally's Development and Coaching partners provide a comprehensive network of expert resources that offer a wide range of business, process and technology services related to planning, building and delivering software in small batches that provide immediate business value. " ...

Agile Project Management Ecosystem: New Partners: Via Rally Software: Rally Software Development Adds New Agile Partners ...

Based in Boulder, Colo., Rally Software Development offers the only on-demand, software development management solution that helps software organizations scale Agile development practices across the enterprise and around the globe. The company’s customers include leading software vendors, Internet companies and corporate development teams who are committed to responding faster to new opportunities and changing customer demands. With Rally, larger or distributed teams are able to define, develop and deliver high-value software in rapid iterations. Rally’s world-renown coaches and expert partners complement its on-demand tooling with training, mentoring and consulting services for creating the Agile organization.

Japan's Recovery - Internet Companies, Governance & More

This Time, Japan's Recovery Seems for Real

Like cherry blossoms that symbolize springtime and renewal in Japan, signs of an end to the nation's 15-year economic slump are beginning to emerge. Shares are trading at five-year highs, property values are ticking up and consumer price deflation appears to be ending -- all indications that the world's second-largest economy appears poised for recovery. At the same time, say Wharton faculty and outside observers, Japan continues to face challenges as it grapples with sluggish and outdated financial institutions, massive government debt and strained political relations with its fast-growing neighbor, China. In this special section, we offer an overview of Japan's economy, a report on the move to reform its massive postal savings system, and an analysis of the important role China plays in Japan's recovery. In addition, we describe the impact that two Japanese Internet companies are having on corporate governance, and look at the revival of Japan's retail sector, with its continued emphasis on customer service and demand for high-quality brands.

Summary is courtesy of Knowledge @ Wharton (Wharton is the University of Pennsylvania's business school - one of the top b-schools in the US)

Find out more: Link

Business IT Alignment: Service Catalog Touchpoint ...

Today's IT services transformation is enabled by a business-oriented service catalog with a robust set of supporting service-delivery processes. It is the service catalog that is the key touchpoint driving alignment of IT with the business. Rodrigo Fernando Flores explores the challenge of aligning IT with business goals and the role of business-expressed services in a IT service catalog. ...

... "More and more leading IT organizations are deploying a Service Catalog as the cornerstone of their shift to a more service-driven and customer-focused approach, or as the foundation of their ITIL initiative. As a vehicle for communicating and marketing IT services to both business decision-makers and end users, the IT Service Catalog can help address this trust deficit on two fronts. " ...

Business IT Alignment: Service Catalog Touchpoint: Via TechRepublic: IT Service Catalog-- Rebuilding trust between IT and the business

Project Software: Hosted Solutions Require Network Monitoring and Optimization

The future of software is in the utility computing model, such as hosted applications. Matt Hamblen shares the experience of managing networks when leveraging a hosted architecture for project management software. ...

... "More than 250 Perini workers at the company's headquarters use project management software called Expedition, which is hosted by application services provider LoadSpring Solutions on servers accessed over T1 links in a WAN. " ...

Via Computerworld > Radio killed the internet star - until builder downgraded quality

Project Planning Tip: Facts are More Important Than Theories

When planning your project or solving a problem, always remember that facts are more important than theories. This means that agile approaches, rolling wave planning, prototyping, etc. should be used where appropriate, in order to base decisions on facts. The alternative is to plan all future phases in detail up front, which is tantamount to basing your decisions on pure theory.

Likewise, the project approach itself should be based on a visit to the customer to see how things are currently done, and get a true understanding of what is needed. Often, what's really needed isn't what is stated in the project request.

In A Scandal in Bohemia, Sherlock Holmes (by way of Sir Arthur Conan Doyle) said, "It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.”

This is sage advice for project managers as well.

Project Estimating; Triple Constraint Must Stay Firm

Here's a great article from TechRepublic about project estimating and forecasting. It cautions that one of the worst things to do is to try to force a project to fit within an arbitrary management deadline. That means project managers must defend the right plan or suffer with poor results.

A properly estimated project must be based on planning, and be managed to the triple constraint of scope, time and cost (and of course, at PMThink we've discussed other potential variables, such as quality, risk, customer satisfaction, and more).

Here's TechRepublic's advice to CIO's:

Project managers talk about a project’s “triple constraints” of scope (work), time (schedule), and cost (budget)... For the team to make decisions that are closely aligned to the way you would like them to be made, you must clearly state the project priorities. There’s no such thing as “all three variables are equally important.”

Read on for more details or proper estimating and forecasting...

How to accurately estimate and forecast in project management

Project Management Heresy; Is Gold-Plating Really that Bad?

PMI has drilled it into our heads for years about the perils of gold-plating, and how we need to focus on just meeting requirements, yada yada yada.

Yet, when I think back to the most exciting work that I had done (years ago), it was when I had met with a client (a customer service specialist) to look into a simple request to develop a few reports. She needed this so she could have more information readily available to solve customers' problems. I watched this person work for a while and felt immediate pain at what she had to go through to resolve customer problems and take orders over the phone.

She had to make a zillion phone calls and run back and forth to the plant flooor to see the status of an order, most of the time calling the customer back hours or days later. I went back to my team, and we decided it would be just as easy to give her an online "dashboard" right from her primary order inquiry screen (this was before dashboards were popular).

From there, she could see inventory allocation, and at what point material would be in stock to complete the finished products for the order, as well as other related info. She could track the customer's products from order through manufacturing. This saved her daily walks to the plant floor. Not only that, she could now address her customers' problems while they were on the phone!

Upon seeing the impact this made, we then asked if she'd also like to be able to look up shipping information, delivery tracking, and accounts receivable as well, and of course she was overjoyed. The system revolutionized customer service for this company.

One might call this gold-plating, but I call it excitement. We were excited about making a huge difference in the ability of the client to solve problems, and the client was excited to offer this benefit to her customers. Of course, I first watched the client in action so I could easily tell what was needed, so this was still a pragmatic approach.

As long as innovations have a practical use, then it's not really gold-plating. It's gold.

In our relentless pursuit of "meeting requirements" and "attaining better efficiency", let's not forget that passion and excitement can energize teams and customers, and often leads to further innovations. Above all, it leads to action and movement! Ironically, this critical mass can increase throughput even better than traditional efficiency and scheduling methods. Bottom Line: We need to bring passion and creativity back into the workforce!

Sustaining Innovation: Growth Through Creativity ...

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

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

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

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

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

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

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

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

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

Project Management Software Conference: Primavera ...

Project Management Software Conference: Primavera: More than 40 Partners To Exhibit at Primavera Annual Conference: Via Primavera, Project and Portfolio Management

... "Primavera Systems, Inc., announced that 41 of its partners will exhibit at the company's 22 nd Annual Conference taking place November 13-16 at the Walt Disney World Dolphin Hotel in Lake Buena Vista, Florida. The event, one of the largest of its kind, expects approximately 1,500 attendees, and is a major educational forum for individuals involved in project, portfolio and resource management. " ...

Primavera is the largest independent provider of collaborative resource, project and portfolio management solutions. Primavera's world-class software and services are used by Global 2000 companies to choose the set of projects that best enable their strategy to plan, control and govern the chosen projects, and to accelerate the delivery of high-quality results for themselves and their clients.