Portfolio of One

How would you like to explain your portfolio balance for the next three years with a $1B must-do technology investment? ...

... "FEMA's enterprise IT project is a multiyear program expected to cost at least $1 billion, according to Input Inc. " ...

Via Washington Tech: $1B overhaul

Multi-Disciplinary Programs

Advice to position yourself for success in 2008. ...

... "Or, if you can, get assigned to a boundary-spanning role, and seek some relief from daily operational duties so you can focus on the big picture. " ...

Via PC World: Career Tips

PMO Organize for Transformation

The program management office is seen as an organizational model for transformation. In this situation, four operating teams are under the leadership of the PMO - delivery, process, visibility, and communications. This office will provide oversight of the various project teams deployed to achieve the transformation. ...

... "Higher Education Ministry has set up the programme management office (PMO) in line with its recent launch of the National Higher Education Strategic Plan ... " ...

Via The Malaysia Star: Transformation

PMO Success: A Matter of Integration

There's a great article on Projects@Work about Harvard Pilgrim Health Care's (HPHC) PMO, examining the elements that have made it succesful. It's rare you hear about a successful PMO these days, and when you do, it's usually a result of the factors listed here.

Key lessons (all of which I've long endorsed):

1) Look outward to the overall business and the customer, not just IT.

2) Keep it simple. A PMO doesn't have to be complex; it just needs to support project managers, and engage them in continuously improving the overall process.

3) Keep it integrated. An enterprise PMO, outside of IT, is a vital part of ensuring integration. An additional IT PMO is fine, as long as it's integrated with the whole.

This is in line with my statements that a PMO should really be called an IMO (Integration Management Office).

Here's an excerpt that explains the way the Enterprise PMO and an IT PMO work together at HPHC :

HPHC has two formal PMOs; one at the enterprise level, the other within the IT Division, managed by outside vendor Perot Systems. The two units have co-existed since 1999 and have no trouble defining their roles and relationships in support of business plan delivery. According to Ron Hill, Perot Systems Client Executive to HPHC, the pathway for success is “born from the teamwork of the EPMO and the IT PMO.” Hill believes the strength of the relationship between the two units is visible through the communication between the EPMO, the IT PMO, and the business users. “Everyone must use the same methodology, vernacular, and project tools to reduce the risk of miscommunication.”

And here's the full article...

http://www.projectsatwork.com/content/Articles/239007.cfm

PMO Setups: Which is the Right One?

I recently came across an article from William Casey and Wendy Peck that originally appeared in PM Network in 2001. It's a valuable article about PMO setups, and the issues still hold true today.

The premise is that there are three primary functions a PMO can serve (or any combination therein):

- Weather Stations, which merely monitor project activies without directly influencing them, through status reporting, metrics tracking, benefits tracking, and so on.

- Control Towers, which attempt to reduce variability on project effectiveness through training and mentoring, change control mechanisms, risk management, communication standards, lessons learned, and tools and processes that can be adapted appropriately to the project.

- Resource Pools , which maintain a selection of skilled project managers from which the organization can pull from, at least for major projects or programs.

The article offers benefits and warning signs for each, along with the suggestion that PMOs adopt a mix of roles, potentially based on certain project size thresholds. In fact, the authors caution against taking on projects that are too small to warrant the PMO disciplines required.

Read on...

Choosing the Right PMO Setup

Project Controller: The Project Manager's Best Friend

Halleluyah! Finally, there's an article saying what I've been saying for years. With projects becoming more and more complex, and leadership and stakeholder management requiring more attention than project managers have time for, there's a need for another role to manage the "control" aspects of the project.

This article by Robert Wourms on Projects@Work details how organizations such as State Farm have had success doing just that. Bring on the Project Controller. As a member of the leadership team for PMI's new standards for program management and portfolio management, I witnessed first hand how valuable this role was, as it freed the program manager up to actually lead the program.

The article shows how the project controller's role can include tasks such as:

1) Educating the team on processes
2) Facilitating Planning and Control sessions
3) Developing the project schedule
4) Controlling progress
5) Tracking and analyzing costs
6) Managing Issues, Risks, and Changes
7) Documenting and delivering status information

So what's left for the project manager to do? Plenty. Supporting this, the article offers a valuable table outlining the role of the project manager vs. the program controller. Read on...

http://www.projectsatwork.com/content/Articles/221443.cfm

Portfolio Management, Program Management, and Governance: A Rational Approach

There's an informative article by Michael Hanford on IBM's website about "Portfolio Management Governance." While it's aligned with IBM's Rational methodology, it provides useful information in general on the topic.

Many people confuse portfolio management, program management, and the relationship of governance to the both domains.

While there's no "right answer" per se, the generally accepted view is that portfolio management focuses on alignment with organizational strategy; setting priorities vs. resource and/or financial constraints; and insuring the right mix of initiatives to meet organizational goals. This is not unlike the management of a financial portfolio.

Program management on the other hand, deals more with execution of a group of related projects, insuring that the interrelationships are managed across them, and leveraging economies of scale (i.e. shared administration, management of benefits, etc.).

More importantly, portfolio management is ongoing and cyclical, while program management is temporary. Of course, some organizations refer to certain "channels" of work as programs, or even refer to mega-projects as programs, but the PMI Standard for Program Management considers these areas in the domain of functional/operational management or project management, respectively.

As for governance, it can work on multiple levels. There can be portfolio management governance, which makes decisions and sets policies at the portfolio level, or program management governance, which acts at the program level. Ideally the two work hand-in hand. For example, an executive council (and sub-councils if need be) can make decisions at the portfolio level (including authorization or termination of programs and projects), while a program oversight committee can govern a specific program, in alignment with the portfolio needs.

For more, here's the IBM article...

Establishing portfolio management governance: Key components

ITGovernance ITIL EnterpriseArchitecture Drive Benefits

Service management successes discussed at recent conference.

... "CIO of the state of Illinois saved over $130 million annually by implementing a strong enterprise architecture and IT governance program in conjunction with ITIL. " ...

Via Public CIO: Government IT Services

Influencing People: The Project Manager's Secret Weapon

I recently attended a presentation on self-awareness and influence by Dr. Charles Dwyer, Academic Director of the Aresty Institute’s Leading and Managing People program in the Wharton School. I was so impressed with the presentation that I bought his book, The Shifting Sources of Power and Influence.

This book was a real eye-opener, and a jewel for anyone in project management. In the book, Dwyer states three major challenges we all face:

• Dissonant Value Systems (i.e. people’s conflicting value systems, made even more visible by the advent of the media, internet, etc.)
• Diffused Power (i.e. power being spread around in a matrix fashion, with more and more decentralization and special interest groups, etc.)
• Limited Resources (We all face a limited set of resources, made even more challenging by our lack of a mindset geared towards accepting tradeoffs, or a good mechanism to guide operational priorities)

Sound like any projects you know?

Dwyer goes on to caution that public statements, such as vision, mission, organizational values, etc. may be useful for articulating the values of the leadership or giving people a sense of structure, but do not in themselves change anyone’s value systems. Many leaders assume they can use these statements to change people’s value systems to match organizational values, but this is a myth.

What is needed instead is the ability to influence others by getting them to change their behavior to match your values. To do this, have a clear picture of what you want the unit to look like; set specific, measurable objectives; and insure that people have a way of achieving those objectives.

According to Dwyer, some tried and true methods include asking people for help, offering or implying something in return, or influencing indirectly (i.e. working through someone else who’s in a better position to influence).

Dwyer points out five guidelines for influencing people (I’ve paraphrased them):

1. Insure they have adequate capability (Do they know what to do, have the competence and self-confidence to carry it out?)
2. Address their perception of “Potential Value Satisfaction” (WIIFM or “what’s in it for me”)
3. Address their perception of the probability of value satisfaction (i.e. Do they trust you? You must build trust through visible examples.)
4. Address their perception of cost (Do this by giving them alternatives or a sense of options, and helping them understand the costs and implications.)
5. Address their perception of risk (Try to assume or distribute some of the risk. Don’t ignore it.)

These are the five things everyone weighs in their mind when someone attempts to influence them. In essence, the five elements (four of which are perceptions) make up an equation for behavior. We can influence people’s behavior by addressing this equation (I’ve paraphrased for simplicity):

Behavior=Capability + (Perceived Value * Trust factor) – (Perceived cost and risk)

These are just some of the gems of wisdom in Dwyer's book. He offers reams of memorable examples, often with a humorous style. With 90% of a project manager's job being communication (including influence), I highly recommend Dwyer’s book for project managers, or anyone in a leadership position for that matter.

PMI Project of the Year: From Wasteland to Wildlife

I was recently in Seattle for a PMI leadership meeting as part of the core team for the Program and Portfolio Management Standards program. First, I was impressed by the beauty and cleanliness of the city, and the friendliness of the people. And of course I had to grab a coffee at the first Starbucks and see the guys at the famous Pike Place Fish Market throwing fish to each other. But I digress.

What really floored me was being at the PMI Awards presentation and seeing the short film on the project of the year---the Rocky Flats Closure project. This was a former nuclear weapons facility (and wasteland) that had to undergo an immense cleanup, including nuclear deactivation and material removal. Except the result wasn't a mere cleanup---the site was turned into a beautiful wildlife refuge, and will soon have a public space for hiking, biking, and horseback riding.

It demonstrates what can be achieved when you blend passionate leadership and sound project management. The project's website is below...

Welcome Rocky Flats Environmental Technology Site (Main)

Growth Business Process: Program Management

Must-read HBR article is an interview of Jeffrey Immelt on GE's growth as a business process. Includes a well-developed process wheel, personalized to GE, but applicable to most enterprises. ... Link (PDF). Way at end of the article (pg 10), note that Jeff Immelt admits GE's weaknesses and identifies program management as a skill needing development --- the ability to manage significant high-profile investments.

PMI Announces Program Management Certification: Bring On the PgMP

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

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

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

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

PMI to launch credential for program management practitioners

Project Management System: Stakeholder Visibility

Transportation industry project management system enables visibility through the project lifecycle to stakeholders. NJIT research team collaborates with users in Houston to customize the system to its needs. A number of installations have been completed across the country. ...

... "The Houston program provides detailed and easily accessible information on transportation projects in the region for TIPs and regional transportation plans. With TELUS, the process is open to citizens and stakeholder groups, not only for project selection, but for tracking project schedules, funding commitments, and related issues. " ...

Via NJIT: NJIT Researchers Help Texans Employ Transportation Technology ...

PMPort Announced; PMI's News Aggregator

The Project Management Institute (PMI) has just announced PMPort, an news aggregator that pulls to gether project management related news feeds on a daily basis.

I think they might need to flesh out the search criteria, but looks like it could be another interesting source of information.

PMport - Keeping stakeholders in touch with project, program and portfolio management around the globe - every day

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Elusive IT Project Value: Book Tells How To Achieve It

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

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

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

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

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

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

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

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

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

Project Management Lessons from Mars

Brian Muirhead, the project manager for the Mars Pathfinder program, had some good tips to share with Projects@Work this week.

Some key learnings, extrapolated from the interview:

• Innovation and bold ideas are often necessary to meet what often seems like an impossible challenge. The trick is to balance the cost and time savings with the risks.
• A diverse team is key. It's better to have people that are different, with complementary skills, than have a bunch of people who think and act the same way.
• A small core team that can share issues, problems, and resolutions, with one person at the helm, is an effective way to run a project.
• Trust, honesty, and personal committment are traits that need to be prevalent throughout the team.
• Test, test, and then test again. Don't rely on luck. If you can't test using the exact situation, then simulate it as best you can, testing as much as is possible.
• A team is only as good as it's weakest link. It's up to the project leader to identify those people that aren't up to the task and remove them or find an area that suits them better.
• Ensure team members have opportunities to make personal connections and grow.
• A project manager must simultaneously provide the glue (keeping the team cohesive and focused) and the grease (removing barriers).
  
  Here's the full interview...
  
  http://www.projectsatwork.com/content/Articles/232113.cfm

Move Over PMP: PMI Announces Program Manager Credential

As reported in PM Forum, PMI has announced their new Program Manager credential, which looks to be like a PMP on steroids.

Earning the new credential will be like passing the seven trials of Hercules, with education reviews by PMI staff, reviews of experience by a panel of program managers, a multiple-choice scenario-based exam, and an assessment by a team of raters selected by the candidate to rate them during on-the-job program management performance.

Any guesses as to what the new credential will be called? How about PME (Program Manager Extraordinaire) or KOAPM (King of All Program Managers - oops, that wouldn't work for female program managers). Maybe SPM (Supreme Program Manager)? Hey, we get enough jokes about the PMP acronym, why don't they continue the trend and use PMS (Program Management Specialist)?

I better quit while I'm behind.

In all seriousness, it's good that the credential will require such a rigorous application process. With so many organizations virtually guaranteeing "instant PMPs," this one should have quite a bit of prestige.

While the PMP certification assures a solid foundation of project management knowledge, this one should give organizations the confidence that the certified program manager is indeed worthy of managing large programs (although nothing is foolproof).

Here's the full article on PM Forum, where they list PMI's stated qualifications for certified program managers. One might argue that a senior project manager should have the same qualifications (although PMI's FAQ page attempts to distinguish the project manager role from that of the program manager).

PMFORUM, Connecting the World of Project Management PMFORUM Breaking News: PMI INTRODUCES PROGRAM MANAGER CREDENTIAL

Test Your Project Management Savvy

Riddle Me This, Project Managers!!

For those who like puzzles, they're running a program on AllPM this month based on Napoleon on Project Management by yours truly. Each week or so (through June and into July), I've been asked to pose some challenging scenarios to be discussed on the AllPM forum.

After each puzzler runs for a week or so, I then respond with what Napoleon might have done (at least, as far as I know, since he's unavailable for comment).

Check out puzzler#1 for an example (it generated some good discussion in the forum). Then take a shot at discussing your thoughts on puzzler #2.

Best of all, the folks at AllPM are having some fun with this and will be offering some free French wine to at least one "winner," to be announced on Bastille Day, July 14th. Join the fun! Here's the link...

ALLPM Project Management :: Project Manager - Project Management - Information - Forum Manager- PM Tools - Articles -PMI

The Making of a PMI Standard; Behind the Scenes

For those who wondered what goes on behind the scenes of creating a PMI global standard, there's a nice writeup in the latest PMI Community Post, which gets sent to all certified PMPs.

In the article, titled Evolution of a PMI Global Standard, PMI reveals the standards creation process, from the project approval and charter through the team selection, standard development, and exposure draft process.

Having served on the leadership team for PMI's new Standard for Program Management and Standard for Portfolio Management, I can say that volunteering on a standards creation project is very rewarding.

It's an opportunity to work with the best in the business and get involved in a large virtual project with people from all over the world. I definitely recommend the experience. Plus you get to earn PDUs if you're a certified PMP.

For those interested in volunteering, here's PMI's Volunteer Opportunity website, which has a link to the Opportunity Page. Tell ' em PMThink sent you.

Project Failure Case Study; Maine's Medicaid System

Talk about a project disaster. As reported in an excellent article in CIO Magazine, the Maine Medicaid Claims System project is a case study of a project gone awry.

The project was undertaken to switch from their legacy systems to a new web-based system to process Medicaid claims and facilitate HIPAA compliance (Health Insurance Portability and Accountability Act of 1996). As a result of the failed project, Maine is now the only state in the union not in compliance with HIPAA.

System problems led to many claims ending up in limbo, leading to hundreds of calls from health care practitioners, nearly 300,000 patients being turned away, several dentists and therapists going out of business, and destroying Maine’s finances and credit rating.

So what went wrong?

Mistakes included the following:

• Deciding to develop an entire system from scratch using unproven technology, while other states built a front-end onto their legacy systems
• Caving to pressure from management to meet tight deadlines with inadequate resources instead of pushing for a realistic plan to begin with
• Failing to notice why other bidders either didn’t bid or came in way higher (a sign that the schedule was unrealistic)
• Hiring a vendor with no experience in developing Medicaid claims systems because they were the lowest bidder
• Not having a Medicaid expert on the team, leading to errors in judgment
• Underestimating the time needed to meet with subject matter experts
• Competing with another major initiative (a department merger) for executives’ attention and resources
• Skipping project management basics (including piloting, adequate end-to-end testing, staff and user training, etc.) due to looming deadline pressures
• Failing to stop, regroup, and analyze the risks
• Taking a “big bang” approach to cutover with no contingency or backup should something go wrong

Management’s response, of course, was to switch program managers, and issue stronger demands to have a smooth system, but none of the changes or demands made much of a difference. Consultants were brought in to prioritize the many problems, but still, the complexities proved too much. It wasn’t until a Medicaid expert was brought in that things began to gel.

Like many project failures, it’s easy to point to the project management (and certainly there are many shortcomings there in this case), but the organization must share the blame as well if it insists on unrealistic deadlines and leads by fear (fear of shareholders, fear of competition, fear of management, etc.). None of these variables can make an unrealistic schedule more realistic.

It's really very simple. Either adequate resources must be committed, the expectations lowered, or a more piecemeal approach taken (or all three, if applicable). In any case, the schedule must be realistic and risks need to be managed.

Here's the full article. It's well worth reading, as are the reader comments.

Maine's Medicaid Mistakes - Editorial - CIO

Software Projects Doomed From the Start; Blame the Stakeholders

OK, maybe this doesn't top the skateboarding dog (see yesterday's post), but here's an extremely compelling article from the Defense Acquisition University (DAU) on why most software projects are doomed to failure.

Thanks to PMForum for posting this in their news section.

The article states that most software projects come nowhere near their original baselines (although they may come closer to approved revised baselines). It says that stakeholders and the organizational environment, more so than lack of project management skills, bear much of the blame. Here's a quote:

"No amount of training in the technical skills of program management will overcome the simple truth that, as a PM, you cannot make people do what you need them to do. This is the root cause of many software-intensive program failures. Stakeholders often cannot agree on priorities, refuse to standardize business practices, take off on their own proprietary solutions, or simply refuse to participate in the program."

The article also says that the original plans are usually unrealistic to begin with, and underestimate the organizational challenges. It says we make matters worse by holding project managers accountable without giving them the necessary support to be successful.

"... Most expectations of contemporary programs are unrealistic. The cruel reality is that we train PMs and drop them in an organizational 'shark tank' that opposes many of the principles they have just absorbed in their training. Program managers often find themselves in a superfluous role, accountable, yet powerless. "

The article proposes a system of observing stakeholder behavior and rewarding and discouraging behavior as appropriate. Of course, an organization must recognize the problem and commit to doing something about it.

Senior leadership must be actively involved in fostering the changed behaviors. Otherwise, software projects will continue to be underestimated and mired in conflict, despite the best training, the best EPM tools, and the best processes.

I highly recommend reading the full article, "Irreducible Truths of Software-Intensive Program Management", by David Cottengim.

PMFORUM, Connecting the World of Project Management PMFORUM Breaking News: MOST SOFTWARE PROJECTS ARE DOOMED TO FAILURE ACCORDING TO PENTAGON PAPER

eProject Launches eLounge

There's another project management community on the internet, and this one's from eProject, the leading web-based "on demand" project management tool.

eLounge is eProject's online community, open to anyone with an interest in project management.

This is from their press release:

"We've created the premier destination site for portfolio, program and project managers who want to interact with industry peers, share knowledge, learn best practices, find out what's new, or just get up to speed quickly on the topics and issues most important to them," said Christian Smith, eProject vice president of sales and marketing. "eLounge is unmatched in the industry in terms of original content, downloads and the stature, knowledge and experience of our guest bloggers," continued Smith.

I was fortunate enough to be asked to be part of their expert panel of contributors, so I occasionally post there (so far, my posts have been a variation of my PMThink posts or similar material---my way of spreading good ideas more broadly). Are they competition? Someone once told me that on the internet, there is no competition, only cooperation. We're all in this together.

Dave Blumhorst, ex PMO Director for PeopleSoft and now CEO of Effective IT Group, is a regular contributor, and I must say I completely agree with his philosophies on PMOs. See his blog "Do PMs Really Hate PMOs" and "Common PMO Mistakes" in their Project Management Trendwatch section.

Here's the link to the eLounge home page...

eProject eLounge - Project Management User Community

PMI to Introduce Program Manager Credential in 2006

As reported in PMForum last week, Iain Fraser, PMI's Chair, discussed PMI's key initiatives for 2006 at their Asia Pacific Global Congress.

Most importantly, he announced that PMI will be introducing a new certification for program management to go along with the current PMP and CAPM certifications.

The new standards for program and portfolio management will be released at PMI's European Global Congress in Madrid in May.

For more about Iain Fraser's comments, read on...

PMFORUM, Connecting the World of Project Management PMFORUM Breaking News: PMI CHAIR IAIN FRASER ANNOUNCES PRIORITIES FOR 2006

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 ...

Open Source Project Management; Simple and Free

While organizations are spending more and more money on sophisticated project, program, and portfolio management software, let's not forget that there are some pretty nifty software products available for free.

Here's just one example, GanttProject 2.0, which has a decent user interface for Gantt-based schedules and resource management. There are many more such products at Sourceforge.net.

So, if you're looking for simple, but effective, ways to begin building project management capabilities but don't want to spend a fortune (or anything), check out the many Open Source products on the market.

Process vs. Freedom; Finding the Right Balance

There's a great article in Computerworld about finding the balance between having well-defined, repeatable processes and allowing businesses (and project managers) the freedom to innovate. A flexible approach is key.

Here's an excerpt from the article:

Studies have shown that the consistent use of processes increases repeatability, productivity and quality while decreasing project delivery time. But these same processes can appear as a wall to the business people who are pressured to get
their ideas to market. The project team ends up on the battle line between the program management office (PMO) enforcing the procedures and the business people seeking to retain their freedom.

The article goes on to suggest ways to minimize conflict and satisfy both audiences. Read on...

Surviving Process Without Going Berserk - Computerworld