Is Project Management an Asset

Is Project Management an Asset?

What is your experience with Project Management? Do you think that the tools and techniques of project management are only useful on big projects or are they something you just don’t have time for?

Our lives and organizations are constantly being buffeted by the winds of change that cause us to learn new ways of living our lives. The changes may be driven by the introduction of new technologies, competition, or changing economic conditions. We often have to reinvent the way we do work and more deeply the way we think.

What drives an organization to implement project management? Many organizations were queried and the results were published (1). The most frequent response was a CRISIS! This might also apply in an individual’s instance. Other responses were a special business opportunity, benchmarking, or it just seems the right thing to do. Many of the organizations viewed project management as a temporary situation or a patch. Did this work? You bet! Applying even the most rudimentary project management to a chaotic situation will produce successes.

Here are some of the general observations gleaned from the study:

· How do decision-makers perceive their involvement in Project Management?

They leave the details of project management and the project management process to someone lower in the organization.

· Do the decision-makers manage projects?

“Of course,” they responded. Multiple projects.

· How do people often become project managers?

They are usually people in the wrong place at the wrong time. The are called “accidental” project managers.

· How well prepared are the “accidental” project managers to do the job?

Many have the perception that a person need only to take a two-day class in MS Project or other software tool to be qualified as a project manager.

· How good is the information collected by the “accidental” project manager and to be given to the decision-makers?

What do you think? The success, even the survival of the organization, may be dependent on this information.

· How well is this “patch” accepted in an organization?

It can be very difficult, if not impossible, without strong executive sponsorship.

· How well do most projects align with strategic goals?

Many of the respondents didn’t sense a strong alignment with strategic goals of the organization. Have you ever worked on a project that just faded away?

What is the current state of project management in the IT industry (2)?

· Only 16% of the projects are on time and on budget.

· 94% have at least one restart.

· The average cost overrun is 188%.

· The average schedule overrun is 222%.

· Only 61% have their original scope.

What factors contribute to the dismal performance in the IT arena? Another study (3) investigated many projects and determined what these factors were, in descending importance:

1. Lack of corporate leadership

2. Poorly communicated goals/deliverables

3. Team related weaknesses

4. Poor project management

5. Deviation from the timetable/budget (plan)

Have you ever wondered what results project management might produce if we introduced methodology into your organization in a deliberate, planned way?

It can be an asset! It can contribute to your bottom line, help you better utilize your resources, better align projects with strategic goals, contribute to better communication throughout the organization, and have more accurate information on which to base decisions.

How can I make that statement? A study from Berkeley (4) studied more than 50 organizations and was able to show that the better an organization utilizes the project management methodology, the better the results. The ability to use the methodology is called Project Management Maturity (PMM).

How do we measure PMM? A PMM baseline is established in an organization and then they embark on an endeavor to improve PM knowledge in all levels of the organization and modify processes to facilitate the use of PM. The project managers will require significantly more education to be effective project managers. The results of the improved use of project management are tracked. The long-term goal of effective PM is about being PREDICTABLE and CONSISTENT. Graphing the results might look like those shown in Figures 1 & 2.

The percentage of total project expenditures goes up as personnel get trained and systems are adapted to the PM methodology as shown in Figure 3.

What benefits will the organization see with the use of effective Project Management? A plan will be available for all stakeholders to see. People will understand what, when, and WHY things need to be done. A common language will exist promoting better communication between the stakeholders. Performance relative to the plan can be measured and corrective action taken as required. Customer expectations and needs will be met.

In the most basic terms, effective project management will tell you the following:

· Where do I want to be?

· How will I get there?

· Where am I?

· How am I doing?

It is recommended that the project team create visible measurements that are important to the various groups of stakeholders. They can include financial benefits, employee satisfaction, success in using a new ERP system, customer delight, etc.

Effective Project Management will provide the tools, techniques, and people skills to better help you and your organization to facilitate the transition of the change into your life.

In conclusion, I suggest that you consider thinking of effective project management as providing improved consistency and predictability. This will result in better coordination and communication between all levels of an organization. Better information will be available on which to base decisions, greater personal satisfaction for all involved, and, finally, greater value will be created for all stakeholders.

Bibliography:

1) Selling Project Management to Senior Executives, Janice Thomas, et al, Athabasca University, PMI Symposium 2001 in Nashville

2) Standish Group “Chaos Report”

3) Why Information Systems Projects are Abandoned, Oz & Sosik, Pennsylvania State University, PM Network, June 2001 issue.

4) Calculating the $$$ Value of Project Management, Ibbs & Reginato, U of California at Berkeley, PMI Symposium 2001 in Nashville

About the author:

Hal Lunka is the President of the Mile Hi Chapter of the Project Management Institute and an associate of the Omega Management Education Group.

303-469-0876

lunka214@msn.com