Innovation Project Management. Innovation Project Management Series Global Project Management

Transcription

1 Innovation Project Management Innovation Project Management Series Global Project Management

2 Poor Statistics on Successful Projects Failed systems projects cost more than $100 billion per year - Computerworld One out of every two projects overruns its budget by 180% or more - Computerworld Survey of 300 large companies 65% reported projects were grossly over budget, behind schedule and technology nonperforming - KPMG 65% of companies have lost control of at least one major project - Forrester Research 31% of 8,380 projects cancelled - while only 16% were on schedule and on budget - Standish Group Breakthrough Technology Series Bob Fannin Global Project Management 2004 by GPM

3 Why aren t Project Success Rates Increasing? Increasing Complexity due to need for greater innovation 50,000 PMPs 120,000 PMI Members Growth of PM Advocates and Practitioners Demand for Innovation: Complexity Time-to-market Innovation Project Management Competitive Innovation Series Bob Fannin Global Project Management 2004 by GPM

4 An Innovative Project Cost Time A General Definition: Quality a significant endeavor, usually mission critical unique and unclear as to outcome limited skilled resources with extraordinary and dynamic constraints in time, cost and quality to bring about a beneficial change which may not be able to be expressed clearly

5 Innovation Projects are Different from Traditional Projects 1. Rapid Technological Changes 2. Unclear Scope Objectives 3. Rapid Changes in the Market 4. Scarce Resource Constraints 5. Unsure of Time Estimates 6. Greater Need for Creativity 7. Knowledge Intensive

6 New Approach for Innovation Projects 1. The Need for Portfolio Management Techniques 2. Being Scope Change Friendly 3. Planning Done on a Shorter Time Frame 4. The Need for Managing Knowledge 5. Planning for Rapid d Deliverables 6. Working with Scarce Resources 7. Fully Engaging Team Creativity 8. Deploying Highly Talented People

7 Innovation Projects Innovation Portfolio Align Projects to Organizational Objectives Set Strategy to Organizational Objectives Define Your Risk Tolerance Planning Prioritize Functionality Scope Planning Planning Deliverables Define Development s Plan Initial s Execution N Execution 3 Execution 2 Execution 1 1 Detail Plan Acquire Scarce Resources Schedule Tasks Execute Review Progress for 2 Plan Review of Success Criteria Compare Deliverable with Objective Use Success Criteria for Finalizing the Deliverable Final Approval Innovation Project Management Competitive Innovation Series Bob Fannin Global Project Management 2004 by GPM

8 Traditional Project Investment Profile Return on Investment POI Breakeven Point Successful Project Implementation Failed Implementation Delayed Implementation Point of Diminishing Returns Time to Market POI = Point of Implementation

9 IPM Intensive Project Investment Profile Return on Investment IPM 1 IPM 2 IPM 3 Traditional Project Implementation Plan POI for 1 POI for 2 POI for 3 POI = Point of Implementation Return on investment Added return due to Intensive project Return from Traditional project Time to Market

10 Setting the Development Plan Example: PDA Upgrade Project Proposed s Aggressive High Value Strategy Estimate in Days Low Risk Strategy Estimate in Days One Two Three Bluetooth Communication Infra Red Input/Interface Faster Com Link Cell phone Capability New Exterior Design Larger Display Milspec Durability Infra Red Input/Interface Larger Display Larger keypad New Exterior Design Faster Com Link Bluetooth Communication Milspec Durability One Two Three Four Larger keypad Cell phone Capability 154 Four

11 The Traditional Approach to Innovation Innovation Cycle Time Recognition Opportunity occurs T o Opportunity perceived Project T p T b Project activity begins T f Product definition and plans freeze Commercial Tr Product is released to production Cash Flow To Tp Tb Tf Tr A B B NP Net Profit Period Ts BET Te Time Profiting T s First customers are satisfied BET Break-Even Time Maturity Project becomes extinct T e Recognition Project Commercial Profiting Maturity

12 An Enhanced Innovation Life Cycle Anticipation Period due to Good Market Intelligence Earlier Project Initiation Shorter Project Execution Greater Profit Shorter Innovation Cycle Benefit: Early Project initiation Due to Improved Anticipation Cash Flow T b Tr B Longer Commercialization Cycle B NP +B INP Increased Net Profit Period 2 Step Strategy: 1. Develop strong market intelligence 2. Use intensive project investment to meet the earliest release date Ta To A Anticipation Project Commercial Profiting Maturity BET Te Time This maximizes profits and improves the overall competitiveness

13 An Enhanced Innovation Life Cycle Anticipation Period due to Good Market Intelligence Earlier Project Initiation Shorter Project Execution Greater Profit Shorter Innovation Cycle Benefit: Early Project initiation Due to Improved Anticipation Cash Flow T b Tr Longer Profiting Cycle B B NP +B INP Increased Net Profit Period 2 Step Strategy: 1. Develop strong market intelligence 2. Use intensive project investment to meet the earliest release date Ta To A Time BET Te Anticipation Project Commercial Profiting Maturity This maximizes profits and improves the overall competitiveness

14 Business - Management by Objectives Management Techniques Projects - Management by Exception Innovation Projects - Management by Transition Replan & Replan & Replan & N

15 Management by Transition Plan/Prioritize Innovation Objectives Detail Plan For Next Execute First Plan Review of First Results Deploy 1 st Results Detail Plan For Next Execute First Plan Review of Second Results Deploy 2 nd Results Detail Plan For Next Execute First Plan Review of Third or Final Results Deploy Final Results

16 ! " Managing Time Rewards Fuel Performance Managing Team Energy Purpose Fuels Performance Work is a Series of Sprints Work is a Marathon Downtime is Productive Time Downtime is Wasted Time Positive Thinking Focus on Full Engagement Innovation Project Management Competitive Innovation Series Bob Fannin Global Project Management 2004 by GPM

17 ) * $ " " + ) " " "! " " " ), # $ " " ) -! % & " $ '( "" "".! ( / Source: Agile Software Development, Robert C. Martin, Prentice Hall, 2003 Basic Basic Basic Basic Principles Principles Principles Principles of of of of APM: APM: APM: APM: