Day 5: Project Management, Program Management, and Trends
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1 Day 5: Project Management, Program Management, and Trends Allan McLaughlin Owner/CEO: JTA Enterprises, LLC
2 Introduction of Topic How did you get here this morning? Did it just happen? Or was there a plan? Did you have any unexpected issues? 2
3 Agenda for Project Management and Program Management Introduction of Topic Overview of Class and Setting Expectations Definitions Project, Program, Operations Project Management, Program Management Portfolio Management Concepts within Project Management Including an Exercise on Managing Concept Trade-offs Careers and Training/Certification Industry Trends Past, Present and Future Business Implications Including a Business Simulation Activity/Discussion Review and Wrap-up 3
4 Definitions: Project vs. Program vs. Operations Project a temporary endeavor undertaken to create a unique product, service or result. Temporary means having a defined beginning and a defined ending. Unique means the product or service is different in some way distinguishing it from all other products or services Projects deliver defined outputs. Program a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. May or may not have a specific end date. Programs may include elements of related work outside of the scope of the discrete projects in the program Adapt to changing business circumstances/conditions Programs create outcomes or benefits. Note: Definitions adapted from Project Management Institute Handbook PMBOK 4 th Ed. 4
5 Definitions: Project vs. Program vs. Operations Operations ongoing and repetitive while projects are temporary and unique. Characteristics shared in common across Projects, Programs and Operations include: People/Skills Limited resources (people/skills, funding, time, technology, services, space, use equipment, etc.) Efforts made to plan and control them Note: Definitions from Project Management Institute (PMI) Handbook PMBOK 4 th Ed. 5
6 Definition: Project Management Project Management the process of applying Knowledge, Skills, Tools and Techniques to project activities to meet the project requirements, which are defined by: Scope Schedule Budget Quality Cost Note: Definitions from Project Management Institute (PMI) Handbook PMBOK 4 th Ed. 6
7 Definition: Program and Portfolio Management Program Management the process of managing several related projects, often with the intention of improving an organization s performance. Note: Definitions from Wikipedia Portfolio Management the process of managing multiple programs and projects in a coordinated way to obtain benefits and control not available from managing them individually. Typically at the highest level of the functional unit or business unit. Note: Definition from Project Management Institute (PMI) Handbook PMBOK 4 th Ed. 7
8 Definitions: Project, Program, Operation or Portfolio What is it? The activities necessary to modify a pharmaceutical compound to create a new drug for treating migraines. Project The activities involved to implement Intel s strategic investment plan with a goal to grow the business. Portfolio Producing Ford s new F-150 Truck engines in the manufacturing plant. Operation Creating a training program to prepare the sales force prior to rolling out a new product. Project 8
9 Definitions: Project, Program, Operation or Portfolio What is it? Preparing to launch the Space Shuttle. Program Running a data center. Operation Development of a new Garmin GPS device. Program Installing the most recent software upgrade required for Oracle s Order Fulfillment application. Project 9
10 Concepts within Project Management Note: Graphic from PMI Reference Materials 10
11 Concepts within Project Management Note: Graphic from PMI Reference Materials 11
12 Concepts within Project Management 12
13 Concepts within Project Management Note: Graphic from PMI Reference Materials 13
14 Concepts within Project Management Note: Graphic from PMI Reference Materials 14
15 Concepts within Project Management Iron Triangle Exercise to Better Understand the Trade-Off Issues that a Project Manager deals with everyday. And, usually more than one per day! Controls are not new: -Cost 14 th Century -Scope 18 th Century -Time 1917 (Gantt) SCOPE Cost 15
16 Concepts within Project Management Complexity and Uncertainty Project Team is a complex adaptive system in perpetual motion Social networks within and around the project help to create and adapt the work Effective Communications are key to the creation, adaptation, monitoring and control of a project Accepting uncertainty changes the purpose of project control tools Schedule, cost, quality are symbolic languages that aid in the communication of a complicated idea Helps the team to organize and communicate 16
17 Concepts within Project Management Note: Graphic from PMI Reference Materials 17
18 Concepts within Project Management Note: Graphic from PMI Reference Materials 18
19 Concepts within Project Management Note: Graphic from PMI Reference Materials 19
20 Concepts within Project Management Uncertainty is the norm Skilled Project Managers will deliver more consistent and reliable project outcomes Skills must include the soft skills: o Communications (Listening, Speaking and Writing) o Motivation and Leadership 20
21 Concepts within Project Management Project Management is all about dealing with complexity But, always keep in mind the concept of GOOD ENOUGH 21
22 Careers and Training/Certification Project Management is a learned skill On the job and more so via Project Management Institute or equivalent body Various certifications levels, but base PMI Certification program is 5 classes over 5 weeks, then you sit for a test. PMI Education is handled by local Chapters of the PMI Project Management 22
23 Careers and Training/Certification Project managers Product Managers Department Managers Program Managers Program Managers Portfolio Managers Divisional/2 nd Line Leaders C Level considerations 23
24 Trends Past, Present and Future Pre 2000 Diverse standards typically industry or geographic based Impact and timing of importance of Standards were industry based Navy ship building in 1960 s Computer hardware industry 1970 s+ Computer software industry late 1980 s+ Processes began to be formalized as a Practice Concept of Certifying a proven practitioner gets started Application of tools and structure began to spread across broader industries 24
25 Trends Past, Present and Future Various certification programs expand around the world Improved monitoring and control tools developed to integrate the tracking of cost, schedule, quality, scope (requirements), risk, resources and other factors Requirements gathering became a formal staff position in many industries with the advent of the Business Analyst 2008 Formal Training/Certification becoming a requirement to qualify for PM roles ROI based decisions being pushed (i.e. kill the project early perspective) Critical Thinking becoming a key competence Project Management Offices (PMO s) getting established and seen as relevant Virtual teams create communication challenges Overlap developing between Project Managers and Business Analyst 25
26 Trends Past, Present and Future 2009 Cost constraints drive consolidation of PM and BA roles Broader and more unique methods for gathering requirements applied to software and web development Storyboarding visualizing the end product through a series of illustrations or images Initially developed in 1930 s by Walt Disney for movie animation Traceability Maps tracing documented requirements back to stakeholder rationales and forward to design documents, code and test cases Initially used in Logistics, Material Production and Government Standard Agencies Agile development methodology use broadens putting pressure on Waterfall methodology processes Waterfall very formal step phase approach Agile iterative, very free form approach, little view of end point when starting 26
27 Trends Past, Present and Future 2010 Infrastructure investments were down, hence a desire to improve the things already in operation took priority Drove a desire to improve the PM process rather than the tools Agile continues to grow in use, BUT... Still immature Being applied as a way to promote moving faster with little accountability for results Not trusted by management Management forcing Agile teams to use some sort of metric to force accountability Project Managers are becoming independent contractors Virtual project management putting emphasis on SOFT SKILLS Social media tools come into use Continuing the convergence of PM and BA role 27
28 Trends Past, Present and Future 2010 continued Automated portfolio management tools gaining investment approval to increase pressure on metric tracking and accountability to the business Businesses taking time to ensure strategy aligned to portfolio, to programs and to projects within the programs Cutting back on rogue projects wasting business resources Must be careful not to cut R&D Program and Project Managers being held more accountable to manage: Risk Factors Vendors to Contract Terms Continued cost controls driving PM s to train while on-the-job, rather than in the classroom Online training and testing 28
29 Trends Past, Present and Future 2011 and Beyond To predict the future, you need to look at the past So, what do you predict will be important in the next 2 3 years? 29
30 Trends Past, Present and Future 2011 and Beyond PM s will require more than just tools and techniques to be effective Communication, Leadership, Critical Thinking, Influence, Organizational Agility, Strategic Agility, Thorough understanding of the Business Unit,... Need to excel in skills that are Technical, Contextual and Behavioral Certification will not be enough, PM s will need to have demonstrated competency and successes Competency based hiring methods will develop for PM candidates Global business demands will drive global PM complexities Agile is not the silver bullet It is just another tool Need to know both Waterfall and Agile, then apply appropriately Social media tools will grow in use and importance Diverse talent generations will add to PM complexity and demand for soft skills PM will oversee major change management initiatives 30
31 Business Implications Business Leaders are more aware of benefits (and issues) that come from a competent PMO Want accountability for results and risk management documented A name with a date Financial industry changes, such as Sarbanes-Oxley drive this mentality Tracking of metrics over the Project Life Cycle is critical Essentially every effort from those with a defined outcome to continuous improvement efforts can be tracked as a project/program using metrics for accountability High-Potential talent will have or will be required to take a tour of duty through Project/Program Management Hence, learning and excelling in Technical, Contextual and Behavioral skills will determine career opportunities 31
32 Business Implications Simulation Activity Take 15 minutes to read the Company Profile background materials in your book. We will now break into smaller groups to discuss near real simulated business events. 32
33 Thank you
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