Reinventing Project Management Part 1 slides
The Increasing Share of Projects Operations Projects 1800s 1900s Time 2000s Industries, Companies, Society Agricultural society Industrial society Information society
The motivation The assumption: Different projects are managed in different ways. The literature and the discipline assume: a project is a project is a project. There is no accepted framework The need: A framework to distinguish among projects Practical guidelines on how to manage projects in different ways
The Questions How to Distinguish Among Projects Dimensions? How to Classify Projects on Each Dimension? How to Manage Different Project Types? Is There More than One Way?
What Impacts Project Type? Environment Product Task Project UCP NTCP Technology Complexity Novelty Pace
Pace Complexity Risk Uncertainty Uncertainty - at the moment of project initiation Complexity - size, # of elements, variety, interconnectedness Pace - available time frame The UCP Model
Four Dimensions for Distinction Among Project Types Novelty How new is the product to customers and users Derivative, Platform, Breakthrough Technology How much new technology is used Low-tech, Medium-tech, High-tech, Super High-tech Complexity How complex is the system and its subsystems Assembly, System, Array Pace How Critical is the Time frame Regular, Fast/Competitive, Time-Critical, Blitz
The Project Diamond - Assessing a Project s Risk/Benefit and Selecting the Right Management Approach
Technology Super-High Tech Automatic Bag Handling System High-Tech Medium-Tech Array System Assembly Low-Tech Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Time-Critical Airport Construction Project Blitz Pace Denver International Airport Project
Project Success Efficiency Impact on Customer Impact on Team Business & Direct Success Preparing for Future Meeting schedule Meeting budget Changes Yield Other efficiencies Meeting requirements and specifications Benefit to customer Extent of use Customer satisfaction & loyalty Brand name recognition Team satisfaction Team morale Skill development Team member growth Team members retention No burnout Sales Profits Market share ROI, ROE Cash flow Service quality Cycle-time Organizational measures Regulations approval New technology New market New product line New core competencies New organizational capabilities Specific Success Measures
Success Dimensions Preparing for Future Business & Direct Success Project Success Impact on Team Impact on Customer Efficiency Timeframe Short Medium Long Timeframes of Success Dimensions
Importance Preparing for Future Business & Direct success Impact on Customer & Team Efficiency Low Medium High Uncertainty Relative Importance of Success Dimensions is Project- Dependent
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Time-Critical Blitz Pace The NTCP Framework
The NTCP Diamond
Definition Planning Execution Termination Revise Plans Revise Definition Classical Project Phases Modified to an Adaptive Iterative Approach
From traditional to adaptive project management Approach Traditional project management Adaptive project management Project goal Project plan Getting the job done on time, on budget, and within requirements A collection of activities that are executed as planned to meet the triple constraint Getting business results, meeting multiple criteria An organization and a process to achieve the expected goals and business results Planning Plan once at project initiation Plan at outset and re-plan when needed Managerial approach Rigid, focused on initial plan Flexible, changing, adaptive Project work Predictable, certain, linear, simple Unpredictable, uncertain, nonlinear, complex Environment effect Minimal, detached after the project is launched Affects the project throughout its execution Project control Identify deviations from plan, and put things back on track Identify changes in the environment, and adjust the plans accordingly Distinction Management style All projects are the same One size fits all Projects differ Adaptive approach; one size does not fit all
Entire Adaptive Iterative Approach Freeze Requirements Freeze Design Requirements Planning Specs Design, Build, Test Complete Revise Design Revise Plans Revise Requirements Adaptive Approach Traditional PM
Importance Impact on Customer & Team Business & Direct success Preparing for Future Efficiency Project Completion Time Relative Importance of Success Dimensions - A Matter of Time
Critical Success Factors Generic Projects Product Development Projects Project Mission Top Management Support Project Planning Project Control Client Consultation Skills Personnel Management Project Communication Client Acceptance Trouble Shooting Clear and Early Product Definition Defined Product Strategy Early Top Management Involvement High Quality Process Adequate Resources Integrated Planning Empowered and Communicating Team Voice of the Customer
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Required style Actual style Time-Critical Blitz Dr = (Pl, HT, Sy, FC) Da = (Pl, MT, As, FC) Pace The FCS Project
Technology Later design freeze More design cycles Complexity Less market data Later requirement freeze Complex organization Formality Novelty Autonomy Pace The Impact of the NTCP Dimensions on Project Management
Benefits and risks of high NTCP levels Dimension Expected benefit Potential risk Novelty Exploiting new market opportunities; leapfrogging competition; gaining first mover advantage Having difficulty predicting exact market needs; missing sales targets; attracting competitors to copy your ideas Technology Improving performance and functionality Experiencing technology failure; lacking needed skills Complexity Bigger programs, bigger payoffs Having difficulty in coordinating and integrating Pace Gaining early market introduction, mounting quick response Missing deadlines; making haphazard mistakes
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Time-Critical D = (Pl, MT, Ar, FC) Blitz Pace The World Trade Center Project
Reinventing Project Management Part 2 slides
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Time-Critical D = (Pl, HT, Sy, -) Blitz Pace The Toy Story Project
Definitions and examples of project novelty Level of project novelty Definition Examples Derivative project Extending or improving existing products or services Developing a new version of a personal computer; upgrading a production line; streamlining organizational procedures Platform project Developing and producing new generations of existing product lines or new types of services to existing markets and customers Building a new automobile generation; developing a new aircraft; creating a new generation of a cellular system Breakthrough project Introducing a new concept, a new idea, or a new use of a product that customers have never seen before The first enterprise resource planning (ERP) package; the first photostatic copying machine (Xerox); the first Walkman; the Segway personal transportation system
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Required style Actual style Time-Critical Blitz Dr = (Br, HT, Sy, -) Da = (Pl, HT, Sy, -) Pace The Segway Project
Product novelty and project success: Expectations Success dimensions and possible failure Derivative Level of project novelty Platform Breakthrough Efficiency High efficiency is critical; no room for overruns Time to market is important for competitive advantage Efficiency is difficult to achieve and may not be critical (unless competitors work on the same idea); overruns likely Impact on customer Gaining additional customers and market segments Having high strategic impact on customers; retaining previous generation customers Outstanding improvements in customer s life and work Impact on the team Team members extend their experience in quick product modifications. Team members gain technical and managerial experience in introducing new-generations. Team members explore new fields and gain extensive experience in unknown markets Business and direct success Extends life of existing products; additional revenues and cash cow current products High strategic impact on the business; expectation of years of revenues and building of additional derivatives Long-term, significant business success; may come later after initial products have been tested and refined Preparation for the future Almost none Maintaining a strategic position in the market Creating new markets and establishing substantial leadership positions
Impact of product novelty levels on project management Managerial aspect Level of product novelty Derivative (De) Platform (Pl) Breakthrough (Br) Market data Accurate market data exists from previous products and market research Extensive market research and careful analysis of previous generations, competitors, and market trends Unreliable market data; market needs unclear; no experience with similar products; customer base not defined Product definition Clear understanding of required cost, features, functionality, etc. Invest extensively in product definition, involve potential customers in process Product definition based on intuition and trial and error; fast prototyping to obtain market feedback Requirements freeze Early freeze of product requirements, usually before or immediately after project launch Freeze requirements later, usually at mid project Very late freeze of requirements, often after prototype feedback Marketing Emphasize product advantage in comparison to previous model; focus on existing as well as new customers Create product image. Emphasize product advantages; differentiate from competitors Create customer attention through new and innovative marketing techniques; educate customers about potential of product; hidden customer needs; create industry standard
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Required style Actual style Time-Critical Blitz Dr = (Pl, HT, Sy, -) Da = (De, MT, Sy, -) Pace Financial Middleware Software Project
Technology Automatic Bag Handling System Super-High Tech High-Tech Medium-Tech Airport Construction Project Array System Assembly Low-Tech Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Time-Critical Blitz Pace Denver International Airport Project
Project types based on levels of technological uncertainty Level of technological uncertainty Low-Tech Medium-Tech High-Tech Super-High-Tech Definitions Uses only existing, wellestablished, and mature technologies Mostly existing technologies; limited new technology or a new feature Uses many new, recently developed, existing technologies Key project technologies do not exist at the time of project initiation Examples Construction, road building, utilities, build-to-print Derivatives or improvements of products; new models in established industries (e.g., appliances) New systems in a fastmoving industry (e.g., computers, military systems) New, unproven concepts beyond the technological state of the art (e.g., Apollo moon landing program)
Project characteristics and technological uncertainty levels Variable Level of technological uncertainty Low-Tech Medium-Tech High-Tech Super-High-Tech Development, testing, and prototypes No development; no testing Limited development; some testing Considerable development and testing; prototypes usually used Need to develop key technologies during project effort; intermediate small-scale prototype Design cycles and design freeze Only one cycle; design freeze before start of project execution One to two cycles; early design freeze At least two or three cycles; design freeze usually at midpoint during second or third quarter Typically three cycles after the final technologies have been selected; late design freeze Project reviews Formal progress and status reviews Formal progress and status reviews; some technical reviews Technical reviews with experts in addition to formal progress reviews Extensive peer reviews by technical expert teams critical to success Management style and attitude Firm style; sticking to the initial plan Less firm style; readiness to accept some changes More flexible style; many changes are expected Highly flexible style; living with continuous change; looking for trouble Communication and interaction Mostly formal communication; scheduled meetings More frequent communication; some informal interaction Frequent communication through multiple channels; informal interaction Many communication channels; informal interaction Project manager and project team Manager with good administrative skills Manager with some technical skills; considerable proportion of academicians Manager with good technical skills; many professionals on project team Project manager with exceptional technical skills; highly skilled professionals Contingent resources 5% 5-10% 10 25% 25 50%
Resources Legend: C D A- Low-Tech B- Medium-Tech C- High-Tech D- Super High-Tech Planned Resources D: n+3 A B B: 1-2 Number of design cycles C: 2-3 n No. of cycles required to choose the final technologies B: 1-2 A: 1 Time Project Initiation Project Scheduled Completion Possible time ranges for design freeze Risk area Possible Time Ranges for Design Freeze, Number of Design Cycles, and Risk Areas for Project Outcomes
Low- and medium-tech versus high- and superhigh-tech projects Managerial issue Project type Low- and Medium-Tech High- and Super-High-Tech Managerial style Rigid, no-nonsense, get it done approach Flexible, ready to accept many changes and tolerate long periods of uncertainty Project reviews Formal, top management approval of major phase completion Formal executive reviews plus technical peer reviews by experts Saving time by overlapping phases Phase overlaps possible Phase overlaps not recommended Best contract type Development approach Fixed-price Linear development Cost-plus; fixed-price is possible at a later stage of development Spiral development Additional concerns Lower cost, on time Risk management, systems engineering, quality management
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Time-Critical D = (Pl, SHT, Sy, -) Blitz Pace SR-71 Blackbird Project
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Time-Critical Blitz D = (Br, SHT, Ar, FC) Pace Apollo Program
Space Shuttle
The Space Shuttle Program 1969 Initial proposal - to go to Mars in 1980s Encountered low priorities, Were asked to look for low-cost alternatives 1972 (August) Program approved; Shuttle only Based on known technologies - success oriented 1972 (November) Design freezeconfiguration and technologies 1978 First flight scheduled 1981 Actual first flight - 60% budget overrun 1982 System declared operational 1986 Challenger accident 2003 Columbia accident
Space Shuttle Program Initial Uncertainties First two-medium space vehicle First reusable space vehicle Liquid fuel engines and an external tank Huge 75 Ton glider 5000 Miles glide from reentry to landing First orbital flight with a live crew No crew escape system
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Required style Actual style Time-Critical Blitz Dr = (Br, SHT, Sy, Re) Da = (Pl, HT, Sy, FC) Pace The Space Shuttle Program
Space Shuttle Project Management Style Actual Style Alternative Style Success oriented Off-the-shelf items Early configuration and design freeze Low flexibility Early operational Limited communication Look for trouble Alternative technologies Late freeze; Build a small-scale prototype High flexibility Extended development Intensive communication Type C High-Tech Type D Super High-Tech
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Time-Critical D = (Pl, HT, Sy, -) Blitz Pace The Ford 2000 Project
The three levels of project complexity Project complexity Product complexity Examples of projects Assembly project Material, component, subsystem, assembly Development of a PDA, Post-it notes, design of a single service System project System, platform of systems Missile development, new computer development, new automobile model, a single building construction, restructuring a production plant Array project Array, system of systems English Channel tunnel, national missile defense system, new neighborhood construction, nationwide cellular system
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Required style Actual style Time-Critical Blitz Dr = (Pl, MT, Ar, -) Da = (Pl, MT, Sy, -) Pace The Chunnel Project
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Time-Critical Blitz D = (Pl, HT, Sy, FC) Pace The Harmony Project
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Required style Actual style Time-Critical Blitz Dr = (Br, HT, Sy, TC) Da = (Pl, MT, As, TC) Pace Mars Climate Orbiter Project
Four levels of pace Regular Fast/Competitive Time-Critical Blitz Definitions Time not critical to organizational success Project completion on time is important for company s competitive advantage and/or the organization s leadership position Meeting time goal is critical for project success; any delay means project failure Crisis projects; utmost urgency; project should be completed as soon as possible Examples Public works, some government initiatives, some internal projects Business-related projects; new product introduction, new plant construction in response to market growth Projects with a definite deadline or a window of opportunity; space launch restricted by a time window; Y2K War; fast response to natural disasters; fast response to business-related surprises
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Required style Actual style Time-Critical Blitz Dr = (Pl, MT, Sy, TC) Da = (Pl, MT, Sy, Bl) Pace The Y2K Case Project
Reinventing Project Management Part 3 slides
Benefit and Opportunity High Approve Immediately Further Consideration Low Further Consideration Reject Immediately Low High Risk or Difficulty Risk and Benefit Assessment Matrix
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Time-Critical Blitz D = (Br, MT, Sy, FC) Pace Market Watch Project
Radical Technological Innovation Incremental Technological Innovation Technology Array System Assembly Super-High Tech High-Tech Medium-Tech Low-Tech Incremental Market Innovation Novelty Complexity Architectural Innovation Modular Innovation Regular Fast/ Competitive Time-Critical Blitz Derivative Platform Breakthrough Radical Market Innovation Pace Innovation Categories and Project Types
Product Performance High-end demand Low-end demand Sustaining progress Disruptive progress Manage by Breakthrough Projects Manage by Platform Projects Time The Innovator s Dilemma and Project Management Adopted from Clayton M. Christensen, the Innovator s Dilemma, 1997 and modified by the authors
Novelty Breakthrough Platform Derivative Derivative Platform Technology Medium to Medium- Medium- Medium to Super-high-tech tech tech Low-tech Goal Strategic Strategic Operational Operational The Evolution of Project Types along the Product Life-cycle Adopted from Geoffrey A. Moore, Crossing the chasm, 1991 and modified by the authors
The Microwave Oven Patent Filed Original Microwave Oven Patent by Doctor Percy L. Spencer, US Patent No. 02495429, Filed Jan. 24, 1950
The first Microwave Oven
Characteristics of projects for various customers Characteristic Customer type Consumer (B2C) Industrial/Business (B2B) Government/Public (B2G) Examples of products MP3 player, PC, cars AS/400, B777, ERP systems Hubble telescope, FCS, Army communication Value to customer Impact on quality of life Impact on business Impact on public goals and needs Producer s objective High volume, market share Industry leadership, preferred provider Long-term relationship Project focus High focus on time, cost, and quality High focus on time and cost High focus on performance Product definition Defined by marketing; perceived customer needs, market research Continuous customer involvement Defined by or with customer Project scope: work, goals, deliverables Defined by producer Defined by producer with customer Defined by or with customer Contractual obligations No contract, internal commitment Either external contract or internal commitment Contracted project, obligations to customer Customer involvement No direct involvement; focus groups or market trials Sometimes direct customer involvement Intense customer involvement; often customer representative on the team Financing Internally financed Internally financed, or contracted by customer Financed by customer according to contract Marketing Mass marketing, advertisement; brand management; Industry image creation Competition for bids; focused on major decision makers Reliability High reliability required Reliability may be traded off for timely delivery Reliability focused on safety Product support Service availability Training, documentation, on-call support Training, documentation, on-call support
Technology Super-High Tech High-Tech Medium-Tech Low-Tech Array System Assembly Novelty Complexity Regular Derivative Platform Breakthrough Fast/ Competitive Required style Actual style Time-Critical Blitz Dr = (Br, HT, Sy, Bl) Da = (Br, HT, As, Bl) Wire and Cable Coating Project Pace
Project Management - The Two + One Processes Product Definition Process Managerial Process Technical Process When are you shooting?
Definition Planning Execution Termination Revise Plans Revise Definition Classical Project Phases Modified to an Adaptive Iterative Approach
Technology Later design freeze More design cycles Complexity Less market data Later requirement freeze Complex organization Formality Novelty Autonomy Pace The Impact of the NTCP Dimensions on Project Management
A Framework for Adaptation Category Project Types PM Impact Strategic Goal Customer Combined Business Objective Strategic, Operational External, Internal NPD, Product Improvement, Maintenance, Infrastructure, Research NCTP Novelty Complexity Technology Pace Derivative, Platform, Breakthrough Assembly, System, Array Low-tech, Medium-tech, Hightech, Super High-tech Regular, Fast/Competitive, Time- Critical, Blitz
Uncertainty of Technical Specs and Design Ideal World Real World Project Start Levels Determined by Novelty, Technology, And Other Uncertainties Requirements Freeze Specifications and Design Freeze Uncertainty of Requirements Reducing Requirements and Design Uncertainty
Entire Adaptive Iterative Approach Freeze Requirements Freeze Design Requirements Planning Specs Design, Build, Test Complete Revise Design Revise Plans Revise Requirements Adaptive Approach Traditional PM
Iterative Process of Requirements and Design Freeze Change Until Requirements Freeze Specifications and Design Freeze Product Requirements Technical Specifications Design, Build, Test Product Prototype Complete final product # of Design Cycles # of Requirements Change Cycles Initial Market Data Market Research and/or Market Testing Time Adaptive project management Traditional project management
Typical project activities across project phases Phase Definition Planning Activity Market definition Business objective Product definition Project definition Identifying project type Success and failure criteria Impact of type on project management WBS Organization Project process plan Schedule Budget Risk management Integration plan Procurement Communication Human resources Product creation plan Details Market/customer identification; Customer need Define the expected business objective Product description; Product requirements Statement of work (scope); duration; budget; PM and team Categorize a project based on strategic or operational, internal or external user, novelty, technology, complexity, pace Define management s expectation on relevant success dimensions Decide how each project category will affect project organization, processes, plans, activities, and team Break scope into detailed work packages and activities Project team structure Major phases, gates, and milestones Detailed network and timing of activities Detailed cost of project based on WBS items Risk identification and mitigation plan based on project type Timing and duration of integration activities Subcontracting and vendor management plan Reporting structure and meeting schedule Team development and training; Team motivation Initial technical specifications; product design and testing plan
Typical project activities across project phases (cont.) Phase Activity Details Execution Product requirements Refine product requirements Freeze product requirements Product building Product design Prototype building and testing Additional design cycles (redesign, rebuild, retest) Freeze product design Product building and testing Project monitoring Progress and status of budget, time, and activities performed Project replanning Update plans and make changes Termination Customer preparedness Training materials and means Commercialization Product introduction plan Project wrap-up Project summary report Next generation planning
Risk Assessment
Master plan Entire project Medium detail plans 4 to 6 Months Detailed work plans Weeks Time The Rolling Wave Planning Concept
Outsourcing Work Packages
Possible Outsourcing Regions