project zone walenta 130319
TRANSCRIPT
Optimizing business potential – managing customer requirements and expectations
Thomas Walenta, PMP, PMI Fellow
President 1998-2005 of PMI Frankfurt Chapter, Honorary Member
Board of Directors, PMI 2006-2008
Facts, Findings and Conclusions
Projects do not deliver benefits, they deliver – deliverables Project Management Methodologies do not help to deliver benefits Project Managers are not educated to deliver benefits Sponsors often ask Project Managers the wrong questions
There is a problem in delivering projects There is a problem in obtaining business benefits / expectations There is a problem in getting the right requirements from the right
stakeholders
Program Management has to complement Project Management to deliver benefits
Worldwide, organizations in business and government claim about failed projects and missed business objectives
Public Projects are more visible, hence there is more (bad) evidence Gap between Business and IT (= benefits and deliverables) Benefits not realized from projects (is it PM’s fault?) Technology works fine but organizational change did not happen
Challenged
Succeeded
Failed
Challenged53%Succeeded
29%
Failed18%
• 33% of software investments used to repair projects (Atlantic Guide)
• 56% of projects have cost overruns of >50% (Standish Group 2007)
• 84% of projects have time overruns
(Standish Group 2007: IT Projects)
A Study reveals a disturbing reality: even among projects that are delivered at least 90% on time & on budget,
majority fails to deliver 'business expectations'.
Business outcome expectations include
Delivery quality End-user adoption Business case attainment Sponsor satisfaction
Challenged53%Succeeded
29%
Failed18%
Copyright The Corporate Executive Board, www.pmo.executiveboard.com, 2009 Study 'Project Managing Business Outcome'
The top-performing projects in terms of budget and schedule compliance attain on average only 53% of their business outcome expectations.
PMI's 'Pulse of the Profession' Report reveals still unsatisfying status of project delivery and gaps between project and
benefits delivery success
Copyright PMI 2013 2013 Pulse of the Profession
Projects not meeting goals (budget, time, scope) 37,7%
Organisations showing high PM maturity 17%Organisations showing high benefits realisation maturity 12%
Low performing organisations (<60% successful projects) 22%High performing organisations (>80% successful projects) 8%
Maturity gaps high vs low performers:- PM practice 29% 6%- Benefits realisation 29% 3%- Agility 28% 4%- Portfolio Mgmt practice 28% 3%
What sets high performers apart?
- focus on talent management- drive strategic alignment- support standardized PM
Scope, budget, milestones = business benefits?
Successfull project delivered product in time & budget
Successfull program delivered benefits
A benefit is the 'desired result of an initiative undertaken to meet a need or solve a problem'
Pre-project
Are Project Managers educated to transform business goals to requirements and benefits?
• Project Manager‘s curriculums & certifications– Magic triangle scope/quality – cost – time– Soft skills to lead a team– Organizational skills – Technology
• Project life cycle covers part of total life cycle– Business case, strategic alignment is done before project– Requirements are part of business case development– Benefits often achieved after project delivered
costtime
scope
Post-projectProject
• Benefits are specific to a business / a company• Benefits delivery is often seen as a primary task of middle
management, consulting companies or not addressed specifically
• 'Benefits' is found 24 times in PMBoK Guide 5th edition, but 129 times in PgM Standard 3rd edition, having benefits management and other processes and artefacts
• Prince2 mentions benefits in the business case and benefits review plan, but MSP covers benefits management
• IPMA ICB does not have a focus on benefits management, but offers Success Criteria for projects
PM Standards and Methodology provide no real help to Project Managers in delivering benefits
?Stake-holders
(sponsors)
Stake-holders(users)
strategy
How to successfully to fullfil business expectations = deliver benefits to stakeholders?
Req
uire
men
ts
Ben
efits
Stake-holders
(sponsors)
Stake-holders(users)
strategy
Req
uire
men
ts
Program
Project Adeliverable
ScopeCostTime
Ben
efits
(sus
tain
ed)
Ben
efits
(con
solid
ated
)
Project Bdeliverable
ScopeCostTime
Discrete benefit
BenefitsIdentfication
BenefitsAnalysis & Planning
Benefitstransition
Benefitssustainment
Benefits Delivery
Understand what has to be done in addition to project management - and how it can be accomplished!
Component CDiscrete benefit
Program Benefits Management transforms stakeholder requirements into sustained benefits
Based on PMI Standard for Program Mgmt, 3rd Ed. & IBM's WWPgMM
BenefitsIdentfication
BenefitsAnalysis & Planning
Benefitstransition
Benefitssustainment
Benefits Delivery
Business Case Program
Mission Define CSFs Measurement
Structure
Benefits Realisation
Plan
Define Program
ComponentsDefineKPIs Performance
Baseline
Start, monitor & transition
components
Evaluate KPIs
Monitor organizational environment
Program definition
Program benefits delivery Program closure
Transition Plan Verify
Transition
Operational tasks
Program Lifecycle
Stake-holders
(sponsors)
Stake-holders(users)
strategy
Who influences requirements?Who can control requirements? Project or Program Manager?
Req
uire
men
ts
Ben
efits
Projectdeliverable
ScopeCostTime
Discrete benefit
Project Program Portfolio
Objective Deliver previously agreed and defined deliverables
Achieve previously agreed and defined strategic objectives, realize business benefits
Permanently attempt to reach the mission of the organization
Duration Finite, short term Temporary, might be flexible
Infinite
Focus of Mgmt
Scope and deliverables Value and BenefitsStakeholdersInterfaces and Integration
Prioritization of Projects & Management of Resources
Decision-making
In phases, based on milestones/gates
In stages/projects, based on benefits realization
In periods, based on management cycle
Sponsor Program Manager or Project Sponsor
Strategic Objective Owner (Business Exec Sponsor)
Organization (CEO, COO)
Success In scope, quality, budget, time & stakeholder satisfaction
Achieve benefits & satisfy stakeholder needs
Aggregate investment performance
What is it about Efficiency Effectiveness Agility
Differences between projects, programs and portfolios
14
Program Project
PlanControl Deliver
Scope
TimeCost
UnderstandCreate
Achieve
Benefits
GovernanceStakeholders
Program Management is outward focussed while Project Management mainly deals with project internals
Five key findings from the CEB study
Copyright The Corporate Executive Board, www.pmo.executiveboard.com, 2009 Study 'Project Managing Business Outcome'
On-time and on-budget project performance is necessary but not sufficient for attaining business outcomes.
Only a select number of project management activities drive business outcome attainment (27 out of 150+)
Project manager effectiveness is the number-one driver of business outcome attainment - critical thinking and management skills truly matter
Re-center project planning around business outcomes (define benefits elements early related to the most critical business outcomes)
Over-manage stakeholder involvement at Concept definition (establish a common understanding of victory)
Capabilities of a successful program manager are different to those of a good project manager
PMI Congress 2003 – Europe Paper Pellegrinelli, Partington and Young
Role of the sponsor is crucial to program/project success – do executives understand?
Would you expect a Program Manager to understand?
Executive workshop, Th. Walenta
1. Improving project / program management
2. Removing roadblocks
3. Providing support
4. Providing direction
5. Using checks and balances
Processes
Escalation Mgmt
Coaching
Governance / Leadership
Monitoring
One frequent trap in a global environment are Stakeholder‘s cultural differences, driving
expectations and requirements
4-Dimension Model by Geert Hofstede
Power Distance: The extent to which the less powerful members of institutions and organisations accept that power is distributed unequally
Masculinity Masculinity: The dominant values in society are
achievement and successFemininity: The dominant values in society are
caring for others and quality of life
Uncertainty Avoidance: The extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these
IndividualismIndividualism: People are supposed to look
after themselves and their direct family onlyCollectivism: People belong to ‘in-groups’ that
take care of them in exchange for loyalty
Extended by fifth dimension
www.geerthofstede.com
Power Distance
Uncertainty Avoidance
Masculinity
Individualism
Long Term Orientation
Expectations often are not-communicated requirements and will be different in different cultures
Conclusion
Program Management has to complement project management to deliver benefits
Program Managers have different capabilities than Project ManagersProject Managers do not have the methods and education to deliver benefits
Project Management alone is not delivering benefits
Requirements are influenced from different stakeholder groups and from program progress, Requirements are driving and defining benefits
Expectations may differ based on the cultural background and should be considered to become explicitly stated requirements