Innovation Project Management

By Harold Kerzner, Ph.D. | Senior Executive Director, International Institute for Learning (IIL)

We are excited to bring you this blog post on Innovation Project Management, which is adapted from Dr. Harold Kerzner’s new book of the same title. Below, he explains why this topic is so important, the types of challenges that innovation project managers face, and much more. Get your copy today! Use code KERZNERBLOG for $20 off. Order on the IIL website.

The Project Management Institute (PMI) has recently celebrated 50 years of providing the world with project management competencies. In the early years, a large portion of the competencies were established to support the Department of Defense’s (DoD’s) requirements placed upon their contractors. Most of these projects were engineering oriented and headed up by project managers with engineering backgrounds. Project sponsors were assigned to make many of the business-related decisions whereas project managers focused heavily upon the technical decisions. In many instances, contractors were opposed to the acceptance of project management practices. They would accept them after the DoD made project management a requirement to be awarded a contract.

As seen by the contractors, the bulk of the contracts were traditional or operational activities with well-defined statements of work, minimal risks, and an agreed upon budget and schedule. Executives placed limited trust in the hands of the project managers for fear that project managers may end up making decisions that were reserved for the senior levels of management. To limit the decisions that project managers could make, senior management created a singular project management approach (a one-size-fits-all methodology) that all PMs had to follow. The singular methodology was based upon rigid policies and procedures. The evaluation of project management performance was based upon how well the PMs followed the methodology. In many companies, project management was not seen as a career path slot but was instead treated as a part-time activity one had to perform in addition to one’s normal duties.

Projects related to strategic planning or strategy development were placed in the hands of functional managers because executives trusted the functional managers more so than they trusted the project managers. Functional managers were given the freedom to use whatever approaches they wish on the strategic projects and most frequently did not follow traditional project management guidelines.

By the turn of the century, companies began to reevaluate whether functional managers were the right people to manage strategic projects, especially those involving innovation. The critical issue was with bonuses. Functional managers were receiving year-end bonuses based upon the firm’s profitability over a 12-month period. As such, functional managers were using their best resources on the short-term projects that would maximize their year-end bonuses and the long-term strategic projects that would provide the firm with a sustainable competitive advantage began to suffer due to staffing deficiencies. Short-term profits became more important than long-term growth.

Competitive factors were now forcing companies to realize that survival was predicated upon growth and innovation was a critical component. All companies desire growth. But without some innovations, the opportunities may be limited. And even if the firm does have a few successful innovations, failure can still occur if the company focuses on past successes without developing a culture for continuous and sustainable innovations. Today’s industry leaders can become tomorrow’s failures without constantly challenging results.

Recognizing the need for some changes in the way that strategic projects, especially those involving innovation, were being managed, the focus naturally turned to project management applications. But there was the critical issue as to whether the core competencies used by PMs for the management of traditional or operational projects would be applicable to innovation projects. Competencies for managing traditional or operational projects are reasonably well-defined in documents such as PMI’s A Guide to the Project Management Body of Knowledge (PMBOK® Guide) and IPMA’s Competency Baseline, Version 3.0. However, for innovation projects, there is no universal agreement on the content of the competencies. Many of the traditional project management competencies are also components of innovation project management competencies, but there are others related to the types of decisions that must be made based upon the company’s core competencies for managing operational work and the type of innovation project at hand.

Over the past two decades, there has been a great deal of literature published on innovation and innovation management. Converting a creative idea into reality requires projects and some form of project management. Unfortunately, innovation projects may not be able to be managed using the traditional project management philosophy we teach in our project management courses. Innovation varies from industry to industry and even companies within the same industry cannot come to an agreement on how innovation management should work. This is the reason why project management and innovation are often not discussed in the same sentence.

Some of the challenges facing innovation project managers include:

  • Inability to predict exactly when an innovation will occur
  • Inability to identify what the cost of innovation will be
  • Inability to predict how the enterprise environmental factors will change over the life of the project
  • Working with just an idea or goal rather than a formal statement of work
  • Working with strategic/business objectives rather than operational/traditional objectives
  • Inability to predict changes in consumer tastes, needs and behaviors
  • Inability to deal with extremely high levels of risk, uncertainty, complexity, ambiguity and variability
  • Having to use a new flexible methodology or framework based upon investment life cycle phases rather than traditional waterfall life cycle phases
  • A focus on metrics related to business benefits and value rather than the traditional time, cost and scope metrics

There are many more challenges that could have been included in this list, but it does show that what we traditionally teach as competencies in our project management courses must be revised when considering innovation projects.

Competencies are the roles, knowledge, skills, personal characteristics and attributes that someone must have to fulfill a position. Most companies, especially large firms, have operational core competencies used by PMs when managing traditional projects that are burdened with formal procedures that often make it difficult to react quickly to take advantage of opportunities that can lead to a sustainable competitive advantage. These companies are generally risk averse and perform as market followers rather than leaders.

If a company wants an entrepreneurial environment, then there must exist some degree of autonomy and flexibility in the operational core competencies that impact innovation activities for both product and process improvements. Typical core competencies for an entrepreneurial environment include:

  • Inventiveness
  • Understanding business strategy
  • Understanding value propositions
  • Having a business orientation
  • Having knowledge about markets and customer behavior
  • Working with high degrees of risk, uncertainty and complexity
  • Managing diverse cross-functional teams
  • Team building skills
  • Coordination and control over activities
  • Design thinking
  • Emotional intelligence
  • Brainstorming
  • Rapid prototype development
  • Innovation leadership

Some of these competencies may apply to both innovation and traditional projects. Competencies can vary from company to company in the way that the characteristics of the competencies are integrated together and the relationship to the firm’s business model. Competencies are also dependent on the type of projects and corporate leadership.

Unlike traditional leadership, innovation leadership must include allowing for autonomy accompanied by the acceptance and support of risky ventures often in reaction to technological changes in the marketplace. Autonomy is usually measured by the speed by which the firm’s cross-functional activities are integrated to take advantage of opportunities for delivering innovative products. For entrepreneurship to work, there must be a corporate culture that supports risk-taking and experimentation without fear of reprisal if the results are not what was expected.

The success of an innovation corporate culture is measured by:

  • The number of new products created
  • The number of new products created that were first to market
  • The speed by which commercialization took place

If continuous and sustainable innovation is to occur, then innovation leadership and traditional project management must be married together and with a clear understanding of each other’s roles. Innovation defines what we would like to do, and project management determines if it can be done. The marriage also may require that both parties learn new skills and create a corporate culture that supports idea management practices.

Understanding each other’s roles is the first step in making a company more innovative. This requires that the project managers and other innovation personnel understand what they do not do now but must do for long-term successful innovation. This also includes understanding the interfacing with marketing personnel and customers.

Innovation project management is now a strategic competency necessary for the growth, and possibly survival, of the firm. Properly trained innovation project managers can be expected to make presentations to those people that reside on the top floor of the building as well as members of the board of directors.

The Innovation Project Management book was written with the intent of providing project personnel with the additional competencies needed to manage innovation projects. The book also discusses the corporate governance needed to create the appropriate culture for innovation to occur.

Get your copy today! Use code KERZNERBLOG for $20 off. Order on the IIL website.

The book is broken down as follows:

  • Chapter 1: Discusses why innovation and project management are often not discussed together and some of the links that are needed to bridge innovation, project management and business strategy.
  • Chapter 2: Discusses the different types of innovation. This is essential because each type of innovation may require a different form of project management.
  • Chapter 3: Discusses how business strategy may determine the type of innovation required and links together project management with the different types of innovation.
  • Chapter 4: Discusses the new tools that traditional project managers need to learn in order to manage innovation projects. Many of these tools are not discussed in traditional project management programs.
  • Chapter 5: Discusses why some of the processes used in traditional project management activities may not work within innovation projects without some degree of modification.
  • Chapter 6: Discusses the growth in innovation management software that project managers are now using in the front end of projects for idea management, alternative analyses and decision making.
  • Chapter 7: Discusses the new metrics, such as benefits realization and value metrics, that project managers and innovation personnel are using for the monitoring and controlling of innovation projects.
  • Chapter 8: Discusses innovations related to business models rather than products and services.
  • Chapter 9: Discussed how disruptive innovation requirements may need a completely new form of project management and the need to interface closely with the consumer marketplace.
  • Chapter 10: Discusses the roadblocks affecting the working relationship between project management and innovation.
  • Chapter 11: Discusses how some projects, including innovation activities, have degrees of success and failure rather than complete success and failure as defined by the triple constraints.
  • Chapter 12: Discusses the innovation culture that several companies have developed as well as the functional units they created to support innovation creation.
  • Chapter 13: Case studies that discuss issues with innovation.

About the Author
Harold Kerzner is Senior Executive Director with International Institute for Learning (IIL). He has an MS and Ph.D. in Aeronautical and Astronautical Engineering from the University of Illinois and an MBA from Utah State University. He is a prior Air Force Officer and spent several years at Morton-Thiokol in project management. He taught engineering at the University of Illinois and business administration at Utah State University, and for 38 years taught project management at Baldwin-Wallace University.

He has published or presented numerous engineering and business papers in addition to more than 80 college textbooks/workbooks on project management, including later editions. His latest book is Innovation Project Management: Methods, Case Studies and Tools for Managing Innovation Projects (Wiley, 2019).

Contact IIL to find out how we can support your individual, team, or organizational Learning & Development needs in 2020 and beyond. Email learning@iil.com, call +1-212-758-0177 or request a free consultation on our website.

PMBOK is a  registered mark of Project Management Institute, Inc.


Why Business Analysts and Digital Project Managers are Needed Now, More Than Ever

By J. LeRoy Ward | Executive Vice President of Enterprise Solutions, IIL 

Today, it seems it’s all about data: collecting it, analyzing it, making sense of it, and then using it in a variety of ways – for example, to gain more insight into consumer behavior, social behavior, or voting preferences, and to make better business decisions.

Data is the currency of business, and data-driven decision making, based on the many articles on the topic, is the preferred practice for managers and leaders rather than using “gut” feel alone. But using data wisely means understanding technology and how to employ it to the greatest advantage.

That’s why I was intrigued by the recent Business Week article, “Bridging the Management-Tech Gap.” It started with a story of an individual who was a journalist prior to entering business school and who now works in technology as a senior program manager at Amazon. Her role as a journalist did not require her to have much background or knowledge in working with data, which she recognized as a weakness as she examined her career aspirations. So, while earning her MBA she concentrated on strengthening her expertise in this area by taking extensive course work in the field and by seeking out internships where she would gain that experience.

According to the article, graduates such as this individual are “the new normal for business schools, which find themselves producing larger numbers of future technology workers, as well as executives who will be called on to bridge the gap between business and tech.”  That gap has to do with understanding technology and data, and how to marry the two for the benefit of an organization.

When I read the words “bridge the gap” I immediately thought of Business Analysts (BAs)—professionals who translate the requirements identified by business folks to the technical professionals who then develop systems (usually automated) to meet those requirements. A competent BA needs to be able to speak both languages (business and technology) which means they need to understand, and have experience in, both worlds.

This gap has existed for years. But that gap appears to be widening. Organizations now require professionals who not only understand technology and data analytics but are also adept in working with their business counterparts who have a need for this critical information.

The article mentions that six years ago, many business school enrollees wanted to develop leadership skills. Yet, Raghu Sundaram, Dean of New York University’s Stern School of Business, says that executives from Citigroup and Goldman Sachs told him that they had employees who either knew technology or the business, but not both. So, Stern established an advisory board and created a 12-month program – culminating in an MBA in Technology and Entrepreneurship to help prepare students for technology roles.

At the same time on the other side of the Atlantic, the dean of the IE Business School was also hearing the same message from executives at Amazon, Google, and Facebook, as well as from various consulting firms. Based on their research, IE identified two roles that companies such as these so desperately need to fill (1) product managers who oversee digital products, and (2) consultants who work with technology clients. Next year, IE will launch a 10-month tech MBA for an initial cohort of 50 students who may be able to fill such positions.

I’ve spent much of my professional career helping to develop the skills and competencies of Business Analysts and Project Managers around the world and in many different industry sectors. The roles expected to be filled by the MBA students mentioned in the Business Week article are what many current BAs and PMs (especially those in technology) are doing right now. These folks have the skills required to be successful in the digital world, but many Business Analysts and Project Managers could still improve their expertise in this area. After all, not everyone has the time, money, or inclination to go to business school, and the list of skills required keeps growing as trends like AI, robotics, and data analytics continue to mature.

What kind of skills am I referring to? Let’s take a look:

In 2018, the Project Management Institute (PMI) published a Pulse of the Profession® report titled The Project Manager of the Future: Developing digital-age project management skills to thrive in disruptive times. In it, PMI identifies the top six digital-age skills for project delivery to include:

  1. Data Science Skills
  2. Innovative Mindset
  3. Security and Privacy Knowledge
  4. Legal and Regulatory Compliance Knowledge
  5. Ability to Make Data-Driven Decisions
  6. Collaborative Leadership Skills

(As I read this report, it struck me that it’s not only PMs who need these skills—BAs do, as well. After all, PMs and BAs, as well as other disciplines, form the project teams charged with executing digital transformation programs.)

Success for BAs and PMs today, and in the future, requires that they have what PMI has termed a high Project Management Technology Quotient (PMTA), which is defined as a person’s ability to “adapt, manage and integrate technology based on the needs of the organization or the project at hand.” PMI emphasizes that “For anyone charged with making strategy reality in a world of constantly being remodeled by tech, PMTQ will be the must-have, make-or-break skill set.” Is this hyperbole or reality? Look around your organization…my guess is it’s probably the latter, not the former.

Technology is pervasive in our personal and professional lives. If you look hard enough, you can see that technology is often an important component of many projects regardless of which industry sector one works in. Understanding technology (and being able to leverage it for the betterment of the organization) requires us to be adept in it, and more importantly, how to leverage it to advance our projects and organizations.

Business Analysts, working with their Project Manager peers, have been in the business of “bridging the gap” for many years. But when that gap starts to widen, the only way to narrow it is to make sure we have the knowledge, experience, and expertise—in short, the digital-age skills—required to do so.

Both PMs and BAs need to ensure that they’re gaining, using, and refining the skills mentioned above. In so doing, they will not only be helping their organizations; they will also be ensuring their own continued professional growth and prosperity.

Contact IIL today to find out how we can support your skills’ development on an individual, team, or organizational level.

About the Author
J. LeRoy Ward (PMP, PgMP, PfMP, CSM, CSPO) is IIL’s Executive Vice President of Enterprise Solutions and a recognized thought leader, consultant and adviser in project, program and portfolio management. With more than 39 years of experience in the field, his insights, perspectives and advice have been sought by hundreds of companies and government agencies around the world.


Customer Satisfaction is a Myth!

By J. LeRoy Ward,  PMP, PgMP, PfMP, CSM, CSPO   |   Executive Vice President – Enterprise Solutions, IIL

The other day I was scrolling through my LinkedIn feed and saw that someone had posted a picture of one of those business/inspirational quotes, attributed to no one in particular, in an attempt to gain a lot of likes or some agreeable comments. It read:

“A SATISFIED CUSTOMER IS THE BEST BUSINESS STRATEGY OF ALL”

I thought about that for a second and thought, "Nope, that’s a terrible strategy"—one destined to leave a company eating the dust of its competitors as those competitors steal their customers because those customers expect more.

It's not a worthy strategy for project managers, either. We work mightily each day to deliver the “goods” to our clients through the projects and programs designed to move our companies and organizations forward. Just as companies should never try to satisfy its customers, we should never strive to satisfy our clients. Why?

Well, let’s say you just finished having dinner at a very nice restaurant. You usually leave a 20% tip, but tonight you were so impressed, you’re leaving a 30% tip.

What was it about the overall experience, and the server in particular, that compels you to do something you rarely do? Perhaps the server:

  • Was polite, friendly and greeted you warmly, maybe even by name if you had dined there before.
  • Anticipated your needs to the extent you rarely had to ask for anything. By the time you were turning around to get his or her attention, they were there attending to your needs.
  • Was knowledgeable about the menu. Any question you had about the fusion-this or the port wine-reduction-that, your server provided detailed information about the ingredients and how your selection was prepared.
  • Made sure that your dinner arrived piping hot, just the way you like it. It wasn’t sitting under some heat-lamp getting lukewarm while the server was out back having a cigarette.
  • Kept filling and refilling your water glass without being asked.
  • Ensured your bread basket was never empty.
  • Brought the check promptly, and, it was accurate. You didn’t need your accountant to double-check the numbers.
  • Wished you a fond farewell making sure you didn’t leave any personal items behind.

If you’ve ever had that kind of experience and a friend later asked you “How was your dinner?” I bet you didn’t say, “I was satisfied with the restaurant and the service.” Heck no. I bet you said something along the lines of, "That was the nicest restaurant I’ve eaten at in a long time. We had a great time. Well worth the few extra bucks for the ambience and food, and the server was top-notch.”

Now, think of your client, the one you’re managing that project for at the moment. Don’t they expect the same level of service from you and your team that you experienced at that restaurant? Of course they do.

At the end of the project wouldn’t you want your client to say, “Wow, (your name here) was simply outstanding. Delivered ahead of schedule, below budget, and gave us more than we asked for.  And, (your name here) was so professional, always on top of things and kept us informed and engaged. I’ve never worked with someone like (your name here) before. The next time we have a project to do, I’m requesting (your name here) as the project manager.” Of course you would.

Over the years I’ve noticed that clients really don’t want to be “satisfied.” Why? Because achieving satisfaction is just meeting the requirements. And even though that’s the traditional definition of quality, it’s a pretty low bar these days. Clients want to be wowed, delighted, or even astonished. They want, and expect, us to go above and beyond given the level of investment in, and the importance of, their projects.

Now, many reading this post might ask “But LeRoy, isn’t that gold-plating and isn’t gold-plating verboten in traditional quality circles?” The answer is yes, but that’s all in the past in my view. Here’s how I see it.

We can gold-plate the deliverable, or, we can gold-plate the service, or both. In my experience, clients would like both, but if nothing else, gold-plating the service (how we do something, rather than what we are delivering) is what I think people really want and appreciate. They want to know we care and are willing to move heaven and earth to get the job done. They want to see us as advocates for their cause, not just checking off requirements delivered on our traceability matrix thinking that’s what project success really is.

Of course, there are those who are willing to accept a “satisfactory” experience if the price is low enough. That’s why, despite all the whining and complaining people do regarding air travel, for example, discount airlines make tons of money packing planes to the gills. Heck, even the major airlines offer “cheap seats” if you’re willing to cram yourself into a small seat, sit way in the back, and have to pay for a beverage. You see, all these air carriers have figured out that the flying public will endure the pain of the experience for the low cost of getting from Point A to Point B. But, that’s in our “private” lives as consumers. In business, it’s a different story.

Even though organizations negotiate tooth and nail to get things at the lowest cost they can, that same client is simply not willing to accept a substandard experience regardless of the price. Whatever they paid, they want the best experience in the world.

Project success, as I’m sure you have experienced, is no longer based on meeting the triple constraints. Far from it. In fact, the authors of A Guide to the Project Management Body of Knowledge (PMBOK® Guide) have added a few more to the traditional time, cost, and schedule constraints. But I want to add what is turning out to be the most important one after scope, time, and cost: the experience. And by that I mean the experience they had when working with you as their project manager. And, it better be a good (no, great) one.

According to PwC’s Future of Customer Experience Report, seventy-three percent (73%) of those surveyed say that a positive customer experience is a key influence in their purchasing decisions. Thirty-two (32%) percent say they would terminate a business relationship with an organization after just one bad experience.

Are you any different than these folks? I doubt it. I’m not. Are your clients? No way.

Satisfaction is what the gurus of quality spoke about all those years ago. But, like everything else, the world has changed. Mick Jagger and Keith Richards once wrote “I Can’t Get No Satisfaction.” They were right, because everyone, your clients included, expects more!

More insights await at IIL's Leadership & Innovation Online Conference, opening on March 7th. Join us for keynotes with Q&A, video presentations, two self-paced courses, plus networking and PDUs.


About the Author
J. LeRoy Ward is a highly respected consultant and adviser to Global Fortune 500 Corporations and government agencies in the areas of project, program, and portfolio management. With more than 38 years of government and private sector experience, LeRoy specializes in working with senior executives to understand their role in project and program sponsorship, governance, portfolio management and the strategic execution of projects and programs.


From Traditional to Non-Traditional Projects

By Harold Kerzner, Ph.D. | Senior Executive Director for Project Management, IIL

Background

For almost four decades, companies on a worldwide basis struggled with the creation of a singular methodology that could be used to manage all their projects. The singular methodology was a necessity for senior management that was reluctant to surrender their “command and control” posture over the project management community. The methodologies were designed so that senior management could retain some degree of standardization and control from the top down through the hierarchy and that project teams would not be allowed to make decisions that were reserved for the senior levels of management. Executives, marketing and sales personnel were fearful of what power and authority project managers might obtain.

Today’s project managers do not realize the degrees of mistrust that some of us had to endure as project managers years ago. At that time, if the choice were up to executives in the contractors’ organizations, project managers would not exist, and all projects would be managed by functional management, marketing or sales personnel. But the clients and stakeholders preferred to talk directly to the project managers (rather than communications with just sales and marketing personnel) and encouraged the contractors to recognize the need for creating project management positions.

The Growth of Nontraditional Projects

Singular methodologies provided the executives with the command and control they desired but there were some risks. Executives tried to enforce the belief that the singular methodology was the solution to their project management concerns and that one-size-fits-all, which meant that every project in the company would be required to use the same, singular approach. Unfortunately, executive soon began to realize that not all projects can use the one-size-fits-all methodology. Operational or traditional projects may be able to follow a singular methodology, but strategic and other forms of nontraditional projects may have to be managed differently.

The approach that companies then undertook was to have strategic and nontraditional projects managed by functional managers that were then allowed a great deal of freedom in how they chose to manage the projects. Executives trusted functional managers more so than project managers and were not perceived as a threat to senior management.

By the turn of the century, the number of nontraditional projects was growing. More trust was being placed in the hands of the project managers and companies began recognizing that the one-size-fits-all approach needed to be modified or replaced with flexible methodologies or frameworks, such as agile or Scrum, which provided more freedom and authority to the project managers.

The Impact of the Growth in Nontraditional Projects

In some companies, the number of nontraditional projects was perhaps 200% more than traditional projects as seen in the center of Exhibit 1 below. As the need for more flexibility in project management took hold, changes began to appear in the way that some of the traditional processes were being used.

 

Exhibit 1. Changes in Our View of Project Management Processes

 

The Hexagon of Excellence

The hexagon of excellence identifies some of the changes that companies made as they began to use project management on the nontraditional projects:

  • Integrated processes: Project managers were now expected to make business-based decisions as well as the traditional technical or project-based decisions. As such, business processes were now integrated with project management processes in flexible project management approaches.
  • Culture: Project management was now recognized as processes that can and will affect the entire company rather than just specific functional areas. As such, a project management culture that supports company-wide cooperation must be developed and enforced by senior management.
  • Management Support: Management support is essential. Senior management must realize that they must actively function as project sponsors and serve on governance committees. They must also realize project governance is NOT the same as functional governance and must be willing to understand and accept new levels of authority, responsibility and decision making.
  • Training and Education: Providing training to just the project managers no longer works. If a corporate-wide project management culture is to be created, then it is possible that the entire organization may need to undergo some training.
  • Informal Project Management: Part of the training must promote informal project management practices that are predicated upon people working together and without being forced to rely upon the use of superior-subordinate relationships. Titles and levels of authority should not be critical when working on project teams.
  • Behavioral Excellence: Human resource management courses will grow. Rather than emphasize the traditional behavioral theories, the focus will be on communication, cooperation, teamwork, and trust, with trust perhaps being the most important item.

Capturing Best Practices

For decades, we relied entirely upon capturing best practices, but just those related to project management. Today, we believe that, if you are managing a project, you are managing part of a business and are expected to make business decisions as well as project decisions. Therefore, we are now capturing best practices in all parts of the business rather than in just project management. What we discover as part of our findings are now part of an information warehouse rather than just a best practices library. As seen in Exhibit 1, we are now developing a structured process by which all forms of best practices can be discovered.

Project Management Maturity Models

Typical project management maturity models, as shown in Exhibit 1 still apply, but more models are entering the marketplace. In Exhibit 1, Level 3 may be replaced with flexible methodologies rather than a singular approach. Level 4 is expected to grow significantly as companies realize that benchmarking against companies that are world class leaders in project management may give better results than just benchmarking against companies in their own industry. In Level 5, companies are demonstrating a greater willingness to implement changes in the best interest of the company rather than worrying about their own power base and authority.

Networked PMOs

Companies have recognized the need for PMOs for more than three decades. However, there were significant power struggles for which executive would maintain control of the PMO. There was a belief that “information is power” and whichever executive would control the PMO would become more powerful than his/her contemporaries.

As nontraditional projects grew, there was an apparent need for multiple PMOs. The situation becomes more complex as companies began expanding globally and recognized the need for geographically dispersed PMOs. But some executive still felt threatened by the PMO concept and opted for the creation of “master” and “subordinate” PMOs. Today, this concept seems to have diminished as companies have recognized the importance of networking their PMOs as shown in Exhibit 1.

Conclusion

There is significantly more information we could have discussed related to each component in Exhibit 1 resulting from the growth of nontraditional projects. But what appears obvious is that change is happening and appears to be for the betterment of the project management community. Where project management will take us, we do not know. But what is certain is that there is a growth in the use of nontraditional projects and the accompanying project management processes.

Have a question for Dr. Kerzner? Leave your comment below.

 

About the Author
Harold Kerzner (M.S., Ph.D., Engineering, and M.B.A) is IIL's Senior Executive Director for Project Management. He is a globally recognized expert on project management and strategic planning, and the author of many best-selling textbooks including Project Management: A Systems Approach to Planning, Scheduling, and Controlling and Project Management 2.0. Dr. Kerzner has previously taught project management and business administration at Baldwin-Wallace University, engineering at the University of Illinois and business administration at Utah State University. He obtained his industrial experience at Thiokol Corporation where he held both program management and project engineering responsibilities on a variety of NASA, Air Force, Army, Navy, and internal R&D programs.

PMBOK and PMI are registered marks of the Project Management Institute, Inc.


Can the Words "Innovation" and "Project Management" Be Used In The Same Sentence?

By Harold Kerzner, Ph.D. | Senior Executive Director for Project Management, IIL

INTRODUCTION

Companies need growth for survival.

Companies cannot grow simply through cost reduction and reengineering efforts.

Companies are recognizing that brand loyalty accompanied by a higher level of quality does not always equate to customer retention unless supported by some innovations.

According to management guru Peter Drucker, there are only two sources for growth: marketing and innovation [Drucker, 2008]. Innovation is often viewed as the Holy Grail of business and the primary driver for growth. Innovation forces companies to adapt to an ever-changing environment and to be able to take advantage of opportunities as they arise.

Companies are also aware that their competitors will eventually come to market with new products and services that will make some existing products and services obsolete, causing the competitive environment to change. Continuous innovation is needed, regardless of current economic conditions, to provide a firm with a sustainable competitive advantage and to differentiate themselves from their competitors. The question, of course, is “How do we manage innovation needs?”

INNOVATION AND PROJECT MANAGEMENT

For years, there has been a debate as to whether the words “innovation” and “project management” should be used in the same sentence. Some researchers argue that project management and innovation management should be treated as separate disciplines.

Innovation requires:

  • An acceptance of significant risk, more so than in traditional project management
  • A great deal of uncertainty
  • A focus on strategic goals and possibly no business case exists
  • Unknown constraints and assumptions that continuously change
  • Decision making in an unfamiliar landscape
  • A creative mindset
  • Collaboration across all enterprise organizational boundaries
  • Significant interfacing with customers in every market segment
  • A different leadership style than with traditional project management
  • A set of tools different than what is being taught in traditional project management courses

Some tools typically used when managing innovation include:

  • Design thinking
  • Storytelling
  • Decision-making flow charts
  • Value proposition
  • Business model thinking
  • Wall of ideas with post-it notes
  • Ideation
  • Prototyping, perhaps continuously

Innovation management, in its purest form, is a combination of the management of innovation processes and change management. It refers to products, services, business processes, and accompanying transformational needs, whereby the organization must change the way they conduct their business. The change can be incremental or radical.

Project management practices generally follow the processes and domain areas identified in the Project Management Institute (PMI)® A Guide to the Project Management Body of Knowledge (PMBOK® Guide). Strategic innovation follows other processes such as strategizing, entrepreneurship, changing and investing [de Witt & Meyer, 2014].

But now, companies are realizing that innovation strategy is implemented through projects. Simply stated, we are managing our business as though it is a series of projects. Project management has become the delivery system for innovation activities, but the integration is complex and varies with the type of innovation project.

PROJECT MANAGEMENT IS A BUSINESS DELIVERY SYSTEM

Today’s project managers are seen more so as managing part of a business than managing just a project. Project managers are now treated as market problem-solvers and expected to be involved in business decisions as well as project decisions. End-to-end project management is now coming of age. In the past, project managers were actively involved mainly in just project execution with the responsibility of providing a deliverable or an outcome. Today, with end-to-end project management, the project manager is actively involved in all life-cycle phases including idea generation and product commercialization.

For decades, most project managers were trained in traditional project management practices and were ill-equipped to manage innovation projects. Today, attempts are being made to integrate all of this into a single profession, namely innovation project management (IPM).

PROJECT MANAGEMENT LITERATURE

There exists a plethora of literature on project management. Unfortunately, most of the literature focuses on linear project management models with the assumption that “one size fits all.” While this may hold true in some industries and for some projects, the concept of “one size fits all” does not apply to projects involving innovation. Innovation varies from industry to industry, and even companies within the same industry cannot come to an agreement on how innovation management should work.

The situation gets even worse when companies try to use traditional project management for business processes such as business model innovation, where you have the greatest degree of risk and uncertainty, where traditional risk management planning will not work, and where a great deal of flexibility is needed for decision making. Different project management approaches, many requiring a higher level of flexibility, will be dictated by the level of technology, the amount of product versus product changes, and whether the impact is expected to disrupt the markets.

Project managers need flexibility in their ability to select the appropriate tools for their projects and customize the processes to fit the needs of the projects. This holds true even for those projects that do not require innovation. The future will be flexible project management models such as those used in Agile and Scrum projects.

“Managers need to recognize the type of project at the start, resist institutional pressure to adapt traditional ‘rational’ approaches to all projects and apply an appropriate approach – one tailored for the type of project” [Lenfle & Loch, 2010]. Traditional project management does not distinguish between types of projects. Articles are appearing in literature that propose a methodology to classify projects to guide the design of a suitable project management model [Geraldi et al., 2011].

We have learned from Agile and Scrum that flexible project management approaches are necessary for many projects. This same thinking will be required for innovation projects. We will need different tools and different skill sets than most project managers currently use. 

Have a question for Dr. Kerzner? Leave your comment below.


About the Author
Harold Kerzner (M.S., Ph.D., Engineering, and M.B.A) is IIL's Senior Executive Director for Project Management. He is a globally recognized expert on project management and strategic planning, and the author of many best-selling textbooks including Project Management: A Systems Approach to Planning, Scheduling, and Controlling and Project Management 2.0. Dr. Kerzner has previously taught project management and business administration at Baldwin-Wallace University, engineering at the University of Illinois and business administration at Utah State University. He obtained his industrial experience at Thiokol Corporation where he held both program management and project engineering responsibilities on a variety of NASA, Air Force, Army, Navy and internal R&D programs.

REFERENCES

Drucker, P. F. (2008). The Essential Drucker. Reissue Edition, Harper Business, New York.

Witt, B. de, & Meyer, R. (2014). Strategy: An international perspective, Cengage Learning EMEA, Andover.

Lenfle, M. & Loch, C. (2010). Lost roots: How project management came to emphasize control over flexibility novelty, California Management Review, 53 (1), 32 - 55.

Geraldi, J. G., Maylor, H. & Williams, T. (2011). Now, let’s make it really complex (complicated): A systematic review of the complexities of projects. International

Journal of Operations & Production Management, 31 (9), 966 - 990.

PMBOK and PMI are registered marks of the Project Management Institute, Inc.


Project Managers Need to Focus on the User Experience – Their Own!

By J. LeRoy Ward,  PMP, PgMP, PfMP, CSM, CSPO   |   Executive Vice President – Enterprise Solutions, IIL

Odd title, I know. What does it really mean? Let me phrase it as a question:

What’s it like to work with, or for, you? In other words, what’s the “experience” you provide to “users” when they engage with you?

Today, UX, or user experience, is of paramount concern among product manufacturers and service providers. Take Amazon, for example. As a Prime User, the UX of logging on, ordering, and receiving products within two business days (here in the U.S.) is almost “frictionless” as they like to say. It’s quick, easy, and accurate.

Returns? Not a problem. Tracking an order? Piece of cake. Delivery to my mailbox (or door if the package is too big)? The United States Postal Service has it down pat, and they even deliver on Sundays! That’s the UX that Amazon provides its customers.

But UX is also key in service delivery as well. Checked into a hotel recently, or rented a car, or went to the grocery store, or went to the bank? What was that like? What technologies have these industries instituted that made your experience better, faster, or more convenient? Okay, you get the point. Now, let’s turn to you.

What type of UX do you provide to your client? Is it frictionless?

For example, do you:

Respond quickly to questions or issues?
Always have the latest progress information on hand?
Anticipate their needs and reach out when required?
Share the bad news along with the good so they always know where they stand?
Show up on time, prepared for whatever meeting or event is scheduled?
Have a positive attitude?
Show creativity and flexibility in handling project matters?
Conduct your affairs with a high level of integrity and honor?
Place the client’s needs above yours or your company’s?
Do what you say you’re going to do, and in a timely manner?

On the Net Promoter Score survey, when asked “Would you recommend [your name here] to a family member, friend, or business colleague?” would your client answer "yes"?

If you can answer yes to all the questions above, including the Net Promoter Score, then your personal UX is at a very high level and you’re doing well. If not, you might want to start thinking about another approach.

What about your team? How would they evaluate your UX as it relates to your relationship with them?

In almost every Project Management 101 course and text where we, as project managers, are advised, if not admonished, to negotiate for the best team members we can find in our organizations, it’s as if there are folks out there who would jump at the chance of being on our team. Just like when you were a kid and you were waiting to be selected for the best baseball team in your local sandlot games.

But are your work colleagues really “hoppin’ from one foot to the other” waiting for you to negotiate hard to get them on your team? It depends. It depends on how you treated them the last time they were on your team.

I have always counseled project managers to ask themselves one key question regarding team members. “Why would anyone want to be on your team?” One thing I always did on projects was to meet with each team member individually and ask them what they wanted to get out of working on this project. If I could help them meet their goals I did; if not, I’d let them know.

At least they knew I was making an attempt to help them grow professionally. But that’s not all of course. Treating people with respect is just table stakes in this era. People want to have fun, be creative, and come to work excited about making a difference. If you can provide that type of environment, your UX will be off the charts.

How do you know what your UX is? Start by asking your sponsor and manager. Then have some “crucial conversations,” as some pundit once wrote, with those closest to you whom you know will be honest. If you don’t like what you hear, you can start working on those soft skills that really make a difference.

Hitting project “home runs” is not just about meeting deadlines and budgets; it even goes beyond bringing benefits to fruition. It’s making people feel great about their experience working with, or for, you. 

In the end, as another maxim puts it, "people may never remember what you did, but they will always remember how you made them feel."

That’s your personal UX. Make it the best it can be.

Ready to improve your personal UX? IIL can help. Take a look at our Business Skills courses, or request a free consultation.


J. LeRoy Ward is a highly respected consultant and adviser to Global Fortune 500 Corporations and government agencies in the areas of project, program, and portfolio management. With more than 38 years of government and private sector experience, LeRoy specializes in working with senior executives to understand their role in project and program sponsorship, governance, portfolio management and the strategic execution of projects and programs.


What is Project Management?

By J. LeRoy Ward,  PMP, PgMP, PfMP, CSM, GWCPM, SCPM   |   Executive Vice President – Enterprise Solutions, IIL 

What do the Panama Canal and the development of the Boeing 787 Dreamliner have in common?

At first glance, you might say “absolutely nothing.” But, they have a lot in common. Both were the outcomes of projects. And although vastly different in every respect, the Panama Canal, and the Boeing 787 share two characteristics:

  1. Each is unique. There’s only one Boeing 787 Dreamliner and there’s only one Panama Canal.
  2. Each is the result of a temporary endeavor. In short, each had a definite beginning and an end.

Once completed, of course, the Panama Canal became operational, and once developed, the Boeing 787 went into service with many more being manufactured as I write this. In short, the design and construction of the Panama Canal, and the design and manufacture of the Boeing 787 were projects.

And these projects were led by competent and highly trained individuals, appropriately named Project Managers, who applied knowledge, skills, techniques, and tools, to all the project activities to produce the end result that met the requirements. That’s called Project Management.

Let’s get a bit more formal. According to the Project Management Institute’s (PMI)® A Guide to the Project Management Body of Knowledge (PMBOK® Guide), project management is defined as "the application of knowledge skills, tools, and techniques to project activities to meet the project requirements."

Projects have been around for thousands of years. Ever see a picture of the Pyramids of Giza? That’s a project. How about the Great Wall of China? Yup, another project. What about the International Space Station? You guessed it…another project.

Projects come in all shapes and sizes. Have you planned a summer vacation lately? Well, that’s a project. And, how about all those home “projects” that take up our evenings and weekends? The name says it all, doesn’t it?

What are you doing at work these days? Are you working with a group of folks to get a particular product to market, developing a new app, or launching a marketing campaign? If you are, you’re working on a project. Projects are everywhere.

As projects become larger and more complex we break them down into various phases such as Initiating, Planning, Executing and so forth. Every industry has their project “life cycle” as it’s called. We do so because it’s a lot easier to estimate and control our work when we break it down into pieces, rather than trying to grapple with the whole thing at once.

We might even use certain sophisticated tools to help us schedule our project, or analyze risk to avoid trouble. All these activities are part of project management.

If the work you’re doing conforms to the two characteristics above, guess what, you’re working on a project, whether you call it that or not. And, the activities you’re engaged in to get the job done successfully is called project management. Finally, if you’re “leading the charge," you’re the Project Manager.

So, welcome to the wonderful world of projects and project management. You’re in good company because there are millions more just like you - people who are working on projects every day, and may not have knowledge of formal project management methods. Take the next step by exploring our other blog posts on Project Management, and enrolling in introductory Project Management course from IIL.

New to Project Management? Start with a Project Management Fundamentals course from IIL

J. LeRoy Ward is a highly respected consultant and adviser to Global Fortune 500 Corporations and government agencies in the areas of project, program and portfolio management. With more than 38 years of government and private sector experience, LeRoy specializes in working with senior executives to understand their role in project and program sponsorship, governance, portfolio management and the strategic execution of projects and programs.


Dr. Harold Kerzner Q&A: How Changes in Project Management Are Supporting Agile and Scrum

This past November as part of IIL's IPM Day online conference, Dr. Harold Kerzner delivered a keynote on "How Changes in Project Management Are Supporting Agile and Scrum." 

The keynote discussed how, over the years, project management has undergone continuous improvement efforts by extracting best practices from other management practices such as Six Sigma. Now, the reverse is happening: other techniques are extracting some of the best practices from project management for their own continuous improvement efforts. This appears to be true for continuous improvements in Agile and Scrum activities. The landscape in project management is continuously changing for the better!

Following Dr. Kerzner's keynote, we received hundreds of questions for his live Q&A portion (so many that they couldn't be addressed in the allotted 15 minutes!) and we are excited to share highlights here, organized in the following categories:

  • Agile and Scrum 
  • Project Managers of the Future 
  • Reporting and Metrics 
  • Portfolio Management
  • Public Sector
  • Challenges
  • Cultural Differences 
  • Project Failure and Success 
  • Benefit Harvesting
  • Miscellaneous

Content has been edited and condensed for clarity.

AGILE AND SCRUM

Can the traditional PM role still exist in an Agile world?

Yes, because some projects can be handled better using traditional project management.

How do we plan effective scheduling using framework, v. traditional and agile?

In traditional project management, everything is linear and we try to lay out a complete schedule at the initiation of the project. With flexible frameworks such as Agile and Scrum, we work with smaller units of time that allow us more flexibility in the adjustment of scope to fit a schedule. In Agile, we tend to fix time and cost, and allow scope to change as needed. With traditional project management, scope is fixed and we tend to allow cost and schedule to change as needed.

How can Scrum or Kanban (agile methodologies in general) methods fit the existing PMI® framework (i.e. PMBOK® Guide)?

My personal belief is that they do not fit, at least well, if you believe that all processes and activities identified in the PMBOK® Guide must appear in each methodology. The future will be flexible approaches that are customized to each user or client. PMs may discover that only 20% of the PMBOK® Guide is needed, as an example.

Is there a way to transition from waterfall to Agile or is it "all in"? Do we have to go to an agile framework and shed all waterfall oriented controls?

My experience has been that you will have a great deal of difficulty going straight to Agile without first adopting some form of project management. Then, it is up to the company, based upon their types of projects, to decide how many of the tools and practices of traditional project management should be carried over. There are some practices that are common to both.

Agile always offers stakeholders the upper hand in modifying the scope after each sprint. As a project manager, how can we limit the change so that we don't want the team to modify the code after every demo?

I understand your concern, but what are the alternatives especially if you might want repeat business from this client? My personal feeling is that I can live with frequent scope modification as opposed to continuously explaining cost overruns and schedule slippages.

What is the best approach to managing Domain name projects? Would it be better to follow the waterfall traditional project management approach or the Agile/Scrum method?

This is a tough question to answer because it depends on the type of project, size, nature of the project, how many people, whether it will involve change management, etc…

Does the Agile & Scrum framework reduce/omit the requirement of a traditional PM in the IT Industry?

I have to be non-committal, but I believe that each company must make their own decision on this. Regardless of the industry, there are always going be projects that work well using traditional project management practices.

Thank you for explaining the difference between Benefits and Values. This is expected by the executives. What are your recommendations for being certified in Agile and Scrum and is it value added for project managers or the leadership managing project managers as well? If so, which designation do you recommend? Thanks.

Being an educator for five decades, I am a believer in life-long learning. Having said that, I recommend obtaining the additional certifications as long as they will benefit your career goals.

PROJECT MANAGERS OF THE FUTURE

Should a company have a methodology or is it better to allow project managers to manage as they want?

Great question! I believe in the future that methodologies will be eliminated and replaced with tools such as forms, guidelines, templates and checklists. I have one client that has 50++ tools. At the beginning of a project, the PM and some team members select the tools needed and then create a customized methodology or flexible methodology or framework that best fits the client’s needs.

I just got my PMP®. Given the future you are envisioning what do you recommend I begin with?

What I normally tell my students is to work for a small company where, as a project manager, you manage everything and really get to understand project management. Working in a large company, you might manage only a small part of a project and never see the big picture of project management. Start small and then climb the ladder.

What can older project managers do to extend their careers? Are there other fields (e.g. training) that can be pursued?

If you are set in your ways and refuse to be removed from your comfort zone, you have a problem. If you are willing to change, then education is the start.

What are the top 3 skills that define the project manager of the future? How should new professionals seek to gain these skills. Thanks!

For more than 40 years of teaching project management, I have emphasized that the single most important skill is the ability of the PM to manage pressure and stress, not only what is placed upon them, but also what is placed upon the team. As for 2nd and 3rd place, I would pick team building skills and decision-making skills.

How will AI/machine learning affect the role of a project manager and skill sets needed?

I wrote a blog last year on AI and Project Management.

How do you see Project Management and Organizational Change Management working together in the future to achieve benefits and value in projects?

I see project managers staying on board the project and becoming the change agent. They will then be responsible for implementing the changes needed to extract the benefits.

REPORTING AND METRICS

Tools such as EVM (Earned Value Management) provide a metric for schedule and budget. What type of metrics are you seeing as proven practices for measuring benefits and value?

There is no single metric for either benefits or value. Value metrics are made up of attributes or components. For example, I saw an IT company use a value metric that had 5 components: time, cost, functionality, safety protocols, and quality of design. Each component had a weighting factor assigned to it and the totals were rolled up and reported in one dashboard metric.

Executives are interested in KPIs (Key Performance Indicators) which can be loaded. What is your advice in linking dashboards, metrics and KPIs?

I agree that a linkage is necessary. However, I also believe that you should give executives dashboards that provide them with the information they need rather than the information they want. If you have a metric library that has 50 metrics, I would not create dashboards to display all 50 metrics. I would instead ask the executives, “What decisions do you expect to make, and what metrics do you need to help you make those decisions?” Providing executives with too much information is an invitation for executive micromanagement.

Dr. Kerzner said that teams are now allowed to use multiple tools. How then do you balance this with the need to maintain standards so you can successfully create consolidated dashboards?

There will be standards for each tool used. The standards for dashboards involve space, colors, images, aesthetics, etc… but not specifically the information displayed, specifically the metrics. This will be customized for each client.

My understanding is that a dashboard is operational in nature to track the progress of project throughout its lifecycle while a project scorecard will address the need to link up the project objectives, benefits and values to the strategic objectives of the organization?

You are correct. This is how I teach it as well.

PORTFOLIO MANAGEMENT

Lots of times decisions on portfolio made on projects, e.g. with NPV which is purely financial measures and when one looks at more attributes (value creation) upfront, it is likely possible that the optimized portfolio may spit out potentially different set of projects to execute on. This is optimization exercise and companies struggle. Your guidance to us on how to overcome this situation?

Great question. There are financial values and nonfinancial values that need to be considered. Unfortunately, as I see it, perhaps the weakest part of project selection is in the criteria we use which appears to still be financial. As part of business case development, we are now stressing that organizations learn how to prepare a benefits realization plan as part of the business case. Once this happens, we should have a much clearer picture of the realistic benefits and value possible. But how long this will take for companies to learn, I do not know.

We are a Marketing Services Provider whose clients include many large retailers and financial institutions. Of course, we are always working with limited resources. What is your take on portfolio management for a consulting company like ours?

Portfolio management begins with identification of your largest or most critical clients and what projects need to be undertaken to maintain their business. Using techniques like Kaplan and Norton’s Balance Scorecard is a great start at doing this.

PUBLIC SECTOR

I work for the Public sector in Cape Verde, a small African County in the west African coast. Considering the projects complexity in the public sector, involving many stakeholders, changing scope and short cycles, what would be your thoughts on a better approach to use Project Management methodologies in this area and how agile practices can help? Thank you Dr. Kerzner.

Methodologies are not necessarily the solution to your problems. With traditional project management, sad to say, we often try to stay as far away as possible from stakeholders and clients during project execution for fear of scope changes they may request and stakeholder meddling. With techniques such as Agile, we welcome client/stakeholder involvement and expect these people to have at least a cursory understanding of project management and Agile practices. In other words, it appears that in Agile and Scrum clients and stakeholders appear to have a much better understanding of their roles and responsibilities on the project. This should make life better for the PMs.

What is your experience or best practice in managing projects in the public sector in relation to Benefits and Value management?

Public sector projects do not have profit motives, and this changes the picture a bit. But there are other challenges in the public sector that impact benefits and value. I recommend you get a book entitled Public Sector Project Management by Wirick. It is a John Wiley publication and a good book.

How to benchmark business in government monopoly?

David Wirick wrote a book entitled Public Sector Project Management. The book is published by John Wiley. It shows the differences between public and private sectors, and you can easily then see the benchmarking issues.

CHALLENGES

What to do when we start a project in a company that does not have basic ideas about projects?

This is an invitation for disaster. My recommendation is education, and this includes senior management.

How to "sell" to upper management the need for training in PM for the executives?

My experience is that people external to the organization, such as consultants, have an easier time convincing them of the need for training. Executives may fear that internal people promoting training are trying in some way to “feather their own bed” so to speak.

What to do when Executive-Level management doesn't want to attend education rollout strategies?

You need to find at least one executive champion to help you convince other executives of the importance of this. If all of the executives are in agreement that education at their level is not needed, I would update my resume.

What if your PMO refuses to adjust its methodology for business needs and only looks at itself first? How does an individual PM drive that change?

You may need to have a champion at the executive levels to assist you. All you need to find is just one executive to champion your cause. Otherwise, you will have difficulty.

What is the biggest challenge in project management?

The biggest challenge is overcoming the belief that companies have that one-size-fits-all with regard to a PM methodology. In the future, methodologies must be customized for each client. PMs need flexibility.

Do you have any recommendations for managing (and motivating) IT employees (technology or app dev folks) that are resistant to the change that digital transformation requires?

The architects of the corporate culture are the people that reside on the top floor of the building. If workers are afraid or being removed from their comfort zone, then there is a point where senior management must step in and “force” the changes to take place.

If the Sponsor refuses to attend or be a part of the project, should the PM propose for project cancellation rather than making decisions on behalf of the Sponsor, when he/she is not authorized?

I have lived through this scenario in a multitude of companies. What I tell PMs to do, is to make the decision yourself, and then e-mail the sponsor with your decision asking if they agree or disagree with your decision.  This basically forces them to act because there is now a paper trail.

CULTURAL DIFFERENCES

Dr. Kerzner - thanks for the presentation. When you speak to the politics/religion/culture gaps - how did your daughter bridge the gaps between cultures? What other suggestions do you have to overcome these in short order if thrown into a global program?

My daughter learned from her global team members. They provided her with some educational insights. She wasn’t embarrassed to ask her global team members for advice and recommendations.

I've worked with multi-cultural teams and hit roadblocks due to how decisions are made. How do you suggest consensus be achieved across teams?

Believing that consensus can be achieved is probably wishful thinking. At the onset of a project, you must get the team to understand that you do not expect consensus on every challenge and that the team must go along with the vote or any other process you use. People must be prepared early on for disagreements and how decisions will be made.

How to measure whether a Project Manager has enquired sufficient Politics, Religion and Cultural skills?

At present, I do not see any measurements being made. However, in the future I expect to see metrics on projects measuring political exposure, religious exposure and cultural sensitivity. These metrics would be reported on dashboards along with other metrics such as time, cost and scope.

How to prioritize when there is a clash between benefits vs. politics and culture?

This is why we have project sponsors and governance committees to assist in the prioritization of constraints and sometimes alternatives.

PROJECT FAILURE AND SUCCESS

You mentioned that you must have a failure mark for a project...what if failure is not an option?

If failure is not an option, then you must carefully look at the tradeoffs and alternatives. This is a common occurrence on projects that must abide by regulations such as projects for OSHA, EPA, Health and Safety, etc…

RE: Project Health Checks - What is an example of establishing a Failure Criteria, versus establishing a Success Criteria?

You are creating a new product for marketing and the sales force. The exit criteria might be to stop working on the project when the expected sales price reaches a certain value. There are degrees of success based upon the profits expected. The success criteria, which could be a mere image of the exit criteria, could be to develop a product than can sell for less than a certain dollar value.

Often, we set up the success factors for the finished project. By going agile it will be so very important to break down those success factors into smaller ones and going into a stepwise approach. How shall I connect these to stakeholders?

Every project can have a different definition of success. When working with stakeholders, step #1 is having an agreed upon definition of success. Step #2 is then working with the stakeholders to decide upon the metrics and critical success factors you will use to confirm throughout the project that success is achievable. This should be done at the beginning of the project and reported on dashboards periodically.

BENEFIT HARVESTING

What's the benefit of doing benefit harvesting? What's the value to the company?

The results of a project are deliverables and outcomes. These, by themselves, have very limited value unless someone can harvest the benefits expected from them.

Dr. Kerzner, can you recommend any resources (authors, journals, etc.) to help educate PMs on the topic of Benefit Harvesting?

There are some books on Change Management that include benefits harvesting. I wrote a white paper for IIL on Benefits Realization and Value Management.

If benefit harvesting is part of project management then don't you think it is taking a big piece of program management?

Yes, it is a massive piece of project management but many people haven’t realized it as yet.

Who exactly is harvesting benefits from the project in business environment? If the successful project outcome is then transferred to operations, it seems that operations colleagues are those that are harvesting benefits from the successful project.

Sales and marketing may be responsible for harvesting the benefits of new products created through projects. IT may be responsible for harvesting the benefits of new software to be used. Other projects that lead to change management initiatives may be transferred to specific groups in operations.

Hi Harold – great Keynote! Within organizations that commit to having project teams involved in benefit harvesting and value extraction, is there evidence that the number of projects delivered within that organization is reduced? If so, does the value delivered with this expanded focus outweigh what could be achieved by delivering more projects?

When companies learn how to create metrics to measure and report benefits and value, it will become easier to establish a portfolio of projects that maximizes the expected benefits and value to the firm. In this regard, the high value or high benefits projects will be prioritized. We will also then eliminate the “pet” projects of senior management that may or may not produce benefits. I would expect the number or projects to be reduced.

Dr. Kerzner, shouldn't benefit harvesting be done before the project even begins, to identify the benefits and value the project will provide? Or, is benefit harvesting different from the process of Cost/Benefit Analysis, finding the ROI etc.? Thank you!

Benefits harvesting cannot be done until there are outcomes and deliverables; i.e. completed projects. Also, cost/benefit analysis is based upon a “guess” as to what the benefits will be, and usually the benefits are explained qualitatively, not quantitatively. The true C/B ratio and ROI cannot be determined accurately until after benefits harvesting.

Do we need to wait till we complete the project and realise the deliverable, then work on harvesting the benefits and then sustaining the values? Is it a linear relationship between those three elements of deliverables, benefits and values?

Very good question. I explained it as though it is linear. Actually, it is nonlinear if we work on projects where we can establish metrics for benefits and value and perform the measurements throughout the project. Unfortunately, most companies are not that mature yet and tend to perform benefits realization and value management after the project delivers an outcome. Agile and Scrum projects are an exception.

Great presentation, thank you. What do you see as the differences, if any, between change management and benefits harvesting?

Change management includes all of the activities that may have to be done at project completion to harvest the benefits.

MISCELLANEOUS

Great information. The only one I wasn't too clear on is the Impact of Mergers & Acquisitions on Project Management. Can you briefly summarize that one?

Whenever there are M&A activities, there will be a landlord and a tenant. Believing that there will be equal partners is not going to happen. The problem is when the landlord dictates to the tenant how project management should work even though the tenant has a superior approach to project management. Developing an agreed-upon approach that both parties will accept will take time.

If it takes years to realize benefits, how can executives decide if the exit criteria are applicable?

The exit criteria identify when to pull the plug on the project. The exit criteria on the project must be monitored throughout the life of the project, not only to see if it is still valid, but to see if it needs to be updated or changed.

I don't think it depends on culture. I think it’s understanding the way people solve problems. Bridging adaptive and innovative problem-solving styles trumps culture.

I agree with you. There are books being written on a topic called “Design Thinking” which relates to innovation project management. Design thinking requires a total acceptance by the culture of a firm and may cause a new culture to be created that focuses on collaboration and decision-making. I am researching this topic now.

Have a question for Dr. Kerzner? Leave your comment below.


Harold Kerzner (M.S., Ph.D., Engineering, and M.B.A) is IIL's Senior Executive Director for Project Management. He is a globally recognized expert on project management and strategic planning, and the author of many best-selling textbooks including Project Management: A Systems Approach to Planning, Scheduling, and Controlling and Project Management 2.0. Dr. Kerzner has previously taught project management and business administration at Baldwin-Wallace University, engineering at the University of Illinois and business administration at Utah State University. He obtained his industrial experience at Thiokol Corporation where he held both program management and project engineering responsibilities on a variety of NASA, Air Force, Army, Navy and internal R&D programs.

PMI, PMBOK, and PMP are marks of the Project Management Institute, Inc.


Why Project Managers Need to be Agile

As an agile and project management instructor and practitioner, I am asked quite often, “Should I worry about this agile thing?” or “Why do I need to be agile?” Many project managers are seeing the trend towards agile by many companies and are worried they may not be ready for the transition — and they should be!

As companies look for a way to avoid the problems with a traditional project approach, they are finding that agile looks promising. So if companies are moving in that direction, project managers should be looking at how they fit into the agile environment.

The first big problem in the transition is that there are no direct correlations to the project manager position in the agile environment. This alone should be a warning sign. If a project manager isn’t getting ready for this transition by picking up new “agile” skills, they are going to be left behind, or worse, let go. Smart project managers are looking to understand and develop these skills before the transition takes place.

What skills are we talking about?

To begin with, the traditional project manager skills include organizing, planning, negotiating, defining scope, managing change, motivating, facilitating, communicating and more.

Do these skills go away in an agile environment? 

Many are still used, but some are downplayed for other skills. For example, detailed planning up front and then following this detailed plan to the letter for the rest of the project is not needed or wanted in the agile environment. On the other hand, flexibility, adaptability, and teamwork, are at the top of the list.. These are not the skills we learn in traditional project management. So taking the time to learn about, develop, and practice these skills now –before they are required—is beneficial.

What else do project managers need to be concerned with?

Since the job functions are different, where do we fit in and how do we ensure there is a place for us? One of the most difficult things for a traditional project manager is thinking agile. Agile isn’t just another methodology that if you follow the process, you will be successful. It is a new way of thinking, a new way of working. If we have a new way of thinking and working, then we need to start changing now.

The position of project manager doesn’t exist in the minds of many agilists.  If you are to transition, you need to figure out which agile role you feel best suited to or can become best suited to.  In some organizations, project managers are converted into scrum masters, facilitators or coaches; in others they are product owners; in still others they are no longer needed and released.  Each of these has its inherent difficulties.

Let’s look at the scrum master/facilitator/coach position. In this position, we are supposed to be the experienced agile team member who knows enough about agile to help the team overcome obstacles and guide them to successful implementation.  Just by the description, this seems to be a bad fit for a project manager who is used to organizing the project with the help of the project management team, and then focusing the team on following the plan.

In agile, teams are self-directed! Telling them what to do will undermine the entire effort. Also, if you do not have experience with agile, you are not the best person to be guiding the team to a successful agile transition. If you want to move into this position it will take some study, andmore importantly, some practice using the concepts, especially of servant leader and group self-direction.

How about the product owner? This position seems to be a natural transition due to the amount of interaction and relationships that have been developed with the customer in working on traditional projects. So, what could be wrong with this situation? We may feel comfortable going into the position but will quickly find out that we do not know the customer side well enough to make daily decisions about how to move forward without consultation with the customer.

Unfortunately, this is exactly why a product owner is assigned to the agile team full time, so the team doesn’t need to wait for decisions, that can be made by the product owner. Unless you come from the product side or you have become an expert of the product, this is most likely not a realistic position to transition into.

Well, that only leaves being released! In some cases, where a project manager cannot make the transition, this might be in the best interest of both the individual and the company; however, what I have seen is that many organizations are short-sighted. They don’t think they need the project managers anymore, only to find out that they need someone to organize and coordinate the efforts of the developer teams using agile and the infrastructure teams still using waterfall; someone who understands both sides.

Also with larger projects, agile involves multiple teams and there is a need to have someone organize the efforts of all the teams. The project manager is perfect for this coordination roll at the higher level. You can sell this position for yourself to management.

In order to be able to fill any of these roles, a project manager would be smart to start educating themselves on agile tools and processes. IIL has a great Agile and Scrum Fundamentals class that helps teams and project managers to understand the basics and begin using the tools to improve project delivery. IIL also has an Agile Development and Project Management course to help you understand how you could transition from a traditional project management methodology into agile. See IIL’s full Agile and Scrum curriculum

Let’s revisit the original question: “Why do I need to be agile?” As organizations transition to an agile environment, we can choose to be part of the solution or not. Why not help to lead the transition to agile in your organization? This way you are ensuring there is a position for you in the new environment rather than waiting until you are required to transition. Good luck on making your move.

©2017, Nielsen Solutions LLC


Jeff Nielsen, PMP, PgMP, PMI-ACP, CSM is a
Sr. Program Manager and Agile Coach.He has over 30 years of project management experience and 7 years of program management experience in both the military and the airlines industries.


Why Earn a Project Management Professional (PMP)® Certification?

By Ed Lively, PMP, PRINCE2 Practitioner, MCITP   |   IIL Senior Consultant and Trainer

About the PMP® Certification

The Project Management Professional (PMP) certification is the most recognized and important industry certification for project managers. It doesn’t matter what organization you are currently employed with, PMPs can be found to be leading projects in virtually every industry and every country worldwide. The PMP certification is truly global.

According to the most current study on project management salaries from the Project Management Institute (PMI)®, Earning Power: Project Management Salary Survey, Ninth Edition, the average annual salary for PMPs is $111,969. This is $20,000 or 22% more than non-certified Project Managers in the U.S.

Another PMI® study, Project Management Job Growth and Talent Gap 2017-2027, indicates that in the next decade there will be 2.2 million new project-oriented roles each year through 2027. The analysis in 2012 found that the future demand for project management jobs would grow to 52.4 million by 2020, but by early 2017 the number of project management jobs had already reached 65.9 million.

Other than being a globally acknowledged certification and the potential to significantly increase salaries, the PMP certification also offers benefits like:

  • Expanding your market reach and scope
  • Job opportunities
  • Greater visibility to recruiters
  • Security even in economic downturns

For current employers, the benefits of PMP-certified Project Managers far outweighs the cost. In PMI’s 2017 Pulse of the Profession: Success Rates Rise…Transforming the high cost of low performance, the executive summary states:

[trx_quote style=”1″]For the first time in five years, more projects are meeting original goals and business intent and being completed within budget. There has also been a significant decline in dollars lost. Organizations are wasting an average of $97 million for every $1 billion invested, due to poor project performance—that’s a 20 percent decline from one year ago.[/trx_quote]

While this is a move in the right direction, organizations still have a long way to go. The percentage of organizations providing training and development has been stable for the past five years and this is encouraging. According to the 2017 Pulse of the Profession:

[trx_quote style=”1″]Three in five organizations provide training on project management tools and techniques, and just under half have a formal process to develop project manager competency and a defined career path for project managers.[/trx_quote]

Only one in three organizations reports high benefits realization maturity, the new measure of true project success.

In 1994, the Standish Group’s Chaos Report indicated that the number one reason for project failure was inaccurate requirements gathering (this report continues to be quoted partially because the 2015 Chaos report changed its definition of success and the factors that contributed to success.) In 2017, PMI looking at the problem globally, reported that the largest contributing factor in project failure was a change in an organization’s priorities.

However organizations view the reasons for project failure, it is clear that they still have a long way to go to improve project performance … well-trained and qualified Project Managers is the way forward.

How to get PMP certified

  1. Fulfill Eligibility PMP Requirements

Begin by downloading the Project Management Professional (PMP) Handbook from:

http://www.pmi.org/~/media/PDF/Certifications/handbooks/project-management-professional-handbook-pmp.ashx .

This will provide you with the most current prerequisites for the certification. Currently, if you have a bachelor’s degree or global equivalent, you will need 3 years (36 months) of unique, non-overlapping professional project management experience during which at least 4,500 hours were spent leading and directing the project. In addition, you will have needed to complete 35 contact hours of formal project management education.

It is a good idea to take a training class that will prepare you for the certification exam. Some training companies offer this in a two to three day “boot camp” which may not be sufficient to adequately prepare you for the rigorous 4 hour, 200 question exam. I would suggest a minimum of a 5-day class and plan on about 40 hours of additional study to review the material before you attempt the exam.

  1. Complete the PMP Application

For purposes of ease and expediency, I suggest filling out the online application, as opposed to paper. The online application typically takes about five days to process. Once you start the application you cannot cancel it. You can save it unfinished, come back to it later, and edit any information you already entered. The application will remain active for 90 days. You will need to record your experience and education on the application. Be sure to record projects individually regardless of the number of projects you include.

One item to consider is whether you wish to join PMI as a member. The current cost of membership is $139 (USD). This will save you $150 (USD) on the exam. The current cost of taking the exam for members is $405 (USD) and for non-members it is $555 (USD). In addition to saving you on the PMP® exam cost you will receive the following benefits:

  1. You will receive a free digital copy of the PMBOK® Guide
  2. You will have access to tools and techniques
  3. You will have access to webinars and articles, and
  4. You will receive the following publications
    1. PM Network
    2. PMI Today
    3. Project Management Journal

Occasionally, an application is randomly selected to be audited. They may request copies of your diploma, signatures of supervisors attesting to your experience, copies of certificates, etc. PMI gives you 90 days to respond to their request.

Once submitted, your application remains active for one year from acceptance of the application (if audited this means once you have satisfied the audit requirements and have your application accepted.)

*In some cases, training companies will help you with the application process.

The online application can be found at:  http://www.pmi.org/certification/project-management-professional-pmp.aspx

  1. Payment

Make payment through PMI’s online certification system. Once you’ve made payment you’ll be emailed an eligibility number that you’ll use to schedule your test appointment. You will be eligible for one year and you may take the exam up to three times during that year.

  1. Schedule the Test Appointment

Go to www.prometric.com to schedule your examination. You will need your eligibility number that PMI sends you. Choose the date and location you would like to take this computer-based test. Be sure to allow enough time to adequately prepare for the exam.

  1. Exam

On the day of the exam you will need to provide two forms of identification that match exactly with the name you registered under. One of these must be a government ID with a picture. The exam has 200 questions and you will have four hours to complete the exam. Of the 200 questions, only 175 will be scored, 25 of the questions are field tested to check the statistical validity of the question before they go “live.” You will not know which 25 will not be scored. There are no scheduled breaks, but you may take a break if you wish. The clock will NOT stop.

While challenging, passing the exam will be extremely gratifying and provide you with an entry into one of the most rewarding careers of your life with unlimited potential.

When you’re ready to get PMP certified, IIL can help.

Three ways to learn:
Self-paced online – 35 hours
Live Virtual Classroom – starts October 30
5-day-Day Traditional Classroom – scheduled around the world

Register with code SOCIAL for 10% off!

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About the Author

Ed Lively brings a wealth of experience to the project management field as a practitioner, presenter, mentor, and author. His multidimensional skills allow him to teach 52 different classes in three core subject areas: negotiation and conflict resolution skills, all aspects of project management and team leadership.[/trx_infobox]

Suggested PMI Publications:
Project Management Professional (PMP)® Handbook
Project Management Job Growth and Talent Gap | 2017-2027
Pulse of the Profession: Success Rates Rise, Transforming the high cost of low performance
A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fifth Edition

*Note: The PMBOK® Guide—Sixth Edition will be released September 2017. The PMP exam is changing in the first quarter of 2018. Anyone taking the exam prior to Q1 2018 will receive the current version of the exam that references the PMBOK® Guide—Fifth Edition.

PMI, PMBOK, and PMP are marks of the Project Management Institute, Inc.