Mantra for Innovative Project ManagementAnipriya PDelivery Project ExecutiveIBM

Re-shaping Project Management for survival in a changing marketplace

Theme: Mantra for Innovative Project Management

Keywords:Consulting, Client Experience Management, Talent Management, Consulting, Project

Management.

Abstract: In a hyper-connected and fast-paced technology driven environment, projects are becoming

increasingly complex day by day. Service Providers have so far relied on traditional Project Management

Principles, CMMI and Delivery Models as proven means of delivering customer needs. While this has

worked well in the past, emerging trends like Social Networking, Mobility, Analytics, Cloud and Diversity

pose new opportunities as well as threats. The Client’s objectives of projects are being driven by the

challenges they face in the market place. Across industries, end-customers are seeking high digital

experience, faster Time to Market, improved Productivity, higher quality, lower costs and personalization

of services. These expectations bring in new dimensions of challenges to Service Providers. Hence it is

imperative for service providers to find creative ways of distinguishing themselves as a means of survival.

This paper explores ways of augmenting traditional methods with Consulting, new HR competencies and

Client Experiences. The benefits of such an approach include greater agility, higher customer stickiness,

higher success rates of projects and higher people satisfaction.

Table of Contents

1. Introduction.......................................................................................................................................... 3

2. Top 5 trends that have transformed the industry in recent years.........................................................3

2.1. Customer Activated Enterprises...................................................................................................3

2.2. Emergence of Social, Mobility, Analytics and Cloud Computing..................................................4

2.3. Industry Convergence..................................................................................................................5

2.4. Globally Integrated Enterprises....................................................................................................6

2.5. Emergence of the Gen Y workforce.............................................................................................7

3. The changing face of Project Management.........................................................................................8

3.1 Stakeholder Management to Deeper Client Engagement............................................................8

3.2 Project Status Communication to Client Value Articulation:.........................................................9

3.3 Project Delivery to Project Consulting..........................................................................................9

3.4 Innovation - a key differentiator..................................................................................................10

3.5 HR Management to Talent Management...................................................................................11

4. Benefits.............................................................................................................................................. 12

5. Conclusion......................................................................................................................................... 12

6. References (old section)....................................................................................................................12

7. Author(s) Name................................................................................................................................. 13

1. Introduction

To survive competition, organizations are constantly inventing newer products and services at a fast

pace.If the 1980's were about quality and the 1990's were all about globalization, the present era is about

Customer experience. In the coming years, customers will play an increasing role in influencing and

shaping business strategy. Emerging technologies in Social, Mobile, Analytics and Cloud create new and

unique digital experiences for the customers day by day. Convergence of industries has made businesses

to appear seamless. Every business is trying their best to engage and retain their customers.

The problem? Traditional project management follows a disciplined, planning and control approach to

deliver the product/service while managing the project Triple Constraints. Across industries, the

objectives of projects are being driven by the trends and challenges faced in the market place. Recent

industry trends like customer activated enterprise, industry convergence, emergence of SMAC, globally

integrated enterprises and emergence of the GenY have transformed customer expectations. Today’s

Project Management has to go beyond the traditional methods to find creative ways of addressing the

changed expectations to ensure success.

This whitepaper:

examines the top trends that have transformed the industry in recent years

explores the nature of influence of the trends in this environment

Introducesconsulting, new HR competencies and Client Experiencesto augment traditional

Project Management skills.

In the context of this paper,

• Client refers to Project Sponsor or Sponsoring Organization who has on-going relationship with

Service Provider

• Service Provider refers to the Organization that delivers the Product/service

• Customer refers to those who purchase/consume the Products/Services from the Client

2. Top 5trends that have transformed the industry in recent years

2.1. CustomerActivated Enterprises

Customer experience is the new strategic differentiator in the marketplace.Recent research has shown

that empowered customers are playing a growing role in re-defining their experience with companies.

A recent study by IBM’s Institute for Business Value, entitled “The Customer-activated Enterprise,” is

based on findings from face-to-face conversations with more than 4,000 CEOs, CMOs, CFOs, CIOs and

other C-suite leaders from 70 countries and 20 industries worldwide.  The study reveals that 60 percent of

CEOs plan to directly engage their customers and proactively apply what they learn to set their business

agendas in the next three to five years.[11] The study uncovered three emerging themes that help to

shape an organization’s future:

• Open up to customer influence

• Pioneer digital-physical innovation

• Craft engaging customer experiences

These findings suggest clearly that taking actionto make customers’ perspectives the core of the

organization’s strategy is crucial for growth and for standing apart fromcompetitors.

2.2. Emergence of Social, Mobility, Analytics and Cloud Computing

Emergence of Social, Mobility, Analytics and Cloud (SMAC) has led to the world becoming hyper-

connected. SMAC has transformed the way customers connect with Enterprises across all industries. [1]

Social - Social media allows people to collaborate while leaving a trail of data on preferences and

relationships with other people. When used with a clear purpose, social platforms and networks can

enrich external and internal communications of an organization. Due to the popularity of social media,

organizations are rethinking how social tools could be used to achieve business outcomes.

Mobility – Mobility allows people to perform their work on – the- go. It is no longer required to be present

in traditional office. Mobile devices and applications have replaced personal computers to access work

related systems. Machine to Machine communication (M2M) and the Internet of things (IOT) provides

means for instant access to applications and data from anywhere. Bring Your own device (BYOD) is

gaining popularity.

Cloud–Cloud computing is the latest business model for delivering IT services over the internet in a pay-

per-use model. Through Cloud services can be delivered from anywhere without the initial capital

expenditure on traditional IT systems. Even though Infrastructure as a Service (IaaS) , Platform as a

Service (Paas) and Software as a Service (SaaS) are the broad categories of Cloud delivery models

combinations of services is emerging as new business models example, Network as a Service (NaaS),

Solutions as a Service (SLaaS). Advances in Security and Privacy are helping businesses to shed initial

inhibitions and to exploit the power of cloud in coming years.

Analytics- Analytics is the discovery and communication of meaningful patterns in data.Predictive

analytics allow organizations to go beyond descriptive analytics (associated with Business Intelligence) by

providing more optimization, and answers to ‘What if ‘questions and guiding the next best action (NBA).

Another trend in this field is the emergence of Big Data Analytics.Big data' is a blanket term for any

collection of data sets so large and complex that it becomes difficult to process using on-hand database

management tools or traditional data processing applications.

A new generation of cognitive systems--a category of technologies that uses natural language

processing and machine learning to enable people and machines to interact more naturally to extend

and magnify human expertise and cognition.

Service Providers play an important role as partners to manage risk of the rapidly evolving SMAC

technology environment. Service Providers must educate their employees to prepare them for becoming

SMAC savvy formanaging these SMAC projects.

2.3. Industry Convergence

Industry convergence is generally defined as the converging/merging of two or more separate and distinct

industries. Industry convergence can occur in such a way that two or more companies that offer different

products merge together. It can also happen that other companies can absorb the organization's core

business to fulfill their own industry convergence objectives. [5]

The basic drivers of industry convergence are technological convergence and customer’s needs.With the

convergence of industries customers are able to satisfy their different needs in a limited number of

transactionsfrom a single supplier.

Industry convergence represents the most fundamental growth opportunity for organizations and will

redefine industry boundaries by shifting the focus from individual products to cross-industry value

experiences, based on digital business principles. For those industries involved in the area of

convergence, it does offer a great deal of advantages like reduce labor, administrative as well as material

costs.

Service Providers have to be cognizant of these shifts in industries and the threats and opportunities that

result out of it. This knowledge will help them to play an important role in shaping their Client’s business

strategy and enable them in being essential.

2.4. Globally Integrated Enterprises

The Globally Integrated Enterprise (GIE) is a term coined in 2006 by Sam Palmisano, the then CEO of

IBM Corp, used to denote "a company that fashions its strategy, its management, and its operations in

pursuit of a new goal: the integration of production and value delivery worldwide“ [13]. The globally

integrated enterprise can locate functions anywhere in the world, based on the right cost, skills and

environment. With a hyper connected world, work can move to the place where it is performed cheapest.

This approach is made possible due to the rise of globalization, and coming down of many of the barriers

that haltered cross-border commerce.New kinds of managerial skills are also needed to lead, to influence,

and to quickly get credibility and respect in a diverse and multicultural workforce.

The consideration driving most business decisions to adopt GIE are:

securing a supply of high-value skills

sensible regulation of intellectual property worldwide

Maintaininga company's standards of governance, transparency, privacy, security, and quality

when its products and operations are handled by a distributed business models in as many

countries.

Moving toward the globally integrated enterprise will require long-term vision and continuous investment

from business leaders. Service Providers as well as their clients alike must invest in better basic

educational and training programs to develop high value skills next generation leadership skills and

stringent governance for cost optimization and strict performance standards.

2.5. Emergence of the GenY workforce

Today’s workforce is a multi-generational one each generation has its own set of expectations, needs,

values and working styles.Organizations are dividing their workforces into three generational groupings:

Baby Boomers (born between 1943 and 1964), Generation X (born between 1965 and 1980) and

Generation Y (born between 1981 and 2001). Generation Y is seen to be embracing social technology

and diversity. Managing generational differences has become an increasingly growing area. In today’s

diverse and ever changing business environment, it is imperative to the areas of recruitment, retention

and engagement for organizations to successfully communicate across generational boundaries. [6]

Gen Y is much less likely to respond to the traditional command-and-control type of management still

popular in much of today's workforce. They are willing and not afraid to challenge the status quo and an

environment where creativity and independent thinking are looked upon as a positive is appealing to Gen

Y.

Organizations with Gen Y employees must provide clear statements of goals, but allow them reasonable

latitude on how to achieve those goals. To get the best performance out of Gen Y, Project Managers must

build on their interest in gaining new skills and knowledge by providing opportunities to grow on the job.

3. The changing face of Project Management

In the wake of emerging trends, Project Managers need to exhibit significant thought leadership in re-

shaping current processes in Project Management. The existing processes of Stakeholder Management,

Communication Management and Human resources Management need to undergo a total transformation.

In addition, Project Management should also take into account avenues for Project Consulting, Innovation

Management as additional process areas within the umbrella of Project Management. The following

sections detail out the transformational and novel aspects of Project Management for survival in the

changed marketplace.

1 Stakeholder Management to Deeper Client Engagement

Client engagement refers to usage of deep customer engagement to drive insight and continuously

deliver value by personalizing engagement, versus transactional experiences. Fast paced Organizations

have realized that next wave of business drivers will be around customers and engaging them in

meaningful ongoing dialogues. Client relationships should be built on a strong foundation of open, honest

interactions over time—interactions that create positive experiences and outcomes for your customers.

Customers have so many choices to research, compare, and purchase products and services. Customer

expectations have been increasing while budgets are being tightened. The high cost of acquiring new

customers has become a major challenge for profitability.Customer engagement has increasingly become

an important determining factor in determining loyalty, acquiring new customers and sustaining the

business.

In today's competitive environment, the success of Service Providers depends on quick identification of

customer pain points by understanding both explicit and implicit customer.The rise of social networks and

mobile have fundamentally changed the way businesses engage with their customers. This is necessary

for establishing long-term relationships with the customer.Customers demand high quality service

wherever, whenever and however they connect with your business. Project Managers must have the

know-how to seamlessly link client strategy, technology, people and processes. Service providers have to

initiate, grow and sustain profitable customer relationships and focus on outcome and the value to be

delivered to clients. 

The rise of Social media has transformed the way businesses of all sizes engage with their customers.

Project Managers can also leverage social technologies to form meaningful, ongoing professional

relationshipsto build their expertise and to network with clients as well as Subject Matter Experts.

2 Project Status Communication to Client Value Articulation:

A value proposition is a statement of the unique benefits your product or service delivers to the target

customer. A good value proposition is the keystone for developing other marketing tools, such as an

elevator pitch or a presentation to investors.

Client value is the real business value you deliver to your clients. This is a question you are asked silently

every time you communicate with a client or prospect.Clients are constantly looking for validation that you

are the rightchoice, especially when their portfolios are down because of a

Market turn. Prospects are trying to figure out how to tell one adviserfrom another when they all seem to

look the same. As the industrymoves away from transactional fees, what the client gets from youis less

tangible, making the need to “justify yourself” all the moreimportant.

Project Managers should practice articulating the business value delivered as part of their on-going

communication with their Clients. The Technical and Industry expertise of a Project Manager forms a key

enabler in Client Value Articulation. The ability to communicate in the client’s business language is

emerging as a critical skill valued by Clients as well as Service Providers.

3 Project Delivery to ProjectConsulting

Organizations must seek more effective ways to interact with customers, to develop the appropriate

relationships, and to establish a program for long-term, sustainable profitability and benefit to the

organization as well as the customer. In order to do this, organizations must advance their analytical

capabilities around knowing their customers, how to market and interact with them, and what will generate

beneficial relationships.PMs should develop consulting skills to analyze business challenges and jointly

create solutions that integrate next-generation mobile, social, analytics and cloud technologies.Co-

creation with clients includes an innovation model called Innovation JAM Workshops, which generate

ideas, roadmaps, prototypes and solutions that draw on assets.Social Network Analytics

Deep customer insight can deliver sustained competitive advantage through revenue growth and reduced

expense.

Project Managers need to build the range of proven experience, insights, expertise and tools to harness

the growing velocity in volume, variety and granularity of information created today to help clients reach

better, faster decisions, take optimal actions for more predictable outcomes – creating real business

value. Project entrepreneurship means project managers must develop an "entrepreneurial" mindset. This

enables project managers to take on risks, foster innovation and focus on business value rather just

looking at the traditional triple constraints.

4 Innovation - a key differentiator

Innovation is the core business basic in the current scenario. Innovation can be the act of introducing

something new (e.g. a new idea, method or device). But it also can evolve from the process of making

improvements of existing things, processes or services. A third approach is the combination of existing

things, processes or services into something new.Today organizations are investing in Innovation Hubs

which are communities of business leaders, innovators and innovation catalysts who are passionate

about improving our business together. These communities use Social collaboration tools to coordinate

their efforts, work on challenges, encourage and discuss ideas and share best practices in Innovation.

Being creative drives business. It adds real value to a business. Value to its people, value to its

customers, and value to its bottom line.

In order to improve Innovation score and to distinguish from competition, Service Providers must

Promote innovation as a core skill – in all staff and especially in Project managers. Thinking

innovatively is a skill that can be acquired.

Provide platform for ideation – using the collaborative tools and repositories ideas can be

tracked, expanded andimplemented

Recognize people for sharing ideas &expertise–Focus on innovation can be improved through

good management and a reward system that recognizes group effort and sharing ideas rather

than just the individual.

Celebrate successes – Celebrating success can serve as motivational factor. It is essential

for positive reinforcement of good practice.

Project Managers must play a significant role in driving innovation as a lifeblood in the project team.

Harvesting assets and innovations developed or practiced in the project and showcasing them should

become important part of Project closing functions. Innovations must be stored for future reference in

organization Knowledge Management Systems.

5 HR Management to Talent Management

Corporate HR has grown up over the last 4 decades. In the 1970s and 1980s the business function which

was responsible for people was called "The Personnel Department." This group focused on hiring people,

paying them, and making sure they had the necessary benefits. In the 1980s and 1990s organizations

realized that the HR function was in fact more important - and the concepts of "Strategic HR" emerged.

HR Function was responsible recruiting the right people, training them, helping the business design job

roles and organization structures , develop "total compensation" packages which include benefits, stock

options and bonuses, and serving as a central point of communication for employee health and

happiness.We are now entering a new era: the emergence of "Talent Management. [2]

Talent Management is focused on developing a leadership pipeline, identifying and closing competency

gaps, driving accountability, managing performance across the organization. There are many skill that are

to be developed as mentioned in the various sections above and it need a focused approach from Talent

Management. Talent Management function has also recognized managing Gen Y among the top HR

Challenges.[10]

Project Managers need to imbibe the paradigm shift in the thinking, deployment and implementation of

the Talent Management methodology.Recognizing and understanding generational differences can help

everyone learn to work together more effectively and transform the workplace from a generation war zone

to an age-diverse and productive team. Employee engagement practices that will cater to the needs of

both Gen X and Gen Y need to be designed and executed. As a result of organizations becoming

Globally Integrated Enterprises the project teams will increasingly become multinational and multicultural.

Exploring social collaboration tools, knowledge Management Systems and incorporating culture sensitivity

are important for building a high performing cohesive project team.

4. Benefits

The approaches highlighted in this paper are oriented towards elevating Project Management for

converting business strategy into business results. The benefits of such an approach include:

Higher Customer Satisfaction –WOW Experience

Higher Customer Intimacy

Reduce costs and improve operational efficiency

Increase revenue and customer retention and loyalty

Increase flexibility to support existing and new business strategies

Meet compliance requirements and reduce risk exposure

Cultivating Domain Depth

Increased Opportunity for IP based solutions

Better Control on the Outcome

Highly Motivated Workforce

5. Conclusion

The driving forces of today’s marketplace and key Project Management challenges have been explored.

Top 5 trends that are driving changes in the marketplace and key Project Management challenges have

been examined. It can thereby be concluded that, there are many changes we need to implement in the

Project Management practices in the coming days. Project Management Process need Transformational

changes as well as introductionof novel practices for survival as well as for ensuring better Customer

experience which is the key market driver.Augmenting traditional methods with Consulting, new HR

competencies and Client Experiences has benefits.

6. References

1. Cloud Computing and SMAC , http://joostvanlier.wordpress.com/2013/05/24/essay-cloud-

computing-and-smac-defining-the-trends-benefits-and-threats/

2. Deloitte Forecasts the Global Shift in Talent Management,

http://www2.deloitte.com/global/en/pages/about-deloitte/articles/forecasts-global-shift-in-talent-

management.html

3. Executive Guide to Project Management – PMI Publication

4. Forbes - 10 Tech Trends That Will Transform Your Industry,

http://www.forbes.com/sites/oracle/2014/04/03/10-tech-trends-that-will-transform-your-industry/

5. Gartner - Industry Convergence — The Digital Industrial Revolution ,

https://www.gartner.com/doc/2684516/industry-convergence--digital-industrial

6. Generation Y: The powerhouse of the global economy; http://www.deloitte.com/assets/Dcom-

UnitedStates/Local%20Assets/Documents/

us_consulting_hc_GenerationY_Snapshot_041509.pdf

7. Pulse of the Profession 2014 – PMI Publication.

8. SMAC and the Transformation of Innovation,

http://www.project-management-podcast.com/index.php/podcast-episodes/episode-details/531-

episode-259-smac-and-the-transformation-of-innovation

9. Social Media Case Studies, http://business.linkedin.com/marketing-solutions/social-media-case-

studies.html

10. Talent Management, What is it? Why now?, May, 2006,Josh Bersin , Principal

11. The Customer Activated Enterprise, http://www.ibm.com/midmarket/us/en/csuite2013.html

12. The Evolution of Project Management, By SandroAzzopardi

13. The Globally Integrated enterprise, http://www.cfr.org/corporate-governance/globally-integrated-

enterprise/p10468

14. The Millennial Survey 2014, Big demands and high expectations;

http://www2.deloitte.com/global/en/pages/about-deloitte/articles/2014-millennial-survey-positive-

impact.html

7. Author(s) Name