Project Management - capm.hr lowres.pdf · Project Management PRACTICE The Professional Magazine of the International Project Management Association ISSUE 1 SPRING 2007 in this issue…

Project ManagementP R A C T I C E

The Professional Magazine of theInternational Project Management Association

ISSUE 1 ● SPRING 2007

in this issue…

21st IPMA World Congress Crakow 2007PAGE 2

Lech Walesa to keynote June IPMA Congress in PolandPAGE 4

Using Stakeholder Analysis in Software Project ManagementPAGE 5

How to reduce risk in project schedules and portfoliosPAGE 8

Why Executives Should Care About Project GovernancePAGE 10

Program Management: It´s About the Business!PAGE 12

Twelve instruments to make project management more professional in your companyPAGE 16

Welcome to KrakowPAGE 18

Upcoming IPMA EventsPAGE 19

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THE WORLD LEADER IN PROJECT MANAGEMENT CERTIFICATION

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PMF Breaking News

Lech Walesa, legendary leader of the Solidarity Trade

Union, Nobel Peace Prize Laureate in 1983, and President

of Poland during 1990-1995, has been announced as the

featured keynote speaker to open the 21st IPMA World

Congress on June 18, 2007 in Cracow, Poland. He will speak

on the ”Management of the Peaceful Revolution – Poland’s

largest, most difficult and most successful project.”

According to IPMA President Veikko Valila, ”Lech Walesa isone of the most famous and most motivating leaders in theworld. Project managers everywhere can learn from his atti-tude and experiences. We are excited to have such a glob-ally recognized figure open our congress this year.”

Scheduled for 18-20 June 2007 in Cracow, Poland, IPMA’s21st annual world congress on project management willhave the theme ”Project Management: Essential Reality forBusiness and Government”. Organizers of the congress arethe International Project Management Association (IPMA)and the Stowarzyszenie Project Management AssociationPoland (www.spmp.org.pl). The Chairman of the Congressis Mr. Stanislaw Sroka.

Other keynote speakers at the 21st IPMA World Congresswill include:

Professor Roland Gareis (Austria)Juergen Schloss, PhD (Germany)Mr Antii Heinonen (Finland) Professor Rodney Turner, PhD (UK) Professor Peter Morris, PhD (UK)

Main streams for the conference will include the following topic areas:

1. PM for Economic Transformation2. EU Projects, Government & Public Sectors3. Innovation and new frontiers in Project Management4. Project management from level CEO, Best Practice5. Education, Certification, Standards & Profession –

Human resources in PM

Each stream will include professional paper presentations,lectures and discussions. For registration, schedule andother information, visit the conference website athttp://www.ipma2007.com/.

Founded in 1967 and registered in Switzerland, theInternational Project Management Association (IPMA) isthe world’s oldest project management professional organ-ization. IPMA is an international network of national PMsocieties that serve the specific development needs of eachcountry in its national language. IPMA provides an umbrellaorganization to represent them at the international level.IPMA is a global organization with over 40 national repre-sentative societies in Africa, Asia, Europe and the Americas.

The local bodies promote project man-agement professionalism on the specif-ic cultural requirements across all typesof projects. IPMA’s internationallyacclaimed 4 Level Project ManagementCertification Programme continues togrow dramatically, with over 50.000professionals having now achievedIPMA Certification. The IPMA annuallypresents project management awardsto teams that achieve great feats inproject management. IPMA maintainsits continuous presence in the globalPM arena through its regular hosting ofInternational Symposia, Expert Seminarsand its Annual World Congress. Thepresident of IPMA for 2007 is VeikkoVelila. Additional information is availableat www.ipma.ch.

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Lech Walesa to keynote June IPMA Congress in Poland

40 YEARS

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By Bas de Baar

People make one project different from another. Project

managers can use stakeholder analysis to get information

about the drives of the people in an around a project. A

proper analysis of the stakeholders will help you to con-

struct a project approach suited to the situation and will

allow you to negotiate better with the stakeholders.

Apart from end results and technology used, the maindetermining factor that makes one project different fromanother is people. The entire process of software projectmanagement is strongly stakeholder-driven. It’s their wish-es, fears, dreams — their stakes — that determine thecourse of the project. You have to handle a project to reallygrasp the impact of people on your endeavor. You have tolead a team to deliver a project under time pressures toappreciate the constructive power of motivated people orthe destructive power of demotivated team members.

In a project, it is the people that are the main cause of prob-lems. Time schedules, financial projections, and softwaregoals may be abstractions, but it is the flesh-and-bloodpeople whose work determines your project’s status. Theprogrammer that misses a deadline, the financial managerthat goes berserk if you do not produce some good budg-etary indications and the key user that does not give a darnbut did not tell you about his dismal lack of motivation;these are the folks who can cause serious trouble.

Stakeholders a manager´s problemAs a software project manager, you should really focus onthe stakeholders and be guided by their fears and wishes. Astakeholder can be a project team member, an employee ofthe user organization, or a senior manager. It can be anyonewho has something to do with the project.

Here is the central problem, appropriately named “the soft-ware project manager’s problem,” as explained by Barry W.Boehm and Rony Ross in Theory-W Software ProjectManagement Principles and Examples. They believe thateveryone affected by the project, directly or indirectly, hassomething to say, again directly or indirectly, and will do so.All of them want to get the best from this project for them-selves personally or for their organization. It is the job of thesoftware project manager to see that everyone get whatthey want and to “make everyone a winner.”

Of course, this is easier said than done. You have to act likea psychoanalyst and get in touch with everyone’s deeperfeelings. Most technical project leaders would be runningfor the door at this moment. To make it less fuzzy, we canattach some project management lingo to it:

“The project manager can use

stakeholder analysis to determine the stakes

and expectations of the stakeholders, and adopt

the project organization and feedback mechanisms

according to the desired outcomes.”

Interests Stakeholder analysis is a technique to identify and analyzethe people surrounding a project. It provides information onstakeholders and their relationships, interests, and expecta-tions. A proper analysis will help you to construct a projectapproach suited to the situation and will allow you to nego-tiate better with the stakeholders.

What people (and therefore your project stakeholders) real-ly, really, really want is what can be termed their interests or,as I sometimes call them, their stakes (hence the name“stakeholder”). With fears there is a stake to lose, and withwishes there is something to gain. ➤

Using Stakeholder Analysis in Software Project Management

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➤ In this context interests are the aspects that drivepeople. Before you start drawing your “interest evaluationdiagram”, be aware that in general these interests are hard-ly ever communicated. It is pure mind stuff, all inside thehead of the owner. A four-year-old boy may share his trueinterests with you, but the fifty-year-old graying accountantwill tell you nothing.

ExpectationsIf no one will tell you anything, what is the point? People willtell you something if you ask them. They will tell you theywant an ice cream cone, a new hyperspeed Internet uplink,or a new financial software package. In essence, they tellyou what they expect. It is a statement created by them-selves about a desired situation: their expectations.

If I emphasize that expectations are a one-sided communi-cation, then there must be something else as well; enterrequirements. Requirements are a set of statements negoti-ated among a group of people. They can be the originalexpectations, if all agree on the statement itself, but moreoften than not, requirements consist of some consensus ofconflicting expectations.

RequirementsIt sounds simple, but getting the expectations is one thingand discovering their corresponding stakes is another. Youcan not effectively change the stakes, but you can alter theset of requirements as long as they continue to support thestakes. In this way, there is room to negotiate a set ofrequirements for the project that poses no conflict, match-es the stakes, and thus makes everyone a winner!

Consider this example: a stakeholder formulates an expec-tation for the software project; for example, senior manage-ment states that “The project should be finished before theend of August.” The project manager has to deal with thistime frame, and since it is a software project the deadlinetypically will be a problem. The way to handle it is to getsome information on the stakes that prompted this require-ment to be formulated in the first place.

Perhaps it is the old “I don’t want to lose face when my proj-ects get delayed” concern. That being the case, the projectmanager can offer alternatives that do not violate the stake,like keeping the deadline but postponing a subsystem.Chances are good that alternative requirements that keepsupporting the stakes will be accepted—maybe not easily,but project managers should do something to earn theirmoney.

So, it seems to be valuable to dig deeper into the souls ofyour stakeholders. It sounds all very misty and cloudy, butremember why you must do it:

● Expectations are assessable and can be influenced. However, you should stay true to the interests of peo-ple; they will determine the amount of leverage you have to change the expectations without setting a stakeholder on the warpath.

● Requirements have to stay in line with what people are expecting. If stakeholders find out the requirements don’t fit their expectations, you have a major problem.

● Knowledge about the stakeholders and their expecta-tions and interests helps you shape the project organi-zation (structure, authority, and responsibility).

● It is a very good risk analysis strategy to see where thepotential problems will be.

Three steps for stakeholder analysisThe actual steps for a stakeholder analysis are:

● Stakeholder identification

● Stakeholder expectations and interests

● Stakeholder influence and role in the project

The first step, stakeholder Identification, is concerned withthe question “Who are the stakeholders?” You basically

draw maps of people or groups and their relationships. Startwith two names on a whiteboard and before you know it,you are drawing on the walls.

The more difficult step is stakeholder expectations andinterests. Here we get the socio-psycho stuff. For expecta-tions it is fairly straightforward: just ask, in person or via mailor email. Create some variations on the question, not mak-ing it too obvious what you are trying to find out.

Trying to elicit a stakeholder’s interests is always guess-work, deducting them from other information. There are twotypes of approaches: (1) using a checklist to assist your think-ing about the stakeholder and (2) plotting people in smallmodels that help determine the way to approach them.

For the first type, consider a list with questions like: “Is hesatisfied with his current job?”, “Is he covering up his ownincompetence?” and “Does he want a bigger office?”Thinking about these questions help you build an image ofthe person’s interests.

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Using small models, the second type, can be easier than itsounds. You have to plot a stakeholder in a dimension to getan idea of how to approach him or her. Dimensions caninclude: “How much in favor of the project”, “Process orContent-oriented” and “Group or Individual-oriented.”

The insights about the stakeholders will assist us also toconstruct the project organization, thus determining theStakeholder Influence and Role in the Project

● Do we have to include the stakeholders in the organization?

● If so, is it wise to grant stakeholders great influence or should we give them positions where they can do no harm?

● How can we construct stakeholders’ job descriptions in such a way that they are as motivated as possible?

What is the result?In the end, what does all this analyzing and guessing bringto us?

1. A list of all the stakeholders

2. An idea about each stakeholder’s relative importanceand influence

3. Insight into what stakeholders want out of the project

4. Insight into what makes stakeholders tick

5. An idea about whether stakeholders will work againstor for the project

Apart from an improved ability to negotiate better require-ments-sets, this information provides the basis for twomajor project management tools: the project organization(mentioned as the last step of stakeholder analysis) and thefeedback mechanisms.

If stakeholders provide requirements to a project, they arevery interested to know what happens to them. Are theygoing to be met, or will they be ignored? Keeping yourstakeholders in the loop, reassuring your stakeholdersabout what is happening with their stakes/requirements is asmart thing to do.

There are a lot of project management techniques and arti-facts available just for the purpose of feedback. Often, it isunclear from the methods that you use what is the purposeof the feedback. In the list below are some artefact samplesthat are common in most methods, and what kind of feed-back each provides.

Requirements definition Feedback to the users on how their requirements are noted aftertalking, analyzing and negotiation

Functional design Feedback to the users on how their requirements are translated to a new system

Prototype Feedback to the users on how their requirements are translated to a new system

Schedule Feedback on the time constraint

Budget Feedback on the cost constraint

ClosingEvery improvement you make with the goal of improvingyour ability to do projects better should involve how to han-dle the human element more effectively, as this is the areawhere we can realize the biggest gains.

Stakeholder analysis is one technique that can assist in this.To sharpen your knife you can improve your senstivety inthis area, create your own checklists and read up on thevarious models available to you. Finally, just being aware ofstakes and their effects on your project in itself is a hugebenefit to your software project management efforts.

■

Bas De Baar works as a Project Manager within the publish-ing industry and currently lives in The Netherlands. His latestbook, “Surprise! Now You’re a Software Project Manager”,September 2006, is available from www.mmpubs.com Mr. De Baar can be reached at [email protected]

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in turn, has consequences – cost increases, or timescaleoverruns, for example. So if an activity or group of activitiesis deemed to be at risk, plug that risk into the network aswell – as an appropriate percentage probability as judgedby the team in risk workshops.

The resulting network, with risk and uncertainty parametersattached, can then be modelled. At a basic level,PertMaster customers find that even the process of simplyconstructing the model yields valuable insights. They mightdiscover that most of the risk that they face occurs in thelatter stages of the project, for example, or in a particular

By Sarim Khan

How should project managers allocate scarce resources

in order to reduce risks in projects? The answer is project

networking and advanced simulation techniques project

managers might get a picture of where mitigation will be

most effective.

Even the best-planned projects go wrong: every projectmanager knows that. Unexpectedly, from leftfield, comes acurveball – leaving plans, budgets and timescales in tatters.Often the things that go wrong in projects have indeed beenforeseen as at least possibilities: in many projects, adversefactors such as bad weather, supplier unreliability and tech-nical delays are ever-present dangers.

Project networkWhat is lacking, though, is a way of mitigating against theserisks – and doing so cost-effectively. The solution is projectnetwork, the most fundamental of project planning con-structs. By incorporating risk and uncertainty parameters inrespect of the individual activities within the network, andthen applying advanced simulation techniques to extrapo-late the potential outcomes, project managers can power-fully build up a precise picture of where mitigation will bemost effective.

The result: a better understanding of the real risks that proj-ects face – and resources intelligently expended on mitigat-ing against risks where the probability of occurrence, andthe consequences, are clearly understood. So instead of ascattergun approach to project plan protection – blastingresources off in the hope that effective protection will result– projects managers can deploy a sniper’s rifle, clearly tar-geting identified risks and uncertainties.

The basics are not complicated. Logically, every activity onthe project network is affected by uncertainty. It might costthis much – or it might cost that much. There’s a range ofpossible cost outcomes, in other words. Likewise withtimescales: at best, an activity might take this long – and atworst, that long. So plug these ranges into the project net-work, as parameters associated with each activity.

Percentage probabilityRisks are treated in a similar manner. An activity may bedeemed to be at risk of being affected by an identifiable dis-crete event – such as bad weather – or it may not. That risk,

How to reduce risk in project schedules and portfolios


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branch of the network. At the very least, it is possible toquantify the number of risks that a project faces, at whichstages in the project they might impact, and the range ofpossible project cost and timescale outcomes – itself nomean feat, given the cumulative nature of project activities,and their linked interdependencies.

Picture of risk profileBut the real payback comes from simulation. Advancedprobability-based ‘Monte Carlo’ mathematical modellingtechniques, built into PertMaster, run potentially many hun-dreds or even thousands of individual simulations, buildingup a picture of the project’s ‘risk profile’.

The result?

“Enterprises are able to determine,

with considerable certainty, both the most likely risks

affecting their overall project, as well as the risks

with the greatest consequences.”

This information that can be leveraged in a number of ways.Although there are no hard and fast rules on how to treatsuch insights, in our experience many project managerstypically choose to build up a list of the ‘Top 10’ risks facedby a project. Alternatively, through a process of weightings,the most likely risks and the risks with the greatest conse-quences can be combined in order to create what’s knownas the project’s risk ‘exposure’ – another common tech-nique.

Better managementAt this point the most significant benefits of the process kickin. For a start, it gives management an opportunity to man-age expectations better. From our observations, it seemsthat the sponsors of many high-profile project failures – thesort of IT, aerospace or construction disasters that arealways appearing on our newspapers’ front pages – had noidea how risky their projects were, or where those risks lay.

Yet more importantly, the major opportunity is to actuallymanage those risk scenarios better. One obvious – andhighly cost-effective – way of doing this is through closermonitoring of the risk areas. But there is also an opportuni-ty to deploy that sniper’s rifle, to apply resources in afocused manner to mitigate against specific risks. In itself,this can prove a powerful ‘reality check’: if mitigationresources are being applied to areas not on the list of criti-cal ‘Top 10’ risks, for instance, it is time to ask some point-ed questions as to why.

Questions can cut costsIndeed, we often find that there is a disconnection betweenmitigation resources and risk areas – both at the projectlevel, and the portfolio level. Are resources being allocatedon the basis of risk, for example – or on the basis of quiet-ing those who are shouting loudest? Is the level of mitiga-tion precisely-calculated to be appropriate to the exposure– or is it a figure plucked from the air, with no real sense ofif it is adequate, or represents good value for money? Suchquestions can yield significant savings, as well as sharplyimproving project performance in terms of meeting budgetand timescale expectations.

Overlooking the entire portfolio of projects within the enter-prise, the same kind of opportunity arises. Typically we seethat it is the largest projects that have the greatest resourcereserve set aside for mitigation. But it is more logical, andfar more cost-effective, to allocate the largest reserves tothe riskiest projects – rather than just the largest ones.Indeed, several of our customers have experienced signifi-cant overall reductions in the extent of the resources thatthey must set aside for project mitigation, precisely for thisreason.

In short, it is possible to treat project risk and uncertainly farmore intelligently than is often the case. And in a project-ori-ented world, where resource constraints are an ever-presentfact of life, that intelligence can make an enormous differ-ence to project success.

■

Sarim Khan is CEO of PertMaster, a provider of risk and analyticssoftware for Project Portfolio Management (PPM) environments,with a focus on oil & gas exploration, engineering, manufacturing,construction, aerospace, defence and governmental industries.

Mr. Khan has over 12 yearsexperience in the decision ana-lytics software industry and hasworked closely with manyFortune 500 companies to bet-ter apply predictive risk andanalytics solutions – enablingclients to win and deliver prof-itable real-life projects.

Sarim is a member of PMIand the Association of ProjectManagement (APM) in the UK.Sarim can be reached [email protected]

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By Darshana Patel, PMP

Executives today cannot escape the ubiquitous message

that reliable practices in project management have

become a necessity and no longer a luxury. Many factors

contribute to this state, including such drivers as

increased competition from the global marketplace, regu-

latory scrutiny, expedited innovation cycles, and more

demanding consumers.

Many organizations now manage their business throughprojects, leveraging sound project management practicesfor competitive advantage. In fact, many organizations areprotective of their project management practices, oftenhoused in a PMO (Project Management Office), and treatthis knowledge as intellectual property. The project mindsethas come to permeate all aspects of business, generatingincreased efficiency and effectiveness in cross-functionalinitiatives.

Despite all the benefits of elevating project managementmaturity, leaders are faced with a challenging dilemma. Howdo you maintain the balance between customer satisfactionand project controls? How do you impose just enoughprocess without risking innovation and competitiveness?How do you align internal customers with process require-ments while ensuring their continued participation and sup-port? Executives have the unique position and responsibili-ty of setting the tone and context for the definition of proj-ect governance within their organizations and creativelylinking it to overall strategy and objectives.

Three Steps for ActionToday’s leaders are taking their participation in the projectgovernance movement beyond the approval of a PMO char-ter. These individuals are taking an active seat in the visionand execution of project-related improvement initiatives toensure the alignment, viability, and sustainability of theentire effort. This occurs in a set of three general steps.

Step 1. Define project governance for your organization.Many corporate struggles and frustrations surrounding theadherence to project management processes may unknow-ingly be attributed to cultural and societal connotations tothe newly-introduced term “project governance.” Create themeaning for the word “project” in your organization. Does itencompass all initiatives or only projects over a certain

investment threshold, risk, or complexity? Next, create themeaning for “governance.” The first problem is that gover-nance, while indicative of the purpose, demonstrates noinherent value. In fact, the term governance conjures upimages of bureaucratic processes and protocols. No wonderorganizations experience pushback from internal customersin adopting new project life cycle phases, processes, anddeliverables. Shift the context of the word “governance,”challenging all the inherited meaning, to create governanceas the backdrop in which successful projects can be real-ized. Generate a positive meaning of the term “governance”to be the facilitative context in which more efficient projectteams, improved project quality and results, reduced risks,and improved resource utilization can occur. Finally, linkproject governance to organizational strategies like in-creased efficiency, improved customer satisfaction, andcost avoidance.

Step 2. Dispel the myth that project governance is thepanacea for all project challenges.

Leaders understand that establishing and employing projectgovernance involves creating or refining roles and account-ability structures, involving the right people, adhering to value-added processes, and leveraging sensible tools to sustainthe framework. All this is not accomplished overnight. Projectgovernance is an incremental effort that is not a quick fix.Project governance truly is an evolution, not a revolution.

Why Executives Should Care About Project Governance

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Three steps for action to create project governance:

Step 1. Define project governance for your organization. Generate a positive meaning of the term “governance” to be the facilitative context in whichmore efficient project teams, improved project quality and results.

Step 2. Dispel the myth that project governance is the panacea for all project challenges.It still falls upon project teams to properly plan, execute, control, and close projects usingskilled individuals, sound judgment, and constant communication.

Step 3. Initiate the cultural ripple.The culture must foster horizontal trust and cooperation among functional teams and verti-cal communication through the depths of the organization. This culture begins at the top.

Mixed in with the skepticism and criticism that may occur insome layers of the organization during the first stages ofintroducing project governance, there may be an oppositeexpectation in some areas. This other view is one of veryhigh expectations that project governance will be the meansto a successful project end. The reality that project gover-nance is the context, not the content, must be reinforced.Meaning, project governance is the space in which the day-to-day project activities occur. It still falls upon projectteams to properly plan, execute, control, and close projectsusing skilled individuals, sound judgment, and constantcommunication. Project governance is not the magical cureto resolve all project challenges but does offer the frame-work for the escalation and resolution of issues.

Step 3. Initiate the cultural ripple.One of the most difficult and most overlooked aspects ofintroducing project governance is the cultural implications.Accountability, visibility, and transparency mechanisms nowsurface team members and project stakeholders who maynot be meeting project milestones and objectives or fulfillingparticipation requirements. Organizational culture must shiftto be conducive to a project mindset and to provide projectteam members with the assistance they need to adapt tothe new ways of running projects. The culture must fosterhorizontal trust and cooperation among functional teamsand vertical communication through the depths of the

organization. This culture begins at the top. In my years ofconsulting, one of the biggest complaints I’ve heard is thelack of ongoing support from executive management inupholding the project governance framework. Often, thebiggest violators of the processes are the leaders whoestablished them in the first place. Leaders are the epicen-ter of culture. Create it, live it, and enable it. Again, as manyleaders are realizing, this goes beyond establishing steeringcommittees and a PMO and requires ongoing oversight andnurturing from the very top.

Project management has become a required core compe-tency for today’s organizations. Executives should careabout project governance not only to the extent of signing aPMO charter and appointing a team to move forward.Stalled efforts, continued project failures, and skepticalinternal stakeholders are prompting today’s leaders to bevital members in the vision and execution of project-relatedimprovement efforts.

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Darshana Patel is Vice Presidentof Project Governance at OnSiteand has worked with hundreds oforganizations around projectmanagement, business analysis,and quality assurance. Darshanais PMP and Six Sigma Green Beltcertified. She can be contacted [email protected]

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By Russ Martinelli and Jim Waddell

Program management has been in practice for decades,

but isolated to a few industries in which it was developed

and matured such as the U.S. Military and aerospace

industries. Today program management is widely recog-

nized as a true management discipline and institutions

like the Project Management Institute now recognize its

strategic importance and value to companies.

In many companies, program management is a primarybusiness function that aligns a firm’s specific businessobjectives with its execution efforts to successfully achievethe objectives. As the title of this article indicates, programmanagement is about achieving business results. We showhow program management is rooted in the achievement ofbusiness objectives, why it is utilized to resolve some of thechallenging business problems facing companies today,and how it functions as a strategic delivery system withinthe organization. This article provides an overview of thesetopics; a more detailed analysis can be found in our booktitled Program Management for Improved Business Results(ISBN: 0-471-78354-4).

Program Management DefinedA common, universally accepted definition of program man-agement does not exist. We define program managementas “The coordinated management of interdependent proj-ects over a finite period of time to achieve a set of businessobjectives”. Although all projects and programs deliver thetactical and operational deliverables, the real power of pro-gram management is the integration and management ofhighly interdependent projects to deliver a product, serviceor infrastructure capability that contributes to the achieve-ment of a company’s strategic objectives and desired busi-ness results.

The key words in the definition of program managementstated above are coordinated management, interdependentprojects, finite period and business goals. To bring a newproduct or service to market, or a new infrastructure capa-bility on line requires the work of many functions – such ashardware engineering, software engineering, mechanicalengineering, marketing, manufacturing, test, and so on.Programs therefore are organized into a core program teamstructure and a set of cross-discipline project teams.

Coordinated management of multiple projects means thatthe activities of each project team are synchronized throughthe framework of a common lifecycle executed at the pro-gram level by the program core team. For program man-agement, cross-functional coordination and integration hasto be extended to include cross-project coordination andintegration. Each program is made up of multiple projects,each of which is most likely cross-functional in nature.

Interdependent projectsAs the term implies, interdependent projects are those thathave a mutual dependence on the output of other projectsin order to achieve success. Commonly, the interdependen-cies come in the form of deliverables from one project team,and of which other project teams are dependent upon tocomplete portions of their work. Program managementensures that the dependencies between the multiple proj-ects are managed in a concerted manner.

A finite period means that a program is a temporary under-taking, having a point of beginning and the point of ending.The finite period concept is important as other definitionsfor a program imply that it is of an ongoing nature.

Program Management: It’s About the Business!

Definitions

● Product: A manufactured physical good that is new tothe firm.

● Service: Any primary or complimentary activity that doesnot directly produce a physical product. It is part of the non-goods transaction between a buyer and seller.

● Infrastructure capability: An element of any large-scale technological system consisting of immovable physical facilities that provides essential public or private servicesthrough storage, conversion, and transfer of certain commodities.

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Accomplishment of the stated business goals is the overrid-ing objective of a program, and the ultimate responsibility ofthe program manager. For example, in product develop-ment, a key goal of a program is normally to deliver theproduct within a specific market window. In a competitiveenvironment, time to market is arguably the most closelytracked metric by both the program manager and seniormanagement. However, delivery of the product is only themechanism to realize the true business goals – such as cap-turing additional market share, increasing profit throughsales and gross margin growth, and strengthening brandvalue through quality, features and customer support.

Why Program Management?Even though companies have invested an enormousamount of time, money and resources trying to improvetheir operational capabilities, many of these companies stillface serious business problems. Program managementoffers a systems approach toward business problems thatare related to the strategy and execution of delivering rev-enue generating solutions for products, services and infra-structure. As such, companies employing the program man-agement model have found competitive advantages in solv-ing the following business problems.

➤

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Lack of business integration. Rivals can be outplayed inthe long run by a company’s ability to execute accurate-ly, timely and repeatedly through program managementpractices that integrate and synchronize the work of theoperating functions while focusing the work on intendedbusiness objectives. Program management is an effec-tive approach for breaking down the functional barriersthat prevent effective and efficient product, service orinfrastructure development.

Misalignment between strategy and execution. In alarge number of organizations there is often a chasmbetween business objectives and project managementactivities. Program management can be viewed as theorganizational “glue” that translates strategic businessobjectives into actionable plans and then manages thetactics to achieve the desired business results. When theprogram management model is employed, the gapbetween strategic elements and project execution iseffectively eliminated.

Mitigating business risk. Risk-taking is necessary inmany industries if a company is intent on being a marketleader. Products, services or infrastructure capabilitiesthat don’t push the risk envelop may not be worth thedevelopment investment required. Risk-taking involvesunderstanding the risk/reward ratio, then managing therisks in each development effort. To be successful, theprogram manager and his/her team must manage riskacross the multiple, interdependent projects that are partof the overall program.

Managing complexity. The days of stable, slow toevolve designs are a thing of the past. This requires thesimultaneous management of multiple, highly interde-pendent projects. Program management puts a sys-tems structure in place which provides an effectiveframework for tackling highly complex developmentefforts by disaggregating the complexity into manage-able elements organized as projects, and then integratethe element outputs into a holistic product, service orinfrastructure capability.

Interdependent elementsThe problems outlined above are business problems andnot program or project execution problems. Therefore pro-gram management is meant to be viewed as a primary busi-ness function within the enterprise.

Companies have invested much time, money and humaneffort into refining and improving each of their independent

The Integrated Management System™is the mechanism from which new products, services orinfrastructure are conceived and developed to realize themission and strategic objectives of the business 7.

Strategic Management

Portfolio Management

Program Management

Project Management

Team Management

Strategic

Tactical

Aligning strategy and execution to deliver the whole product

}

}

➤

functions and processes, only to come to the conclusionthat they are not coming any closer to turning their ideasinto positive business results. This fact is leading businessleaders to the realization that their independent variablescannot remain independent. Rather, they must be trans-formed into a set of interdependent elements that form acoherent development system.

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Integrated Management SystemThe Integrated Management System™consists of the strategic managementand portfolio management processes.The strategic management processinvolves definition of the companymission, analysis of the internal andexternal environment, identification ofthe strategic objectives, and definitionof strategic options to fulfill the objec-tives. The portfolio managementprocess includes the review andselection of the strategic options to beimplemented, and evaluation of thesuccess of the strategic process inachieving the business objectives.

Project management and team exe-cution, the tactical elements of theIntegrated Management System™,form the basis for planning, imple-menting and delivering the interde-

pendent elements of the product, services or infrastructurecapability. The project managers are responsible for thedetailed planning and execution of the project deliverablespertaining to their respective operating functions (e.g.; hard-ware engineering, software engineering and marketing).Once the integrated program plan is created and approved,each project team executes their respective project withinthe program structure, focusing on the tasks, milestonesand deliverables required to develop and deliver theirrespective piece of the whole product, service or infrastruc-ture capability under development.

At the heart of the Integrated Management System™ is theprogram management function. The program manager doesnot create the mission or strategic objectives – this is therole of senior management. Nor does he plan and executethe project deliverables – this is the role of the project man-agers and project team members. The program managerdoes ensure the attainment of the value proposition of theprogram by delivering an integrated solution through thecoordination of the multiple interdependent projects that arepart of the overall program. The integrated solution resultingfrom the program, in the form of a product, service, or infra-structure capability, becomes the means to achieve a com-pany’s strategic business objectives.

ConclusionWe define program management as the coordinated man-agement of interdependent projects over a finite period oftime to achieve a set of business objectives. In practice, pro-gram management offers a systematic approach to resolvesome of the key business problems facing companiestoday, including poor business integration, misalignmentbetween strategy and execution activities, management ofbusiness risk, and conquering product and process com-plexity. As the heart of the Integrated Management System™,program management is the key business function thataligns the strategic and tactical elements of a business’development efforts. As such, it becomes a delivery mech-anism for achieving a firm’s strategic objectives and intend-ed business results.

■

Russ Martinelli is the Manager ofProgram Management Methodswithin the Corporate PlatformOffice at Intel Corporation, wherehe focuses on the definition andimplementation of program man-agement practices across Intel. He is also the chairman of Intel’sglobal Program Management Com-munity of Practice, an adjunctprofessor at the University ofPhoenix, and co-founder of theProgram Management Academy. Contact: [email protected]

Jim Waddell is an independentconsultant specializing in programmanagement and mergers andacquisitions. He is also adjunct professor at theOregon Graduate Institute, a foun-ding member of the ProgramManagement Forum in Portland,and the co-founder of the ProgramManagement Academy. Contact: [email protected]

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By Morten Fangel

Danish project management consultant Morten Fangel is

one of the authors in Project Manager’s Handbook:

Applying Best Practices Across Global Industries, to be

published by McGraw-Hill in August this year. The other

authors are David I. Cleland and Lewis R. Ireland. In this

article Morten Fangel gives a distillation of his contribu-

tion to the handbook, Twelve instruments to make project

management more professional.

The effort to continuously advance project managementprofessionalism is part of every successful project-basedcompany. This advancement process is a task not only forcompany management and various specialists dealing withcompetence and method development. Your own compe-tence in managing projects includes contributing to an on-going and constantly improved management of projects – atboth the project level and the corporate level.

This article offers you an opportunity to evaluate both yourown and your company´s efforts toward advancement ofproject handling – and to learn how those efforts can beimproved.

A portfolio of 12 instruments is presented for your use. Theycover two types:

● Classic methods, such as development of guidelines and training.

● More recent methods, such as coaching, sparring be-tween project managers, and organizational changes.

Based on the checklist of 12 instruments, you can refer tocorresponding reports of practical experience gained duringsuccessful advancement of project management profes-sionalism in organization and corporate settings.

Managing the advancement processThe task of advancing the level of project handling can beconsidered broadly:

● To open up for ad hoc initiatives, e.g., participation in external courses and the ad hoc introduction of new methods and tools.

● To plan a coherent advancement process based on an analysis of requirements, with focus on describing selected methods and tools as well as organizing rele-vant courses.

● To apply a broad spectrum of instruments in an inte-grated development processaimed at advancing the exercised competencies of project managers and achieving real improvements in practice.

Concerning organization of the advancement effort, thereare three alternative options:

1. Simply to handle the advancement initiatives within units in the line organization as an existing staff func-tion of Human Resources Development.

2. To apply the project management concept, i.e., to handle the advancement initiatives as a cross-organiza-tional project (but perhaps using the term ”process” or ”program” to avoid confusing the process contents with the management concept).

3. To form a unit in the organization, e.g., a Project Management Office, to manage the advancement processes and act as a ”Centre of Excellence.”

Twelve instruments to make project managementmore professional in your company

Manage a unit inthe organisatione.g. a projectoffice

Handled as aproject acrossthe organisation

Handled in theexisting lineorganisation

Ad hoc coursesandmethods/tools

Advancementprocess on methods/toolsand appropriatetraining

Developmentprocess on competencies and incorporationof improvements

Scope of the process

Co

ncep

t o

f o

rgan

isat

ion

In this scheme you may characterize your company’s present effortstoward improving PM and indicate how the task is expected to bedefined and organized in the future.

Trend of change in th

e approach of advancing

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Methods for advancing project managementThe total advancement process can be divided into threemain focus areas:

1. The entire advancement process including process management, anchoring of the advancement, and clarification of the advancement requirement.

2. The project level including advancement of project methods, training for project involved, coaching of pro-ject managers, and assistance to project management

3. The company level including promotion of exchanges of experience, career path for project managers, organiza-tional initiatives, development of portfolio management,and evaluation of the advancement effects.

1. Managing the advancement process

– Planning coherent advancement process

– Establishing internal advancement group as initiators

2. Anchoring the advancement initiatives

– Anchoring the effort solidly at the company management

3 Clarifying need for advancement

– Analysis of strong & weak points in the project handling

– Inspiration via conferences or introductory seminars

– Benchmarking as to other companies & projects

– Evaluation of total level of maturity as to project culture

Project level4. Developing project management guidelines

– Project guidelines with focus on improvement

– Paradigm for project manual with forms

– Platform for virtual communication in the projects

– References to good examples and experience of colleagues

– Method description in literature or course materials

5. Training project personnel

– Internal basic courses for project managers, participants and owners

– Extended training courses for project managers

– Course sessions incorporated in current project process

6. Coaching of project managers

– Focus on planning and evaluation of the project management

– Coaching of the project manager during the project process

– Review/audit of the management effort in the project

7. Assisting project management

– Facilitator for introductory seminars

– Project guides assist in the daily routine

– Facilitator at final evaluation of the project handling

Project company level8. Facilitating exchange of experience

– Rules for learning and communication concerning management of projects

– Internal forum/network for project managers and other involved parties

– Participation in seminars - prepare and give lectures

9. Project managers’ career paths

– Certification as a lever for competence development

– Ensure status for project managers via formal career path

10. Changing company organization

– Project office as initiator and support for improved handling

11. Advancing portfolio management

– Prepare the scope of project orientation in the company

– Graphic presentation of all projects incl. the anchoring

– Prepare priorities and reporting of the projects

– Management pro-active role as to the projects

12. Evaluating effect of PM advancement

– Systematic estimate of short- and long-term effects

Morten Fangel is MD for FangelConsultants Ltd, Copenhagen, Denmark.He works as management consultantand specialist in methodologies forproject preparation and start-up – andfor planning and evaluation of projectmanagement. Morten Fangel is alsothe founder of the Association ofDanish Project Management, of whichhe today is the Executive Director.He can be reached at [email protected]

The twelve instruments in a list that can be applied as an overall working structure of content to use in planning an implementing project management in an organiza-tion. Both relevant focus areas and instruments, as well as timing, should be con-sidered when planning the advancement process in your company.

In general we recommend applying a broad range of instru-ments to ensure that the requested improvements takeplace in the practical performance of project management.Further, we have learned from experience that the effect isincreased when the advancement process focuses onachieving a limited number o selected improvements.

Therefore, we recommend defining a limited number oftargeted improvements and implementing these by using a

a broad range of instruments. Do not rely on one singlemethod – such as issuing new internal project guidelinesthat cover nearly all aspects of project management. If youwant to do everything you will end up with nothing! Further,we recommend that all processes be closely linked to themanagement of specific projects andproject portfolios –and that a step-wise anchoring takes place based on visibleresults and achieved effects. ■

Advancement process

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Welcome to Krakow, a city wrapped in legend,where time flows differently, and where everymoment becomes a moment of history. Forcenturies Krakow was the capital of Poland, theseat of kings, drawing great scholars and artistsfrom the whole world. It is their talents andimagination we must thank for the city’s richlegacy of unique historical relics, which reflectthe most important trends in European culture.

The renaissance Royal Castle at Wawel, thegothic St Mary’s Basilica, the historical tradepavilions of the Cloth Hall, the former separateJewish city of Kazimierz, and even the NowaHuta district, absorbed by Krakow togetherwith its socialist-realist, industrial architecture,are all places which make a visit to Krakowextremely worthwhile.

Although the city no longer plays such animportant administrative role, for many people,thanks to its rich history, Krakow neverthelessrepresents a synthesis of all things Polish, con-necting tradition with modernity. In the specialatmosphere of the beautiful and mysteriousstreets of the Old Town and Kazimierz you willfind everything you need to allow you to escapefrom everyday life. Galleries full of exhibitions,cafes, pubs and restaurants: all of this is anintegral part of any visit to Krakow. And all thisis merely a modest part of what we can offertravellers seeking exciting destinations on theworld map.

InternationalProjectManagementAssociation

For further informationPO, Box 1167 3860

BD Nijkerk The Netherlands

Phone: +31 (0) 33 247 3430

Email: [email protected]

Fax: +31 (0) 33 246 0407

internet: www.ipma.ch

Welcome to Krakow

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18 - 21 June 2007

IPMA World Congress 2007

Location: Cracow, Poland

Project Management – Essential Reality for Business and Government

For more information, please visit www.ipma2007.com

30 - 31 October 2007

The APM Project Management Conference – The Business of Projects

Location: London, United Kingdom

An interactive forum bringing together project management professionals and key decision makers

across the public and private sector.

For more information, please visit www.apm.org.uk/conference.asp

14 -16 February 2008

IPMA International Expert Seminar 2008

Location: Zurich, Switzerland

Ethics in Projects

For more information, please visit www.spm.ch or e-mail [email protected]

14 -16 February 2008

IPMA World Congress 2008

Location: Rome, Italy

Project Management to Run

For more information, please visit www.ipmaroma2008.it.

Upcoming IPMA Events

Project Management Practice is a quarterly magazine and is published by IPMA (International Project Management Association),

P.O. Box 1167, 3860, BD Nijkerk, The Netherlands.

Tel: + 31 33 247 3430 Fax + 31 33 246 0470 Email: [email protected] Web: www.impa.ch

Henrik Jönsson, Vice President IPMA– Email: [email protected]

Disclaimer: Articles submitted may be lightly edited for space allocation purposes. The International Project Management Association does not guarantee the

accuracy of statements made by journalists, contributors and advertisers, nor accept responsibility for any statement which they may express, in this publication.

16457 IPMA 07-04-25 16.46 Sida 19

THE PLATINUM STANDARD IN CERTIFICATION

www.ipma.ch

Globally recognised, the prestigious IPMA 4 Level Certification

System is the platinum standard in project management excel-

lence. Valued both by management practitioners as well as

employers, it is the perfect way to demonstrate a solid founda-

tion and clear commitment to the field of project management.

If you’re already at the top of your field, make it official with the

only globally recognised project management credential that

twins career path development with professional recognition.

SEAMUS WOODSDirector of Governance and

Assurances

Health Services Executive -

Ireland

MY MOTIVATION TO BECOME A CERTIFIEDPROJECTS MANAGERThe Health Services is currently going through a major change

process, with an ambitious and demanding reform programme

commenced to modernise and radically reform the structures and

business processes around health service delivery. Project

Management is seen as a key tool to achieve these objectives.

A key role of my office is to drive commonality across projects by

providing methodologies, tools and processes and standards

within the Primary Community and Continuing Care Pillar.

My achievement in attaining Level B Certification will hope-

fully further promote the profession of Project Management

throughout the Health Services, and encourage others to deep-

en their skills and knowledge in this area and to formailse their

project management skills through certification.

16457 IPMA 07-04-25 16.46 Sida 20

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Project Management - capm.hr lowres.pdf · Project Management PRACTICE The Professional Magazine of the International Project Management Association ISSUE 1 SPRING 2007 in this issue…