Project Management is About Business!

 

By Mike Adams, PMP® 
President Elect - PMI Otowi Bridge 
@MichaelAdamsPMP

I’ve been involved in project management for nearly 17 years. I’ve managed and worked on construction projects, home remodel projects, IT infrastructure projects, IT software implementation projects, and strategic initiative pilot projects for nonprofits.

All of these projects have one thing in common. Every single project somehow serves an important business need. Sometimes the project manager may be aware of the business need, and sometimes not. Sometimes the project manager may be focused on producing business value and sometimes not. The best projects I’ve worked on were ones where the PM was clear about the business value of their project, and they actively invited both the project team and broader group of stakeholders to explore how the project could fulfill on their needs, or produce value for them.

In my experience, the best PMs are able to see a project within the business context that justifies that project, and they’re able to zoom in and explore project details from that same context. It is easy to get focused on aspects of the project, particularly aspects where a PM possesses expertise, like carpentry, or use of the best technology. Alternately, a PM might be overly focused on fulfilling the triple constraint, rather than seeing where the project might be aimed in the wrong direction and bringing that to the sponsor or steering committee with a suggestion for reevaluating the scope, schedule or purpose in light of changes in the market, available technology, or economy.

One of my favorite examples is the “Iridium Constellation Project.” By traditional standards, this was a well managed and successful project, however it failed to fulfil on the anticipated business benefit, and within nine months, the company was forced into bankruptcy. For those, who are unfamiliar, the Iridium constellation was a network of satellites, put in place to provide handheld communication via phone from every location on the globe.

Iridium was well planned, well executed, and at its inception, the landscape of mobile communication was spotty and unreliable, so it had a great business justification. By the time the project was completed, however, mobile communication had transformed, and the need for a handheld satellite phone had become very specialized. Cellular networks had become affordable, reliable and widely adopted. The market had changed dramatically, leaving Iridium in competition with a robust and much cheaper alternative for mobile communication. Some will say the project sponsor and executive leadership should have seen the direction of things and cancelled the project. No argument here, however, this is a perfect example of why project managers ought to focus on delivering business value, rather than simply adhering to the confines of the triple constraint.

Before you suggest that my article falls outside of a PM’s job, keep reading, because from a historical perspective, you are right. However, as our economy and the very nature of business transforms, project management is having to evolve to stay relevant. In December, PMI is implementing changes to the requirements for maintaining your PMP certification. As part of these changes, PMI has introduced the talent triangle, which adds elements of strategic thinking and leadership to the tool bucket a PM is expected to maintain. In February, at the Region 7 Leadership Summit, the PMI region 7 staff partner pointed out that business leaders participating in the PMI Global Executive Council are asking PMI to develop standards so that PMP holders will demonstrate and bring competence with strategic thinking and leadership. The council indicated that while technical project management skills are important, they are comparatively easy to develop in employees, but that leadership and strategy are where they could really use PMI’s support.

PMI responded by developing the PMI talent triangle. Check it out if you haven’t done so yet. It will impact your future training and action plans, in terms of maintaining your PMP. Also, PMI’s OPM3 information is worth a look. These are good indicators of what businesses need and the direction our profession is going.

Project managers are increasingly expected to step outside of triple constraint project management and engage in business analysis, organizational change management, and business strategy. They are expected to not only manage work within the triple constraint but to provide leadership, and keep an eye on the business value of their projects. From my perspective, these changes are positive. They serve to increase the value of experienced project managers, and they certainly elevate the profession.

What are your thoughts about new trends in project management? How are you preparing for tomorrow’s economy? Are you ready to partner with executive leadership in steering projects towards fulfilling on business strategy?