3 Ways to Balance The Delivery Ecosystem

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by Kevin Korterud

 

Once upon a time, projects were just projects. They were simple, had small teams and quite often finished on time. Projects were viewed as a path to operational improvements that reduce manual labor and free up people for other tasks.

 

As time marched on, the notion of a project began to increase in scale and complexity. Technology projects, for example, began as modest hardware and software initiatives. Over time, the technology project landscape has changed to include network, servers and cloud infrastructure. Software projects began growing into systems, software packages and complete end-to-end solutions.

 

As the quantity and business focus of project work increased, they became packaged into programs. Programs were created to help orchestrate myriad projects into cohesive outcomes. These were governed by an expanding slate of waterfall methods designed to both enable and oversee delivery.

 

With the advent of agile, a different form and pace emerged. Product delivery moved toward quicker and more frequent outputs, with delivery cadence driven by what an organization believed was best for customers and consumers.  

 

Today, organizations have a delivery ecosystem of project, program and product delivery work based on internal and external dynamics. As the ecosystem changes over time, the balance of projects, programs and products does as well.

 

With project, program and product delivery all moving in different directions and at different speeds, how can an organization prevent these efforts from crashing into each other? Here is an approach I follow to help define, oversee and enhance the natural delivery ecosystem:

 

  1. Define the Ecosystem   

First, ensure that definitions are in place. These should be clear and concise portrayals of the work to be performed. Having these definitions commonly understood will go a long way in matching the correct policies, processes, controls and people to the form of work.

 

Here are some sample definitions:

 

  • Projects are work efforts that reflect process and system interactions with fixed durations to complete. They contain teams that form and disband, have a budget under $10 million and last under a calendar year.

 

  • Programs are packages of projects intended to contribute to a common business with a budget of over $10 million and that last longer than a calendar year.

 

  • Products reflect process/system-to-consumer interactions with delivery cadence based on dynamic market needs. They have a mutually agreed-upon spend, typically employ agile methods and employ a continuous team that improves delivery efficiency over time.

 

These definitions also serve to identify the portfolio proportion of these different types of work, which helps determine the right people and supporting structures for success.

 

The ecosystem can change and flow to meet the needs of organizations, market forces, suppliers and people. Given this ebb and flow, one practical reality of this ecosystem is that any one form of project, program and product work cannot exist as 100% of the work.

 

2. Govern the Ecosystem  

Any delivery ecosystem left to its own resorts will result in chaos with teams having different perceptions of how project, program and product delivery  should be executed. This chaos will result in delays, additional costs and sometimes stalemates as teams negotiate over the execution of work efforts.

 

There needs to be balancing forces in place that help direct delivery. A delivery ecosystem governance model sets the boundaries for delivery work from ideation into formation and through execution. The governance model implements policies, processes and enabling artifacts that create predictable and repeatable attainment of desired results. This governance model is typically overseen by an enterprise delivery management office.

 

For example, one process within this model sets the venue to identify, confirm and release for execution the proper delivery process for a type of work. A portfolio review board based on input from the sponsor would analyze the characteristics of the work and determine whether it is a project, program or product. The outcomes from this portfolio review board promote consistency, ensure impartiality and avoid costly re-work due to poor decision-making.  

 

  1. Harmonize and Improve the Ecosystem

Even an effective delivery ecosystem needs to have a “tune-up” every once in a while. As changes in business strategy, support for new regulations, market expansions and technical innovations come into play, the delivery ecosystem needs to change accordingly. These drive the need for a function to continuously harmonize and improve the delivery ecosystem. An EDMO will be the primary vehicle to both harmonize and improve the delivery ecosystem within an organization.

 

Improvements can include initiatives to reduce mobilization time, avoid resource contention and improve supplier integration. These initiatives are universal in nature and can be consistently applied to improve project, program and product delivery.   

 

With the increased complexity of work and differing approaches for projects, programs and products, you need a means of harmonization to prevent misalignments, conflicts and collisions between work efforts. Harmonization processes can include release, dependency, data integration and test environment management.  

 

Embrace the New Normal

Organizations need to recognize and embrace the different forms of delivery that are now the new normal. By adopting a structured approach to the definition, oversight and enablement of projects, programs and products, they can be delivered in a synergistic manner to lower costs while improving time to market and quality. 

 

How do you balance the project, program and product initiatives at your company to avoid weather problems?

 

Posted by Kevin Korterud on: June 08, 2019 04:20 PM | Permalink

Comments (5)

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Good practical points.
Thank you for sharing

Thanks for sharing, very interesting article

I like the mention of the growing complexity. I think there have always been large projects. (The flight to the moon, e.g. Even if it was a scam, as some tinfoils like to claim. What a huge project!) But these days we are facing a bigger complexity in the surrounding parameters and thus in our projects too. Well written!

Excellent thoughts. Today no project exists in isolation. External ecosystem becomes important in this context. Partnering with players within the external ecosystem for open innovation becomes important in this context.

Good stuff!

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