By Kevin Korterud
Program management made news in December (though perhaps not front-page headlines) when the United States Senate unanimously approved the Program Management Improvement Accountability Act. The legislation enacted a number of initiatives for improving federal program delivery, which has suffered from past budget, schedule and quality challenges.
While government legislation is not necessarily my weekend reading of choice, I recently spent time reviewing the new law. It quickly became apparent to me that, although targeted at improving the delivery of U.S. federal programs, it includes many considerations that are universally relevant to program delivery, even if you’re working in the private sector.
As part of the legislation, the deputy director of management at the Office of Management and Budget has been tasked with several new functions related to program and project management. Let’s take a look at two that I find particularly exciting and relevant to program managers around the world.
1. Chart A Strategic Course
Executives often tell me they don’t know where to start when it comes to improving program delivery. There are typically so many interrelated issues that it’s difficult to determine which actions would have the greatest impact on delivery results.
Other disciplines, such as technology architecture, business change management and customer satisfaction, typically work from some sort of strategic or transformational roadmap. The roadmaps identify common issues, solution strategies and transformational initiatives that drive success for that discipline.
The new federal legislation requires the deputy director of management to “establish a 5-year strategic plan for program and project management.” A program management maturity roadmap will provide a common vision around necessary improvements. And given the size and complexity of federal programs, it will also help teams avoid repeating prior delivery missteps, and enhance the performance of program management processes.
2. Lay a Solid Foundation
Early in my project and program management career, it was common for companies to have a homogenous, centralized employee workforce with strong business and technical domain knowledge that was built over many years. Today, the landscape of program delivery is much more fragmented and fragile.
Global delivery centers, various delivery approaches (waterfall vs. agile), business leaders that rotate every few years, contractors that play a larger role in delivery and emerging technologies are all components that complicate program delivery. It is a wonder that program delivery is ever successful!
The new federal legislation says the deputy director must also, “oversee implementation of program and project management for the standards, policies, and guidelines…” The creation of program management standards, policies and guidelines will serve as a foundation to harmonize the discordant realities of modern program delivery. By establishing unified rules, boundaries, practices and performance metrics that drive a cohesive approach, the inherent complexities of today’s programs can be successfully addressed.
What elements of the Program Management Improvement Accountability Act do you find most intriguing? I look forward to discussing.
By Kevin Korterud
Beware: Strategic initiatives aren’t the same as typical projects—they tend to be considerably more complex. For example, strategic initiatives are usually bound by some form of dramatic urgency around schedule (regulatory, market), costs (process improvement) or consumer satisfaction (subscription, satisfaction).
But the differences don’t end there. Let’s look at some other complex dimensions that must be considered when leading a strategic initiative:
1. Stakeholder Management
The stakeholder landscape is much more broad on a strategic initiative than a project. In strategic initiatives, stakeholders typically span multiple departments within a company, creating multiple primary stakeholder groups. And these stakeholder groups will often have nearly equal shares in the success of the initiative, thus creating potential authority conflicts.
In addition, there are also governance functions—risk management, legal, etc.—that will have either a primary or secondary stakeholder role.
The complex stakeholder landscape necessitates communication processes that serve vastly different audiences. There exists both a two-dimensional communications problem: one dimension is horizontal (i.e., across stakeholders) and the other is vertical (i.e., involving higher levels of leadership). What once was a linear communication process on a project now becomes more of a matrix process to deal with the breadth and depth of stakeholders.
Communications will need to be carefully tailored to different functions and levels of stakeholders. For example, more detail for operational functions, and simple, high-level summaries for leadership consumption.
3. Progress Tracking
Strategic initiatives bring with them inherent complexities that can quickly overpower the progress report tracking processes that are commonly used to manage projects.
For example, strategic initiatives will typically have more suppliers than on a typical project. These additional suppliers bring with them different commercial arrangements, delivery methods, status reporting formats and progress metrics. On top of that, all of these progress tracking components need to be harmonized across the various suppliers in order to achieve a cohesive and durable view of progress position.
Project managers will need to review, refine and agree on common progress tracking processes, reporting and metrics that are universally accepted by all suppliers. By creating this single harmonized view of progress tracking, you are more readily able to identify and address delivery volatility.
When first presented with the prospect of leading a strategic initiative, project managers need to balance the excitement of leading a high-visibility engagement with the practical realities of effectively and efficiently managing delivery. By putting essentials in place, project managers can successfully move on to the next step in the career journey: leading their second strategic initiative!
What essentials can your share with project managers new to strategic initiatives that will put them on the path to success?
By Marian Haus, PMP
The discipline of project risk management is all about limiting and hindering the adverse impacts of negative events. The complementary discipline of project opportunity management is all about increasing and enabling the beneficial outcomes of positive events.
In this post I want to look at both practices and treat them as a whole— Risk and Opportunity Management (ROM)—while showing that managing them is nothing more than common sense.
Internal vs. External
The risks and opportunities that are triggered by external project sources are generally out of the control of the project manager’s influence (e.g. organizational changes, political climate changes, strategy changes, technology shifts, etc.). External risks and opportunities are generally difficult to anticipate, avoid or eliminate. The best strategy to approach external factors is to mitigate their impact when they occur.
Most often, however, the source of project risks and opportunities are internal and can generally be controlled by the project manager and the project team (e.g. technical and quality issues, stakeholder requests, scheduling, requirements, budgets, etc.). Internal risks and opportunities are generally easier to anticipate, mitigate, control or exploit, since such events will show up in the day-to-day project work.
Now let’s talk about ROM.
The key of practicing effective ROM is twofold:
1. Awareness: The project team has to be aware that ROM will be conducted regularly, like any other project activity.
2. Active: ROM will have to be conducted actively and not reactively (e.g. when really needed).
Allowing things to happen, letting opportunities slip, or, even worse, being risk averse (i.e. zero tolerance for errors and failure) is not only project management negligence or ignorance. It is yet another project risk (of project-internal nature). Hence, make sure you as a project manager will not fall into this trap and become a risk for your own project!
What is the easiest way for your team to be aware and actively conduct ROM? First, put it on the paper—or even better, put it on the board. Allow the project team to write down every risk or opportunity they will encounter during the project course. Next, have the team split the board into four quadrants, based on probability and impact (i.e. low-probability + low-impact, low-probability + high-impact, high-probability + low-impact, high-probability + high-impact).
Then in regular project status meetings validate and agree within the project team on the recorded probabilities and impacts. Certainly there are several more elaborate ways to further qualify and analyze risks and opportunities (e.g. likelihood distributions, decision threes, etc.), but I prefer to keep it simple if possible.
Last but not least, actively capturing and talking about risk or opportunities is not enough. You also have to do something! You need a risk and opportunity response or strategy—whether it’s changing the project plan, getting more resources on board, changing project scope, etc. But that’s a topic for another day.
What do you think? Is ROM nothing more than common sense (at least in its basic form)? What’s your approach to ROM?
3 Steps to Outsourcing Success
Nontraditional Project Management,
PM & the Economy,
Categories: Benefits Realization, Best Practices, Change Management, Complexity, Innovation, Innovation, Leadership, Leadership, Lessons Learned, Lessons Learned, Nontraditional Project Management, PM & the Economy, Program Management, Project Delivery, Project Failure, Project Planning, Project Requirements, Risk Management, ROI, Roundtable, Stakeholder, Strategy, Teams
By Peter Tarhanidis
When leaders use outsourcing it is often in an effort to enhance the organization’s value proposition to its stakeholders.
Outsourcing allows leaders to focus on and invest in the firm’s core services while using cost effective alternative sources of expertise for support services.
When services are outsourced, management and employees need to prepare for a transformation in organizational operations—and project managers must establish a strategy to guide that change.
Creating an Outsourcing Strategy
Project managers can help to create an effective outsourcing strategy based on a three-part structure:
1. Assess the current state
This assessment should define the firm’s:
2. Consider the “to-be” state
The to-be state should be designed based on a comprehensive evaluation and request for proposal, including a good list of best alternatives to negotiated agreement items.
The to-be state must consider:
3. Consider the governance required to sustain the future state
A new internal operating model needs to be formed. This includes establishing teams to manage the contract, such as senior sponsorship, an operational management team or a vendor management team.
Then the outsourcer and the outsourcing organization should focus on continuous improvements that can be made to the process.
Avoiding Outsourcing Pitfalls
Project managers can avoid a few common pitfalls in their outsourcing projects:
Overall, if done with a defined end in mind, leaders can capitalize on outsourcing by reducing operational costs, reinvesting those savings in core services, and providing access to expertise and IT systems that would normally not have been funded via capital appropriation.
Have you been a part of any outsourcing efforts? What advice would you offer to project managers involved in similar projects?
By Peter Tarhanidis
Happy customers are better customers. Savvy organizations develop a customer experience strategy to make them happy, and savvy project managers understand that the customer experience should drive digital projects forward. Smart digital practices should enable a better customer experience by re-evaluating the customer value of processes and the performance of operational teams.
Here are three tips for project managers delivering digital projects tied to a customer experience strategy:
1. Align the attributes that drive customer experience across projects. Once identified, chart these attributes back to customer journey maps, processes and service level measurements, and integrate them into technology investment decisions. This will ensure funding for digital projects.
2. Automate customer experiences to simplify the journey maps. Analyze the pain points across the customer journey map. Empathize with how they interact with the channels to obtain your product or service. Hone in on the negative areas that drive the experience and create a portfolio of improvement opportunities. These improvements should have a complementary operational cost reduction. Moving away from intense labor-driven activities to automated customer self-service approaches achieves operational excellence.
3. Create a service culture in your organization. While transitioning a project into operations, train teams on providing superior customer service, recognize service representatives who model best practices, and integrate customer experience measures into performance compensation systems to drive behavior changes and reinforce the new culture.
Thankfully, technology advancements in customer relationship management have created measurement tools that make it easier than ever to understand what customers are thinking and want changed. Look to these three categories to help target improvement efforts:
Net Promoter Score defines the voice of the customer and an overall satisfaction rating.
Tools that scan social media platforms (e.g., Facebook, Twitter, Instagram) to gather brand feedback.
Channel content management tools that highlight the performance and value of various types of customer interactions—whether via email, websites, or phone, for example.
The bottom line: Let the customer experience guide the selection and execution of customer-facing digital projects—and then look for boosts to customer experience scores.