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 Taralyn Frasqueri-Molina
In a small business, like a startup, organizational project management (OPM) may seem too big. At a large blue chip, layers of OPM may be standard operating procedure. But what if your org is somewhere in between? On one hand, you're past the days of moving furniture yourself, on the other hand, you're not yet cutting paychecks for 2000+ employees.
First, let's establish that OPM is a good thing. Linking strategy with implementation across an organization to deliver on portfolio promises and realize value is, trust me on this one, a good thing. But OPM at scale is even better. And that is because if you don't scale OPM to where your org is right now, it may seem that OPM is too complex to even attempt at all.
And if OPM is a good thing, then no OPM is probably not so good.
I've seen what happens to a business that doesn't have an OPM strategy in place. The business is moving along successfully but then the stumbling starts, and then maybe stops, but then it starts up again and continues unabated. Teams are frustrated that progress has halted and find they're taking the blame or blaming each other. Leadership pushes the same answers to newly arisen problems—work harder, faster, longer.
The Benefits of Scaling
OPM at scale ensures the strategy that your entire enterprise is about to adopt is the right fit.
Too light (but it may work for a startup), and your undertaking becomes inconsistent, priorities become ever-changing because there's no clear focus. The entire system is not reliable enough to deliver.
Too rigid (but it may work for a Fortune 500), and you may get in your own way with bottle-necking processes, decision-making by committee, waiting for an approval exit gate that never arrives, wasting time because the system is not flexible enough to deliver.
Where too much process is a hindrance (but may work for a large org) and too little is volatile (but may work for a fledgling company), start with some core principles that are key for your org and build from there.
An OPM at scale strategy could look something like this:
At your next quarterly review, examine how your custom OPM framework is doing. Are you all still aligned on, not just the goal of your portfolio, but the goal of your OPM strategy? Ready to go bigger and start maturing your framework? Or instead do you need to scale back?
What experience do you have with implementing OPM to scale?
Want to see a fully baked standardized model, take a peek at PMI's Organizational Project Management Maturity Model (OPM3®).
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.
By Kevin Korterud
As project delivery methods have evolved, so has project leadership. Hybrid approaches have emerged: Traditional waterfall project and program managers are now faced with the prospect of having a portion of their work use iterative agile approaches. Agile Scrum Masters and product managers executing rapid iterations of new products now have to contend with budgets, financial forecasts, release schedules and business case benefits, as well as with aligning implementation of products with other projects across the enterprise.
With this as a backdrop, a frequent question that comes up from my colleagues is whether an industry needs a project manager who knows agile, or agile leads who are competent in more traditional project management practices. In today’s complex world of delivery, we urgently need both.
1. Project Managers Need to Understand Agile
It’s inevitable that a project manager will at some point oversee an agile delivery process. So it’s important that project managers start their journey to competency as soon as possible. This journey can begin with training in agile methods as well as shadowing an agile lead to see how the iterative process works.
As the journey continues, project managers will start to immerse themselves in advanced areas such as agile metrics, alignment of agile to testing and release processes as well as the people factors. A project manager will soon see what sort of projects can best be delivered through agile vs. waterfall methods, as well as the linkages to enterprise functions required regardless of delivery approach.
2. Agile Leads Need to Understand Project Management
Agile leads typically have experience with iterative methods used to quickly shape and deliver solutions. In addition, they typically have a strong business analysis background that comes into play when defining user stories.
In the past, these skills alone were sufficient for agile delivery efforts.
With the complexities of contemporary delivery, however, many agile leads now encounter similar expectations when it to comes to schedule, budget, product quality and business case realization as their waterfall counterparts.
These expectations compel agile leads to gain skills in traditional project management areas such as estimation, forecasting, resource management, technical requirements as well as testing and implementation practices. Acquiring these skills will enable agile leads to deliver higher-quality products in a more timely and efficient manner.
3. Everyone Needs Enterprise Function Support
As hybrid project delivery approaches become more common, the considerations for aligning delivery activities to produce the most value to an organization become more numerous. These considerations can include (but are not limited to) the speed at which agile produces product iterations, business and technology complexities, and the increasing expectations of consumers.
All of this amplifies the importance of enterprise functions such as portfolio management, release management and resource management. These and other traditional enterprise delivery disciplines have been identified by the Scaled Agile Framework (“SAFe”) as being key to success.
It’s not so much that the SAFe framework has had a “eureka moment” around enterprise functions as new innovations. Rather, it has identified the critical need to have these functions in place and engaged for all types of delivery. Both project managers as well as agile leads can be more successful when tightly integrated with enterprise functions. Without having robust enterprise functions in place, organizations will struggle with more frequent schedule, resource, dependency, testing and implementation conflicts. And those conflicts dilute the business value of projects regardless of delivery style.
What do you think? Do organizations need agile leads with project management knowledge, or project managers with agile knowledge? I welcome thoughts regarding delivery successes and failures relative to either or both roles.