By Wanda Curlee
What is the state of portfolio management technology?
That, of course, is a loaded question. Many factors—including the company and the industry—come into play. Nevertheless, most will agree that the tools of portfolio management have progressed.
While portfolio management can still technically be done with spreadsheets, it’s a labor-intensive approach that doesn’t make sense for every organization. So, if you’re ready to upgrade your spreadsheets, how do you know what tool is right for you?
If your organization lacks the expertise, you may need to hire a consultant to help. A consultant can assess the situation and determine the most effective approach to follow. It might be as simple as creating spreadsheets that need to be completed and analyzed differently, or as complex as implementing a new customized tool.
Whether you hire a consultant or not, picking the right portfolio management tool for your organization is a project. And there are many moving parts.
1. Create a wants and needs—or requirements—list. As many of you are already well aware, this is a wish list and there is probably no tool that will meet the full list. The requirements need to be ranked and maybe even weighted to provide a true assessment among tools. One tool may provide only one highly sought requirement but many less-desired requirements. On the other hand, another tool may provide multiple highly sought requirements but no less-desired requirements.
The weighted average can help those make a case for one tool over another. Those making the recommendation should be different from the final decision maker.
2. Customize the tool. The customization should not be done with rose-colored glasses. There should be a pilot program to see if the requirements are producing the results expected or if tweaking is required.
3. Begin implementation. Since this is a portfolio, I would recommend the big-bang approach. That means all projects and programs within the portfolio must be loaded. They need to be analyzed to ensure that the correct information is inputted. The project and program managers need to be trained to understand what is needed on the new tool. Remember, most portfolio tools also work for some (or extensive) project and program management.
Team members working in the portfolio need to be trained as well. Those producing reports and what-ifs must understand how the tool does these things correctly. Without understanding the tool, results may be less than adequate.
4. Compare the before and after state. Once the tool is implemented, the portfolio manager should run a couple tests to see if the previous state and the new tool produce similar, if not exact, results. If not, then there is an issue that needs to be resolved. It may be an easy fix, but more than likely there will need to be some analysis done.
Remember: A tool is not a silver bullet. However, if you have a large portfolio, a tool might be necessary. But don’t expect miracles. You will still have to do the value-add!
By Ramiro Rodrigues
The term path is used for a sequence of activities that are serially related to each other.
Imagine, for example, that your colleagues have decided to organize a barbecue. After dividing up the work, you are responsible for hiring the catering services. For this task, you are likely to have to look for recommendations, check availability and prices, analyze the options and then choose the best one. These four activities are a path. In other words, they are a sequence of activities that must be carried out sequentially until a final goal is achieved.
A project manager’s job is to estimate the duration of each planned activity. And if we return to our example, we could consider the possible durations:
This sequence of activities will last 40 hours, or five workdays. And since the whole barbecue has been divided among various colleagues, other sequences (or paths) of activities—such as choosing the venue, buying drinks, organizing football, etc.—will also have their respective deadlines.
The critical path will be the series of activities that has the longest duration among all those that the event involves.
Let's imagine that the longest path is precisely this hiring of the catering services. Since the process is estimated to take five days, the barbecue cannot be held at an earlier time. And if it were held in exactly five days, all the activities involved in the path have no margin for delay. This means that if, for example, my analysis of options is not completed on the date or within the duration planned, then the barbecue provider will not be selected in time, which will invariably lead to the postponement of the barbecue—and leave a bad taste in my co-workers' mouths.
Under the critical path method, there is no margin for delay or slack. If there is a delay in any activity on that (critical) path, there will be a delay in the project. At the same time, other "non-critical" paths can withstand limited delays, hence the justification of the term.
It is the duration of this path that is setting "critical" information for all projects—when all the work will have been completed.
Do you use the critical path method in your work? If so, what are your biggest challenges?
Find Purpose to Unlock Exceptional Performance
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Find Purpose to Unlock Exceptional Performance
By Peter Tarhanidis, MBA, PhD
There are three common maturity levels in developing project management leadership:
It takes many years to cultivate the skills necessary to execute complex initiatives of all sizes and types. And project leaders may find gratification in the personal development to sustain their performance, as well as their project achievements.
However, over time, it’s not unusual to lose sight of that passion, excitement and engagement for executing initiatives. Instead, the project leader may default to simply providing the project management administrative activities of project execution. This reversal of development is a leadership pitfall and creates a chasm between high performance and exceptional performance.
One way to bridge the chasm is to be purpose-driven. A defined purpose distinguishes oneself as a distinctive as a brand. A brand is underpinned by one’s education, abilities and accomplishments. By identifying what is central to your interests and commitments, project leaders can re-engage with purpose and unlock exceptional performance. This can be broad or can be very specific in a subject expertise.
I have use the following method to find my brand and define my purpose:
Having used this approach to define my purpose, I learned I enjoy the macro view of the firm. I regularly coach leaders and help them develop their teams. Therefore, I like to simultaneously drive toward exceptional performance to achieve a firm’s mission and to advance the needs of society.
Please share your purpose and any examples of exceptional performance you achieved toward that purpose.
by Christian Bisson, PMP
Project success is typically defined as being completed within budget, schedule, and scope, and that has been imprinted so much in project managers’ mind that it blinds them to other important aspects that defines a project’s success.
This aspect of project success seem to be more and more popular, and with reason, if clients are not happy, they will shutdown the projects, or proceed with another organization. If your project is on budget, delivered on time, and does exactly what it should be doing, but the client is so unhappy that they ceases to work with the organization, can you consider the project a success?
For example, if you focus so much on being on budget/schedule/scope, that you decline everything the client asks for without a second thought, chances are the client will not want to work with you long term. On the opposite side, giving everything the client wants and ending up late or 200% above budget is not an acceptable alternative. You or the team will often need to be creative to find ways to balance things out, and properly managing the client’s expectations is also key top this.
Another very important aspect of project success is the value it’s adding. A project that is doing what was planned, but ends up being useless, is not a success.
For example, if you create a great website, the client loves the design, the development phase had only few minor issues that were fixed rapidly so the team is happy, the project is delivered on time, on budget, and does what it’s supposed to do, however, users that go on the website are completely incapable of finding the information they need, and they end up always calling customer service instead, then is that really a success?
It’s important to identify right from the start what metrics will be used to calculate the project’s success, and tie those metrics to features of the website as you go to make sure a feature is not useless or solves an issue that has nothing to do with the project’s objectives..
The organization that has provided the services needed to make the project happen is also a key aspect to look at to define the project success, and unfortunately often due to lack of transparency from management, can be a challenge.
For example, there are projects that the organization’s management know they will lose money on, but for them it is considered a long-term investment to bring more business. If that’s not communicated, the project manager will see the project as a failure because it’s over budget.
It’s important to have visibility on the organization’s goals and expectations around the project in question.
What are your thoughts on the matter? Do you use other aspects to define project success?
By Lynda Bourne
Accurately predicting project outcomes has always been difficult. The standard tools in use today for doing so don’t offer much help. These tools work on the assumption that the planned duration or cost of future work is the best option to use for calculating completion outcomes.
The significant exceptions to this approach are earned value (EV) and earned schedule (ES). EV, ES and some other tools do adjust future performance based on past performance to predict outcomes—and they have demonstrated significantly more accuracy as a consequence. But no mainstream control tools deal with the management opportunity to actively change future performance with the use of incentive and motivation.
The performance of any activity is influenced by:
Incentive Schemes and Motivation Theory
Incentives in the form of piece rates have been used since the commercial revolution of the 11th and 12th centuries. Then in the 20th century, a range of more sophisticated payment schemes were introduced by management consultants looking to drive enhanced productivity (some of the better known are outlined in the chart above – click for more information).
The word “piecework” first appears in writing around the year 1549. Under this system a worker is paid for each piece of work he produces. Since the 16th century, a wide variety of incentive schemes have been developed to encourage productivity by directly linking payments to performance.
Individual schemes are either time-based, with incentives being paid for completing on time or early, or production-based, with workers paid based on the number of items produced.
Group incentive schemes reward team performance by paying a group bonus instead of individual bonuses. The bonus is distributed among all the employees of the organization or team.
From the 1920s onward, management researchers began to realize simple incentive schemes were not sufficient and a range of motivational theories were developed.
Management theorists are still debating whether it is possible to motivate a person or if motivation is an internal state that can be encouraged. However, there is a consistent view that when motivation is increased, productivity increases.
The Planning Conundrum
From the 12th century on, managers have known that well-directed incentive schemes can influence worker behaviour. Consequently, we know the productivity of a worker is a variable based on how he or she responds to various incentives and motivators.
Similarly, the emergence of scientific management and other management theories in the 20th century also highlighted the importance of organization and planning of work, and the workspace, in enhancing productivity. Improvements are always possible.
However, these concepts are largely ignored in project planning and control disciplines. Plans are set based on estimates made at the beginning of the project and rarely changed; at best, tools such as EV adjust future estimates based on performance to date.
What seems to be missing is a process that takes an objective look at productivity and identifies the changes needed to improve productivity to the levels needed to achieve project objectives. The concepts of process improvement and total quality management exist in general management and are mentioned in the A Guide to the Product Management Body of Knowledge (PMBOK® Guide), but no one seems to have moved these concepts into the domain of project planning and controls.
How do you think we could better approach the management of future work to enhance productivity and deliver better outcomes?