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 Taralyn Frasqueri-Molina
A lot of things change when moving from traditional project management frameworks to agile ones. But what doesn't change (or shouldn't!) is how much and how often teams communicate.
Agile frameworks don't actually require daily stand-ups or regular retrospectives. But you should consider adding some new trade tools and a few other staples to your project management toolkit if you’ll be working in an agile context. You may find that they quickly become essential to keeping communication flowing through your team—and your project on track.
Here's a short list of tools I've used on all of my projects.
Sync-ups/Planning Meetings: This helps me start a project off right by making sure the product owner and execution team are on the same page. We set expectations, talk requirements and the direction for deliverables in areas such as UX, design, marketing.
Daily Stand-Ups: Quick check-ins with the entire team help gauge project health and bring roadblocks to the forefront sooner rather than later. This is also where we address scope creep, taking note of good ideas that need more exploration before being included in the backlog.
Retrospectives: After each sprint and after each project, a retro helps the team ensure processes are working— and decide if we want to carry over those processes to the next iteration.
Wiki: These often get a bad rap but can act as an excellent centralized location for real-time documentation editing and sharing. In my experience, it can serve as a digital asset management (DAM) system for sharing web copy and design assets. While not a perfect DAM solution, it will do in a pinch.
Instant Messaging: Whether collocated or remote, teams sometimes need quick answers to questions—and a meeting can be overkill as a way to get answers. The challenge with instant messaging, though, is to make sure teams are on the same page about how and when to use an IM tool.
Email: This tool still reigns supreme when it comes to quickly keeping a lot of people in the loop about what's going on. Even if it's an email directing people to a wiki, it's still one of the best tools for mass communication. But maybe not for decision-making!
What tools am I missing? And do you find any of the tools mentioned particularly good or bad for certain kinds of communications? Share your thoughts below.
Project Leaders as Ethical Role Models
Human Aspects of PM,
New to Project Management,
Nontraditional Project Management,
PM Think About It,
Reflections on the PM Life,
Categories: Best Practices, Career Help, Communication, Communication, Complexity, Ethics, Facilitation, Generational PM, Human Aspects of PM, Leadership, Leadership, New to Project Management, Nontraditional Project Management, PM Think About It, PMI, PMOs, Portfolio Management, Program Management, Project Delivery, Project Failure, Project Planning, Project Requirements, Reflections on the PM Life, Roundtable, Social Responsibility, Stakeholder, Strategy, Talent Management, Teams, Tools
By Peter Tarhanidis
This month’s theme at projectmanagement.com is ethics. Project leaders are in a great position to be role models of ethical behavior. They can apply a system of values to drive the whole team’s ethical behavior.
First: What is ethics, exactly? It’s a branch of knowledge exploring the tension between the values one holds and how one acts in terms of right or wrong. This tension creates a complex system of moral principles that a particular group follows, which defines its culture. The complexity stems from how much value each person places on his or her principles, which can lead to conflict with other individuals.
Professional ethics can come from three sources:
In project management, project leaders have a great opportunity to be seen as setting ethical leadership in an organization. Those project leaders who can align an organization’s values and integrate PMI’s ethics into each project will increase the team’s ethical behavior.
PMI defines ethics as the moral principles that govern a person’s or group’s behavior. The values include honesty, responsibility, respect and fairness.
For example, a project leader who uses the PMI® Code of Ethics to increase a team’s ethical behavior might:
Please share any other ideas for elevating the ethical standards of project leaders and teams, and/or your own experiences!
By Marian Haus, PMP
There is obviously a high interest in the project management community and literature about what drives project success. For example, searching online for “why projects succeed” will return you five times more web pages than “why projects fail.” Similarly, there are four times more pages about “project success factors” than “project failure factors.”
This is no coincidence! The overwhelming interest in project success insights is driven by the struggle of many organizations and project managers to understand what drives success.
But before answering the question of why projects succeed, let’s first try to define project success.
The most common definition of success is delivering the project on time, on budget and in scope. PMI’s PMBOK Guide® says a project is successful if the following parameters are met: product and project quality, timeliness, budget compliance and customer satisfaction.
Others define project success by measuring the project ROI (or business case) over a certain period of time. If the ROI is positive, the project is declared successful, regardless of its deviations along the way.
I have my own definition: A project is successful if it meets its given goals, within acceptable variance boundaries (e.g., in terms of scope, time or budget). This is a relative definition and relies on the fact that the world is not perfect. Hence even a successful project will rarely be a 100 percent success.
A civil construction project might be declared successful if it meets its scope and quality. Acceptable time or budget deviations might not be seen as failure. Similarly, an IT project might be declared successful if it meets its scope on time, with acceptable deviations from quality or budget.
A project’s success is relative: it depends on how the success criteria and metrics are defined from the very beginnings of the project, along with who will measure them.
OK, there are clearly many definitions of project success. Similarly, there are also many views and studies on why projects succeed.
Let’s take a look at a few studies and try to find a common denominator.
According to PMI’s 2015 Pulse of the Profession®: Capturing the Value of Project Management, over the last three years the number of projects meeting their goals—hence being successful—has remained steady at about two-thirds of projects. This success is the result of organizations supporting project excellence by focusing on fundamental aspects of culture, talent and process.
But size matters, too. A Gartner study from 2012 shows that small IT projects (below US$350,000) are more likely to succeed than big projects (budgets over US$1 million).
Other studies reveal that project success is tightly linked to clear project objectives and requirements that are fully understood and supported by actively engaged stakeholders.
My view on the common denominator that leads to project success is simple: the main drivers of project success are rarely of a technical nature. Instead, the drivers are the basics of the project management culture and discipline within the project organization.
In other words, fix the project management basics, and your chances of reaching project success will increase.
By Jen L. Skrabak, PMP, PfMP
Just like portfolio managers, business analysts are gaining wide acceptance as a profession. Business analysts can now earn their own PMI certification (PMI-BA) and read their own practice guide (Business Analysis for Practitioners). (Here’s a piece of cultural trivia: Did you know the latest bachelor on the reality TV show “The Bachelor” is a business analyst?)
Portfolio managers should get to know business analysts in their organization, because they can help ensure alignment and management of the portfolio to achieve the organization’s strategic goals and objectives.
What exactly do business analysts do? They, well, conduct business analysis. That’s defined as:
•identifying business needs
•eliciting, documenting and managing requirements
•recommending relevant solutions
With this in mind, there are four major ways that portfolio managers can leverage a business analyst:
1) Develop Pipeline Opportunities
Business analysts can play a critical role in analyzing business problems and opportunities that will eventually be used to initiate projects and programs in the portfolio. Product or technology roadmaps can outline potential projects or programs that will be initiated at future points. They’re also valuable during a project because they can support proposed changes to a project scope (which will affect the overall portfolio) and ensure that the business justification for the project or program remains valid.
Many business analysts are embedded within business areas and are critical to early identification and understanding of future opportunities or changes to the portfolio.
2) Define Needed Business Capabilities
We often think of business analysts as documenting business requirements. Those requirements are built upon an understanding of which capabilities are needed for a particular business domain.
Typically, capabilities are based on the goals and needs of a particular business area. Those needs may be depicted through business domain capability maps, end-to-end process flows or functional diagrams. An assessment of whether the capabilities currently exist or not becomes the basis for identifying priorities and gaps (in processes or talent). It can also be used to benchmark against other companies.
3) Develop Business Cases
With their high-level understanding of the goals, objectives and needs of the enterprise, business analysts can assist in defining the justification for the proposed solution. The basis of a business case is the needs assessment. This process seeks to understand the underlying business problem, assess the current state and perform a gap analysis against the future state.
In addition, the proposed solution (see #4 below) is needed for high-level cost estimates that become the basis for the numerator of the ROI. The potential return (denominator of the ROI) is also based on an analysis of the impact of the solution on the current process.
4) Perform Solutions Analysis
One type of solution analysis is to assess a variety of options to go from the current state to future state. (For example, process changes vs. system implementations.) Business analysts can work with business stakeholders to define immediate solutions (quick wins that may be process changes) or longer-term solutions (new products or systems).
Business analysis outputs provide the context to requirements analysis and solution identification for a given initiative or for long-term planning. Business analysis is often the starting point for initiating one or more projects or programs within a portfolio. The analysis is an ongoing activity within a portfolio as the business environment changes and more information becomes available, creating new competition and strategies.
How do you work with business analysts? Share your experiences and best practices in a comment below. Also, if you’re looking to learn more about how business analysts can support practitioners, check out this pmi.org webpage.