Unlock the Value of Artificial Intelligence
Calculating Project Value,
Nontraditional Project Management,
Categories: Agile, Benefits Realization, Best Practices, Calculating Project Value, Change Management, Complexity, Innovation, Leadership, Leadership, Nontraditional Project Management, Portfolio Management, Program Management, Project Delivery, Project Planning, Project Requirements, Roundtable, Strategy
By Peter Tarhanidis
Artificial intelligence is no longer a tool we’ll use on projects in the future. Right now, many organizations are formalizing the use of advanced data analytics from innovative technologies, algorithms and AI visualization techniques into strategic projects.
The maturity of advanced data analytics is creating an opportunity for organizations to unlock value. The McKinsey Global Institute estimates AI’s global economic impact could climb to US$13 trillion by 2030.
As an example, in the healthcare industry, Allied Market Research reports rising demand for data analytics solutions due to the growth in data from electronic health records, among other factors. The global healthcare analytics market was valued at US$16.9 billion in 2017, and the report forecasts it to reach US$67.8 billion by 2025.
The Evolution of AI Maturity
Everyday examples of these solutions range from simple automated dashboards, remote check deposit, Siri-like assistants, ride-sharing apps, Facebook, Instagram, autopilot and autonomous cars.
Tips on Successful Transformation
As a project leader, take these steps to avoid key pitfalls:
Please comment below on what approaches you have taken to enable advanced data analytics in your role or in your organization.
by Christian Bisson, PMP, PSPO, PSM
In agile, users are everything. So it only makes sense that users—anyone who will use or interact with your product—should be a team’s main focus. In order for the product to be viable, whatever is produced must bring them value.
But it’s perhaps too easy to forget users when you build your backlog. We often jump too quickly to features, assuming “the users will use this.” But what if we took a step back? Consider taking the following steps:
First, for whom is this product intended? Identifying a target audience will help you determine who you’re building for.
For example, if you expect users who aren’t tech-savvy, then you need to be mindful of how complex the interface or even the wording are throughout.
It’s important to describe these users. One common practice is to create “personas,” which are fictional characters that represent the users. These will help you better understand your audience.
Now that we know our audience, what are they trying to achieve? Instead of jumping from personas to features, stop and think about their goals.
Are they trying to purchase something online? Are they trying to fetch information? Are they trying to plan a trip? The answers to these questions will shape your direction.
We know who is trying to achieve what. The next key step is to define “how” the users are going to achieve their goals.
Let’s assume the user wants to purchase a toy. That user will most likely need to:
Let’s keep it simple. We can extrapolate that this user might be interested in items related to this item, or many other scenarios, but for now, the above is our user’s steps.
Once this is clearly defined, it is much simpler for:
I’ve seen too many teams skip these important steps. Often, people are so quick to execute what is instructed by managers, or by assumptions from the team, that they forget to think about who they are building the product for. The user, of course, will ultimately decide the product’s success. That’s why it’s so important that our product brings value to users.
What do you do to focus on users? How do you verify if you are bringing value to them? Share!
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 Jen Skrabak, PfMP, PMP
Project management offices (PMOs) have gained wide acceptance thanks to their ability to ensure the success of projects and programs. More than 80 percent of organizations have PMOs.
But, there is still some confusion with PMOs, as the “P” in PMO can refer to project, program or portfolio. At the same time, PMOs have been thought of as one of three categories:
The Next-Gen PMO, however, is disrupting these traditional categories. In the Next-Gen PMO, the focus is on ensuring the successful delivery of organization-wide strategic initiatives. In addition to traditional PMO functions, such as providing project management tools, templates and training, the Next-Gen PMO is responsible for organizational results. They also report directly to a C-suite executive within the organization.
I see the four critical functions of the Next-Gen PMO as:
Is your organization embracing the Next-Gen PMO?
Award-Winning Metrics For 2018
by Kevin Korterud
What are the best metrics for determining if a project is about to experience schedule, budget or quality slippages? These metrics are best categorized as delivery volatility metrics.
Executives already know when a project is in trouble — they are more concerned with those projects whose trajectory is on a currently unseen course to trouble.
PMI offers guidance on project metrics to help detect delivery volatility, such as the Cost Performance Indicator and Earned Value Management. While project reporting will likely have one or more of these metrics, I got to thinking what other metrics would indicate the potential of delivery volatility.
An additional complication is the various approaches used today, including agile, waterfall, company custom, software product, service supplier and regulatory. These can all generate their own set of metrics.
While pondering this question watching TV one evening, I noticed a multitude of movie, theater, television and music award shows that tend to occur this time of year. A characteristic of these shows is the numerous categories that are awarded to nominees — Best Supporting Actress, Best New Pop Group, Best Special Effects and so on.
As I was organizing my thoughts around metrics, I figured: Why not use award show categories to help shape an answer on which metrics would best suit early detection of delivery volatility?
As the Master Of Ceremonies for the 2018 Project Metrics Award show, here are a few of the winners:
As our projects become more complex and more numerous, the ability to deliver on a set schedule becomes more important. The SPI has the great benefit of comparing actual and planned progress in an objective manner: earned value/planned value.
The true power of SPI comes into play when selecting a method for earned value accumulation. Assuming work plans are at a level of granularity where task progress can be measured within a two to four week window, a conservative earned value scheme such as 0%/100%, 25%/75% based on task start and completion is a very objective means of calculating progress.
With these conservative schemes, you capture value when the tasks have started (when resources are truly free to work on tasks) and whether the task has been completed (usually with acceptance of completion by a project manager or stakeholder).
Given today’s tight delivery timeframes, as well as the need to coordinate delivery with other projects, SPI is a good indicator as to the schedule fitness of a project.
2. Best Supporting Emerging Metric: Functional Progress Metrics!
As I shared above, there are now a multitude of methods available to run projects. From these methods, all sorts of new metrics are available to project managers to identify delivery volatility. These metrics can include completed user stories, forecast backlog, project burndown, build objects, test case performance and many others.
In addition to these new metrics, a whole host of new waterfall, agile and other tools have come into play that capture functional progress outside of the traditional work plan tasks and milestones. In fact, work plan detail requirements can be relaxed when these tools are used to shed light on the functional progress of a project.
The power of these functional metrics is that they allow the next level of inspection underlying project phases, tasks and milestones to see delivery trajectory. For example, being able to see the detailed completion progress of requirements, build objects and test cases in automated tools allows project managers to catch underlying barriers to progress before it is revealed in a work plan.
As project managers, the universal outcome for our efforts is that we need to create value for our project executives and stakeholders. While activities can lead to creating value, our mission revolves around the production of deliverables in a timely manner to fulfill a project value proposition.
The inherent power in providing and approving deliverables in a timely manner is that they are completely objective means of progress. No matter what method, effort, dependencies, resources, tools or other constructs of project management are employed, deliverables are an indicator of whether you are making progress. The track of deliverables being created, reviewed and approved on schedule means you are making definitive progress toward value.
Creating a track of deliverables and their targeted completion dates with progress that can be monitored through other metrics allows a universally understood path to project completion. For example, if a deliverable has not yet been approved by stakeholders, you are making visible a potential schedule delay that would impair future work activities.
To host your own 2018 project metrics award show, one does not need a spotlight or trophies. You just need to think about what metrics can serve to detect early signs of delivery volatility beyond the self-declared green/yellow/red stoplights that are typically found in project status reports.
If you were handing out your very own 2018 project metrics awards, what categories would you select? What would win?