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?
By Christian Bisson, PMP
A deadline is the project objective defined in terms of time. But on some projects (a lot of them, unfortunately) the delivery date is not necessarily realistic.
When projects get delayed, the obvious solution is to push back the deadline. But it’s not so simple for every project.
Here are a few factors to weigh before deciding how to move forward when facing project setbacks:
The Client Relationship
Assuming the agency runs client-facing projects, not internal products, this is typically the most important reason to deliver a project on time. Happy clients bring in more projects—and other clients by word of mouth.
Determining whether or not your client will react negatively to a project delay may depend on the cause of the holdup. Is the delay related to client actions, such as adding new requirements or delivering assets late? Or is it due to internal errors, such as poor estimating or planning?
Keeping clients happy also presents a sort of balancing act for many agencies. You have to keep clients happy because they bring in the money that runs the agency. But, on the other hand, you don’t want your team members so bogged down with additional requests and revisions that they become tired or frustrated to the point they will leave.
Projects often have what we call hard deadlines, meaning the date cannot be changed under any circumstances. For example, in e-commerce, there are projects tied to holiday sales and, obviously, those dates cannot move. Missing those opportunities can have a drastic impact on sales. In these cases, it might actually be more cost-efficient to invest in more resources to speed up the project and have it ready on time.
The Big Picture
Delaying a project can have a direct impact on other projects, as well. Team members may be scheduled to move to another project once the first is completed, for example, so delaying that transition date can have a chain reaction on an agency’s planning. Talk to someone with a wide-angle view of the organization’s portfolio to better understand these potential implications.
There’s no magic solution for dealing with a delayed project. All you can do is balance the pros and cons and make a judgment call.
What factors do you typically weigh when deciding whether or not to push back the deadline on a delayed project? What advice do you have for other project managers facing a delay?
by Jen L. Skrabak, PMP, PfMP
Successfully implementing strategic initiatives is a high priority for most organizations; however, few organizations are doing it well, if at all. In fact, only 10 percent are aligning portfolio management with strategy implementation.
Based on my experience, there are seven critical success factors to align portfolio management with strategy:
1. Agility: This is a broad umbrella for organizational culture and processes that are nimble and versatile. Being nimble suggests speed in reacting and being versatile suggests flexibility and adaptability. It’s crucial to build a nimble and flexible organization and portfolio management processes to take advantage of internal or external changes. Portfolio management must be seen as the enabler of strategic change and anticipate iterative, incremental and frequent adjustments to the portfolio.
2. The 3 C’s: Culture, Change Management and Communications: The “triple threat” of portfolio management is having all three components work in harmony to enable the strategy. Culture can be thought of as the personality and habits that an organization embodies, and although it may be difficult to describe, it can be seen and felt when walking around an organization. It’s been commonly cited that up to 97 percent of the employees in an organization don’t understand the strategy, and over 90 percent of mergers and acquisitions fail due to culture clashes.
Rather than letting culture just happen by accident, organizations should consciously build and shape the culture of the organization. And, of course, the culture must be socialized through communications and change management to not only convey the right messages and keep employees engaged, but also recognize and reward the right behaviors.
3. Governance: Good portfolio management processes ensure these core governance functions are implemented:
· Oversight: Leadership, guidance and direction. The key is being involved (through visible engagement and support in problem solving and removing barriers), not just informed (receiving status reports).
· Control: Monitoring and reporting of key performance indicators, including leading (not lagging) indicators. Too often, portfolio managers report on scope, time and budget status, however, those are all retroactive events. Although course corrections can be made, it is too late to be proactive and, as we all know, it’s easier to stop a project’s problems earlier rather than later. Leading indicators, including risk exposure, incremental value delivered and requirements volatility, are predictive.
· Integration: Alignment to strategy, as well as organizational ownership of the changes that the portfolio is implementing, should be driven by portfolio governance.
· Decision Making: While empowering teams to make day-to-day decisions, broad decisions also need executive and management support to ensure buy-in across the organization.
4. Value: The value to the organization depends on performance of the portfolio holistically, not individual components. It starts with ensuring the right programs and projects are selected. Sometimes, the focus is on an individual project’s ROI instead of the fact that although a project may have a positive return, it should be compared against competing projects’ risk, return, and alignment to strategy.
5. Risk Management: There should be a balance of the negative and positive. Mitigate threats and take advantage of opportunities. Value is ultimately the result of performance x risk/opportunity.
6. PPPM Maturity: Portfolio, program and project management (PPPM) maturity ensures the process and talent exist to deliver the programs and projects reliably. Maturity is not measured by a single dimension such as the success rate of the “triple constraint.” Instead that measure includes speed to market, customer satisfaction and strategy enablement.
7. Organizational Structure: When building an organization to enable a strategic initiative (a type of portfolio), an organization should be defined by verticals of end-to-end processes and horizontal enablers. Horizontal enablers are common support elements that span across the verticals organized by the work instead of the functional area—such as change management, reporting, training.
How do you align portfolio management with strategy? I look forward to your thoughts!