By Kevin Korterud
Program management made news in December (though perhaps not front-page headlines) when the United States Senate unanimously approved the Program Management Improvement Accountability Act. The legislation enacted a number of initiatives for improving federal program delivery, which has suffered from past budget, schedule and quality challenges.
While government legislation is not necessarily my weekend reading of choice, I recently spent time reviewing the new law. It quickly became apparent to me that, although targeted at improving the delivery of U.S. federal programs, it includes many considerations that are universally relevant to program delivery, even if you’re working in the private sector.
As part of the legislation, the deputy director of management at the Office of Management and Budget has been tasked with several new functions related to program and project management. Let’s take a look at two that I find particularly exciting and relevant to program managers around the world.
1. Chart A Strategic Course
Executives often tell me they don’t know where to start when it comes to improving program delivery. There are typically so many interrelated issues that it’s difficult to determine which actions would have the greatest impact on delivery results.
Other disciplines, such as technology architecture, business change management and customer satisfaction, typically work from some sort of strategic or transformational roadmap. The roadmaps identify common issues, solution strategies and transformational initiatives that drive success for that discipline.
The new federal legislation requires the deputy director of management to “establish a 5-year strategic plan for program and project management.” A program management maturity roadmap will provide a common vision around necessary improvements. And given the size and complexity of federal programs, it will also help teams avoid repeating prior delivery missteps, and enhance the performance of program management processes.
2. Lay a Solid Foundation
Early in my project and program management career, it was common for companies to have a homogenous, centralized employee workforce with strong business and technical domain knowledge that was built over many years. Today, the landscape of program delivery is much more fragmented and fragile.
Global delivery centers, various delivery approaches (waterfall vs. agile), business leaders that rotate every few years, contractors that play a larger role in delivery and emerging technologies are all components that complicate program delivery. It is a wonder that program delivery is ever successful!
The new federal legislation says the deputy director must also, “oversee implementation of program and project management for the standards, policies, and guidelines…” The creation of program management standards, policies and guidelines will serve as a foundation to harmonize the discordant realities of modern program delivery. By establishing unified rules, boundaries, practices and performance metrics that drive a cohesive approach, the inherent complexities of today’s programs can be successfully addressed.
What elements of the Program Management Improvement Accountability Act do you find most intriguing? I look forward to discussing.
By Wanda L. Curlee
Could neuroscience be the next big thing for the project management profession?
Today, there are many theories about leadership, management, and psychology, yet, no one is quite certain how the brain works in concert with these theories—or even if it does.
In the pursuit of more information, neuroscience—including functional magnetic resonance imaging (fMRI) and positron emission tomography (PET) —is being used to study what the brain activity of business-minded individual’s looks like during thought and during motion. (This technology can map new neural pathways as they are created—pathways that can be created until death.)
Already this scientific field is creating new fields of study across the business landscape. Neuroeconomics, for example, is “the application of neuroscientific methods to analyze and understand economically relevant behavior such as evaluating decisions, categorizing risks and rewards, and interactions among economic agents,” according to Dr. Zainal Ariffin Ahmad, a professor in the Business Research for Applied Innovations in Neurosciences (BRAIN) Lab at the Universiti Sains Malaysia’s Graduate School of Business.
With portfolio management still in its infancy, neuroleadership and neurogovernance could potentially assist portfolio managers. By extracting knowledge from the sciences of neuroleadership and neurogovernance, PMI could differentiate itself and its body of knowledge from the various other project management associations and standards.
By using cutting-edge knowledge about how the human brain works to help create standards, PMI could move project management closer to a profession such as medicine. When the standards of the profession are based on empirical scientific knowledge, rather than good practices done on most projects most of the time, project management could become even more science than art.
What do you think? Can and should neuroscience be part of the future of project management?
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!
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.