Project Management

Voices on Project Management

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Voices on Project Management offers insights, tips, advice and personal stories from project managers in different regions and industries. The goal is to get you thinking, and spark a discussion. So, if you read something that you agree with--or even disagree with--leave a comment.

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Some Answers to Large-Project Challenges

Categories: Leadership

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The first thing I heard at today's session of the 2nd Annual Global Infrastructure Leadership Forum in Washington, DC, USA was a challenge--well, two challenges, really, to "getting the big things done": Identifying good major infrastructure projects and getting them financed. What exactly are "good" infrastructure projects? They are ones with solid project management, of course, but also ones that offer a return on investment. Many speakers said governments will have to share the risks, not just private concessionaires.

    Enrique Garcia, the president of the Andean Development Corporation, a major development bank serving all of Latin America, said it was interesting to hear that in the midst of the economic meltdown this forum was discussing infrastructure projects in the medium and long term. He happily reported a very recent trip to Panama where his and other development banks signed a $2.3 billion funding deal for the Panama Canal expansion. To make infrastructure projects possible, Mr. Garcia said, financial institutions have to be partners, not competitors.

    More "good news" came from Masaki Omura, managing director of the Japanese Finance Corporation. He said his institution was proposing major contributions toward infrastructure to cope with difficulties in the private financing sector, including $2 billion in recapitalization of projects in developing countries. Mr. Omura noted that there is still, by World Bank estimates, $165 billion in annual infrastructure demand through 2010 in eastern Asia alone.

    Judge Quentin Kopp of the California High Speed Rail Authority reminded the audience that two great infrastructure projects were built in his state during the Great Depression--the Golden Gate and San Francisco-Oakland Bay Bridges. A number of dams were built then as well.

    Many interesting projects were presented on today's panels. A number of them involved sustainable energy, such as Multiner Energy's efforts to build wind-driven power plants and waste-to-energy plants in Brazil. Another wind project on Cape Verde (an island nation off Africa with the best trade winds in the world) was discussed. And Israel is looking to take advantage of its most abundant renewable resource by building multiple solar energy plants in the southern part of the country.

    CG/LA Infrastructure, the firm running this event, bestowed awards on the "global champions" who are making large projects that improve our world even in extraordinary economic times. And by the end of the day, it seems that one answer emerged to the challenges posed at the beginning of the day--cooperation and sustainability are what will keep these projects going.
 

Posted by Dan Goldfischer on: December 11, 2008 09:13 PM | Permalink | Comments (1)

What Can Be Learned From India

Categories: Risk Management

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Everyone has been watching and reading about the recent terror attacks on India's business capital, Mumbai. The events have passed and patchwork has just begun.
    Those who were directly responsible for the security failure have been shown the door either willingly or under pressure from a combination of higher command, media and public anger.
    I would like to discuss it as a project failure and conduct (with reader participation) the post mortem analysis on what went wrong and how it could have been avoided. The discussion should be based upon information available from news analysis.
Let me start with lessons learned that translate to projects:
    Issue #1: The Indian Intelligence Bureau (IB) is claiming it had informed the government about a possible attack from seaside but no action was taken. There was a risk identified but no mitigation plan was prepared for it. It is important to monitor risk areas and take preventive action before it gets too late.
    In projects, it is the responsibility of project managers to spread awareness about the risks in their projects and their mitigation plans. Don't take even a minor issue casually. If you don't have time to look into the issue, then assign it to someone else and track it to closure.
    Issue #2: India had a couple of terror incidents in the past but no measure was taken to prevent them in the future. It is a universal truth that prevention is always better than correction so it's good to have check points and preventive measures in place before you lose money and resource time.
    Document lessons learned from previous mistakes and ensure everyone is aware of them. It's better to review the learning database periodically and update it if required.
    Let's keep the conversation going. What other lessons learned can you find in these events?
 
Posted by sanjay saini on: December 10, 2008 05:27 PM | Permalink | Comments (8)

The Scarlet FES

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If I had a dime for every copy of every project management article that prodded the reader to further engage stakeholders, I wouldn't have to spend time writing this blog. I could probably buy New Zealand.
    Indeed, failure to engage stakeholders has become the cardinal sin of the project management industry if you read all the trade journals. I do believe that they are only a short distance away from requiring all managers of failed projects to wear a scarlet FES, for Failed to Engage Stakeholders, reminiscent of Nathaniel Hawthorne's novel of a very similar name. Being the hopeless iconoclast that I am, I can't help to make the opposite assertion: Project managers should eschew these all-wise, all-knowing stakeholders for the following reasons.
    First off, who are we talking about here? Which "stakeholder"? If it's the customer, then, of course, "engage" them (which, I assume means, you talk together). But keep in mind, customer involvement often involves their asking for additional stuff on your project or higher quality standards. The desire to accommodate these stakeholders is the most common cause of that most fatal of project-killers: scope creep. And, once a good dose of scope creep has wrecked your project, it won't do the culpable project manager any good to respond, "I was just engaging the stakeholders!"
    Then there are the stakeholders who are neither on your project team nor in your customer's organization: These are "nuisances." If the scope of your project involves doing something that provably impacts others in an adverse manner, that's your customer's problem, isn't it? They probably should have spent a little more time getting the appropriate permits before they ponied up the money for your baseline. And, if these stakeholders don't belong to your or your customer's organizations and aren't provably adversely affected, then they should probably shut up and go away. Does that sound harsh? Okay, they don't have to be ignored or exiled, but they absolutely should not be consulted on what should happen on your project. Indeed, to do so is akin to project management malpractice.
    So there. I was getting a little tired of nobody posting comments on my blogs, and I figure this piece will pretty much cure that.

Posted by Michael Hatfield on: December 04, 2008 11:54 AM | Permalink | Comments (1)

Make the Effort

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I often find that communication between project managers and senior management is very limited or nonexistent. There are several reasons. One reason is the busy schedule of executives. And other reasons might be the lack of interest shown by the project managers, as well as the need to perhaps hide something that project managers feel should not go up to senior management.
    But it is an important part of keeping up with project progress.
    Reviewing progress and profitability should not be something that waits until year's end. Instead there should be some monthly or quarterly checkpoints in between. This regular communication should also include client feedback--both good and bad.
    In most organizations, senior managers or account managers require project managers to conduct daily/weekly status meetings and publish the minutes of meetings. These meetings are usually kept internal to the team and there is rarely communication with the senior manager or account manager about the discussion.
    Senior Management Review (SMR) reports--which lists things such as project risks milestones achieved--prepared by project manager for senior management and other support/effected groups also do not promote accountability as they can be manipulated for convenience.
    How can project leaders and senior management solve this problem? By having someone independent of the project of someone on the client side (e.g. business analyst) prepare a monthly status report. The report should include:
1.    Resource Utilization
2.    Billing Done for the Month (to be provided by project manager and this should match with the value submitted to accounts)
3.    Earned Value generated by the Team (to be provided by project manager and this should match with the value submitted to accounts)
4.    Work Projection for Next Month
5.    Testing Quality (mainly for IT projects)
6.    Highlights/Lessons Learned
7.    Operation Decision that need SM/Account Manager's review
8.    Items to be taken in company's Interest
    By doing this, senior management will have an insight to the project and can act accordingly before it gets too late. Project managers should not behave like a stranger in a crisis situation.

Posted by sanjay saini on: November 26, 2008 03:40 PM | Permalink | Comments (12)

Skills Shortage in South Africa

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Talent management is a big issue for organizations around the world--especially when it comes to the project management profession. While companies in some parts of the world are dealing with budget cuts that lead to people cuts, others are dealing with a shortage of the right people.
    South Africa is one country experiencing major problems from the latter. An article on AllAfrica.com declares:
    "Project Management is now regarded as the fastest-growing form of management worldwide, with its multidisciplinary skills in particular demand in [South Africa], which is in the throes of the biggest infrastructure development programme in its history. ...   
    In the current South African climate, critical skills shortages are being experienced both in the public and private sectors. A recent study showed that the crisis is compromising competitiveness and spurring poorer service, inhibiting [South Africa] from responding positively to changing market conditions both locally and abroad.
"
    Many of the infrastructure developments are a direct result of the country being named as host of the 2010 FIFA World Cup. Earlier last week, the South African government allotted another $140 billion for the event preparations--pushing the budget even further past original estimates made in 2004.
    But with skilled project managers being lured to other locales with the promise of better pay, are there any positive signs for project management in the country? According to that AllAfrica.com article, colleges are seeing an upswing in the number of students going through the project management program.     
Posted by Kelley Hunsberger on: November 24, 2008 11:17 AM | Permalink | Comments (5)
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