Guessing is not a strategy: How to build decision velocity with AI and real-time data
June 10, 2026 | Live Webinar
Knowledge Management: More Than Simply Learning Lessons
| By Lynda Bourne
Organizations tend to struggle with knowledge management. Far too many treat it as an exercise in capturing and disseminating lessons learned. Because of this, organizations often fail to develop the social framework needed to allow the full richness of knowledge to be available to their teams. In fact, knowledge management involves more than lessons learned. At best, lessons learned are explicit knowledge. Explicit knowledge can be readily articulated, codified, stored, accessed and transmitted to others. But the process of transforming the lessons recorded by a project team into explicit knowledge requires:
This process is time-consuming and difficult, particularly given the lack of a defined taxonomy of project management terms. For example, terms such as PERT are used and misused in a variety of ways (see this PDF.):
A Four-Stage Learning Journey Assuming all of the above is done well by an organization, all it will have is a knowledge repository that may be used. None of the knowledge has been transferred to people who need to know, and if those people don’t know they need to know, they are unlikely to look or learn! This is because unskilled human beings tend to overestimate their knowledge. This is known as the Dunning–Kruger effect, a cognitive bias where unskilled individuals mistakenly rate their ability much higher than is accurate. Conversely, experts tend to underplay their expertise. Therefore, the learning journey can be described as:
But the relatively simple chart above is complicated by four additional factors:
Therefore, effective knowledge management requires three factors:
Without the last two elements, organizations are left with burgeoning lessons-learned databases and hundreds of end-of-project reports, but their people have no idea what to do differently to improve performance. The problem is the tacit knowledge needed to recognize the need and adapt the knowledge to the current situation resides in people’s minds and is contextual. Consequently, it’s difficult to transfer to another person by means of writing it down or verbalizing it. Improving organizational performance needs personal interaction. First, subject matter experts need help to translate their tacit know-how gathered over years into usable explicit knowledge. This is very often a difficult process—the experts literally don’t know all of the factors they use in formulating a course of action; much of their intuitive processing is subconscious. Second, less expert people need a friendly adviser overseeing their work to provide effective early warning of impending issues. The less experienced need to be made aware that they need to learn something new. “Trigger events” don’t have to be painful if the right advice is heeded at the right time. Third, learning is rarely accomplished simply by reading about a lesson learned. Access to effective coaching and mentoring is important to ensure the full complexity and subtleties of the lesson are passed on and the learning is adapted to the circumstances. Every project is unique and consequently every lesson learned will need to be nuanced or adapted to work optimally in the new situation. In addition, some aspects of knowing can only be learned by doing. This requires trust and encouraging people to form relationships and networks so they will share knowledge and help each other learn. How effective is knowledge sharing in your organization? |
Want to Start a PMO? Make Sure You Answer These Questions First
|
In my previous post, I discussed “Frequently Avoided Questions About PMOs.” Now it’s time to successfully define a PMO using the Business Model Generation. To do this, your organization must ask a number of questions before the PMO is created so that it can achieve its planned benefits. To help you get started, below are questions in nine categories, plus example answers for most.
Figure 1 – Business Model Canvas (Osterwalder, 2010) 1. Value proposition What differentiates the PMO from existing organizational structures? How will the PMO create value for its customers? What products and services should the PMO offer, and how should they be offered? The answer to these questions can be in the form of a mission statement, such as: “The Strategic PMO will be responsible for selecting, prioritizing and authorizing strategic projects, coordinating funds from functional areas and suppliers, negotiating with internal and external customer projects, and centralizing information to senior management.” 2. Customers Who will the PMO’s customers be, and what are their needs and preferences? Example answers: Functional managers will need information and reports about ongoing projects, plus a centralized system of planning and resource availability. Project managers will need support in processes, methodology and templates. They’ll also need mentoring and coaching, historical information, lessons learned and documentation. Project team members will need training, information, infrastructure and help with resource allocation. Suppliers and contractors will need contracts and procurement management. They’ll also need project information and change request control. Senior management will need consolidated information, metrics, dashboards and decision-making support. 3. Channels How can PMO customers access the PMO’s functions? Where and how are the PMO's products and services going to be available? Example answer: The PMO will offer its functions through in-person and online support, meetings and training sessions, coaching and mentoring, administrative support, enterprise project management, a contract management system, and phone or e-mail support. 4. Relationship What type of relationship do customers expect to have with the PMO? How will the PMO interact with customers? Example answer: The PMO will interact via feedback (meetings, suggestion box or email), an ombudsman, workshops and seminars, benchmarking, and monitoring the use of tools and infrastructure. 5. Revenue streams What are the PMO’s potential sources of income? Will business units pay for PMO services? Does your PMO have an impact report or benefits realization plan to justify the resources needed to keep it running? What are the key success indicators of the PMO? 6. Partnerships Which people or groups can help the PMO fulfill its mission? Should any functional area, such as human resources, partner with the PMO? Are there external organizations that may help your PMO? Example answer: Consulting companies will provide training, the HR department will help define career paths, the IT department will help with infrastructure like computers and the network, and associations such as PMI or PMI chapters will promote joint workshops and seminars. 7. Key activities What processes, procedures and activities must be performed within the PMO so that it materializes its value proposition and delivers it to customers? Example answer: The PMO will select and prioritize projects, provide training, develop policies, methodology and templates, and provide IT software and infrastructure. 8. Key resources What resources (people, equipment, infrastructure, money) are necessary for the functioning of the PMO and the realization of its activities? 9. Cost structure What is the operating cost of the PMO, considering its activities, necessary resources and partnerships? Example answer: The PMO will require funds for wages, infrastructure, software, books and publications, and consulting and training services. Do you have any ideas on how to better define a PMO? Is there any way we could improve PMO implementation (or reshape existing PMOs) by using the Business Model Canvas? Please comment below! And by the way: Visit PMI’s Knowledge Shelf to learn more about PMOs. |
4 Tips for Delivering the Desired Business Results
Categories:
ROI,
Risk Management,
Best Practices,
Human Aspects of PM,
Project Delivery,
Mentoring,
Lessons Learned
Categories: ROI, Risk Management, Best Practices, Human Aspects of PM, Project Delivery, Mentoring, Lessons Learned
| When I started as a project manager, the focus of my attention was on the mechanics of project management. This involved becoming very involved in work plans, risk/issue trackers, status reports, progress metrics and all those artifacts that form the means by which one manages a project. What I realized after a number of years (as well as after a few hard learning experiences) was that while the mechanics of project management are important, they are merely enablers for the core activities that truly create a successful project. I needed to think more about the successful direct and indirect business outcomes that could be created from a project. The attainment of successful business outcomes was what my stakeholders were really looking for, not necessarily the most impressive work plan or status report. This shift in focus become one of the turning points in my project management career. So how does a project manager, in particular one early in his or her career, make the transition from executing the linear mechanics of project management to producing desired business outcomes? Well, they need to acquire the skills and behaviors that enable business success from projects— hopefully without harmful learning experiences along the way. Here are four tips for making this transition. 1. Don’t Be Afraid of Business Processes When I was a relatively new project manager, I spent a lot of time at my desk. This desk time was occupied with working on project management artifacts that if created perfectly would, in my mind, automatically lead to a successful project. A senior project manager noticed this and encouraged me to spend a fixed amount of time creating project management artifacts, with the remainder of my workweek interacting with stakeholders in the business areas. In fact, this senior project manager arranged for me to work for a few days with some of the employees that were actually executing the business processes that were to be impacted by my project. Those few days of immersion were a great learning experience that it completely changed my outlook on how to run the project. Today, I still employ the same technique for both myself as well as fellow project managers and team members. Whether it’s working in a retail outlet helping to stock shelves, processing billing exceptions in a call center or spending time in an airliner simulator, the immersion experience is essential to understanding what makes for successful business outcomes from projects. 2. Define Business Success Criteria Very early in my career, I took what my stakeholders initially shared with me as business success criteria without any subsequent qualification. No surprise that some of the success criteria entailed—“just make it easy to use,” “finish testing by the end of the year” or “do whatever the senior vice president says”—didn’t really indicate a clear path to business success. As I grew as a project manager, I began to spend more time in the beginning of projects articulating in detail with stakeholders clear criteria for business success. This involved not only understanding current processes by immersion, but also challenging stakeholders on the methods we would use to objectively measure business success. If something cannot be objectively measured, it would be difficult to determine the success of the project. I also allocated time in the project to build and execute the processes to measure success. By doing so, I had the capacity to create evidence of how the project benefited the business. 3. Understand Your Industry In my first few years as a project manager at an insurance company, I took every course on project management I could find (this pre-dated the creation of PMP certification). While I became adept at the mechanics of project management, I had no real foundation of business knowledge for the projects I was leading. On a recommendation of a senior project manager, I took a course on the principles of the insurance business. This course covered the terminology, core business processes and emerging industry trends. I left the course wondering how all of this was going to apply to running projects. Within two weeks of taking this course, my supervisor passed along a compliment from my stakeholders how much more effective and efficient I was in running their project. This newfound productivity came from the ability to more easily understand the challenges that the project was intended to address. Little did I know that the industry training was a form of business process immersion. 4. Get Comfortable With ‘Design Thinking’ The concept of “design thinking” originated with companies finding out that while project managers thought they were achieving the desired delivery success criteria of being on time and budget, they were not really producing the desired level of business success from projects. These companies began to explore ways of changing the approach in determining business success for a project. Design thinking gives project managers several approaches to fully qualify the path to business success by techniques such as charting a customer journey, business process brainstorming, business case creation and creative reframing. All of this opened my mind to going beyond the traditional boundaries of a project to ensure I was going to both define and execute to true business success. I sometimes long for the days when I ran smaller, simpler and shorter projects whose goal was typically to finish on time and budget. I could afford to relax a bit and strive to achieve a high professional standard in the mechanics of running a project. But as our projects become larger, more complex and longer in duration, we as project managers have to delegate some of these activities to other people, so we can get on with the business at hand of producing successful business results from projects. These four things helped me make the transition to achieving business results on projects. What are some of the things that allow you to do the same? |
The Right Way to Implement Portfolio Management: Baby Steps
| By Wanda Curlee Why do organizations implement portfolio management? There is no right or wrong answer. However, there is a right and wrong way to implement it. Sometimes organizations become so excited by the possibilities of portfolio management, they take the big bang approach. In other words, they implement everything at one time. This is definitely the wrong approach for almost all organizations. A more desirable approach is what I like to call baby steps. With baby steps, there’s less to lose if something needs to be abandoned or tweaked to better meet the demands of the company. The first step of this approach is to develop the portfolio management methodology the company wants to eventually adopt. This helps leadership see the full value and builds buy-in. For some, determining what to adopt first is very painful. My suggestion for deciding what aspects of portfolio management to implement first has to do with resources. Today, organizations usually lack all the resources needed to deliver everything desired. So start with your most in-demand resource—the type that gives you the most trouble—whether it’s human, capital, hardware or something else. Then take all your projects and programs and decide the order in which you’d like to deliver them. This is your portfolio roadmap. Are the in-demand resources in collision? In other words, would a scarcity of resources cause bottlenecks in project or program execution? Most likely the answer is yes. Next, you might want to roughly determine the cost of each component (e.g., a project or program), the highest two risks on each one, and the perceived value of delivery. Cost is normally quantitative, but perceived value and risks may be qualitative. That’s okay. Just try to have four or five factors for each and assign a numeric value for low, medium and high. This makes it easier to come to consensus. For each component, have concentric circles with value at the center, cost surrounding the value and finally a red circle to describe risk. For example:
The first set of circles has a relatively small value, but large cost and risk. For the amount of benefit received from this component, it might make sense to cancel. The second set of circles shows a large value, a smaller cost and a large risk. Since the value is so large compared to the cost, it might be worthwhile to see if the risks can be reduced. Finally, the last set of circles has a moderate value, a large cost and a fairly low risk. This may be a good one to keep, especially if the costs can be negotiated down. Once each component has three circles, then the portfolio roadmap can be looked at again with each of these concentric circles. Does it match what you had before? Probably not. Based on the circles, you will probably make changes to the portfolio roadmap. Some portfolio components may be canceled and others will change priorities. Yes, the resource that causes bottlenecks or collisions still needs to be evaluated, because most likely there are still some issues. However, you may have more resources because some components were canceled or delayed. With a better handle on what components can and should be executed when, you’re on your way to a successful rollout of portfolio management at your organization. Have you ever done this kind of resource audit and prioritizing at your organization? If so, has it helped?
|
Aligning Stakeholder Engagement to the Big Picture
| By Lynda Bourne Stakeholder engagement is an essential part of project management. Chances are your organization focuses on stakeholder engagement but uses another name for the activity. From an organizational perspective, stakeholder engagement is a means to achieving outcomes increasingly seen as necessary to comply with various rules and regulations or meet customer or community expectations. Here are some terms you’ve probably heard that have stakeholder engagement at their core. Corporate Social Responsibility (CSR) Stakeholders increasingly have expectations about the behavior and responsibilities of organizations that go beyond the provision of jobs and products or services. CSR is generally defined as the continuing commitment by an organization to improve the quality of life of the workforce and their families as well as of the community and society at large. The social responsibilities of organizations arise in the context of stakeholder relationships. No two organizations are likely to have the exact same set of responsibilities, because each organization has different products, services and strategies and therefore different combinations of stakeholders and stakeholder interests and issues. Sustainability Sustainability in an organizational context goes beyond environmental issues to include every dimension of how a business operates in the social, cultural and economic environment. It is a business approach that creates long-term consumer and employee value and directly contributes to the sustainability of the organization itself. The Triple Bottom Line (TBL) TBL is an accounting framework with three parts: social, environmental and financial. These three divisions are also called the three Ps: people, planet and profit, or the "three pillars of sustainability." Many corporations are required to report in the TBL framework as part of their exchange listing rules.
(The International Organization for Standardization’s ISO 26000:2010: Guidance on social responsibility, and the Global Reporting Initiative’s closely aligned guidelines set out the framework for social responsibility and guidelines for reporting, respectively.) What This Means for Project Managers As project managers, we don’t always have input to organizational policies, but we are at the cutting edge of organizational change. Many projects have a significant impact on stakeholders outside of the organization. Therefore if your organization’s executives are using any of the terms detailed above and are “walking the talk,” you need to make sure your project activities support the organization’s overall stakeholder engagement philosophy. Project failures such as the tailings dam disaster in Brazil last month can undo decades of work by an organization to establish a reputation as a good corporate citizen. Building such a reputation is not purely altruistic! ISO 26000 suggests organizations that practice CSR and sustainability and focus on the TBL have a distinct competitive advantage that includes:
In summary: Project managers cannot create corporate policy. But if the organization is focused on its TBL, the wise project manager will make sure his or her project plan includes proactive stakeholder engagement, and view that engagement as part of a much larger picture. How much focus does your organization place on stakeholder engagement? How much does it care about CSR, sustainability and the TBL? |