Voices on Project Management

By Conrado Morlan

When I was a portfolio manager, I attended many portfolio status meetings where projects were reviewed and assessed based on their status color. The status color—green, yellow or red—was usually determined by a combination of specific metrics defined by the organization's project management office.

Green meant the portfolio was on track, yellow meant the portfolio could be in danger of not meeting its goals, and red meant the portfolio was in serious danger.

Attendees’ behavior during these review meetings was always the same. To me, it revealed how simplistic or misleading the tri-color status system can be. Portfolios with a green status received no questions from the audience, even when a portfolio manager conducting the presentation specifically asked if anyone had questions.

On the other hand, yellow and red status portfolios produced expressions of surprise and/or contempt. The audience bombarded the portfolio manager with questions and asked for contingency plans to bring back those portfolios to green status.

At times I felt those portfolio managers were being punished for doing their job well. And I always wonder if people had dug deeper into the portfolios with green status, would they still have been so surprised or contemptuous of the other portfolios?

A portfolios status turns yellow or red because a risk turned into a problem or because of internal dependencies like other portfolios or external dependencies like new government regulations. When portfolios are aligned with the organization's strategy, portfolio managers must know all the risks identified in the strategy and assess how those risks will impact the project portfolio.

That’s their job. Furthermore, portfolio managers who create awareness among the portfolio steering committee about risks or external dependencies are being smart. They’re gathering input to decide which projects in the portfolio may need to be postponed, which may need to have their scope changed based on risk and/or internal or external dependencies, and which may need budget cuts or increases.

In other words, a yellow or red status can indicate a portfolio manager’s competence and sophistication, rather than incompetence and stupidity.

As a portfolio manager, how do you avoid surprise and contempt among your stakeholders? 

By Rex Holmlin

I teach project management to undergraduate and graduate students, and recently one of my students asked me which knowledge area was the most important.

My response: All the knowledge areas are important. Depending on the project and organizations involved, we would use more or less of the processes and tools, but most likely we would use all the knowledge areas in some way to help ensure project success.

But as I reflected on the question later, as well as my own nearly four decades of experience as a project manager, I realized my answer wasn’t great. In retrospect, I should have said Stakeholder Management is the most important knowledge area.

By training, I am an engineer. I love cost estimating and scheduling. But as important as these topics are, the source of most problems on projects is people. And the best way to avoid project problems is through the people involved in the project.

Therefore, paying attention to the four processes of stakeholder management can pay significantly more dividends to a project than a schedule or cost estimate.

When it comes to stakeholder management, I believe we shortchange our projects most often in two areas.The first is identification of stakeholders.

I am reminded of the movie Butch Cassidy and the Sundance Kid. Early in the film, train robbers Butch and Sundance are being chased by a posse. They stop to catch their breath, hoping they have lost the posse. When the lawmen appear over the ridge still on their trail, Butch and the Kid look at each other and say, “Who are those guys?”

This is the key question with the identification of stakeholders. We as project managers need to do a very thorough job of identifying the people, groups and organizations not only involved in the project, but who might be affected by it.

The second aspect of stakeholder management where project managers often fall short is stakeholder analysis. A Guide to the Project Management Body of Knowledge(PMBOK^® Guide)includes some great stakeholder analysis tools, but I recently came across an outstanding academic article(PDF link) by John Bryson of the University of Minnesota about stakeholder analysis.

It provides step-by-step instructions on 15 stakeholder analysis tools and techniques that can really take your understanding of the stakeholders in your project to the next level. I think you’ll find it both interesting and a potential source of tools to help you avoid a lot of the headaches we often encounter with project stakeholders. 

Which knowledge area do you think is the most important?

By Kevin Korterud

It’s not uncommon, particularly on larger programs, that project practitioners have to assemble a team of project managers. Sometimes we’re lucky enough to hire project managers we know. But quite often, we have to resort to a formal application process.

I get many questions about how to find the right project manager for a role. The process of interviewing and selecting a project manager requires preparation, efficiency and the ability to quickly focus on the skills needed for a project.

Here are four tips for navigating the interview process—and identifying the ideal candidate. 

1. Read and Rank Résumés—Before Interviews  

It is essential to prepare for the interviews. Good preparation practices include:

• Think about the primary behavioral skills as well as industry/technical skills that the role requires.
• Read each résumé in detail, looking for the desired skill profile.
• Rank the résumés based on the desired skill profile.
• Create a list of scenario-based questions that reflect those skills and the desired responses.

2. Set the Stage  

Where you conduct the interview can be as important as what you ask. Secure a location that makes for easy dialogue with minimum distractions and supports your scenario-based questions.

The best location is in a program “control room.” These rooms typically have project schedules, metrics, risks and issues displayed on their walls. Having real-time project artifacts as a reference point promotes both active dialogue and the ability to highlight examples related to the scenario-based questions. If a control room is not available, create a temporary one in a conference room where you can tack up project management artifacts.

3. Ask the Right Questions

The candidate has probably already gone through an initial screening. So resist the temptation to ask questions that could have been posed before or “dead-end” questions that don’t shed light on a candidate’s project management skills. Dead-end questions include:

• Tell me about yourself.
• Share your strengths/weaknesses.
• Why did you leave your last role?  
• Why should I hire you?

Scenario-based questions that bring out the depth and breadth of a person’s project management skills include:

• Why did you become a project manager?
• Share some accomplishments and learning experiences.
• How do you deal with challenging stakeholders?  
• What are your favorite project management metrics?
• What techniques do you use to get a project back on track?

4. Leave a Positive Impression     

Sometimes a candidate isn’t a good fit for a specific project management role. If that occurs, consider the interview to be an investment in the future—perhaps you will need a project manager with that skill set for a later project. Be sure to stress this to the candidate. If there are other project manager roles open, explain that you will route the person’s résumé for consideration for those roles.

No matter the decision, it’s essential to leave a positive impression with the candidate. A positive impression left with candidates also helps attract referrals to your role.

Interviewing project managers can feel like as much work as the project itself. Good preparation, execution and decision-making during the process can help to quickly fill your open project manager role—as well as build a pipeline of candidates for the future.

What techniques do you use to interview project managers? 

By Wanda Curlee

Project management is partly about establishing and documenting processes and procedures, and maintaining configuration control. Startup companies, on the other hand, often pride themselves on entrepreneurialism, a lack of required processes/procedures and flexibility.

But processes and procedures are not the antithesis of entrepreneurship and flexibility. In fact, project, program and portfolio management can help a startup manage growth.

When a startup’s leadership allows change to happen without any processes, strategy or structure, the organization will struggle. Project managers can help provide structure, while also demonstrating how to adapt to change.

For example, if the organization has 20 employees today but expects to add 180 in the next two years, how exactly will this growth occur? Will all new employees be hired in month 24? Do all resources need the same skills? Does training need to be done? This is where project managers can help.

Later in the organization’s growth, executives, with the help of project managers, can put together a roadmap to deal with issues like sales, IT and system needs, and travel policies. At this point, it may be time to turn to a program manager responsible for the overall strategic view of the program, rather than individual projects.

The program manager may work directly with leadership or report to a portfolio manager. The program may be to deliver organizational change, including IT, processes/procedures, staffing, etc. When I was a program manager, I focused on realizing benefits and the roadmap.

For example, when a small company becomes medium-sized, the number one issue might be staffing to meet sales needs. Let’s say the program manager’s roadmap showed that the second quarter of the program was when benefits would be realized from sales and increased staffing would occur.

If the program manager realizes that sales are occurring much faster than predicted, he or she would discuss alternatives with leadership. One option might be to slow sales; another might be to slow down the development of processes and procedures, and focus more resources on hiring the correct individuals to continue to drive sales.

Finally, the portfolio manager can drive strategic change in a startup growing into an established organization. The portfolio manager listens to leadership’s strategic goals. With a small company that is transitioning fast, the strategic goals should not change often, but can be fluid.

The portfolio manager assists the C-suite with governance and understanding how to select projects/programs to drive to the final result—checked growth without going bankrupt. She will also put governance in place to report to the investors, leadership and stakeholders. With a portfolio manager bridging strategy and execution, the fledgling organization can increase its chances of growing rapidly—and successfully.  

By Jen L. Skrabak, PMP, PfMP

Organizations struggle with selecting the right projects or programs for their portfolios. We see this in project success rates that haven’t increased much beyond 64 percent during the last four years, according to PMI’s Pulse of the Profession^® 2015 report). We also see this in the companies that have faded from relevance or been obliterated by the pace of innovation and change—remember Blockbuster, Meryvn’s, RadioShack and BlackBerry?

The challenge is to select the right projects or programs for the right growth, placing the right bets that will pay off in the future. Here are four tips to help you do this.

1. Choose Projects and Programs You Can Sustain.

Know your organization’s current strengths and weaknesses; don’t be overly optimistic. It’s great to have stretch goals, but remember that the benefits of your project have to last.

Don’t forget about culture. Sometimes the primary reason a new project or program result doesn’t stick is that the organization’s culture wasn’t there to support it.

Organizational change management, including a defined communications and stakeholder engagement strategy, is crucial on large-scale projects and programs where hundreds if not thousands of processes may be changing in a short amount of time.

In addition, establishing a culture of project management with engaged sponsors, mature project and program management practices, and strategically aligned portfolios helps sustain projects and increase success rates.

2. Know Your Portfolio’s Upper Limit

Don’t only focus on a portfolio goal such as, “Achieve US$100 million in portfolio ROI in 2015.” Also focus on the portfolio’s upper capability.

The upper limit of your portfolio may be defined by budget, capabilities (skills or knowledge), capacity (which can be stretched through new hires or contractors) or culture (existing processes, organizational agility and appetite for change).

Define your portfolio’s upper limit and the highest resource consumption period and plan for it, rather than the initial ramp. Taking a typical adoption curve for a new project or program, your portfolio upper limit may look something like this:

3. Don’t Be Afraid to Admit Mistakes—and Fix Them Quickly

When we initiate projects and programs, and they’re not performing as expected, how quickly do we course correct, and if necessary, pull the plug? Having shorter weekly or monthly milestones and project durations is better than longer ones.

But are you equipped to act quickly when those weekly milestones are missed? How many weeks do you let a failing project go on, hoping it will get back on its feet, before ending it?

I have seen projects and programs that are not yielding the expected value being allowed to continue. Often, the sponsors still believe in the value of the project, even in the absence of metrics showing financial results. This is why setting clear financial performance metrics and monitoring them throughout development and delivery is so important: they can help project practitioners kill a project quickly if needed.

I once worked for a company that was experiencing 25 percent year-over-year growth for its products. It was a frenetic time of hiring new people, building new plants, and initiating billions of dollars in investment for new projects and programs.

However, when the U.S. Food and Drug Administration required a new warning on one of the company’s flagship products, its sales dropped 25 percent (US$2 billion annually) almost overnight. Projects and programs in flight were asked to take a 10 percent, and then 20 percent, reduction in their spending while still delivering the planned results. Planned projects and programs were suspended.

While it was difficult, the organization passed the test with flying colors. In part, this was because it didn’t spend time lamenting environmental factors but instead worked to address them—quickly.

4. Measure Your Averages

It’s not about the one big project or program success, but the successes and failures averaged over a period of time (say, three to five years). Don’t just focus on the big bets; sometimes slow and steady wins the day. 

How do you pick the right projects and programs for your portfolio?