Voices on Project Management

By Peter Tarhanidis, Ph.D.

One of the impacts artificial intelligence has had is prompting a reconstitution of project management. Here I look to leading industry experts to explore the benefits to project management systems due to matured AI software; and the maturity of the project manager as a data- and fact-driven champion of business outcomes and innovation. This combination of advanced project systems performance and leadership competence will significantly transform project success rates.

As a background to the current state of project management, HBR states that $48 trillion is invested annually in projects. The Standish Group notes that only 35% of projects are successful, and 65% of projects waste resources and have unrealized benefits.

Additionally, Proofhub attributes project failure to firms that lack project management delivery systems; they are prone to miss targets and overspend. It noted that 67% of projects fail because project management is undervalued; 44% of all managers do not believe in the importance of project management software; and 46% of firms place a high priority on project management. Also noted: Utilizing a good software program reduces failure by 10%, and scope creep by 17%.

More specifically, a PMI Learning Library article noted some reasons for project failure:

1. Unclear goals and objectives
2. Lack of resource planning
3. Poor communication across the organization
4. Inadequate stakeholder management
5. Poorly defined project scope
6. Inaccurate cost and time estimates
7. Inadequate risk management
8. Inexperienced project managers
9. Unrealistic expectations

Maturing Systems
An HBR article suggests that poor project success rates are due to a low level of available mature systems. Many firms continue to rely on spreadsheets, slides and other applications that haven’t matured current practices. While the current tools are adequate in measuring project performance, they do not allow for the development of intelligent automation and collaboration across the portfolio of projects. The opportunity to apply AI to project management could improve the success ratio by a quantifiable 25%, or trillions of dollars of newly realized benefits for firms and society.

Gartner Inc. analysts predict that by 2030, AI software—driven by conversational AI, machine learning and robotic process automation for gathering data, reporting and tracking—will eliminate 80% of all project management office tasks. Gartner identifies project management disruption in six aspects:

1. Better selection and prioritization
2. Support for the project management office
3. Improved, faster project definition, planning and reporting
4. Virtual project assistants
5. Advanced testing systems and software
6. A new role for the project manager

PwC envisions AI-enabled project management software will improve a project leader’s decision-making process across the following five key areas crucial to success:

1. Business insights improvements by filtering better data for relevant knowledge
2. Risk management assessing scenarios that offer mitigation strategies
3. Human capital in allocating resources more appropriately to meet the business priorities
4. Integrating various technologies and specialists to improve project outcomes
5. Active assistance by enhancing administrative tasks and stakeholder progress communications

PwC posits the advancements in project management software are an opportunity for firms and leaders that are most ready to take advantage of this disruption and reap the rewards.

PM Competence
PMI’s Project Manager Competency Development (PMCD) Framework provides an assessment and development of a project manager’s competence. It is based on the premise that competencies have a direct effect on performance. A project manager’s competence can be categorized in terms of project management knowledge, project management performance and their accomplishments, and personal competency in performing the project activities and personality characteristics. This combination is the stated success criteria for a competent project manager.

AI’s capability to assess disparate sources of big data to obtain actionable insights arms project managers with improved decision-making competence throughout the project lifecycle. However, a challenge noted by PwC’s recent analysis of OECD data (covering 200,000 jobs in 29 countries) warns that AI’s job displacement effect will automate 30% of jobs involving administrative manual tasks by the mid-2030s. This indicates a clear need to upskill project manager competence in order to thrive in the future.

In order to succeed, a firm’s culture of adaptability and lifelong learning is a cornerstone for shifting today’s project management roles into the future. They will need to expand competence in soft skills, business and management skills, technical and digital skills—all working in concert with each other.

IAPM states project managers will face fundamental changes over the next 10 years with job descriptions and roles. It suggests AI will make logical analysis and decisions, allowing the PM to focus their main area of responsibility on creativity, resolving conflicts, and innovation.

Lastly, with any transformation or disruption, one must consider the actions and obstacles—whether financial, management support, or workforce ability—to embrace and enact change. Here are some key considerations to reflect on:

1. Does your firm value project management?
2. Is your firm a quick adopter of intelligence-based project software?
3. Will your firm invest in your competence development?

Post your thoughts in the comments!

References

1. PMI: Project Management Competency Development Framework—Second Edition
2. PMI: Why do projects really fail?
3. HBR: How AI Will Transform Project Management
4. Gartner Says 80 Percent of Today’s Project Management Tasks Will Be Eliminated by 2030 as Artificial Intelligence Takes Over
5. IPAM: Will project managers soon be replaced by AI?
6. PWC: A Virtual Partnership? How Artificial Intelligence will disrupt Project Management and change the role of Project Managers
7. Proofhub: Top 10 Reasons Why Projects Fail (And How to Solve Them)

by Cyndee Miller

After Hurricane Katrina hit New Orleans, many—including me—wondered if the storied city would ever be the same. Slowly but surely, citizens, companies and non-profits began to rebuild.

One of the most ambitious efforts was Southeast Louisiana Veterans Health Care System’s Project Legacy. The decade-long, US$1 billion project resulted in a state-of-the-art healthcare center serving some 40,000 veterans.

That fighting spirit was honored last night when it was named Project of the Year.

“New Orleans is a beautiful city full of culture and this hurricane devastated it. But it did not destroy its soul,” said Fernando Rivera as he accepted the award at the PMI 2018 Professional Awards Gala.

Yet passion alone didn’t get this project across the finish line. “We couldn’t have done it without the principles and skills of project management,” he said.

Mr. Rivera didn’t leave the stage without acknowledging the outstanding work of the other two finalists:

Poor roads, impassable bridges, a site located 620 miles (1,000 kilometers) from the nearest port and the worst economic recession in Brazil’s history. Let’s just says Fibria faced its fair share of hurdles as it expanded its hardwood pulp production facility in Três Lagoas, Brazil.

The project to deliver the industry’s first forest-to-port pulp operation wrapped two months early, nearly US$500 million under budget and with no serious accidents among workers. It also provided a huge economic boost to the community, creating more than 40,000 temporary gigs and 3,000 long-term jobs. And by incorporating big data, machine learning and automation, the project gives Fibria an edge on the innovation front, too.

The other finalist was McDonald’s Digital Acceleration project, an aggressive tech play—especially for such an established player—that put customers in charge of how they wanted to order and pay. It all started in March 2017, when the fast food behemoth’s president and CEO vowed to company shareholders that the chain would deploy mobile order and pay in 20,000 restaurants by the end of the year.

The team not only beat the deadline by a month, but it delivered the project nearly US$10 million under budget. And the response was massive. Within months of the project’s launch, the app had racked up 30 million downloads and 110 million redeemed offers in the U.S. alone.

It wasn’t just the big-budget projects racking up kudos. Attendees also got a look at this year’s PMI Award for Project Excellence winners (which all had budgets less than US$100 million):

University Health Network created standardized, timely and meaningful electronic discharge summaries for its 35,000 annual patients across a Canadian healthcare system.

Savannah River Nuclear Solutions excavated, consolidated and covered massive amounts of ash and contaminated soil alongside a closed coal-fired power plant in the U.S.

The Royal College of Surgeons in Ireland rolled out a new online platform to replace its paper-based system used to track physicians’ progress across 36 medical competencies.

Want more? PM Network will take a deeper dive into all the project action over the next few months. Plus, you can check out video case studies on PMI’s YouTube channel.

Find Purpose to Unlock Exceptional Performance

By Peter Tarhanidis, MBA, PhD

There are three common maturity levels in developing project management leadership:

• In the first level, the project leader becomes familiar with PMI’s A Guide to the Project Management Body of Knowledge (PMBOK® Guide) and begins to implement the methods in their initiatives.
• In the intermediate level, project leaders broaden their abilities by implementing more complex projects and demonstrating a strategic use of the methodology.
• And in the most mature state, project leaders demonstrate high performance by using advanced project methodology and leadership competencies to take on an organization’s most critical initiatives.

It takes many years to cultivate the skills necessary to execute complex initiatives of all sizes and types. And project leaders may find gratification in the personal development to sustain their performance, as well as their project achievements. 

However, over time, it’s not unusual to lose sight of that passion, excitement and engagement for executing initiatives. Instead, the project leader may default to simply providing the project management administrative activities of project execution. This reversal of development is a leadership pitfall and creates a chasm between high performance and exceptional performance.

One way to bridge the chasm is to be purpose-driven. A defined purpose distinguishes oneself as a distinctive as a brand. A brand is underpinned by one’s education, abilities and accomplishments. By identifying what is central to your interests and commitments, project leaders can re-engage with purpose and unlock exceptional performance. This can be broad or can be very specific in a subject expertise.

I have use the following method to find my brand and define my purpose:

1. Develop a purpose statement—this is your elevator pitch that quickly and simply defines who you are and what you stand for as a project leader.
2. Assign annual goals to achieve the purpose and watch your performance increase.
3. Create a network of relationships that support your purpose and brand.

Having used this approach to define my purpose, I learned I enjoy the macro view of the firm. I regularly coach leaders and help them develop their teams. Therefore, I like to simultaneously drive toward exceptional performance to achieve a firm’s mission and to advance the needs of society.

Please share your purpose and any examples of exceptional performance you achieved toward that purpose.

by Cyndee Miller

Agile is the punk rock of project management. After years of living on the fringe, it’s officially gone mainstream—much to the joy of some and the utter dismay of others.

Like punk, it was built around a call to disrupt the status quo.

When a group of software programmers wrote the agile manifesto 16 years ago, the big goal was to embrace change: “to be aware of changes to the product under development, the needs and wishes of the users, the competition, the market and the technology,” Andy Hunt, a co-author of the agile manifesto, told PM Network last year.

While that purpose still holds true, the agile club is no longer limited to software developers, startup leaders and waterfall haters. An HPE survey showed agile’s ascendancy from anti-establishment to mainstream really took off in the past five years, with a significant adoption inflection point occurring around 2010. And check out the current numbers: Ninety-four percent of the survey respondents in the latest VersionOne State of Agile survey said their organizations practiced agile. PMI recently partnered with Agile Alliance on an Agile Practice Guide.

Some of this comes down to the business world’s obsession with digital transformation, which 42 percent of execs say they’ve begun, according to a 2017 Gartner survey. As Jason Bloomberg, president of Intellyx, wrote: Companies are increasingly going agile “to successfully navigate the disruptive waters that threaten to drown them.”

Take South Africa’s Standard Bank. Facing competition from a rapidly expanding fintech sector, this 155-year-old bastion of financial service embarked on a multiyear digital transformation—with a shift to agile software dev at the center, according to McKinsey.

Not everyone, however, was onboard. I know, shocker, right? To change hearts and minds, the company’s CTO and his team held town hall meetings to explain their logic and set targets for the transition, gave teams autonomy to make decisions on how to go about their day-to-day functions, and co-located team members for better collaboration.

So far, so good. In early agile engagements, Standard Bank reported productivity increases of up to 50 percent and unit-cost reductions of up to 70 percent per function point.

But for some, agile’s entrance into the mainstream has given rise to a new challenge: the dilution of the very term. Mr. Hunt told PM Network the word has become “sloganized” and is “meaningless at best, jingoist at worst.”

In that same article, Jordi Teixido, PMP, COO at Strands, Barcelona, Spain, said: “Agile is wonderful when you’re really iterating and collaborating, but it’s also a refuge for mediocre practitioners who are unable to document or express their requirements or forecast what they want to build. If you don’t follow the rules of the game in waterfall, everyone knows it. But in agile, that’s harder to tell from the outside—and because of that, some people use agile on projects that would be far better under waterfall.”

What do you think? Is your organization using more agile? And do companies have a grasp on what the term really means?

By Peter Tarhanidis

Whenever I’m in a leadership role I try to be sensitive to the level of influence I gain, retain and lose. Influence is a precious commodity for a leader. And it can be disastrous if you lose your team or if tensions arise that reduce one’s effectiveness to achieve a goal.

I recall one of my client assignments where the goal was to ensure a successful integration of a complex merger and acquisition. The team had slipped on dates, missed key meetings and there were no formalized milestones.

I set up casual meetings to discuss with each member what would motivate them to participate. One clear signal was that management had changed the acquisition date several times. This disengaged the team due to false starts that took time away from other priorities.

During the sponsor review, I reported there was a communication breakdown and that no one shared this effort as a priority. At that point, the sponsor could have used his position of power to pressure everyone to do their part. However, the sponsor did not want to come off as autocratic.

Instead, he asked if I would be willing to find an alternative approach to get the team’s buy in.

I realized my influence was low, but I wanted to help improve the outcome for this team. So I talked again with each team member to negotiate a common approach with the goal to be integration-ready without having an exact date.

Ultimately, our goal was to have all milestones met while a smaller core team could later remain to implement the integration when management announced the final date.

A leader uses influence as part of the process to communicate ideas, gain approval and motivate colleagues to implement the concepts through changes to the organization. 

In many cases, success increases as a leaders exert influence over others to find a shared purpose.

Tell me, which creates your best outcomes as a leader: influencing others through power or through negotiation?