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)

Kevin Korterud

In this high-demand/low-availability labor market, we all have to start re-thinking about how to staff one of the increasingly most pivotal roles in large, complex technology delivery: the program PMO lead.

In the past 10 or so years, we have all seen the size and scale of delivery dramatically increase as the business and technology landscape becomes more complex with multiple solutions, architectures, geographies, suppliers and organizations—and enabling layers such as cloud platforms. For new technology solutions as well as transformations, program delivery leads now spend more time than ever navigating this highly complex landscape—which leaves less time for traditional program management activities.

This situation has put an increased premium on the PMO lead role, which typically was portrayed as more of an administrative function. Ever more frequently, the PMO lead role has become closely integrated with the program delivery lead role in terms of guiding the trajectory of delivery…to the point where they resemble an adjunct delivery function to the program delivery lead.

The common dilemma today: Where does one find a PMO lead that can oversee the typical delivery operations activities such as risks, issues, workplans and tools—as well as assist the program delivery lead with critical delivery assurance efforts? In addition, how can we fill a PMO lead role with the right person in a timely manner as not to impair the mobilization progress of a delivery program?

As opposed to the traditional approach of trying to staff at the last minute when demand arises for a PMO lead role, the most effective path is to have the next generation of PMO leads on hand before you need them. Keep these three points in mind:                                                          

1. Recognize that large, complex and transformation PMOs require a unique mix of leadership skills. Programs are typically known to be a collection of delivery projects that directly fulfill a unified set of business needs. However, the landscape of programs has changed over the years where they now have to be implemented in a highly integrated, more complex technical and business environment. In addition, there can be transformative enablement capabilities such as value realization, organization change management and dependency management.

Given this landscape, PMO leads that solely oversee the execution of serial recurring PMO processes will not be successful. The PMO lead of today needs to have skills that transcend pure administrative execution by serving as a broker of conflicts, predictor of delivery volatility, as well as an organizational enabler of progress. In addition, to do so PMO leads now engage at a much higher level in an organization.

To achieve success, PMO leads need to have prior experience with complex delivery leadership, senior executive engagement as well as an ability to quickly grasp the delivery “big picture” in order to take action in a proactive manner. Traditional administrative backgrounds are not enough to prevail in today’s delivery environment.  

2. Domain and local knowledge is highly valuable. In addition to delivery leadership, executive engagement and the ability to sense prevailing conditions, it’s very helpful to have additional knowledge in the areas of business domains, as well as localized organizational characteristics.

For example, the learning curve of a PMO lead that spent most of their career in healthcare would have to be enormous to grasp the terminology and concepts of energy exploration; the converse is also true, when an energy exploration PMO lead serves on a healthcare program. In addition, organizational entities in companies may differ between regions and product lines.

There are a few methods to help ensure that domain and local knowledge needs are fulfilled. Where possible, prioritize PMO leads that have prior business experience in a specified domain area. To assist with understanding the organizational entities, consider the PMO lead shadowing the overall program delivery lead in recurring leadership meetings.

Where there are no available PMO leads with the necessary business domain nor local knowledge, consider providing business domain training as well as conducting immersion sessions for the prospective PMO lead in advance of their start of their role. It’s much quicker to take PMO leads with the right mix of modern-day competencies and incrementally bring them up to speed in these areas than it is to try and instruct a business domain lead on complex delivery.

3. Rotational PMO lead roles build more effective delivery leaders. In order for PMO leads to stay ahead of the game, their role needs to start in advance of delivery activities. In today’s complex environment, any delay in staffing a PMO lead will be detrimental. The best way to avoid this problem is to make the PMO lead role a rotational staff function. This enables it to be a training ground for future delivery leaders.

In the military and other organizations, the notion of a rotational staff assignment is quite common. In addition, it is highly prized given the visibility it provides—as well as the ability it creates to foster further career growth (which might not be found in a traditional assignment).

Current delivery leadership that needs to gain experience with more complex delivery, as well as experienced new joiners, are both examples of candidates for modern-day PMO lead roles. In addition, standard PMO lead training should be designed, built and deployed. Organizations that identify, groom and deploy PMO leads in a timely manner are already starting out ahead of their competitors. This model is not limited to employees of an organization; performing the same function with suppliers is also valuable to reduce the chance of late PMO lead fulfillment.

The function of a program management office has been both an integral and essential component of complex industrial delivery for almost 100 years. Over the past few decades, technology delivery leaders—as well as stakeholders—have gained a similar level of appreciation for the importance of the program PMO lead.

As demand continues to increase with no end in sight to the shortage of capable PMO leads, it’s best that companies start to build their own cadre of future PMO leads; this is essential for both staffing this role in a timely manner, as well as to ensure the growth of delivery capability.

I welcome any comments on what others are doing to help both staff program PMO roles, as well grow this function in your own organization.

By Peter Tarhanidis, Ph.D., M.B.A.

Today, developments in emerging technology, business processes and digital experiences are accelerating larger transformation initiatives. Moore’s Law means that we have access to exponentially better computing capabilities. Growth is further fueled by technologies such as supercomputers, artificial intelligence, natural language processing, Internet of Things (IoT) and more across industries.

Emerging Tech
The global IT industry is valued at $5.3 trillion in 2020 and is poised to grow 6.2 percent by 2021, according to tech market research firm IDC. Emerging technology like augmented reality and robotics will make up an increasing share of that growth.

Business Process Maturity
Organizations are improving the maturity of their business processes. They’re doing this by automating tasks, eliminating them, improving performance or finding the lowest-cost way to perform a task. Organizations are connecting with experts to collaborate across a wider network of colleagues. This enables strategies to be integrated across the value chain to quickly drive business outcomes.

According to market research group IMARC, automation and the IoT are driving growth in business process management (BPM); the BPM market is expected to grow at a 10 percent compound annual growth rate between 2020 and 2025.

Customer Experience
In addition, having a formidable customer experience strategy can make the difference between customers choosing your brand or your competitors in 2020. That’s according to Core dna, a digital experience platform vendor.

Customer experience is redefining business processes and digitizing the consumption model to increase brand equity. Gartner reports that among marketing leaders who are responsible for customer experience, 81 percent say their companies will largely compete on customer experience in two years. However, only 22 percent have developed experiences that exceed customer expectations.

Economic Forces
Lastly, the potential for cash flow growth remains high in 2020, despite economic risks, according to the U.S. Corporate Credit Outlook 2020. This will likely lead to capital investments and a fair portion of companies funding transformational projects.

The Way Forward
While transformations have evolved, they encapsulate the way we think and operate. Old methods may seem encumbering and administratively difficult, creating bureaucracy and delays in decision making. The challenge is the velocity of change, which is very disruptive to organizations.

I’ve developed a few guidelines to help navigate this change:

• Work with an agile mindset.
• Fail often and fast to ultimately filter out winning initiatives.
• Define the cultural attributes that propel staff and colleagues to succeed on their endeavors.

Change is now inherent and pervasive in the annual planning process for organizations. Given that, I like to ask: What is the plan to prepare staff and colleagues to compete in this hyper-transformation age?

What observations have you made to keep up with this new era’s velocity of change?

By Jen Skrabak, PMP, PfMP, MBA

As we close out 2019 at work, wrap up projects, and plan to spend time with our families for the holidays, sometimes we forget this is the best time to prepare for the year to come. Here are my five tips to get you in the mindset:

1.  2020 starts now. 

The traditional thinking is that nothing happens from Thanksgiving to New Year’s since hiring managers and companies are preparing for the holidays. 

The real situation is that everything happens at the end of the year. Companies are busy preparing for next year, and, from personal experience, November/December has been the busiest time for recruiting senior-level portfolio/program executives. Hitting the ground running starting Jan. 1 means that 2020 starts now. 

Key questions for you to start your 2020 planning:

• What are your career goals for 2020? 
• Are your CV or résumé and LinkedIn profile up to date with key accomplishments and aligned with your career goals?
• What are your development plans? Do you have training scheduled, books to read or people you need to consult with to gain insights?

2.  Ladder up your experiences and skills. 

The traditional thinking is that a career ladder is about getting a new title at the next level with a higher salary.

The real situation is that building your career is about learning agility and building a repertoire of experiences and micro roles. If you’ve been in program or portfolio management for seven years or more, it may start to feel that you’ve “been there, done that.” To get to the next level of experiences, ask yourself: In 2020, how will you learn a new skill, gain a new experience or learn from someone?

3.  Transformation must be visible. 

The traditional thinking is that transformation is about organizational change management, which is mainly instituted through a variety of communication methods and channels (memos, town halls, workshops, staff meetings, etc.).  In a recent viral stationary bike ad, the woman depicted before and after the transformation looked the same—many people had issues with the cognitive dissonance where she said that her life changed so much, but the change was not visible.

The real situation is that transformation is more than just communication.  Instead of telling people what the change is, the approach should be to actively demonstrate the change so people can experience it.  Transformation at the organizational level is about behavior change.

When I implement a large-scale organizational change, I personally lead up interactive training sessions to teach people about the change, as well as follow-up sessions where I’m hands-on in mentoring and coaching people on the new skills. It’s a great way to get real-time feedback about the change, and most importantly, to be seen as the expert coach within the organization enabling the change. This has been very effective in building trust and credibility in the organization.

4.  Create space. 

The traditional thinking is that when you see a good idea for a program, go implement it—quickly—to take advantage of speed to market. 

The real situation is, just like a cluttered drawer that you keep adding to, a portfolio can be cluttered if not systematically managed. From a personal standpoint, I had to move recently, and I was surprised at how many things I found in the back of the drawer that I forgot existed. When I emptied it out and scrutinized every item, I discovered that 30-40 percent of the items were not needed or were no longer useful since they were damaged, broken or just plain outdated. By getting rid of items, I created space for new items and technology, just like in an organization.

The steps to portfolio management in an organization are: 

• Inventory: Create a complete listing of all programs, projects and activities that consume resources.
• Rationalize: Scrutinize and prioritize every item. Does it have ROI? Is it really going to move the needle on the strategy? You can even develop simple project scoring to prioritize—key criteria can include value, resources and alignment to strategy.
• Start, Stop, Sustain: Make decisions and tradeoffs about what to start, stop and sustain. In an organization, teams sometimes continue to do what they’ve always done for years, and it takes a thorough review of the portfolio to surface work that is not needed or useful—just like the drawer example.
• Quarterly/Annual Review: Portfolio optimization is about doing Step No. 2 above regularly, not just one time. Conducting a performance review at least quarterly is the best way to ensure that the decisions initially made in Step No. 3 haven’t changed due to environmental factors (internally or externally).

5.  Volunteer for your next role.

The traditional thinking is that your manager assigns you the next program or role.

The real situation is you are responsible for actively managing your next role. You should tell the right managers and other leaders what you would like your next program or role to be.

Key steps:

• Clearly state your desire: What type of program or role would you like? Be as specific as writing your own job description, including responsibilities, skills and experience needed.
• Develop a plan: What steps, dates and resources do you need to get to your desired role from where you currently are? Do you have the skills and experience needed or do you need to develop them? What support or resources from leaders or others do you need to accomplish your plan? Treat this like any other project you would manage, with a project plan and project schedule.
• Track your progress: Check in with yourself every week and key supporting leaders monthly or quarterly. Hold yourself accountable and adjust as needed.

Don’t wait: What is your plan for starting 2020 now?

By Jen Skrabak, PfMP, PMP

As a woman who’s worked for the past 18-plus years in project, program and portfolio management, as well as building and leading enterprise project management offices for Fortune 500 companies, I wanted to address the topic of women in project management.

In the United States, women hold 38 percent of manager roles, according to a study conducted by McKinsey in partnership with LeanIn.Org. And while women have made gains in some STEM fields, particularly healthcare and life sciences, they are underrepresented in many others. U.S. women hold 25 percent of computer jobs, and just 14 percent of those in engineering, according to the Pew Research Center.

In project management, as in other professions, women earn less than men. For project managers in the United States, men earn an average US$11,000 more annually than women, according to PMI’s Earning Power: Project Management Salary Survey.

Historically, women have been pigeonholed in project administrative or project coordination roles instead of project management roles, and the key question is “Why?”

We’ve all heard that we need to “think differently,” and as Sheryl Sandberg advocated in her book, Lean In: Women, Work, and the Will to Lead, women need to raise their hands, project confidence, be at the table and physically lean in to make themselves heard. The dictionary definition of “lean in” means to press into something. So when faced with an overwhelming force such as wind, you need to lean toward the force rather than away in order to not be blown away. 

“Lean in” can be a metaphor for asserting yourself as a leader in project management. As women, we may be held back by self-doubt, our speaking voice or body language that conveys a lack of self-confidence. The advice here is not limited to women; people of color can “lean in,” too.

There are three key cognitive biases that may hold women back in project management. The key is to recognize that these exist, and work to build awareness while overcoming them:

1. Affinity Bias: We naturally like people who are like us, including those who are the same gender or ethnicity. Men tend to be over-represented in leadership positions and in industries where project management predominates, such as IT, engineering, manufacturing and construction. It is natural that men would prefer to work with and report to people like themselves.  
2. Inter-Group Bias: This can occur with many groups, such as people from a certain geography (cities or regions), university, culture or other characteristics such as an interest in sports. We naturally feel an instant connection to people with whom we share the same background or a common characteristic, versus those with whom we don’t have anything in common.
3. Confirmation Bias: A widely held belief is that women appear to not be as confident as men. And when people believe this, they embrace information or experiences that confirm that belief. Research has shown that women are usually expected to be nice and warm, instead of assertive, direct and confident.

By understanding and recognizing these biases, we can work to defeat them. I’ll explore these topics more in my next post, which will coincide with International Women’s Day on March 8. How do you combat biases in the workplace?