Project Management View from Rail Transit Programs and Projects

The Project Management Institute’s (PMI) - Project Management Body of Knowledge (PMBOK) contains a framework for the management elements for effective planning, initiating, monitoring and controlling and closing projects.   

PMBOK defines the PMO as “a management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools and techniques.”   

PMOs support project managers by providing services that make project management processes effective and efficient.  The services include governance, knowledge transfer, work environment, training and continuing education of project professionals, and tactical and strategic products such as schedules, estimates, progress report, performance analysis, process/procedures management, records management, knowledge management, personnel administration, resources planning, backlog plans and program development for future projects.

“Project management is an added value service.”

A PMO that is solely focused on performance data and schedule may fall short of the PMI-PMBOK expectations.   The short PMO may excel at defining metrics, collecting data, measuring the data to performance goals, and on creating “Fire Charts” that must address the red, yellow and green activities extracted from the Critical Path Schedule.   While this is an important function of the PMO, it must be balanced with other project management knowledge, skills and judgment in other areas, such as integration, requirements, stakeholder management, procurement, risk, safety/security, and human resources.  

The PMO silo adds another organizational level between the project manager and the organization’s management.   A holistic and effective PMO requires organizational resources - staff, equipment, facilities, institutional knowledge, and qualified project management staff that is accountable for explaining to the PMO governance the variances and corrective actions to improve performance to metrics. 

PMI’s Agile Practice Guide states “The PMO exists to shepherd business value throughout the organization.”

Standard management practices have always included measuring performance to critical metrics for cost, schedule, quality, safety and security.   Depending on the project domain, the practices will be enhanced by the PMO for the project business case and be integrated with the business’ management organization and functional Models for processes and procedures.   A PMO is best comprised of personnel with:

• Demonstrated experience and understanding of the project scope
• Expert knowledge of the project industry domain, and the available materials, equipment and systems needed for the work
• Superior project management skills with a proven record of effective communications and validated decision making
• Prior management positions in an environment that closely resembles the framework and culture of the project recipient’s organization

“Pencils fit where hammers don’t.” 

Introducing a complex record management system and a new reporting Model with numerous charts and graphs will initially get attention to data and the need to expedite actions to better meet goals.   But it may not be the best strategy for improving long term performance of projects.

Fire Charts use colors to highlight various metrics.  Red highlights are used for performance metrics on issues or action items that are late, overspent, have missed critical dates on goals and decisions, or that indicate a negative risk event is triggered.  Yellow highlights are used for items nearing monitoring thresholds that indicate a performance problem.   Green highlights are used for issues and action items that are making progress within accepted ranges for performance.  

Ideally, Fire Charts should show less Red performance conditions for events and more Yellow and Green.   As corrective action resolves Red events, the PMO should conduct a review to determine if there is a deeper Lessons Learned.   The Lessons Learned may initiate a change in processes or procedures so the risk of the Red event can be eliminated or routinely mitigated during the current and future projects under the management of the PMO. 

“It’s just bad management.”

Conversely, Fire Charts that continue to increase Red performance conditions indicate that the Model may not reflect the environment, or that the PMO and project management tools, processes and procedures are not effective.  Like repeating positive outcomes for resolving Red events, the PMO needs to review negative outcomes and make changes that allow project managers and the PMO improve performance metrics -  less Red and more Yellow and Green highlights.

The primary services by PMOs are related to groupings of projects, and they directly impact the performance of project teams and the results delivered by the projects.   In some cases, the PMOs becomes a part of the organization’s structure and its business plan that integrates processes for maintaining and building infrastructure in-line with the core business product and its strategy for achieving business goals.

Dinsmore in Human Factors in Project Management compares project management and on-going management:

“Running projects calls for specialized managerial approaches to avoid pitfalls.  General managerial principles, while applicable to projects, must be tailored to accommodate each project’s unique traits.  The special needs of the project team, which are different from those of operations personnel, must also be fulfilled.

Ongoing ventures require long range planning and marketing, thus setting for long-range survival.  Projects are finite, complex and call for task oriented approach.”  

“They don’t know what they don’t know.”

But for projects, programs and portfolios, the distinction between project management and on-going operation management becomes increasing blurred as the extent of scope and duration of project work comes close to or surpasses the organization’s product cycle.   At this point, the function of managing projects and operations become even more aligned with requiring long range planning, marketing, financing, and execution and realization [business] plans.

Under these circumstances, the project knowledge, business skills, management competence and leadership IQ of the PMO staff must meet the highest proficiency in project management and its working knowledge of operations within the organization.   However, the quality of PMOs can vary just like any other business function that relies on management for creating, sustaining and growing an organization’s business.  

As Roadstrum stated in Excellence In Engineering – “Engineering work is project work”,   it could be derived that “Organization management is project management.”    And similar to organizational management, success factors for PMOs include:

• Creating a Project Management Plan (regardless of project, program, portfolio monetary value) that defines the PMO’s entire plan and its processes, procedures and deliverables for the business of managing projects
• Building a management staff that demonstrates core values of the organization and PMI ethics
• Utilizing as many procedures, processes and systems that already exist within the organization’s assets
• Capturing and maintaining retrievable knowledge and historical data for all projects
• Establishing annual training and on-going professional improvement requirements
• Creating and maintaining standards for estimating, scheduling, reporting and Key Performance Indicators (KPI)
• Correlating and reinforcing KPI with the organization’s business goals and strategies
• Conducting, documenting and sharing  periodic management review meetings that generate tangible assessments and guidance for improvement
• Developing where required simple, efficient and effective recurring processes and procedures
• Documenting, sharing, and making accessible and common practice for Lessons Learned
• Providing decision making criteria and timelines for rendering/implementing decisions
• Documenting organization policies for risk, integration, performance, quality, safety, security, and  sustainability/environmental awareness
• Establishing long-term staffing plans that integrate a career path and succession of personnel
• Supporting employee nominations, application and recognition in industry publications and professional awards

This is Part 7 in a series about a second book that affected the development of my skills in the business of managing projects and program of projects    The book -  Human Factors in Project Management by Paul C. Dinsmore – published in 1990 by AMACOM-American Management Association.  

The series contains articles on:  1)  A Classical View of Project Management.    2)  Planning and Strategy.   3)  Project Interfacing.   4)  Using Managerial Time.    5)  Negotiations.   6)  Decision Making and Problem Solving.  7)  Managing Changes. 

This article summarizes the key points in Chapter 13 – Managing Change Across a Changing Frontiers and it provides commentary relating the content to PMI’s Project Management Book of Knowledge – 6^th Edition (PMBOK).

From the perspective of the 1990’s, Dinsmore cites several changes and challenges that the project domain will face including Technology, Environment, Economy, Energy and Politics.  These changes and challenges are just as valid in the 2010’s.   

Concurrently, project management strategies and tactics will evolve from the same project domains changes.   Dinsmore’s assessment is as true today as it was in 1990:

• Technology will continue to create new opportunities for improving product products as well as improving project management tools for scheduling, estimating, document control and knowledge management.  
• Environment awareness will continue to create a new stream of projects and government funding to improve and protect the environment for future generations, and introduce for use on projects better materials, alternate energy sources and more efficient equipment, systems and consumer products.
• Economic conditions will affect the size and frequency of projects.  Strong conditions normally generates more large projects.   Weak conditions normally generate lower scale small projects.
• Energy conservation will continue to create projects and end-user products that use less electric power and produce less bi-products and emissions that harm the environment. 
• Politics will affect availability of government funding and provide motivation to challenge schedules, create innovation, assist in streamlining statutory approvals, address community concerns, and to optimize and improve existing project processes. 

The closing paragraph, Dinsmore writes:

“People can always solve their own problems – particularly in project management, because problem solving is what project management is all about.   By drawing on the tools of the trade, such as planning, interfacing, training, negotiating and decision making, project managers can overcome event the most awesome barriers.  Although the project arena is complex, with many factors becoming uncontrollable, management tools can be honed to meet the challenges as they appear, especially when manager are attuned to the human side of project management.” 

Coincidently, the new PMBOK – 6^th Edition – Chapter 2 more explicitly than prior editions identifies the global environment that directly and indirectly affect the project life cycle from start to finish.   Many of the same topic presented by Dinsmore are part of the environment in which projects operate including:

• Enterprise environmental factors, such as organizational culture, structure and governance; facilities and resources; distribution infrastructure; technology software; resources availability and employee capability.
• Organizational process assets, such as processes, policies and procedures, and  knowledge repositories.
• Organization systems, such as organizational governance, corporate management elements, and organizational structure, including the Project Management Office.

Commentary:   Even after 30 years from Dinsmore’s book, the key environmental factors in the project and project management domains remain consistent.   However, the conditions, challenges, and problems change with the environment created by human progress and evolution.    Project management expertise in dealing with these factors will continue to affect performance throughout project life cycles in the decades ahead.   From my perceptive, knowledge transfer, knowledge management and project management fundamentals will continue to be essential for success.  

This is Part 6 in a series about a second book that affected the development of my skills in the business of managing projects and program of projects    The book -  Human Factors in Project Management by Paul C. Dinsmore – published in 1990 by AMACOM-American Management Association.  

The series contains articles on:  1)  A Classical View of Project Management.    2)  Planning and Strategy.   3)  Project Interfacing.   4)  Using Managerial Time.    5)  Negotiations.   6)  Decision Making and Problem Solving.  7)  Managing Changes. 

This article summarizes the key points in Chapter 12 – Decision Making and Problem Solving and it provides commentary relating the content to PMI’s Project Management Book of Knowledge – 6^th Edition (PMBOK).

In the opening part of the Chapter, Dinsmore relates decision making and problem solving skill throughout the project life cycle.  He then goes through the process, including problem analysis, decision analysis, creativity in identifying decisions, and the review of facts and opinions. 

To illustrate the process for developing solutions to a problem, Dinsmore cites a problem identified by renters in an apartments building regarding poor elevator service.   From a building manger and engineering perceptive, the solution focused on the vertical movement of residence.   As a result, the solutions proposed adding elevators, speeding up existing elevators, and designating local and express elevator operations.  Each solution included significant cost estimates.   Without a cost effective solution, the building manager consulted building staff, and the solution selected was to add mirrors in the lobbies. 

After the solution was implemented, building management observed that complaints were reduced after the mirrors were installed.  After review, the management determined that the real problem was the renters found the wait for elevators was boring rather than there was excessive waiting time.  The mirrors distracted renters from the time waiting for an elevator. 

Dinsmore’s example amplifies his presentation of procedures referenced to Kepner and Tregoe:  A)  Identify the problem.  B)  Propose solutions.  C) Justify the best solution.  D)  Present the solution implementation plan.   

PMBOK references decision making techniques as part of Chapter 4-integrated change control, and Chapter 5-collect requirements. 

PMBOK references decision making topics as part of Chapter 8-quality data analysis, Chapter 9-acquire resources, and manage the team and control resources, Chapter 11-risk plan response, and Chapter 13-stakeholder engagement, manage stakeholder.  

Commentary:    Participants on the project know that decisions need to be made throughout the project life cycle.   But they rely on the project manager to do the work needed for them to understand the problem, the solutions, and to concur with the decision to the problem and the plan for implementing the solution.    As a result, the project manager and his support staff will present documents, actively solicit and compile input from the project team,  perform all research to specify advantages and disadvantages of solutions, prepare cost estimates and schedules, and to recommend the solution the project recommends. 

Good Practices for Decision Making

• Specify the project conditions at the time the solution is selected
• Identify the problem that the solution will solve
• Describe the criteria for selecting the solution
• List the expected benefit/outcome from implementing the solution
• Establish realistic dates the decision and the realization of benefit
• Determines/specify the inputs needed for the decision process
• Record the Decision in a document that covers all proposed solutions and the conclusion
• Assure that subject matter experts within the project and from the organization are providing input

This is Part 5 in a series about a second book that affected the development of my skills in the business of managing projects and program of projects    The book -  Human Factors in Project Management by Paul C. Dinsmore – published in 1990 by AMACOM-American Management Association.  

The series contains articles on:  1)  A Classical View of Project Management.    2)  Planning and Strategy.   3)  Project Interfacing.   4)  Using Managerial Time.    5)  Negotiations.   6)  Decision Making.  7)  Managing Changes. 

This article summarizes the key points in Chapter 11 – Negotiating and it provides commentary relating the content to PMI’s Project Management Book of Knowledge – 6^th Edition (PMBOK).

Project managers and team contributors continuously negotiation start and end dates and the resources required for executing direct and indirect project activities.   However, this type of negotiations is drastically different from the formal negotiations used by organizations - Buyers for contractual agreements for contracts with consultants and contractors – Sellers.  

Negotiations for selecting the most qualified Seller and for determining the contract costs follow the Buyers’ organized and repeatable processes, which are consistent with industry domain practices most common for the project scope.  

Dinsmore summarized the most common application of negotiations in a project environment:

• Contracts:  Projects can have multiple contracts for services and products, and each contract can have subcontracts for materials and labor.    Regardless of the contract acquisition method, the Buyer and Seller will negotiate the price, terms and conditions and technical requirement of the contract agreement. 
• Procurement:   Projects also procure services and materials to contribute to the execution of work, such as administrative office space, office supplies and services, and cleaning and maintenance services.   The Buyer and Seller will routinely expedite and negotiate delivery dates and timeframes that are correlated to changing project schedules.
• In House negotiation:  Some Buyer’s organization have labor contracts and work rules that affect work performed by in-house personnel assigned to projects.   Interpersonal attributes will have a great impact on meeting the needs of management personnel and personnel represented by a collective bargaining agreement.
• Negotiation with third parties:   Long standing organizational agreements and memorandums of understanding may affect how project work can be executed.   Planning and negotiating work will need to recognize the agreements and MOU to ensure requirements are met without impacting project plans.
• Claims and contract closeout:   Buyers and Sellers understand the final stage of contracts includes settlement of changes, claims and disputes.   Similar to the effort to start the contract, Buyer and Seller will negotiate acceptance of work, entitlement to changes, resolve disputes, and reconcile payments to complete the contract and terminate obligations.

Whether formal or informal, the negotiation process has three possible outcomes.   Dinsmore concisely describes the applications, methods, and the results for the Buyer and Seller on: A) Win-Win negotiations.  Mostly tailored to parties with intent to create and sustain a long work relationship.  The process creates give and take compromises that allow Buyer and Seller to focus on the benefits from the agreement.  B) Win-Lose negotiations.  This is most typical for parties that view the agreement as a sole one-time occurrence.   This is tailored to Buyer and Seller that want to demonstrate victory at the expense of the other.    C) Lose-Lose negotiations.   This is often associated with a Buyer and Seller with a history of strained negotiations and poor contract performance.  As a result, the parties take extreme and strong positions that neither can expect to actualize.  

Negotiations are most effective with a plan.   The plan will include: 

• Research and position statement:
• Pre-negotiations:   This consists of planning the strategy and tactics for the negotiations, including history between the Buyer and Seller, the company representatives required at the negotiations, schedule of meetings and negotiation dates, and the definition of several positions and outcomes that will be used active negotiations and post-negotiations,
• Active negotiations:   This consists of executing the strategy and tactics for conducting the negotiations and creating presenting facts and figure to present positions, alternate positions or counter-positions to initiate and complete the negotiation process.  
• Post negotiations:   This is the activities from the results of the negotiations, including recording the process and result in project records, and as needed, updating contract documents to clarify or change requirements.     

PMBOK references negotiations as part of Chapter 9-develop the team and control resources, Chapter 13-manage stakeholder, and Chapter 12. 

PMBOK Chapter 12 – Project Procurement Management identifies negotiation as a primary personal and team skill.   From project perspective, negotiation is a discussion aimed at reaching an agreement.  Procurement negotiation clarifies the structure, rights and obligations of the parties and other terms of the purchase so that mutual agreement can be reached prior to signing the contract…. Negotiation concludes with a signed contract document or other formal agreement that can be executes by both buyer and seller.

Commentary:   Most projects in the rail transit are subsidized with government funding.   As a result, the Buyer’s contract acquisition process is highly structured to ensure government requirements are met, including length of solicitation period, prevailing wage rates for labor, Buy America provisions for materials, defined percentages for subcontracting work to disadvantage and minority businesses, and a wide range of environmental compliance issues.   Each of these added requirements can lead to negotiations for changes at the pre-award, post award and closeout phases of Buyer/Seller contract. 

PMBOK Chapter 9-Project Resource Management offers several techniques for resolving team conflicts.   The tactics are transferrable to the to the negotiation process and include: A) Withdraw/avoid.  B) Smooth/accommodate.  C) Compromise/reconcile.  D) Force/direct.  E) Collaborate/problem solve.

This is Part 4 in a series about a second book that affected the development of my skills in the business of managing projects and program of projects    The book -  Human Factors in Project Management by Paul C. Dinsmore – published in 1990 by AMACOM-American Management Association.  

The series contains articles on:  1)  A Classical View of Project Management.    2)  Planning and Strategy.   3)  Project Interfacing.   4)  Using Managerial Time.    5)  Negotiations.   6)  Decision Making.  7)  Managing Changes. 

This article summarizes the key points in Chapter 8 – Using Managerial Time and it provides commentary relating the content to PMI’s Project Management Book of Knowledge – 6^th Edition (PMBOK).

Some clients use a percentage of direct labor in design and construction contracts to determine the value of managerial time for a project.    Some consultants may use a similar estimating process.  Some project managers may estimate the managerial costs by hard estimates for activities needed to meet the client’s requirements and expectations.

The contract documents specify managerial activities, services and deliverables required from the assigned management teams.   The requirements are usually concentrated in the Scope of Work (SOW) in a consultant service contract and in the Division 1 specifications in a construction contract.  In addition to the requirements, experiential data may help clarify the estimated cost based on historical averages for manpower usage and expenses on other contract with the client and similar clients in the industry domain.

One of the best ways to understand and formulate the costs is to create a chart of managerial activities, services and deliverables and to assign manhours over a defined period of time, such as monthly – the most common recurring period on construction projects.   Best practices for estimating project management team costs would include input from experienced project managers, including the PM that will be used for the contract.   The managerial items will cover a variety of personnel including PM assistances and  support staff for estimates, schedules, knowledge/records management, quality, safety, budget/financial  administration, contract administration, reporting and process expediter. 

Dinsmore presents a table of managerial items, which was created from survey response from project professionals, that illustrates a good template for generating an estimate of manhours necessary for managerial activities.    Models can be prepared for each contract type, contract requirements, and unwritten client expectations.   The Table includes:

Once the Models are prepared, activities and manhours can be adjusted based on the available budget negotiated for the project.   The adjustments may means that low priority low value activities can be trimmed or increased accordingly.   However – in some cases funding partners and oversight agencies may not be flexible in reducing the scope for project management activities, services and deliverables.  

Dinsmore identifies behaviors in the project team that cause high manhour usage and create inefficiencies in work flows including:  A)  Difficulty in saying “no.”   B)  Lack of self-discipline.   C)  Lack of time management.   D)  Less than fully competent employees.  E)  Excessive bureaucracy in the organization  F)  Poor utilization of administrative staff.   G)  Tendency to centralize, rather than delegate.  

As a result, Dinsmore discusses other strategies that may be helpful assessing alternatives including:  A) Delegate more.   B)  Do less work.  C)  Let things slide (delay).   D)  Work longer (more hours).   E)  Work harder (faster).   

PMBOK Chapter 3-The Role of Project Manager includes the quality and skills for project leadership.

Focusing on important things including:

• Continuously prioritizing work by reviewing and adjusting as necessary
• Finding and using a prioritization method that work for them and the project
• Differentiating high-level strategic priorities, especially those related to critical success factors for the project
• Maintaining vigilance on primary project constraints
• Remaining flexible on tactical priorities
• Being able to sift through massive amounts of information to obtain the most important information.

PMBOK Chapter 4.3.2-Develop Project Management Plan identifies Expert Judgment for determining the resources and skills levels needed to perform project work, and prioritizing the work on a project to ensure the project resources are allocated to the appropriate work at the appropriate time.

Commentary:    Soft costs for project management services are often secondary to direct hard costs for delivering the intended project assets.   While understandable, the soft costs for project management services should not be underestimated or go overlooked.  PM services are essential to manage execution risks that could affect the project schedule and costs.    I routinely monitor and assess manhour usage and cost of PM services and deliverables with the expectations of the client/owner.   A simple chart of monthly activities and deliverables and the estimated manhours can be reviewed with PMO management and the client/owner to evaluate needed adjustments to PM scope to better align with expectations.