Displaying items by tag: project management

Tuesday, 24 November 2020 11:11

Executing Projects to Deliver Business Value

The underlying purpose of any project is to add value. Projects serve as vehicles that enable changes, which should bring upon benefits that exceed the cost of making these changes.

 

As long as this occurs, a project is deemed to have been effectively and efficiently undertaken. Project managers are entrusted with the responsibility of ensuring that both the performing organization, as well as to the clients they serve, benefit from projects undertaken.

 

Given the very large number of interrelated considerations as well as the highly volatile environments in which projects operate, the prospect of adding value becomes increasingly difficult. Uncertainties that affect projects abound. Costs of undertaking projects continue to rise. Requirements from stakeholders become increasingly ambiguous. These factors detract value instead of adding value.

 

As project managers, we have to overcome any potential threats that impede the realization of this value. This include the need to protect the “Agile Ozone Layer”. This Agile Ozone Layer is usually attacked from multiple angles, from rigid and bureaucratic organizational structures, command and control style leaderships, to a functional silo mentality and resistant vendors and customers.

 

To ride the wave of such impediments that surface, a heightened sense of opportunistic awareness based on careful examination of business value undertaken throughout the project is required. Business Value refers to the net quantified benefits derived from the business endeavour being undertaken by the company.

 

This requires developing a sense of urgency for intelligent collection and analysis of relevant data to make decisions that enable realization of business value to the project as well as ensuring that the momentum of continual improvement is maintained. Doing the above correctly occurs only when project managers select project management methodologies that commensurate with the business environment the projects are undertaken.

 

Developing and maintaining a sense of urgency

When projects are to be executed based on evolving requirements in a highly turbulent business environment, the agile project management approach is most applicable. Such an approach requires a sense of urgency to be ingrained within the project team.

 

Changes have to be embraced and adapted to through collaborative efforts with customers. Only by developing a sense of urgency will the cost associated with delays in adapting to changing requirements can be curtailed.

 

Firstly, we shall have to establish a Product Roadmap that provides an initial visual timeline based on the Project Vision. Then releases are planned using a Release Planning that defines when deliveries may be made based on frequency of delivery as well as extent of adaptation required. A more incremental model approach, where deliverables are made at regular intervals, speeds up the delivery of value to the client.

 

For situations where there is no need for deliveries to be made incrementally, but there is a very urgent need for the features to be aligned perfectly to the changing requirements of the client, an iterative model is adopted.

 

Realization of Business Value

To realize business value, a deep understanding of not only what the customer requires but also the value associated with those requirements has to be established.

 

The project team needs to ascertain the “why” behind the “what”. This is required for both the performing organization as well as for the client. The value or specific benefits the project delivers via the end deliverable needs to be understood and internalized.

 

This requires gradually uncovering all uncertainties within specific release cycles and working time blocks, that impede the ability of the project team to deliver the value that is expected. The ability to do so is enhanced when delivery is made incrementally based on priorities set by the client. This way, feedback from each incremental deliverable, as well as uncertainties uncovered, become valuable inputs for future deliveries. In this way the project “delivers value incrementally”, and in the process of doing so, enables realization of business value throughout the project life cycle.

 

Rapid Data collection and analysis

Successfully delivering value requires constant data collection and assessment of progress. It requires developing insights on what works and what does not. This is done not based on assumption, but on actual data.

 

To ascertain whether this is indeed the case, developers aim to produce what is called a Minimum Viable Product as a prototype. Such a product contains the smallest collection of features that enable customers to consider the product as being functional. This provides developers with an opportunity to test features and ascertain important improvement points quickly and effectively.

 

From the company’s perspective, this exercise also helps to establish what the smallest amount of value that can be added to a product or service that benefits the business as well. Collecting data on minimal new value propositions and the corresponding positive business impact provides an impetus for the company to decide quickly and effectively on what value additions it should incorporate in order to maximize business growth prospect. This concept of Minimum Business Increment focusses on the realization of business value.

 

In summary, delivering value requires a combination of collaborative efforts of all stakeholders who are committed towards developing and preserving an Agile Ozone Layer that makes it conducive to undertake agile project management.

 

A sense of urgency to deliver value needs to permeate throughout the organization. This urgency extends to rapid data collection and analysis where Minimal Viable Product and Minimum Business Increment considerations are routine initiatives undertaken using a delivery model based on an incremental or iterative approach.

 

November 2020

Published in Certifications

One of the key roles of project managers is to integrate complex project success factors. This has become increasingly critical in today’s highly turbulent business environment.

In the revised examination content outline issued by the Project Management Institute (PMI) for the new PMP examination format effective 1 July 2020, one of the new domains that will be introduced is factors surrounding Business Environment. This article summarizes the key tasks project managers are expected to undertake in this rapidly changing business environment. By familiarizing yourself with these issues you will be better prepared to answer questions that will be posed in the latest PMP examination that will commence as of 1 July 2020.

When business environments within which projects are managed changes, the manner in which projects have to be managed needs to change as well. Many considerations and subsequent adaptations have to be made. There are critical primary considerations. A discussion on what they are with examples of how they affect projects is listed below.

 

The primary business environment considerations include:

 

  • Maintaining the right fit between environment and approach
  • Ensuring project benefit realization
  • Supporting organizational change
  • Planning and managing project compliance
  • Establishing the right governance structure
  • Optimizing knowledge transfer

 

Maintaining the right fit between environment and approach

 

As and when the business environment changes, due to changing technological developments or stakeholder requirements, the final project and product scope will have to change as well. Hence it is imperative that the project manager evaluates and addresses external business environment changes for impact on scope. This is done by determining the appropriate project methodology/methods and practices to be used in order to adapt to the changed business environment climate.

For example, the development of an Artificial Intelligence powered mobile app. Such a complex project will most likely have variations in scope and stakeholder requirements as and when there is a technological change that ripples across the business environment. It will require a cross functional team that would develop software in small iterative cycles. For this project, the project manager needs to select an agile life cycle approach and undertake it in accordance with the approach selected. If he continues the project using the usual predictive life cycle approach, the project will be ill equipped to meet the rapidly changing requirements that will occur. Hence, ensuring that the right fit between business environment and project life cycle type is critical.

 

Ensuring project benefit realization

Ensuring that the project management approach is suitably adapted to the business environment enables projects to better deliver upon its objectives. This translates to the projects being able to better deliver value to the end user. Project managers should focus on ensuring that the benefits are realized, and should also ensure measurements for tracking this realization of benefits are in place.

For example, the AI mobile app development project is deemed successful only once it produces value to the client, i.e. when the software developed allows the client to use AI and analyze existing big data, in order to make decisions that will benefit the organization’s bottom line. If the app is completed, and the client is unable to do so, the client will continue to insist on additional changes which will only increase the cost and time of the project in question.

Hence, project benefits/value for both the client as well as for the performing organization have to be clearly defined and measured. This is especially crucial for projects undertaken in an evolving, rapidly changing business environment. Until and unless both the performing organization as well as the client realize the benefits they crave, the project should not be deemed to be successful when undertaken in an agile project life cycle approach.

 

Supporting organizational change

 

A project manager’s sphere of influence usually extends beyond the boundaries of a particular project. They should be well versed with the current business environment and the need to be agile. Therefore, project managers should support the organization in adapting to changing external business environments. The organization’s current culture should be assessed and eventually shaped into what the current business environment demands, with the assistance of the project manager.

Looking back at the mobile app development example, the project manager should recognize that the project comes with it a degree of unpredictability. Therefore, for it to be successful, the work culture in the organization has to change from a “command and control” culture, with project managers exhibiting a “predict and plan” mindset, to a “servant-leadership” culture, with project managers adopting a “sense and respond” mindset. This allows for self-organizing teams that collaborate easily with stakeholders to emerge that is crucial for projects undertaken in an agile manner to succeed.

In this regard, project managers need to be mindful that organizational change from a cultural and structural standpoint is necessary for projects to continually deliver products and services that are desired. Hence supporting organizational change in this regard is necessary.

 

Planning and managing compliance

 

With changing business environments comes changing stakeholder requirements. Compliance requirements from regulatory bodies in particular will evolve and amend in order to keep up with the ever-changing business environment. Therefore, it is necessary for project managers to remain vigilant on threats to compliance and analyze carefully consequences of non-compliance, so that necessary action is taken (if required) to ensure project remains in compliance.

For example, when undertaking development of a software that involves relatively new disciplines, such as artificial intelligence and big data, there may be a need to comply with regulatory requirements that are unique and without precedent. This makes compliance slightly more complex. Project managers need to be aware of these complexities and seek for ways and means to ensure that compliance to these requirements are met throughout the project. Failing to do so will lead to project delays and increasing project cost as well as reputational risks.

 

Establishing the right governance structure

 

All projects require a governance structure that governs how well the project is being managed in accordance with prescribed policies and practices. This enables the integrity of the project to be maintained. As business environments are becoming increasingly turbulent, the need for more sophisticated governance mechanisms may emerge. Hence it is imperative that the project manager is able to determine and establish the appropriate governance system for the project.

For example, let’s look at our AI powered Big Data mobile app that is being developed. It is to be developed through a series of short iterations. For such a project, there may be a need for an internal governance mechanism, to ensure compliance with company policy, governmental regulations, monitor quality, as well as privacy concerns, during each successful iteration.

Additionally, a project that is as complex as the AI based app development may also need to be guided, in terms of client requirements, by a designated customer representative who would serve as a product owner. However, the product owner’s line of sight may be limited to the product requirements only. He/she may not be in a position to determine issues from an organizational perspective. Therefore, it may also be necessary for the setting up of a portfolio product owner who oversees all project product owners within the organization, providing an avenue for synergy as well as providing the organizational perspective that may be lost without such a channel existing.

 

Optimizing knowledge transfer

With increased volatility and uncertainty in business environments

comes increasing obsolesce of existing knowledge base. The need to constantly acquire, produce and integrate knowledge has to be ingrained in such environments. This enables the knowledge sharing that is necessary for project continuity to occur. The project manager has to continually discuss project responsibilities within the team, outline expectations for this new working environment and confirm that suitable approaches for knowledge transfers are in place for managing emerging project issues.

For projects undertaken in an environment with a high degree of volatility and uncertainty, optimizing knowledge transfer is crucial. For the AI mobile app project, a lot of creative thinking is required to produce new knowledge as well as to seek for ways and means to integrate this knowledge.

Hence, regular knowledge transfer sessions, such as daily stand up meetings as well as retrospective meetings, become an integral part of the overall agile project life cycle approach. These sessions enable new knowledge to be regularly acquired, produced and integrated as the project progresses

As detailed above, it is clear that the need for vigilance and an acute understanding of the considerations detailed above has become an increasingly critical skill set for project managers entrusted with managing projects within a volatile and uncertain business environment.

 

Dr Rumesh Kumar

Sharma Management International

February 2020

 

Published in Certifications

Projects are unique undertakings. They involve many different activities, expertise, processes and situations. These differences have to be streamlined and integrated towards achieving project objectives. Only when this is done effectively and consistently throughout the project, the desired project objectives are met.

This integration needs to be carefully thought out and managed by a project manager. It involves bringing together different expertise and experience, linking different key processes, customizing project requirements as well as dealing with complex situations.

The process of integration is understood clearly by categorizing it differently to signify its importance and relevance in project management. Essentially the categories include cognitive integration, process integration, complexity integration as well as contextual integration.

Published in Certifications
Monday, 13 May 2019 10:06

Navigating the PMP Exam Minefield

The PMP exam is designed primarily for two purposes. The first is to ensure that anyone who passes the exam is thoroughly familiar with key concepts relating to project management from the PMI perspective. The second is that this person is able to apply these concepts in practice. Hence many questions are designed in such a way that tests not only understanding of concepts but correct application of these concepts in real life situations.

Hence, we recommend a two-step approach in successfully completing the PMP exam. The first is to understand deeply PMP related aspects such as

 

Published in Certifications

In a recent post issued by Vocational Education and Training (VET) in Australia, there was a discussion on the need to “collaborate, diversify, niche or die” insofar as revamping corporate training in Australia. I believe this holds through for all countries in this region. This articles explores how this could be done on a practical level for training programs offered by training providers for corporations in multiple industries.

Published in Stakeholder Management
Wednesday, 27 December 2017 13:52

Moving From Crisis To Interactive Management

Crisis management sets in whenever there is a crisis that involves stakeholders. This may include anything from a major customer compliant that is highly publicized, a delay in the politically connected project launch or even the disappearance of an airline. In any case, under such circumstances the relationship with stakeholders is at an all time low and the trust deficit gap has widened considerably. Managing the situation is crucial to the survival and reputation to the company. What is needed under these circumstances is crises management. Such a management approach is characterized by being reactive, very vulnerable to shifting perceptions and can lead to hostile reactions from affected stakeholders. 

Published in Diagnostics
Wednesday, 27 December 2017 13:47

Engaging Stakeholders To Manage Risk

Does undertaking efforts to manage risk really make a difference? There are times I wonder whether it does. I recently conducted a project review for a construction project that was stalled due to the collapse of a portion of the roof structure. I requested for the risk register and was provided with one that was very comprehensively documented and yet this risk of the roof collapsing was not included.

Published in Stakeholder Management
Wednesday, 27 December 2017 13:26

Engaging Stakeholders On The Basis Of Trust

People want to be trusted. They want to be trusted to be able to do a good job, provide excellent service, deliver what they promise. Trust is especially important for stakeholders, who can be anyone who contributes towards work or is affected by the outcome of work done.

Published in Stakeholder Management

Acquiring the Project Management Professional, PMP Certification is a challenge. It calls for
a very strong commitment to cover the syllabus fuelled by a deep seated desire to pass the
exam and above all, excellent exam question answering skills.

Published in Certifications

Project risk management covers many aspects. One of them is the development
of a risk response strategy. Developing a risk response strategy for projects is
tedious, time consuming and laborious. It takes a toll on project managers and
project team members. It consumes a lot of time to identify, analyze and
develop risk response strategies. Despite doing this, projects still fail. Why is this
so? This article seeks to share some insights that address this question. 

Published in Stakeholder Management
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