Reinventing Project Management
Part 1 slides
Operations
Projects
1800s
Agricultural society
1900s
Industrial society
2000s
Information society
Time Industries,Companies,
Society
The Increasing Share of Projects
The motivation
• The assumption:– Different projects are managed in different ways.
• The literature and the discipline assume:– “a project is a project is a project.”
• There is no accepted framework
• The need:– A framework to distinguish among projects – Practical guidelines on how to manage projects in different
ways
The Questions
• How to Distinguish Among Projects – Dimensions?
• How to Classify Projects on Each Dimension?
• How to Manage Different Project Types?
• Is There More than One Way?
What Impacts Project Type?
Environment
Product
Task
Project UCP NTCP
Novelty
Pace
Complexity
Technology
Uncertainty
Complexity
Pace
Uncertainty - at the moment ofproject initiation
Complexity -size, # of elements,variety, interconnectedness
Pace - available time frame
Risk
The UCP Model
Four Dimensions for Distinction Among Project Types
• Novelty – How new is the product to customers and users– Derivative, Platform, Breakthrough
• Technology – How much new technology is used– Low-tech, Medium-tech, High-tech, Super High-tech
• Complexity – How complex is the system and its subsystems– Assembly, System, Array
• Pace – How Critical is the Time frame– Regular, Fast/Competitive, Time-Critical, Blitz
The Project Diamond - Assessing a Project’s Risk/Benefit and Selecting the Right Management Approach
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Denver International Airport Project
Automatic Bag –Handling System
Airport Construction
Project
Impact onCustomer
Impact onTeam
Business & Direct Success
Project Success
• Meeting schedule
• Meeting budget
• Changes• Yield• Other
efficiencies
• Meeting requirements and specifications
• Benefit to customer
• Extent of use• Customer
satisfaction & loyalty
• Brand name recognition
• Team satisfaction
• Team morale• Skill
development• Team
member growth
• Team members’retention
• No burnout
• Sales• Profits• Market share• ROI, ROE• Cash flow• Service quality• Cycle-time• Organizational
measures• Regulations
approval
• New technology
• New market• New product
line• New core
competencies• New
organizational capabilities
Preparing for Future
Specific Success Measures
Efficiency
Short Medium Long
Timeframe
Preparing for Future
Business & Direct Success
Impact onTeam
Impact onCustomer
Efficiency
Success Dimensions
Project Success
Timeframes of Success Dimensions
Efficiency
Impact on Customer & Team
Business & Direct success
Preparing for Future
Uncertainty
Importance
Relative Importance of Success Dimensions is Project-Dependent
Low Medium High
The NTCP Framework
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
The NTCP Diamond
Classical Project Phases Modified to an Adaptive Iterative Approach
Definition Planning Execution Termination
Revise Definition
Revise Plans
From traditional to adaptive project management
Adaptive project managementTraditional project managementApproach
Getting business results, meeting multiple criteriaGetting the job done on time, on budget, and within requirements
Project goal
An organization and a process to achieve the expected goals and business results
A collection of activities that are executed as planned to meet the triple constraint
Project plan
Plan at outset and re-plan when needed Plan once at project initiationPlanning
Flexible, changing, adaptiveRigid, focused on initial planManagerial approach
Unpredictable, uncertain, nonlinear, complexPredictable, certain, linear, simpleProject work
Affects the project throughout its executionMinimal, detached after the project is launchedEnvironment effect
Identify changes in the environment, and adjust the plans accordingly
Identify deviations from plan, and put things back on track
Project control
Projects differAll projects are the sameDistinction
Adaptive approach; one size does not fit allOne size fits allManagement style
Requirements Planning Complete
Revise Requirements
Revise Plans
Entire Adaptive Iterative Approach
Specs Design, Build,Test
Revise Design
Freeze Requirements Freeze Design
Adaptive Approach Traditional PM
Efficiency
Impact on Customer & Team
Business & Direct success
Preparing for Future
Project Completion
Time
Importance
Relative Importance of Success Dimensions - A Matter of Time
Critical Success Factors
Project MissionTop Management SupportProject PlanningProject ControlClient ConsultationSkillsPersonnel ManagementProject CommunicationClient AcceptanceTrouble Shooting
Clear and Early Product DefinitionDefined Product StrategyEarly Top Management InvolvementHigh Quality ProcessAdequate ResourcesIntegrated PlanningEmpowered and Communicating TeamVoice of the Customer
Generic Projects Product Development Projects
The FCS Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual styleDr = (Pl, HT, Sy, FC)Da = (Pl, MT, As, FC)
Pace
Novelty
Technology
Complexity
Later design freezeMore design cycles
Complex organizationFormality
Autonomy
Less market dataLater requirement freeze
The Impact of the NTCP Dimensions on Project Management
Potential riskExpected benefitDimension
Having difficulty predicting exact market needs; missing sales targets; attracting competitors to copy your ideas
Exploiting new market opportunities; leapfrogging competition; gaining first mover advantage
Novelty
Experiencing technology failure; lacking needed skills
Improving performance and functionalityTechnology
Having difficulty in coordinating and integratingBigger programs, bigger payoffsComplexity
Missing deadlines; making haphazard mistakesGaining early market introduction, mounting quick response
Pace
Benefits and risks of high NTCP levels
The World Trade Center Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
D = (Pl, MT, Ar, FC)
Reinventing Project Management
Part 2 slides
The “Toy Story” Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
D = (Pl, HT, Sy, -)
Definitions and examples of project novelty
ExamplesDefinitionLevel of project novelty
Developing a new version of a personal computer; upgrading a production line; streamlining organizational procedures
Extending or improving existing products or services
Derivative project
Building a new automobile generation; developing a new aircraft;creating a new generation of a cellular system
Developing and producing new generations of existing product lines or new types of services to existing markets and customers
Platform project
The first enterprise resource planning (ERP) package; the first photostatic copying machine (Xerox); the first Walkman; the Segway personal transportation system
Introducing a new concept, a new idea, or a new use of a product that customers have never seen before
Breakthrough project
The Segway Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Dr = (Br, HT, Sy, -)Da = (Pl, HT, Sy, -)
Required style
Actual style
Product novelty and project success: Expectations
Level of project novelty
BreakthroughPlatformDerivative
Success dimensions and possible failure
Efficiency is difficult to achieve and may not be critical (unless competitors work on the same idea); overruns likely
Time to market is important for competitive advantage
High efficiency is critical; no room for overruns
Efficiency
Outstanding improvements in customer’s life and work
Having high strategic impact on customers; retaining previous generation customers
Gaining additional customers and market segments
Impact on customer
Team members explore new fields and gain extensive experience in unknown markets
Team members gain technical and managerial experience in introducing new-generations.
Team members extend their experience in quick product modifications.
Impact on the team
Long-term, significant business success; may come later after initial products have been tested and refined
High strategic impact on the business; expectation of years of revenues and building of additional derivatives
Extends life of existing products; additional revenues and cash cow current products
Business and direct success
Creating new markets and establishing substantial leadership positions
Maintaining a strategic position in the market
Almost nonePreparation for the future
Impact of product novelty levels on project management
Level of product novelty
Breakthrough (Br)Platform (Pl)Derivative (De)
Managerial aspect
Unreliable market data; market needs unclear; no experience with similar products; customer base not defined
Extensive market research and careful analysis of previous generations, competitors, and market trends
Accurate market data exists from previous products and market research
Market data
Product definition based on intuition and trial and error; fast prototyping to obtain market feedback
Invest extensively in product definition, involve potential customers in process
Clear understanding of required cost, features, functionality, etc.
Product definition
Very late freeze of requirements, often after prototype feedback
Freeze requirements later, usually at mid–project
Early freeze of product requirements, usually before or immediately after project launch
Requirements freeze
Create customer attention through new and innovative marketing techniques; educate customers about potential of product; hidden customer needs; create industry standard
Create product image. Emphasize product advantages; differentiate from competitors
Emphasize product advantage in comparison to previous model; focus on existing as well as new customers
Marketing
Financial Middleware Software Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual styleDr = (Pl, HT, Sy, -)Da = (De, MT, Sy, -)
Denver International Airport Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Automatic Bag –Handling System Airport
Construction Project
Project types based on levels of technological uncertainty
Level of technological uncertainty
Super-High-TechHigh-TechMedium-TechLow-Tech
Key project technologies do not exist at the time of project initiation
Uses many new, recently developed, existing technologies
Mostly existing technologies; limited new technology or a new feature
Uses only existing, well-established, and mature technologies
Definitions
New, unproven concepts beyond the technological state of the art (e.g., Apollo moon landing program)
New systems in a fast-moving industry (e.g., computers, military systems)
Derivatives or improvements of products; new models in established industries (e.g., appliances)
Construction, road building, utilities, build-to-print
Examples
Project characteristics and technological uncertainty levels
Level of technological uncertainty
Super-High-TechHigh-TechMedium-TechLow-Tech
Variable
Need to develop key technologies during project effort; intermediate small-scale prototype
Considerable development and testing; prototypes usually used
Limited development; some testing
No development; no testing
Development, testing, and prototypes
Typically three cycles after the final technologies have been selected; late design freeze
At least two or three cycles; design freeze usually at midpoint during second or third quarter
One to two cycles; early design freeze
Only one cycle; design freeze before start of project execution
Design cycles and design freeze
Extensive peer reviews by technical expert teams critical to success
Technical reviews with experts in addition to formal progress reviews
Formal progress and status reviews; some technical reviews
Formal progress and status reviews
Project reviews
Highly flexible style; living with continuous change; “looking for trouble”
More flexible style; many changes are expected
Less firm style; readiness to accept some changes
Firm style; sticking to the initial plan
Management style and attitude
Many communication channels; informal interaction
Frequent communication through multiple channels; informal interaction
More frequent communication; some informal interaction
Mostly formal communication; scheduled meetings
Communication and interaction
Project manager with exceptional technical skills; highly skilled professionals
Manager with good technical skills; many professionals on project team
Manager with some technical skills; considerable proportion of academicians
Manager with good administrative skills
Project manager and project team
25–50%10–25%5-10%5%Contingent resources
Possible Time Ranges for Design Freeze, Number of Design Cycles,and Risk Areas for Project Outcomes
A: 1
B: 1-2
C: 2-3
D: n+3
D
C
BA
Project ScheduledCompletion
ProjectInitiation
Resources
Time
Planned Resources
Possible time ranges for design freeze
Risk area
Legend:
A- Low-TechB- Medium-TechC- High-TechD- Super High-Tech
B: 1-2 – Number of design cycles
n – No. of cycles required to choose the final technologies
Low- and medium-tech versus high- and super-high-tech projects
Project type
High- and Super-High-TechLow- and Medium-Tech
Managerial issue
Flexible, ready to accept many changes and tolerate long periods of uncertainty
Rigid, no-nonsense, “get it done” approachManagerial style
Formal executive reviews plus technical peer reviews by experts
Formal, top management approval of major phase completion
Project reviews
Phase overlaps not recommendedPhase overlaps possibleSaving time by overlapping phases
Cost-plus; fixed-price is possible at a later stage of development
Fixed-priceBest contract type
Spiral developmentLinear developmentDevelopment approach
Risk management, systems engineering, quality management
Lower cost, on timeAdditional concerns
SR-71 Blackbird Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
D = (Pl, SHT, Sy, -)
Apollo Program
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
D = (Br, SHT, Ar, FC)
Space Shuttle
The Space Shuttle Program
1969 Initial proposal - to go to Mars in 1980sEncountered low priorities,Were asked to look for low-cost alternatives
1972 (August) Program approved; Shuttle onlyBased on known technologies -“success oriented”
1972 (November) Design freeze-configuration and technologies
1978 First flight scheduled1981 Actual first flight - 60% budget overrun1982 System declared operational1986 Challenger accident2003 Columbia accident
Space Shuttle ProgramInitial Uncertainties
First two-medium space vehicleFirst reusable space vehicleLiquid fuel engines and an external tankHuge 75 Ton glider5000 Miles glide from reentry to landingFirst orbital flight with a live crewNo crew escape system
The Space Shuttle Program
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual style
Dr = (Br, SHT, Sy, Re)Da = (Pl, HT, Sy, FC)
Space ShuttleProject Management Style
Actual Style Alternative Style
Success oriented Look for troubleOff-the-shelf items Alternative technologiesEarly configuration and Late freeze; Build a
design freeze small-scale prototypeLow flexibility High flexibilityEarly operational Extended developmentLimited communication Intensive communication
Type C Type DHigh-Tech Super High-Tech
The Ford 2000 Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
D = (Pl, HT, Sy, -)
The three levels of project complexity
Examples of projectsProduct complexityProject complexity
Development of a PDA, Post-it notes, design of a single service
Material, component, subsystem, assemblyAssembly project
Missile development, new computer development, new automobile model, a single building construction, restructuring a production plant
System, platform of systemsSystem project
English Channel tunnel, national missile defense system, new neighborhood construction, nationwide cellular system
Array, system of systemsArray project
The Chunnel Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual styleDr = (Pl, MT, Ar, -)Da = (Pl, MT, Sy, -)
The Harmony Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
D = (Pl, HT, Sy, FC)
Mars Climate Orbiter Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual styleDr = (Br, HT, Sy, TC)Da = (Pl, MT, As, TC)
Four levels of pace
BlitzTime-CriticalFast/CompetitiveRegular
Crisis projects; utmost urgency; project should be completed as soon as possible
Meeting time goal is critical for project success; any delay means project failure
Project completion on time is important for company’s competitive advantage and/or the organization’s leadership position
Time not critical to organizational success
Definitions
War; fast response to natural disasters; fast response to business-related surprises
Projects with a definite deadline or a window of opportunity; space launch restricted by a time window; Y2K
Business-related projects; new product introduction, new plant construction in response to market growth
Public works, some government initiatives, some internal projects
Examples
The Y2K Case Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual style
Dr = (Pl, MT, Sy, TC)Da = (Pl, MT, Sy, Bl)
Reinventing Project Management
Part 3 slides
Benefit and Opportunity
Risk or DifficultyLow
Low
High
High ApproveImmediately
Reject Immediately
Further Consideration
Further Consideration
Risk and Benefit Assessment Matrix
Market Watch Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz D = (Br, MT, Sy, FC)
Innovation Categories and Project Types
IncrementalMarket Innovation
IncrementalTechnological Innovation
RadicalTechnological Innovation
Modular Innovation
Architectural Innovation
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
RadicalMarket Innovation
Time
Prod
uct P
erfo
rman
ce
Low-end demand
High-end demand
Sustaining
progress
Disruptive progress
Manage by Platform Projects
Manage by Breakthrough Projects
The Innovator’s Dilemma and Project ManagementAdopted from Clayton M. Christensen, the Innovator’s Dilemma, 1997 and modified by the authors
The Evolution of Project Types along the Product Life-cycle
Novelty Breakthrough Platform Derivative DerivativePlatform
Technology Medium to Medium- Medium- Medium toSuper-high-tech tech tech Low-tech
Goal Strategic Strategic Operational Operational
Adopted from Geoffrey A. Moore, Crossing the chasm, 1991 and modified by the authors
The Microwave Oven Patent Filed
Original Microwave Oven Patent by Doctor Percy L. Spencer, US Patent No. 02495429, Filed Jan. 24, 1950
The first Microwave Oven
Characteristics of projects for various customers
Customer type
Government/Public (B2G)Industrial/Business (B2B)Consumer (B2C)
Characteristic
Hubble telescope, FCS, Army communication
AS/400, B777, ERP systemsMP3 player, PC, carsExamples of products
Impact on public goals and needsImpact on businessImpact on quality of lifeValue to customer
Long-term relationshipIndustry leadership, preferred provider
High volume, market shareProducer’s objective
High focus on performanceHigh focus on time and cost High focus on time, cost, and quality
Project focus
Defined by or with customerContinuous customer involvementDefined by marketing; perceived customer needs, market research
Product definition
Defined by or with customerDefined by producer with customerDefined by producerProject scope: work, goals, deliverables
Contracted project, obligations to customer
Either external contract or internal commitment
No contract, internal commitment
Contractual obligations
Intense customer involvement; often customer representative on the team
Sometimes direct customer involvement
No direct involvement; focus groups or market trials
Customer involvement
Financed by customer according to contract
Internally financed, or contracted by customer
Internally financedFinancing
Competition for bids; focused on major decision makers
Industry image creationMass marketing, advertisement; brand management;
Marketing
Reliability focused on safety Reliability may be traded off for timely delivery
High reliability requiredReliability
Training, documentation, on-call support
Training, documentation, on-call support
Service availabilityProduct support
Wire and Cable Coating Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual style
Dr = (Br, HT, Sy, Bl)Da = (Br, HT, As, Bl)
Project Management -The Two + One Processes
When are you shooting?
Technical Process
Product Definition Process
Managerial Process
Classical Project Phases Modified to an Adaptive Iterative Approach
Definition Planning Execution Termination
Revise Definition
Revise Plans
The Impact of the NTCP Dimensions on Project Management
Pace
Novelty
Technology
Complexity
Later design freezeMore design cycles
Complex organizationFormality
Autonomy
Less market dataLater requirement freeze
A Framework for Adaptation
Category Project Types PM Impact
Strategic Goal Strategic, Operational
Customer External, Internal
Combined Business Objective
NPD, Product Improvement, Maintenance, Infrastructure,
Research
NCTP
Novelty Derivative, Platform, Breakthrough
Complexity Assembly, System, Array
Technology Low-tech, Medium-tech, High-tech, Super High-tech
Pace Regular, Fast/Competitive, Time-Critical, Blitz
Reducing Requirements and Design Uncertainty
Project Start
Levels Determined by Novelty, Technology,And Other Uncertainties
Uncertainty of Technical Specs and Design
Ideal World
Real World
RequirementsFreeze
Specifications and DesignFreeze
Uncertainty of Requirements
Requirements Planning Complete
Revise Requirements
Revise Plans
Entire Adaptive Iterative Approach
Specs Design, Build,Test
Revise Design
Freeze Requirements Freeze Design
Adaptive Approach Traditional PM
Iterative Process of Requirements and Design Freeze
Product Requirements Design, Build, Test Product Prototype Completefinal productTechnical Specifications
Market Research and/or Market Testing
Change Until Requirements Freeze Specifications and Design Freeze
# of Design Cycles
Initial Market Data
# of Requirements Change Cycles
Time
Adaptive project management
Traditional project management
Typical project activities across project phases
DetailsActivityPhaseMarket/customer identification; Customer needMarket definition
Define the expected business objective Business objective
Product description; Product requirementsProduct definition
Statement of work (scope); duration; budget; PM and teamProject definition
Categorize a project based on strategic or operational, internal or external user, novelty, technology, complexity, pace
Identifying project type
Define management’s expectation on relevant success dimensionsSuccess and failure criteria
Definition
Decide how each project category will affect project organization, processes, plans, activities, and team
Impact of type on project management
Break scope into detailed work packages and activitiesWBS
Project team structureOrganization
Major phases, gates, and milestonesProject process plan
Detailed network and timing of activitiesSchedule
Detailed cost of project based on WBS items Budget
Risk identification and mitigation plan based on project type Risk management
Timing and duration of integration activitiesIntegration plan
Subcontracting and vendor management planProcurement
Reporting structure and meeting scheduleCommunication
Team development and training; Team motivation Human resources
Initial technical specifications; product design and testing planProduct creation plan
Planning
Typical project activities across project phases (cont.)
DetailsActivityPhase
Refine product requirementsFreeze product requirements
Product requirements
Product designPrototype building and testingAdditional design cycles (redesign, rebuild, retest)Freeze product designProduct building and testing
Product building
Progress and status of budget, time, and activities performedProject monitoring
Update plans and make changesProject replanning
Execution
Training materials and meansCustomer preparedness
Product introduction planCommercialization
Project summary reportNext generation planning
Project wrap-up
Termination
Risk Assessment
Master plan – Entire project
Detailed work plans – Weeks
Medium detail plans – 4 to 6 Months
Time
The “Rolling Wave” Planning Concept
Outsourcing Work Packages
Possible Outsourcing Regions