the power of the pm/ba partnership - projektna-praksa.si · greg horowitt, tedxsandiego . why do...
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Leadership vs. Management
Project Outcomes vs. Project Management
Innovative Solutions
Collaboration vs. Control
Decisions based on Value
Holistic, Strategic Focus
The Power of the PM/BA Partnership Driving Business Success in the New Economy
Keynote by Kitty Hass Principal Consultant, Kathleen Hass & Associates, Inc.
IIBA Board of Directors BUSINESS ANALYSIS AND PROJECT MANAGEMENT
Cell: 303.663.8655 Email: [email protected]
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2
Kitty is the leading expert in
Strategic Business Analysis
and
Complex Project Management
She has written nine books, dozens of
influential articles, and given lectures at
corporations throughout the world. She
is a professor of Strategic PM and BA
Practices at Villanova University and a
keynote speaker at conferences around
the globe.
Kitty is a Director on the IIBA Board, and
is on advisory boards for Capella
University and the University of
California, Irvine.
Her ground breaking work in Project
Complexity has earned her recognition
as a recipient of the PMI’s David I.
Cleland Literature Award
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The Challenge The new Project
Leadership Model
The Complex Project Management Model
©KHass and Associates, Inc. 3
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Provide Customer
Value
The 21st Century Complexity
Competitive Advantage: Always at Risk
Technology Advances: Fast and Furious
Software: Embedded in Everything
Convergence
of: digital,
social and
mobile spheres
Every Company: a Technology
Company
Change: the only Constant
Complexity
Innovation
4
The Internet of:
Everything Everywhere
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Pressures Global competition Time-to-market compression Rapidly changing technologies
Processes interconnections Interdependencies Interrelationships
Structures
Complex business communities
Alliances with strategic suppliers
Networks of customers
Partnerships with key political groups, regulatory entities, even competitors
Projects
Complex behaviors caused by interdependence of users, technology, and context
“Wicked” problems
Innovation Fierce competition Global marketplace
Business Complexity is Everywhere
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“We do not have the creative
talent needed to innovate”
Complexity is our biggest challenge
Creativity is the most important leadership
quality
“We doubt our ability to
manage complexity”
©KHass and Associates, Inc. 6
Everyone is Creative Edward de Bono, Ph.D.
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Traditional project jobs are changing • BA focus: strategy,
innovation, value vs. requirements management
• PM focus: complexity management vs. project management
With the ability to adapt, invent, and re-invent Collaborate, create, and innovate Leverage complexity to compete
Companies can’t find the critical thinkers they need
What Does All This Mean For PMs and BAs?
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Achieving Innovation
Problem / opportunity analysis
Business architecture
Experimentation
Solution assessment
Feasibility analysis
Business case analysis
Benefits management
Capitalizing on complexity
Enterprise Business Analysis
Planning
Execution
Controlling
Risk management
Conflict resolution
Issue management
Team management
Managing complexity
Complex Project
Management
Implementing the
Innovation Arriving at the Creative Decision
©KHass and Associates, Inc. 8
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The Results - Unacceptable
From 2011-2015 29% of projects delivered on time, on cost, with a satisfactory result
CHAOS Report 2015 Standish Group
Gaps in Value-based BA and Complex PM
USD 500 billion/month globally
“If we could solve the problem of IT failure, the US could increase GDP by USD 1 trillion/yr.“ Roger Sessions, The IT Complexity Crisis: Danger and Opportunity
9 http://www.infoq.com/articles/standish-chaos-2015/
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21st Century: Complex Projects
© K. Hass and Associates, Inc. Confidential 10
Too big
Too long
Too complex
Too inflexible
Not adaptive
Too many Requirements
Design too rigid
Change too costly
Focus too much on time and cost, not on value
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80% of Projects on Time, Scope,
Budget
Innovative Solutions
Value to the Customer
Wealth to the Organization
We Need to Manage Complexity to Improve Project Performance
11
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1. Diagnose Project
Complexity
2. Assign Competent
Leaders
3. Select the Project
Approach
4. Manage Complexity Dimensions
©KHass and Associates, Inc. 12
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Understand Complexity
©KHass and Associates, Inc. 13
1. Diagnose Project
Complexity
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Enterprise
Focus
Operations Focus
Project
Focus
Competitive
Focus
LOW COMPLEXITY
Business
Operations Enhanced
Entry Level PMs/BAs
MODERATELY COMPLEX
Business Objectives
Met
Senior PMs/BAs
HIGHLY
COMPLEX
Business Strategy Executed
Architects and Strategic PMs/BAs
BREAKTHROUGH
INNOVATION
New Business Strategy Forged
Business/ Technology
Optimization, Innovation &
Change Experts
Transition from Technical to Leadership Competencies Advancement of Competence, Credibility, and Influence
PM/BA Complexity/Capability Model
©KHass and Associates, Inc.
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The Project Complexity Model
15
Complexity
Dimensions Project Profile
Independent - Low
Complexity Project
Moderately Complex
Project Highly Complex Project
Highly Complex
Program
“Megaproject”
1. Size/Time/Cost Size: 3–4 team members Time: < 3 months Cost: < $250K
Size: 5–10 team members Time: 3–6 months Cost: $250–$1M
Size: > 10 team members Time: 6 – 12 months Cost: > $1M
Size: Multiple diverse teams
Time: Multi-year Cost: Multiple Millions
2. Team Composition and Past Performance
PM: competent, experienced
Team: internal; worked together in past
Methodology: defined, proven
PM: competent, inexperienced
Team: internal and external, worked together in past
Methodology: defined, unproven
Contracts: straightforward
Contractor Past Performance: good
PM: competent; poor/no experience with complex projects
Team: internal and external, have not worked together in past
Methodology: somewhat defined, diverse
Contracts: complex Contractor Past
Performance: unknown
PM: competent, poor/no experience with megaprojects
Team: complex structure of varying competencies and performance records (e.g., contractor, virtual, culturally diverse, outsourced teams)
Methodology: undefined, diverse Contracts: highly complex
Contractor Past Performance: poor2.
3. Urgency and Flexibility of Cost, Time, and Scope
Scope: minimized Milestones: small Schedule/Budget:
flexible
Scope: achievable Milestones: achievable Schedule/Budget:
minor variations
Scope: over-ambitious Milestones: over-
ambitious, firm Schedule/Budget:
inflexible
Scope: aggressive Milestones: aggressive,
urgent Schedule/Budget:
aggressive
©KHass and Associates, Inc.
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0
1
2
3
4Size/Time/Cost
Team Composition
and Past Performance
Urgency and
Flexibility of Cost, time, and Scope
Clarity of Problem,
Opportunity, Solution
Requirements Volatility and Risk
Strategic
Importance, Political
Implications, Stakeholders
Level of Change
Risks,
Dependencies, and External Constraints
Level of IT Complexity
Project #3 - Product Innovation
Highly Complex Project
©KHass and Associates, Inc. 16
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Examples of Complex Business Projects
– New strategies
– New technologies
– New business models
– Mergers and acquisitions
– Business reengineering
© K. Hass and Associates, Inc. Confidential 17
– Cultural transformations
– Globalization
– New partnerships
– New lines of business
– New ways of doing business (e-business, Service Oriented Architecture)
– New products
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The new Leadership Model
Radical Collaboration
©KHass and Associates, Inc. 18
2. Assign Competent
Leaders
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19
Exploit the Synergies of Shared Leadership
PM
BA Developer
PM
BA
Business
Visionary
Lead Technologist
QA/Test Manager
Traditional
Shared
Combining Disciplines leads to Success
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Synergies
Collaboration
Vision Creativity
and Innovation
©KHass and Associates, Inc.
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Exploit the Synergies of PM/BA Collaboration
Business Analyst
• Identify business needs
• Determine solutions
• Discover, define, and document requirements
Project Manager
• Deliver on scope, time, and cost
• Define and improve project performance
accountable for business benefits
accountable for project objectives
21 ©KHass and Associates, Inc.
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Exploit Differing Perspectives
The Business Analyst View of the Project
The Project Manager View of the Project
Requirements
Initiate
Design
Plan
Construct Test Deliver
Execute Monitor and Control
O & M
Close
Adapted from: Harness the Power of the PM/BA Partnership Webinar 07/29/2008, Management Concepts
22 ©KHass and Associates, Inc.
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Views of Scope
Business Analyst
• Solution scope – Business case
– Business requirements
Project Manager
• Project scope – Project charter
– Scope statement
Source: Harness the Power of the PM/BA Partnership Webinar 07/29/2008, Management Concepts
23 ©KHass and Associates, Inc.
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Views of Requirements Scope
24 ©KHass and Associates, Inc.
SOURCE: PARTNERING FOR PROJECT SUCCESS: PROJECT MANAGER AND BUSINESS ANALYST COLLABORATION, CO-AUTHORED BY PMI AND IIBA
Business
Stakeholder
Solution
Transition
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Business Domain
Business Owner
Project Domain
Project Sponsor
Project Manager
Business Analyst
SOURCE: PARTNERING FOR PROJECT SUCCESS: PROJECT MANAGER AND BUSINESS ANALYST COLLABORATION, CO-AUTHORED BY PMI AND IIBA
25 ©KHass and Associates, Inc.
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Gap between Complexity and Capabilities
0
1
2
3
4
1 2 3 4 5 6
Typ
ical C
om
ple
xit
y R
ati
ng
Overall BA Practice Maturity
1.68
Ins FS IS/IT NP HC Trans1.66 1.66 1.64 1.69 1.62 1.81 BA Practice Maturity
Greatest % of Challenged Projects:
Greater Than 30% Over BSS
30% Over BSS
20% Over BSS
10% Over BSS
On Track
©KHass and Associates, Inc. 26
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Build a Team of “T-shaped” PMs and BAs
• Small but mighty
• Core full-time leaders
• Shared leadership
• Highly trained
• Highly practiced
• Multi-skilled
• Experienced
• Personally accountable
• Expertly coached
27
Understand strategic criticality of the effort
Common values and guiding principles
Passionate about the mission
Keeps score, seeks feedback
Constantly innovating, improving, searching for better
methods, tools, practices
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Iteration is the Best
Defense against Complexity
©KHass and Associates, Inc. 28
3. Select the Project
Approach
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29 ©KHass and Associates, Inc.
Low Complexity
• Independent
• Predictable
• Routine
Moderately Complex
• Probability
• Messy
• Integration
Highly Complex
• Uncertainty
• Disorder
• Novel
• Intricate
Linear Iterative
Adaptive Extreme
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Complex Projects
Iterative Approaches:
The Incremental Model
The Adaptive Model
The Agile Model
“…the nations and people who master the new
sciences of complexity will become the economic,
cultural, and political superpowers of the next century.” Heinz Pagels, Physicist
©KHass and Associates, Inc. 30
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©KHass and Associates, Inc.
Linear Adaptive
Structured, orderly, disciplined Spontaneous, disorganized
Relies heavily on plans Evolves, changes
Predictable, defined, repeatable Surprising, ambiguous, unique
Unwavering stable environment Volatile, unstable environment
Proven technologies Unproven technologies
Realistic schedule Aggressive schedule, urgent
21st century projects are chaotic, unpredictable
Methods that work on small projects break down
Combine the elements of classic PM, agile, lean
Traditional Approaches are not Enough
31
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Adapting for Creativity
32
Equilibrium Chaos
• Complex systems fluctuate between states of • Equilibrium (paralysis, death)
• Chaos (unable to function)
• Edge of Chaos most creative, productive state • Essential to survival • Breeds creativity
Peter Fryer, A Brief Description of Complex Adaptive Systems and Complexity Theory http://www.trojanmice.com/articles/complexadaptivesystems.htm
"Without order, nothing  can exist. Without chaos, nothing can evolve“
Greg Horowitt, TEDxSanDiego
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Why do Adaptive Methods Work?
• Iteration is the best defense against complexity
• Decompose large batches of the work into a series of small, time-boxed iterations
• Smaller batches accelerate feedback
• Produce huge benefits
– Easier mid-course correction
– Higher quality
– Greater release frequency
– Better IT/Business alignment
Source: Agile Software Requirements: Lean Requirements Practices for Teams, Programs, and the Enterprise, By Dean Leffingwell
50% faster to market
25% more productive
¼ of expected defects
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Challenges Using Iterative Approaches
• Reduce or eliminate interdependencies – To reduce complexity
– Feature-driven requirements
• Prototype - visualize – For understanding
– To reduce risk
– To prove a concept
• Use integrated tools – For traceability
– For integration
• Evolve the solution – Continuously validate, evolve, and improve requirements and the
solution throughout the project
– Freeze design at the last responsible moment
Core
#1 #2
#3
34
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Complex Models Still Emerging
©KHass and Associates, Inc.
Source: Center for Strategic International Studies, Organizing for a Complex World, Developing Tomorrow’s
Defense and Net-Centric Systems, 2009 35
Combining elements of existing practices ◦ Iterative learning ◦ Adapting and evolving ◦ Experimenting ◦ Delayed decision-making
Experimenting with contemporary practices ◦ Late design freeze ◦ Built-in redundancy ◦ Lots of experimentation ◦ Prototypes for
multiple parallel solutions
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Challenges with Complex Models
• Knowing how long to keep your options open
• Building options into the approach without undue cost
• Bringing the right group of experts to discover, experiment, create, innovate
©KHass and Associates, Inc. 36
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Manage Complexity
Long-duration projects
Large, dispersed project teams
Fixed deadlines and inflexible demands
Ambiguous problems, opportunities, solutions
Volatile requirements
High visibility, strategic, multiple stakeholders
Large-scale organizational change
Risks, dependencies, external constraints
IT complexity 37
4. Manage Complexity Dimensions
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Radical Collaboration
Combining Disciplines Leads to Success
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Typical Questions • What is the value of business analysis and project management?
– Small project/adaptive model • 50% faster to market
• 25% more productive
• ¼ defects
– Business benefits realized/reported by BA • Value to customers
• Wealth to bottom line
• What to do when solution is selected before analysis begins? Re-do and validate:
– Business case
– Solution alternative analysis
• What about PMI and IIBA?
– PMI’s focus exclusively at project level on requirements
– IIBA’s focus much broader, more strategic, value-based embracing all disciplines that support business change
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