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What CEOs Must Demand To Compete and Collaborate in 2005

What CEOs Must Demand To Compete and Collaborate in 2005. Russell D. Archibald, PMP PMI Fellow 2002 PMI Region 6 PM Conference & Expo Houston, TX May 9-11, 2002. Unleashing the Full Power of Project Management. In the Internet Age. Presentation Objectives:.

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What CEOs Must Demand To Compete and Collaborate in 2005

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  1. What CEOs Must Demand To Compete and Collaborate in 2005 Russell D. Archibald, PMP PMI Fellow 2002 PMI Region 6 PM Conference & Expo Houston, TX May 9-11, 2002

  2. Unleashing the Full Power of Project Management In the Internet Age 2002 PMI PM Conference & Expo - Archibald

  3. Presentation Objectives: • To provide a road map to CEOs and senior executives for achieving the full power of project management. • To help PM professionals show their senior managers where the development of project management should be going. 2002 PMI PM Conference & Expo - Archibald

  4. My Point of View • Considering the total enterprise. • Focusing on the essence of effective project management. • With a perspective of 50 years as project engineer, project manager, corporate executive, consultant, author, and teacher in project management. 2002 PMI PM Conference & Expo - Archibald

  5. CEOs’ Greatest Challenges • Changes in competition 41% • Impact of the Internet 38 • Industry consolidation 37 • Downward pressure on prices 33 • Skill shortages 32 PC Magazine, June 12, 2001 – 506 companies >$5bn sales 2002 PMI PM Conference & Expo - Archibald

  6. Challenges Posed By the Internet • Transform or Perish • Exploit It to Grow and Prosper • What changes to make? • How to compete? • How to collaborate? • How to match Internet Speed of competitors? • How to prioritize and manage strategies and projects? • One Way: Unleash your project management! 2002 PMI PM Conference & Expo - Archibald

  7. CEO DemandsTo Unleash Full PM Power: Four general demands -- THAT: • Project portfolio management supports the growth strategies. • Coherent PM processes exist & are understood. • PM processes & tools are fully integrated. • Internet & WWW are used properly for PM. 2002 PMI PM Conference & Expo - Archibald

  8. SpecificCEO Demands: 31 specific demands are presented relating to: • Strategic direction of the company through project management. • The project management processes. • The three basic project management principles. • The impact of the Internet on organizations. 2002 PMI PM Conference & Expo - Archibald

  9. Strategic management of growth requires: • A vision of the future. • Consensus and commitment. • Documentation of key objectives & strategies. • Execution of specific projects to achieve the objectives. • Management of Project Portfolios. 2002 PMI PM Conference & Expo - Archibald

  10. The Hierarchy of Objectives and Strategies • Objectives are descriptions of where we want to go. • Strategies are statements of how we are going to get there. • Strategies are carried out and objectives are reached through Execution of projects. 2002 PMI PM Conference & Expo - Archibald

  11. Objectives of Strategic Project Management 1. To assure that each project supports higher level strategies and objectives and contains acceptable risks: • Competitive, technical, cost, schedule 2. To plan, control and lead each project with all other projects so each will meet its strategic objectives: • Specified results on time and within budget 2002 PMI PM Conference & Expo - Archibald

  12. Specific CEO Demands: 1. Every project clearly supports an approved corporate strategic objective. 2. Each project’s risks are evaluated and proactively managed using currently available methods and systems. 3. All projects are evaluated, prioritized and approved using the same corporate criteria. 2002 PMI PM Conference & Expo - Archibald

  13. Project Portfolio Management • Projects are investments. • They must be managed like investments: on a portfolio basis. • ‘Multi-project’ and ‘program management’ are no longer adequate. • “Project Portfolio Steering Group.” 2002 PMI PM Conference & Expo - Archibald

  14. Portfolio vs Multi-Project Mgt.Dye & Pennypacker, PMI 2000

  15. Portfolio vs Multi-Project Mgt.Dye & Pennypacker, PMI 2000

  16. The Project Portfolio Management Process: 12 Steps • Define the project portfolios required. • Define project categories/types. • Identify and group projects by type within each portfolio. • Validate each project with strategic objectives. 2002 PMI PM Conference & Expo - Archibald

  17. The Project Portfolio Management Process Steps (cont’d) • Prioritize projects within programs and portfolios. • Develop Project Portfolio Master Schedules. • Establish/maintain key resources data bank. • Allocate resources to programs & projects. 2002 PMI PM Conference & Expo - Archibald

  18. The Project Portfolio Management Process Steps (cont’d) • Compare financial needs with availability. • Decide how to handle shortfalls and approve list of funded projects. • Plan, authorize and manage each project using the PM Process. • Periodically re-prioritize, re-allocate resources and re-schedule all projects. 2002 PMI PM Conference & Expo - Archibald

  19. Verify Your Personal Priorities

  20. The Project Management Process For each project type/category the PM process: • Defines the project life cycle. • Provides guidelines for risk analysis, planning and control. • Specifies the project management information systems and tools to be used. • Specifies the planning, authorizing, controlling and reporting methods and documents to be used. 2002 PMI PM Conference & Expo - Archibald

  21. The Project Management Process (cont’d) • Identifies the key roles and defines responsibilities and authority for project and functional management. • Specifies escalation procedures for un-resolved issues. • Format: flow chart with narrative descriptions and references. 2002 PMI PM Conference & Expo - Archibald

  22. CEO Demands: 4. The company’s project management processes be documented in a coherent, easily understood manner. 5. All projects be managed within their appropriate, defined portfolios. 2002 PMI PM Conference & Expo - Archibald

  23. Three Basic PM Principles 1. Assignment of integrative responsibilities. 2. Application of integrative and predictive project planning and control systems. 3. Integrated project team-working. 2002 PMI PM Conference & Expo - Archibald

  24. 1. The Key Integrative Roles • Executive level • The General Manager • Project Portfolio Steering Group • The Project Sponsor • Multi-Project Level • Manager (VP, Director, etc.) of PM • Multi-project or Program Manager 2002 PMI PM Conference & Expo - Archibald

  25. The Key Integrative Roles (cont’d) • Project Level • The Project Manager • Functional/Project Contributor Level • Department Managers • Functional Project Leaders • Work Package/Task Leaders 2002 PMI PM Conference & Expo - Archibald

  26. General Manager’s PM Role • Link the project portfolio(s) to the overall business strategies. • Oversee the overall PM process. • Monitor integration of the PM process with all other aspects of the company. • Ensure timely availability of money, people and other resources needed for all authorized projects. 2002 PMI PM Conference & Expo - Archibald

  27. Project Portfolio Steering Group • Approves the Project Portfolio Management Process. • Approves project selection, prioritization and funding of projects within each portfolio. • Monitors the overall environment and provides strategic direction to Project Sponsors. 2002 PMI PM Conference & Expo - Archibald

  28. The Project Sponsor’s Role • Integrates ongoing strategic direction of his/her project with ongoing company operations. • Provides this direction to/through the project manager. 2002 PMI PM Conference & Expo - Archibald

  29. Manager of Project Management • Integrates work on all projects in the portfolio(s). • Integrates and directs development and use of project management methods and tools on all projects. • Develops project managers. • Manages the project management “home”: PMO 2002 PMI PM Conference & Expo - Archibald

  30. CEO Demands: 6. Roles clearly assigned. 7. GM role understood. 8. Project Sponsors appointed . 9. Mgr. of PM appointed. 10. PM home established. 2002 PMI PM Conference & Expo - Archibald

  31. CEO Demands: 11. Train Project Managers. 12. PMs respect functional lines of authority. 13. Functional Mgrs respect project lines of authority. 2002 PMI PM Conference & Expo - Archibald

  32. 2. Integrative & Predictive Project Planning and Control • Each project is planned and controlled by integrating: • All contributing functional areas. • All life cycle phases. • All elements of information: Schedule, Cost, Technical, Risk. • Using Web-based PM software systems. 2002 PMI PM Conference & Expo - Archibald

  33. CEO Demands: 14. PM Process is adhered to. 15. All P&C systems are integrated. 16. Only one P P&C system used. 17. Earned value applied. 2002 PMI PM Conference & Expo - Archibald

  34. CEO Demands: 18. PM Process describes the P P&C system. 19. All modules in next slide are included in the PM Process and P P&C System. 2002 PMI PM Conference & Expo - Archibald

  35. PM Information & Control System

  36. CEO Demands: 20. All planning, authorizing, controlling and reporting documents be produced by the supporting computer software systems (with authorized exceptions). [See Table 4] 2002 PMI PM Conference & Expo - Archibald

  37. How Much Detail? • Always a problem; resolve by: • Systematic, hierarchical project breakdown: the Project/WBS • Avoid duplicating detail in existing systems: manage the project interfaces. 2002 PMI PM Conference & Expo - Archibald

  38. CEO Demands: 21. The concepts of the P/WBS and project interface management be applied to achieve a sustainable level of detail in PP&C documents. 2002 PMI PM Conference & Expo - Archibald

  39. 3. Integrated Project Team-Working • Bring multiple disciplines together from diverse organizations to collaborate creatively. • Understand and commit to project objectives. • Develop agreed plans, schedules & budgets. • Achieve outstanding results. 2002 PMI PM Conference & Expo - Archibald

  40. The 5 Requirements for Good Team-working • Team member list, defined responsibilities. • Clear, well-understood objectives. • An achievable project plan and schedule. • Reasonable rules of the game. • Leadership by the project manager. 2002 PMI PM Conference & Expo - Archibald

  41. CEO Demands: 22. A complete team list. 23. The team defines project objectives in their own terms. 24. Team has hard & soft success criteria. 2002 PMI PM Conference & Expo - Archibald

  42. CEO Demands: 25. Team criteria for “excellence”. 26. Achievable team project plan. 27. Rules of the game defined. 28. Leadership training for Project Manager. 2002 PMI PM Conference & Expo - Archibald

  43. CEO Demands: 29. A post-completion appraisal be performed on every project: - Lessons learned, - Improve PM process, practices and procedures. 2002 PMI PM Conference & Expo - Archibald

  44. CEO Demands: 30. The PM discipline is fully integrated with affected parts of the organization. 2002 PMI PM Conference & Expo - Archibald

  45. Using the Internet to Respond to Its Challenges • Enable improved collaboration. • Provide risk and issue tracking, and escalation processes. • Empower staff members. • Automate the PM processes. 2002 PMI PM Conference & Expo - Archibald

  46. Using the Internet to Respond to Its Challenges (cont’d) • Enable resource allocation across the entire enterprise. • Enable tracking and evaluation of project scope, schedule, cost and risk. • Allow integration of PM processes with all other business systems. 2002 PMI PM Conference & Expo - Archibald

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