Strategic Project Management (Moving - away from a Shadow of PBO by Default)

1. Developing Expertise to Lead Change and TransformationSenior Leadership Development Programme (SLDP)

2. Strategic Project Management (Moving - away from a Shadow of PBO by Default) P D Rwelamila PhD, PrCPM, MIAPPM Professor of Project Management & Procurement Systems Graduate School of Business Leadership University of South Africa (UNISA)

3. What to Cover • Context – Forewords (4#) • Context – Executives/Foot soldiers • What is a PBO & Challenges in Practice? • Visiting the Project Coal-face • Linkage Between Projects & Strategy – Practical dilemmas • Project Management Maturity – How mature is your organization? • Internal Re-engineering - Strategic PM in action

4. Forewords (1) “Aligning the organization’s portfolio of projects to maximize their contributions to strategic objectives takes a highly coordinated effort. It requires more than the old "grenade over the wall"approach, in which the planning staff identifies and characterizes the project and then tosses it to an uninformed and uninvolvedproject managementgroupthat is supposed to complete the project. - everyone must be engaged with the project before charging ahead.” - Dinsmore & Rocha (2012)

5. “PM is no longer about the sequence of steps required to complete the project in time. It is about systematically incorporating the voice of the customer/or client (my emphasis), creating a disciplined way of prioritizing effort and resolving trade-offs, working concurrently on all aspects projects in multifunctional teams, and much more. ……….- in this case 80% of the costs are determined before they take over.” :Jones (2003): Lean Enterprise Research Centre, Cardiff Business School, UK Forewords (2)

6. “There are huge opportunities for eliminating wasted time and effort in almost every project . In manufacturing, Toyota estimate that only 5% of activities actually add value, 35% are necessary but do not add value, whilst the remaining 60% is pure waste – ‘muda’ in Japanese! By halving the effort in designing a new car, they show this ‘muda’ can be reduced by good project management. Every PM…has not only to manage their own project but seek ways of eliminating the ‘muda’ in their systems so they can do more for less, and more quickly next time!”:Jones (2003): Lean Enterprise Research Centre, Cardiff Business School, UK Forewords (3)

7. “ Successful public project requires bridging the gap between the organizationvision and the projects underway, which in turn calls for coordination among organization strategies, general project management, specific project alignment, and project implementation.” Dinsmore (1999) BRIDGING THE GAP BETWEEN ORGANIZATION STRATEGY & PROJECTS Foreword 4

8. Upstream Upstream Downstream Downstream Strategic Project Management Executive Management Interface between Project Link and Clients (internally and externally) and the focus to continuously ensuring appropriate and optimised solutions [Strategic emphasis; Core team & organisation; PMIS; Developing a PM; Becoming a learning organisation; Inter-organisational relations] ProjectLink in the midst of the Upstream and Downstream of Project Management Development Tactical Project Management The Project Manager and his/her Team’s Interface with stakeholders applying Project Management Best Practices Technical + Social Cultural Project PM The Project Manager and his/her Team’s Integration and Optimisation of the Required Project Resources (Technical) + Management (Social-cultural Issues)

9. A Project Based Organization (PBO) • : Characteristics (1) • management by projects must be an organisational strategy; • adoption of temporary organisations for the performance of complex processes; • it must manage a portfolio of different project types; • it must have specific permanent organisations to provide integrative functions; Do You Know Who You Are?

10. Do You Know Who You Are? • A Project Based Organization (PBO) • : Characteristics (2) • it must apply a ‘new management paradigm’ (lean management, total quality management (TQM), business process re-engineering and learning organisation); • it must have an explicit project management culture; and • it must perceive itself to be project oriented.

11. Project unlinked to coherent strategies Upper managers are unaware of the total number & scope of projects being undertaken Lip service to learning from projects (audits & close-out reports out of the equation) Window dressing project management information systems The core-team is very weak and chaotic PROJECT BASED ORGS. BY DEFAULT AS A NORM Default Project Based Organizations

12. The argument for postgraduate training in PM (generic or sector/industry specific) still mixed-up Training designers seem to believe in BoK regimes religiously Technical issues are considered above social-cultural aspects A TECHNICAL INCLINED TRAINING REGIME Inadequacy of PM Training: Half baked PMs?

13. 8 out of 10 project managers are accidental or have inadequate PM knowledge base Most public sector organizations are fundamentally project based, are PBO by default – characterized by archaic & fragmented systems Project management training is characterized by curricula falling short a significant number of project management fundamentals PROJECT MANAGEMENT POSTURING SEEMS TO DOMINATE Project Management A Cinderella Field?

14. Individuals are appointed as PMs because they have qualifications in the same field as the project’s core business Player and referee roles – a conflict recipe Perpetual competence challenges Understanding the social coalition dynamics (Overflowing IQ or Overflowing EQ or Balance IQ/EQ?) THE GROWING SYNDROME WITH ENTRENCHED DYNAMICS Accidental Project Managers – custodians

15. From a Linear Model to a Complex 3-Dimensional Maze –environment Features of a Project Project Management -Context & Concepts

16. Inputs & outputs Sector/Industry environment Country/Economy environment Global environment the need to understand the dynamics of environments A Project - Part of a Complex System(3-Dimensional Maze)

17. Cost Project stakeholders H&S +Env. Quality Utility Schedule Project & PBO forces Inputs Output(s) Sector/Industry forces Country/Economy forces Global Forces A 3-Dimensional maze –environment H&S – Health and Safety; Env. - Environment

18. Primary features: a project anatomy (life cycle) (a beginning and end, with a number of distinct phases in between) – linear model? a budget with an associated cash-flow activities that are essentially unique and non-repetitive use of resources, which may be from different departments & need co-ordinating a single point of responsibility (i.e. the project manager) team roles & relationships that are subject to change & need to be developed, defined & established Features of a Project

19. Accumulative Effort Total Project Life Cycle Time Plan Accomplish Phase 3 IMPLEMENTATION Execute (E) Set up • organisation • communications • Motivate team • Detail technical requirements • Establish: • work packages • detailed schedule • information control • systems • Procure goods and services • Execute work packages • Direct/monitor/forecast/ control: • scope, quality, time, cost • Resolve problems Phase 1 CONCEPT Conceive (C) • Gather data • Identify need • Establish • goals, objectives • basic economics, feasibility • stakeholders • risk level • potential team • Guesstimate resources • Identify alternatives • Present proposal • Obtain approval for next phase Phase 4 TERMINATION Finish (F) • Finalize product(s) • Review and accept • Transfer product responsibility • Evaluate project • Document results • Release / direct resources • Reassign project team Project Life-Cycle [generic] (developed from the PMBOK series. Wideman and Fellow, 1991, p111-2 & Rwelamila (2001 & 2002) Operation/ Use Phase 2 DEVELOPMENT Develop (D) • Appoint key team members • Conduct studies • Develop scope baseline: • end product (s) • equality standards • resources • activities • Establish: • master plan • WBS • policies and procedures • Assess risks • Confirm justification] • Present project brief • Obtain approval to proceed Phase 6 TRANSFER Finish (H) • Quality of Facility/ service • Evaluation process Phase 5 OWN & OPERATE Finish (G) • Project operate commercially • Project produces cash flow to pay lender’s debts interest and principal repayment. • Cost (operation & maintenance, etc) • Training?

20. Bridging the Gap Between Organisation Strategy & Projects – in the face of adversity!

21. Organizational Strategies – Organization strategies are arrived at through conventional strategic planning General Project Alignment – Once the strategic objectives are identified, successful strategic project alignment depends on establishing a fundamental interface between those objectives & each project’s specific setting. Activities that bridge the gap between strategic objectives & specific project planning are stakeholder management, prioritization, risk management organization-wide systems, & strategic project planning Most PBOs have poor communication systems – a good number of projects suffer from non provision of appropriate network & necessary data SYMPTOMS – OPPOSITE TO PROJECT CRITICAL FACTORS From Organizational Planning to Project Implementation

22. Developing & supporting core teams Organizing the Project Management effort Developing the Project Management information system DEVELOPING A CORE TEAM PROCESS, ORGANISING FOR PM & DEVELOPING A PM INFORMATION SYSTEM

23. The organisation of people into ad hoc groups takes advantage of bringing together individuals from different specialism/departments as needed for a project task the need to differentiate between ‘team’ & ‘group’ The Role of Project Core Teams (1)

24. A ‘group’ is simply a collection of people. A ‘team’ meets the following characteristics: the output of the group is greater than the sum of the outputs of the individuals; a greater range of options can be considered by exploiting differences in individual thought process; decision-making by team is likely to be better; more openness to taking risks, as the risk is shared between the team rather than carried by one individual; higher overall level of motivation as there is an inherent responsibility to others in the team & a desire no to let them down; and better support for the individuals within the team, who are more likely to be included in a greater range of activities than they would normally be exposed to, but without their having to work alone. The Role of Project Teams (2)

25. Why focus on the role of teamwork? to help the PM in the design & selection of the workgroup; to enable the monitoring of the degree to which the team is functioning effectively; and to provide feedback to the team to help improve effectiveness. The Role of Project Teams (3)

26. Life-cycle of Teams teams have various stages of developments: collection entrenchment resolution/accommodation synergy decline break-up using this knowledge, the organization can resist moving core team members once they are assigned The Role of Project Teams (4)

28. 9.2 Table Team life - cycle . Stage Characteristics a Collection The bringing together of individuals into group with a collective task or problem to solve. The participants have a d e gree of eagerness and initial enthusiasm and generally rely on the authority and hierarchy to provide a degree of certainty in this uncertain environment. They will use this initial phase establish themselves and find what is expected of them. to Entrenchment As the group starts work they begin to find out where each person stands on various issues. The entrenchment comes when people:; arrive with preconceived ideas as to how the project should be proceeding and are unwilling to be persuaded of the merits of allowing the group to decide on the course of action. This phase ca n be very destructive and is generally fairly unproductive . The reasons for this unproductiveness are issues such as disillusionment with the goals of the project, competition for power or attention within the group, or general confusion as the work being undertaken bears little relationship to the goals of the project. Resolution/ The disagreements begin to be resolved, and characteristics such as mutual accommodation trust, harmony, self - esteem and confidence are seen. This is where the team starts to put aside the negative social effects and move to being more productive. Synergy Based on Ansoff (1968), synergy is defined as when the output of the whole is greater than what would be obtained from the component parts, otherwise = + stated as 2 2 5. This is the peak of effectiveness of the team, leadership is shared, and there is a new mo tivation to complete the tasks at hand. Decline At some point the team will meet an event when its effectiveness starts to decline - this can be through h the nature of the task being undertaken not changing or the focus of the activities being allowed move towards a social group. to If Break - up this occurs naturally before the task is finished, there can be problems in getting a new team to take up the remaining work. They will be expected t o get 'up to speed' very quickly and have an additional pressure on them. Where the group finishes its · task and it is during one of the earlier stages of development, either in resolution or synergy, the effect s on future projects can be highly beneficial as the participants go away with good memories of the work they have done.

29. Personalities in teams understanding of the ways in which individuals behave in group situations the curriculum vitae & interview, though maligned, is still the normal mode for recruiting in most project environments The Role of Project Core Teams (5)

31. Effective Teamwork Project teamwork must make a positive contribution to the success of the project: the structure of the team & its composition are broken down into 3 basic categories - related to the appropriate or most likely phase in the project life-cycle how teams work? - the disintegrated group (no agreement between team members & decision process in turmoil); - the integrated team (there is complete consensus on all matters, but gone over the edge in terms of effectiveness) The Role of Project Core Teams (6)

34. Effective Teamwork - the internationalization & globalization environment (1) in the last 12 years there has been a massive increase in internationalization & globalization of business. This process has been institutionalized by various international agencies, such as: GATT (General Agreement on Tariffs & Trade) GATS (General Agreement of Trade & Services) WTO (World Trade Organisation) EU (European Union) NAFTA (North American Free Trade), etc. Project Core Teams – Beyond Comfort (7)

35. Internationalization & globalization (1) The culture shock! A PM + Team members as encapsulators? A PM + Team members as absconders? A PM + Team members as cosmopolitans? The Role of Project Core Teams (8)

36. Internationalization & globalization (2) The PM relocation transition curve: unreality fantasia interest acceptance of reality experimentation search integration The Role of Project Core Teams (9)

38. RELATIONSHIP BETWEEN LENGTH AND RIGOUR OF TRAINING AND CULTURAL FLUENCY REQUIRED

39. There is no ‘best’ kind of organisation structure - the most appropriate structure depends on the organization's goals, type of work, and environment As organizations grow or the environment changes, additional subdivisions and new groupings are implemented to better handle new situations & emerging problems. ORGANIZATION STRUCTURE

40. choice is determined by the situation, but even so is partly intuitive risks involved in the project! cultural preferences of the parent organisation CHOOSING AN ORGANISATIONAL FORM (STRUCTURING PROJECTS)

41. the project is separated from the rest of the parent system one individual, the programme/project manager , maintains complete line authority over the entire project Pure Project (Dedicated/or Fully projectized) Organisation(1) Fig.2-8

43. Merits: control over resources responsiveness to customers Demerits cost-inefficiency low level of knowledge transfer among projects Pure Project Organisation (2)

44. nearest to the traditional functional hierarchy where the PM co-ordinates the resources across functional departments little formal authority to the PM to manage the project, control resources, or make decisions suitable for nurturing smaller projects that are not yet stable under the wing of an existing dept. (later allow them to have autonomy when ready) Functional Project / or Mixed Organisational System (1) Fig.2-7

46. Merits: no duplication of activities functional excellence Demerits: insularity slow response time lack of customers focus Functional Project / or Mixed Organisational System (2)

47. a combination of pure & functional project the topology of the matrix structure has same format as a mathematical matrix (vertical lines represent the functional dept.’s responsibility & authority, while horizontal lines represent the project’s responsibility & authority) there is no single executive to whom PMs generally report Matrix Project (1) Fig.2-11

49. Merits: efficient utilisation of resources functional expertise available to all projects increased learning & knowledge transfer improved communication & customer focus Demerits: dual reporting relationships need for balance of power Matrix Organisation(2)

50. The positive & negative features of alternative organisational forms & their variants (hybrids) need to be understood by top management so that they can select the organisational form most suitable for their situation Project Organisation (Comments)