Needs Identification Workshop Summary of Results

1. Needs Identification WorkshopSummary of Results PMI Asia Pacific PMI Congress Sunday, February 26, 2006

2. Session Objectives • Understand key challenges that organizations face in successfully completing projects (in AP region) • Understand root causes of these challenges • Identify critical project management-related needs of practitioners and organizations regarding these challenges

3. Session Outline • Problem definition: Open discussion on challenges facing organizations • Problem exploration: Panel discussion of root causes of challenges • Specific needs: Team breakouts on “needs”

4. Challenges

5. Challenges Identified • Scope creep • Impact of company political issues on projects • Global PM issues (communication, culture, etc) • PM process implementation and usage (within org) • Conflicts between cultural issues and professional practice (in risk, scope, schedule mgmt) • Vendor management • Managing multitudes of new project delivery methods • Defining costs and cost change acceptance Q: What challenges are impacting the successful completion of projects within organizations?

6. Root Causes of Challenges

7. Scope Creep • Cultural issues of scope creep more serious in AP • Business needs changes • Lack of scope definition • Only macro-level definition • Desire to start project quickly • Inability of salespeople to say “no” • Nature of contracts in AP • “Contract is a living document” • Handshake vs. “western” closed contract • Lack of customers education on requirement definition/mgmt • Customers • Customer views of scope creep • Increasing requirements of functionality • Blame the client

8. Political Issues • Changing priorities of businesses • Privately held nature of AP companies • Conflicting stakeholder issues/priorities • Communication gaps between senior/junior mgmt • Resource allocation, communication, priority gaps from top mgmt to middle mgmt. • Corporate acquisitions/change in senior mgmt

9. Global PM Issues • Multi-cultural project teams • Communication issues when not face-to-face • Reticence to challenge scope creep • Lack of local knowledge of how to get project completed in region • Face-to-face communication is quick/not detailed despite fact that oral communication important in AP • Comprehension issues • Lack of trust • Political instability of relations between countries of team members • Level of involvement of government authorities in project • Ethics of local society (e.g., Bribery) • Lack of common PM jargon • Lack of standards for PM across regions • Large diversity of cultures in AP region (hundreds of languages) • Too many assumptions between cultures (can’t assume things are same from culture-to-culture) • Religion and business conflicts (when they collide) • AP concept that only a foreigner (white face/consultant) knows answers

10. PM Process Implementation • Resistance to change • Resistance because process is driven by government and/or customer (top down drivers) • Lack of perceived value of process (NIH) • Partially due to lack of education on PM • Desire to not be restricted by process • Some do not believe that a structured process is best • “we just need hard work to complete projects” • Lack of understanding of need for process • Want to see immediate benefits

11. Defining Costs and Cost Change Acceptance • Lack of available details when creating cost estimates • Immature tools/techniques for cost est. • Differing methods for creating cost est. • Cost+ vs. value add, etc. (buyer / supplier disconnect) • Lack of scope definition • Lack of standard for cost development • Industry/functional area specific • High tolerance for project risk • Lack of tracking of history of cost accuracy • Separation of sales and delivery responsibilities

12. Needs

13. Needs • Scope creep – technical and human • Team must baseline scope, freeze requirements before presenting cost to client • PM must be trained in assertiveness, ability to say “no” (to creep) • Clients must be trained on requirement definition • Impact of political issues • Change org structure to empower PMs (matrix vs. projectized) • Establish portfolio managers to minimize priority changes and ensure authority at PM level Q: What is needed (from an organizational standpoint or a practitioner standpoint) to help overcome these challenges?

14. Needs • Global PM issues & PM process implementation • Employee education and training of cultural aspects of PM and PM processes • Training must have “real-world” applicability • Multiple new projects • Set business goals, prioritize projects according to these goals • Look at multiple views of portfolios (vertical and horizontal integration) Q: What is needed (from an organizational standpoint or a practitioner standpoint) to help overcome these challenges?

15. Needs • Defining costs • Endorse “design-to-cost” approach - There will always be changes to scope, cost methods must realize this/incorporate into process • Front-end = Open-ended • Back-end = Firm price • Vendor management • Build trust-based relationships with vendors • Agree on content, context and processes before proceeding • Agree on PM practices and change management process before proceeding • Clearly define roles and responsibilities Q: What is needed (from an organizational standpoint or a practitioner standpoint) to help overcome these challenges?

16. Needs • Cultural conflicts in professional practice • Specifically plan for risks associated with cultural aspects of PM • Create a role specifically for this (to plan for and react to problems) • Educate top management on the need for this role/activity • Educate in multiculturalaspects of PM in practical context • Educate top stakeholders • Their specific role in project • Respect for professional ethics to understand PM’s role • Understand local culture as it pertains to project • Modify standards to fit the culture • Communication suited to culture • Document lessons learned about cultural aspects of PM Q: What is needed (from an organizational standpoint or a practitioner standpoint) to help overcome these challenges?