2017 Design Innovation Project Management
- 2. Definitions • Project – Temporary organisation set up to create a unique product, service or result • Project Management – Managing the project!
- 4. Future of project management • From the lifecycle model to theories of complexity • From instrumental processes to social processes • From product creation to value creation • From narrow to broad conceptualizations • From trained technicians to reflective practitioners 4Dr. Mikko Koria 24.11.2010 Extreme Projects
- 5. Project oriented societies SWE UK NOR IRL DEN AUT HUN ROM LAT POS 56 55 46 45 42 37 34 23 22 POS= Project orientation in societies 5 Thesis: Societies are becoming more project-oriented. Projects and programs are applied as temporary organization in the industry; but also in new areas such as schools, associations, small municipalities, and even, families. Therefore, projects and programs, and project and program management are not just a micro-economic concern, but also a macro-economic one. Source: Garais, 2002
- 6. Basic Concepts • Operations, programmes, projects • Benefits, outcomes, outputs • Project phases • PM processes • PM areas
- 7. Project Management areas I Three key elements • Scope: what are we doing? • Time: how much time needed? • Cost: money and human resource ?
- 8. Project Management areas II Additional elements • Quality mgmt: appropriate? • HR: how much and what kind? • Communication: stakeholders? • Risk management: know proactively? • Procurement management
- 9. Complexity: tasks & environment Increasing complexity of the environment (s) Increasing complexity of the (set of) tasks Task orientation Role orientation Project comfort zone Programme comfort zone Organisational orientation
- 10. Theory of projects? • Task orientation – Assumes perfect knowledge and is fully rational and informed (Homo Economicus). – Critiqued as poorly defined, impractical, a myth, benefits vague? • Organisational orientation – Relationships: agency theory – Is not immune to conflict between parties, control aspects fundamental • Role orientation – Capabilities of actors – Goals/benefits may remain vague 10
- 11. Management by projects • Management by projects offers: – Organisational flexibility – Decentralized responsibility – Stronger focus on complex issues – Goal oriented problem solving – Better quality solutions & wider consensus – Individual & organisational learning 11
- 12. Management by projects • Management by projects – Projects strategically important – Autonomy of project in terms of structure – Base organisation creates the visions & strategies of projects – Continuous organisational development vital – Project management a diffused competence, not specialized know-how 12
- 13. Management by projects • Programme vs project management – Benefits vs efficiency • Base organisation’s control – Manages the strategy of portfolio of programs, projects, reporting, community of practice, management offices • Standardisation – Within patterns create efficiencies, gives control • Project management maturity – Achieving the optimal level of development 13
- 14. Programmes & projects Strategic Level Operation/ Program Management (Benefits, approach) Operational Level Project Management (outputs, efficiency) Identifying a program Governing a program Closing a program Initiating ClosingPlanning Executing Controlling Managing the Portfolio Delivering Benefits Defining a program Program manager Project manager
- 17. Shenhar & Dvir (2007) NTCP Diamond adapted to recovery Novelty Derivative Adapted Koria 2008 Very fast apartment block relocation project for squatters Complexity Pace Technology Platform Breakthrough Array System Assembly Regular Fast Time-critical High-tech Medium-tech Low-tech Self-help housing project on own land Large and complex shelter programme
- 20. New Product/Service (NPD/NSD) development process PHASE: FOCUS ON: Invention Planning Offering Development Commercialization Creativity Decision Making Speed Costs LAUNCH Business Process Development Roadmaps Business Intelligence, Foresight Strategy Competence Cross- functional teams Source: Innovation Management Institute, Aalto University The front end The front end of NPD/NSD 20
- 21. Project as an assignment • The rationale of a project? Why should a base organisation set up a project? – Change: adapt to externalities, enhance competitiveness and/or earnings, improve control – Stability: financial/social costs of change are high, sustainable advantage, predictability, difficult of change. 21
- 22. Project as change • Lewin’s change model (1947) – Unfreezing – Moving – Refreezing • Y model (Armanakis & Bedeian, 1999) – Describe the current situation – Describe the desired situation – Analyse and prioritize needs of change – Look for alternatives, make action plan – Get approvals, implement for action plan – Describe and evaluate the outcome 22
- 23. Base organization change • Mission based activities • Management activities • Administrative and technical support activities • Resistance to change is: – Emotional – Cognitive – Intentional 23
- 24. Time in projects • Three levels: – Organisation – Team – Individual • Different ideas of time – Cyclical, linear, alternating back and forth • Different ways of distributing activities in time – Conventional network planning – Polychonic (South Europe, South America, south –East Asia) or monochronic (UK, USA) – Entrainment of process (sequencing, synchronicity) 24
- 25. 3. Foundations of projects • In change oriented projects, three key issues emerge: – How of should base organisation initiate change (change strategy)? – What should the base organisation look like in the future? – How should project work be done (implementing strategy)? 25
- 26. Strategies affecting projects • Change strategy 1 : punctuated equilibrium (Gould & Eldridge, 1977; Romanelli & Tushman, 1994) – Evolution is not linear, leaps and bound exist, but a repeated patterns of relative stability punctuated by intensive activity – Defensive strategy, change is put until last moment • Change strategy 2: event / time pacing (Brown & Eisenhardt, 1997, 1998) – Event pacing takes change cues from the environment – Time pacing from predetermined cycles – Proactive, ongoing constant change, change an obsession 26
- 27. Uncertainty and projects • Lack of information • Lack of knowledge • Lack of control – Operational or task based uncertainty – Contextual / environmental uncertainty – Acts of god • Unknown unknowns • Loch et al (2006) propose that deep uncertainty can only be managed by learning and experimenting 27
- 29. Stakeholders in projects • Stakeholder power forces project to do something it would not do otherwise – Coercive power – Utilitarian power – Normative power • Stakeholder legitimacy in terms of norms and values – Individual – Organisation – Society • Stakeholder urgency; demands of immediate response – Time sensitivity – Criticality 29
- 30. Establishing the project Two issues above everything else: • The business case: the reason/rationale why the base organisation wishes to establish the project – The expected changes – The contribution of these changes – Responsibilities – Expected impact/value/benefits of project • The project mandate: the assignment that the base organisation gives to the project – Naming of project – Identify project owners, governance and managers – Background – Mission – Goals, aims; what the project is expected to achieve, success criteria – Scope and delimitations – Project boundaries 30
- 31. 4. Planning projects • Collective effort – Widens available expertise & experience – Useful also for stakeholder management and ownership of projects • Dilemma of project planning – Decisionmaking on incomplete knowledge • Tiered planning: three levels – Strategic: making the desired outcomes – Tactical: what outputs do we want to achieve – Operational: solving how to get the outputs 31
- 32. Dilemma of project planning 32 Source: Andersen, 2008, p. 82
- 33. Project start-up • Project start-up activities must achieve an common understanding of project – Discussions between project owner and PM – Initial planning and organising of the project – Start-up seminar, kick-off – Written confirmation of agreements on project mission, goals, plans, organisation, control – Training participants in project related skills 33
- 34. Milestones • Basic units of project plans – Anticipates what a project is supposed to achieve by pre-set dates – Need indicators of achievement – Connext project goals – Act as control stations in projects – Must be logically linked to each other: i.e. on the same continuum, or result path – Linked to time scheduling, dteailed planning must exist between milestones 34
- 35. 5. Organizing projects • Organizational nature – Action organizations generating results in terms of good, services, through often single, focused action rationality. – Political organizations allow for multiple rationalities, and views, aims, conflicts. • Four main approaches to separate politics from action – By different organizations – By different environments – At different times – As different topics 35
- 36. 6. Controlling projects • Describe current status • Assess degree of deviation between current status and plans • Establish causes of deviation • Determine corrective measures • Implement 36
- 37. 7. Leadership and projects • Six directions of attention to relations – Upwards: with owners – Outwards: with end users – Downwards: with project team – Inwards: own performance – Forwards: planning – Backwards: control 37
- 38. Leadership styles of PMs • Management is about doing things right • Leadership is about doing the right things • Streams of leadership theory – Importance of leaders personality – Importance of behaviour – Importance of power – Importance of context – many/all of the above! 38
- 42. Key issues
- 43. Strategy 1: Planning • Management of a single project • Execute plan and business model toward goal • Identify and manage risk • Learn and update within project • Conventional project management techniques and training apply
- 45. Strategy 2: Adaptation • Management of a project network • Plan as much as possible • Develop a joint business model • Create a common vision between stakeholders, political process • Adapt to others • Conventional project management techniques and training partly useful
- 47. Strategy 3: Learning • Management of a project-based firm • Develop processes and protocols through learning from serial projects • Adapt business model incrementally to changing environment • Conventional project management techniques and training useful in the individual projects, not in the whole business
- 49. Strategy 4: Selectionism • Management of a business network • Concurrent evolution of alternatives • Business model experimentation in ecosystem • Emerging responses to unknown unknowns • Conventional project management techniques and training useless