![Characteristics Good governance Optimal process – not too little, not too much Adds the costs of fire prevention [doing best practice project management] Improves predictability Repeatable Comparing projects enable informed decision making Ensures strategic alignment Dependencies clear Change is controlled Success can be measured Winging it No process Fire fighting The leap of faith – trust me I can do it Pet projects prevail Decisions made in silos Subject to surprises when things go wrong Change is normal – we don’t need no baseline! I said you could trust me! PHEW!](https://image.slidesharecdn.com/austerityslides6v3app-12916401423074-phpapp02/85/Austerity-Implications-for-Project-Management-15-320.jpg)
![New way Note: this is just one way of viewing a portfolio [diagram courtesy of ChangeDirector] Cancel or Suspend Decisions Reject or Defer Decision Go Decisions Accelerate Decision](https://image.slidesharecdn.com/austerityslides6v3app-12916401423074-phpapp02/85/Austerity-Implications-for-Project-Management-19-320.jpg)
![Exercise Starting position How many projects are there in your portfolio? How much money will it cost to deliver this year? Revised position Describe what effect this will have [i.e. changes to plan/strategy] Tell me how you will make the decision about which projects to do in the future? What changed?](https://image.slidesharecdn.com/austerityslides6v3app-12916401423074-phpapp02/85/Austerity-Implications-for-Project-Management-26-320.jpg)
![Contacts Contact Donnie MacNicol t +44 1932 589 259 m +44 7799 766238 e [email_address] w www.teamanimation.co.uk Contact Andy Murray t +44 8451 304861 f +44 871 750 3386 e [email_address] w www.outperform.co.uk © Outperform UK Ltd www.outperform.co.uk](https://image.slidesharecdn.com/austerityslides6v3app-12916401423074-phpapp02/85/Austerity-Implications-for-Project-Management-53-320.jpg)
Austerity Implications for Project Management
- 1. Welcome to 71 Fenchurch Street Project Management in the Age of Austerity
- 2. Project Management in the Age of Austerity Is project management a cost to be reduced or an enabler for cost reduction? © Outperform UK Ltd & Team Animation Ltd
- 3. Austerity Implications What is austerity? a government policy of deficit-cutting, lower spending, and a reduction in the amount of benefits and public services provided What is affected? Government departmental budgets generally Government development/infrastructure projects and welfare spending specifically Suppliers who sell to Government The economy generally About the debate We provide 4 different perspectives. There are many others Presentations are a catalyst to the debate We will capture the output and make available as an article
- 4. Agenda 0800 – 0830 Registration & breakfast 0830 – 0845 Introduction 0845 – 0900 Strategic context 0900 – 0915 Project culling 0915 – 0945 Debate - portfolio decision making? 0945 – 1000 Cost of project management 1000 – 1015 Culture and leadership implications 1015 – 1045 Debate – cost or enabler? 1045 – 1100 Summary 1100 – 1130 Optional Tour
- 6. Strategic Context Trevor Band Team Animation
- 7. Can Today’s Austerity = Future Opportunity ? Projects Environment Strategy Adapt Perform Understand
- 8. What to Adapt? Organisational Leadership Culture Capability Ways of Working processes, methods, tools, techniques, templates
- 9. Decision-Driven Organisation “ Is there anything more important to the success of a project than making good decisions?” Schuyler 2001 “ Ultimately a company’s value is no more (and no less) than the sum of the decisions it makes and executes” Harvard Business Review June 2010
- 10. People Business Process Architecture Systems Leadership Accountability Organisational Design & Culture MANAGED CHANGE External Best Practice ‘ AUSTERITY ADAPTATION' Decisions, Decisions, Decisions
- 11. Analysing Decision-Making SHAREHOLDERS STAKEHOLDERS What are the value and cost drivers in your organisation? What critical decisions determine value and cost? What accountabilities are needed to make and execute decisions? Portfolio Programmes Projects Business As Usual
- 12. Business Strategy Delivery Strategy PPM Requirements Developing Understanding Adaptation Road Map
- 13. Business Strategy Delivery Strategy PPM Requirements Adaptation Road Map Vision & Objectives Portfolio Management PM Code of Practice new PM TM Best Practice Benchmarking: being informed to make and execute PPM decisions faster and better than the competition Developing Understanding
- 14. Portfolio Alignment Mike Ward Director, Outperform ... is that “project culling”?
- 15. Characteristics Good governance Optimal process – not too little, not too much Adds the costs of fire prevention [doing best practice project management] Improves predictability Repeatable Comparing projects enable informed decision making Ensures strategic alignment Dependencies clear Change is controlled Success can be measured Winging it No process Fire fighting The leap of faith – trust me I can do it Pet projects prevail Decisions made in silos Subject to surprises when things go wrong Change is normal – we don’t need no baseline! I said you could trust me! PHEW!
- 16. Do you know all the answers? Are we on track to deliver our strategy? Executive Have we got enough resources to do this? Line Manager or Stakeholder What’s the impact on the benefit plan if we change the project’s timescale? Benefits or Business Change Manager Project or Programme Manager What are the earliest and latest completion times? How do the projects contribute to the objectives Portfolio Manager
- 17. Portfolio appraisal decisions Existing projects Cancel need to make safe and/or salvage work in progress Suspend as above but leave in a position such that it can easily be restarted Carry on And keep monitoring Accelerate for existing projects yielding high returns at low cost New projects Reject (never start) Defer (not now) Go (now)
- 18. Prioritisation Dimensions Strategic Fit Business Value Resources Risk Weighting 25% 40% 20% 15% But don’t do this!
- 19. New way Note: this is just one way of viewing a portfolio [diagram courtesy of ChangeDirector] Cancel or Suspend Decisions Reject or Defer Decision Go Decisions Accelerate Decision
- 21. Programme Analysis Table Generated using ChangeDirector ® Software
- 23. Presenting the results Put your best PM on this project! Generated using ChangeDirector ® Software
- 24. Mike’s five principles for a successful portfolio office Define who you are Vision/mission Internal/External/Today/Tomorrow Get control of the data List of projects Governance & assurance to make sure the data is “real” Relate the projects and programmes to the business strategy Define how this will be done Understand the priority Define the portfolio office processes Approvals/Escalation/Reporting/Benefits Management Rules of engagement Define success Metrics, Measures, Indicators of Success, Key Performance Indicators Portfolio Office success metrics
- 25. Informed decision making Requires clear understanding of strategic objectives, corporate priorities and measurement systems transparency of analysis confidence in forecasts timely, efficient and effective reporting Contribution of changes to strategy Team work
- 26. Exercise Starting position How many projects are there in your portfolio? How much money will it cost to deliver this year? Revised position Describe what effect this will have [i.e. changes to plan/strategy] Tell me how you will make the decision about which projects to do in the future? What changed?
- 27. Cost of project management Andy Murray Director, Outperform PRINCE2 2009 Lead Author
- 28. Cost of project management Cost of managing a project Project Board Project Manager Project Support Risk Budget Cost of failure Rework Cost overrun Time overrun Under-delivery Poor outputs Benefits not realised / aligned Consequential costs / losses Cost of managing projects Centre of Excellence Competency Development Tools Methods PMO Support Monitoring Reporting Portfolio Office Evaluation Assurance
- 29. Cost saving options Reduce number of projects Reduce cost of managing a project Reduce cost of managing projects Reduce cost of failure Improve performance These are related!
- 30. Cost of project management v performance Process capability as indicated by maturity levels
- 31. Investing in capability © Outperform UK Ltd & Team Animation Ltd Individual Team Organisation Behavioural Interpersonal skills Team dynamics Culture Technical Techniques Methods Frameworks Contextual Domain expertise Lifecycle models Strategic planning
- 32. Investing in capability – what can help? Individual Team Organisation Behavioural Psychometric and 360’s (e.g. Myers Brigs) Intra-personal development Belbin / ColourWorks / SDI Inter-personal development including team learning Developing shared values Corporate leadership Incentive schemes Technical APM BoK / PMI’s PMBoK ISO21500 (2012) PRINCE2 Atern (Agile) Managing Successful Programmes (MSP) Portfolio, Programme and Project Offices (P3O) Contextual Domain specific knowledge and experience Lifecycle models (e.g. product development, policy development, etc) OGC Gateway Portfolio Management Guide (MoP)
- 33. If you have invested in PRINCE2... Individual Team Organisation Behavioural Sign-posts the topic Sign-posts the topic Sign-posts the topic Technical Partially addressed Fully addressed Sign-posts the topic Contextual Sign-posts the topic Partially addressed Sign-posts the topic
- 34. Investing in capability – what can help? Individual Team Organisation Behavioural Desktop tools (e.g. MS Office, MS Project) Collaboration tools (e.g. Sharepoint, Groove, Project in a Box, Principal Toolbox, LiveLink) Enterprise tools for resource management, portfolio analysis, status dashboards, finance (e.g. PlanView, Primavera, Change Director, Oracle Projects) Technical Contextual
- 35. Summary How project management can help with austerity... Contribution = Increased performance + reduced cost of failure + lower cost of projects - cost of project management What does this equation look like for your organisation? Where’s the current pain and where’s the potential gain?
- 36. Cultural and Leadership Implications Donnie MacNicol Director, Team Animation Chair, People SIG (APM)
- 37. “ Is project management a cost to be reduced or an enabler for cost reduction?” Dependent on your perspective: If “cost to be reduced” then P3M not linked to strategy, not seen as a value driver, not part of the organisational culture, not strong leadership in place – ineffective use If “an enabler for cost reduction” then signifies that P3M is understood, linked to achieving the organisations strategy, is seen as a value driver, is part of the organisational culture, has strong leadership (at CXO level and at programme level) – effective use New Question - Is the leadership tackling the underlying cultural reasons for the ineffective use of P3M? Who are they? Note: Effective P3M is one of many enablers to value creation in an organisation – it can support others such as innovation
- 38. What is Organisational Culture? Organisational culture represents the values and beliefs of the multiple functions and groups making up the organisation - “It’s the way things are done around here” way people work with each other shapes the way decisions are made / the decisions that are made impacts upon peoples’ attitude to change influences the types of change undertakes / change made influences the way the organisation interacts with stakeholders, partners and customers impacts the style of leadership and followership. P3M is impacted by, and impacts on each of the above
- 39. What Shapes Culture? Copyright Kenexa® 2010
- 40. Cultural challenges to the effective use of P3M P3M must be crafted to fit with an organisations strategy and culture - provides value by delivering the necessary change There are inherent challenges for most organisations wrt: Adopting / Maintaining / Maturing / Sustaining P3M Typically not identified OR managed Underlying cause of project failure Adoption must be run as a holistic change programme: behavioural and contextual, not just technical at an organisational as well as individual and team level Kingston Business School Organisational Project Management Initiative
- 41. Cultural Challenges to P3M performance Loss of perceived power (e.g. through the loss of dedicated resources) and resulting personal feelings this may create Need for an increased level of openness through the need for: justification for programmes and follow on decision-making from senior management and peers facing issues and risks directly and openly due to structured monitoring, reporting and governance Inherent complexity of delivering often without hierarchical position while managing multiple, conflicting, stakeholder relationships/objectives Potential lack of value attributed to project, programme and portfolio management by some individuals and functions.
- 42. POWER CULTURE based on survival ROLE CULTURE based on stability ACHIEVEMENT CULTURE based on self -expression SUPPORT CULTURE based on community Key Words : Strength, Decisiveness, Determination Key Words : Growth, Success, Distinction, Profit Key Words : Order, Security, Control, Conformity Key Words : Mutuality, Value, Service, Integration Strong & stable leadership, but prone to fiefdoms and unquestioning followers Known & defined roles & procedures but inflexible with emphasis on following rules & not results. Common goals & vision with focus on results & self-management but “ends justify the means” & arrogance. Consensus decision making, harmony, sense of belonging & appreciation, but differences may be ignored & slow to change. Types of Culture – a simple model based on Harrison & Stokes
- 43. Influence of Culture on P3M How P3M supports the organisation achieve its strategy and how well this is articulated How decisions are made around the portfolio (typically one of the most emotive aspects in the P3M family) What approach the organisation takes to maturing its P3M capability What are the challenges and opportunities for effective P3M in each type of culture? What is the most effective style of programme leadership?
- 44. Time – the challenge for managing the change Change Here! Managing Change to Improve Local Services. The Audit Commission Step-change required to meet public, political and shareholder expectations – is the organisation “ ready ” and what part can P3M play?
- 45. Summary Do you understand: your organisational culture and the impact it has? how a programme-based way of working can be best adopted / sustained in this culture? the drivers for making this happen? Have you identified how P3M can add value to the organisation and how it should be branded ? Do you have the leadership to tackle these challenges?
- 46. Debate Cost or enabler?
- 47. Questions for discussion and debate Vote : Is project management a cost to be reduced or an enabler for cost reduction? Discuss and propose : How can Project Management help with austerity? Some points to consider.... What are the value and cost drivers for your organisation? Does you portfolio need some tactical right-sizing? What is the optimum balance between the tolerable cost of project management and acceptable performance? Does the scale of change facing your organisation require better project/programme capability than you currently have? What are the underlying cultural issues facing the adoption and effective use of project management? How long have you got before you are left with the option of last resort?
- 49. About Outperform A specialist consultancy Helping organisations improve their bid, project and programme management performance through the practical application of best practice methods Accreditations ISO9001 Certified Accredited Consulting Organisation Professional membership APM corporate member Best Practice User Group™ member © Outperform UK Ltd www.outperform.co.uk
- 50. How we help Publications Outperform’s consultants have written a number of books/white-papers and developed handbooks/templates which are available to purchase or download from our website. Assessments Bid, Project and Programme audits or health-checks. Organisational maturity assessments. Portfolio review (inc culling service). Training Workshops One and two day workshops and business games delivered by registered consultants showing how to embed best practice. Available as public and on-site. Facilitation Structured workshops to help you define, assess risks in, or plan your bid, project or programme. Coaching Our buddy services start from half day a month and can be called off in hourly units. Embedding Use a maturity model to assess current capability, define an improvement roadmap, develop handbooks/ processes/ templates and supervise the roadmap implementation.
- 51. Inspiring: project managers to become leaders project teams to develop sustainable leadership practices organisations to change to support leadership practices Who are Team Animation “ Consultancy which increases business success by inspiring leadership in project management” 1. 2. 3.
- 52. Our relationships Management, Procurement and Law Proceedings Editorial Panel Associate Lecturer on MSc Project Management in the Built Environment Chair of the APM People SIG and Member of the SIG Steering Group and APM Policy Unit Regular contributor to the Construction Journal Associates of: People
- 53. Contacts Contact Donnie MacNicol t +44 1932 589 259 m +44 7799 766238 e [email_address] w www.teamanimation.co.uk Contact Andy Murray t +44 8451 304861 f +44 871 750 3386 e [email_address] w www.outperform.co.uk © Outperform UK Ltd www.outperform.co.uk
- 54. Acknowledgements M_o_R® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries The PRINCE2 Cityscape logo™ is a Trade Mark of the Office of Government Commerce in the United Kingdom and other countries PRINCE2® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries MSP™ is a Trade Mark of the Office of Government Commerce The Swirl logo™ is a Trade Mark of the Office of Government Commerce P3M3™ a Trade Mark of the Office of Government Commerce BPUG® is a Registered Trade Mark of Best Practice User Group Ltd Best Practice User Group™ and the Best Practice User Group™ logo are Trade Marks of Best Practice User Group Ltd Outperform™ is a Trade Mark of Outperform UK Ltd © Outperform UK Ltd www.outperform.co.uk