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AUGUST 2013 | VOLUMe 27, NUMBeR 8
The Value Proposition Every project is different, but organizations must look at each through a shared lens: business value.
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Features
AUGUST 2013 | VOLUME 27, NUMBER 8
30 46 52 58
Big data can help government agencies cut costs, slash bureaucratic layers and improve transparencyif they can get buy-in.
By Sarah Fister Gale
DONG Energy leveraged lessons learned to manage unexpected risks on Denmarks largest wind farm project to date.
By Clay Dillow
Sticking Power
Money may attract a star project manager, but it will rarely keep one around.
By Lillian Cunningham
Prepare for a career move by sharpening the skills needed for tomorrows project, today.
46
52
30
58
Also
AUGUST 2013 | VOLUME 27, NUMBER 8
10
THE EDGE
10 Navigating the Minefield Mining projects find a new homeand outspoken neighborsin Latin America. 13 Anchoring Projects to Strategy PMI-sponsored research reveals three ways to achieve strategic alignment. 13 Smog Casts Shadow Over Railyard Project A skeptical public puts a controversial rail project at risk. 15 Stalled Projects Erode Public Trust Three hamstrung German projects highlight the need for proper planning. 16 Colombia Targets Tech Colombia invests in project training and infrastructure to develop its IT industry. 17 Talent No-Show BRIC needs project talentbut has a tough time finding it.
VOICES
20 Inside Track The Game Plan Kynan Woodman, Electronic Arts, Melbourne, Australia 22 In the Trenches Community Consolidation By Daniel Messinger; Capt. Elizabeth Booth Myhre, Nurse Corps, U.S. Navy; Col. John Bulick, U.S. Air Force; and Robert Silverman 24 Project Toolkit On the Rebound
17
19 Metrics Natural gas projects are on the riseand so are their risks. 61 Special Advertising Section Education and training 68 Marketplace Bridging the gap between strategy and projects 71 Directory of Services Project management resources 72 Closing Credit A project team faces a cliffhanger.
COLUMNISTS
24
26 Career Q&A Temp to Hire By Lindsay Scott 27 Take the Lead Triple Threat By Roberto Toledo, MBA, PMP, Contributing Editor 28 Inside the PMO Hired Help By Abid Mustafa
28
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theEd
When the Argentine government declined its request for tax breaks, mining company Vale SA walked away from the Rio Colorado potash mine (pictured below).
of global mining investments between 2012 and 2020 will be made in Latin America.
Sources: Inter-American Mining Society, Metals Economics Group, BNamericas
10
ge
Nationalization or expropriation remain threats in large parts of the Latin American region.
11
theEdge
MINE MAP
A The project: Vale SAs US$11 billion potash mine, Rio Colorado, Argentina The holdup: When the Argentine government refused to grant the company US$2 billion in tax breaks, Vale called it quits.
The project: Newmont Mining Corp.s US$5 billion gold and copper mine, Minas Conga, Peru The holdup: Newmont temporarily suspended the project after protesters alleged pollution of local waters.
C The project: Barrick Gold Corp.s US$8 billion gold mine, Pascua-Lama, Chile The holdup: Responding to concerns about water pollution, the Chilean government halted the project.
The project: Southern Copper Corp.s planned US$1 billion copper mine, Arequipa, Peru The holdup: Local activists concerned about pollution brought mine construction to a standstill.
BD
of Pascua-Lamas reserves lie in Chile, a governmental ban could kill the whole project.
70 percent
Social license to operate, meaning the firms negotiations with local communities, is becoming more difficult in countries throughout the region, says Risa Grais-Targow, an analyst specializing in Latin America at Eurasia Group in Washington, D.C., USA. As countries become more developed, local communities surrounding projects have become both more concerned about their quality of living and the environment, and better able to mount legal challenges to mining projects, she says. These concerns are most evident in Chile. In May, the Chilean government officially halted the Barrick Gold Corp.s US$8 billion Pascua-Lama mine project, which had been temporarily suspended since April. Critics of the Canadian companys project contend construction dust has settled on three nearby glaciers, causing them to retreat. Stakeholders also charge the project threatens the Estrecho River, which supplies water to a tribe downstream. Because more than 70 percent of Pascua-Lamas reserves lie in Chile, a governmental ban could kill the whole project. But it might not come to that, according to Andy Kaplowitz, an analyst at Barclays Capital. Given that Barrick has already spent US$4.2 billion on the project ... and construction is 40 percent complete, we think there is a strong incentive for the developer to press forward with only minimal delays, he wrote in a research note. Barrick is making an effort to engage, releasing an 18-month plan to meet the Chilean governments requirements for infrastructure to prevent water pollution. Construction will not be
allowed to continue without approval from Chilean regulators. Barrick and other mining giants must convince stakeholders theyre looking out for the communitys interestsor else. Where stakeholders fears cannot be allayed, there is potential for severe reaction to planned developments, says Mr. Welch. In other words, project owners can expect more of the sameso they may want to pull in skeptical stakeholders right from the start. Since opposition often comes from communities that are not originally included in negotiations but feel affected by projects, firms can avoid conflicts by going through an extensive consultation process and including communities farther afield from the project who may also be affected, says Ms. Grais-Targow. When Perus government requested Newmont Mining Corp. suspend its US$5 billion Minas Conga gold and copper mining project in November 2011, the U.S. company complied and built new reservoirs for water from lakes displaced by the project. It was enough to convince Perus government to allow the project to resume operations in June 2012. But it wasnt enough to placate local stakeholders. In June 2013, locals staged a protest at one of the lakes scheduled to be displaced, prompting Newmont to issue a statement pledging to complete an intensive public involvement process with neighboring communities. Effective stakeholder outreach can be the difference between a mining company holding onto its social license and losing it, says Mr. Welch. And the latter, he says, can mean the end of a projectno matter how large or high-grade it may be. Emma Haak
12
Sometimes we have a tendency to over-involve executives, thinking their presence alone is going to add value.
13
theEdge
trying to achieve, he says. They ask, Why are we doing this? Constantly having that voice brought back into projects is one of the healthiest things you can do.
9 in 10 46%
of organizations are excellent or good at executing strategically aligned projects.
organizations say successfully executing projects to deliver strategic results is essential or very important.
2 in 5
organizations report having sufficiently skilled personnel working on strategic initiatives.
While the captain sets the course and the lighthouse guides the way, a solid crew is needed to steer the ship to port. As previously noted, leadership buy-in and support is the top reason strategic initiatives succeed. Senior executives cited skilled implementation as the second-highest factor. Yet only 41 percent of organizations reported having sufficiently skilled personnel working on those initiatives. And alignment requires more than just figuring out who has agile skills or who knows metrics. You have to consider what the project requires in terms of business and technical knowledge, but also in terms of the project managers personal characteristics, says Mr. Murta. Each project may demand a different type of person. To pair the right people with the right project, Mr. Cooch recommends a standardized talent development program. Because even if the talent is there, it still needs to be harnessed to reach its full potential.
1 in 4
executives say projects to implement strategy lack senior backing.
Source: Why Good Strategies Fail: Lessons for the C-Suite, 2013, The Economist Intelligence Unit Ltd.
Organizations need to understand their current talent pool, identify the gaps and then understand how they need to develop internal candidates, use external partiesor both. In short, strategically aligned projects keep organizations afloat. Matt Alderton
14
A Bumpy Ride
The most high-profile of the three, the Berlin Brandenburg Willy Brandt Airport, was initially heralded as a world-class global travel hub that would replace three smaller airports. Instead, its become a symbol of inept project management. When construction began in 2005, the airport was scheduled to open five years later. But technical problems involving the wiring system, fire alarms and lighting caused it to miss that deadlineand several others. Meanwhile, costs more than doubled from 1.7 billion in the original plan to 4.3 billion in 2012 due to scope creep that involved the addition of a shopping mall and hotel. And theres no end in sight, as officials have refused to set a new opening date. Its unfortunate, says Cathy Buyck, a Brussels, Belgium-based aviation industry expert and senior editor of Aviation Week magazine. This is an important public project for Germany and the largest airport project in Europe. A lack of transparency on project progress has only added to its woes, Ms. Buyck says. Unaware that key deadlines would be missed until weeks before the publicized opening in June 2012, airlines were forced to reorganize flight schedules and individually notify passengers of airport changes on their itineraries. We have to work around the change of plan, which presents us with a huge challenge, former Air Berlin CEO Hartmut Mehdorn said about the delay. It presents immense logistical problems for all involved and will also cause additional costs which have yet to be calculated. Better stakeholder management could have eased such conflicts, Ms. Buyck says. Transparency and permanent cooperation is so important on these projects. When there is no trust, there can be no cooperation.
Contract negotiations have more than doubled the cost of the Elbphilharmonie concert hall in Hamburg, Germany.
The target completion date for the Stuttgart 21 rail project has been pushed back three years, partly due to public protests.
15
theEdge
COLOMBIA TARGEtS TEcH
Colombia is staking its claim as an IT project hotspot with a burst of investment in web connectivity, tech start-ups and training. The country is looking to double IT revenue between 2010 and 2014, according to BNamericas. And to make money, its spending money: The Colombian Ministry of Information and Communications Technologies plans to invest US$51.9 million on 32 local tech projects this year. But cash alone wont anoint Colombia the new tech royalty. The country also needs trained project professionals, so its launching education programs, including one on agile. Another government program is teaching more than 21,000 Colombians to code. The governments cash infusion for tech training and infrastructure has reaped rewards: Colombias IT market is expected to hit COP6 trillion in 2013, a 10.5 percent jump over 2012, according to Business Monitor International. Colombia also increased its Internet connections from 2.2 million to 6.2 million in the last two and a half years, according to the World Economic Forum. The goal, according to Colombia IT minister Diego Molano Vega, is for the country to become internationally recognized as the place where [digital] applications for the developing world are being developed, he told The Atlantic earlier this year. Thats where the money is. Margaret Poe
Meanwhile, building contracts have cost more than expected, ballooning the project budget from 2.6 billion to an estimated 6.8 billion. And the target completion date has been pushed to 2022, three years later than originally planned. Project owners can learn from the projects troubles, said Britta Baumgarten, PhD, a research fellow at Lisbon University Institute who has studied the publics reaction to Stuttgart 21. One lesson to be learned from S21 is the importance of investing more resources to involve citizens in the decisionmaking process and to discuss multiple alternative solutions, she said in an interview with the Partnership with Africa Foundation e.V.
Out of Tune
A modern glass edifice would rise from Hamburgs waterfront, and the Elbphilharmonie concert hall would become the worlds preeminent orchestra hall. Just as soon as it opened in 2010. Fast forward to 2013, and its doors remain shut, largely due to inadequate planning. The government approved the original 204 million budget based on incomplete design plans. Since then, scope creep and contract renegotiations have increased the cost to 575 million with a new deadline of October 2016. One of the primary conflicts has revolved around the Elbphilharmonies steel saddle roof, which needs to support 4,000 tons. Construction company Hochtief argued the plans it received from the architectural firm were unsafe, even though the design was certified by both an independent safety engineer and the Hamburg building control authority. Hochtief certainly has problems building the roof and therefore tried to place the responsibility for the delay on the City of Hamburg, Karl Olaf Petters, an Elbphilharmonie spokesman told Arch Daily in late 2011, after construction ground to a halt while the parties worked to resolve the dispute. In April 2013, the teams reached an agreement to place the burden of all future construction and planning risks firmly on Hochtiefs shouldersin exchange for a steep one-time increase in costs. The new contract, which was approved by the Hamburg parliament in June, will allow construction to move forward.
Political Intrigue
Public stakeholders on these types of projectsin Germany and elsewhereconsistently and purposely underestimate costs early on to push the plans through, says Timo Klein, senior economist for IHS Global Insight in Frankfurt, Germany. Politicians want to appear cost-conscious so they can win approval, he says. It becomes more important than assessing whether the cost and timetables are realistic. And if problems arise later on, it is likely their successors who will have to deal with it. But such manipulation ultimately impedes the project plan, and costs end up higher than they might have been with proper planningand expert advice. For instance, on the airport project, Mr. Klein notes, Berlin authorities tried to cut costs by coordinating all of the contractors themselves, rather than hiring a project management team to oversee the work. They made a big mess of things by not having sufficient expertise to make decisions. As a result, a lot of work was done two or three times to correct mistakes that had repercussions down the line, he says. It is always cheaper to take the time and resources up front for planning than to fix things later on. Sarah Fister Gale
16
TALENt NO-SHOW
The BRIC project powerhouse of Brazil, Russia, India and China remains strong, accounting for more than a quarter of global output last year. But the four countries have one big Achilles heel: talent. More than half of organizations in Brazil, Russia and India, and three of four in China, say they currently have positions for which they cant find qualified candidates, according to a 2013 CareerBuilder survey. And the report says this dearth of talent hurts business performance, work quality, morale and employee retention. In what remains a fragile economy, theres certainly no shortage of people looking for a job. Still, its not enough just to fill the empty seats. To be successful, organizations need people with the right skills. In the past, project owners could make up for poor quality labor by adding more people, but that method no longer works, says Jeffrey A. Joerres, CEO of multinational human resources consulting firm ManpowerGroup, Milwaukee, Wisconsin, USA. As these four countries hit their stride, they need talent with the skills to handle megaprojects laden with risk and complexity. A snapshot of some of the current projects says it all: n China: Fueled by a booming population, China is making serious investments in infrastructure and energy. The Shuangjiangkou hydropower project on the Dadu River, for example, is a 10-year, CNY24.7 billion initiative to construct the countrys tallest hydroelectric dam. n India: Research company Gartner predicts Indias IT services market will reach US$10.2 billion this year, fueled by major initiatives such as the highprofile unique identification program that aims to digitally document all citizens. The country is also planning one of its most ambitious infrastructure projects to date: A US$100 billion industrial corridor that would cover 555
Skolkovo, a tech city being built outside of Moscow, Russia, aims to usher in a new age of innovation.
People Plan
To minimize the damage from skills shortages in BRIC countries, project planners should first define their talent strategy and the related risks. Its not enough to build a 10 percent premium into your talent budget, Mr. Joerres says. You have to be able to say why its 10 percent and what happens if you cross that financial threshold. He envisions two options:
17
square kilometers (214 square miles) between New Delhi and Mumbai. The project aims to significantly reduce travel time between the two cities, facilitating faster exports by 2025. n Russia: To offset its economys heavy reliance on natural resource exports, the country launched a project to build Skolkovo, a 400-hectare (988-acre) science-based city aimed at ushering in a new era of tech-driven innovation. In June, the country also unveiled a US$14 billion infrastructure program, including a highway and two ambitious rail upgrades. n Brazil: Along with massive oil exploration projects and a booming IT sector, the country is currently working on dozens of stadium and infrastructure projects for the upcoming World Cup and Olympics. Brazils surge in projects as it preps to host the two mega sporting events makes it particularly difficult to find skilled project and program managers, says Alex Julian, PMP, senior program manager at Citibank, a Global Executive Council member in So Paulo, Brazil. More than two in three Brazilian leaders reported trouble filling key positions, with engineers ranking among the most difficult slots to fill, according to a 2013 ManpowerGroup survey. Nearly 80 percent of Brazilian respondents said the talent shortage had a high or medium impact on their ability to meet client needs. Companies are searching for senior project and program managers to drive the higher priority programs, Mr. Julian says, but there is a lack of skilled professionals to fill these roles. Practitioners with strong leadership, communication and conflict management skills are especially hard to secure, he says.
theEdge
1. If a project demands highly skilled, difficult-to-source talent, team leaders should focus on offering higher salaries, career paths toward leadership roles and training opportunities for key roles. 2. If an organization is ready and willing to accept high turnover as a talent strategy, project owners should implement knowledge-sharing mechanisms to ensure information doesnt walk out with the employee. Both talent management approaches are viable, as long as you have a plan in place to support them, Mr. Joerres says. Organizations should also consider candidates who may not have all the necessary skills, but could be developed with the proper training and mentoring. Figure out what gaps you can tolerate, he says, then find good people who you can get up to speed. To recruit and retain good project talent once a solid hire is made, Mr. Julian suggests organizations based in BRIC countries look beyond cold, hard cash. Making a job look appealing isnt only about money, Mr. Julian says. It is about what the job can offer in terms of challenging the program or project manager. When interviewing candidates, he recommends emphasizing the experience and opportunities the project or program will provide. Whatever techniques they opt for, organizations must focus on getting the right people on the right projects to maintain the BRIC economic juggernaut. Talent management is just as important as supply chain planning or engineering to the project plan, but it often doesnt get as much attention, Mr. Joerres says. Yet the rewardsand risksare real. Those who pay attention to talent management will gain a competitive advantage, he adds. For those who dont, buyer beware. Sarah Fister Gale
Talent management is just as important as supply chain planning or engineering to the project plan, but it often doesnt get as much attention.
Jeffrey A. Joerres, ManpowerGroup, Milwaukee, Wisconsin, USA
COLLABORATION + COMMITMENT =
FLAWLESS CONSULTING
Designed Learning helps participants develop greater collaboration among team members, maintain commitment during the life of a project and actually have solutions implemented. This new adaptation of our powerful Flawless Consulting Workshop allows Project Managers to apply these proven techniques to their own unique situation.
EXPANDING GASES
In the 1970s, scientists predicted an approaching drop in the supply of natural gasand an abrupt halt to natural gas projects. But the gas was there, waiting for technology that could nd it. That technology has nally arrived.
Around the world, proven natural gas reserves have expanded rapidly:
Africa: Up 23%
to 515 billion cubic feet (14.6 billion cubic meters) between 2003-2013
The discovery of these vast resources has led to a boom in high-budget natural gas projects:
US$7.3 billion
The budget for a state-run liqueed natural gas (LNG) project in Vladivostok, Russia, expected to start operations in 2018
US$10 billion
The budget for an LNG plant project in Hackberry, Louisiana, USA, run by Sempra Energy, GDF Suez, Mitsubishi and Mitsui and scheduled to launch next year
Thats a big reason natural gas prices are fallingshooting demand through the roof.
The average time needed to drill on a shale gas well project in Oklahoma, USA
2007
2012
2008
2013
But the rewards still come with risks. The most signicant risks faced on such projects are extended delays to project completion and runaway cost overruns.
Risk Management on Gas-Related Construction Projects, Navigant Consulting, November 2012
18 months
Length of a 2011-2012 U.K. ban on hydraulic fracturing following two drillinginduced earthquakes
The estimated amount drilling platform-operator Total lost due to a 52-day gas leak in the North Sea
93.6 million
Sources: Bloomberg; The Economist; The Guardian; New Technology for Old Fuels, Manhattan Institute, April 2013; Risk Management on Gas-Related Construction Projects, Navigant Consulting, November 2012; U.S. Energy Information Administration; U.S. Department of Transportation; The Wall Street Journal
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Voice
Inside Track
development director, Electronic Arts, Melbourne, Australia
Avoiding Potholes
Whats the biggest challenge of managing game development projects? Identifying what makes people play a game and making those elements a priority. There are thousands of apps that arent getting played, and we dont want to be one of them. It sounds obvious, but this is one of the hardest things to do. When youre trying to create a game that people cant resist downloading, you can end up with an extravagant list of features. To make sure we dont push the schedule too hard, we constantly review the features list and evaluate how long each will take to finish. This means we arent able to deliver every great feature, but we deliver the most important onesand it shows when we look at game reviews.
Free Rides
How has the transition from pay-to-play to free-to-play changed the project management process and overall business strategy? Now that Real Racing is free-to-play, it changes which customersand featuresyou focus on. With a paid game, youre trying to entice new customers. With a free game, you have to build in new features for existing customers. With pay-to-play models, we used to spend a lot of time creating features that would generate marketing opportunities because our revenue came from new users. The shift to free-to-play has allowed us to be more structured with our update plan, rather than trying to catch a marketing wave.
Kynan Woodman,
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Small Talk
Are you left- or right-brained? I have to make more of an effort to turn project management on. I get a bit too into the creative side, and the schedule can suffer. Luckily there are checks and balances that keep me on a short leash. Gooest project team incentive? We used to inaugurate new team members by setting a pink toy horse on their desks. The tradition ended when a newcomer thought it was a gift and took it home for his daughter. Any project superstitions? I am known to inadvertently crash any stable build within minutes. So I wont get updates to our apps for a day or two after it goes live to ensure the build doesnt crash.
Upward Mobility
US$17.6 billion
The global mobile game markets projected worth by 2015, up from US$3.77 billion in 2010
In-app purchases generated a majority of all revenue in the Apple App Store for the iPhone in U.S. and Asian markets in February 2013.
90% Asia
Sources: Ichiyoshi Securities, June 2012; Distimo, March 2013; U.S. iPhone App Store revenue, February 2013
21
Community Consolidation
Project practitioners help execute the U.S. governments largest hospital merger and realign modern military healthcare.
Daniel Messinger; Capt. Elizabeth Booth Myhre, Nurse Corps, U.S. Navy; Col. John Bulick, U.S. Air Force; and Robert Silverman
DRIVEN BY THE NEED to provide world-class care for wounded warriors and military personnel, the U.S. military has been consolidating its healthcare facilities around the world for over a decade through the Base Realignment and Closure (BRAC) process. The BRAC process is designed to close excess military installations to increase efficiencies in line with U.S. Congressional and Department of Defense objectives. In the Washington, D.C., USA region, such an undertaking required US$2.7 billion and included the relocation of more than 160 clinical services, construction of more than 3 million square feet (278,709 square meters) of new or renovated facilities, and the realignment of nearly 10,000 healthcare and support staff. The central effort of the program was the transition of patients and staff from Walter Reed Army Medical Center (WRAMC) in Washington, D.C., which was being closed, to new joint facilities at the former National Naval Medical Center (NNMC) in Bethesda, Maryland, USA (now renamed Walter Reed National Military Medical Center) and a new hospital in Fort Belvoir, Virginia, USA. The six-year program succeeded through a choreographed combination of managing change, engaging a megacommunity of stakeholders, and using both standard and innovative project and program management techniques.
On All Fronts
A 2007 Washington Post series that criticized the housing conditions for wounded warriors receiving medical treatment at WRAMC added considerable complexity to this program. The U.S. Secretary of Defense took a multipronged approach, including establishing the Joint Task Force National Capital Region Medical (JTF CapMed) to oversee the transition, consolidation and realignment of military health care. The project management and transition planning required the careful consideration of options across all factors associated with the design, construction, outfitting, workforce planning, clinical practice, operations, and staff and patient moves. Early in the planning, JTF CapMed united military experts with program management experts from consultancy Booz Allen Hamilton, a PMI Global Executive Council member, to establish a program management office (PMO). The PMO was tasked to identify and track hundreds of milestones, develop a risk register, and establish a perfor-
mance dashboard to communicate key metrics to stakeholders to ensure that there would be no decrement in service to the patients and wounded warriors receiving care throughout this transition. The PMO and JTF CapMed also needed to drive organizational culture change. In this case, staff and patients were transitioning from service-specific facilities, such as those dedicated to the Army or Navy, to joint facilities. The team addressed cultural integration through: Consistent communication to staff about change Orientation for new perspectives and the newly established organizational culture Strong messages, communicated from the JTF Commander, aimed at unifying, alleviating concerns and promoting inclusion In addition to JTF CapMeds PMO managing the overall program, the four major medical centers in the area established program offices of their own to manage transition activities. The labor categories of staff were also standardized to ensure a baseline of skills and to address cultural differences. Execution milestones helped the JTF CapMed Commander identify risks and communicate risk management actions to the Secretary of Defense during daily conference calls leading up to the deadline.
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The project included more than 3 million square feet (278,709 square meters) of new or renovated facilities.
Setting the Standards
Project leaders relied on the Knowledge Areas in A Guide to the Project Management Body of Knowledge (PMBOK Guide) to create a baseline of project management practices used on the project: Integration: The master transition plan detailed how JTF CapMed would migrate clinical services from the existing hospitals to the new facilities. Time management: The PMOs 10,000-line integrated master schedule captured 135 mission-critical milestones, which enabled JTF CapMed to effectively identify and manage the critical path and control project scope. Quality management: Quality management policies and procedures ensured that PMO processes and deliverables met the associated requirements and would endure long after the BRAC transition. Communications: The PMOs communications plan focused on effective inbound and outbound communication in support of the transition mission. The central theme of the plan was right message, right time, right audience. Risk management: The PMO employed a systematic risk framework for JTF CapMeds decision-making process, addressing more than 100 significant risks with detailed risk responses. With this big-budget program successfully completed, the military is applying similar techniques and lessons learned from the JTF for additional consolidation projects and the construction and transition of new facilities. PM
Building a Community
In the case of most large programs that greatly affect public citizenry, not one sectorgovernment, business or civil societycan solve project challenges alone. Using megacommunity concepts developed by Booz Allen, the JTF CapMed engaged a myriad of stakeholders, including: Wounded warriors and their families U.S. Congress members Other local patients in the U.S. Military Health System Multiple military services and units impacted by the closure of WRAMC More than 9,000 hospital clinicians, administrators and staff members Senior leaders in the U.S. Department of Defense Neighbors surrounding all three facilities One technique for driving multiple stakeholders to a common goal is war gaming (also referred to as a strategic simulation). Over the course of several war games, the JTF CapMed team brought together hundreds of stakeholders from related but distinct communitiessuch as Commanders, administrators, staff, patients, wounded warriors and familiesto identify courses of action for the transition of Walter Reed to the new medical facilities. More than 10 clinical, logistics and lessons-learned summits engaged subject-matter experts in identifying critical integrated-delivery system requirements, transition challenges and next steps. These summits provided the blueprint for how key departments would operate in the new hospitals with new staff working alongside each other in a new environment.
Daniel Messinger is a Booz Allen Hamilton lead associate and was the JTF CapMed program management ofce governance lead. Capt. Elizabeth Booth Myhre, Nurse Corps, U.S. Navy, was the JTF CapMed PMO director. Col. John Bulick, U.S. Air Force, is the JTF CapMed facilities director. Robert Silverman is a vice president of Booz Allen Hamilton and the original Booz Allen program manager supporting JTF CapMed.
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On the Rebound
A project misses its mark, a sponsor leaves or funding is scrapped. Even with a talented team, projects can be plagued with failures or setbacks. We asked practitioners:
How can you help a team bounce back from project failure?
Spread the Word
In IT projects, implementing new hardware and software is inherently riskythe occasional failure is inevitable. Even the term bleeding edge implies that someone gets hurt. Ive learned that moving forward in a post-setback environment is more art than science and requires leadership. I emphasize to the team that we are all smarter now than when we started, and we all know what to look out for in future projects. Rather than avoid talking about failed projects, they should become legendary in the organization. When I present a seminar covering the basics of project management to new employees, I use one of my early broken projects as a case study in what happens when project management best practices are not implemented. When setbacks become stories that are taught across the organization, we can extract value from the lessons learned so that the project effort was not in vain.
Byron Love, PMP, senior director of IT, Intrepid Solutions and Services Inc., Reston, Virginia, USA
The kickoff meeting for the next project is the best time to bring everything to the table so team members dont draw their own conclusions about the previous failure. I start with an analysis of the setbackfocusing on the issues, not the people. As a project leader, it can be a thin line you have to walk between keeping lessons learned fresh in team members minds and not rubbing mistakes in their faces.
Charanjeet Singh, PMP, project manager, Online Business Systems, Winnipeg, Manitoba, Canada
Encourage Condence
Some project managers will try to shame their team into putting in extra effort after a failure, but to me, this is the sure-shot way to lose a teams respect. The teams condence can be shaken, and you have to work hard to repair it.
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Bounceback All-Stars
The unintended upsides of a few notable project failures.
XML
When one IBM software project sputtered out due to a lack of internal support, the company decided to publish the code publicly. Managers then noticed it was being downloaded at a rate 10 times higher than other code on the site, prompting the company to reconsider the sidelined projectwhich eventually became the XML (Extensible Markup Language) parser.
EVISTA
In the 1990s, pharmaceutical company Eli Lilly & Co. began hosting failure parties to celebrate failed projects that included excellent scientic work. One protable example: Evista, now a US$1 billion osteoporosis drug, was originally intended as a contraceptive.
PANAmA CANAl
Landslides, malaria and yellow fever crippled Frances engineering project in the 1880s. But that early failure provided valuable lessons for the U.S. team, which went on to complete what was then one of the largest and most difcult engineering feats ever undertaken.
Focus Forward
Its so easy for the project team to get mired in agony over what went wrong. To stay engaged and motivated, team members need to buy into the path forward. That means the project manager should address the root cause of the issuethen focus on moving the team forward. He or she should fully communicate the new plan of action to all stakeholders and answer any and all questions. One-on-one meetings with project leads and stakeholders have worked well for me in the past to ensure top-to-bottom communication lines are open and the full team is ready to move forward.
Douglas White, PMP, principal software delivery project manager, AT&T Services Inc., Atlanta, Georgia, USA
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CAREER Q&A
TEMP tO HIRE
How to start freelancing abroad, develop new skills and work part-time.
BY LINDSAY SCOTT
training to your manager to help build buy-in for funding. That said, the development you choose for your own career advancement could lead to opportunities externally, perhaps working for an organization that takes development as seriously as you do.
Q: Im a freelance project manager in the United States and have been struggling to nd new assignments. Id like to broaden my reach for global opportunities. How can I pick up work abroad?
A: This is a common question Ive heard the last few years. Most organizations looking for contract or freelance project managers tend to want them now. In many cases, the freelancer is expected to be available for interviews and to start working right away. So, if youre serious about freelancing abroad, you have to be ready to relocate. To find opportunities, start by mining your own network for organizations that seek short-term associates. But before hopping on a plane, consider a few things. For starters, remember that different countries have different talent needs. Those tend to relate to skills missing from the local workforce, so gauge your marketability by checking to see if project management is in demand. You can find information about local talent needs by looking for skills shortage lists on a countrys immigration services website or searching online for news articles. Also make sure you have the necessary work visas or even some type of employer sponsorship in place before you leave the country. If you go down the sponsorship route, you might consider taking on a permanent position. Its not necessarily an easier optionand the recruitment process can be longer and costlier if you travel to interview. The upside is that the organization would arrange for the correct work visa and permits.
Q: After taking a career break to raise my young family, I want to rejoin the workforcebut I need more exibility now. Is it possible to be a part-time project manager?
A: Project management has a reputation for long hours, but not all organizations have the same requirements. Those with limited projects or budgets, such as small and medium-sized businesses, are typically looking for part-time project managers. Particular sectorssuch as charities, government, education and marketingare also known for hiring part-time project managers. So yes, opportunities exist, but you may need to be flexible with your hours. Many organizations will want the project manager to have some visibility every day, and ask you to spread hours accordingly. Working part-time may take a little getting used to if youve never kept those hours before. To get up and running, quickly gauge how projects are run within the business, how theyre perceived by the people working on them and how others are affected by their outcomes. This will help you adopt the right project management style quickly and, more importantly, help you deliver the project on reduced hours. The temptation for many part-time project managers is working beyond the contracted hours to keep things on track. To avoid working full-time, identify the 20 percent of activities that will deliver 80 percent of the required outcomes. You will need to flex your leadership, delegation, planning and organizational skills to maintain a work-life balance. PM
Q: Before joining my organization over a year ago, I already had a Project Management Professional (PMP) credential. Since then, I havent had training and development opportunities or chats about my progression. What can I do?
A: If you think you need training to do your job properly, talk to your manager about it. It may be that youre struggling with some aspects of your work, and a simple discussion could give better insight into internal processes for development. But if youre concerned about training for career development, the onus is on you as much as your employer. Your career will likely span different organizations, meaning the party with a vested interest in your development is you. Compare the skills you need to meet your career goals with what your current position requires. By doing so, you might find overlapping training opportunities that benefit both your career and your current employer. Present the benefits your organization will receive from your
26 PM NETWORK AUGUST 2013 WWW.PMI.ORG
Lindsay Scott is the director of program and project management recruitment at Arras People in London, England. Send career questions to pmnetwork@imaginepub.com.
TRIPLE THREAt
Focus on a projects challenging aspects to reduce their impact.
BY ROBErTO TOLEDO, MBA, PMP, CONTrIBUTING EDITOr
The triple constraint is at the root of project success. But while we can plan to control scope, time and cost, we still cannot guarantee success. Thats because, during the projects life cycle, roadblocks will get in the way of delivering the value customers expect. Most of these roadblocks arise from what I like to call the triad: complexity, uncertainty and changeability. Tackling these three elements should be as top of mind as the triple constraintduring planning and execution. Simply put, every stage of a project should include strategies to effectively minimize complexity, uncertainty and changeability. Heres a start on how to deal with each.
Play by Play
COMPLEXItY: The motto with complexity should be divide and conquer.
The more you use tools, such as the work breakdown structure, to subdivide each major project deliverable into more manageable components, the more you will be able to delegate responsibility of the deliverables and their completion. Assess every decision you make in terms of impact. Beyond looking at time and cost, also examine the repercussions on other deliverables or activities in your plan and all elements of your complex system.
best project plan you can. Work diligently on gathering all requirements, involve your team in defining scope and work with your stakeholders to freeze specifications once a good baseline has been reached. The more stable and robust your plan is from the start, the less likely the execution process will be interrupted by change requests. Build in a change control procedure that all stakeholders must follow if they want to make any changes. Work with your team to protect the stability of the projects scope, time and cost, assessing positive and negative impacts of any change to these variables. Finally, remember that any change to the project baselines will produce more complexity and uncertainty to the end result. Not only are these elements challenging as stand-alone obstacles, they are also interconnected in nature, making them all the more formidable. PM
certainty, so it should be an integral part of all planning and controlling efforts. Establish a formal risk planning and controlling process to assess and reduce every risk in the project. One risk management option is the six-step process outlined in A Guide to the Project Management Body of Knowledge (PMBOK Guide). Every action you take and every decision you make should work toward reducing uncertainty.
Roberto Toledo, MBA, PMP, is managing partner of Alpha PM Consulting, and a trainer and consultant who works across the Americas. He can be reached at rtoledo@alphapmconsulting.com or followed on Twitter as @robertoledo.
AUGUST 2013 PM NETWORK 27
HIRED HELP
Outsourcing PMO competencies to managed services can increase efciency and reduce costsas long as the organization selects the right vendor.
I
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BY ABID MUSTAFA
In our age of austerity, organizations are constantly seeking new ways to reduce costs and improve efficiency. Its increasingly common for departments across an organization to be gutted and then supplemented by some sort of outsourcing. Project management offices (PMOs) are not immune to outsourcing. Various PMO competencies can end up being farmed out as part of a managed services deal, in which a vendor takes on the responsibility of delivering allor aspects ofoperations as part of a contractual agreement. Typically, the organization simply pays a set fee for vendor services as determined in the contract. The vendor then bears the cost for resources, including support personnel, hardware, software licenses and third-party maintenance. Managed services are most often used by large, complex organizations with PMO hierarchies. An example would be a centralized corporate PMO that interacts with distributed PMOs in the various business domains, which, in turn, interact with program-level PMOs. In such cases, managed services can increase the organizations chances of successas long as it adopts the right vendor engagement model.
and contract specialists, to help the organization define the business case and interpret requirements for the managed-services contract. Likewise, once a vendor has been selected, the assistance of legal experts should be sought to protect the companys interest in the managed-services contract. Attention should also be paid to the implementation aspects of SLAs and KPIs to get the best out of the vendor. Once the managed-services contract is in place and the vendor is on board, a contract specialist should be hired to manage the contract.
BACKGROUND CHECK
Finally, keep the end goal of cost savings and improved efficiency in mind. For example, think about the role of offshore outsourcing, and how it would affect the overall goal. Typically, mundane activities such as tracking risks via an automated tool or the preparation of project costing data for executive reports can be transferred to offshore hotspots as a cost-saving measure. But then the issue of quality comes into play. The solution is to plan to offset quality issues by stringently managing the vendor. Managed services for a PMO is not a new concept, but getting it right can be extremely rewarding for those who dare try. PM
Abid Mustafa is a director of corporate programs for du Telecom, a telecom operator and PMI Global Executive Council member in the United Arab Emirates. He is the author of In the Age of Turbulence: How to Make Executive PMOs Successful, published in June 2013.
RULES OF ENGAGEMENT
Selecting the right vendor requires first understanding exactly what the organization needs. For instance, an organization may decide to outsource all its PMO work at the distributed and program level only, but retain the corporate PMO. The corporate PMO is then charged with the responsibility of managing the vendor in accordance with an agreed set of service-level agreements (SLAs) and key performance indicators (KPIs). Another vendor engagement model can involve outsourcing specific PMO competenciessuch as project methodology support or consolidation of risks, assumptions, issues and dependencieswhile leaving other competencies, such as project delivery and executive reporting, in-house. The decision to outsource some PMO competencies and keep others in-house is driven by cost, efficiency, intellectual property retention and politics, and differs from organization to organization. It is always prudent to get the assistance of experts, such as consultants
Gain fresh ideas, new skills, proven techniques. Small class sizes offer group interaction, individualized learning and valuable networking opportunities.
Earn up to 36 PDUs toward maintaining PMI certication Dynamic instructors with real-world project experience 2, 3 or 4-day seminars 25-plus subjects to choose from Topics range from benets realization, agile and risk, to leadership, change and complexity
213 Project Management Institute, Inc. All Rights Reserved, "PMI, the PMI Logo and SeminarsWorld are registered marks of Project Management Institute, Inc.
30
SPECIAL REPORT
Doesnt Lie
Big data can help government agencies cut costs, slash bureaucratic layers and improve transparency if they can get buy-in.
BY SARAH FISTER GALE ILLUSTRATION BY CARL WIENS
AUGUST 2013 PM NETWORK 31
Governments live and die by data. To truly serve a population, agencies must understand what people needand how they behave. That information can reveal gaps and inefficiencies in otherwise opaque bureaucracies, helping government agencies save money, increase transparency and improve services. But all that information has to be gathered and analyzed in a timely manner. And many government players simply cant process the data deluge: E-Commerce Times estimates the volume of data stored by U.S. federal agencies alone will increase from 1.6 petabytes (or 1.6 quadrillion bytes) to 2.6 petabytes within two years. As in the private sector, the potential for translating all those bits and bytes into a meaningful strategic direction has caused governments around the world to fixate on the notion of big data. A 2013 study by PMI Global Executive Council member Booz Allen Hamilton found that roughly two-thirds of U.S. federal government managers said big data could fundamentally transform their operations. Yet only 37 percent said their agencies have taken the right steps to use big data to improve agency operations. And just 18 percent claimed full proficiency in understanding large data sets. Respondents cited inadequate resources, technological barriers and misaligned budget priorities as obstacles.
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Pushing ahead requires an evolution in how data is both mined and handled, says Chris Bartlett, principal at global consulting firm Booz and Co., Sydney, Australia. That kind of shift wont happen overnight, so project leaders will probably have to scale back any grand visions of immediate transformation. They may have to start small and migrate solutions across agencies, he says. But once you have some early success, you can start to affect the change for big data innovations to continue.
Only 35 percent of U.S. government agency respondents said they had the personnel they needed to successfully leverage big data.
Source: MeriTalk, 2013
Several government agencies are already seeing real results from big data projects. Brazils transparency portal project, for instance, lets anyone track spending, progress and completion rates of major infrastructure projects, including those for the 2016 Olympics. In New Haven, Connecticut, USA, the government introduced an app that lets people report a city problem, see how many other similar reports have been made and track how local leaders respond. And the U.K. government is funding private-sector projects that use public data to both serve the citizenry and create economic growth. In the United States, federal agencies spent about US$4.9 billion on big data resources in 2012, according to estimates from IT consultancy Deltek. By 2017, that number could hit US$7.2 billion. Even governments that have yet to implement such projects recognize the benefits big data could, in theory, provide. To close the gap between its promise and actual projects, government IT leaders must make the case for the role big data can play in meeting strategic goals, Mr. Bartlett says. That means identifying the projects that will deliver the most value to citizens, finding the right agency to sponsor these early initiatives and defining the metrics to measure success, he says. It also means having the talent to carry out those projects. A 2013 survey by MeriTalk found that only 35 percent of U.S. government agency respondents
said they had the personnel they needed to successfully leverage big data. Realizing thats a tall order, many forward-thinking government agencies are partnering with the private sector on big data initiatives. Its a way to get the most innovative use of the technology at the lowest cost, says Ben Berkowitz, owner of SeeClickFix, an app development firm based in New Haven that works with several government agencies in the United States. However theyre executed, big data initiatives require a fundamental change in the way government agencies communicate with each other and the public, Mr. Bartlett says. Culture change is the hardest part, he says. But once you begin to see results, the change will come.
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CASE STUDY:
The government benets from solid solutions for public-service needs, while easing the burden on small companies.
ies from the original estimates. The project also makes it easy to convert different types of energy inputs into carbon outputs so architects and designers can clearly determine which techniques most effectively reduce emissions. When a private company comes up with a compelling data project like CarbonBuzz, TSB offers a range of support mechanisms, such as an infusion of cash along with training and project planning support. Project timelines range from three months to several years, and TSB provides from 10,000 to 10 million in matching funds. The government benefits from solid solutions for public-service needs, while easing the burden on small companies to generate quick results for their investments, Mr. Appleyard says. Going halves on cost takes a lot of the business risk away, he says. Another example is RoadSaver, a two-year,
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To realize their intended benets, big data collaborations need project leaders with strong communication and stakeholdermanagement skills on both sides of the partnership.
Nick Appleyard
CASE STUDY
213,767 initiative launched in 2011 that aims to extract greater value from the vast amount of data gathered by local highway authorities. The project team is developing new ways to interpret raw survey measurements that will allow it to identify deteriorating parts of the network. From there, it will create new data analysis, visualization and presentation tools to facilitate strategic decisionmaking. Ultimately, this data project will result in a smoother ride for more U.K. residents. But to realize their intended benefits, big data collaborations need project leaders with strong communication and stakeholder-management skillson both sides of the partnership, Mr. Appleyard says. The larger projects usually require several organizations to work together, share their knowledge and perhaps build new supply-chain relationships, he explains. The challenges faced by the projects are therefore as much about communication and sustaining collaboration as they are about purely technical barriers.
35
and costs associated with fielding phone Government agencies are unaccustomed calls. The tool also allows field crews to to tracking and responding to electronic track, locate and close out requests in complaints, and have little precedent for real time, which means they spend less funding cloud-based solutions. To build time managing administrative tasks or buy-in, project teams may have to roll out working on problems that have already prototypes that demonstrate the benefits of a been addressed, Mr. Berkowitz says. connected community. Ben Berkowitz, SeeClickFix, New Haven, In municipal governments, costs are Clearly outlining the benefits is one Connecticut, USA high, revenues are low and citizens are way to build support. With SeeClickFix, demanding improved responsiveness, he for instance, the biggest savings come says. In this environment, technology solutions through automation. When citizens are able to arent a choice, they are the only way forward. post problems through the app, it cuts the time
In [the municipal government] environment, technology solutions arent a choice, they are the only way forward.
CASE STUDY
Farm-Fresh Data
Before joining the European Union (EU) in July, the Croatian government launched a major tech upgrade. The list of projects includes a rollout of the Information System for Agricultural Market Management and Monitoring (ISAMM). EU member states rely on it to share information about crop production, agricultural prices, supply and demand issues, regulatory changes and other issues that impact the agricultural community in these countries. Its an umbrella system that connects EU members to communicate common market notifications across the region, explains Darko Lugonja, national ISAMM coordinator and a senior expert adviser in the Ministry of Agriculture, Zagreb, Croatia. With a July deadline looming, time was a significant concern. We have the budget, but we have limited capacity on our team, he says. Because Croatias IT talent pool is limited, the administration wasnt sure how it would find enough people with the expertise to support the project. But networking with IT experts in other EU nations that have already completed the process helped see Mr. Lugonjas team through the execution phase. The EU provided Croatia with significant technical assistance, including training and IT systems implementation, he says.
Data projects streamlined agriculture production as Croatia joined the European Union.
The team has learned the importance of implementing a systematic contingency approach, as well as meeting common standards and criteria.
Darko Lugonja, Ministry of Agriculture, Zagreb, Croatia
There is good cooperation between nations, and we are learning lessons from projects in Germany, Slovenia, Denmark, the Netherlands, Poland and Hungary, he says. For example, the team learned the importance of implementing a systematic contingency approach, as well as meeting common standards and criteria, Mr. Lugonja says. While each ISAMM rollout must be tailored to the needs of the country, seeing how others have completed their implementation projects has helped Mr. Lugonja streamline his project plan and manage his risks. We made comparisons to other projects, then tailored those solutions to meet the needs of our stakeholders, he says. Hopefully we can help the next state, Bosnia and Herzegovina or Macedonia, when they begin this process.
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CASE STUDY
The big challenge we face now is providing information the government is producing in ways that citizens can nd easily and understand.
Otavio Castro Neves, Ofce of the Comptroller General, Braslia, Brazil
The Brazil transparency portal includes information about ongoing projects, such as the Rio 2016 Olympic Park, currently under construction.
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to track revenue performance, social programs and government personnel. And more recently, the team added links to track World Cup and Olympics projects. All of that makes the site far more complex to manage, Mr. Castro Neves says. The big challenge we face now is providing information the government is producing in ways that citizens can find easily and understand. One point of confusion involves the medias pet names for big government projects that the general public then adopts. For example, the Transfer of Revenues to Families in Conditions of Poverty or Extreme Poverty program is widely known as the Family Grant Program.
When people want to find information, they search for the Family Grant Program, Mr. Castro Neves says. So his team has to make sure that name and all other program nicknamesare searchable in the database. The team has also struggled with the data streams themselves, which often include a combination of data types that need to be distributed to separate sections of the site. This has been especially challenging for reporting around World Cup and Olympics projects, because project data is mixed in with other unrelated infrastructure initiatives. The redesign should help streamline these issues, Mr. Castro Neves says. And the updates are already
CASE STUDY
The U.S. Internal Revenue Service works with LexisNexis to reduce tax refund fraud.
In February 2013, Erkes Antwon Green was charged with filing or attempting to file more than 100 bogus U.S. income-tax returns using stolen personal information. Its a prime example of how information overload can expose government agencies to fraud. Tax refund fraud is the fastest-growing problem the Internal Revenue Service (IRS) Fraud related to faces, says Andy Bucholz, senior director government documents of government fraud solutions at Lexisor benets was the most Nexis, an information software company commonly reported type in Washington, D.C., USA. Last year alone of identity theft in 2012, the agency estimates criminals like Mr. and social security and unemployment bencomprising 46 percent Green cheated the government out of US$4 efits. Fraud related to government documents of all identify-theft billion to US$5 billion, a number that has or benefits was the most commonly reported complaints in the grown 650 percent in the last three years. type of identity theft in 2012, comprising 46 United States. The IRS is not alone. The ability to regpercent of all identify-theft complaints in the Source: Consumer Sentinel Network Data Book, ister for services online and receive autoUnited States, according to the Federal Trade Federal Trade Commission, 2013 mated government payments has opened a Commission. The agency reports complaints back door for identity thieves to steal from rose 27 percent between 2010 and 2012. federal, state and local government agencies. That has Mr. Bucholz is trying to put a stop to these led to a surge in the theft of food stamps, tax refunds, crimes with a blast of big data processing. His team
38
underway. The project began in early 2013, and by April the team was building user interface prototypes and preparing to share concepts with end users. Their feedback will be especially valuable in helping the team monitor how users seek information and where they run into roadblocks. The team currently has data about where users go, but it doesnt explain user behavior, he says. We dont know if the 10 pages they visit all had information they wanted or if they had to go through 10 pages to find what they were looking for. As part of its concept testing, the team will pro-
The team is working closely with other ministries to determine how to manage the format and ow of information.
vide information on index cards and ask users to sort them by relevance. That will help us understand how users organize and prioritize information, which will help us design the best interface, Mr. Castro Neves says. The team is also working closely with other ministries to determine how to manage the format and flow of information. The end goal is to build a portal environment that will give the project team the flexibility to add data streams in the future. We realized that it will keep getting bigger, so we need to design it in a way that lets us continue to add new information without causing it to collapse, Mr. Castro Neves says.
partners with government agencies on projects to implement data review tools that flag applications with suspicious information, such as prisoners applying for income tax refunds or dead people requesting social security benefits. Still, its a delicate balance to prevent fraud without adding a lot of time or cost to the refund process for legitimate claims, he says. We dont want to flag thousands of people who then have to come down to a government agency to prove themselves. Instead, Mr. Bucholzs team reviews each agencys process and then creates a detour step within the processing system to review flagged applications. Every government process is different, so we have to find where we fit into that process, he says. The state of Georgia, for example, has a fraud filter that flags obviously fraudulent applications, such as people who file multiple times or requests that exceed a certain amount. But the states ability to weed out identity fraud is limited, given that the person could have moved or could be a first-time filer with the state. For instance, if a person who lives in another state applies for an income tax refund, the state might just view him or her as a first-time filer and not flag the application, Mr. Bucholz says. LexisNexis helped the state hone its criteria so
flagged applications are routed out of the refundprocessing system and sent to Mr. Bucholzs team for closer review. When applications appear suspect, LexisNexis asks applicants to complete a short, automated quiz on the Georgia Department of Revenue site. The quiz uses information generated from their public record footprint, which fraudsters wouldnt be able to answer, Mr. Bucholz explains. For example, it would ask questions like, What country have you lived in previously? or Which of these people is related to you? in a multiplechoice format. If applicants pass, their refund is processed immediately. If they dont complete the quiz successfully within 90 days, the application is considered fraudulent. If the thieves try to take the quiz, they fail, he says. By incorporating this technology detour into its refund process, the Georgia government prevented more than US$24 million in fraud last year alone. Its another example of the power of public-private partnerships on big data projects, Mr. Bucholz says. Georgia acknowledged that it had a problem with fraud, and through this partnership, we are working together to solve it. PM
39
VALU
The Proposition
Every project is different, but organizations must look at each through a shared lens: business value.
BY MATT ALDERTON PORTRAITS bY JESSYEL TY GONZALEZ
If I delivered a project on schedule, on budget and within the right scope, and no one ever uses it, I wasted time and money. Thats why you need to constantly review projects for whatever it is your company considers value.
Elizabeth Virdin, PMP, Catholic Health Initiatives, Englewood, Colorado, USA
41
Elizabeth Virdin, PMP, became a project manager, she faced a daunting task shared by many in the profession: explaining to her mother what she does all day. I said, Mom, you know when you make a lemon meringue pie? Thats a project, says Ms. Virdin, analytics portfolio manager at Catholic Health Initiatives, a national not-for-profit health system in Englewood, Colorado, USA. The number of pies needed is the scope. The amount of time until theyre needed is the schedule. The ingredients are the resources, and the amount allotted for groceries is the budget. But the most important part, Ms. Virdin explains, is the taste. If the pie is a hit, it has delivered its intended value. If the guests wanted ice cream, the project would be considered a failure. If I delivered a project on schedule, on budget and within the right scope, and no one ever uses it, I wasted time and money, Ms. Virdin says. Thats why you need to constantly review projects for whatever it is your company considers value. Be it a dessert or an IT system, every project needs to deliver its intended benefits. And the only
hen
way for companies to measure success is to define those benefits upfrontand track the organizational impact after each project has been put to bed.
42
that distinguishes high-performing organizations from their low-performing peers. Organizations with high benefits realization maturity delivered 79 percent of their projects successfully, compared with 56 percent of projects completed by less mature counterparts. Elevating maturity requires measurement, says Nealand Lewis, PMP, vice president, wholesale banking program manager, Wells Fargo Bank, Charlotte, North Carolina, USA. Its difficult to manage what you dont measure, he says. If you dont have metrics in place, you cant measure business value. And if you dont measure business value, you cant service your customers needs.
79 percent
of their projects successfully, compared with 56 percent of projects completed by less mature counterparts.
Source: Pulse of the Profession, PMI
43
If you dont have metrics in place, you cant measure business value. And if you dont measure business value, you cant service your customers needs.
Nealand Lewis, PMP, Wells Fargo Bank, Charlotte, North Carolina, USA
Project leaders should start that process even before the projects launch. At Catholic Health Initiatives, Ms. Virdin and her manager apply five measures to assess the strategic value of analytic development projects in the planning process and throughout the life of the product, even after the project is completed: 1. Business value: Does the solution advance the organization toward its goals? 2. Satisfaction: Does the solution create value for the user community, relative to alternative solutions? 3. Performance: Does the solution do what it was contracted to do, at the level at which it was contracted to do it? 4. Cost: Does the solution deliver sufficient value
for its cost, and does that cost maximize savings opportunities, such as volume discounts? 5. Risk: Does the solution mitigate risk by providing appropriate security and controls? To assess value in each of these categories, Ms. Virdin and her team ask a series of yes-or-no questions based on the organizations business requirements. Its green, yellow or red, Ms. Virdin says. Youre considered green if you answer yes to all the questions. Otherwise, [the solution] isnt strategically aligned or of value in relation to the five measures, and if its not strategically aligned, it should not go any further. Rodrigo Cesar Thahira, PMP, takes a similar approach to determining value metrics in his role
44
as project management officer and project portfolio manager at Leo Alimentos e Bebidas, a food and beverage company in So Paulo, Brazil. After the organization defines its strategic goals, project leaders must define the criteria to achieve those goals and develop metrics that measure value against them. If a project supports a strategic goal of increasing sales, for instance, excellent customer service is one criterion that would be required to deliver that value. The projects ultimate success would then be measured by how well it met that business goal over time. It will be very hard to discuss business value without a clear view about what your strategic
It will be very hard to discuss business value without a clear view about what your strategic objectives are and what the organization will do to deliver its mission and reach its long-term vision.
Rodrigo Cesar Thahira, PMP, Leo Alimentos e Bebidas, So Paulo, Brazil
objectives are and what the organization will do to deliver its mission and reach its long-term vision, he says.
APPLES TO APPLES
Done right, metrics inform executives, helping them steer their organization in the right direction. Its up to project leaders to develop ways to compare disparate projects so executives have a baseline against which they can balance the entire project portfolio. By definition, all projects are unique, Mr. Lewis says. But from a metrics standpoint, you want to get all of your projects corralled on the same table so that you can look at them across the continuum from a portfolio or program standpoint and see if theyre meeting the needs of your stakeholders. The projects at Ms. Virdins organization often have very little in common. Its not apples to oranges. Its apples to pencils, she says. Still, the team must find a way to objectively compare them. To turn pencils into apples, she relies on the system of questions in the five measure areas. It doesnt matter whats in your portfolio. With a yes, no or does not apply, you can measure the performance and the value of unlike solutions. This allows us to make better decisions on the strategic fit and need, Ms. Virdin says. A shared vernacular around benefits realizationand metricscreates portfolio-level momentum that moves organizations farther, faster. The alternative, according to Mr. Lewis, is extinction. Whichever organization delivers the most value survives the longest. PM
It doesnt matter whats in your portfolio. With a yes, no or does not apply, you can measure the performance and the value of unlike solutions. This allows us to make better decisions on the strategic t and need.
Elizabeth Virdin, PMP
45
Run Like
46 PM NETWORK AUGUST 2013 WWW.PMI.ORG
the Wind
CASE STUDY
DONG Energy leveraged lessons learned to manage unexpected risks on Denmarks largest wind farm project to date. BY CLAY DILLOW
47
what is arguably the most ambitious energy agenda on the planet: By 2050, the country has pledged to stop using coal, oil and natural gas, and instead will rely wholly on renewable energy. In the short term, the nations goals are no less aggressive. By 2020, Danish energy authorities plan to provide half of the countrys electricity from wind power, effectively doubling the countrys wind energy resources in just eight years.
The Danish Energy Agency is off to a strong start with the US$1.7 billion Anholt offshore wind farm now nearing completion. The farm is located between the Danish mainland and the island of Anholt in the Kattegat, the body of water between Denmark and Sweden that joins the North and Baltic Seas. Now Denmarks largest, it covers 88 square kilometers (34 square miles). Its 111 turbines have the capacity to generate 400 megawatts (MW) of electricity, enough to power 400,000 Danish homes, corresponding to 4 percent of the countrys overall power consumption. To meet the nations 2020 energy goals, Danish authorities plan to roll out an additional 1,500 MW of wind energy over the next five years. Doing so means Denmark cant afford a major delay, and Danish energy authorities are making sure the energy companies constructing and managing the wind energy projects cant afford one either. DONG Energy, based in Skrbk, Denmark, won the tender offer to construct and manage the Anholt project in July 2010 after a one-year bidding and review process. The Danish government had already completed initial environmental studies of the site, essentially handing DONG Energy a development project green-lit for construction. In exchange, the Danish Energy Agency wanted 400 MW installed by the end of 2013. Failure to meet the deadline would result in a penalty of DKK400 million. If the first kilowatt-hour wasnt delivered to the grid by the end of 2012, DONG Energy faced a DKK600 million penalty. From the moment it received the contract, DONG Energy had just three and a half years to develop and complete the entire project. In a more ordinary construction project, its costly to be lateyou have your own costs or revenues to
48
Pieces of the Anholt turbines were loaded onto ships (opposite page) and assembled at sea (pictured below).
losebut here we had these heavy fines, says Claus Bjle Mller, DONG Energys director of engineering, procurement and construction for the Anholt project, Gentofte, Denmark. Basically, it was not an option to be late at all.
project managers began working to shield the project from unforeseen problems, primarily in the supply chain. They did this by front-loading the project as much as possible, Mr. Mller explains. Prior to winning the tender, the team put down costly deposits on highly specialized construction vessels critical to the project, ensuring they would be ready and available if DONG Energy won the contract. The company also hammered out a conditional agreement with German wind turbine-maker Siemens to provide the hardware for the site. And project managers began mapping out a development and construction schedule rigorous enough to keep the project on deadline but flexible enough to bend under the stresses of a complicated infrastructure project. In the initial planning, we had to make sure that if we were delayed in one activity we could still start up the next activity without major consequences, Mr. Thomsen says. Project managers built enough time into the schedule to provide some buffers that would allow for optimizing certain aspects of the projectparticularly the variable and risk-heavy tasks of installing the turbine foundations and laying undersea transmission cables. They created a timeline that would bring the project to a close six months ahead of scheduleif there were no delays. When construction began in January 2012, the risks began manifesting themselves almost immediately. The schedule was so tight that early on DONG Energy had to sign off on prefabricated components for the turbine foundations before fully completing all of its geophysical site evaluations of the seabed. As crews made the detailed soil investigation, they found that in some places the seabed was too soft, which forced engineers to abandon some positions completely and
We have a lot of specialists capable of managing the engineeringof seeing through the design risk and the construction risk. Our project managers help us mitigate that risk.
Claus Bjle Mller, DONG Energy, Gentofte, Denmark
49
2050
The Anholt offshore wind farm:
n
When Denmark projects 100% of its energy will come from renewable resources
50%
Covers 88 square
Wind Farm
DENMARK
Transmission line
megawatts of electricity. Thats enough to power 400,000 Danish homes, meeting 4% of the countrys energy needs.
Copenhagen
PROJECT STATs
US$1.7 billion
Cost:
2010-2013 18 months
Construction Phase:
Timeline:
Offshore Resources:
adjust the wind farms entire layout on the fly. In addition, because of an early supply-chain bottleneck, the manufacturer of the massive monopiles that anchor the turbines to the seafloor fell behind on delivery. We started the project with a vessel that costs more than US$200,000 per day sitting around idling, waiting for supply components, Mr. Bjle Mller says. That was not the optimal start for the project. Luckily we had a schedule and initiatives in place that could absorb this, and it didnt have much further impact on the project. One of those initiatives involved introducing roughly 30 local businesses as potential subsuppliers to DONG Energys main contractors working at the Anholt site. This strategy served two purposes. Primarily, it shortened the physical supply chain for some contractors, reducing risk and helping avoid delays. But it also involved local community members and local economies in the project, which helped keep one of DONG Energys most important stakeholdersthe Danish public involved in the Anholt enterprise. We are received very well locally by both the people in the area and the local authorities, and that helps drive our activities locally, Mr. Thomsen says. As the project moved into full turbine assembly and construction, the logistics and scheduling became increasingly complex, involving some 3,000 people and 100 marine vessels. The fleet included several highly specialized, in-demand construction ships that were not always readily available. Project managers had to align 111 turbine deliveries with the availability of those specialized vessels 111 times during 111 weather windows. The buffer zone the team had built into the schedule provided the flexibility the project required at this stage. The teams intense focus on planning, logistics and supply-chain timing kept major risk factors at bay. We didnt have one specific major problem or victory, though there were a lot of small ones, Mr. Thomsen says. Small problems are manageable, and thats exactly what Anholts project management team was aiming for.
A Model Project
For DONG Energy, the Anholt farm is a large project, but its also just one in a portfolio. The company is involved in other major wind proj-
50
Specialized marine vessels were required to assemble the wind farms 111 turbines on the open water.
ects in the United Kingdom and Germany, and it hopes to be part of Denmarks future energy projects. As such, DONG Energy must continue to refine its project management. We are focusing a lot on learning from what we have done so far and keeping that knowledge in our organization, Mr. Bjle Mller says. But it can be challenging to learn from these lessons because of the timing of various projects. They take several years to construct, and it can be hard to channel the lessons from one project into the next one. Given that every large-scale energy project is differentand wildly complexknowledge can easily slip through the cracks, Mr. Bjle Mller says. To prevent brain drain, DONG Energy employs formalized strategies for maintaining its knowledge base, such as brainstorming between project managers and maintaining a searchable database of case studies based on extensive interviews with its project teams. Yet DONG Energys most important knowledge assets are the project managers themselves. We have built a lot on our experience, but its challenging to get the most out of it, Mr. Bjle Mller says. Theres a lot of know-how embedded in people, so we cycle the same people on projects instead of just bringing in consultants or
outside people whose experience we are less sure of. This practice seems to have paid off. DONG Energy met its 2012 initiation deadline and connected the final turbine to the grid in July. While commissioning will continue through August, the team met its goal of delivering six months before the deadline. That extra time wont be spent idly. The Danish Energy Agency is preparing two more tenders for another 1,000 MW of offshore wind energy via 400-MW and 600-MW installations slated for similarly rapid turnaround (January 2017 and January 2018, respectively). The tender process will start later this year, and with construction at the Anholt site winding down, DONG Energys engineers and project managers are eyeing their next possible offshore challenge. Weve come out with a project of this size on time and on budget, without any major technical issues or major delays or disruptions, Mr. Bjle Mller says. So were showing that it can be done. PM
We are received very well locally by both the people in the area and the local authorities, and that helps drive our activities locally.
Flemming Thomsen, DONG Energy, Skrbk, Denmark
51
52
KING C I T S
Money may attract a star project manager, but it will rarely keep one around.
BY LILLIAN CUNNINGHAM PORTRAITS BY CLAUS LEHMANN
53
Think
The lack of power demotivates the project and program managers.
Renato Machado de Oliveira, PMP, Deutsche Bank, So Paulo, Brazil
for a moment about an organizations truly stellar project managers. Theyre the ones who consistently exceed expectations, who make the executive team look good and who seem poised to rise within the ranksif organizations can keep them around. In the quest to keep top talent, the gut reaction is often to increase compensation. But using salary bumps as the go-to retention tool may actually hurt an organizations chances of retaining star project managers. The major mistakes I see basically boil down to one thing: managers assuming the best way to retain talented people and keep them engaged in the work is money, says Teresa Amabile, PhD, co-author of The Progress Principle and a professor at Harvard Business School, Boston, Massachusetts, USA. Even in tough economic times, not everyone can be won over with cold, hard cash, she says. Managers make that mistake because, in a way, money is easy, Dr. Amabile says. Of course, its costly, but its quantifiable. Much harder is mastering the skill of targeting qualitative, personalized incentives and rewards to top project practitioners. Yet retaining top talent is even more essential given todays sizable talent gap: 83 percent of organizations report theyve had difficulty finding qualified project management candidates to fill open positions in the past year, according to PMIs Pulse of the Profession In-Depth Report: Talent Management. With those kinds of numbers, organizations can never cross employee retention off the to-do list, says Renato Machado de Oliveira, PMP, assistant vice president and Latin American program manager at Deutsche Bank, So Paulo, Brazil. Its a bit like cleaning a skyscraper, he says. When you finish one side of the building, you need to start cleaning the other side again. Your work is never done.
54
Building Leaders
If organizations get past the fact that money isnt everything, the answer may lie in offering autonomy, coupled with clear goals and work that employees find meaningful. People need to have a sense that theres a mountain to climb, and its up to them to figure out how to climb that mountain, Dr. Amabile says. Creating a career path can motivate project practitioners to invest in advancing at one organization, rather than trying to leapfrog ahead by changing jobs. The Pulse talent management report shows that four out of five organizations find career paths that move senior project managers to senior management positions are effective. The best managers also give top performers the opportunity to spend more time doing the type of work they prefer, Dr. Amabile says. Too often, project managers have the power to communicate decisions, but not to make decisions themselves. The lack of power demotivates the project and program managers, says Mr. Machado de Oliveira. Sometimes star employees just need some space. One of the key things with top performers is that you dont micromanage them. You dont tell them how to do things. You tell them what has to get done, says Brian Grafsgaard, PMP, PgMP, director of professional services at IT consulting firm Quality Business Solutions, Minnetonka, Minnesota, USA. I wouldnt give them the answers. I would give them the problem. Then, over time, top-performing project managers can take sole ownership of larger and higher-profile projects, he says.
People need to have a sense that theres a mountain to climb, and its up to them to gure out how to climb that mountain.
Teresa Amabile, PhD, Harvard Business School, Boston, Massachusetts, USA
of organizations report theyve had difculty nding qualied project management candidates to ll open positions in the past year.
Source: Pulse of the Profession In-Depth Report: Talent Management, PMI
83 percent
55
One of the key things with top performers is that you dont micromanage them. You dont tell them how to do things. You tell them what has to get done.
Brian Grafsgaard, PMP, PgMP, Quality Business Solutions, Minnetonka, Minnesota, USA
A Custom Approach
To craft the right approach to motivating and retaining star performers, executives need to know them well enough to understand their motivations. Sometimes we treat all project managers in just one way. This is not a good thing. We must differentiate them, Mr. Machado de Oliveira says. Organizations are taking a hit from the global talent No single combination of compensation, gapbut few are investing in tried-and-true solutions. training and autonomy will work for all project managers. If the assets they bring to the company are unique, the methods of motivating them should be equally so. Organizations must provide 53% top talent with opportunities 48% for advancement and growth, and also ensure those opporFour in ve organizations are struggling to tunities align with the persons nd project managers to ll open positions. passions and career aspiraThis lack of qualied talent has led to: tions. Knowing project man... and 53% Yet, 48% of agers more personally, you say they need organizations can tailor your approach and Lower quality to increase their have scaled better apply these different focus on back training techniques and tools, Mr. mentoring. Less effective innovation programs due to Grafsgaard says. recent economic Strategic initiatives being Even managers who think conditions cancelled or delayed beyond compensation can get
tripped up here. They identify a new area of responsibility or a prestigious opening in the company they use to reward a star employee, only to later realize it wasnt the type of opportunity that person found fulfilling. Mr. Girton recalls the time he lost a top project manager even after putting him on a high-profile project as a reward for his excellent work. While Mr. Girton was focused on the prestige and intellectual challenge it would afford the star performer, he failed to take the time to understand whether that was what mattered most to the employee. I talked too much about the business side and didnt really pay enough attention to the personal side, Mr. Girton says. It turned out that the highly stressful project, with commensurately long hours, was precisely what the star didnt want right then. Because of his family situation, he was more interested in and motivated by rewards in the form of work-life balance. Safeguarding against dangerous assumptions means checking in with project managers far more often than the annual formal feedback sessionbut thats rarely done. To stay informed, organizational leaders must set aside time for one-on-one career meetings that focus on perRenato Machado de Oliveira, PMP sonal goals rather than project goals, says Mr. Grafsgaard. He has found that bimonthly talks work well. That level of communication can help reveal whether one all-star craves recognition and would respond most to a title change while another has always wanted to visit China and would most value the opportunity to work on a project there. I always get to know themwhat their interests and passions are, he says. Building relationships also builds ties to the organization. Loyalty is even more critical with top performers because, ultimately, they have a lot more opportunities to leave, Mr. Grafsgaard says. Managers should treat these top performers as the key assets they are. If they need to be replaced, it could take years before you regain that level of proficiency. PM
Sometimes we treat all project managers in just one way. This is not a good thing. We must differentiate them.
57
The Future is
No
Prepare for a career move by sharpening the skills needed for tomorrows project, today.
BY CINDY WAXER
58
ow
When a project manager
has done a job well, it shows. But senior management looks for more than a sparkling project record when promotion time rolls around. Project managers need to show they have the ambition and ability to learn the skills that will take them to the next level. And now is a prime time to make a move. A PwC survey identified the availability of key skills as one of the three top concerns facing CEOs worldwide in 2013. To capitalize on this shortage, project managers cant shy away from opportunities to learn something new. We have our comfort zones so sometimes its hard for us to break out, says David Roberts, PMP, a project manager at the National Park Service, Denver, Colorado, USA. But venturing into the unknown is the only way to find new frontiers. Here are three tips on how to take the first step forward.
To communicate effectively, you must have a business view of the project, not only a technical understanding.
59
Skill development is only as valuable as the selfpromotion that comes along with it. To stand out from the pack, project managers must demonstrate to their organizations senior leadership theyve taken the time to become leaders themselves. Delivering a project on time, under budget and with the right quality is not enough, warns Mr. Messaggi. Project managers also need to show senior executives theyve worked well with the project management team. One of the best ways to exercise and demonstrate leadershipand curry favor with a supervisoris to volunteer for responsibilities related to the job they want. Request more responsibility piece by piece, slowly picking up the skills you need for the next step in your career, Mr. Roberts says. As you do so, youll become more qualified for the next level, and seniorJuliano Messaggi, PMP, CPQi, level management will take So Paulo, Brazil note of that. PM
Delivering a project on time, under budget and with the right quality is not enough. Project managers also need to show senior executives theyve worked well with the project management team.
60
strategy into
Whether youre managing a $10,000 project or a billion dollar program, it means coordinating, communicating, scheduling, and maintaining focus. You need to have the unique ability to do both: get into the nuts and bolts as well as step back to take a macro view.
action
A challenging curriculum
that goes beyond the PMBOK Guide and exposes students to international methodologies, decision sciences, advanced project management applications, and management
2201 G Street, NW Funger Hall, Suite 415 Washington, DC 20052 phone: 202.994.6145 email: mspminfo@gwu.edu
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COMPLEX
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and even trickier
TEAMS
The MS in Project Management program at the GW School of Business blends the study of advanced project management techniques with general management principles. The innovative, ethics-infused curriculum balances real-world practice and academic theory, developing the skills managers need to integrate complex projects, motivate people, and achieve cost-effective results. Learn on campus in Washington, D.C., or wherever its convenient for you.
The exibility of our program allows you to create a course of study that works with your schedule. And, our online and on-campus courses share the same professors, lectures, projects and assignments, and university resources. The MSPM degree may be completed: On campus Entirely onlinefrom any location in the world Both on campus and online On a full-time or part-time basis
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IILs Leadership Certification Program empowers you to make a unique impact on your organization and the people you lead. Six workshops are integrated with individual coaching calls between you and your personal leadership trainer, and additional dimensions support the development of new skills and behaviors. Leadership Strategy for Operational Excellence Fostering Accountability and Innovation Leading Operational Excellence Successfully Influencing Others Leading Organizational Change Leading with Decisiveness
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Positive Leadership in Project Management: A Practical Guide to Enhancing Individual, Team and Organizational Performance By Frank P. Saladis I recommend that all project leaders add this book to the top of their reading list Kay Wais, President of Successful Projects
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Companies across the nation need employees who can lead projects effectively and efciently. As the complexity of projects continues to grow, so does the need for skilled project managers. And when it comes to expanding your leadership expertise and credentials, it makes sense to choose the leader in project management training Villanova University Ranked #1 in the North by U.S. News & World Report. Villanova University has created a learning experience designed for students of all levels of project management educational needs. The Master Certicate in Applied Project Management and Master Certicate in IS/ IT Project Management programs, based on the PMBOK GuideFifth Edition, provide the most up-to-date knowledge as you prepare for the PMP certication exam . Whether youre looking to grow your career, begin a new one or to increase your salary potential, PMP certication is a proven way to reach your goal. Once youve achieved your Villanova master certicate or have earned your PMP certication, distinguish yourself as an elite project manager with the Advanced Master Certicate in Project Management (Applied or IS/IT) to maximize your effectiveness as a project leader.
Villanovas online offerings include more than just project management. To maintain your PMP certication and earn valuable PDUs, choose from one of the many multi-course master certicates in a wide variety of indemand professional disciplines including Six Sigma, Business Analysis, IS Security, Contract Management, Business Intelligence and more. All programs offer outstanding faculty, and subject matter experts that are renowned in their elds. Villanovas online classroom is second to none! And with dynamic features such as live, facultyled virtual classes, streaming video lectures, interactive discussion boards and chat rooms youll enjoy rich, real-time interaction at your convenience anytime, anywhere!
For information on any Villanova University master certicate program visit www.VillanovaU.com/certicates.
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Peerasit Patanakul, PhD, Audrey Curtis, PhD, and Brian Koppel, MBA, PMP
Business Driven Project Portfolio Management: Conquering the Top Ten Risks that Threaten Success
This book covers the top 10 risks that threaten portfolio management success and offers practical alternatives to help ensure desired results. Written from a business perspective, it contains the executive insights, management strategy, tactics, processes and architecture needed for the successful implementation, ongoing management and continual improvement of portfolio management in any organization. Also included are case examples that organizations of all shapes and sizes will find instructive for effectively managing portfolios.
J. Ross Publishing, 2011, ISBN: 9781604270532, hardcover, 320 pages, $56.95 Member, $59.95 Nonmember
Roland Gareis, Martina Huemann, Andr Martinuzzi, Claudia Weninger and Michal Sedlacko
68
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ince its initial release in 2003, the Organizational Project Management Maturity Model (OPM3) has been used by organizations globally to minimize risk, select and drive the right projects, and align investments to accelerate organizational success. Organizations turn to OPM3 because it helps them bridge the gap between strategy and individual projects, and learn how to advance their strategic interests through the application of project management principles and practices. OPM3 accomplishes this by first enabling organizations to assess their project management capabilities and then providing them with the practical techniques to decide where and how to make improvements in critical areas, such as portfolio, program or project management. Organizational Project Management Maturity Model (OPM3)Third Edition is the result of years of development and continues to build on the foundation formed by the input of hundreds of project management practitioners and consultants from around the world. This newest edition not only delivers revised and updated best practices but also encompasses a multitude of expansions and changes, including: Expanded Alignment With Global Standards The new edition significantly expands its alignment with the latest editions of A Guide to the Project Management Body of Knowledge (PMBOK Guide), The Standard for Program Management, The Standard for Portfolio Management and other maturity models such as Capability Maturity Model Integration (CMMI). Improved Communication of Business Value The edition better communicates the practical business value of using OPM3 as the standard by which an organization measures itself and transforms organizational strategy into business results. Using the Model This section has also been improved to better enable the OPM3 practitioner to acquire the knowledge needed to assess organizational capabilities and facilitate meaningful performance improvements. Content Restructuring The most pronounced restructuring of this edition of OPM3 is the transition of content to harmonize with the structure of other PMI standards, including inputs, tools and techniques, and outputs. Organizational Project Management Maturity Model (OPM3)Third Edition is a must-buy for anyone seeking to assess and improve organizational performance.
Project Management Institute, 2013, ISBN: 9781935589709, paperback, 246 pages, $76.75 Member, $95.95 Nonmember
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CLOSING Credit
PROJECT: A cliff-hanging path BUDGET: 6 million LENGTH OF PATH: 0.5 miles (0.8 kilometers)
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A project team in Islandmagee, Northern Ireland is putting itself in a tight spot. The team aims to restore a bridge-speckled path along the picturesque Gobbins cliffs. But the winding route, which offers sweeping views of the Irish Sea, also provides limited space for construction crews. Access is either from the top of the cliff or via the sea, Morgan Haylett, project manager, RPS Consulting Engineers, told BBC News. Both routes introduce logistical challenges and safety risks, such as unpredictable rock slides, that require creative project planning. For answers, Mr. Haylett looks to the past. Hes relying on lessons learned from the sites original bridge construction project, dating back to 1902. Then, the bridges were shipped by barge and lifted into place. The team intends to leverage this process to reconstruct several bridges along the route. Will history repeat itself? That remains a cliff-hangeruntil scheduled construction begins next month.
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