EXECUTIVE PROJECT MANAGEMENT

P D Rwelamila, PhD, PrCPM

Professor of Project Management
Graduate School of Business Leadership
University of South Africa (UNISA)
rwelapmd@unisa.ac.za
Ph.: 011 6520236
Cell.: 0823783512
CHANGE TO PROJECT ORIENTED
CONTEMPORARY ORGANISATIONS -
strategic emphasis for projects & upper
management influence
Relevant Chapters:
Graham & Englund (2004): Chapters 1,2 &3
CHANGE TO PROJECT ORIENTED
CONTEMPORARY ORGANISATIONS -
strategic emphasis for projects & upper
management influence
Project management is no longer a special
need management - 7 forces!
A Project part of a complex environment
Drivers of change
 Forewords (1)
“We found that too many leaders and managers,
particularly at the upper and senior levels, were
inclined to view project management as a special case
management – a minor departure from the proper or
expected ways of managing the organizations. Too
often, these managers failed to appreciate the
strategic role that projects can play in the
management of their organizations. Up until the last
few years, many managers tended to tolerate rather
than fully accept project as the way to enhance
organizational effectiveness. This caused PMs,
functional managers, and project professionals to see
themselves in ambiguous roles in supporting project
initiatives.” :Cleland & Ireland (2007)
 Foreword (2)
“Aligning the public organization’s (my
emphasis) portfolio of projects to maximize their
contributions to strategic objectives takes a
highly coordinated effort. It requires more than
the old "grenade over the wall" approach, in
which the planning staff identifies and
characterizes the project and then tosses it to an
uninformed and uninvolved project management
group that is supposed to complete the project. -
everyone must be engaged with the project
before charging ahead.”
:Dinsmore (1999)
5
 Forewords (3)
“The complexities and challenges faced byToyota are
common in today’s business environment.
Globalization and technology continue to move
forward with ever increasing speed. The changing
business landscape brings new challenges and
opportunities; many of them involve effective team
work as a threshold competency. ……….Uncertainties
and risks introduced by technological, economic,
political, social, and regulatory factors are always
present and can be an enormous challenge to
organizing and managing the project teams.”
:Thamhain (2005) & Cleland & Ireland (2007)
 Forewords (4)
“There are huge opportunities for eliminating wasted
time and effort in almost every project . In
manufacturing, Toyota estimate that only 5% of
activities actually add value, 35% are necessary but
do not add value, whilst the remaining 60% is pure
waste – ‘muda’ in Japanese! By halving the effort in
designing a new car, they show this ‘muda’ can be
reduced by good project management. Every
PM…has not only to manage their own project but
seek ways of eliminating the ‘muda’ in their systems
so they can do more for less, and more quickly next
time!” :Jones (2003): Lean Enterprise Research Centre, Cardiff
Business School, UK
7 Primary Forces of Change Facing
Contemporary Organisations
Compression of product life cycle
Global competition
Knowledge explosion
Corporate downsizing
Increased customer/client focus
Rapid development of non industrialised countries
& closed economies
Small projects represent big problems
PRIMARY FORCES FACING
CONTEMPORARY ORGANISATIONS
Compression of the product/service life cycle:
computer aided design (CAD) & manufacturing
(CAM), have forced radical changes in the product life
cycle & clients are more demanding for improved
services.
Global competition:
transformation from national or regional economies to
one global economy during the 1970s, has brought
pressures on quality improvement and cost
containment
PRIMARY FORCES (Contd.)
Knowledge explosion
the growth in new knowledge has increased the
complexity of projects because projects encompass the
latest advances & services are also more technologically
complex.
it is hard to find a new product that does not contain at
least one microchip
• the need to integrate divergent technologies (through PM)
PRIMARY FORCES (Contd.)
Corporate downsizing
after years of stressing growth and ‘big is better’,
organisations have begun to face the harsh reality that big
is also costly
downsizing (or rightsizing if you are still employed) and
sticking to core competencies have become necessary
for survival of firms. Middle management is a mere
skeleton of the past - PM is replacing middle
management
it is rare today to find any major project performed
totally in-house - outsourcing, where the PMs have to
manage their own people but also their counterparts
in different organisations
PRIMARY FORCES (Contd.)
Increased Customer focus
the majority of customers no longer simply settle for
generic products/or services. They want customized
products/services that cater for their needs
the customized environment requires a much closer
working relationship between provider & receiver

• PM is critical both to development of customized products

and services and to sustaining lucrative relationships with
customers
PRIMARY FORCES (Contd.)
Rapid development of Developing Countries &
Closed Economies
the collapse of the Soviet Union, Apartheid, etc., and
the gradual opening of Asian communist countries, SADC
and other African countries have created an explosion in
pent-up demand for consumer goods &
infrastructure development
there is scramble to introduce new products and
services to these new markets & many firms are using
PM techniques to establish distribution channels &
foreign bases of operations
PRIMARY FORCES (Contd.)
Small projects represent big problems
the velocity of change required to remain
competitive or simply keep up has created an
organisational climate in which hundreds of projects are
implemented concurrently - the climate has created a
multi-project environment and a plethora of new
problems.
THE FORCES ARE REAL!
PM is ideally suited for a
business environment
requiring accountability,
flexibility, innovation,
speed, and continuous
improvement.
THE IMPACT OF THE 7 FORCES
it is no longer possible to to use traditional
management methods to solve problems
(individuals solving problems!!) - the need to
use teams to solve problems (combined
skill?)
organisational response to the forces cannot
take the form of an instantaneous
transformation from the old to the new
A Project - Part of a Complex System
Inputs & outputs
Sector/Industry environment
Country/Economy environment
Global environment
the need to understand the dynamics of
environments
 Cost
Project stakeholders
H&S +Env.
Quality
Utility Schedule

Inputs Project & POO forces Output(s)

Sector/Industry forces

Country/Economy forces

Global Forces

A 3-Dimensional maze –environment

H&S – Health and Safety; Env. - Environment
Lack of strategic emphasis –What happens?
Step1: -Project creeps - managing ‘infinetum’ – stress
because there is no process for project selection (too many at
one time & not successful)
Step2: -‘the blame culture’ – PMs appointed by accident -
finding victim(s)
Step3: -the above leads to accidental PMs training - org.
norms do not fit with knowledge base acquired
Step4: - fighting between PMs - lack of upper management
support & direction leads to PMs fighting among themselves –
departments decide on projects to support
Step5: - blame the PManagement process - re-
organisation becomes an issue & PM problems are put on hold!
Projects languish & people are re-organised
Step 6: -revitalization - new leadership (this could lead to
step 1 situation)
 Drivers of Change
Committed Leadership - managers with burning
commitment to raise quality & efficiency
A Focus on the Customer - what customer want?
Activities not adding value are waste & should be
eliminated
Integrate the Process & the Team Around the
Product/Service - avoid fragmentation of operations
A Quality Driven Agenda - right first time
Commitment to People - highly trained people &
respect all participants
Learning From Others(1)
Car Manufacturing Industry (World-wide
benchmarking studies - early 1990s):
2:1 gap in performance (UK vs Japan)
100:1 gap in quality
• opening of Nissan, Toyota, & Honda plants in the UK
• implementation of “lean production” have led to:
time to introduce a car (from 40 to 15 months); the
rate of supplier defects delivered to assembly plant
(from 3% to 5 parts per million); placing an order on
the factory to sale to customer (120days to 15 days)
• Driver: Dept. of Trade & Industry (DTI) = PPP
WHAT IS A PROJECT? (2)
A project is a unique, transient
endeavour, undertaken to achieve
planned objectives, which could be
defined in terms of outputs, outcomes or
benefits.”

(APM, 2012)
 PROJECT MANAGEMENT
“…the application of knowledge, skills, tools and
techniques to project activities in order to meet
stakeholders needs and expectations from a project.”
-(PMI, 2014):PMBoK

“The process by which projects are defined,

planned, monitored, controlled and delivered so
that agreed benefits are realised.”
–(APM, 2012): APMBoK
FEATURES OF A PROJECT
Primary features:
a project anatomy (life cycle) (a beginning and end,
with a number of distinct phases in between) -Fig.1-1
a budget with an associated cash-flow
activities that are essentially unique and non-repetitive
use of resources, which may be from different
departments & need co-ordinating
a single point of responsibility (I.e. the project
manager)
team roles & relationships that are subject to change &
need to be developed, defined & established
 Total Project Life Cycle

Time

Plan Accomplish Operation/ Use

Phase 4 Phase 5 Phase 6

Phase 1 Phase 2 Phase 3
TERMINATION OWN & OPERATE TRANSFER
CONCEPT DEVELOPMENT IMPLEMENTATION
Finish Finish Finish
Conceive Develop Execute
(F) (G) (H)
(C) (D) (E)

•Finalize product(s) •Project operate •Quality of Facility/

•Gather data •Appoint key team members
•Identify need •Conduct studies
•Establish •Develop scope baseline:
•goals, objectives • end product (s)
•basic economics, • equality standards
feasibility • resources
•stakeholders • activities
•risk level •Establish:
•potential team • master plan
•Guesstimate resources • WBS
•Identify alternatives • policies and procedures
•Present proposal •Assess risks
•Obtain approval for next •Confirm justification]
phase •Present project brief
•Obtain approval to proceed
Set up
•Review and accept commercially service
•organisation
•Transfer product •Project produces •Evaluation process
•communications
responsibility cash flow to pay
•Motivate team
•Evaluate project lender’s debts interest
•Detail technical requirements
•Document results and principal
•Establish:
•Release / direct resources repayment.
• work packages
•Reassign project team •Cost (operation &
• detailed schedule
maintenance, etc)
• information control
•Training?
• systems
•Procure goods and services
•Execute work packages
•Direct/monitor/forecast/
control:
• scope, quality, time, cost
•Resolve problems

Project Life-Cycle [generic] (developed from the PMBOK series. Volume 1, Wideman and Fellow, 1991, p111-2)
 PM & PROJECT
GOALS/PARAMETERS
moving from a triangle to a pyramid!
balancing goals/parameters through
planning (defining work requirements,
quantity and quality and resources needed) &
monitoring (tracking progress, comparing
outcome to predicted outcome; analysing
impact; and making adjustments)
 Aligning Projects with Strategy
“Aligning the organization’s portfolio of projects
to maximize their contributions to strategic
objectives takes a highly coordinated effort. It
requires more than the old "grenade over the
wall" approach, in which the planning staff
identifies and characterizes the project and then
tosses it to an uninformed and uninvolved
project management group that is supposed to
complete the project. - everyone must be
engaged with the project before charging ahead.”
- Dinsmore (1999)
27
 Questions to @ PBO
 Is the Organization committed to using PM
strategically?
 Is there a policy within the Organization formally
preparing project scopes/charters?
 Is synergy created between the Organization planning
group and those responsible for project
implementation?
 Is there a formal process within the Organization of
senior management making sure that projects do not
veer away from chartered objectives?
 Default Project Based Organizations
Project unlinked to coherent strategies
Upper managers are unaware of the total
number & scope of projects being undertaken
Lip service to learning from projects (audits &
close-out reports out of the equation)
Window dressing project management
information systems
The core-team is very weak and chaotic
Bridging the Gap Between Organisation
Strategy & Projects
– in the face of adversity!
 Grenade Over the Wall Syndrome ?
Unsuccessful
organization/development strategy
– not achieving
success/developmental goals
Inefficient projects –
failing to meet budget,
Weak impact on quality, utility and
stakeholders – unable to schedule expectations
meet technical specs, to
address stakeholders
needs

Unsustainable potential – unable to contribute towards

profits/ or improving the standard of living
 Bridging the Gap!! (1)
“ Successful private & public sector (my emphasis)
project requires bridging the gap between the
organization vision and the projects underway, which in
turn calls for co-ordination among organization
strategies, general project management, specific project
alignment, and project implementation.”

Dinsmore (1999)

BRIDGING THE GAP BETWEEN ORGANIZATION

STRATEGY & PROJECTS
 FROM ORGANISATIONAL STRATEGY TO PROJECT IMPLEMENTATION
PROJECTS FOCUSSED
STRATEGIC PROJECTS DIRECTLY TO STAKEHOLDERS
PROJECT C PROJECT D

PROJECT-SPECIFIC PRINCIPLES
Product/Service Targets PROJECT E
PROJECT B Interfacing
Monitor
Company Expectations
GENERAL PROJECT
Objectives
ALIGNMENT
Stakeholder Organization
Management Management Create PROJECT F
Product &
PROJECT A Mission, Service
Vision ORGANIZATION Portfolio
MANAGEMENT Prioritization
Risk Analysis Procurement
Operational Strategic Project
Goals Planning
PROJECT L PROJECT G
Organizational
Multi- Overview
Disciplined Team
Teams Mobilization
Source Logistics
PROJECT K Resources PROJECT H

PROJECT J
PROJECT I
OPERATIONAL PROJECTS
SPECIAL PROJECTS?
CHANGE TO PROJECT ORIENTED
CONTEMPORARY ORGANISATIONS
Normally, the existing organisation is not a
project oriented organisation (it is a project
oriented organisation by default)
Moving from a ‘default’ environment requires
what Rogers (1983) refers to as “Successful
change agent..”
7 Critical Roles for Successful Change Agents
Rogers (1983) (1)
(1) Developing the need for change - failure is not usually
caused by just one person but is the result of a combination
of problems (around the drivers of change?)
(2) To be accepted as trustworthy & competent - upper
managers must act with integrity & authenticity - “talk the
talk” & “walk the walk” (drivers of change to define the
culture of the org.)
(3) Diagnosing problems from the perspective of their
audience - avoiding ‘the blame culture’ - the need to see
problems from the PM’s point of view & not to regard
the PM as a culprit.
7 Critical Roles for Successful Change Agents
Rogers (1983) (2)
(4) Creating the intent to change thro’ motivation -
across the board acceptance of initiatives for change (around
the drivers of change?)
(5) Working thro’ others in translating intent into action
- working as a collective (PMs & Operational managers)
(6) Stabilizing the adoption of innovation - ownership of
initiatives across the organisation.
(7) Going out of business as change agents - change
initiatives are projects (with start & end dates) - if the
above steps have been successful, then the need for change
agents vanishes
How mature is your organisation? (1)
Capabilities of applying PM good practices
against others in a particular industry/or
sector:
Stage 1 (Initial): no formal methodology, training, project
review process, project authorization process, project risk
assessment; projects are typically late, over budget, no
utility considerations, poor quality.
Stage 2 (Repeatable): move (just) above Stage 1; 25-50%
of projects deliveries are on time, within budget, utility
issues addressed & there are quality considerations
Stage 3 (Managed): 50/50 move on Stage 1 issues; 50-
75% of project deliveries are on time, within budget, utility
issues addressed & there are quality considerations
How mature is your organisation? (2)
Capabilities of applying PM good practices
against others in a particular industry/or
sector:
Stage 4 (Distributed): Opposite of Stage 1 characteristics;
Certification in PM is a requirement for all PMs; All
employees require basic PM knowledge & skills to be
employed; 75-95% of project deliveries are on time, within
budget, clear utility considerations and quality.
Stage 5 (Sustained): management by projects is an
organisation philosophy; Executives & managers are PM
certified; all PMs must complete internal
qualification/certification program; continuous improvement
is a norm; and 99% of projects are within Q, C,T, & U
levels.
How mature is your organisation? (2)
The amount of time it takes an organisation to
achieve full maturity vary significantly from one
organisation to another
No organisation has reached the 5 stage
Many organisations have achieved the 3rd Stage &
parts of the 4th Stage
It is not unusual for an organisation to exhibit some
of the characteristics in more than one stage
It is not possible to skip a stage (because maturing
is a process that requires time)