040_Reinventing Project Management Slides
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Reinventing Project Management
Part 1 slides
Operations
Projects
1800s
Agricultural society
1900s
Industrial society
2000s
Information society
Time Industries,Companies,
Society
The Increasing Share of Projects
The motivation
• The assumption: – Different projects are managed in different ways.
• The literature and the discipline assume: – “a project is a project is a project.”
• There is no accepted framework
• The need: – A framework to distinguish among projects – Practical guidelines on how to manage projects in different
ways
The Questions
• How to Distinguish Among Projects – Dimensions?
• How to Classify Projects on Each Dimension?
• How to Manage Different Project Types?
• Is There More than One Way?
What Impacts Project Type?
EnvironmentProduct
Task
Project
UCP NTCP
Novelty
Pace
Complexity
Technology
Uncertainty
Complexity
Pace
Uncertainty - at the moment ofproject initiation
Complexity -size, # of elements,variety, interconnectedness
Pace - available time frame
Risk
The UCP Model
Four Dimensions for Distinction Among Project Types
• Novelty – How new is the product to customers and users– Derivative, Platform, Breakthrough
• Technology – How much new technology is used– Low-tech, Medium-tech, High-tech, Super High-tech
• Complexity – How complex is the system and its subsystems– Assembly, System, Array
• Pace – How Critical is the Time frame– Regular, Fast/Competitive, Time-Critical, Blitz
The Project Diamond - Assessing a Project’s Risk/Benefit and Selecting the Right Management Approach
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Denver International Airport Project
Automatic Bag –Handling System
Airport Construction
Project
Impact onCustomer
Impact onTeam
Business & Direct Success
Project Success
• Meeting schedule
• Meeting budget
• Changes• Yield• Other
efficiencies
• Meeting requirements and specifications
• Benefit to customer
• Extent of use• Customer
satisfaction & loyalty
• Brand name recognition
• Team satisfaction
• Team morale• Skill
development• Team
member growth
• Team members’ retention
• No burnout
• Sales• Profits• Market share• ROI, ROE• Cash flow• Service quality• Cycle-time• Organizational
measures• Regulations
approval
• New technology
• New market• New product
line• New core
competencies• New
organizational capabilities
Preparing for Future
Specific Success Measures
Efficiency
Short Medium Long
Timeframe
Preparing for Future
Business & Direct Success
Impact onTeam
Impact onCustomer
Efficiency
Success Dimensions
Project Success
Timeframes of Success Dimensions
Efficiency
Impact on Customer
& Team
Business & Direct success
Preparing for Future
Uncertainty
Importance
Relative Importance of Success Dimensions is Project- Dependent
Low Medium High
The NTCP Framework
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
The NTCP Diamond
Classical Project Phases Modified to an Adaptive Iterative Approach
Definition Planning Execution Termination
Revise Definition
Revise Plans
From traditional to adaptive project management
ApproachTraditional project managementAdaptive project management
Project goalGetting the job done on time, on budget, and within requirements
Getting business results, meeting multiple criteria
Project planA collection of activities that are executed as planned to meet the triple constraint
An organization and a process to achieve the expected goals and business results
Planning Plan once at project initiationPlan at outset and re-plan when needed
Managerial approachRigid, focused on initial planFlexible, changing, adaptive
Project workPredictable, certain, linear, simpleUnpredictable, uncertain, nonlinear, complex
Environment effectMinimal, detached after the project is launchedAffects the project throughout its execution
Project controlIdentify deviations from plan, and put things back on track
Identify changes in the environment, and adjust the plans accordingly
DistinctionAll projects are the sameProjects differ
Management styleOne size fits allAdaptive approach; one size does not fit all
Requirements Planning Complete
Revise Requirements
Revise Plans
Entire Adaptive Iterative Approach
SpecsDesign, Build,
Test
Revise Design
Freeze Requirements Freeze Design
Adaptive Approach Traditional PM
Efficiency
Impact on Customer & Team
Business & Direct success
Preparing for Future
Project Completion
Time
Importance
Relative Importance of Success Dimensions - A Matter of Time
Critical Success Factors
Project Mission Top Management Support Project Planning Project Control Client Consultation
Skills Personnel Management Project Communication Client Acceptance Trouble Shooting
Clear and Early Product Definition Defined Product Strategy Early Top Management Involvement High Quality Process Adequate Resources Integrated Planning Empowered and Communicating Team Voice of the Customer
Generic Projects Product Development Projects
The FCS Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual style
Dr = (Pl, HT, Sy, FC)Da = (Pl, MT, As, FC)
Pace
Novelty
Technology
Complexity
Later design freezeMore design cycles
Complex organizationFormality
Autonomy
Less market dataLater requirement freeze
The Impact of the NTCP Dimensions on Project Management
DimensionExpected benefitPotential risk
NoveltyExploiting new market opportunities; leapfrogging competition; gaining first mover advantage
Having difficulty predicting exact market needs; missing sales targets; attracting competitors to copy your ideas
TechnologyImproving performance and functionalityExperiencing technology failure; lacking needed skills
ComplexityBigger programs, bigger payoffsHaving difficulty in coordinating and integrating
PaceGaining early market introduction, mounting quick response
Missing deadlines; making haphazard mistakes
Benefits and risks of high NTCP levels
The World Trade Center Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
D = (Pl, MT, Ar, FC)
Reinventing Project Management
Part 2 slides
The “Toy Story” Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
D = (Pl, HT, Sy, -)
Definitions and examples of project novelty
Level of project novelty
DefinitionExamples
Derivative projectExtending or improving existing products or services
Developing a new version of a personal computer; upgrading a production line; streamlining organizational procedures
Platform projectDeveloping and producing new generations of existing product lines or new types of services to existing markets and customers
Building a new automobile generation; developing a new aircraft; creating a new generation of a cellular system
Breakthrough projectIntroducing a new concept, a new idea, or a new use of a product that customers have never seen before
The first enterprise resource planning (ERP) package; the first photostatic copying machine (Xerox); the first Walkman; the Segway personal transportation system
The Segway Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Dr = (Br, HT, Sy, -)Da = (Pl, HT, Sy, -)
Required style
Actual style
Product novelty and project success:
Expectations Success dimensions and
possible failureLevel of project novelty
DerivativePlatformBreakthrough
EfficiencyHigh efficiency is critical; no room for overruns
Time to market is important for competitive advantage
Efficiency is difficult to achieve and may not be critical (unless competitors work on the same idea); overruns likely
Impact on customerGaining additional customers and market segments
Having high strategic impact on customers; retaining previous generation customers
Outstanding improvements in customer’s life and work
Impact on the teamTeam members extend their experience in quick product modifications.
Team members gain technical and managerial experience in introducing new-generations.
Team members explore new fields and gain extensive experience in unknown markets
Business and direct successExtends life of existing products; additional revenues and cash cow current products
High strategic impact on the business; expectation of years of revenues and building of additional derivatives
Long-term, significant business success; may come later after initial products have been tested and refined
Preparation for the futureAlmost noneMaintaining a strategic position in the market
Creating new markets and establishing substantial leadership positions
Impact of product novelty levels on project
management Managerial aspectLevel of product novelty
Derivative (De)Platform (Pl)Breakthrough (Br)
Market dataAccurate market data exists from previous products and market research
Extensive market research and careful analysis of previous generations, competitors, and market trends
Unreliable market data; market needs unclear; no experience with similar products; customer base not defined
Product definitionClear understanding of required cost, features, functionality, etc.
Invest extensively in product definition, involve potential customers in process
Product definition based on intuition and trial and error; fast prototyping to obtain market feedback
Requirements freezeEarly freeze of product requirements, usually before or immediately after project launch
Freeze requirements later, usually at mid–project
Very late freeze of requirements, often after prototype feedback
Marketing Emphasize product advantage in comparison to previous model; focus on existing as well as new customers
Create product image. Emphasize product advantages; differentiate from competitors
Create customer attention through new and innovative marketing techniques; educate customers about potential of product; hidden customer needs; create industry standard
Financial Middleware Software Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual style
Dr = (Pl, HT, Sy, -)Da = (De, MT, Sy, -)
Denver International Airport Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Automatic Bag –Handling System Airport
Construction Project
Project types based on levels of technological
uncertainty
Level of technological uncertainty
Low-TechMedium-TechHigh-TechSuper-High-Tech
DefinitionsUses only existing, well-established, and mature technologies
Mostly existing technologies; limited new technology or a new feature
Uses many new, recently developed, existing technologies
Key project technologies do not exist at the time of project initiation
ExamplesConstruction, road building, utilities, build-to-print
Derivatives or improvements of products; new models in established industries (e.g., appliances)
New systems in a fast-moving industry (e.g., computers, military systems)
New, unproven concepts beyond the technological state of the art (e.g., Apollo moon landing program)
Project characteristics and technological
uncertainty levels VariableLevel of technological uncertainty
Low-TechMedium-TechHigh-TechSuper-High-Tech
Development, testing, and prototypes
No development; no testing
Limited development; some testing
Considerable development and testing; prototypes usually used
Need to develop key technologies during project effort; intermediate small-scale prototype
Design cycles and design freeze
Only one cycle; design freeze before start of project execution
One to two cycles; early design freeze
At least two or three cycles; design freeze usually at midpoint during second or third quarter
Typically three cycles after the final technologies have been selected; late design freeze
Project reviewsFormal progress and status reviews
Formal progress and status reviews; some technical reviews
Technical reviews with experts in addition to formal progress reviews
Extensive peer reviews by technical expert teams critical to success
Management style and attitude
Firm style; sticking to the initial plan
Less firm style; readiness to accept some changes
More flexible style; many changes are expected
Highly flexible style; living with continuous change; “looking for trouble”
Communication and interaction
Mostly formal communication; scheduled meetings
More frequent communication; some informal interaction
Frequent communication through multiple channels; informal interaction
Many communication channels; informal interaction
Project manager and project team
Manager with good administrative skills
Manager with some technical skills; considerable proportion of academicians
Manager with good technical skills; many professionals on project team
Project manager with exceptional technical skills; highly skilled professionals
Contingent resources5%5-10%10–25%25–50%
Possible Time Ranges for Design Freeze, Number of Design Cycles, and Risk Areas for Project Outcomes
A: 1
B: 1-2
C: 2-3
D: n+3
D
C
BA
Project ScheduledCompletion
ProjectInitiation
Resources
Time
Planned Resources
Possible time ranges for design freeze
Risk area
Legend:
A- Low-TechB- Medium-TechC- High-TechD- Super High-Tech
B: 1-2 – Number of design cycles
n – No. of cycles required to choose
the final technologies
Low- and medium-tech versus high- and super-
high-tech projects Managerial issueProject type
Low- and Medium-TechHigh- and Super-High-Tech
Managerial styleRigid, no-nonsense, “get it done” approachFlexible, ready to accept many changes and tolerate long periods of uncertainty
Project reviewsFormal, top management approval of major phase completion
Formal executive reviews plus technical peer reviews by experts
Saving time by overlapping phases
Phase overlaps possiblePhase overlaps not recommended
Best contract typeFixed-priceCost-plus; fixed-price is possible at a later stage of development
Development approachLinear developmentSpiral development
Additional concernsLower cost, on timeRisk management, systems engineering, quality management
SR-71 Blackbird Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
D = (Pl, SHT, Sy, -)
Apollo Program
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
D = (Br, SHT, Ar, FC)
Space Shuttle
The Space Shuttle Program
1969 Initial proposal - to go to Mars in 1980s
Encountered low priorities,
Were asked to look for low-cost alternatives
1972 (August) Program approved; Shuttle only
Based on known technologies -“success oriented”
1972 (November) Design freeze-
configuration and technologies
1978 First flight scheduled
1981 Actual first flight - 60% budget overrun
1982 System declared operational
1986 Challenger accident
2003 Columbia accident
Space Shuttle ProgramInitial Uncertainties
First two-medium space vehicle First reusable space vehicle Liquid fuel engines and an external tank Huge 75 Ton glider 5000 Miles glide from reentry to landing First orbital flight with a live crew No crew escape system
The Space Shuttle Program
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual style
Dr = (Br, SHT, Sy, Re)Da = (Pl, HT, Sy, FC)
Space ShuttleProject Management Style
Actual Style Alternative Style
Success oriented Look for trouble
Off-the-shelf items Alternative technologies
Early configuration and Late freeze; Build a
design freeze small-scale prototype
Low flexibility High flexibility
Early operational Extended development
Limited communication Intensive communication
Type C Type D
High-Tech Super High-Tech
The Ford 2000 Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
D = (Pl, HT, Sy, -)
The three levels of project complexity
Project complexityProduct complexityExamples of projects
Assembly projectMaterial, component, subsystem, assemblyDevelopment of a PDA, Post-it notes, design of a single service
System projectSystem, platform of systemsMissile development, new computer development, new automobile model, a single building construction, restructuring a production plant
Array projectArray, system of systemsEnglish Channel tunnel, national missile defense system, new neighborhood construction, nationwide cellular system
The Chunnel Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual style
Dr = (Pl, MT, Ar, -)Da = (Pl, MT, Sy, -)
The Harmony Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
D = (Pl, HT, Sy, FC)
Mars Climate Orbiter Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual style
Dr = (Br, HT, Sy, TC)Da = (Pl, MT, As, TC)
Four levels of pace
RegularFast/CompetitiveTime-CriticalBlitz
DefinitionsTime not critical to organizational success
Project completion on time is important for company’s competitive advantage and/or the organization’s leadership position
Meeting time goal is critical for project success; any delay means project failure
Crisis projects; utmost urgency; project should be completed as soon as possible
ExamplesPublic works, some government initiatives, some internal projects
Business-related projects; new product introduction, new plant construction in response to market growth
Projects with a definite deadline or a window of opportunity; space launch restricted by a time window; Y2K
War; fast response to natural disasters; fast response to business-related surprises
The Y2K Case Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual style
Dr = (Pl, MT, Sy, TC)Da = (Pl, MT, Sy, Bl)
Reinventing Project Management
Part 3 slides
Benefit and Opportunity
Risk or Difficulty
Low
Low
High
HighApprove
Immediately
Reject Immediately
Further Consideration
Further Consideration
Risk and Benefit Assessment Matrix
Market Watch Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
BlitzD = (Br, MT, Sy, FC)
Innovation Categories and Project Types
IncrementalMarket Innovation
IncrementalTechnological Innovation
RadicalTechnological Innovation
Modular Innovation
Architectural Innovation
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
RadicalMarket
Innovation
Time
Pro
du
ct P
erfo
rman
ce
Low-end demand
High-end demand
Sustaining
progress
Disruptiv
e progre
ss
Manage by Platform Projects
Manage by Breakthrough Projects
The Innovator’s Dilemma and Project Management
Adopted from Clayton M. Christensen, the Innovator’s Dilemma, 1997 and modified by the authors
The Evolution of Project Types along the Product Life-cycle
Novelty Breakthrough Platform Derivative Derivative Platform
Technology Medium to Medium- Medium- Medium to Super-high-tech tech tech Low-tech
Goal Strategic Strategic Operational Operational
Adopted from Geoffrey A. Moore, Crossing the chasm, 1991 and modified by the authors
The Microwave Oven Patent Filed
Original Microwave Oven Patent by Doctor Percy L. Spencer, US Patent No. 02495429, Filed Jan. 24, 1950
The first Microwave Oven
Characteristics of projects for various customers
CharacteristicCustomer type
Consumer (B2C)Industrial/Business (B2B)Government/Public (B2G)
Examples of productsMP3 player, PC, carsAS/400, B777, ERP systemsHubble telescope, FCS, Army communication
Value to customerImpact on quality of lifeImpact on businessImpact on public goals and needs
Producer’s objectiveHigh volume, market shareIndustry leadership, preferred provider
Long-term relationship
Project focusHigh focus on time, cost, and quality
High focus on time and cost High focus on performance
Product definitionDefined by marketing; perceived customer needs, market research
Continuous customer involvementDefined by or with customer
Project scope: work, goals, deliverables
Defined by producerDefined by producer with customerDefined by or with customer
Contractual obligationsNo contract, internal commitment
Either external contract or internal commitment
Contracted project, obligations to customer
Customer involvementNo direct involvement; focus groups or market trials
Sometimes direct customer involvement
Intense customer involvement; often customer representative on the team
FinancingInternally financedInternally financed, or contracted by customer
Financed by customer according to contract
MarketingMass marketing, advertisement; brand management;
Industry image creationCompetition for bids; focused on major decision makers
ReliabilityHigh reliability requiredReliability may be traded off for timely delivery
Reliability focused on safety
Product supportService availabilityTraining, documentation, on-call support
Training, documentation, on-call support
Wire and Cable Coating Project
Array System Assembly
Complexity
Novelty
Technology
Pace
Derivative Platform Breakthrough
Super-High Tech
High-Tech
Medium-Tech
Low-Tech
Regular
Fast/ Competitive
Time-Critical
Blitz
Required style
Actual style
Dr = (Br, HT, Sy, Bl)Da = (Br, HT, As, Bl)
Project Management - The Two + One Processes
When are you shooting?
Technical Process
Product Definition Process
Managerial Process
Classical Project Phases Modified to an Adaptive Iterative Approach
Definition Planning Execution Termination
Revise Definition
Revise Plans
The Impact of the NTCP Dimensions on Project Management
Pace
Novelty
Technology
Complexity
Later design freezeMore design cycles
Complex organizationFormality
Autonomy
Less market dataLater requirement freeze
A Framework for Adaptation
CategoryProject TypesPM Impact
Strategic GoalStrategic, Operational
CustomerExternal, Internal
Combined
Business Objective
NPD, Product Improvement, Maintenance, Infrastructure,
Research
NCTP
NoveltyDerivative, Platform, Breakthrough
ComplexityAssembly, System, Array
TechnologyLow-tech, Medium-tech, High-tech, Super High-tech
PaceRegular, Fast/Competitive, Time-Critical, Blitz
Reducing Requirements and Design Uncertainty
Project Start
Levels Determined by Novelty, Technology,And Other Uncertainties
Uncertainty of Technical Specs and
Design
Ideal World
Real World
RequirementsFreeze
Specifications and DesignFreeze
Uncertainty of Requirements
Requirements Planning Complete
Revise Requirements
Revise Plans
Entire Adaptive Iterative Approach
SpecsDesign, Build,
Test
Revise Design
Freeze Requirements Freeze Design
Adaptive Approach Traditional PM
Iterative Process of Requirements and Design Freeze
Product Requirements Design, Build, Test Product PrototypeComplete
final productTechnical Specifications
Market Research and/or Market Testing
Change Until Requirements Freeze Specifications and Design Freeze
# of Design Cycles
Initial Market Data
# of Requirements Change Cycles
Time
Adaptive project management
Traditional project management
Typical project activities across project phases
PhaseActivityDetails
DefinitionMarket definitionMarket/customer identification; Customer need
Business objective Define the expected business objective
Product definitionProduct description; Product requirements
Project definitionStatement of work (scope); duration; budget; PM and team
Identifying project typeCategorize a project based on strategic or operational, internal or external user, novelty, technology, complexity, pace
Success and failure criteriaDefine management’s expectation on relevant success dimensions
PlanningImpact of type on project management
Decide how each project category will affect project organization, processes, plans, activities, and team
WBSBreak scope into detailed work packages and activities
OrganizationProject team structure
Project process planMajor phases, gates, and milestones
ScheduleDetailed network and timing of activities
BudgetDetailed cost of project based on WBS items
Risk managementRisk identification and mitigation plan based on project type
Integration planTiming and duration of integration activities
ProcurementSubcontracting and vendor management plan
Communication Reporting structure and meeting schedule
Human resourcesTeam development and training; Team motivation
Product creation planInitial technical specifications; product design and testing plan
Typical project activities across project phases (cont.)
PhaseActivityDetails
ExecutionProduct requirements Refine product requirementsFreeze product requirements
Product buildingProduct designPrototype building and testingAdditional design cycles (redesign, rebuild, retest)Freeze product design Product building and testing
Project monitoringProgress and status of budget, time, and activities performed
Project replanningUpdate plans and make changes
TerminationCustomer preparednessTraining materials and means
CommercializationProduct introduction plan
Project wrap-upProject summary reportNext generation planning
Risk Assessment
Master plan – Entire project
Detailed work plans – Weeks
Medium detail plans – 4 to 6 Months
Time
The “Rolling Wave” Planning Concept
Outsourcing Work Packages
Possible Outsourcing Regions
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