040_Reinventing Project Management Slides

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


Business & Direct Success

Impact onTeam

Impact onCustomer

Efficiency

Success Dimensions

Project Success

Timeframes of Success Dimensions

Efficiency

Impact on Customer

& Team

Business & Direct success


Uncertainty

Importance

Relative Importance of Success Dimensions is Project- Dependent

Low Medium High

The NTCP Framework


Complexity

Novelty

Technology

Pace


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


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


Complexity

Novelty

Technology

Pace


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


Complexity

Novelty

Technology

Pace


Super-High Tech

High-Tech

Medium-Tech

Low-Tech

Regular

Fast/ Competitive

Time-Critical

Blitz

D = (Pl, MT, Ar, FC)


Part 2 slides

The “Toy Story” Project


Complexity

Novelty

Technology

Pace


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


Complexity

Novelty

Technology

Pace


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


Complexity

Novelty

Technology

Pace


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


Complexity

Novelty

Technology

Pace


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


Complexity

Novelty

Technology

Pace


Super-High Tech

High-Tech

Medium-Tech

Low-Tech

Regular

Fast/ Competitive

Time-Critical

Blitz

D = (Pl, SHT, Sy, -)

Apollo Program


Complexity

Novelty

Technology

Pace


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


Complexity

Novelty

Technology

Pace


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


Complexity

Novelty

Technology

Pace


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


Complexity

Novelty

Technology

Pace


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


Complexity

Novelty

Technology

Pace


Super-High Tech

High-Tech

Medium-Tech

Low-Tech

Regular

Fast/ Competitive

Time-Critical

Blitz

D = (Pl, HT, Sy, FC)

Mars Climate Orbiter Project


Complexity

Novelty

Technology

Pace


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


Complexity

Novelty

Technology

Pace


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)


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


Complexity

Novelty

Technology

Pace


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


Complexity

Novelty

Technology

Pace


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


Complexity

Novelty

Technology

Pace


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

040_Reinventing Project Management Slides

Documents

required styleactual

noveltyderivative

informal interaction

airport construction

complex organization

adaptive iterative

typical project

high strategic