Does Your Organization Support, Ignore or Obstruct Project Management? John Censor PCI GLOBAL INC ® Computer Simulation Training Executive Overview © 2004.

Does Your Organization Support, Ignore or Obstruct

Project Management?

John CensorPCI GLOBAL INC

®

Computer Simulation Training

Executive Overview

© 2004 PCI Global Inc. All rights reserved

Executive Overview

This presentation is an overview of initial findings from a 1.5 year on-going study conducted by PCI Global, an international Project Management training and consulting company;

Charter Global PMI R.E.P.

Projects in Today's Marketplace

Projects do not appear or exist in isolation.

They are developed in an organization by a perceived need from senior management that a change in process or product is required.

Planning, resourcing, implementing and controlling these projects cause changes in that organization.

Projects in Today's Marketplace (continued)

The projects in turn, are impacted and changed by that organization.

In some organizations the pattern of these decisions and choices is consistent and known; in others they vary and may come to light months later

The net effect is that every organization, whether they intend to or not - supports, ignores or obstructs projects.

Projects Today

WHAT ABOUT YOUR ORGANIZATION ?

The study was conducted with 100 practicing team members and project leaders from several of PCI’s Fortune 500 clients.

Plus another 82 People from Company “L”.

The findings raise serious questions about the way organizations manage projects and

The clarity of internal communications around those projects.

Who was involved?

Previous Studies have focused on:

How many projects complete, abort or finish.

Individual project managers actions and attributes needed to achieve success.

Multiple studies of the “#1 Reason for Project Failures”

Astonishing New Results

No previous study has focused on the impact of the organization and its senior management on project management effectiveness.

These findings were NOT predictable.

Our findings suggest… The greatest impact or predictor of project success is

whether senior management – knowingly or unknowingly – supports, ignores or actually obstructs project progress.

The study also reports on project manager’s complaints and recommendations to improve overall performance.

Concludes with project manager recommendations to improve overall performance

The Study

The study consists of fourteen questions rating all aspects of a participating company’s corporate project effectiveness.

We cannot report all 14 today !

The Study The study is embedded in an advanced course,

‘Bottom Line Project Leadership’, that asks all participants to fill in the form.

Based on a computer simulation of a complex, technology project. Models activities, resources, costs. Compresses 6 months of project life cycle into 3 real time days.

Because Over 90% of participants fill out survey and answer truthfully.

For this reason, we believe the results are much more credible; and the findings more significant.

Here’s how we will work…

Here comes the 1st question…

I will present a question

You can guess the answer

Then I present the actual results

1. My role in project management is currently as a:

a. Project Team Member b. Project Manager c. Project Sponsor d. Line Manager working with a project team e. Other

Taking Our Organization’s Project Management Pulse

The Study Response

40%

41%

3%

My role in project management is currently as a:

a. Project Team Member

b. Project Manager

c. Project Sponsor

2. In our organization, a project manager obtains resources by:

a. Using senior management and/or sponsor support to get the appropriate people

b. Taking whatever people are offered c. Fighting for the best people d. Negotiating with Line Managers for the best

people

Taking Our Organization’s Project Management Pulse

In our organization, a project manager obtains resources by:

a. Using senior management and/or sponsor support to get the appropriate people

b. Taking whatever people are offered

c. Fighting for the best people

d. Negotiating with Line Managers for the best

people

The Study Response

33%

46%

6%

15%

L= 38%

L= 13%

L= 4%

L= 44%

3. In our organization, the authority of the project manager comes from:

a. The immediate supervisor of the Project Manager b. Within himself/herself c. The Project Sponsor and/or senior management d. Documented job description

Taking Our Organization’s Project Management Pulse

The Study Response

In our organization, the authority of the project manager comes from:

a. Immediate supervisor

b. Within himself/herself

c. The Project sponsor and/or senior management

d. Documented job description

42%

47%4%

4. After the project is launched, our project sponsors:

a. Micromanage b. Become practically invisible c. Are involved only when a crisis occurs d. Are actively involved throughout the duration

of the project

Taking Our Organization’s Project Management Pulse

The Study Response

After the project is launched, our project sponsors:

a. Micromanage

b. Become practically invisible

c. Are involved only when a crisis occurs

d. Are actively involved throughout the duration

of the project

3%

24%

44%

25%

L=6%

L=11%

L=33%

L=50%

5. How effective is the Project Management Office in your Organization?

a. Little or no impact on improving project performance

b. Moderate impact on improving project performance

c. Good impact on improving project performance

d. Very effective impact on improving project

performance

e. Not applicable (no project management office

currently exists)

Taking Our Organization’s Project Management Pulse

The Study Response

How effective is the Project Management Office in your Organization?

b. Moderate impact on improving project

performance

c. Good impact on improving project

performance

d. Very effective impact on improving project

performance e. Not applicable (no project management office currently exists)

16%

25%

9%

43%

L=25%

L=67%

6. In the culture of our company, the person most likely held accountable for the final results/outcomes of the project management effort are:

a. Project Team Members b. Project Manager c. Line Managers involved d. Project Sponsor e. Everyone involved

Taking Our Organization’s Project Management Pulse

The Study Response

In the culture of our company, the person most likely held accountable for the final results/outcomes of the project management effort are:

a. Team Members

b. Project Manager

c. Line Managers involved

d. Project Sponsor

e. Everyone involved

73%

3%6% L= 1%

L= 31%

L= 9%

L= 49%

L= 10%

7. Employees who are assigned to a project team (either full-time or part-time) have a performance evaluation conducted by:

a. Their Line Manager only b. Their Project Manager only c. Both the Project and Line managers d. Both the Project and Line Manager, together with

a review by the Project Sponsor

Taking Our Organization’s Project Management Pulse

The Study Response

52%

8%

30%

8%

Employees who are assigned to a project team (either full-time or part-time) have a performance evaluation conducted by:

a. Their Line Manager only

b. Their Project Manager only

c. Both the Project and Line Managers

d. Both the Project and Line Manager,

together with a review by the Project Sponsor

L= 40%

L= 0

L= 47%

L= 13%

8. What skills do you think are most important for project managers in our organization:

a. Technical knowledge b. Risk management c. Cost management d. Soft (HR) skills e. Overall business knowledge

Taking Our Organization’s Project Management Pulse

The Study Response

What skills do you think are most important for project managers in our organization:

a. Technical knowledge

b. Risk management

c. Cost management

d. Soft (HR) skills

e. Overall business knowledge

16%

12%

5%

34%

33%

L= 4%

L= 22%

L= 13%

L= 52%

L= 9%

9. What % of your projects come in on time?

a. 0% to 10% g. 61% to 70%b. 11% to 20% h. 71% to 80%c. 21% to 30% i. 81% to 90%d. 31% to 40% j. 91% to 100%e. 41% to 50% k. Have no knowledgef. 51& to 60%

Taking Our Organization’s Project Management Pulse

What % of your projects come in on time?

a. 0% to 10% g. 61% to 70%

b. 11% to 20% h. 71% to 80%

c. 21% to 30% i. 81% to 90%

d. 31% to 40% j. 91% to 100%e. 41% to 50% k. Have no knowledgef. 51& to 60%

Every other % came in with single digits

The highest was (k) at 44%, (h) was 14%

The Study Response

L= 20% L= 7%

L= 20%

L= 20%

L=33%

10. What % of your projects come in on budget?

a. 0% to 10% g. 61% to 70%b. 11% to 20% h. 71% to 80%c. 21% to 30% i. 81% to 90%d. 31% to 40% j. 91% to 100%e. 41% to 50% k. Have no knowledgef. 51& to 60%

Taking Our Organization’s Project Management Pulse

What % of your projects come in on budget?

a. 0% to 10% g. 61% to 70%b. 11% to 20% h. 71% to 80%c. 21% to 30% i. 81% to 90%d. 31% to 40% j. 91% to 100%e. 41% to 50% k. Have no knowledgef. 51& to 60%

Every % came in with single digits

The highest was (k) at 64%

The Study Response

L=20% L= 7%

L= 13%

L= 26%

L= 33%

11. What % of your projects meet requirements/specifications?

a. 0% to 10% g. 61% to 70%b. 11% to 20% h. 71% to 80%c. 21% to 30% i. 81% to 90%d. 31% to 40% j. 91% to 100%e. 41% to 50% k. Have no knowledgef. 51& to 60%

Taking Our Organization’s Project Management Pulse

What % of your projects meet requirements/specifications?

a. 0% to 10% g. 61% to 70%b. 11% to 20% h. 71% to 80% c. 21% to 30% i. 81% to 90%d. 31% to 40% j. 91% to 100%e. 41% to 50% k. Have no knowledgef. 51& to 60%

Again every % came in with single digits

The highest was (k) at 64%

The Study Response

L= 9%

L= 9%

L= 36%

L= 45%

12. My current evaluation of the overall success (including implementation) of project management in our organization is (scale of 1-10 - please circle a number)

Poor Moderate Good Excellent

1 2 3 4 5 6 7 8 9 10

Taking Our Organization’s Project Management Pulse

My current evaluation of the overall success (including implementation) of project management in our organization is (scale of 1-10 - please circle a number)

(1-2)

(3-5)

(6-8)

(9-10)

The Study Response

1 vote

54%

44%

0

Complaints – Top 5

“Ballpark” estimates are being turned into firm targets (29%)

Team members are consistently pulled off current projects (21%)

Project team is made up of ‘whoever “ is available (20%)

Insufficient team and human resource skills

No project prioritization (14%)

Recommendations

Greater support by senior management

Better balance of resources across projects

Better scope definition; Get requirements

More ‘buy-in’ from part-time team-mates

Train Sponsors

Standardized Methodology

Stop Scope Creep etc., etc., etc.

So, does your Senior Management

and Corporate Culture Support,

Obstruct or Ignore Project Work?

Conclusion:

Senior managers do not realize the impact of each of their decisions on project results.

Conclusion:

There is lack of communication between senior management and project sponsors on one-side, and project managers and their teammates on the other.

Conclusion:

Senior management may not understand the wasted dollars and consequential team burnout results from these decisions; plus added risks.

If one project costs $100 million dollars and fails, the company (with an assumed pre-tax profit of 10%) must earn an additional one billion dollars – just to return the loss to shareholders.

Conclusion:

Clearly, every organization in some way obstructs or ignores projects; even when they believe they are supporting them.

But, they don’t…

Strange Side Effects

Responses to requests to add the survey after these initial studies.

A Happy Outcome

One client – Aerospace /Defense

Company ‘L’

Next Steps…

Need Help

Need more organizations to survey

Is your organization a good candidate to study ?

Need to schedule 100 people for the exact same class – exact same Pulse Survey

Contact me for help to explain this unique study concept

What your organization will get out of it

PCI has hard copy in article form or as a ‘White Paper’ for distribution and study.

Going to put this presentation on Chapter website

WHAT YOUR ORGANIZATION WILL GET OUT OF THIS

Clear comparison with normative data

Detailed, up to date company-specific information about what is working – what is not

Worst case: 100 well trained Project Team Leaders

Best Case: Eye opening results for Senior Management to start change process

Concrete specific recommendations from the Project Managers in the trenches

John CensorPCI GLOBAL

411 Hackensack AveHackensack, NJ 07601

[email protected]

Thank you!

www.pciglobal.com®

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