PMI North India Chapter Synergy Collaborating Project Management for High Performance Business Insight July-September 2012 Newsletter Issue 6 this issue Project Management –Rec. QM…P2 The Blind Men and the Projects…P5 Managing complex Projects in Matrix…P6 Scheduling Triggers: Constraint…P7 Latest Trend of Technology in BPO…P9 Fool Proof Earned Value Analysis…P13 Attrition and Role and Responsibility…P16 Successful Project Outcome…P20 Project Management in a Lean Way…P21 Project Leadership: A way to…P25 Latest Technology Trends and…P29 Upcoming Events…P33 Past Events…P35 Team Editorial…P36 Regards Piyush Govil PMP® Vice –President – Communications PMI North India Chapter Networking, a channel to build relationships… From the Editor’s Desk 1 Editorial team once again takes pride to release the 6 th Edition of SYNERGY on schedule i.e. 23 rd September’2012. Theme for this edition is networking which is most vital in building a community where everyone can share and leverage upon each other’s expertise. I must say it is our pleasure to be part of such a great community which comprises of members who all are treasure of knowledge. Join the community to be part of great Treasure Hunt and achieve multifold career growth by acquiring the slice of this treasure of knowledge. With this edition, SYNERGY clearly depicts that its fame is not only limited to periphery of North India but it has acceptance all over India as well as globally. We are getting articles from members based out of different metros of India. People are coming forward and eager to share their piece of knowledge acquired through their experience within PM fraternity. SYNERGY is not released by professionals into publication industry, it is all the hard work and creativity of professionals belongs to this great PM fraternity. Editorial Team is squeezing their time out of professional and personal commitments to collate all knowledge and present to its members. We always look forward to your critical reviews that will help SYNERGY to be one of top e-Magazine globally.
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PMI North India Chapter
Synergy
Collaborating Project Management for High Performance Business Insight
July-September 2012
Newsletter
Issue 6
this issue
Project Management –Rec. QM…P2
The Blind Men and the Projects…P5
Managing complex Projects in Matrix…P6
Scheduling Triggers: Constraint…P7
Latest Trend of Technology in BPO…P9
Fool Proof Earned Value Analysis…P13
Attrition and Role and Responsibility…P16
Successful Project Outcome…P20
Project Management in a Lean Way…P21
Project Leadership: A way to…P25
Latest Technology Trends and…P29
Upcoming Events…P33
Past Events…P35
Team Editorial…P36
Regards
Piyush Govil PMP®
Vice –President – Communications
PMI North India Chapter
Networking, a channel to build relationships…
From the Editor’s Desk
1
Editorial team once again takes pride to release the 6th Edition of SYNERGY on schedule i.e. 23rd September’2012.
Theme for this edition is networking which is most vital in building a community where everyone can share and
leverage upon each other’s expertise.
I must say it is our pleasure to be part of such a great community which comprises of members who all are
treasure of knowledge. Join the community to be part of great Treasure Hunt and achieve multifold career growth
by acquiring the slice of this treasure of knowledge.
With this edition, SYNERGY clearly depicts that its fame is not only limited to periphery of North India but it has
acceptance all over India as well as globally. We are getting articles from members based out of different metros
of India. People are coming forward and eager to share their piece of knowledge acquired through their
experience within PM fraternity.
SYNERGY is not released by professionals into publication industry, it is all the hard work and creativity of
professionals belongs to this great PM fraternity. Editorial Team is squeezing their time out of professional and
personal commitments to collate all knowledge and present to its members.
We always look forward to your critical reviews that will help SYNERGY to be one of top e-Magazine globally.
Project Management – Recommendations on Quality Management
Short Snippets on Project Management best
practices across industries…
By Nidhi Saini PMP®
Quality Management plays a vital role in the software
development cycle. Quality Management also works
toward incorporating a knowledge base of best
practices, selecting tools to manage the various
aspects of quality, monitoring status, and verifying
and evaluating current methods, procedures and tools
with the aim of continuous improvement.
If there is a lack of quality processes and reviews
implemented in a project, then there will be no
accurate status on the project metrics. There has to
be a strong focus on the adoption of quality processes
A Quality Review Board comprising of Business Analyst,
Project Manager, Test Manager, and Build & Release
Manager will be responsible for creating the
Acceptance / Exit Criteria for each of the Quality
Gates, and these criteria will be verified during the
Quality Gate Review for that particular phase. The
quality gates can be established for each phase (viz.,
Requirements, Design, Development, and Testing) in
the Software Development Life Cycle.
formal checklists of deliverable, with indication of
the state of completion, are used throughout the life cycle of the project;
these checklists are reviewed and updated from time to time by the Board mentioned above;
formal sign-off and acceptance occurs at each Gate;
any activities on the Gate cannot proceed without sign-off of the previous Gate ;
the assessment of quality and integrity takes place during Quality Gate Reviews;
Information is assured to be communicated to the correct stakeholders (i.e., development to deployment, etc.).
The advantages include the following.
Minimizing project risk through phase-by-phase checklists.
Enabling project managers to continuously communicate the process and build quality directly into the project.
Reducing development cycle time—getting it done right the first time.
These reviews prompt the project team to evaluate technical progress, specifications, and project milestones.
These reviews can also be applied to measure the project cost and schedule performance, and to provide checkpoints to enable the base lining of key project information.
Quality Gate Review also helps in triggering early warning, and hence, appropriate actions would be taken to proceed in the project execution.
Quality gates are acceptance criteria reviews that can
be used throughout the project. It can be seen as a
set of predefined quality criteria that a software
development project must meet in order to proceed
from one stage of its lifecycle to the next.
Quality Gates
2
Benefits of these preventive measures in Defect Management are:
The number of defects can be minimized by taking actions to prevent similar defects in future. It will reduce the effort needed to fix defects which in turn will help increase the productivity of the
development team.
Phase Gate Quality Gate (QG) Criteria Measurement of QG Criteria QG Reviewed by
Requirements Requirement completion checkpoint
Requirements (Use Cases, Business Rules, etc.) well defined, documented, and signed off by customers
Requirements are approved Quality Assurance Team, Project Manager, and Business Analyst
Analysis & Design
Design completion checkpoint
High Level Design (HLD) is completed for the planned scope, reviewed and approved by Domain Architect
High Level Design (HLD) is approved
Quality Assurance team, Project Manager, and Technical Architect
Construction Development completion checkpoint
Low Level Design (LLD) is completed
Low Level Design (LLD) is approved
Quality Assurance team, Project Manager, and Technical Architect
Coding is completed
Unit Testing is completed and Unit Test Reports are available. Unit Testing pass % is within agreed limits
Unit Testing pass % Eg. UT Pass % should be minimum – 95%
Testing Test completion checkpoint
Functional Test execution is completed.
Test Pass % Eg. Pass % should be minimum 95%.
Quality Assurance team, Project Manager, and Test Manager
No. of Severity 1, Severity 2 defects in an open state
Eg. Sev1 – 0 Sev2 – 0
No. of Severity 3, Severity 4 defects in an open state
Eg. Sev3 – 10 Sev4 – 30
The following table shows Quality Gates for each of the phases in the project, along with the criteria,
measurement criteria, and the team responsible for Quality Gate review:
It is a good practice to do the analysis and
categorization of defects. This can be done based on
“Category” or “Severity” or “Detection Stage”, etc.
One example of the analysis of defects is by
“Category”, and the defects can be categorized as
“Requirements Defects”, “Code Defects”, “Design
Defects”, etc.
A defect can arise out of user error, data error,
compile / build/ assembly error, and test case error.
This analysis would be done by the development team
along with the test lead on monthly/quarterly basis.
This analysis will trigger preventive actions, which
need to be taken by the teams, to minimize/avoid
the occurrence of such defects in future.
Defect Management Some of the preventive measures, which can be taken,
based on the analysis of defects are mentioned below:
S. No.
Category of defects
Preventive Measures
1 Requirements Defects
Requirements walkthrough with all the stakeholders (Business Analysts, Developers, Testers, etc.) for better understanding.
2
Code Defects
a. Code reviews to be mandated,
without which the code will not be promoted for Build & Integration. b. Ensure that all the team
members are following coding standards.
3 Design Defects
Mandatory design review & approval by Domain architect.
3
In addition, it is recommended and suggested to have
a Defect Prediction Model for the project, which can
help the team to predict the number of defects to be
fixed in the upcoming releases/weeks/months.
This model can be built using the following data:
Code Size (Lines of Code) The number of use cases / Business rules already
implemented History/data of defects reported in the system
(category, severity) The number of use cases / Business rules to be
implemented (future)
The Defect Prediction Model will help in the following
ways:
It plans the efforts needed for fixing the defects and schedule for fixing these defects,
Work can also be prioritized based on the defects or real development work.
This model in turn helps the Project management team in better planning, meeting the schedule of the project.
Quality Compliance reviews help a project achieve the
quality goals set in the Project Quality Plan. The
Project Quality Analyst (PQA) will be responsible for
performing the internal process and product
compliance review at defined intervals based on the
project milestones to meet the quality goals.
A PQA will
establish quality processes and will ensure compliance to the process through Inspections and Audits;
identify the project metrics, define the control limits for the metrics, and track these metrics on a regular basis;
initiate and facilitate the Root Cause Analysis for the non-conformances against the standards, plans, and processes;
identify corrective, preventive actions for process non-conformances, and track them to closure;
create process asset libraries, which can be used by the project team;
publish Quality Compliance Dashboard to the Management on monthly basis.
Quality Compliance Reviews
Nidhi Saini currently associated with IBM as Program Manager. She has industry experience of more than 12 years in
complex custom application development for multinational clients. She has worked on several large scale multimillion
dollar projects both as Offshore Account Manager and in direct interaction with end customer as Onsite Program
Manager. She has been in consulting role for US CXO level profiles and she is Certified PMP by PMI, USA; ITIL Service
Manager
About Author
“The successful networkers I know, the ones receiving tons of referrals and feeling truly happy about themselves,
continually put the other person’s needs ahead of their own.” -Bob Burg
4
Reference:
Quality management across the product and application life cycle
Managing Complex Projects in the Matrix Organization
By Abhinav PMP®
A Project Manager (PM) requires certain essential set
of skills in the case of Complex Capital Intensive
projects, which is modeled on the matrix form of
organization and involves a large number of
stakeholders. The matrix organizational set-up causes
the local priorities set in and each functional
department fighting for their cause instead of
completing the project on time. It’s like nobody
knowing after all whose baby the project is and
everybody waits for others to make move to resolve
the issues.
A quick look at the delayed projects indicates “failure
in resolving associated issues” as the prime reason.
Delay in timely resolution of the issues consumes a
large chunk of project buffer time. Too many decision
makers at the top are mainly responsible for delayed
decisions. The waiting game played in the matrix
organization causes the projected IRR (Internal Rate
of Return) during the planning stage go haywire.
Unforeseen requirements are a regular feature in a
complex project, where the project scope often
undergoes repeated changes resulting in changes in
engineering and related resources.
The three major constraints in such project execution are: uncertainties, limited resources, project complexity
A Project Manager, heading the complex projects, is
almost clueless about the ground realities. He is
presented with a rosy picture during the major part
of the project on the computer screen by the PMC
(Project Management Consultant) in order to buy
time. A Project Manager is swayed away by the theme
“Everything is okay and under control”. He often
takes sub-optimal decisions due to the lack of
knowledge and in-depth analysis of the situation
which results in cascading effects on the health of the
project. It becomes evident that a Project Manager
requires certain leadership skills which can save the
day for such complex projects.
Project Managers almost have difficulty getting people
to co-operate and perform in a matrix organization;
therefore, it is extremely necessary that the Project
Manager must be able to "Marshall and Rally the
troops" when things get tough. They must promote
team spirit and assist others in navigating complex
issues. Part of the leadership skill is the ability to
make sound decisions. The Project Manager must be
able to obtain data from converging areas and filter
the appropriate information to formulate a solution
approach. “We mean business” attitude is required ,
otherwise in such complex projects as Known–
Unknowns and Unknown–Unknowns are the order of the
day, which will eat away the contingency and
management reserves for the project with point of no
return.
Conflicts among various stakeholders and their non-
resolution always derail the projects and it is mostly
seen during the execution stage on the daily basis in
complex projects. So boundary Management is another
mandatory leadership skill to keep all the stakeholders
in loop to ward-off any future problems.
Some of the best suited approaches required
toward conflict resolution are given below
For interpersonal conflict---use compromise strategy
between PM and project sponsor, and collaboration
strategy between PM and department managers.
For task-based conflict---use competing strategy when
stakeholders have less power/influence and
compromise or collaboration strategy when
stakeholders have fair power/influence.
For process-based conflict--- use competing or
collaboration strategy to find a workable solution to
get the sequencing of process right.
6
Common Wealth Games 2010, which suffered from project overruns and wide spread corruptions charges, is an example of leadership failure, whereas DMRC (Delhi Metro Rail Corporation) is an example, wherein Project Manager---Mr E Sreedharan---has shown certain essential leadership skills, which is necessary for the success of a complex project. In a nut shell, the Project Managers should have the following major essential skill sets for managing the capital intensive complex projects:
Act as a champion and catalyst for the project Able to resolve conflicts Able to anticipate/visualize problems or risks,
confront them, provide alternatives and contigency plan
Able to switch from being a specialist to being a generalist
Able to facilitate, delegate, and most importantly accommodate
Should have strategic and analytical thinking skills---constantly looking for an opportunity to improve upon the benchmarks
Apart from having technical skills, should have commercial knowledge as procurement covers 80% of the project cost, and project time is linked with timely delivery of critical equipments.
Most importantly, should have human touch to handle huge manpower involved in such projects to get the best out of everybody.
The idea here is to explain that Project Managers with proactive and problem solving attitude can work wonders for the project while an ineffective Project Manager can spell doom for the project.
Abhinav is a certified Project Management Professional (PMP), currently associated with Indian oil Corporations Ltd as
Materials Manager (Projects). He has over 14 years of working experience, mostly involved in Procurement activities
of IOCL-Mega Projects. He is a graduate in Mechanical Engineering from Bihar College of Engineering, Patna and done
his Masters in Production Engineering from IIT, Delhi. He has also done a General management course from IIM,
Indore. He has won the Gold Trophy in Hybrid Certificate Program on Project Management conducted by IOCL in
association with U21Global, Singapore
Views articulated in an article by author are based on his Project Procurement Experience.
About Author
Scheduling Triggers: Constraints may create negative slack on tasks
The application of constraints is an important aspect to be considered while preparing a schedule.
In Microsoft Project, date constraints give the flexibility to start/and finish earlier and/later than a given date, but it might make the schedule unrealistic.
For instance, the below plan is scheduled from the project start date, Mon 12-01-09, with two tasks: Finalize requirements (2 days) and Build prototype (2 days). These tasks are scheduled one after the other.
By Sai Prasad PMP®
7
If the prototype needs to be delivered by Wed 12-01-11, we change the above schedule to have constraint Finish
No Later Than on Wed 12-01-11 for the Build Prototype task.
As the schedule is planned from the project start date, Project 2010 pops up the Planning Wizard warning us about a scheduling conflict either now or later. In this case, due to this constraint, Build prototype must start before Finalize requirement finishes, resulting in a negative slack.
To avoid negative slack, we can either set no constraint or set a Finish No Earlier Than constraint. Alternatively, we could also overlap these tasks. When we proceed with Finish No Later than constraint, the schedule becomes
unrealistic.
Project 2010 has an option to ignore constraints that create negative slack which helps us comparing whether the plan is
realistic. In Project 2010, clear Tasks will always honor their constraint date checkbox in Options dialog.
8
After clearing the checkbox, the tasks are rescheduled as below. Calendar alert in the Indicator column recommends tasks that
require an immediate action.
Take away
Sai Prasad, winner of Global Trainer of the Year award, has been with Cognizant from the year 2001. With
his rich project experience and passion for teaching, he has conducted 7000+ hours of trainings in technical
and project management topics. He is the editor of the PM book “Forecast scheduling with Project 2010”.
He is a Microsoft Certified Trainer, Microsoft Certified Technology Specialist, PMI-certified Scheduling
Professional (PMI-SPSM) and Project Management Professional (PMP®).
About Author
Latest trend of technology in BPO industry and the importance of Project Management
By Koyelia Ghosh Roy PMP®
Outsourcing industry has matured from just a low
cost, revenue churning sector to a high-tech,
innovation-driven, cost-effective centers of
excellence, particularly in the high-growth markets of
Asia Pacific. Now-a-days, BPO industries not only
provide the man power but also an array of innovative
technology-driven products to enhance the process as
a whole.
The new market forces and the complementing
technologies are going to affect the way buyers of
services look at the offerings. This will also drive the
solutions that the BPO service providers sell
to clients.
According to the Gartner report, there are five key
technological changes that will drive the business
growth of BPOs today. These are: The Cloud, Hyper
digitization, Intelligence Technology, Security and
Privacy, and Context Aware Computing.
Cloud
Gartner defines cloud computing as "a style of
computing where scalable and elastic IT-enabled
capabilities are provided 'as a service' to external
customers using Internet technologies”.
Constraints are good but do not over use them. Remember, the less the number of constraints, the
more the flexibility and the more valuable is the schedule.
9
The IT Cloud typically involves the online provision of
dynamically scalable and often virtualized information
technology resources, such as common business
applications with software and data stored on hosted
servers. As opposed to the traditional model in which
every company has its own IT infrastructure and
application packages, the Cloud Computing model
provides a multi-client provision of IT infrastructure
and applications.
By addressing the concerns and ensuring the sufficient
data protection, providers could change the client’s
perspectives. In addition, offering services at different
price points might move clients to rethink their
paradigms.
A primary driver is the one who eliminates buyers’
up-front costs and decreases their total cost of
ownership. This is especially attractive coming on the
heels of an economic recession and IT budgets
constrained mostly to maintenance activities.
Companies can immediately transit to new
applications and services. Other drivers include the
cloud’s ability to
reduce a buyer’s footprint in legacy systems; increase flexibility for companies facing a major
software upgrade or changing their software; shift from CAPEX to operating expenses (OPEX) if
a company moves new business units or startups or mergers/acquisition activities to the cloud;
For example, services delivered by a multi-client team
working across support functions could be offered at a
lower price than service delivery from a dedicated
client account team. It will materially increase the
scope, speed, and effectiveness of the work the
provider performs and will create an immense
opportunity to optimize the customer’s working
capital.
Cloud technologies enable a multi-tenant service
model. First of all, it increases the business agility.
They encompass infrastructure, platforms,
applications, and BPO services---and this `‘IT-as-a-
service’’ model may create a whole new wave of
outsourcing.
handle competitive pressures, especially in the mid-market. Small- and mid-sized businesses are currently adopting SaaS and cloud-based services faster than larger enterprises, as they enable supporting the business when it is growing and cutting back when necessary; and
support globalization efforts without having to deal with associated infrastructure issues.
10
My teams are
always floating in
Clouds for best
support and
security available
24X7 and our Data
Craft always ready
to deploy your data
on Clouds.
Customer Vendor Piy
ush
Govil
PM
P®
Fun with Cloud Computing
Some of the types of cloud-related services that
outsourcers typically provide are as follows.
Consulting around integrating enterprise IT with private and public clouds to create a hybrid environment.
Implementing and managing private clouds to consolidate and optimize infrastructure.
Migrating enterprise applications to the cloud and the related testing, certification, and governance for risk and compliance.
Developing custom applications for the emerging cloud software platforms.
Developing new applications that integrate collaboration, communication, and cloud platforms.
With the advent of cloud and hyper-digitization, the
need for security and privacy of data has become all
the more important as it will have serious implications
on the revenue and brand image of the organization,
besides market credibility being at stake. Security and
Data Privacy have been recognized as business
enablers in today’s landscape.
It is essential for the outsourcing industry to
demonstrate that it is able to embrace data security
and privacy governance processes that are required as
a minimum baseline for providing outsourcing services
in a high trust mode.
There has been an increased level of maturity in the
area of privacy as a significant number of BPOs and
ITOs have reported the presence of a dedicated
privacy function.
Hyper-Digitization
Hyper-digitization is the accelerating manifestation of
the impact of IT. Digitization describes the parts of the
economy in which the “product” or “service” is
content, that is, entirely or almost entirely digital.
One key trend in this is social computing and social
media.
Hyper-digitization, such as instant messaging, online
conferencing, and products like Microsoft® Lync has
made communications, including hosting multi-user
conference, possible from the personal laptop of an
employee. This has revolutionized the communication
process, even enabling sharing of a huge amount of
data in seconds.
Social media such as Facebook and Twitter are
affecting the current way of computing,
communication, and commerce. It is expected that in
the next phase, social computing would be taken into
account when designing the business solutions.
Intelligence technology
In the new growth era, the business intelligence,
analytics, and smart solutions that can recognize
business patterns and create new focus will be the
order of the day.
The service providers now need to bring together the
technology expertise with process expertise to create
service offerings. Solutions have to be sold as a tool
that can translate and transform the business for the
client and not in silos or as lower cost arbitrage.
New IT-related initiatives that do not fit within this
framework will be increasingly less attractive to
enterprises that are not interested in “more IT for IT's
sake,' but are more focused on 'IT for the
business' sake”.
Security and Privacy
Context Aware Computing
Context-aware computing is about organization’s
leveraging information related to the end users to
improve the quality of interactions. The idea is to
make services more convenient and easy to use.
Context-aware computing is a game-changing
opportunity, as momentum is building with these
technologies maturing and strategies in specific
industries taking shape.
With the proliferation of instrumentation, metering,
and wireless technologies, all of these have a
significant role to play in providing context that can
lead to automating business processes and improving
productivity. It is also important to fully understand
the impact that the increased amount of contextual
data will have on the IT environment and applications,
as well as the implications for back-end infrastructure.
Being built in on mobility, there are many parameters
to consider: location, customer relationship
management, analytics, and database strategy, to
name a few.
There is an emergence of a new level of services and
solutions that take into account different media
including data, text, graphics, audio, and video to
create a very specific customized solution, that is, in
context of the user.
Context Aware Computing while linear in its impact on
IT will have profound impact on organizations, on the
way business is done today.
11
Value Proposition of Project Management in this paradigm shift
Project Management principles are critical to many third generation outsourcing strategists to reap benefits by
enhancing the service delivery and functions.
With the BPO market being dynamic and currently in flux, there are six trends where Project Management can
help organizations to maintain the pace.
Increase of expenditures in BPO
With Accenture estimating mainstream BPO expenditures would be topping $300 billion by 2012, it is essential that the cost management is efficient. Project management tools and techniques for cost estimation and planning are the key areas under focus and provide expert management suggestions to control them.
Emergence of Supplier Consolidation
Due to the slowdown in the recent economic market, there would be market exits, mergers, acquisitions, and ascent of new vendors that would rearrange landscape of the BPO industry in India. Under such a scenario, holistic project integration management capabilities should be proactively used to establish the niche. From scoping to planning, each step can be enhanced by implementing the project management principles.
Advent of Bundled Outsourcing Model
There have been instances wherein big BPO players are merging ITO and BPO into one seamless enterprise-wide solution, meaning all the departments from IT to HR will deal with the same vendor. With the bundled or consolidated model, project procurement management plays a pivotal role in spelling the success of this trend. From Contract negotiation to managing deliverables, all of the tasks can be effectively closely monitored and controlled through project management initiatives.
Proving to be Smarter
It is estimated that the convergence of process, technology, and business intelligence/analytics may produce exponential savings in the near future. As such projects are highly complex, all the nine knowledge areas of project management discipline, from project integration management to project procurement management, form an integral part in the success of such innovative projects.
More focus on Business Outcome than Cost
Initially, both ITO and BPO were driven by cost reductions, price, and labor arbitrage. However, with the increase in competition and awareness, it has become more important to establish the business outcomes created by an effective ITO/BPO program. It is necessary to gauge the business outcome upfront so as to deliver the best.
Organizations initiate and execute projects at an ever-increasing rate in order to achieve their strategic intentions. Many of these, however, find it difficult to measure the contribution that these projects make toward the realization of the organizational vision.
Project Management principles provide the organization with a framework that can be used to derive projects from the organizational vision and strategies, thereby ensuring continuous alignment. Besides quantitative research methods, participatory action research in the field of project management has added a new dimension to management techniques.
“The currency of real networking is not greed but generosity.”
-Keith Ferrazzi
12
The Governance Factor
The governance factor refers to the activities that are necessary to manage a customer/supplier relationship, including the management of service level agreements, performance reporting, billing, and issue resolution.
BPO governance is about making decisions and assigning accountability for agreed outcomes; it comprises a set of processes and structures that are designed to address top management concerns such as service performance etc.
Project Management tools and techniques provide for objective sizing, cost estimation, and ongoing independent monitoring that encourages problem solving on both the client’s and supplier’s end.
Project Management principles would enable organizations to complete more projects on time, to scope, and within budget; to identify and successfully implement more cost-saving initiatives; enhance organizational flexibility and agility; improve teamwork and co-worker collegiality; improve customer satisfaction ratings develop healthier sense of organizational urgency improve employee engagement scores; increase sales; and enhance employee’s respect for due dates and personal accountability.
References---Certain information has been
inferred from Outsourcing Center, BPO
Watch India and Near shore Americas.
Koyelia Ghosh Roy PMP® CSBA®, an accomplished Business Analyst, is having nine years of experience,
especially in Health Insurance. She is certified PMP, CSBA and ISTQB Professional. She has also successfully
achieved LOMA certification and Licentiate from the Insurance Institute of India. She is currently working as
Business Analyst with EXL Services Pvt. Ltd. Her role not only comprises of software business analysis for
various kinds of project, ranging from process automation to building business intelligence platform, I am
also involved in project management activities, working closely with the project manager.
About Author
Fool proofing Earned Value Analysis
By Shashank Neppalli
As a tool to control cost over-run, Earned Value Management (EVM) has very few equals. But, EVM was created for projects where activity wise cost budgeting were not a difficult proposition. Many books explaining EVM fail to mention about the need for its customization for use in certain projects. This research paper explores situations where EVM need to be applied after modifying it appropriately.
The author carried out an exhaustive theoretical
research on Earned value during the analysis of a
project with significant time as well as cost over-run
because the SPI was unity at Project completion despite
there being a delay. This triggered an online research
wherein works of Mr. Joseph Lukas, Mr. Walt Lipke and
Mr. Kym Henderson were studied.
Purpose and Research Methodology
Brief Outline
Earned Value Management (EVM) uniquely connects
cost, schedule, and scope parameters thereby allowing
for the creation of a unified metrics for reporting. It
gives Project Managers the ability to express the cost
and technical (scope related) progress of their project
easily to all key stakeholders. Cost is the unit of its
measure.
13
The author realized that EVM analysis became difficult
when there is a scope change, rate escalation, or in
projects where the output is not discrete but
exclusively based on level of effort.
Other practical issues faced during EVM implementation
are tracking costs at lower level, especially when task
completion is measured using a binary system.
A project governance system which is silent on cost
collection system, EVM related project team roles and
responsibilities, and data sharing is sure to upset the
EVM analyst’s effort in forecasting the future outcome.
Also of significant consequence, is the inaccuracy of
the plans, the mismatch between progress and
corresponding work elements as per plan and non-
integration of the plan with the WBS to enable tracking
of the budgeted cost values.
Above all, EVM analysis fails to yield fruitful results
while analyzing cost and time over-runs
Paper
EVM can be marketed as a wonderful project management tool only after few of its inherent weaknesses are addressed.
This is what I term as “fool-proofing EVM”.
Before addressing the drawbacks, it is important to list them down as well as trace their sources. S. No. Drawbacks Possible impact on EVM
analysis result Source of drawback
1 Cannot track effectively if scope/ cost parameters change
If they are altered to accommodate the change, then it might become difficult to reflect the original delay.
PV, EV and AC values depend on the baseline cost / schedule / scope parameters.
2
Difficulty in tracking costs at lower levels, especially when progress is measured in 0/100 system and not incrementally.
Inaccurate capturing of EVM metrics and thus, inaccurate reporting.
Cost calculations for intermediate stages of progress are difficult.
3 Lack of information on progress or cost budget.
Inability to generate reports on time.
Poor project governance
4
Plan related – Inaccuracy of baseline plan or non-congruency between planned and actual work under progress
Inaccurate inferences being drawn.
Miscommunication / Quality control failure resulting in mismatch between underlying data elements between PV and EV.
5 Inability to report schedule progress towards project end
Inaccurate reports that cause confusion to the uninitiated reader.
Design of EVM analysis
In cases where there is a scope revision, the EVM analyst must freeze his analysis on the progress until the
revision date and make a note of the reasons for variance, if any. The date until which the old baseline was
valid and on which the analysis was frozen shall be called the cut-off date.
Then, post re-baseline efforts, the analyst must create a new PV / EV/ AC chart but start plotting PV curve at 0
duration from that point on Y-axis, which represents the PV of the cut-off date. The revised planned value
curve may be plotted from that point. Similarly, EV / AC also must be plotted on Y-axis on 0-date and the
progress may be tracked from that point, instead of the origin.
14
When there is a rate revision but no quantity variation,
the case becomes simplified. The analyst can choose to
continue with the previous chart, after making
corrections to the EV / AC data supplied to him. He
must apply a suitable correction factor to bring parity
between the base-rates considered while computing
the Earned Value Metrics.
Where the cost calculations for incremental progress
are difficult to compute, the author recommends all
measurements to be made with reference to a rolled
up activity whose progress and costs can be easily
quantified. In such cases, micro-planning techniques
prove counterproductive.
Establishment of a formal EVM team with clearly
assigned roles and responsibilities and formalized data
transfer agreements between various agencies will go a
long way in eliminating problems related to data non-
availability. It will also address quality control issues
as it will afford better control over EVM work. EVM
implementation, being a top-down approach, the
presence of a formal governance body will give the
needed push it needs to gain acceptance as a Project
Management Tool.
EVM schedule indicators are, contrary to expectation,
reported in units of cost rather than time. They fail for
projects executing beyond the planned completion
date which mandates the analysis of both cost as well
as schedule reports separately, defeating the purpose
of EVM. One way to maneuver around this is to adopt
Earned Schedule, as proposed by Walt Lipke and Kym
Henderson. Their method proposes an additional
metric, called Earned Schedule, which must be
incorporated in the EVM reports to achieve greater
clarity.
The technique espoused by the duo to resolve the
problem of the EVM schedule indicators is Earned
Schedule (ES). The ES idea is simple: identify the time
at which the amount of earned value (EV) accrued
should have been earned. By determining this time,
time-based indicators can be formed to provide
schedule variance and performance efficiency
management information.
It explains an illustrative way (graphical method) to
arrive at the Earned Schedule value.
Projecting the cumulative EV onto the PV curve (i.e.,
the Performance Measurement Baseline), determines
the position where planned value (PV) equals the EV
accrued. This intersection point identifies the time
that amount of EV should have been earned in
accordance with the schedule. The vertical line from
the point on the PMB to the time axis determines the
“earned” portion of the schedule. The duration from
the beginning of the project to the intersection of the
time axis is the amount of earned schedule (ES).
With ES determined, time based indicators can be
formed. It is now possible to compare where the
project is time-wise with where it should be in
accordance with the PMB. “Actual time,” denoted AT,
is the duration at which the EV accrued is recorded.
The time-based indicators are easily formulated from
the two measures, ES and AT. Schedule Variance
becomes SV (t) = ES - AT, and Schedule Performance
Index is SPI (t) = ES / AT.
Take away Adopting these measures in totality, addresses all major concerns that arise while
implementing EVM will help us fool-proof Earned Value Management Analysis.
Shashank Neppalli is a Project Management Professional with demonstrated ability to plan and control,
complex engineering projects. In addition to Planning & Monitoring, he possesses in-depth knowledge of
Material Management, Contracts Administration, Risk Analysis (Project as well as Credit Risk).
He is fond of swimming, trail running and scrambling.
About Author
15
1. Unseen Costs of Attrition
Apart from the productivity loss due to a vacant
position, hiring and training a new candidate,
unseen cost of Attrition are:
Reduced Productivity from the departing employee during his job search (sometimes called “short-timer’s disease)
Departed employee attempts to woo his or her past customers to his or her new employer
Negative impact on the customer
Attrition and the Role and Responsibility of Management
By Pooja Gandhi PMP®
work hard be loyal give their all
In return, they would have:
a job for life a home away from home regular salary increases a good chance for a promotion
Why control Attrition?
The average costs of replacing today's non-performing work force are eating away at the profitability of even the healthiest organizations. Even if the bottom line remains intact, the loss of just a handful of key employees who have a special expertise or who maintain valued customer relationships can shake an organization to its roots. The alternative is UNACCEPTABLE. .
*“People leave managers not companies...” – This has become like a proverb in the industry now. But what action are
we talking for this? Do we really accept this statement completely? Or we accept it partially? Or we don’t buy it at all?
Let’s dig out more and see if we, as Project Managers or Program Managers or Directors, can make a difference.
Best Practices – People Management
Changing Times - Then and Now
Retaining top talent was less of an issue in the past, but the shifting tides of the unspoken employee/employer contract have created new currents in the workplace. The old contract asked employees to:
The new contract is substantially different. It states that employees must now work harder, do their jobs and also the jobs of their former co‐workers who were "right‐sized." In return, job security is extinct, promotions are scanty, salary increases are modest at best, and the constant uncertainty of change is almost guaranteed. Is it any wonder that employee loyalty is on the demise and talented individual contributors and manager’s feel less bonded to their organizations?
Attrition - Hard Truths
2. Reasons of Staying are not the same as the Reasons of Leaving
Traditional exit interviews just scratch the surface of the cause for attrition. They inevitably fail to differentiate between factors that make the new job attractive to the departing employee, versus the reasons why the employee was prompted to consider leaving his or her current job in the first place. They may have started the job-search due to absence of professional development opportunities but may report “better compensation” as one of the main reasons for leaving. The result is misdiagnosis
and improper prescriptions.
The Philosophy has changed to
“Reducing Attrition” to “Managing
Attrition”
I welcome you for
joining and part of
our organization!
As a policy we only do
appraisals/promotions
when people leave us.
16
As a family
member, we
would like you
to remain self
motivated and
happy, to help
us achieve
0% attrition.
Organization is
like a family! We
believe in you
Piy
ush
Govil
PM
P®
this, organization’s recruiting system and processes also impact retention ratios.
a. Tracking – Measuring and Accountability
Retention should be a proactive and on-going process. Proper measurement criteria should be defined so that the right actions can be taken. Accountability plays an important role to make it a success. It can be categorized as a “Manager Issue” or a “HR Issue”. It can take a new perspective only when it becomes one of their business goals.
Top talented employees recognize that they represent a critical and valued organizational asset. When their loyalty deteriorates, their tendency to switch organization increases;
3. Manager - Paramount but Underplayed Role
Studies have shown that managers attribute attrition to external organizational factors like ‘Compensation’, ’Rigid Policies’, failing to take any personal responsibility. However, it has been found that a large number of factors contributing to employee retention are within manager’s periphery of influence. Managers need more guidance than earlier as his span of control has been widening and the number of times the manager “touches” the employee is less frequent. “Touch” here implies influence employee motivation and commitment
4. Prevention is better than Cure
The loss of key employees may prove to be huge loss. Importance should be laid to not just tracking overall attrition ratios, but also the level of performers who are leaving. As per studies, an average manager thinks about retaining the employee, when he or she receives the resignation. On top of that, most managers try to convince the resigned employees that they are making mistakes. This leads to more resistance in the employee. In rare situations, when the manager convinces him to stay, he or she may leave within six to nine months anyway (if no preventive steps are further taken). Treating retention as an on‐going priority enables the manager to focus on proactive measures to sustain long term employee commitment, rather than
on reactive attempts to reverse surprise resignations.
Retention – On-Going Process
As per research and studies, the three pillars required
to achieve world class retention are:
b. Managers
Manager plays a significant role in influencing the employee’s commitment level and retention. These retention practices are not a standard menu; instead they represent the manager’s actual behavior on the job and the climate they create around. While enlightened leaders balance the needs of the organization with the needs of the employee, the truth is that these leaders are rare. Though managers play a very crucial role in retention, they do not control all of the factors that can affect attrition. Therefore, the second component represents the organization's responsibility in the retention equation.
c. Organization Retention Systems
The major components are pay-scales, opportunities for employee growth, good and transparent policies,
effective top to bottom communication etc. Apart from
Best Practices: Case Study
Having discussed about the key facts about attrition, I would like to share some of the Best Practices introduced in my group at the Management level, since past more than 1 year, as a pro-active step towards employee engagement and controlling attrition rate. Key focus areas are:
Information Sharing Participation in Planning and Execution Role planning, assistance in career growth &
concern handling Focus on Innovation & Initiatives Fun @Work
Before these practices were introduced, all the managers were imparted special trainings in People Management aspects. These practices are now part of our processes.
17
Owner and Group Lead Every Group Owner, Program Manager and Project Manager conducts monthly 1-O-1 meetings with each of their line reportees and documents the minutes of the meeting in a defined format. The objectives are manifold as follows:
1-O-1 Meetings
Frequency – Monthly (For a year), Now reduced to 2 Times a Quarter Duration – 30 minutes to 1 hour Tracking – All 1-O-1 sheets are reviewed by Group
Every Group Owner conducts a Skip Level Meeting for all the teams with him in small groups of 10-15 people. He may also conduct 1-O-1 skip level meeting, if required. The objective is to unfold and bring up concerns that remain un-addressed in a 1-O-1 meeting with the Line Manager. Sometimes, the groups are formed with employees from different teams. The Group Owner ensures that the environment is comfortable and people speak their mind and heart.
Skip Level Meetings
Frequency – Quarterly Duration – 1.5 hours to 2 hours
Tracking – All skip level sheets are discussed in Management Meetings Group
To listen and understand employees concerns and their addressal
To understand employees professional expectations and aspirations
To suggest him steps and provide them opportunities for his career growth and tracking the same
To help him understand his scope of improvement and to appreciate his improvements and achievements.
Based upon the inputs received through 1-O-1 meetings and skip level meetings, current roles and responsibilities, strengths and weaknesses, concerns and aspirations of each employee in the group is discussed. Steps to ensure resolution are discussed and tracked till closure.
Quarterly Role Planning Meeting
Program Manager conducts weekly team meeting in which he informs the any company or group level update, status of the project, ensure teams participation in risks and issues discussion, shares appreciation etc. This ensures that there is an open communication channel between the team and the Program Manager and Program Manager is aware of all the minute things of the project and the team.
Program Manager Weekly Team Meeting
18
Appreciations can be in any form like Customer Feedback, High Ownership, Technical Acumen, Solving critical issue, Mentoring, Individual Excellence, Innovative Thinking, Customer Value Creation, Support, Best Practice Implementation, Best Practice Suggestion, Good contribution to CoDe, Initiative etc. Recognition and appreciations are also tracked for each team on monthly basis.
Celebrations and Appreciations
Apart from the above monthly celebrations, a quarterly event is organized for all the teams in the group in which the Group Lead addresses the team and various fun events, games are organized. In this event, apart from prizes, technical awards are presented. In the last 1 year, 2 events were conducted within office premises and 2 events were conducted outside. Team enjoys such events and connects to people outside their project team. This helps in building team cohesiveness.
The positive impacts of the above practices include:
Reduction of dis-satisfaction among the employees Team feels more connected to the Management Establishment of a formal communication channel/medium and information flow in both the directions Resolution of problems under management’s control Proper escalation of problems to the other support groups, as applicable
Quarterly Meet - Group Lead addressal and Fun Events
Take away “Let’s be pro-active than Reactive”;
“Let’s own it” and “Let’s manage it rather than accepting it”
Pooja Gandhi PMP is currently associated with Aricent as Senior Engineering Project Manager/Program
Manager with 12+ years of industry experience in the field of Telecom Software including wireless
technologies like 2G, 3G etc for Tier-1 OEMs like NSN. She is in management role since past 5+ years in the
capacity of Project Management and Program Management. Currently handling projects in various
domains like Location Based Solutions, Platform Development, IMS and Optical Transport Networks”
Reference::
*Source: CMI (Chartered Management Institute) Survey November 2009; CIPD Resourcing and Talent Planning. Annual survey report 2010; CIPD Employee Outlook. Year Review Summer 2010 References for Research and Study- The Challenge of Retaining Top Talent: The Workforce Attrition Crisis By B. Lynn Ware, Ph.D., and Bruce Fern
Successful Project Outcome with Prudent Feasibility Study
By Kanav Chauhan
One of the crucial segments of the project life cycle is feasibility study which is undertaken by all
types of businesses, teams or projects in one form or the other. The better the feasibility study
lesser the chances of failure of the project. It is like laying the foundation stone of the building.
Better the foundation laid, better the strength and shape you can give to your project.
Objective- Key Components- Benefits of Feasibility Study
The objective of the feasibility study is the identification of one or more solutions that meets the specified business needs.
When there is uncertainty about the desired outcome being delivered by the proposed solution, some clarifications can definitely be achieved by conducting the proper and systematic feasibility study.
Main criteria to judge the feasibility are the cost required and the value to be attained at each stage of the project in order to move ahead with the project.
Various stages of feasibility study
Conceptual stage is the initial stage when the study of
what the client expects with regards to the system
implementation is carried out.
The approach which
contains key attributes
as-
What are the possible target markets for the proposed product of project
Who are the competitors in this market and how good they are established
How will the our product differentiate from those of its competitors
Which are the areas where feasibility has to concentrate knowing the SWOT analysis
Where are the results leading us to
‘TELOS’
T Technical feasibility
E Economic feasibility
L Legal feasibility
O Operational feasibility
S Scheduling feasibility
T
E
L
O
S
Key Areas for Questioning
Elaboration stage is the one where the designing of the
system based on the outcome of the analysis of the
initial study is done.
20
Construction Stage is defining the requirements of the
system iteratively on the basis of the development.
Implementation Stage is the stage since the agreement
was made with the client in the initial stages of the study
so the finally the proposed solution is implemented in the
client location.
Key
Learning’s
The feasibility study should very clearly and strongly support its recommendations The report submitted should have very clear explanation of the result achieved The recommendations that it wants to provide should be easily understood and
should be in line with the objective of feasibility study
An important tool for the client towards fast decision making process
Project Management in a LEAN Way
By Visukumar Gopal PMP®
LEAN is a Strategy, Philosophy, and Leadership
Approach for operating in a Superior Way. LEAN
thinking is a powerful methodology that can help to
maximize the Real Value. LEAN Principles and Tools
are very much applicable in the Project Management
Process. Many tools of LEAN can be used and
Principles can be followed as part of Project
Management Profession.
Constancy of
Purpose
Respect for
People
Pursuit of
Perfection
LEAN
Way
Kanav Chauhan currently working as Associate Consultant with TCS, she has done MBA in operations stream and has
total 14yr + experience. Core area of expertise is Telecom and has worked on the Greenfield projects in Telecom
infrastructure domain. Earlier experience involves working with Reliance Communication ,UTstarcom (AN US based
OEM for Telecom)and ISPs .Have managed clients like TATA , Bharti Airtel ,Bhutan Telecom ,Sri Lanka Telecom ,Nokia
Siemens Networks etc .Her core strength is strong communication management and the team handling .
She is fond of reading and wants to do doctorate in Management. Other hobbies are exploring the new
places, meeting new people and have a dream to go on world tour.
About Author
21
The following three Principles are foundation of any
projects to start in a LEAN way:
Constancy of Purpose - Any project which we want to
do should have a Constancy of Purpose. During
initiation, we need to set the mindset of all the
project stakeholders to complete the project
successfully, and expectations need to be set and all
should agree to go in a Unified Direction.
Respect for People – It allows bringing full potential
of the team members throughout the project duration.
Even small ideas need to be explored in non-critical
environment, which helps people to build the level of
confidence.
Pursuit of Perfection – It helps to refine the
deliverables more and more accurately and meet the
requirements to full extent and beyond the
expectations also.
PLANNING
New initiatives should be given a room to seize the
opportunity to make a difference in project
deliverables. Proactive Behavior helps in planning
things in an effective way and helps both project team
and individual’s commitment to deliver in a well-
disciplined way.
LEAN is not for fixing People; it is more helpful to
fix the Process and influence the Behavioral
Change.
Always
remember
From the implementation point-of-view, the following
practices can be followed:
EXECUTION
During Execution phase, project team starts
delivering as per the Customer Expectation.
Voice of Customer (VoC)
VoC gives and explains the business process and
expectations of customers very clearly. Most of the
time, VoC is interpreted so as to get the feedback
from the customer. If we follow the Proactive
Behavior while listening to the customer, then his
requirements become crystal clear to us.
While working in a project with multi-
vendors/function teams, we need to understand their
challenges and constraints by getting into their shoes.
System Thinking
This System Thinking helps us avoid unnecessary
communication like heated arguments and reduce the
waste of utilizing the communication sources such as
email and telephone. Once the perspective about the
requirements and functions of the stakeholders are
understood, it helps us to deliver the project
deliverables with Quality at the Source during the
execution phase of the project.
22
Piy
ush
Govil
PM
P®
CONTROL
During the Control phase, if we observe how things
are moving within the project, which depends upon
the progress, we can set the work to flow and
customers can pull the value from the next
upstream activity. This stabilized Flow/Pull
mechanism helps in an easy way to control and
monitor the project.
CLOSE
In the Close phase, we can see the Culture Change
along with Lessons Learned. The strong foundation
in the Initiation phase, Behavior change in the
planning phase, Perspective clearance in the
execution phase, Flow /Pull mechanism in the
control phase help us to build a culture change
during the close phase of the projects. Culture is
the cap stone of the LEAN principles pyramid.
-Flow/Pull
-Culture
-Voice of Customer
-System Thinking
-Proactive
Behaviour
PLANNING
EXECUTION
CLOSE
CONTROL
Some of the LEAN Tools that can be used are as follows:
PLANNING/ESTIMATION
LEAN tools such as Pareto, Cause and Effect analysis have already been used in the Project Management practice. There are a few other LEAN tools which can be used in the effective Project Management.
TAKT Time is the one that helps the project manager during the planning phase of the project to identify the available time for production per day to meet the customer demand.
While doing estimation, we calculate the hours of effort of a person to complete the project. This tool helps us to calculate tiny task deliverables on
time, which can be attributed to effort calculation:
TAKT Time = Available time for production per day
Customer demand in that time
EXECUTION
Heijunka: This tool is more useful in load balancing during the execution phase of the project. It actually helps in leveling of task flow and delivers as per the customer’s demand in small batches to result in
optimum resource utilization.
There are two types of Heijunka:
Leveling of production by the number of tasks
Leveling of production by task
severity/customer’s need
PokaYoke: is more useful in doing execution. While developing and producing the deliverables; simple, failsafe methods which prevent mistakes from being made or from becoming defects known as PokaYoke.
Planning/Estimation
TAKT Time
Execution
Heijunka
PokaYoke
Kaizen
Control
Kanban
Kaizen
Close
Kaizen
23
It helps in the following three ways:
Eliminate the cause of an error at the source.
Detects an error being made/developed/produced.
Detects an error soon after it has been
made/developed/produced, before it reaches the
next operation/level.
CONTROL
During the control phase of the project, Kanban can be used to monitor the task completion. This signal system helps us to perform priority-wise task allocation. Different systems can be used for this signaling mechanism, which is an effective way of monitoring in the control phase.
CLOSE
Kaizen tool can be used in the execution,
control, and close phases of the most project
types, because Kaizen means continuous
improvement. As per the LEAN principle, pursuit
of perfection drives to the Kaizen event.
Whenever required, a small group of people
gather and brainstorm in a structured approach
on possible improvements. This tool helps us to
take ideas to innovation.
Take away
Marrying LEAN Principles & Tools along with project management will increase the project success rate and will also improve the efficiency, productivity, and on time completion of the project.
LEAN and Project Management have their own tools and techniques, which can be collaborated and effectively implemented for Project Organization’s improved performance.
About Author
Special thanks to Innodata Inc Team for volunteering their valuable time to leverage their expertise in Proof Reading!
Thanks to Nitin N Singh to facilitate this task.
Visukumar Gopal is a Versatile Practitioner, Energetic Coach, Corporate Trainer and Public Speaker, who
is passionate about transforming individuals, teams and organizations into improving their Process,
Project management, Operation practices and Delivering Business value.
He has over 17+ years of professional experience in IT and Non-IT. He is a certified Project Management
Professional (PMP), LEAN Six Sigma. He served with MNCs like CITIBANK, GE, and DATA ACCESS and
currently with SYNTEL - CEO’s Office as Practice Manager and leading strategic initiatives.
Ms. Shipra Pokhriyal (Chief Copy Editor- STM)
Mr. Sandeep Kumar Bacheti (Group Manager- Editorial)
24
Project Leadership: A Way to Become a Program or Portfolio Manager
By Ajaibir Singh PMP®
It is always easier to stick with the status quo and
manage projects as they have been managed before---
utilizing old techniques that everyone is expected to
use. However, it may not be beneficial for the long-
term growth of the organization. It is much more
challenging to step out into a new arena and change
the way people think about teams and projects. For a
project manager, this could mean taking
accountability as a responsible team and moving
forward as if the project is going to be rewarded. The
advantage to use a new paradigm is that organizations
can change overnight if there is enough passion to
move forward.
In the past, project management was seen not as a
proactive approach, but as a restrictive one, because
of the antiquated management techniques that were
being used. However, if we create highly effective
teams and develop proactive projects, then it will not
only change our industry, but also our values to an
organization: we will go from being an added expense
to being a competitive necessity.
When we discuss project management and project
leadership, the first question that arises is: are we
talking about the same thing? The answer is no, we
are not. The term management came on its own
during the industrial revolution. This was a period
during which the thinking of the entire population
underwent a fundamental change. The work
environment moved from consisting of a small group
of people (usually a family) working in a subsistent
process to that of a large group of people whose work
was overseen by an organization. The organization
needed to develop tools and techniques to get the
work done economically, efficiently, and as quickly as
possible, and the response to this need was the
creation of the management techniques that we still
use today. These techniques revolve around
measuring productivity and motivating individuals to
produce more in a short period of time. However, the
motivation techniques used today are very different
than those originally used during the industrial
revolution, and there are far more standards and
requirements to be adhered to than in the past.
As organizations become leaner, project managers are asked to manage their projects in a more dynamic way. A project manager must be passionate and involved enough to inspire the entire team to get behind the endeavor and work to its final, successful conclusion. While working through this process, he or she must manage internal and external stakeholders, finances, quality customer service, and the risk and implications thereof. In many ways, a large project can be like a small business. It can redefine markets and change the course of business on a regular basis.
This entrepreneurial role requires the project manager to move out of dealing with the standard forms and documents and into a larger world of running the equivalent of a small company. Within the larger organizational structures, this is nothing new. Several project managers run projects the size of Fortune 500 companies. The difference is that these project managers do not use management techniques but rely more on leadership. This is because, the projects are so large that they cannot deal with all of the workers on an individual basis and require a leadership role to control and execute a project of this size. One of the reasons that the term management is still used is because “leadership” is difficult to define and evaluate. Developing leadership takes time and energy and is very difficult to quantify, especially over the short run. Management techniques are designed to be easy to quantify and direct, and are therefore easy to manage. If an individual truly wishes to be a project leader, it is a long road which requires a tremendous amount of learning by practice and is a process that is very difficult to document.
The Qualities of Leadership
The most rudimentary distinction between leadership
and management is that a manager is given a series
of tasks that he or she must get done by working with
other people. On the other hand, a leader has a
vision and must achieve that vision by working
through other people and bringing them on board
with that process. When bringing these individuals on
board, the leader recognizes that each individual will
either have an interest or lack of interest in
25
supporting this vision, and part of this leader’s requirement is to move all of those individuals from the uninterested to the more interested or active processes. Leadership is a quality hard to measure. There are
hundreds of books claiming to be able to describe
exactly what leadership is and tell how to embody
leadership qualities. I do not believe that the essence
of real leadership can be captured in a book.
However, if pressed to define leadership, I would say
that a leader is an individual who inspires, cajoles,
encourages, threatens, cheerleads, and serves a group
of people to get a specific task or series of tasks done.
The difference is that in the end, the group would feel
that they “did it themselves” rather than that they
were led.
This is a very different leadership style than what is
Without vision, the end is never in sight.
Without a clear understanding of where to go, a
project leader is like a ship without a compass. As a
project leader, it is important not only to be able to
see the end place, but also to understand why this
project is important---tying back to the corporate
strategies and being able to describe this vision to
the entire team. Making sure that the project is on
time and moving in the right direction becomes one
of the things that the project leader does almost
unconsciously to inspire the team. If the project
leader is unsure of the vision or it is unclear, the
project team will recognize that and may react
poorly.
practiced in most organizations,
but it is exceedingly useful in
guiding project teams to achieve
their ultimate effectiveness. It
takes the emphasis off the project
leader and shifts it to the project
team. When a project manager is
able to serve his or her team, then
he or she will lead that team much
better. This takes most leadership
ideas and turns them around. This
is a leader who is down in the
trenches as well as out in front,
with his or her team working
through the problems, inspiring
them as they go, and pushing the
credit down to them instead of
expecting to get all the kudos.
Although this article argues that the emphasis needs
to be shifted from the individual project leader to the
team, it is important to recognize that the project
leader must fulfill several prerequisites before he or
she is able to provide good leadership and focus on
the team. Although there are certainly many other
prerequisites, the following are vital as a starting
2. Moving from Project Management to Project Leadership: A Practical Guide to Leading Groups (Industrial Innovation) by Camper Bull (Apr 29,
2010)
Latest technology trends and effective Project Management
By Brijesh Sharma PMP®
Every now and then, in every industry we have
disruptive innovations which change the way we operate
and manage our business model. Cell Phones destroyed
the pager market, IPod’s wiped out walkman, Digital
camera made film cameras business unviable.
How Cloud computing will
change the way we manage
projects?
Ajaibir Singh is working as Delivery Portfolio Manager in IBM India and has 20 years of experience . He has
served as the catalyst for successful completion of Program, Project and Technical Services initiatives in
the ITES /IT/Construction Industry, complimented by Project & Program Management Certification, BE,
M.B.A Degree from F.M.S, Delhi University and certified Lead Auditor for ISO-27001.
About Author
29
Organizations are looking out for these innovations so
that they are not only ready to sustain their business but
also to take advantage of these technologies and change
the way they manage their business.
What do we understand by “Cloud computing”?
Cloud computing’s simplest example would be using any
free email services on the internet- you don’t own any
product; you don’t know where the servers of email
services are located; you just use the email services
over the internet. Cloud computing uses the same
concept. There is no need to buy the servers, software
licenses or expensive high tech hardware. You just need
to have dummy computers and an internet connection to
access the storage space and applications which is
hosted by a cloud hosting company and you just pay for
the services which you have subscribed to.
Although the concept of cloud computing was there in
industry for more than a decade but it was not until
recently that cloud computing has become the buzz
word in the industry. Some of the reasons could be
Lack of any major company providing end to end cloud solution
Technology was not fully available to support cloud computing
Companies were not fully aware of benefits of using cloud computing and
Companies considered cloud as risky proposition in long term prospective unsure about its sustainability
Since the cloud concept is different from the way
we have used technology till now, the way we
manage technology and handle projects will also
change drastically.
Some of the benefits which can make cloud
computing a destructive force are:
1. Reduction in Total cost of ownership
Cloud computing dramatically affects your costing
model
model, effectively reducing server installation cost
and software and associated license cost as well as
time required for server setup.
As shown in fig. b page 31, for organizations going for
cloud computing, the TCO (total cost of ownership)
which includes cost of servers & software,
Fun with Cloud Computing…
GOD! Listen to my prayers,
My job can only be saved, if I am
able to collect some of my
competitor’s data… who cares even if
some of my critical data drains of…
Piyush Govil PMP®
30
installation and operating costs will reduce drastically in
later phases as compared to cost of ownership of
infrastructure.
FIG b. Depiction of cost difference between cloud implementation and present technology implementation
(Note: data is hypothetical used only to depict the concept)
2. More control to clients post deployment
Since the application will be deployed on the cloud
hosted by cloud solution providers, these companies
would give more control to end customers in terms of
expanding or reducing number of subscribers, up
gradation of software and modification of application in
terms of providing more features.
3. Energy savings
Companies won’t be requiring server ownership resulting
in reduction of number of servers which will help in
reduction of energy consumption and to some extent
release of greenhouse gases.
4. Ease of access of applications
Employee can share and access data online from
anywhere with internet connection and doesn’t require
development of any company specific platform.
5. Short lead time for setting up IT in an organization
Organizations using cloud computing can quickly get into
subscriber base contract with cloud service rendering
companies and can also rapidly ramp up their subscriber
base which reduces their lead time to market by
considerable amount.
Some concerns about adopting Cloud
computing solutions are:
1. Data privacy issue
Cloud computing uses shared service and
space issue where one server is used for
sharing service and storage space for
multiple companies. This poses threat of
theft of sensitive information for firms not
only by other firms but also by hackers.
2. Loss to firms with existing IT systems
If a firm already has an IT system in place,
then moving to cloud technology means
transitioning from fixed cost structure to
variable cost structure of fee per
subscriber basis. This can be true for large
firms having huge fixed technology assets
such as servers, intranet etc. and large number of
employees subscribing to cloud services.
3. Slow response time
The response time of application installed locally or
on company’s private network will always be faster
than applications installed on cloud. This might
reduce the efficiency of their workforce.
4. Huge investment cost for some firm
Cloud computing solution is based on internet
connectivity from organization to cloud service
provider. If firms have to transfer huge amount to
data or information to/from cloud, then it will
require large investment in setting up high speed
internet connectivity preferably using optical cable
increases cost for firms.
5. Less visibility of risks
Cloud service providers are reluctant to share the
information about the specification and location of
their infrastructure. This increases the risks majorly
in two cases, first being that the firm is not aware of
the security features such as firewall, antivirus etc.
applied to protect their critical data. Second, the
backup plan in case of any nature or manmade
calamity on the server hosting facility, will there be
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6. Reluctant to adopt to new technology
Cloud computing is still under testing mode when it
comes to large scale implementation and hence firms
are reluctant to rely on it as they are not sure whether
these technologies will be sustainable in long term or
not.
7. Project Development and Migration to client
environment
Companies can go for private clouds which are just such
as public clouds (which we call cloud computing) but a
private cloud can be accessed and used by only those
organization which it was setup for. This may be a
challenge as the migration of data from private cloud to
another cloud could pose a risk as these clouds could
have been developed and managed by different
companies such as Amazon, Microsoft or Google with
different underlying software and compatibility issues.
Role of a project manager
a. From implementer to selector
The role of a project manager will change from
implementer to selector of not only technology but also
vendor of technology. Project manager will bridge the
gap between the business and technology requirement
for client he would be having utmost understanding of
client business needs. Project manager can suggest the
type of technology, scale of licenses and vendors for
different phases of client business.
b. Understanding of quadruple constraint
The biggest concern for companies implementing cloud
solution is data privacy. Since in cloud computing, many
organizations are sharing the software, services, memory
space on license basis, there is possibility of theft of
sensitive information which can be anything from
financial information to launching of new product by
competitor. It will become project manager
responsibility to include risk management in triple
constraint of scope, schedule and cost. Understanding,
managing and communicating to stakeholders regarding
various risks pertaining to cloud computing such as data
privacy, security and up gradation will become a crucial
part of project management activities.
c. Decision making role whether to adopt Cloud computing or not
Project managers should communicate the post
project implementation benefits and cons to all
stakeholders so that stakeholders are able to decide
whether to adopt cloud computing and modify the
scale and spending on cloud solution.
d. More emphasis on Communication and Collaboration
About 70-90% of project manager time is
concentrated around communication with
stakeholders. Managing virtual teams over different
geographical on new cloud technology would be
challenging. However, new tools will need to be
specifically developed for report or dashboard
generation depicting the team progress and thereby
saving project manager’s time on communication
and providing more visibility to stakeholders on
project progress.
Opportunities for project manager
a. Small to Mid size companies adopting Project Management
Many smaller companies, which were reluctant to
go for project management due to cost constraint,
will now take advantage of lower cost and will
invest heavily in projects. Understanding the
business needs, challenges and motivation behind
implementation of projects for small size
companies would be required by project manager.
b. Development of new technologies for Cloud
At present companies are investing huge sums of
capital in developing cloud technologies. Tools and
techniques developed specially for managing
projects on cloud would be required on large scale.
Since Cloud technologies are still evolving, project
managers can custom design these tools according
to their needs which could later become industry
standard.
32
c. Abundant resources but scarce Project Managers for Cloud
With the slowdown of business growth, organizations are
increasing their expenditure on new projects directed
towards better visibility in their business, reorganizing
of business and product portfolio to provide better
control over cost. With other resources being available
in abundance mostly contributed by slowdown in global
economies, the demand for project managers is bound
to increase which can provide more growth opportunities
from them.
. Challenges for a project manager
c. Understanding of underlying technologies nitty-gritty
Emphasis of understanding of underlying technology
would increase which would be essential for
identification of risks, challenges and opportunities in
new environment of cloud computing. This would be
required for devising strategy for handling of data
privacy issue which is a major concern for companies
while adopting cloud based solutions.
d. Contract terms with Vendor in Cloud
Presently, costing of most contracts is based on set of
historical data or pre-determined factors such as number
of users etc. As limited data is available for cloud,
project managers would have to evaluate new factors
when selecting and awarding contracts to vendors.
Activities related to security, scalability and
compatibility of application on cloud, formulation of
contract terms including new pricing model and project
scope would be required in great extent.
a. Regulatory Compliance across business and countries
Application on cloud can be accessed via internet
from anywhere, so understanding the various
regulatory measures of different countries would
be essential for project managers before starting
the project.
For e.g. there can be few countries which would
not allow public data especially related to finances
such as pension, defense projects to be accessed
by anyone on internet due to threat of cyber
attack and leaking of sensitive information in
wrong hands.
b. Increase in project manager’s time towards maintenance activities
With the increase in subscriber base per
application, project manager’s involvement in
maintenance of application would increase. As
number of users would change dynamically,
involvement of project manager in support
activities would also be dynamic in nature that
would pose challenge for time allocation to
activities.
Upcoming Events:
1. An evening with IBM – 5th October;2012, Noida
2. PMI North India Chapter AGM – 6th October’2012 (kindly vote on survey for Chapter ByLaws by 5th of October’2012)
No Quiz
In this edition due to no
participation in last two
editions. We shall
introduce again based
on member’s feedback
and interest.
33
Conclusion
For any technology to radically change the way we manage our projects, it’s availability along with project
managers who knows how to use and take benefit of it is essential. Project managers should have understanding
of pros and cons of cloud technologies, latest offering in cloud computing along with knowledge of core
competencies of different cloud vendors so as to provide best possible solution to their clients.
Special focus should be on risk management, cost benefit analysis and vendor management when it comes to
managing projects in cloud environment.
As Cloud technology is growing at a tremendous rate and would grow by three fold in next three to four years,
there is an increasing need of project managers who can manage projects in these technologies. Are we ready for
this change in project management?
Brijesh Sharma is pursuing MBA in Operations specialization at Symbiosis Institute Of Business Management, Pune.In 2012,I cleared two international certifications, Six Sigma Black Belt from ASQ (certification number : 12679) and Project Management Professional (PMP No. 1508554). I completed my Bachelor of Technology in computer science and engineering in 2007. I have 3.5 years of work exp. in Accenture and Infosys where I worked in projects in various domains such as manufacturing, FMCG, retail etc.I enjoying playing sports and watching documentaries.
About Author
Past Events
Seminar on Project Management - Structuring Projects to Ensure Success September 1, 2012
PMI North India Chapter recently organized an event on project management for the MBA students and
faculty members of Asia Pacific Institute of Management (AIM) in Delhi on 1 September. This was followed by
a five-hour knowledge-sharing chapter event at AIM for chapter members and corporates on “Structuring
Projects to Ensure Success”. The event was sponsored by AIM and was publicized in the institute’s corporate
circle through mass mailing, roadside banners, posters, and media coverage.
Nearly 200 guests from
industry, government,
and former and present
chapter members
attended the session.
34
The chapter program was inaugurated by
Shri A.K. Shrivastava, chairman, AIM, along with PMI
North India chapter president Mr. Manoj K Gupta.
Institute director Dr. D. K Batra, Director AIM gave the
welcome speech, followed by a detailed presentation on
infrastructure and services at AIM by the institute’s
dean, Prof. B. D. Singh. Mr. Gupta gave a presentation
on North India Chapter, its mandate, an update on the
chapter’s work in the past 2-3 years, new initiatives,
and upcoming events.
Speakers
Mr. Deepak Mehtani, deputy director, UI Inc.,
Mr. Kumar Saurabh, senior manager, Samsung Engineering