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CLOSING THE GAP CONNECTING THE LINKS

The Role of Project Management Methodology in Strategic Management

Presenter: Richard C. de Lima, B.Tech, M.ES, PMP


Project Management Institute Southern Caribbean Chapter 6th Biennial International Project Management Conference

BRIDGING THE GAP: Strategic Thought Transformed through Project Management

Hyatt Regency Trinidad,

September 21-222011 ,

INTRODUCTION

LINKING THINKING, PLANNING AND DOING

For Sustainable Organizational Performance and Competitiveness

INTRODUCTION

PROJECT MANAGEMENT IS THE OPTIMUM MECHANISM


FOR TRANSFORMING STRATEGIC

PLANS
INTO CONCRETE ACTIONS AND TANGIBLE OUTCOMES
THE PMBOK GUIDE 4TH EDITION

INTRODUCTION

PRESENTATION OUTLINE
THE PROBLEM: THE FAILURE TO IMPLEMENT SUCCESSFULLY
THE GAP STRATEGIC MANAGEMENT - HOLISTIC APPROACH AND INTEGRATED SYSTEM METHODOLOGY: KEY DRIVER OF SUCCESS SELECTION OTHER DRIVERS OF SUCCESS CONCLUSIONS

THE PROBLEM: THE FAILURE TO IMPLEMENT

SUCCESSFULLY

THE PROBLEM: THE FAILURE TO IMPLEMENT SUCCESSFULLY

FAILURE WITH STRATEGIC PLANNING

COMMITMENT CLIMATE ORGANIZATIONAL POLITICS RESISTANCE TO CHANGE BAD PRACTICES

THE PROBLEM: THE FAILURE TO IMPLEMENT SUCCESSFULLY

FAILURE WITH STRATEGIC PLANNING "DISCONNECT" BETWEEN STRATEGIC PLANNING EFFORTS AND ANY REAL WORLD ACTION SEEN AS A SEPARATE ACTIVITY FROM MANAGEMENTS PRIME RESPONSIBILITIES AND DUTIES

WEAK PLANNING ASSUMPTIONS e.g. PREDICTION OF FUTURE DEVELOPMENT


FORMALIZATION FOCUS NEGATIVE IMPACT ON CREATIVITY AND LATERAL THINKING MOST PLANNING MODELS DO NOT CONSIDER THE IRRATIONAL BEHAVIOUR OF EMPLOYEES, GROUPS AND ORGANIZATIONS.

THE PROBLEM: THE FAILURE TO IMPLEMENT SUCCESSFULLY

FAILURE WITH PROJECT MANAGEMENT

OVERDUE AND OVER BUDGET, OVER AND OVER AGAIN COMPANIES ARE INCREASINGLY KEEN ON PROJECTS.
WHY, WHEN SO MANY FAIL?

The Economist, Jun 9th, 2005

THE PROBLEM: THE FAILURE TO IMPLEMENT SUCCESSFULLY

FAILURE WITH PROJECT MANAGEMENT


PROJECT MANAGEMENT IS NOT A NEW SCIENCE - SIGNIFICANT EVOLUTION OF PRACTICE OVER THE LAST SEVERAL DECADES THE PMI - ESTABLISHED INTERNATIONAL PROFESSIONAL ASSOCIATION, - SOME 550,000 MEMBERS IN 185 COUNTRIES, - ALL SPECIALISTS IN MANAGING PROJECTS PMIs STANDARDS AND PROFESSIONAL CERTIFICATION EXAMS TAKEN BY THOUSANDS EVERY YEAR WIDESPREAD UNDERSTANDING OF PROJECT CONCEPTS, METHODS AND TECHNIQUES AROUND THE WORLD VIA THE PMBOK

Why do so many projects still go so wrong?

THE PROBLEM: THE FAILURE TO IMPLEMENT SUCCESSFULLY

FAILURE WITH PROJECT MANAGEMENT


PROJECTS, SAYS THE PMI, HAVE FIVE DISTINCT PHASES: I. II. INITIATION PLANNING

III. EXECUTION IV. CONTROL V. CLOSURE

PROBLEMS ARISE MOST FREQUENTLY WHEN

INITIATION GETS SEPARATED FROM EXECUTION

THE PROBLEM: THE FAILURE TO IMPLEMENT SUCCESSFULLY

FAILURE WITH PROJECT MANAGEMENT


OTHER SPECIFIC PROBLEMS:

Trying to Manage Every Project the Same Way


Project cant begin on time Vague requirements Poor Stakeholder Management Communication breakdowns Staff gaps Fear about not sticking to the tried-and-true

Lack of Strategic Alignment

THE PROBLEM: THE FAILURE TO IMPLEMENT SUCCESSFULLY

CONCLUSIONS ON FAILURE:

WHEN
INITIATION GETS SEPARATED FROM EXECUTION; THERE IS A LACK OF STRATEGIC ALIGNMENT;

PROJECTS ARE NOT IN CONFORMANCE WITH


STRATEGY THERE IS A GAP!

THE GAP

THE GAP

DESPITE:
THE CONSIDERABLE BODIES OF KNOWLEDGE BUILT UP OVER DECADES OF DEVELOPMENT; THE TECHNOLOGY ASSETS MADE AVAILABLE FOR IMPROVING EFFECTIVENESS AND PRODUCTIVITY; AND THE EXPERTISE ACQUIRED AND DEPLOYED IN INDIVIDUALS AND TEAMS

PROBLEMS AND CHALLENGES REMAIN IN LINKING THE OUTCOMES

OF STRATEGIC ASSESSMENT, STRATEGY FORMULATION AND


STRATEGY IMPLEMENTATION

THERE IS A GAP!

THE GAP

THERE IS A GAP:
Between strategy formulation and strategy implementation; Between strategic planning and project management; Between methodologies and processes; and Between organizations, disciplines and people

SO IMPLEMENTATION OF VISION FALLS SHORT

THE GAP

It is not uncommon to find situations in different companies where projects are being implemented without a consistent and direct relationship with the companys strategies.
Closing the Strategic Vision/Implementation Gap Donald E. White and John R. Patton

THE GAP

MISSING LINKS CAUSE THE GAP TO EXIST. THEY: Slow down implementation; Often cause excellent strategic direction to become dysfunctional; and Include: A focus on Strategic Implementation;

A Common Top-Down Understanding;


An Organization Focal Point; Alignment Across Functions; Executive Transition Mitigators; and Feedback Loops

THE GAP

CLOSING THE GAP IS ESSENTIAL TO ATTAIN AND SUSTAIN COMPETITIVE ADVANTAGE

THE ISSUE OF ALIGNMENT IS CRUCIAL GIVEN THE IMPACT OF


RAPID ENVIRONMENTAL AND TECHNOLOGICAL AND BUSINESS CHANGE ON THE COMPETITIVENESS, EVEN THE SURVIVAL OF FIRMS.

Source: Aligning Strategic Planning with Project Management, Joan Knutson

STRATEGIC MANAGEMENT

HOLISTIC APPROACH AND INTEGRATED PROCESS

STRATEGIC MANAGEMENT

What is the appropriate management response to closing the

GAP?
What are the essential requirements for improving organizational performance and a consistently higher level of business success? Can we draw answers from the respective bodies of knowledge of the disciplines involved?

Thinking, Planning & Implementing

STRATEGIC MANAGEMENT

"Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat" Sun Tsu - Chinese Military Strategist

THE ANSWER TO CLOSING THE GAP BETWEEN THE THREE PRINCIPAL PROCESSES IS A HOLISTIC APPROACH WITH AN INTEGRATED SYSTEM

STRATEGIC MANAGEMENT LINKING THINKING, PLANNING AND IMPLEMENTING

STRATEGIC MANAGEMENT

Strategic management is the art and science of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its objectives. It is the process of specifying the organization's objectives, developing policies and plans to achieve these objectives, and allocating resources to implement the policies and plans to achieve the organization's objectives.
Source: http://wiki.answers.com/Q/What_are_strategic_management_processes

STRATEGIC MANAGEMENT

Strategic management combines the activities of the various functional areas of a business to achieve organizational objectives.

It is the highest level of managerial activity, usually formulated by the BOD and performed by the organization's CEO and executive team.

Strategic management provides overall direction to the enterprise.


Source: http://wiki.answers.com/Q/What_are_strategic_management_processes

STRATEGIC MANAGEMENT

An Integrated Management System is a single integrated system used by an organization to manage the totality of its processes, in order to meet the organization's objectives and equitably satisfy the stakeholders.

Source: CQI IMSIG IMS Definition and Structuring Guidance Issue 1 12 June 2007,

STRATEGIC MANAGEMENT

THE STRATEGIC MANAGEMENT PROCESS (SMP)

FOUR COMPONENTS OF THE SMP


Source: http://www.managementstudyguide.com/strategicmanagement-process.htm

STRATEGIC MANAGEMENT

STRATEGIC THINKING & PLANNING

MODEL OF THE STRATEGIC THINKING & PLANNING PROCESSES

STRATEGIC MANAGEMENT

6-Step Classic Vision-Based Strategic Planning Model

STRATEGIC MANAGEMENT

Waterfall Model Strategic Planning Process

STRATEGIC MANAGEMENT

THE PMI'S PMBOK 5-Step Project Management Process

THE GAP

all projects should support the organizations strategic goals. The strategic plan of the performing organization should be considered as a factor when making project selection decisions and prioritization.

Source: PMBOK Guide 4th Edition, 2008, PMI, Page 75

THE GAP

Projects, within programs or portfolios, are a means of achieving organizational goals and objectives, often in the context of a strategic plan. Although a group of projects within a program can have discrete benefits, they can also contribute

to the benefits of the program, to the objectives of the portfolio,


and to the strategic plan of the organization.
Source: PMBOK Guide 4th Edition, 2008, PMI, Page 10

STRATEGIC MANAGEMENT

STRATEGIC THINKING

CORPORATE STRATEGIES

IDENTIFIED

PROJECT
IDENTIFICATION

PROJECTS

DEFINING THE COMPANY OF THE FUTURE

TURNING IDEAS INTO REALITY

STRATEGIC PLANNING

PROJECT MANAGEMENT

CONNECTING STRATEGIC PLANNING AND PROJECT MANAGEMENT


Source: A Tide of Change in Processes of Enterprise Strategic Thinking: The Role of Project Management, Lucio Jose Diniz, LD & M Consultores Associados,

METHODOLOGY: KEY DRIVER OF SUCCESS

METHODOLOGY

DEFINITION
The American Merriam-Webster Dictionary gives as its first definition of methodology: a series of related methods or techniques.

The Oxford English Dictionary defines it only as: the study of methods.

The Business Dictionary defines more expansively as: A system of broad principles or rules from which specific methods or procedures may be derived to interpret or solve different problems within the scope of a particular discipline. Unlike an algorithm, a methodology is not a formula, but a set of practices.

METHODOLOGY

DESCRIPTION

Is a set of practices widely used across an industry or scientific


discipline; the techniques used in a particular research study, or the techniques used to accomplish a particular project.

Provides clearly outlined directions and procedures that tend to


increase consistency, and to create work which can be repeated elsewhere.

Used in scientific research is always described, so that others can


replicate the research themselves or identify errors in the methods used which may have created skewed results.

METHODOLOGY

STRATEGIC MANAGEMENT METHODOLOGY

The strategic management methodology is the method for embedding a strategic management competency in a particular organization. The objective is a transformation brought about through a transformation process. The three stages of the methodology are:
Diagnose aspirations - define the ""end"", the next step on the journey Stage experiences - to bring about the transformation Follow-through - to sustain the transformation

The strategic management methodology simultaneously develops an organization's strategic management process and its competency.

Source: http://createadvantage.com/glossary/strategic-management-methodology

METHODOLOGY STRATEGIC MANAGEMENT METHODOLOGY

Strategy Management connects goals, initiatives, and metrics, the three cornerstones necessary to help drive effective execution. Ninety percent of all organizations are unable to execute on their strategy.

Unlike these organizations, businesses with alignment will show a better performance, increased productivity, and greater employee, constituent, and customer satisfaction.
SAP Business Objects Strategy Management

METHODOLOGY

PROJECT MANAGEMENT METHODOLOGY


a strictly defined combination of logically related methods and step-by-step techniques. a scientifically-proven, systematic and disciplined approach to project development and implementation.
Supports control of the entire project management process. Describes every step in depth, so that a project manager will know what he or she will need to do.
Source: http://www.mymanagementguide.com/project-management-basics/project-methodology-definition

METHODOLOGY

METHODOLOGY

Source: http://www.bachelorcontrols.com/capabilities/methodology.asp

METHODOLOGY

The Project Life Cycle

Source: Chris Everett - Project Management Consultant, email: projects@spottydog.u.net.com

METHODOLOGY

THE NEED FOR PM METHODOLOGY


TO PROVIDE VISIBILITY AND ACCOUNTABILITY TO THE PROJECT

MANAGEMENT PROCESS
TO ENSURE THAT EVERY PROJECT IS MANAGED IN THE SAME MANNER TO DRIVE CONSISTENCY AND REGIMEN INTO THE PROCESS TO DRIVE QUALITY INTO THE MANAGEMENT FROM REPEATABILITY OF THE MANAGEMENT PROCESS

TO PLACE RELIANCE ON THE SYSTEM AND NOT SPECIFICALLY ON THE


ABILITIES OF THE PERSONNEL INVOLVED
Source: Achieving Strategic Objectives through Programme and Project Methodologies Kenn Dolan, Director, FPMS

METHODOLOGY

THE NEED FOR PM METHODOLOGY


Creating a workable methodology for project management is no easy task.
One of the biggest mistakes made is developing a different methodology for each type of project. Another is failing to integrate the project management methodology and project management tools into a single process if possible. When companies develop project management methodologies and tools in tandem, two benefits emerge. First, the work is accomplished with fewer scope changes. Second, the processes are designed to create minimal disturbance to ongoing business operations.
Source: Kerzener, Harold (2006). Project Management Best Practices-Achieving Global Excellence. New Jersey: John Wiley & Sons Inc. P. 135

METHODOLOGY
Dr. Harold Kerzner identifies the following characteristics of a world-class project management methodology:

Maximum of six life cycle phases Life cycle phases overlap

End-of-phase gate reviews (checkpoints)


Integration with other processes Continuous improvement Customer oriented Company-wide acceptance Use of templates (level 3 work breakdown structure (WBS)) Critical path scheduling (level 3 WBS) Simplistic, standard bar chart reporting Minimisation of paperwork

Format for a project charter


Kerzener, Harold, Project Management Best Practices-Achieving Global Excellence, John Wiley and Sons Inc., 2006, P.144

METHODOLOGY

STRATEGIC MANAGEMENT METHODOLOGIES

The Balanced Scorecard Hoshin Kanri Managing Successful Programmes (MSP) Strategic Management by Projects (SMBP) The Methodology Link Model Enterprise Project Management (EPM)

METHODOLOGY

WHAT ARE WE SEEKING TO DO? TO LINK STRATEGIC THINKING, STRATEGIC PLANNING AND

STRATEGY IMPLEMENTING

SELECTION

SELECTION

Developing

link

between

strategy,

planning

and

project

management is not an easy task. It requires the commitment from


upper management in terms of concept sponsorship, as well as the dedication and buy-in from project management and the various operational areas of the company.

Philip Diab, The Unbeatable Advantage-A Journey Through Strategy, Planning and Project Management, Proceedings of the 30th Annual Project Management Institute 1999 Seminars & Symposium, Philadelphia, Pennsylvania, USA October 10-16, 1999

SELECTION

The one size fits all approach is not appropriate in adopting a methodology. Methodologies are effective and appropriate only under certain conditions.

While it is easy to accept the fact that one methodology cannot fit all projects, it is quite difficult to move beyond this fact and find the right methodology.

SELECTION

A Methodology to Select the Most Appropriate Methodology Big and Small-M methodology to help differentiate according to characteristics such as staff size and project criticality. Big-M methodology = people, roles, skills, teams, tools, techniques, processes, activities, milestones, work products, standards, quality measures, and team values. Small-M methodologies = a few techniques and drawing notations for a few roles.

SELECTION

Methodology Size, Density And Weight

A methodologys size is its number of control elements, including deliverables, standards, activities, milestones, quality measures, and so on; Its density is the detail and consistency required in the elements (Greater density corresponds to tighter controls.) ; and Its weight is its size times its density (conceptually only, because numbers in this approach are not attached to size and density).

SELECTION

FOUR PRINCIPLES TO GUIDE SELECTION Principle 1 A larger group needs a larger methodology. Principle 2 A more critical project - one whose undetected defects will produce more damage needs more publicly visible correctness (greater density) in its development. Principle 3 A relatively small increase in methodology size or density adds a relatively large amount to the project cost. Principle 4 The most effective form of communication (for transmitting ideas) is interactive and face-to-face, as at a whiteboard.
Source: Selecting a Projects Methodology, Alistair Cockburn, Humans and Technology, IEEE SOFTWARE July/August 2000

SELECTION

PROJECT SIZE AND COMPLEXITY


Quantitative (Project Size) Duration: Elapsed time or amount of effort Resources: Full time Individuals or consultants involved Budget: Money allocated or estimated cost Qualitative (Project Complexity) Priority: importance of strategic outcome Risk: novelty of undertaking impact and visibility of risks Boundaries: interdepartmental engagements or # of partners and stakeholders engaged, Interdependencies: where one project may affect another, in time, output, outcomes, budget, program. etc.

SELECTION

PROJECT SIZE DETERMINATION

SIZE

DURATION

TEAM MEMBERS < 10 10 25 >25

BUDGET

Small Medium Large

< 6 months 6 18 months >18 months

< $ 2 million $ 2 - 20million > $ 20 million

SELECTION

PROJECT COMPLEXITY DETERMINATION


COMPLEXITY Low PRIORITY RISK Not directly linked Narrow scope or to high priority impact limited to goals or objectives small unit or department Supports New technology or organizations business rules goals and unfamiliar processes Strategically aligned with business goals or organization objectives Broad scope, organization-wide impact or results visible to the public BOUNDARIES Small team, limited numbers of partners or few stakeholders Multiple partners or organization wide initiative

Moderate

High

Multi-partner or inter-departmental initiative with private and public stakeholders

SELECTION

METHODOLOGY SELECTION MATRIX

LEVEL

SIZE

COMPLEXITY

METHODOLOGY WEIGHT

A
B C

Small
Medium Large

Low
Moderate High

Light
Light - Moderate Heavy

OTHER DRIVERS OF SUCCESS

OTHER DRIVERS OF SUCCESS

OTHER DRIVERS OF SUCCESS PROJECTIZING THE STRATEGIC MANAGEMENT PROCESS

CONCLUSIONS

CONCLUSIONS

1. Strategic planning efforts - time consuming, expensive, often ineffective in the real world; 2. World-wide, many very sizeable and expensive projects are still going very wrong; 3. There is a gap and resulting misalignment between strategic thinking, planning and implementing processes; 4. Closing the gap is essential for organizations to attain and sustain competitive advantage.

5. Strategic Management - a holistic approach and integrated system providing the execution-oriented
paradigm needed to close the gap; 6. Modern organizations requires a systemic approach to strategic management that employs appropriate methodology; 7. Multiple methodologies are appropriate and necessary. An organizations size, strength and culture determine selection. 8. The size and complexity of individual projects also determine the selection of the right methodology; and 9. Other drivers of success in addition to methodology need to be considered in closing the gap and establishing the links between thinking, planning and doing.

THANK YOU FOR LISTENING!

QUESTIONS ?