Summary
In this paper using the needs of regional grocery chains, we state our case for turning the usual rollout of a project management system on its head. In the typical rollout organizations focus on process first, then enforcing that process on existing activity and finally they develop training to develop new project managers and other participants. The assumption is “Build it and results will come.” Unfortunately business results don’t always come, and the business is left with an administrative system that can’t justify itself. We propose a new deployment approach that starts with finding and developing the right people, focuses project reviews on business results, and then develops the supporting planning and execution processes. Finally with our focus on starting with people, we define the roles required to make this work.
Background
Large regional grocery chains face the potential for shrinking market share and declining profits. These challenges come from competitors at multiple levels including national big box chains, national drug store chains, and e-commerce direct to consumer providers. In the face of these challenges regional grocers must undertake complex integrated projects to ensure profits and grow market share. Projects affect supply chain, store design and construction, and growing e-commerce opportunities.
Organizations in search of a better way to execute complex initiatives turn to project management as part of the answer. The typical approach starts with establishing processes and project artifacts as the cornerstone of an auditable and repeatable process. Although we believe process is critical to success, we believe a new implementation hierarchy is required. A quick review of why project management offices fail shows the process focus and documentation audit are included in three of the top five reasons for failure. The other two are all about having the wrong people and poor stakeholder relationships1,2.
Our Approach
We base our delivery system implementation on a revised set of priorities that we describe as our value structure in prioritizing actions.
The thing we value most and the place we recommend starting is with the people who deliver project results. Without the right people managed according to their skills and experience, it is impossible to produce satisfactory results. These people are made up of a management team not only trained in project management but also experienced with a track record of success. Within the management team their needs to be industry, company, project, and organization change experience. The organization change experience allows the project to go beyond technical success to actual value realization. Specific technical knowledge must be available either from management or available subject matter experts. Project success is dependent on more than management it requires quality people, developed and rewarded for success to produce specific project deliverables on time, as requested and on budget.
Second in our value hierarchy is the daily creation of value. We must understand if we are making required progress, at what cost, and with what impact on the overall business value proposition. Are our people being used correctly and are we managing them correctly? We need to manage our most experienced team members at a level that allows them to produce without excessive overhead, while at the same time we must manage those who require more at a level that ensures they produce as well. Part of this creation of value is stakeholder understanding and their recognition of the value created. The third element of value creation is dealing with change. Change is driven by the known (potential risks already identified) and the unanticipated, including either performance issues or requirements changes. The delivery system must be geared to react to these changes, communicate changes to schedule and budget, or develop recovery options to get back on the original plan. It is the combination of management of value delivery, stakeholder recognition of value, and ability to deal with change that ensures success if and only if we have the right people.
The third piece though important, only contributes to success if we have the right people selected and developed in a way that allows them to create value and we manage in a way that creates daily value. This third piece is our ability to plan and execute in a systematic and repeatable manner both at an enterprise level and at a project level. At the enterprise level we are addressing project priorities and selection based on a business case that projects costs and measureable value either measured in terms of improved efficiency or establishment of a capability required by operations or legal requirements. Priorities are not purely based on return but have to take into account operational and legal requirements. On the project side planning must cover the typical project management knowledge areas: Project Integration Management, Project Scope Management, Project Time Management, Project Cost Management, Project Quality Management, Project Human Resource Management, Project Communications Management, Project Risk Management, Project Procurement Management, and Project Stakeholders Management. This can never be one-size fits all exercise. The delivery system has to take into account the people both doing the work and the community of stakeholders, the overall value to be created and how it will be delivered, and the risks to project success as well as risk that project failure would create for the organization.
Roles (intended to be descriptive and not a full statement of duties)
Program Level
Executive Program Manager. Responsible for all assigned projects and staff. This is a leadership role responsible for ensuring the value priorities explained above are met and status is effectively communicated. In organizations with multiple million dollar plus projects, this is a full time role filled by a single individual
Program Analyst. This is a role filled by a junior project manager who is familiar with project reporting and data collection. The role is responsible for providing factual information based on project reporting to allow decision-making and action by the executive program manager, sponsors, and stakeholders. In organizations with multiple million dollar plus projects, this is a full time role filled by a single individual. In smaller programs the role may be part time or incorporated into the executive program manager
Project Level
Project Manager. Accountable for delivery of project value as described in the original business case or in subsequent changes. Responsible for execution in project management knowledge areas described above. Depending on the people, value delivery required, and risk this can be up to a full time position for the duration of the project. If an IT project manager is also assigned or for smaller projects one project manager may lead two or more projects. At the end of the project an employee would be assigned to other duties or projects a contractor would be released or assigned to other projects.
Organization Change Leader. In projects with large or complex stakeholder and end user communities it is essential that the project have a fully developed approach to building buy-in, developing required skills, and ensuring performance is executed and measured in a way that ensures required value creation. This role develops and executes the approach. For very large projects this may be a full time position. In other cases this may be a part time activity or incorporated into the project manager role.
Business Analyst. Provides requirements, process analysis, testing and other support services to the project manager. May be full or part time depending on the project. At the end of the project an employee would be assigned to other duties or projects a contractor would be released or assigned to other projects.
Trainer. Provides training to project manager, project teams, stakeholder, and end users. Responsible for delivery of standardized training and development, management and delivery of project specific training.
Project Communications. Plans, develops, and delivers project communications. For very large projects this may be a full time position. In other cases this may be a part time activity or incorporated into the project manager role.
Subject Matter Expert. Normally a part time employee resource that provides specific input to the project. Care must be taken that a select few SME’s are assigned to every project compromising their ability to execute other assigned tasks.
“Doer Internal.” These are the critical resources in most projects. They must be developed and managed in a manner that maximizes their ability to create value. If they are not assigned full time care must be taken to assure they have time to complete other assigned tasks.
“Doer Contract.” If these resources are augmenting the project team on an hourly basis they are similar to “internal doers” with the exception that they should arrive fully capable and should not require development.
Note: These roles are not intended to replace existing Information Technology PMO or project delivery staff, but rather to work in concert with the best mix to maximize project value creation.
1The Top Reasons Why PMOs Fail; Elyse, PMP, CPHIMS; www.Anticlue.net
2 Why PMOs Don’t Work, Australian Project Management Institute, www.aipm.com.au/documents/3G/07-Vic-Seminar-Sexton.pdf