Training for Project Management

Volume 3: Innovation, Value and Performance

Ian Stokes

• Publisher: Routledge
• Year: 2017
• eBook ISBN: 9781351965088
• Topic: Betriebswirtschaft
• Subtopic: Business allgemein

Most people accept the importance of project management as a means of realizing value, enabling change and distinguishing your organization from its competitors. But recognizing and doing are two entirely different things and project management remains something that is difficult to do right; every project brings something new and, whilst learning is about improving things we have done before, becoming good at project management is about getting better and better at doing the things that we are doing for the first time. This brand new collection of activities enables your project managers and team members to improve the performance of their projects by exploring topics such as benefit and value management, stakeholder relations, critical and innovative thinking and much more. The collection is a natural companion volume to Training for Project Management Volumes 1 and 2, by the same author, which seek to develop the basic human and technical skills associated with working in projects.

ACTIVITY 1

Benefits of Project Management

DESCRIPTION

Despite the importance of projects to business – the innovation of products, improvement of processes and the updating of systems – far more is invested in the management of repetitive and routine activities than in projects.

This is out of proportion. You can investigate and prove to what degree this is the case within your own organization by asking some pertinent questions.

Application

The project management process is complex and difficult. Processes are about repetition, continuous improvement and learning from experience. But because projects concern challenges that are unique and temporary, success in project management means getting better and better at doing things that have never been done before by your organization – or perhaps by any organization in the world. And whilst most projects last weeks or months, some may last years.

Furthermore, companies have underinvested in the process of project management compared to other processes that may be more evident. We are faced with a ‘triple whammy’ – important, difficult and underinvested. This activity gives three perspectives on the value of project management to the organization.

Aims

•  To underscore the importance of investment in project management.

•  To reassess the level of investment that might be more appropriate to project activities.

•  To be able to communicate the need for investment in project management.

Trainer guidance

There are three ways of assessing the value of project management to the business.

The first way is quantifiable and based on the idea that investment in project management should be proportionate to the importance of the projects as a proportion of overall company investment.

The second way focuses on using the project milestones to provide the company with opportunities to make investment decisions. The more opportunities there are for assessing options the easier it is to make the right decisions.

The third approach centres on quantitative, qualitative and improvement benefits or project management applied to a project. It is this kind of approach that might be used for a systems or process improvement investment.

Each approach requires some study and collection of data. This involves both quantitative and qualitative data as suggested by each analysis. If there are several groups, then different groups could do a different part of the analysis. If there are more than three groups, then the third analysis can be divided among two or three groups.

Method

1.  Distribute the questions (Handouts A1.1, A1.2 and A1.3) before the event.

2.  Allow the groups 20 to 30 minutes to process the data for each question.

3.  Ask each group to present their feedback.

Learning messages

An argument needs to be made for project management. Projects are important to organizations because they produce change and lead to innovation. However, projects have tended to be underinvested. This exercise is intended to reinforce the arguments for investment in project management systems, processes and services within the organization.

Timing

Total = 30 minutes to 1 hour:

•  20 to 45 minutes for the questionnaires and discussion.

•  10 to 15 minutes for the groups to present their feedback.

Materials

•  Handout A1.1: Proportionate investment analysis.

•  Handout A1.2: Project feedback analysis.

•  Handout A1.3: Quantitative and qualitative benefits analysis.

Proportionate Investment Analysis

The following questions concern proportionate investment, based on the simple assertion that the investment of resources in projects should be proportionate to the importance of projects for the organization.

What is the total budget for all the projects in the organization?

•  What is the total annual budget (or expenditure) for projects as a proportion of the total annual budget (or expenditure) for the organization? (b)

•  What is the total financial investment on systems and software for managing projects as a proportion of the total investment on systems and software? (f)

•  What is the total time spent by senior managers on projects as a proportion of total senior management time? (t)

If (f) financial investment and/or (t) time spent are less than (b) proportion of project budget (or expenditure) in the organization, this indicates that projects may be more important to the organization than the amount of investment in finance and effort.

Project Feedback Analysis

The benefits on projects are often inadequately assessed, or else they are assessed in terms that are speculative, hypothetical and too far into the future.

Ask the following questions for each project:

•  What is the dream outcome?

•  What is the expected outcome?

•  What is a reasonable outcome?

•  What is the worst outcome?

•  How soon can you get any payback on this project?

•  How soon can you get any feedback on this project?

The period for obtaining feedback and thereby reassessing the project should be between one-fifth and one-twelfth of the project’s duration. For example, if the project lasts a week there should be some indication every day about whether the project is going to generate the expected benefits. If the project lasts a year, the period for obtaining feedback might be more like a month.

Be wary: this feedback concerns whether or not the project is going to generate benefits for stakeholders, not whether it is going to fulfil requirements, fall within budget or finish on time.

Quantitative and Qualitative Benefits Analysis

Assess the benefits of project management in the following way:

•  What are the quantitative benefits?

–  Savings in cost and time.

–  Reduced rework.

•  What are the qualitative benefits?

–  Reduced number of defects.

–  Customer satisfaction.

–  High team morale.

–  Reputation for professionalism.

•  What are the process improvements?

–  Tasks that are saved minus tasks that are added.

–  Beneficial changes that would not have been possible.

ACTIVITY 2

Business Modelling

DESCRIPTION

A business model is a way of obtaining value through a combination of price, product, promotion and distribution. In that sense it resembles marketing. But a business model also contains many elements of strategy. It targets a pivotal position of power in the value chain that brings a product from source to outlet. It can be strong on customer focus, operational efficiency, competitive positioning, partnering or financial acumen.

Many business models are easier to recognize in action than to conceive in the first place. However, by studying existing business models and working backwards, or by asking probing questions that reveal flaws and openings, new insights can be crafted into breakthrough thinking. In this activity participants act as the sponsor of a project in order to introduce a change in the way in which their organization works its supply chain, product development, customer relations, production management, or some other key business process. They do this by asking questions that lead people to frame the business in a different way.

Application

This activity offers an opportunity for accompanying, coaching, mentoring and guiding people towards a more complete understanding of the business. It is appropriate when addressing the issue of sponsorship, programme management or portfolio management.

Aims

• To approach the project with the open-mindedness that invites new opportunities.

• To obtain inspiration for new business models from real-life examples.

• To ask the kind of questions that fuel breakthrough thinking.

Trainer guidance

You can opt for an off-the-cuff session, in which case 1 hour would be ample to get the participants warmed up and develop interest. Alternatively, you could opt for a preprepared and researched session, with input from competitive analysis, benchmarking data and adequate Internet research. This might extend the session to half a day. However, it is best not to stretch the session out for too long because energy levels will d...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Table of Contents
• Preface
• Introduction
• Activity 1 Benefits of project management
• Activity 2 Business modelling
• Activity 3 Creative concepts
• Activity 4 Critical thinking
• Activity 5 Customer understanding
• Activity 6 Dynamic versus static project guidelines
• Activity 7 Energizers
• Activity 8 Estimating guidelines
• Activity 9 Estimating quiz
• Activity 10 Four types of innovation
• Activity 11 Functional design
• Activity 12 Life-cycle profiles
• Activity 13 One-page project
• Activity 14 Planning by deliverables
• Activity 15 Process maturity
• Activity 16 Product improvements
• Activity 17 Project breakdowns
• Activity 18 Project health check
• Activity 19 Quality controversies
• Activity 21 Roles matrix
• Activity 22 Self-learning
• Activity 23 Situation analysis
• Activity 24 Stakeholder analysis
• Activity 25 Storming phase
• Activity 26 Team brain-teasers
• Activity 27 Technology roadmap
• Activity 28 Testing and prototyping
• Activity 29 Time lords
• Activity 30 Transversality index
• Activity 31 Usability
• Activity 32 Use case
• Activity 33 Value analysis and metrics
• Recommended reading