© Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 1 Preparing the Mind for Dynamic...

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© Francis Hartman Holdings Limited and QeD Inc., 2006, 2007

Preparing the Mind forDynamic Management…

Growing beyond Traditional PM.

Francis Hartman PhD FICE FCAE FEAC PEng CEng

Professor and Chair

Schulich School of EngineeringUniversity of Calgary

Alberta, Canada

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Overview

• The Problem• Background• Trust Color Model• How we think• Linking Trust with the business

environment• Preparing for a better future…

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Preview

• We are always learning… and it can be humbling…

• Some things we do not WANT to learn• Question: are we developing our PMs

correctly?• Easy Answer: YES• Challenging Answer: NO

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Instant Participation…

• Who is to blame?• What WILL go wrong?• How do we fix these?• Confidence?• And one more question…

CEA Board – 14Conf Board – 127Prov. Govt - 27PMI – 82UoC – 155GMIS - 77TOTAL – 492…

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The Problem… Inadequate $ & T & Optimistic Performance Scarce or Wrong Resources. Insufficient design development. Poor Risk Management. Rework. Communication breakdown. Scope Changes out of Control. Priorities shift over time. Wrong Contracting Strategy. Problems acknowledged too late.

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Revisiting The Problem

$ & T & Optimism Scarce/Wrong Resources F E Loading Risk Management Rework Comm. breakdown Scope Control Priorities shift Contract Strategy Problems ID’d late.

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… and a Solution?


Fluff up or Lie and Hope What can we do? Time/money constrained We do it! Add QC and QA Find out too late Add more controls Priorities shift Change Contract Strategy Lead Indicators

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… and another Solution?


Manage to the INTENT Enable and Engage INTENT Intuitive Skills and INTENT Risk Planning Clear INTENT Engagement Map Trust based Business Model Priorities Management Engage! Shared INTENT

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The INTENT

UnitProduction

Cost

UnitProduct

SalePrice

Δ

CAP

UnitProduction

Cost

UnitProduct

SalePrice

Δ

CAP CAPEXCAPEX

MarketPrice

MarketPrice

OPEXOPEX

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How we think

BusinessDevelopment

BoardDecision

NPVOr?

Operations

Business

Case

Project

TPC

Project

TPC

Isolation fromBusiness Case

(PM Legacy fromDefense andConstruction)

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Rationale for Dynamic Management…

Business idea Exploration

Completion Construction/Implementation

Detail Design

Design Development

Concept development

Operation

The project development process

DG 1 DG 2 DG 3 DG 4DG 0

Feasibility

Strategy definition

Strategy execution

OPS…

DG

0

DG

1

DG

2

DG

3

DG

4

DG

?

DG

?

DG

?

DG

?

DG

?

DG

?

HIGH

TRUSTLOWTRUST

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T P

C

$1,000MustShouldNice

$1,350

?

Priority Triangle

$950$1,050

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DPS (Dynamic Path Scheduling)

A7

K10

H4

J10

F2

G7

C12

D4

E6

B36/ /8 1/ /17 10/ /15 10/ /12

0/ /903/ /6 3/ /10 3/ /12

2/ /30 3/ /6

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Mock-e Carlo Risk Assessment

P+10% L T O-10%Value (e.g.: Duration or Cost)

P100

P85

P50

P0

Pro

bab

ility

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Risk Attitudes

IBM

DUM

Change your mind?

Inconsistent Behavior?

What we don’t know we don’t know?

What we don’t want to know?

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Business today…

• Keep lights on today (operations)o Same old…o Continuous Improvement*o Competitive Advantage*o Responsiveness*

• Make sure lights are on tomorrow (strategy) o Corporate Strategy*o Marketing and Sales*o New Products and Services*o Innovation*o …and more*.*Most or all of these are PROJECTS.

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Breaking Through…

• DM not PM• From PMBOK™ to SMART PM®• From SMART (P)M® to Dynamic

Management…o Blue level: SMART Management Principleso Yellow level: Trust, Governance and Business

Contexto Red Level: intuitive Skills Development

(Judgment and Wisdom)o Master’s Certificates by UC Berkeley/QED.

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Colors of TrustColors of Trust

Intuitive Competence IntegritySubconscious Evidence based Experiential(Two Parts!) (Stable) (Volatile)L- and R-Thinking L- Thinking R-Thinking

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Trust Behavior

• Effective Communication• Contract Relationships• Finding Cost and time saving ideas• Team Effectiveness• Honest forecasts• Trust in Leadership• Effective Project Managers

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Context

• We KNOW a lot of stuff• People who DO stuff are often OPTIMISTS. • Lawyers, accountants, auditors and others are required to be

PESSIMISTS• Business, Programs and Projects continue to get harder (“MORE”

stakeholders?)• Communication<>Trust<>Performance<>Relationships

Traditional Post Modern DynamicTraditional PM New PM DMRunner Repeater RenegadeControl Learning PredictingCompetence Integrity IntuitionProven Theory Evolving Theory New Concepts Replication Innovation CreativityStages 1-3 Stages 4-5/6 Stages 6-9

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Doing Better…

• Continuous Improvement• Job Satisfaction• License to improve (BIG!)• Increase Confidence in PM

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Trust and Other Matters

Competence

IntegrityIntuition

Project Management

OperationsDynamic Management*

*With thanks to Per Willy Hetland – Statoil and

Manage Administer Do

Direction

ActionMis-

trust

Trust

Strategy

Lead

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More Trust Applications in the Workplace

• Reporting• Teams: Esprit, Support, Communication• Expectations Management• Managing Change• Supply Chain• Audit requirements• Record keeping• Damage Control, PR, • Learning, stories, leadership, expertise

(e.g., doctors) … and much more …

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Leadership, Ambiguity and Paradox

• Real and Apparent Control• Real and Apparent Accountability (SOX

effect)• Saying NO! and other leadership Skills• Recognizing opportunities• Trusting your Intuition (or Wisdom?)

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Changing the PM Curriculum?

Basic PM Tools

PM Processes

PM Competence

ExecutiveIntuition

IntuitiveSkills

Integrity

Competence

UC Berkeley/QED Certificates in

Dynamic Management

UoCPM

Specialization

Project

Controls

Project

LEADERSHIP

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Conclusions

• Important to Industry• Supported by Research Funding Agencies:

o NSERCo SSHRCo Organization for Project Advancement and

Leadership (OPAL)o Canadian Project Forum (CPF)

• Expect to change some basic ideas on how to be successful in the future . . .

• DM and ongoing work with UC Berkeley…

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© Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 1 Preparing the Mind for Dynamic...

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