IPPM - The Integrated Process and Project Management Organization

IPPM Organization®

Integrated Process and Project Management Organization

Stefan Hagen, © startup euregio Management GmbH

© startup euregio Management GmbH, 2001-2008 2

Major challenges of

today‘s business environment

Complexity and

discontinuity

complexity is rising – time for action is declining

radical technological innovations, innovation pressure

changes and trends are hardly predictable

cross-functional collaboration and communication is more and more

important

high risk projects, increasing uncertainty

etc.

Rising importance

of „soft facts“

War for Talents, Human Resource Management as a major challenge

inter-cultural management

long-term business relationships are based on trust and personal

networks

etc.

Globalization &

Competition

„Only the fittest will survive.“ → strategic AND operational excellence is

needed, high performance organizations

intensity of competition is increasing – price pressure, innovation

pressure, quality pressure, time pressure...

effectiveness AND efficiency

company‘s culture, strategy, processes, and structures have to be

aligned to the radical change

etc.

That‘s how most

organizations work today...


... and thats how they should work!


We need fast, innovative

and adaptive organizations!


The Roots of Modern

Organizational Theories


Taylorism („Fordism“)

And today? Taylorism still dominates!


Conclusion


The use of good theory...


„It is beyond a doubt that all our knowledge that begins

with experience.”

„Experience without theory is blind, but theory without

experience is mere intellectual play.“Immanuel Kant, German Philosopher, 1724-1804

„Everything should be made as simple as possible, but

not simpler.”Albert Einstein, Physicist, 1879-1955

„Even for practical purposes theory generally turns out

the most important thing in the end.”Oliver Wendell Holmes, Writer, 1809-1894

The heart of IPPM


Some Core Values of the IPPM


Smaller, flexible

and adaptive units

Professional

Service Firms (PSF)*

* als

o s

ee

To

m P

ete

rs (

2003)

Re

-Im

agin

e.

Busin

ess E

xcelle

nce in

a D

isru

ptive A

geVertical AND

horizontal view

Self-organization,

entrepreneurship

Keep things simple

in a complex world

To lead means

to serve!

Real customer

orientation

WOW Projects*

Accept nothing but

excellence and quality

Improvise!

ACT!

Stagnation means

Regression →

Question everything!

Helicopter Perspective


Cu

sto

mer

SU

CC

ES

S

Business Process A

Business Process B

Business Process C

Program XY

Cu

sto

mer

Req

uir

em

en

ts

Project A

Project B

Project C

Project D

The IPPM Organization®


PR

OC

ES

S

MA

NA

GE

RS

FUNCTIONAL MANAGERS

Support

Process A

Support

Process B

Support

Process C

Support

Process D

PR

OG

RA

M &

PR

OJ

EC

T

MA

NA

GE

RS

VALUE DRIVER LEVEL

The Integrated Process and Project

Management Organization® ...

• ... in an integrated management

model to effectively and

effeciently design, lead, and

continuesly renew organizations,

• ... is a new management

paradigm,

• ... is based on a systemic and

cybernetic understanding of

organization and management,

• ... is a stable framework for

developing high performance

organizations,

• ... is a field-tested organizational

approch based on proven

management concepts and

theories

• ... combines the vertical

(departments, line management,

functions) and horizontal

(processes, projects) view of an

organization,

• ... allows to balance out customer,

employee, and business

requirements continuously

• ... is based on the following

general principles: simplicity,

efficiency & productivity,

effectiveness & performance, top

quality, real customer orientation,

bias for action, speed, self-

organization & entrepreneurship,

continuous individual &

organizational learning


Organizational Units within IPPM


ORG. UNIT ROLE & RESPONSIBILITIES

General Management ensure competitiveness and long-term survivability

normative and strategic management

business development

strategic change management

strategic human resource management

Functional Managers maximize business value, profits

strategic development of the function (effectiveness) → human

resource management, knowledge management

operative leadership of the function (efficiency) → management by

objectives

resource management and alignment

Process Managers maximize customer value (internal, external)

strategic process design and development

operational process leadership and coordination

Program & Project

Managers

maximize customer value (internal, external)

leadership of project teams

ensure program / project sucess (on scope – on budget – on time)

cross-functional knowledge management

Value Driver Level


• Professional Tension Management

• Strategic and operational Management & Leadership

• Human Resource Management

• Knowledge Management

• Change Management, Management of Change

• Ensure Business Excellence

Value Creation Level


• Input: Customer Requirements

• Transformation: efficient and effective creation of values

• Output / Outcome: Customer Success!

Support Processes


• necessary for effective value creation

• outsource (if possible)! → concentrate on own core

competencies

• Examples:

– IT Support

– operative Marketing, Advertisement

– Facility Management

– Call Center Management

– Legal Issues

– ...

Professional Tension Management


It‘s not EITHER ... OR

It‘s BOTH ... AND


Between the poles -

Management of Tensions and Extremes

Maximize Customer Value Maximize Business Value

Exceed customer expectations Profitability, cost savingsvs.

vs.

vs.

vs.

Flexibility, Dynamics Stability, Repeatability

Projects, Team Work, Innovation Operations, Functions, Routine Processes

Cross-Functional Managers,

Generalists

Line Managers, Functional Managers

Specialists

Process Manager, Project Manager,

Program Manager

Engineers, Production Experts, Technicians...

Simplicity Complexity, Variety

KISS: „Keep it simple, stupid.“ „Only variety can destroy variety.“

vs.Horizontal View Vertical View

Processes, Projects, Programs Lines, Functions, Departments

Professional Tension Management


CONFLICTING GOALS, CONTRADICTION

Overcoming through

COOPERATION CONFLICT

Professional Tension Management in the

IPPM Organization®


• Professional Tension Management requires a corporate culture

which is dominated by openess, mutual trust, and the ability to deal

with conflicts and disagreements.

• Managers must demonstrate and also claim professional tention

management from „top down“.

• „Good“ decisions are rationally AND emotionally right.

• There is no right or wrong – no black or white any more. It‘s about

taking the right decisions for the moment, it‘s about taking chances

and proactively fighting risks. What was right yesterday can be

wrong tomorrow.

• Constructive criticism is required and asked for. Destructive

criticism is prohibited.

• Areas of tensions and disagreements: Human vs. Human, Issue

vs. Human, Human vs. Issue, within humans

IPPM Success Formula


Excellent People & Culture Excellent Strategy, Processes, and Structure

+

SUCCESS=

Coordination and Collaboration in the

IPPM Organization


• Core competencies and specialist know-how

are concentrated in vertical functions and

departments.

• Personal ressources are normally assigned to

the functional managers.

• Values are solely created in business processes,

programs, and projects.

• Process managers, program managers and

project managers coordinate and manage the

creation of values in cross-functional process

or project teams.

• Conflicting goals are solved through a

professional tention management (vertical vs.

horizontal goals).

The Goal: High Performance Organization


Inte

nsity: L

ea

de

rsh

ip/ C

ultu

re

Integration of Sub-Systems Inte

grie

rtes Q

ualit

äts

managem

ent:

Seghezziu.a

. (2

007)

High Performance

Organization =

BUSINESS

EXCELLENCE

Just do it! Start today!


„I've learned that mistakes can often be as good a teacher

as success.”Jack Welch, CEO of General Electric from 1981-2001

SGMK

St. Galler

Management

Konzept

IMS

Integrated

Management

Systems

OT / OB

Organizational

Theory (OT),

Organizational

Behaviour (OB)

Academic Foundation

of the IPPM Organization®


BPM

Business Process

Management

QM

Quality

Management

SM

Strategic

Management

IM

Innovation

Management

Info-M

Information

Management

NM

Normative,

Value-Based

Management

OM

Operative

Management

WFM

Workflow-

Management,

Logistics

PM

Project Management,

Program Management,

Project Portfolio

Management

Systems Approach, Management Cybernetics, VSM

Organizational Learning / Change Management

Sources


BLEICHER, Knut (1994): Normatives Management. Politik, Verfassung und Philosophie des Unternehmens. St. Galler

Management-Konzept Band 5. Campus Verlag. Frankfurt/New York.

HAAS EDERSHEIM, Elizabeth (2007): Peter F. Drucker - Alles über Management. Redline Wirtschaftsverlag.

Heidelberg.

HEIMBOLD, Roman (2005): Alles im grünen Bereich. Projektmanagement für jedermann (1. Aufl.). mitp-Verlag. Bonn.

MALIK, Fredmund (2005): Führen, Leisten, Leben. Wirksames Management für eine neue Zeit. Heyne-Verlag.

München.

MALIK, Fredmund (2003): Systemisches Management, Evolution, Selbstorganisation. Grundprobleme,

Funktionsmechanismen und Lösungsansätze für komplexe Systeme (4. Aufl.). Haupt Verlag.

Bern/Stuttgart/Wien.

MINTZBERG, Henry (1989): Mintzberg on Management: In our strange world of organizations. Free Press. New York.

PETERS, Tom (2007): Re-imagine. Spitzenleistungen in chaotischen Zeiten. Gabal Management Verlag. Offenbach.

PETERS, Tom/WATERMAN (1988), In Search of Excellence: Lessons from Americas Best Run Companies: Lessons

from America's Best-Run Companies. Time Warner International.

SCHWANINGER, Markus (1994): Managementsysteme. St. Galler Management-Konzept Band 4. Campus Verlag.

Frankfurt/New York.

SEGHEZZI, Hans Dieter (2007): Integriertes Qualitätsmanagement. Der St. Galler Ansatz (3. Aufl.). Carl Hanser

Verlag. München.

WUNDERER, Rolf (1997): Führung und Zusammenarbeit. Beiträge zu einer unternehmerischen Führungslehre (2.

Aufl.). Schäfer-Pöschel Verlag. Stuttgart.


Contact

startup euregio Management GmbH

Stefan Hagen

Rheinstrasse 26-27

6890 Lustenau

AUSTRIA

Phone: +43 (0)5577 87118

Web: www.startupeuregio.com

e-Mail: [email protected]

Free Project Management Know-How (in German):

www.PM-Handbuch.com

www.PM-Blog.com

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