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Project Management

Chapter 3: How do you define a Project?

Part of a series considering different aspects of Business Change

Understanding and Supporting Business Change – by Martin Schyns/ FILE: Project Management_Chap_3_FINAL.pptx

IntroductionWho am I?My headline would be…..Global Engineer Understands Transition Success Approach

Key take away is that I have been doing projects my whole career. I am an engineer at heart with a diverse background and I recognize that all organizations, and individuals for that matter, must continually seek to proactively change and adapt. As I am sure most organization can attest, Change is hard. I thought I would try using this medium to collect various themes and ideas on the subject of Business Change and share my insights.

Understanding and Support Business ChangeNaturally enough, Project Management is my first theme. It is a rich and complex endeavor and it is certainly an area where I think

most organizations would acknowledge they could do better. Typically the challenge is that if you ask five people within an organization, what needs to change, you get five different responses.

The Initial Path for this Enquiry1. Chapter 1 – 10: Project Management – 10 questions to explore some involved situations

2. Chapter 11 > : Sustaining Business Health – physiology of a modern business

3. Chapter X > : Insights on making relevant Change happen – road map to the future

4. Chapter Y : CONCLUSIONS – reflection on the relevance / value of what we have uncovered

ApproachI thought it would be interesting to use the Socratic method to explore what can often be some what dry material;

and, because it helps me understand, a series of supporting diagrams that, I hope, encapsulate and convey the key ideas and their context.

I would welcome any comments and alternative views to help challenge my desire to grow and make a difference.

Thank you, Martin Schyns.2

Ten common Project Management situations that are not easily understood…why?

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SITUATION KEY QUESTION

1. Reflection Was the Project a Success?

2. Prioritization How to make Project Portfolio Management (PPM) relevant?

3. Right Approach? How do you define a project?

4. Realism Level of confidence in the Project?

5. Sponsorship What does Project Sponsorship mean?

6. Planned results How will the Project impact Business Performance?

7. Justification What is the business case for the Project?

8. What or How? Is the business strategy working?

9. Audit Why am I not seeing results?

10. Soft value What are the lessons to take forward?

Do these questions echo you own experiences? How well do you really understand the challenges of Project Management?

Chap. 3:

Chapter 3: How do you define a Project?REF. Introduction

• So what is a Project? … ‘an individual or collaborative enterprise that is carefully planned and designed to achieve a particular aim’

• If I asked you about your project. What would you say?..... ‘it’s a CRM project, it’s a finance project, it’s a transformation project, it’s an IT project’

• Is defining the WHAT of a project very helpful? ….. For sure if you are involved in its planning and execution. But does that help me understand WHY this project, at this point in time?

• Do we get lost in Project delivery and forget about Project rationale? My take is that organizations move quickly through the process of formulating a solution.. ‘We need an ERP Project’, ‘we need SAP’, ‘we need a new IT system’, ‘we need better business process performance’ etc.

• Do we really understand why a project is going to be successful? This was typically the domain of the business case….. but for whatever reason the confidence in business cases has ebbed. Understanding why would be valuable in better defining a Project!

4Projects should not be solely focused on delivery; benefits are the real goal!

Lifecycle of Project DefinitionHow do you define a Project?

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THE ABOVE IS A SIMPLE LOGIC FRAME…… TO HELP UNDERSTAND THE SPAN OF ACTIVITES/ TIMELINE WHEN PROJECT DEFINITION CAN BE INFLUENCED

FIGURE 3A

#1. Identify and agree a need

ARE WE TYPICALLY PROACTIVE OR REACTIVE IN IDENTIFYING NEEDED CHANGE?

#4.Develop a business case and

seek endorsementsHOW CREDIBLE IS THE BUSINESS CASE?

#5. Project Approval / Rejection /

Qualification

DOES THIS PROCESS IMPOSE UNREASONABLE EXPECTATIONS ?

#6. Detailed Project Plan &

ExecutionIS THERE A MATERIAL DIFFERENCE FROM THE

INITAL WORKING ASSUMPTIONS ?

#7. Project Results / Impact

WHAT ARE THE ACTUAL RESULTS / IMPACTS? DO WE UNDERSTAND WHY?

Proj

ect D

efini

tion

/ Ch

ange

#2. Formulating the Project

ARE WE CLEAR / CONFIDENT ON THE SOLUTION LOGIC AND SUPPORTING ASSUMPTIONS?

#3. Context to other needs /

issues & ProjectsHOW WELL DO WE REALLY UNDERSTAND THE CONTEXT PICTURE?

Chapter 3: How do you define a Project?REF. Fig 2A – Understanding… typically where are we?

Key Questions …. and comments1. ARE WE TYPICALLY PROACTIVE OR REACTIVE IN IDENTIFYING NEEDED CHANGE? ……..reactive

stance typically has fewer alternatives / room for flexibility

2. ARE WE CLEAR / CONFIDENT ON THE SOLUTION LOGIC AND SUPPORTING ASSUMPTIONS? ……..logic /assumptions typically driven by project sponsor/s / owners view point

3. HOW WELL DO WE REALLY UNDERSTAND THE CONTEXT PICTURE? ……..complexity and sphere of control issues normally leave this question unanswered

4. HOW CREDIBLE IS THE BUSINESS CASE? ……..often framed/ undermined by #1 thru #3

5. DOES THIS PROCESS IMPOSE UNREASONABLE EXPECTATIONS ? ……..aggressive budget /timelines are often imposed to drive efficiency or reflect limited options

6. IS THERE A MATERIAL DIFFERENCE FROM THE INITAL WORKING ASSUMPTIONS ? ……..once approved project changes are limited or are interpreted negatively as a weakness in project management

7. WHAT ARE THE ACTUAL RESULTS / IMPACTS? DO WE UNDERSTAND WHY? ……..all too often there is “not enough time / resources” to objectively assess realized impact; which of course has the effect of sustaining the status quo described above.

6Key Questions and a Perspective on a typical Approach

ASSUMPTIONS1. Marketing & Sales will drive 90% adherence to forecast on a weekly basis

2. Forecast will include a 6 month rolling window defining ‘Normal’ & ‘Slow’ products – on a weekly basis – with accuracy of 80%

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IT SYSTEM/s 6.

ANATOMY OF A PROJECT/with example

7EXAMPLE of multifaceted Project Definition – for a Supply Chain Scenario

FIGURE 3B

LOGIC TO REALIZE GOAL:

DELTA XBetter align

inventory to orders > no inventory

increase + arrange for direct ship( less

popular items) – customer bears

delta shipping costs

Role3

Role0

Role2

Role1

4.

Sales Sourcing Distribution

Organization 1 Organization 2Organization 0 5.

Business Management

GOAL: DELTA X

25% reduction in customer order lead time + zero

cost increase

1.

Business Process/2

Business Process/1

2.

Data

Data

Data

3.

7.

Proj

ect I

nter

face

Proj

ect I

nter

face

Project Interface

CONTEXT OF A PROJECT ( SIMPLE)

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Conditions/ Changes to those conditions that may affect the logic / assumptions

FIGURE 3C

Business Management

GOAL DELTA X

LOGIC TO REALIZE

GOAL DELTA X

PROJECT SINBOUND CONDITIONS

OUTBOUND CONDITIONS

SUPPORTING CONDITIONS

PROJECT X

PROJECT Z

PROJECT Y

Lifecycle of Project DefinitionHow do you define a Project?....... Practical Changes

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THE ABOVE IS A LOGIC FRAME…… OF PRACTICAL CHANGES TO PROGRESSIVELY IMPROVE THE PROJECT DEFINITION PROCESS

FIGURE 3D

#1. Identify and agree a need

Adopt and maintain a single, multi year, road map >>> drives proactive behavior focused on the future and ensures alignment to strategy

#2. Formulating the Project

All Projects should explicitly define each of the EIGHT Project anatomical components ( FIG 2B) – with evolving formulation from a closed loop process ( steps #3, #4, #5, #6)

#3. Context to other needs /

issues & ProjectsDefine Input / Output and Supporting conditions and any planned / possible change/s (FIG 2C)

#4.Develop a business case and

seek endorsementsBuild a robust Business Case… based on ranges ( worse > median > best)

#7. Project Results / Impact

Understand WHAT and WHY

LESSONS

#5. Project Approval / Rejection /

Qualification

More challenge & rejections.. Less arbitrary rule making

#6. Detailed Project Plan &

Execution

Do not start until the conditions are right

Proj

ect D

efini

tion

/ Ch

ange

Chapter 3: How do you define a Project?REF. Fig 2D- What Changes should we make…. and Why?

• Step #1 – Leverage and Maintain a road Map // ensures strategy is interpreted in a common way and provides a single, cross company rationalized, time-phased focus

• Step #2 – Project formulation via iterations // ensures full range of perspectives effectively brought to bear

• Step #3 – Fully understand Project context // project success more often than not is dictated by factors external to the project

• Step #4 – Business case with performance range // ensures the key factors driving the higher levels of project result performance are really understood

• Step #5 – Project Review drives more effective challenge // ensures the business impact/s are front and center in the deliberations

• Step #6 – Detailed Planning able to influence definition // may well uncover holes in the current rationale or credibility of the assumptions

• Step #7 – Understand What the project did and why// true lessons are the most powerful way to positively influence future Project definitions; based on the realities of your specific circumstance.

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Collection of practical changes to progressively drive improvements in Project Definition; leading to better Project results

Chapter 3: How do you define a Project? CONCLUSIONS

• Business Change and Innovation are critical capabilities to sustain business performance in these rapidly changing times

• Projects should be the best way businesses proactively manage business Change

• Formulating WHAT to do and WHEN should be based on clear business rationale and a broad set of realistic assumptions

• Evolving the processes and the culture to embrace the proposed practical changes will take time and persistence

• NOT adapting the Project Definition process continues to risk mediocre project result performance and an under served business imperative.

11Its not WHAT but WHY that really matters for Projects!

R E F E R E N C E SWas the Project A Success?

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ANATOMY OF A PROJECT ( SIMPLE)

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Components/Considerations in the definition of a PROJECT

FIGURE 3E

Business Management

GOAL DELTA X

LOGIC TO REALIZE

GOAL DELTA X

OUTBOUND CONDITIONSPROJECT SINBOUND

CONDITIONS

SUPPORTING CONDITIONS

OUTBOUND CONDITIONSPROJECT XINBOUND

CONDITIONS

SUPPORTING CONDITIONS

OUTBOUND CONDITIONSPROJECT YINBOUND

CONDITIONS

SUPPORTING CONDITIONS

OUTBOUND CONDITIONSPROJECT ZINBOUND

CONDITIONS

SUPPORTING CONDITIONS

ANATOMY OF A PROJECT ( SIMPLE)

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Components/Considerations in the definition of a PROGRAM

FIGURE 3F

Business Management

GOAL DELTA X

LOGIC TO REALIZE

GOAL DELTA X

PROGRAM W- PROJECT S- PROJECT X- PROJECT Y- PROJECT Z

INBOUND CONDITIONS

OUTBOUND CONDITIONS

SUPPORTING CONDITIONS

PROJECT X

PROJECT Z

PROJECT Y