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Schedule Adherence …a useful measure for project management

SECOND EDITION

By Walt Lipke

Oklahoma, USA
________________________________________________________________________

Abstract: Earned Value Management (EVM) is a very good method of project management. However, EVM by itself cannot provide information as to how the schedule is being accomplished. Project accomplishment not in accordance with the planned schedule frequently has adverse repercussions; cost increases and duration is elongated. Thus, managers have a need to more fully understand project performance. This paper utilizes the new practice of Earned Schedule to discuss a proposed measure for further enhancing the practice of EVM. The measure, Schedule Adherence, provides additional early warning information to project managers, thereby enabling improved decision making and enhancing the probability of project success.

Development of a plan for executing a project is a difficult undertaking. When the plan is being created, a work flow is envisioned along with constraints and resource availability. There is a considerable amount of effort invested in decomposing the constituents of the plan into manageable components and work packages. Detailed examination of the tasks themselves is made to prepare reasonable estimates for their cost and duration. Oftentimes, planning teams use historical project records, heuristics and statistical algorithms to determine best and worst case probable outcomes. Furthermore, to assure that the best possible plan is created, technical experts may be employed to make the estimates as accurate as possible.

Before assignments can be made to the team members of a project, the timing of their actions must be known along with their interdependencies. The intricate mechanism for consolidating all of this information and making it understandable to the project team, and senior management, as well, is the schedule. The schedule is an embodiment of our best understanding of how to accomplish the project …a truly important document. Possibly, the schedule is the single most important document pertaining to the project and it likely has more to do with success than any other aspect.

Well then ….if the planned schedule is so crucial to project success, it follows that project managers should do their utmost to ensure project execution conforms to it. Assuming the planned schedule is the most efficient path for executing the project, any deviation leads to inefficiency and very likely other problems ….such as constraint reduced production, idle time, skills mismatch and poor quality output, in turn, requiring rework. Thus, there is an extremely compelling case for following the planned schedule.

This paper presents a proposed method for measuring the conformance, or adherence, for the schedule execution of a project. Utilizing the method and measure, the project manager has a better understanding of how well the execution follows the sequence and precedence of the tasks in the baseline schedule. Having an indicator for “schedule adherence” provides additional early warning information for managers to act upon.

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Editor’s note:  Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English.

About the Author 

Walt-Lipkeflag-usaWalt Lipke 

Oklahoma, USA 

Walt Lipke retired in 2005 as deputy chief of the Software Division at Tinker Air Force Base in the United States. He has over 35 years of experience in the development, maintenance, and management of software for automated testing of avionics. During his tenure, the division achieved several software process improvement milestones, including the coveted SEI/IEEE award for Software Process Achievement. Mr. Lipke has published several articles and presented at conferences, internationally, on the benefits of software process improvement and the application of earned value management and statistical methods to software projects. He is the creator of the technique Earned Schedule, which extracts schedule information from earned value data. Mr. Lipke is a graduate of the USA DoD course for Program Managers. He is a professional engineer with a master’s degree in physics, and is a member of the physics honor society, Sigma Pi Sigma (SPS). Lipke achieved distinguished academic honors with the selection to Phi Kappa Phi (FKF). During 2007 Mr. Lipke received the PMI Metrics Specific Interest Group Scholar Award. Also in 2007, he received the PMI Eric Jenett Award for Project Management Excellence for his leadership role and contribution to project management resulting from his creation of the Earned Schedule method. Mr. Lipke was selected for the 2010 Who’s Who in the World.  He can be contacted at [email protected].

Welcome to the June Edition

David Pells,

Managing Editor 

Addison, Texas, USA
________________________________________________________________________

Welcome to the June 2013 edition of the PM World Journal (PMWJ), the 11th edition of this web-based publication serving the world of professional program and project management (P/PM).  This month’s edition contains 38 new articles, papers, reports and book reviews by 40 authors in 16 different countries, again reflecting the global nature of our readers and contributors.  An additional 40+ news articles about projects and project management around the world are included, with around 20 countries represented this month.

I want to begin this paper by addressing three editorial issues: new banner, message and image; monthly invitation to authors; and PM World Library status.

New banner, message and image

As our regular readers will have already noticed, we have changed the banner on our website, updating to much more dynamic images and colors.  We have also modified our message to emphasize “knowledge sharing” related to program and project management; we believe this more accurately reflects the mission of the PMWJ.  While the journal continues to support continuous learning, that will be the primary mission of the PM World Library.  These changes will do doubt effect our image in the PM profession, we hope for the better.  I want to thank Stacy Goff in Colorado, Ewa Bednarczyk and Dana Kowal in Poland for their help with these changes.

Invitation to authors

We regularly publish a “call for papers” for the PMWJ, but sometimes we forget.  This is a reminder that we are constantly seeking good articles, papers and information about program and project management.  If you are an experienced program or project manager, project management professional, or leader of a professional organization, please consider sending us a ‘Commentary’ article about some topic of personal interest.  If you are an academic leader, graduate student, researcher or professional with a paper resulting from serious research, consider submitting a ‘Featured Paper’ or ‘Student Paper’.  If you are a PM expert, consultant or executive with a solution to share, send us an ‘Advisory’ article for the next edition.  We publish a wide variety of articles and papers, case studies and reports, book reviews and news stories.

Gain some visibility for yourself or your organization; share your knowledge; publish an article in the PMWJ.  Contact [email protected].

PM World Library update

Many of you know that we have been working on a new PM World Library (PMWL) to provide a searchable archive of all works originally published in the PMWJ.  The new PMWL is now live in a Beta version at www.pmworldlibrary.net.  There is much work to do there but you can see the direction we are headed.  If you have any comments or suggestions, they would be welcomed at [email protected].

Now – In This Edition

The June edition begins with four Featured Papers by five authors in four countries.  Bob Prieto, Senior Vice President at Fluor Corporation in the USA, has authored another paper titled “Project Categorization and Assessment Utilizing Multivariate Statistical Techniques.”  Pavel Barseghyan, PhD in Armenia has provided another unique mathematical look at project management in his paper “Communications and Contacts in Massively Interconnected Systems – Part 2: Connectivity Functions and Differential Equation of Connectedness.”  Anca Onuta in Romania has authored “How does project management fit into structure of global organizations of former government companies”. Alfonso Bucero in Spain and Randall Englund in the USA have authored “How to develop your personal skills for project success.” These are all serious papers; we hope they are interesting and useful to readers.

Seven Series Articles are included this month. Prof Darren Dalcher in the UK has authored “Managing change: organizations, people and the search for perfection”, an introduction to this month’s Advances in Project Management series article by Gower author Donal Carroll.  Donal’s article is titled “Managing value in organizations.”

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About the Author 

david-pellsflag-usaDAVID PELLS

Managing Editor, PMWJ 

David L. Pells is Managing Editor of the PM World Journal, a global eJournal for program and project management, and Executive Director of the PM World Library. He is also the president and CEO of PM World, the virtual organization behind the journal and library.  David is an internationally recognized leader in the field of professional project management with more than 35 years of experience on a wide variety of programs and projects, including engineering, construction, defense, energy, transit, high technology, and nuclear security, and project sizes ranging from several thousand to ten billion dollars. He has been an active professional leader in the United States since the 1980s, serving on the board of directors of the Project Management Institute (PMI®) twice.  David was awarded PMI’s Person of the Year award in 1998 and Fellow Award in 1999. He is an Honorary Fellow of the Association for Project Management (APM) in the UK; Project Management Associates (PMA – India); and of the Russian Project Management Association SOVNET.  From June 2006 until March 2012, he was the managing editor of the globally acclaimed PM World Today eJournal.  David has published widely, has spoken at conferences and events worldwide, and can be contacted at [email protected].   For more information, visit www.pmworldjournal.net and www.pmworldlibrary.net.

IPMA Announces 2013 Project Excellence Jury Members

REPORTS 

Report from the IPMA Project Excellence Awards

By Ewa Bednarczyk 

Krakow, Poland
________________________________________________________________________

Rich experience in project management, different working backgrounds and cultural awareness, contribution to spreading the project excellence philosophy and experience in project evaluation. This is what characterizes this year’s IPMA Project Excellence Award Jury Panel. 

Additionally: 

– 3 Jury members are previous IPMA PE Award Finalists

– 2 Jury members were also IPMA VP Presidents responsible for the Awards

– 3 Jury members acted as an Award Assessor

– 2 Jury members acted as a Jury for the National PE Awards

– 3 Jury members received prestigious Otto’s Zieglmeier Award for contribution to the development of the IPMA PE Awards.

This year Project Excellence Awards Applicants will be in great hands:

  • Mrs. Mary McKinlay, UK
  • Mrs. Constanta Bodea, Romania
  • Mr. Frank Menter, Germany
  • Mr. Roberto Mori, Italy
  • Mr. Hans van Wieren, The Netherlands

The Awards Jury was convened for the 2013 PE Award edition by Reinhard Wagner, IPMA Vice President–Awards, Mary Koutintcheva–Award Management Board Chairman and Ewa Bednarczyk–IPMA Award Office Manager.

The mission of the IPMA Award Jury is to decide objectively, based on the information provided by the IPMA Award Team Lead Assessors (TLA) and Award assessor teams, which projects can be IPMA Finalists, Bronze, Silver Winners and Gold Winner for the current years. Mrs. Mary McKinlay explains: “the Jury members are unique in the Awards system as the only people who have an overview of all the entries. Team Lead assessor and Assessors only have visibility of the entry that they are examining. All the Jury members are familiar with the PE Model and how the Award works.” The IPMA Award Jury’s goal is to meet twice to make the right decision.

The first Jury meeting, which this year takes place on 15 June 2013, is a conference call during which the IPMA Award Chairman acts as a moderator of the IPMA Award Jury meetings. She will present the IPMA Award Applicants for the current year. The IPMA Award Jury then specifies key questions and additional information that must be checked during the Site visit.

Mrs. Mary McKinlay adds: “the first Jury meeting is a review of all the entries and the jurors have the TLA reports to guide them as well as access to the entries if they wish. In the early days of the IPMA Excellence Awards, the jury would decide if an entry should have a site visit or not but now it is assumed that all entries will have a site visit. The purpose of this meeting is to discuss the findings of the assessor team up to the first team virtual meeting, check that the entry is in the correct category and identify areas that may need further investigation or clarification on the site visit.”

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About the Author 

flag-polandEwa-BednarczykEWA BEDNARCZYK

Krakow, Poland

Ewa Bednarczyk currently works for the International Project Management Association (IPMA) where she has administered the IPMA International Project Excellence Award Office since 2007. She is responsible for the coordination of the projects’ assessment process, including organization of the assessors training, assessors’ team composition, preparation of the Jury and final reports. She is the first contact person for the current and potential applicants and those who are interested in the Project Excellence Model. Moreover she supports the establishment of national Project Excellence Awards among IPMA member associations around the world.  Ewa is also a partner in a company pm2pm sp. z o.o. which offers project management training in Poland. Pm2pm mainly trains candidates for the IPMA certification.

In year 2010-2012 Ewa served as the IPMA-Pl Vice President responsible for the Polish Project Excellence Award. Ewa graduated from the Kraków University of Economics and Avans Hogeschool in Breda. She is an IPMA Level-D certificate holder. In her free time she regularly plays squash and treks. Her favorite destination is Nepal.  Ewa is also an occasional International Correspondent for PM World in Kraków, Poland.  She can be contacted at: [email protected].

Consideration of sustainable development principles in process management

STUDENT PAPER

By Mag. Ivonne Lange, PMP, PM (IPMA Level C), SPcM,

Doctoral candidate

T-Systems Austria GesmbH,

Vienna, Austria
________________________________________________________________________

Abstract 

Sustainable development (SD) is of relevance for project and process management. A process related definition of sustainable development is applied in this paper. Thus SD can be defined by using the following principles: economic, social and ecologic-orientation; short, mid, and long term-orientation; and local, regional and global-orientation. Furthermore, sustainable development is based on values. Process management considers the whole company by aligning all business processes with the corporate strategy. By treating process management as a holistic approach, sustainable development can be taken into account in all of the company. This paper discusses the analysis of different process management standards such as processRGC, Performance Excellence, BPM CBOK® and Six Sigma to see how sustainable development principles are applied in practice. As a result of this paper, selected methods of process management are further developed by considering sustainable development principles. Furthermore, their viability in practice is discussed.

1.    Introduction

In the Brundtland Report sustainable development is defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (World Commission on Environment Development 1987: 43). Increasing interest in the topic of sustainable development is observable in organizational management and strategy research (Cummings/Daellenbach 2009). Sustainable development is relevant for different social systems, such as society, region and organizations (Gareis et al. 2013).  Research has shown that only by integrating sustainability principles into the core processes, an organization can gain performance benefits (Wagner 2007).

The application of sustainable development is already being taken into account in individual processes, such as, for example, in the construction process (Bourdeau 1999; Hill/Bowen 1997; Khalfan 2006; Kompass Nachhaltigkeit 2012a; Wolpensinger 2006) or in the procurement process (CSR Europe 2012; EU-Kommission 2012; Kompass Nachhaltigkeit 2012b; Koplin 2006; Little 2002). Thus a contribution is being made to process management as a whole. However, one needs to distinguish between individual processes and process management as a holistic approach, which systematically aligns all business processes with the corporate strategy. This is relevant in so far as process management figures prominently in entrepreneurial decision making and in the increase of organizational efficiency in order to secure a company’s ability to compete.

The consideration of sustainable development in process management requires a holistic view. Because a basis for the professional completion of processes is created through process management (Gareis/Stummer 2008), contributions to the sustainable development in individual processes are realized through sustainable process management. Moreover, the consideration of process management takes qualitative aspects of business activities into account (Gaitanides et al. 1994; Käfer 2006; Schmelzer/Sesselmann 2010; Wittig 2002).

Recognized process management standards such as processRGC (Gareis/Stummer 2008), Performance Excellence (Wagner/Patzak 2007), BPM CBOK® (EABPM 2009) and Six Sigma (Gygi et al. 2006; Töpfer 2007; Toutenburg/Knöfel 2009) exist. These standards have been developed by practitioners and represent best practices across organizations within the field. These standards offer a generic process management approach, applicable to all industries.

This paper reports first results of a PhD research. It seeks to analyze how sustainable development principles are considered in process management applied in globally recognized process management standards and to discuss how the methods of process management can be further developed considering sustainable development principles.

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Editor’s note: This paper won the 2nd prize Student Paper Award at the happy projects ’13 conference in Vienna in April 2013; it is republished here with approval of the author and happy projects conference organizers, PROJECT MANAGEMENT GROUP at the Vienna University of Economics and Business Administration and ROLAND GAREIS CONSULTING.  Learn about the happy projects events at http://www.happyprojects.at/ 

About the author 

ivonne-langeflag-austriaIvonne Lange

Vienna, Austria

Since 2007 Ivonne Lange has been working as a project manager in projects of national as well as of international relevance. Furthermore, she has been engaged in process-related themes since 2008 and has been process manager for the project management process in her company since November 2012. She possesses a broad knowledge base in project and process management due to training in and application of these fields over the last four years. She holds a Magister’s degree in business administration from the Vienna University of Economics and Business, Austria. Currently she is writing her PhD thesis at the PROJECTMANAGEMENT GROUP and focuses on the consideration of sustainable development principles in process management.  Ivonne can be contacted at [email protected]

The Bet – A story about project management & project procurement

STORY

By Ian Heptinstall 

Dubai, UAE

________________________________________________________________________

A chance conversation opens an experienced project manager’s eyes to the opportunity to make significant improvements, not just in his job, but also for the company he works for.  After 30 years in the industry, he discovers that the way he was taught to manage major projects flies in the face of day-day common sense.

George works as a project director for a major construction company.  However today is Saturday and he is in the pub to watch the cup final on the big screen.  15 minutes before kick-off he was chatting with Chris and Andy, brothers whose parents live round the corner from him.  As the bar filled up and became standing-room only, he told them how glad he was that he was an experienced project manager, and how this meant that even though he had a busy morning, he was still there in time to get a prime seat and relax over his pint.

“You reckon?” asked Chris, with a quizzical, but mischievous look.  “I bet that if you had managed your morning like most people manage construction projects you wouldn’t have got here yet.

“You cheeky sod!” he replied, “I’ll have you know that I haven’t brought a project in late in the past 18 years.

Andy chipped in.  “What I think Chris meant to say is that you wouldn’t plan to be here until half-time.  I’m sure you would make your plan”

At that moment the bar staff turned the volume up as the teams walked onto the pitch.

“If you can convince me of that, then I’ll pick up your bar bills for a year” shouted George above the rising volume.

A thumbs-up from both Andy and Chris meant the bet was on.  Andy mouthed that they would continue the discussion after the game.  Their attentions transferred to more important matters.

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About the Author 

flag-uaeflag-ukian-heptinstallIan Heptinstall BEng, CEng, MCIPS 

Dubai, UAE

and

United Kingdom

Ian Heptinstall is an advisor consultant and trainer who helps organisations to get high performance and value from their supply base.  He is MD of PMMS Middle East, and Head of Learning & Development for the Chartered Institute of Purchasing & Supply in the MENA region.  He is based in Dubai and works with clients internationally.  Before joining PMMS, Ian was Director of Supply Chain at a large UK construction company, and in his early career he managed projects in the chemicals industry.  Ian has two blogs – one on general procurement matters at www.pmms.me and another on his innovative approach to improved projects at www.profitableprojects.org

Enterprise Project Governance: How to Manage Projects Successfully Across the Organization

SERIES ARTICLE 

Promoting Strategic Alignment 

By Paul Dinsmore & Luiz Rocha 

Rio de Janeiro, Brazil
________________________________________________________________________

Related-yet-unique worlds hold in balance the essence of business and organization success.  The first world, one of strategy and  direction, is populated by business strategists whose calling is to divine the future and develop a winning business strategy; the second, related to translating intentions into results is populated by project managers obsessed with getting things done.  Each looks at the world through very different lenses.  But in spite of these differences, both worlds must conspire to move companies towards their goals.  The functions differ, yet they are highly complementary.

Since gaps exist between the responsibilities and the mindsets of the key players in these differing worlds, challenges in communications are commonplace.  An effective strategy is not separate from an organization’s endeavors. To the contrary, it surrounds, permeates and guides them. Therefore, major alignment is called for, aimed at dealing with the fuzzy area between strategic planning and project implementation where roles and responsibilities are unclear and communications and relationships are equally opaque.

Once leadership is in place, the next step is to establish direction and create an agenda. Then come people alignment and the development of a human network for achieving the agenda. To get the agenda executed people need to be inspired and motivated to produce change that results in the outcomes associated with strategy. This is achieved by:

  • Communicating the strategy throughout the organization

Alignment of players in support of a common business strategy is a key factor to achieve success in all company settings. Alignment implies being lined up and heading in the same direction, so that the e organization converges towards the business strategy.  Thus management style and corporate culture come into play, expressly to align the hearts and minds of people behind the organization’s strategic intent.

  • Adopting portfolio selection and management of individual projects as well as program management practices

Whereas a business strategy lays out broad directions and determines what is to be accomplished, the portfolio of projects defines how the strategy is to be put into effect. Projects are the true traction point for strategic execution. It is the project that develops new businesses, markets, products, services, systems, skills, and alliances. A company’s project portfolio drives its future value.  Successful strategic execution requires tightly aligning the project port­folio to the corporate strategy. These projects then become part of the portfolio of projects, and the players involved marshal forces behind each project, which in turn contributes to the overall company goal.

The aggregate of an organization’s wide range of projects is its portfolio of projects.  Some of those projects may be freshly approved, others in the planning or implementation phases and yet others zeroing in on completion. Aside from the timing variances, they are likely to vary in nature, including strategic initiatives, capital expenditure, product launch and operational improvement.  The challenge for top management includes maintaining a company’s project portfolio aligned with the business strategy and with available resources, and at the same time insuring that projects are aligned with one another and with the organizational structure. Only by continuously reviewing the project portfolio, carefully allocating avail­able resources, and consciously realigning the organization can a company bring its proposed strategy to life.

An organization’s portfolio of projects is the offspring of the business strategy.  Based on those strategies, projects are developed aimed at generating the benefits envisioned by the strategists. The project portfolio lies at the crossroads where vision, leadership and strategy meet culture, people, processes, systems, performance and results. There is simply no effective way to execute strat­egy other than it be fully formalized or delegated within the organization. The portfolio is the true materialization of an organizations intent, direction and progress.

For that to happen, collaboration is required between business strategists and project strategists aiming at answering the following questions:

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This series includes articles by Paul Dinsmore and Luiz Rocha, authors of the book Enterprise Project Governance, published by AMACOM in the USA in 2012.  The articles are extracts and summaries of key topics from their book, providing information and guidance on one of the most important aspects of portfolio, program and project management today – governance.  For information about the book, go to http://www.amacombooks.org/book.cfm?isbn=9780814417461

About the Authors

usa-brazilpaul-dinsmorePaul C. Dinsmore

Paul Dinsmore is President of Dinsmore Associates, and a highly respected specialist in project management and organizational change. A certified project management professional (PMP), he has received the Distinguished Contribution Award and Fellow Award from the Project Management Institute (PMI®). He regularly consults and speaks in North America, South America, Europe and Africa.  Paul is the author and / or editor of numerous articles and 18 books, including the AMA Handbook of Project Management. Mr. Dinsmore resides in Rio de Janeiro, Brazil.

flag-brazilluiz-rochaLuiz Rocha

Luiz Rocha has 35+ years of experience in the industry and business consulting. Luiz worked with Andersen Consulting and Delloite in the USA and Europe when he had the opportunity to manage multi-cultural and geographically dispersed projects in Latin America, North America and Europe. In Brazil he worked with Dinsmore Associates and Petrobras. Luiz is an engineer by background, MSc. in industrial engineering from UFRJ – Brazil, PMP-PMI and IPMA certifications. He is also a published author with two previous books, Business Metamorphosis, in Brazil, and Mount Athos, a Journey of Self-Discovery, in the USA. Luiz can be contacted at [email protected].

Risk Doctor Briefing: Managing Risk Across Borders

SERIES ARTICLE

Dr David Hillson FIRM, HonFAPM, PMI Fellow 

UK
________________________________________________________________________

Many organisations conduct business internationally in our connected world, and we need to consider the particular risks that might arise from operating or trading across borders. We recently learned about the risk approach adopted by AECI (www.AECI.co.za) whose business involves transporting toxic chemicals and high-explosives across Africa. They have identified the following five risk categories for their business, together with sample generic risks in each category, to ensure that risk is understood and minimised as far as possible (*):

  • Economic and financial risks. This category includes: price fluctuations; maturity of banking systems; tax requirements; foreign exchange risk; interest rate risk; access to capital; data integrity in financial systems; infrastructure neglect; compliance with country-specific laws/regulations; unmanageable inflation; adequacy of in-country public liability coverage; additional in-country import tariffs and quotas.
  • Environmental risks. This group of risks covers natural or man-made disasters, including: irremediable pollution; persistent extreme weather conditions; vulnerability to geomagnetic storms; rising greenhouse gas emissions.
  • Geopolitical risks. These are risks relating to politics, diplomacy, conflict, crime and governance, including: entrenched organised crime; political instability; failure to resolve diplomatic conflicts; cultural disconnect; pervasive corruption/bribery/fraud; terrorism; piracy; trade embargos; political sanctions; lack of cross-border agreements.
  • Societal risks. Risks in this category relate to population dynamics, social stability and human survival, including: availability of skilled/experienced personnel; adequacy of electricity supply; chronic diseases; increased safety incidents; unmanaged migration; vulnerability to pandemics; water supply crises.

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About the Author

flag-ukdavid-hillsonDr. David Hillson 

Author 

Dr David Hillson CMgr FRSA FIRM FCMI HonFAPM PMI-Fellow is The Risk Doctor (www.risk-doctor.com).  As an international risk consultant, David is recognised as a leading thinker and expert practitioner in risk management. He consults, writes and speaks widely on the topic and he has made several innovative contributions to the field. David’s motto is “Understand profoundly so you can explain simply”, ensuring that his work represents both sound thinking and practical application.

David Hillson has over 25 years’ experience in risk consulting and he has worked in more than 40 countries, providing support to clients in every major industry sector, including construction, mining, telecommunications, pharmaceutical, financial services, transport, fast-moving consumer goods, energy, IT, defence and government. David’s input includes strategic direction to organisations facing major risk challenges, as well as tactical advice on achieving value and competitive advantage from effectively managing risk.

David’s contributions to the risk discipline over many years have been recognised by a range of awards, including “Risk Personality of the Year” in 2010-11. He received both the PMI Fellow award and the PMI Distinguished Contribution Award from the Project Management Institute (PMI®) for his work in developing risk management. He is also an Honorary Fellow of the UK Association for Project Management (APM), where he has actively led risk developments for nearly 20 years.  David Hillson is an active Fellow of the Institute of Risk Management (IRM), and he was elected a Fellow of the Royal Society of Arts (RSA) to contribute to its Risk Commission. He is also a Chartered Fellow of the Chartered Management Institute (CMI) and a Member of the Institute of Directors (IOD).

Dr Hillson can be contacted at [email protected].

IPMA Education & Training Board’s Series for the PMWJ: IPMA Expert Seminars

SERIES ARTICLE

By Hans Knoepfel

IPMA Education & Training Board Member 

Zurich, Switzerland
________________________________________________________________________

  1. 1.    History

The International Expert Seminars of IPMA originally started in 1970’s and were hosted at the Gottlieb Duttweiler Institute (GDI) near Zurich until the late 1980’s. Each Expert Seminar had a theme which was introduced by the Chairman and discussed by about 30-40 experts, predominantly IPMA (at that time called INTERNET) members.

The term “seminar” is related to sowing and to nursing plantations. The participants contribute to the topics by asking questions, presenting views and proposing conclusions. There is a robust interaction between research and practice.

  1. 2.    Relaunch in 2008-2012

In 2008, IPMA and Swiss Project Management Association (spm) decided to revive this kind of competence development event for project management experts. It was felt that no other comparable product of this quality was on offer on the marketplace.

A revised format of the IPMA Expert Seminars with a general forward looking title and investigations in four different Themes was introduced. The Themes provide clear directions for the presentations and discussions.

One Theme is provided and managed by the IPMA Young Crew. The results are brought to the plenum each day. Experts from various sectors of the economy and university institutes as well as different cultural backgrounds explain the issues and trends for each Theme. These are presented, discussed and recommendations  developed based on various case studies, research results and theories.

The IPMA Expert Seminars can be considered as a part of the knowledge management of the participants and their organisations and during the seminar knowledge transfer and enrichment takes place.

  • The keynote speeches explain the Themes and additional topics
  • The Papers contribute to the Topics by offering theories, views, practices and case studies
  • The statements in the discussions contain questions, evidence, logic and conclusions to the Topics
  1. 3.    Objectives and conditions

The IPMA Baselines provide frameworks for the Expert Seminars. The presentations and discussions can be related to them thereby giving an orientation and platform to compare with existing knowledge and experience.

The format precludes restricted thinking and the discussion of details in a rigid framework. It encourages participants to understand other views, to be aware of the context and to see new perspectives.

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Editor’s note: This is the 3rd in a series of articles provided by the IPMA Education and Training (E&T) Board on the subject of project management education, training, careers and related topics.  More information about the IPMA E&T can be found at http://ipma.ch/education. 


About the Author

flag-switzerlandhans-knoepfelDr. Hans Knoepfel

Zurich, Switzerland

Hans Knoepfel is an IPMA Fellow and Honorary President of the Swiss Project Management Association. He has been responsible for the Advanced Study Courses in continuing PM education at the University of Applied Sciences and Arts in Lucerne.  His teaching and research engagement include Universities in Europe, the United States and Asia.  He has published about 75 papers on project management in German, English and other languages. He has been an  active contributor  to the development and continuos updating of the IPMA Competence Baselines, the IPMA Certification Systems for Individuals and Organisations and the  IPMA Expert Seminars. Dr. Knoepfel can be contacted at [email protected]

A New Construction Contract for the 21st Century: Information Flow

SERIES ARTICLE

By Keith Pickavance 

London, UK
________________________________________________________________________

In the fifth article in this series we look at how the CIOB’s Complex Project Contract deals with communications and information flow. 

Historic perspective 

Apart from a telegram (the service for which started around the same time) the only generally available method of communication available in 1871, when the first standard form of building contract was published, was a postal service which required information to be written down on paper and directed to a physical delivery address.

By the late 1950s, telephone companies in certain parts of the world had begun to offer a telex communication system in which a typed input at one end of the line would be reproduced at the other end at the rate of about 70 words/minute. The next decade saw the advent of the fax machine, by which a scanned document consisting of both text and black and white images could be digitally reproduced at the other end of a telephone line.  By 1993 the beginning of the internet-based email system had become available.

Increased speed and sophistication of computers and digital communications over the last 20 years or so have now rendered it relatively easy to transfer anything that can be digitised (including moving pictures, in colour and with sound), virtually instantaneously to any part of the world, and to facilitate contribution by a number of contributors from anywhere in the world to data held in a remote repository, to which they all have access.

To the construction and civil engineering industries, this change from paper to digital-based communications probably took off in the 1980s with the invention of computer aided design and drawing software (“CADD”) capable of being run on a micro-computer.  3D modelling swiftly followed, now developed into Building Information Modelling in which, what were two- or three-dimensional symbols in a CADD system, also now contain quantities and cost data. We are thus far removed from the communications techniques available to our 19th century counterparts operating the first standard form of building contract.

Electronic communications 

Unlike the old-fashioned attitude to electronic communications taken by other standard forms (some of which anticipate that some form of electronic communication is possible, in some circumstances, but generally expect all drawing schedules and programmes and other documentation to be in hard copy), CPC2013 assumes that all correspondence will be by digital electronic communication.

Electronic communications under CPC2013 are required to be made either by File Transfer Protocol (which governs how electronic files are uploaded and downloaded), or through a Common Data Environment that permits users to access data held remotely on a server, or by  email (bearing a project related subject code to aid in its management).

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Editor’s note: This article is one in a series by Keith Pickavance about the CIOB’s new contract for complex construction projects. For information about the new contract, visit http://www.ciob.org.uk/CPC.  The full article includes footnotes for quotations and section references.

About the Author

keith-pickavanceflag-ukKeith Pickavance

Keith Pickavance first qualified as an architect in 1972 and then in 1978 obtained a law degree. After 20 years as an architect in private practice the last 10 years of which also involved construction management, dispute resolution and expert witness services, in 1993 he joined an American company specialising in forensic services and delay analysis. In 1996 he set up on his own again specialising in delay analysis and time management in London and Hong Kong. That practice was acquired by Hill International in 2006, an international construction management and claims consultancy with which he is now appointed an Executive Consultant.  He is a Past President of the Chartered Institute of Building and has led the CIOB’s time management initiative since its inception in 2007.  Keith is the author of Delay and Disruption in Construction Contracts (4th ed., 2010, Sweet and Maxwell) and numerous other books and articles on delay related issues.   Contact [email protected]

Dragons, Camels and Kangaroos – A Series on Cultural Intelligence for Programme and Project Management Managing Projects in China – what could possibly go wrong?

SERIES ARTICLE 

Article 4 in the series ‘Dragons, Camels and Kangaroos’

By Bill Young 

Melbourne, Australia and Beijing, China
________________________________________________________________________

This article is written to assist those planning to pursue joint venture projects or establish their own enterprises in China. It mainly relates to the resources / industrial / manufacturing sectors, highlighting common misunderstandings and practical ways of navigating to successful outcomes.

Blending two or more organisations within the same national culture, as occurs with company Mergers/Acquisitions (M/A) or Joint Ventures (JV) is challenging enough to ensure effective alignment and integration. But conducted across a transnational environment with substantially different cultures greatly increases the challenges. This article considers a Chinese and Western cultural context but similar principles apply to almost any project or business environment that brings two or more parties together from different cultural backgrounds.

China’s business operating environment differs in many ways to those in Western countries. Shaped by its distinct national culture, history, demographics, legal structures, economic transitioning, and the significant influence and authority wheeled by Government, are just a few of the many points of difference. They provide a complex, high risk business or project landscape to navigate. The multiplicity of issues that can result from such differences readily expose business ideas / ventures or projects, to problem entrapment. Their natural discord contributing to the many international joint venture failures in China.

The business allure 

Western businesses tend to see China as a cheap location to establish manufacturing facilities but a large number of them make the erroneous assumption that the basic or most important drivers for how business is done is similar to their own experience, and the only significant differences are in language and geographical location. The cost of doing business in China has been increasing rapidly over the past five years with dramatic increases in the price of materials and labour across the board. For example, process chemical plant design and build cost in China can be anywhere from 70 – 90% of that in Western countries. When things don’t go to plan though, as often happens, the costs in China can be far higher. Such unanticipated issues can decimate Project budgets at an alarming rate.

Establishing realistic expectations on both sides requires considerable business maturity and wisdom. It is all too easy to be optimistic. And the optimism applies universally not just to the Westerners entering China, but the Chinese receiving them, and also the Chinese doing business in other countries. 

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About the Author

flag-australiaflag-chinabill-young-bioBill Young

PhD, MBA, M.Eng, B.Eng, CPPD, FIEAust, FAIPM.

President of the Asia Pacific Federation of Project Management (www.apfpm.org) (2010 – current).

Past President (2007-11) Australian Institute of Project Management.

CEO (1985 – current) PMS Project Management Services P/L

Director (2005 – current) of Professional Solutions Australia Limited

Based in: Melbourne and Beijing: <[email protected] >. 

Bill has worked for 31 years in engineering, business, and project management responsible for a diverse range of chemical processing and mining developments. He has worked in Australia, Europe, Asia, North America, and Africa.

After completing a number of Projects in China since 2005, he moved to China with his family in 2009.  He is a consultant and entrepreneur, and a Professor (part time) for the School of Mechanical & Electronic Control Engineering, BeijingJiaotongUniversity.

Managing Change: Organisations, People and the Search for Perfection

SERIES ARTICLE

Advances in Project Management

By Prof Darren Dalcher

Director, National Centre for Project Management

University of Hertfordshire 

UK
________________________________________________________________________

Introduction to the June PMWJ Article by Donal Carroll 

Is change management a part of project management?

Change is increasingly recognised as a fact of life in business. Successive surveys and reports confirm that many CEOs consider change to be the greatest challenge facing their organisation. Moreover, in the last five years uncertainty and complexity have combined to make the business environment more ambiguous and unpredictable.

Organisations that do not change tend not to survive. However, the rate of successful change is low; frequently quoted figures suggest that between 70-80% of change initiatives become significant failures. A large proportion of the change literature has become increasingly frustrated at the tendency to create and implement change in a top-down fashion which tends to ignore the role of people in buying into, embracing and supporting change. Recent discourse has engaged the metaphor of change leaders, rather than managers, as the individuals responsible for guiding change endeavours, and transforming organisations attempt to guide others.

The essence of the discourse is that some of the essential mechanisms required to identify, embrace and deploy change successfully are not explicitly recognised within organisational theory. Making change stick is equally difficult. Addressing the implications of change therefore requires new ways of reasoning about the purpose of organisations, the value of initiatives, and the methods required for managing, and leading improvement efforts.

This month’s column attempts to address some of these issues. Donal Carroll’s contribution is extracted from his new book Managing Value in Organisations: New learning, Management and Business Models published by Gower. The book offers a new and fresh perspective on the delivery of change in organisations. Given the recognition that change is inevitable in provides new ways of engaging with and reasoning about change.

Organisations are traditionally judged according to their business model. However, Donal suggests that what is needed is a more sophisticated and dynamic approach to management. The starting point for any change involves learning, which kick starts any learning journey. His key thesis is that in order to manage value, organisations need to update not just their business model, but also their management model and their learning model. The combination of the models offers a richer perspective for engaging with the how alongside the what, whilst also considering the implications on learning and engaging.

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Editor’s note: The PMWJ Advances in Project Management series includes articles by authors of program and project management books published by Gower in the UK.  Each month an introduction to the current article is provided by series editor Prof Darren Dalcher, who is also the editor of the Gower Advances in Project Management series of books on new and emerging concepts in PM.  Prof Dalcher’s article is an introduction to the invited paper this month in the PMWJ by Gower author Donal Carroll.  Information about the Gower series can be found at http://www.gowerpublishing.com/advancesinprojectmanagement. 

About the Author 

flag-ukdarren-dalcherDarren Dalcher, PhD 

Author, Series Editor 

Director, National Centre for Project Management

University of Hertfordshire

UK

Darren Dalcher, Ph.D. HonFAPM, FRSA, FBCS, CITP, FCMI is Professor of Project Management at the University of Hertfordshire, and founder and Director of the National Centre for Project Management (NCPM) in the UK.  He has been named by the Association for Project Management (APM) as one of the top 10 “movers and shapers” in project management in 2008 and was voted Project Magazine’s “Academic of the Year” for his contribution in “integrating and weaving academic work with practice”. Following industrial and consultancy experience in managing IT projects, Professor Dalcher gained his PhD in Software Engineering from King’s College, University of London.  Professor Dalcher has written over 150 papers and book chapters on project management and software engineering. He is Editor-in-Chief of Software Process Improvement and Practice, an international journal focusing on capability, maturity, growth and improvement. He is the editor of the book series, Advances in Project Management, published by Gower Publishing of a new companion series Fundamentals of Project Management.  Heavily involved in a variety of research projects and subjects, Professor Dalcher has built a reputation as leader and innovator in the areas of practice-based education and reflection in project management. He works with many major industrial and commercial organisations and government bodies in the UK and beyond.  He is an Honorary Fellow of the APM, a Chartered Fellow of the British Computer Society, a Fellow of the Chartered Management Institute, and the Royal Society of Arts, and a Member of the Project Management Institute (PMI), the Academy of Management, the Institute for Electrical and Electronics Engineers, and the Association for Computing Machinery. He is a Chartered IT Practitioner. He is a Member of the PMI Advisory Board responsible for the prestigious David I. Cleland project management award and of the APM Professional Development Board.  Prof Dalcher is an academic editorial advisor for the PM World Journal.  He can be contacted at [email protected].

Managing Value in Organisations: New Learning, Management and Business Models – Why we need them

SERIES ARTICLE 

Advances in Project Management

By Donal Carroll 

London, UK
________________________________________________________________________

Outtakes: Participant organisation asides during the writing-journey of the book 

We can’t see the writing on the wall because our backs are up against it!

Developing an organisation is more than ‘more of the same’

Does ‘non-profit’ have to mean ‘non-risk?

Tradition is what we call something that doesn’t work any longer…’

Business and management, we’re told, should never stand still –but a recent (and not unusual) example shows that business and management thinking doesn’t, it actually goes backwards (based on thinking unchanged over the last 100 years). The example here is unusual only in the scale of its effects –many other organisations experience the same problems.

  • This spring, it was revealed that Hewlett Packard suffered a colossal $8.8bn write-down, having taken over the English–based company, Autonomy. Why? Surely they did a proper investigation prior to signing the deal? Yes, but it was dominated by traditional business and management thinking: Directors were ‘too tired from infighting’ -sectional-working rather than collective-working –something wrong with the management model. And what about due diligence? Well, ‘self-interested auditors facilitated HP’s reckless pursuit of Autonomy’ Why? Because they would gain from any deal and further short term shareholder value predominated – something wrong with the business model. And surely somebody would ask what are we thinking? They did – after the event – something wrong with the learning model.

Now you could take other business and management concepts and apply them to HP but I’m using these three models because they bring together how organisations create value (do business) organise their effort (manage), and mobilise thinking (learn) and depending on what these are, and how effectively integrated will depend on how successful they will be.

My recent book Managing Value in Organisations: New Learning, Management and Business Models starts with the premise that the ideas that got organisations this far are now barriers to their development. Think about not only HP but HMV, Jessops and Blockbuster and then say, Sony, Kodak, Nokia, and RIM. These organisations are already well covered. The book deals with 5 small, less known organisations: 3 established, one start–up and one sold on. To reach their next stage of development, all must ask if the thinking that got us this far get us further?

What is involved, how it applies to organisations, and a word of warning 

Here, I’ll identify the approach, what is involved, and how it can apply to contemporary business and management issues. But be warned! This is not a conventional business read. In seeking to address business problems anew, and recognising that much business writing seems like chloroform in print, it seeks to capture the excitement of management innovation, its ‘poetry and plumbing’ distilled from this journey. In business, as in many other areas, the first revolution is a new idea, and new ideas are natural predators of problems. Hopefully, readers will experience the work in words of the editor, as ‘cost-conscious poetry’.

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About the Author 

donal-carrollflag-ukDonal Carroll

 

London, UK

Donal Carroll was born in the Republic of Ireland, left school early, did a TV engineering apprenticeship and after graduating as a mature student, his first post was teaching modern poetry at Clare College, Cambridge. He worked for over 20 years as a teacher and manager in Further Education, forming Critical Difference Consultancy in 1998. He has worked with many organisations in all sectors including NEC, Lucas, Ranger Oil, Lufthansa, NHS and over 100 Learning and Skills Providers. He has also worked for 10 years for the Open University Business School on their MBA programme ‘Creativity, innovation and change’. He is a poet, and blogs and tweets on business, management and how we learn/don’t learn. In his work as a teacher, manager and consultant, he has remained committed to developing critical, creative, independent individuals, team and organisations. He is the author of Managing Value in Organisations: New Learning, Management and Business Models, published by Gower in 2012.  Donal Carroll works for Critical Difference. www.criticaldifference.co.uk

Email:  [email protected]; Blogs:  http://www.criticaldifference.co.uk/blog.php

Twitter: @donalcarroll1; Facebook: https://www.facebook.com/pages/Critical-Difference-Consultancy/143349879136178

Editor’s note: The Advances in Project Management series includes articles by authors of program and project management books published by Gower in the UK.  The articles are coordinated by series editor Prof Darren Dalcher, who is also the editor of the Gower Advances in Project Management series of books on new and emerging concepts in PM.  Prof Dalcher also provides an introduction to the current month’s article, which you can see elsewhere in this month’s edition.”  Information about the Gower series can be found at http://www.gowerpublishing.com/advancesinprojectmanagement.

Needs identification processes to establish program/project benefits targets

SECOND EDITION

By Alan Stretton, PhD

Sydney, Australia
________________________________________________________________________

ABSTRACT 

This paper is concerned with processes for establishing/confirming the needs of intended recipients of benefits deriving from programs/projects, in order to definitively establish the nature of the targeted benefits. This work does not currently receive as much attention in the program/project literature as its importance deserves.

Three different groups of recipients of benefits can be identified in the literature.

  • Program/project benefits linked to the organisation at large

In this case, organisational needs identification/confirmation is normally part of processes for establishing organisational strategic objectives. This is not generally regarded as an area for involvement by program/project management. However as I argued in last month’s PM World Today (Stretton 2011j) there are many circumstances where program/project managers should be involved.

  • Program/project benefits linked directly to stakeholders

Surprisingly few writers directly link benefits with specific stakeholders. Some contributions by Thiry to identifying needs of stakeholders in this context are summarised. Also, it is suggested that some of the approaches developed for customer needs determination (next bullet point) may also be useful for helping identify the needs of key stakeholders.

  • Program/project benefits directly linked with clients/customers

Customer needs determination was discussed in some detail in an earlier paper in this journal (Stretton 2009e).

INTRODUCTION 

The materials on program/project benefits realisation/management in the literature pay little attention to first ascertaining the needs of the recipients of benefits from programs/ projects before establishing relevant benefits targets. However, it seems self-evident that the nature of the targeted benefits cannot be confidently established until recipients’ needs have been properly determined. If this work is not done, how can the ultimate realisation of relevant program/project benefits be confirmed?

There is some recognition in the literature of the need to do this work, although little detail on how to go about it. For example, in the Project Management Institute’s Standard for Program Management (PMI 2006a), the first two stages (of five) in its Figure 2.3. Program Life Cycle and Benefits Management are Benefits Identification and Benefits Analysis. However, little indication is given on how to go about the needs identification work that is required before undertaking identification and analysis/ synthesis of the desired benefits.

These notes are concerned with processes for identifying/confirming the needs of intended recipients of program/project benefits. But first, we identify three different types of recipients of benefits as they appear in the literature.

  • Program/project benefits linked to the organisation at large
  • Program/project benefits linked directly to stakeholders
  • Program/project benefits directly linked with clients/customers 

We go on to look at needs identification processes for each recipient category 

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Editor’s note:  Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. This paper was originally published in the PM World Today eJournal in August 2011; it is republished here with the author’s permission.

About the Author

flag-ukalan-strettonAlan Stretton, PhD     

Faculty Corps, University of Management

and Technology, Arlington, VA (USA)

Life Fellow, AIPM (Australia) 

Alan Stretton is one of the pioneers of modern project management.  He is currently a member of the Faculty Corps for the University of Management & Technology (UMT), USA.  In 2006 he retired from a position as Adjunct Professor of Project Management in the Faculty of Design, Architecture and Building at the University of Technology, Sydney (UTS), Australia, which he joined in 1988 to develop and deliver a Master of Project Management program.   Prior to joining UTS, Mr. Stretton worked in the building and construction industries in Australia, New Zealand and the USA for some 38 years, which included the project management of construction, R&D, introduction of information and control systems, internal management education programs and organizational change projects.  He has degrees in Civil Engineering (BE, Tasmania) and Mathematics (MA, Oxford), and an honorary PhD in strategy, programme and project management (ESC, Lille, France).  Alan was Chairman of the Standards (PMBOK) Committee of the Project Management Institute (PMI®) from late 1989 to early 1992.  He held a similar position with the Australian Institute of Project Management (AIPM), and was elected a Life Fellow of AIPM in 1996.  He was a member of the Core Working Group in the development of the Australian National Competency Standards for Project Management.  He has published over 120 professional articles.  Alan can be contacted at [email protected].

Project Management Update from Argentina

REPORTS

By Cecilia Boggi, PMP

International Correspondent

Buenos Aires, Argentina
________________________________________________________________________

A new edition of PM SURVEY.ORG has been recently launched in Argentina as well as in other countries of the region.

PM SURVEY.ORG, http://www.pmsurvey.org/, is one of the major research initiatives in the world on the topic of project management. It has become a reference for professionals, students, universities and organizations that are looking for an overview of how project management practices are being used in organizations around the world and what results have been obtained through their use.

Founded in 2003 in Brazil, at PMI Rio de Janeiro Chapter by the volunteer Americo Pinto, every year the PM SURVEY.ORG has evolved in the number of participating countries and organizations and since 2011 it has been launched in Argentina with the collaboration of the local PMI Chapters.

As we commented in previous editorials, organizations in Argentina have showed an increased awareness in the benefits of formal Project Management practices, and this is reflected in the increasing implementations of Project Management Offices in the region.

An example of this awareness is the selection of the case of the Strategic Project Office of the Argentinian bank Banco Hipotecario S.A. to be included into the book “A Compendium of PMO Case Studies: Reflecting Project Business Management Concepts” published last year. According to Mr. Alberto G. Sirvent, Manager of that PMO, the authors of the book, Dennis L Bolles and Darrel G Hubbard, have stated that “this case study was selected because it was recognized as an enterprise that exhibits excellence and innovation in developing a maturing organizational structure to support effective business management of projects and whose executive management have recognized the business potential of a PMO at a senior management level.”

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About the Author 

flag-argentinaCecilia BoggiCECILIA BOGGI

International Correspondent 

Buenos Aires, Argentina 

Cecilia Boggi, PMP is founder and Executive Director of activePMO, giving consulting services and training in Project Management and Leadership skills in Argentina and Latin America.

After graduating with a degree in Computer Science Engineering from Universidad de Buenos Aires, Argentina, she has managed software development projects and PMO implementation projects for more than 20 years both in the government and private sector.  Cecilia also has graduated from an Executive Program in Business Management at Universidad del CEMA. She holds the Project Management Professional (PMP®) credential since 2003, is certified as SDI Facilitator from Personal Strengths© and is alumni of the PMI Leadership Institute Master Class 2012.  Ms. Boggi is Past President of the PMI Buenos Aires Argentina Chapter, and is a founding member of the PMI Nuevo Cuyo Chapter and PMI Santa Cruz Bolivia Chapter. She has been designated by PMI in the role of Mentor of Region 13, Latin America South, for the years 2014-2016.  Cecilia has participated in the development of PMBOK® Guide 5th Edition, leading the Chapter 9, Human Resource Management, content team and she is professor of Project Management in some Universities and Institutes in Argentina, Chile, Peru and Bolivia.

She can be contacted at [email protected]  and www.activepmo.com.ar

Project Management in Spain – monthly report

REPORTS

By Alfonso Bucero

International Correspondent & Editorial Advisor 

Madrid, Spain

________________________________________________________________________

The PMI Madrid Spain Chapter will celebrate its 10th Anniversary on June 25th 2013 in Madrid

The PMI Madrid Chapter was chartered ten years ago and, it was an important fact to all Spanish professionals involved in Project management over the years. When I joined PMI on March 1993, I attended my first PMI Congress in the US and, I dreamed about how to get the Project management profession recognized in Spain. Now my dream is being converted into a reality.

After ten years of association, the PMI Madrid Chapter has gone through different growth levels and dealt with several issues. It has been converted into the biggest Spanish PMI Chapter, counting on 1400 members approximately. The best news is not the Chapter membership growth but the frequent activities they deliver to their members; that keeps that professional association alive and encourages their members to participate more and more actively.

PMI Madrid Chapter started up leaded by Mr. Jose Antonio Puentes who initiated the Chapter with a group of Project management professionals like me, and he was contributing as a Chapter President since 2003 to 2008. Although the Chapter Board of Directors did some activities for their members in that period, because of several reasons this Chapter did not grow too much at the begining, however it is true that project management maturity level in Spain was so low those years. This Chapter organized on 2004 his first Spanish Project Management Event in Madrid where attended more than 200 project professionals. At the beginning of 2008 we counted on 225 members.

More…

To read entire report, click here for (English) or (Spanish)

About the Author 

flag-spainalfonso-bucero-bioAlfonso Bucero 

International Correspondent – Spain

Alfonso Bucero, MSc, PMP, PMI-RMP, PMI Fellow, is an International Correspondent and Contributing Editor for the PM World Journal in Madrid, Spain. Mr. Bucero is also founder and Managing Partner of BUCERO PM Consulting.  Alfonso was the founder, sponsor and president of the PMI Barcelona Chapter until April 2005, and belongs to PMI’s LIAG (Leadership Institute Advisory Group).  He was the past President of the PMI Madrid Spain Chapter, and now nominated as a PMI EMEA Region 8 Component Mentor. Alfonso has a Computer Science Engineering degree from Universidad Politécnica in Madrid and is studying for his Ph.D. in Project Management. He has 29 years of practical experience and is actively engaged in advancing the PM profession in Spain and throughout Europe. He received the PMI Distinguished Contribution Award on October 9th, 2010 and the PMI Fellow Award on October 22nd 2011.  Mr. Bucero can be contacted at [email protected].

UK Project Management Roundup

REPORT

By Miles Shepherd

Executive Advisor & International Correspondent 

Salisbury, England, UK
________________________________________________________________________

INTRODUCTION 

After the rather quiet time reported last month, May has proved to be pretty active; perhaps the hope of Spring has nurtured optimism and activity on the project scene.  Consequently, I have picked some of the optimistic forecasts as a focus this month.  We also take a look at the Government’s portfolio of projects and the latest major property development projects in the capital.

Hope Springs Eternal

While the headlines in many newspapers proclaim a continuing squeeze on the British economy, there are some signs of optimism buried on the business pages.  First comes a report from the Confederation of British Industry (CBI), perhaps the major leading business lobbying group.

According to the CBI’s quarterly Service Sector Survey, there has been an upturn in activity with consumer services showing a sharp turnaround in business volumes.  The news is not uniformly good as the business & professional service sector, which includes project management specialists as well as accountancy, legal and marketing firms, saw activity staying broadly flat over the quarter.  Even this is not seen negatively since optimism regarding the business situation rose at its fastest rate since February 2010, as expectations for the next quarter are somewhat brighter.  While overall profitability fell, confidence seems to be growing – and this is broadly in line with other surveys such as Arras People’s PM trends survey.  Other good indicators include the Bank of England’s upgraded its growth forecast and cut back its inflation forecast.

Perhaps this increase in confidence has prompted a couple of new major developments in London.  First, a contract has been signed that will see a new business park developed next to London City Airport.  Beijing based ABP (Advanced Business Park) is expected to invest £1 billion in a 2 million sq ft park to the north of the Royal Albert Dock, in the heart of the Royal Docks Enterprise zone.  The 18th century dock was at the heart of old London economy and is close to the major new developments around Canary Wharf.  Widely reported in the Press, the development promises to be one of the largest investments in UK by a Chinese company as well as one of the first Chinese direct investments in property in London.  There is extensive Chinese investment in property holding companies such as Songbird Estates which owns Canary Wharf.

More…

To read entire report (click here)

MILES-SHEPHERDflag-uk

About the Author

MILES SHEPHERD 

Salisbury, UK 

Miles Shepherd is an executive editorial advisor and international correspondent for PM World in the United Kingdom. He is also managing director for MS Projects Ltd, a consulting company supporting various UK Government agencies, nuclear industry organisations and other businesses.  Miles has over 30 years’ experience on a variety of projects in UK, Eastern Europe and Russia.  His PM experience includes defence, major IT projects, decommissioning of nuclear reactors, nuclear security, rail and business projects for the UK Government and EU.   Past Chair and Fellow of the Association for Project Management (APM), Miles is also past president and chair of the International Project Management Association (IPMA).  He is currently the Chair of the ISO committees that are developing new ISO 21500 Guidelines for Project Management and for Program/Portfolio Management.  He was involved in setting up APM’s team developing guidelines for project management oversight and governance.  Miles is based in Salisbury, England and can be contacted at [email protected].

How to develop your personal skills for project success

FEATURED PAPER

By Randall L. Englund, MBA, NPDC, CBM

Utah, USA

And

Alfonso Bucero, MSc, PMP, PMI-RMP, PMI Fellow

Madrid, Spain
________________________________________________________________________

Project managers are a very special breed of people, requiring a complete set of skills, especially those “soft” personal skills so necessary when dealing with people. The uncertain project environment forces project managers to adapt to circumstances and deal with them. We strongly believe the only things not flexible in life are stones. However, sometimes excessive project manager flexibility can damage him or her because other people may abuse that situation and create negative project results.

Project managers are in great demand, and we believe that will increasingly be the case as the need for effective technologists continues to soar. Good project managers are trained, not born. We believe the right project managers are people who want to be in that position. They develop a more complete set of skills through experience, practice, and education. They become better project managers each time they successfully deliver a project. They learn new techniques and apply them on their projects. They learn lessons—sometimes the hard way—to be better managers and leaders in the future, both when dealing with individuals and with teams. They become savvy networkers.

Dealing with Individuals

Project managers need to deal with people. Only in very few organizations can the project manager choose his/her team members. Usually available team members are assigned to the project, and probably not all of them are skilled enough (Englund, R. L., & Bucero, A. (2012); The complete project manager).  So project managers need to develop skills that include:

  • Networking:  The ability to assess the quality of working relationships, to identify where better relationships are required in order to complete the project, and develop a wider support network.
  • Building trust and rapport:  Developing a positive attitude in those who might be called upon for support.
  • Winning commitment to project goals:  This is not just a matter of having project goals; it is ensuring that everyone is sufficiently motivated to help the project manager deliver them.
  • Listening:  Listening is a vital skill at all times, especially to recognize emerging risks.
  • Counseling skills:  The project manager does not have to become a counselor, but these skills can be used to overcome personal emergencies.
  • Appropriate use of power:  Project managers’ relationships with power are often very complex. Power is necessary and needs to be used appropriately; otherwise, the goodwill and productivity of people vital to project success are lost.
  • Delegation:  This is a basic management skill and a vital one in a project environment. Some project managers, often those who come from a technical background, run into difficulties when not delegating sufficiently or appropriately.
  • Conflict management and negotiation:  Conflict can be a good thing. When it is managed well, project managers win respect and commitment and find better solutions to problems.

More…

To read entire paper (click here)

About the Authors 

flag-spainalfonso-buceroAlfonso Bucero 

Madrid, Spain 

Alfonso Bucero, MSc, PMP, PMI Fellow, is founder and Managing Partner of BUCERO PM Consulting.  Alfonso was the founder, sponsor and president of the PMI Barcelona Chapter until April 2005, and belongs to PMI’s LIAG (Leadership Institute Advisory Group).  He was the past President of the PMI Madrid Spain Chapter, and now nominated as a PMI EMEA Region 8 Component Mentor. Alfonso has a Computer Science Engineering degree from Universidad Politécnica in Madrid and is studying for his Ph.D. in Project Management. He has 29 years of practical experience and is actively engaged in advancing the PM profession in Spain and throughout Europe. He received the PMI Distinguished Contribution Award on October 9th, 2010 and the PMI Fellow Award on October 22nd 2011.  Alfonso is an International Correspondent and Contributing Editor for the PM World Journal in Madrid. Mr. Bucero can be contacted at [email protected].

flag-usarandall-eglundRandall Englund

California, USA 

Randy Englund is an executive consultant for the Englund Project Management Consultancy and is a Professional Associate for the Stanford Advanced Project Management (SAPM) program, specializing in converting strategy into action and effective project management offices.  Randy is co-author of Creating an Environment for Successful Projects (Jossey-Bass, 2004), Creating the Project Office (2003), and Project Sponsorship (2006).  He learned most of his lessons as a senior project manager at Hewlett-Packard and General Electric.  He now provides coaching to management and teams about their project management culture.  Contact him via email at [email protected] and on the web at www.englundpmc.com.

How does Project Management fit into the Structure of Global Organisations, former government owned companies?

FEATURED PAPER 

By Anca Onuta 

Bucharest, Romania
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Abstract

During the transition from public to private, the organisations not only changed their financial administration, but also the overall business approach. This paper aims to emphasise the topic of how Project Management fits into the structure of Global Organisations, former Government owned companies. It is based on literature reviews, analysis of several study cases and semi-structural interviews.  The interviewed project managers have been selected based on their extensive experience with international projects former Government Owned Organisations. They all have project management academic background and are international certified project managers. Coming from different industries and countries, the selected candidates have been working with multicultural teams across the group, in their home country and abroad.

The conclusions of the present paper provides a clear overview of the position of the project management in former times, highlighting the personal strengths used by the project managers to undertake the changes needed to remain relevant for the global corporation and to continually bring value.

Keywords: former government owned companies; adaptation; innovation; integration, project management

  1. 1.    Introduction

“A project is a temporary organisation of a project-oriented company for the performance of a relatively unique short – to medium-term strategically important business process of medium or large scope. Projects are used for the performance of relatively unique processes. The more unique are the objectives and deliverables to be fulfilled, the higher is the associated risk. Information from past experiences that can be used as reference often is available only to a limited extends.

Even from old times projects are used for the performance of business processes with short to medium duration. These projects should be performed as quickly as possible – in other words, in several months. Before the privatisation of the public company, the projects were also used for business processes of medium to large scope. The scope of a business process can be described by the tasks and resources required, the costs occurring, and the organisations involved. The operationalize of definition of project, the characteristics of business processes are used, that is, the strategic importance, duration, organisations involved, resources required, and cost occurring. The scaling of these characteristics is to be defined by each organisation. “(State of the art of global project management, 2-3, Global Project Management Handbook).

For performance of the individual project management sub processes, the corresponding project management methods are used. The importance of the methods does not get lost. Definition of the sub processes of the project management adds an integration level for ensuring the professional application of project management methods. Producing an optimal project schedule cannot be an objective in itself, but it must be an overall integrative objective to start the project in an optimal way.

Management of project objectives, management of the project schedule, management of the project cost planning, and so on cannot be accepted as project management processes because only an integrated consideration of all methods of project management can lead to optimal results. The management of project plans as “processes” cannot ensure a holistic management.” (State of the art of global project management, 2-8, Global Project Management Handbook).

In particular, this paper has as central research question “How does Project Management fit into the Structure of Global Organisations, former government owned companies?” and it aims to show the academic opinion, and the inside of practical experience.

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About the Author

romaniaanca onuta Anca Onuta 

Project manager

Bucharest, Romania 

Anca Onuta holds a Computer Science Bachelor degree from the Al. I  Cuza University from Iasi, Romania and recently graduated from the IT Project Management Master Program at the Academy of Economic Studies in Bucharest.  She is supporting the applied theory, therefore has started her career while still a student. Trying to adapt in Global world, after graduation she worked for more than a year in Mumbai, in the world’s biggest IT outsourcing company – Tata Consultancy Services India. Back home she joined Oracle as part of a virtual team spread around the world.  Presently she is working as a Project Manager at OMV Petrom, leading several national projects with multicultural teams.   Anca is passionate about a world without borders; in the spare time she likes getting to know other cultures, by backpacking and living with locals. She speaks fluent English, Spanish.   [email protected].

Communication and Contacts in Massively Interconnected Systems Part 2: Connectivity Functions and Differential Equation of Connectedness

FEATURED PAPER

By Pavel Barseghyan, PhD

Plano, Texas, USA and Yerevan, Armenia
________________________________________________________________________

Abstract 

Because of its empirical nature the Rent’s Rule is not able to capture the essence of connectivity in many cases of practical importance. To solve these problems of capturing the wide variety of cases of connectivity there is a need for more powerful spatial and temporal models of contacts and interaction between the elements of systems.

This paper discusses the methods of the theory of massively interconnected systems, developed in the 70s and 80s of the last century, as applied to one-dimensional systems of connectivity.

The concept of one-dimensional functions of connectivity is introduced and the differential equation with respect to these functions is derived.

This differential equation has wide practical applications in organizational science and electronics. Particularly the well-known Allen Curve is a specific solution of the differential equation of connectivity. The Rent’s Rule itself can be derived from one-dimensional differential equation of connectivity.

Introduction

Numerous practical application of the Rent’s Rule over the last 40-50 years have shown that its use is effective for estimating the parameters of microelectronic products, but at the same time it became clear that it has a limited scope and in many practical cases is not able adequately represent connectivity in complex systems [1, 2 ].

In particular the Rent’s Rule is not suitable for the description of connectivity in systems with mass contacts and communications, such as social networks, organizations, project teams, and others.

The main reason for this is that generally the Rent’s Rule in no way related to a particular coordinate system, while an arbitrary massively interconnected system has variable connectivity parameters and operates in real time and space.

The history of science shows that an adequate quantitative description of such systems, whose parameters vary in time and space, is usually reduced to the use of differential equations.

In this respect systems with mass communications and interactions between their elements are not particularly different from other systems with variable parameters and the natural mathematical means for their fundamental description are also differential equations with partial derivatives.

It is on the basis of such an approach the theory of massively interconnected systems is built and which in its general form is presented in [2, 3].

Some aspects of this theory related to the derivation and applications of differential equation of connectivity are presented in English in [4, 5, 6].

This paper is devoted to the presentation of a simplified one-dimensional version of this theory to illustrate its basic ideas and potentialities.

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About the Author 

flag-Armenia-USApavel-barseghyanPavel Barseghyan, PhD    

Dr. Pavel Barseghyan is a consultant in the field of quantitative project management, project data mining and organizational science. Has over 40 years experience in academia, the electronics industry, the EDA industry and Project Management Research and tools development. During the period of 1999-2010 he was the Vice President of Research for Numetrics Management Systems. Prior to joining Numetrics, Dr. Barseghyan worked as an R&D manager at Infinite Technology Corp. in Texas. He was also a founder and the president of an EDA start-up company, DAN Technologies, Ltd. that focused on high-level chip design planning and RTL structural floor planning technologies. Before joining ITC, Dr. Barseghyan was head of the Electronic Design and CAD department at the State Engineering University of Armenia, focusing on development of the Theory of Massively Interconnected Systems and its applications to electronic design. During the period of 1975-1990, he was also a member of the University Educational Policy Commission for Electronic Design and CAD Direction in the Higher Education Ministry of the former USSR. Earlier in his career he was a senior researcher in Yerevan Research and Development Institute of Mathematical Machines (Armenia). He is an author of nine monographs and textbooks and more than 100 scientific articles in the area of quantitative project management, mathematical theory of human work, electronic design and EDA methodologies, and tools development. More than 10 Ph.D. degrees have been awarded under his supervision. Dr. Barseghyan holds an MS in Electrical Engineering (1967) and Ph.D. (1972) and Doctor of Technical Sciences (1990) in Computer Engineering from Yerevan Polytechnic Institute (Armenia).  Pavel’s publications can be found here: http://www.scribd.com/pbarseghyan and here: http://pavelbarseghyan.wordpress.com/.  Pavel can be contacted at [email protected]

Project Categorization and Assessment Utilizing Multivariate Statistical Techniques to Facilitate Project Pattern Recognition, Categorization, Assessment and Pattern Migration Over Time

FEATURED PAPER

By Bob Prieto

Fluor

Princeton, New Jersey, USA

________________________________________________________________________

Disclosure: One or more of the concepts, techniques or methodologies described in this paper are protected by various patents and/or service marks pending. Owners and clients interested in discussing any of these concepts further should contact the author.

Large scale projects, especially capital construction projects, are notoriously difficult to manage.  Project managers, or other stakeholders, require techniques to quickly assess a current state of their project and to better anticipate likely performance trajectories.  Ideally, project managers would be able to quickly compare their project against historical projects or known best practices in order to benefit from the wealth of prior experience that exists.  Unfortunately, there are very few techniques currently available to project managers that allow them to recognize the project’s state as being similar to circumstances related to other projects.

The Opportunity 

This paper focuses on understanding, categorizing, assessing and monitoring a project based on consideration of a large number of project values in order to create a pattern definition analogous to a “picture” of the project. The concept described herein is the subject of a patent filing and as such enjoys all the protections of that process.

The picture created through consideration of a large number of project values is then compared with other similar pictures and like pictures are similarly grouped and categorized where each category has certain common descriptive features and by extension some reasonably anticipated project attributes. This project picture may be retaken over time (the project lifetime, potentially including its operating phase) and its strength of correlation with its initially assigned group measured (is it more or less similar to its original group).

Changed Characterization 

Over time it is possible for a project “picture” to suggest that the project should be otherwise categorized. This may result from one of two circumstances.

The first would be a significant enough change to the project “picture” over time such that it no longer ideally fits in the originally assigned group. Such reclassification would suggest that the project has different common descriptive features and attributes and suggests changed areas of management focus and attention and new project areas of interest. This migration of project type allows the project manager to understand the nature of change that the project is experiencing and to seek out insights from better fitting project archetypes.

The second instance which might drive project reclassification would be the result of changes in the composite library of all project pictures such that groupings or the definitions of their characteristics changed as sample size grew. Such changes in the composite library, ultimately, will allow for more precision in project characterization at early project stages including at the conception and initial project planning stages when various execution options may be under consideration.

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About the Author 

flag-usabob prietoBob Prieto 

Senior Vice President

Fluor

Bob Prieto is a senior vice president of Fluor, one of the largest, publicly traded engineering and construction companies in the world. He is responsible for strategy for the firm’s Industrial & Infrastructure group which focuses on the development and delivery of large, complex projects worldwide. The group encompasses three major business lines including Infrastructure, with an emphasis on Public Private Partnerships; Mining; and Industrial Services. Bob consults with owner’s of large engineering & construction capital construction programs across all market sectors in the development of programmatic delivery strategies encompassing planning, engineering, procurement, construction and financing. He is author of “Strategic Program Management” and “The Giga Factor: Program Management in the Engineering and Construction Industry” published by the Construction Management Association of America (CMAA) and “Topics in Strategic Program Management” as well as over 450 other papers and presentations.

Bob is a member of the ASCE Industry Leaders Council, National Academy of Construction and a Fellow of the Construction Management Association of America. Bob served until 2006 as one of three U.S. presidential appointees to the Asia Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC), working with U.S. and Asia-Pacific business leaders to shape the framework for trade and economic growth and had previously served as both as Chairman of the Engineering and Construction Governors of the World Economic Forum and co-chair of the infrastructure task force formed after September 11th by the New York City Chamber of Commerce.

Previously, he established a 20-year record of building and sustaining global revenue and earnings growth as Chairman at Parsons Brinckerhoff (PB), one of the world’s leading engineering companies.  Bob Prieto can be contacted at [email protected].