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Welcome to the December Edition of the PM World Journal

David Pells,

Managing Editor 

Addison, Texas, USA
________________________________________________________________________

Welcome to the December 2013 edition of the PM World Journal (PMWJ). This month’s edition again contains a wide range of contents from around the world, with 37 articles, papers, reports and book reviews by 38 different authors in 15 different countries.  An additional 30+ news articles about projects and project management around the world are included. Around 30 countries are represented by authors or subjects this month.

Invitation to Share Knowledge

We invite you to share your knowledge and experience related to program, project and portfolio management.  If you are an academic leader, graduate student, researcher or professional with some research results ready to publish, consider submitting a ‘Featured Paper’, ‘Student Paper’ or ‘Case Study’. If you are an expert or executive with a solution to share, send us an ‘Advisory’ article.  If you are an experienced program or project manager, project management professional or professional leader, consider sending us a ‘Commentary’ article about some topic of personal interest.  We publish a wide variety of articles and papers, case studies and reports, book reviews and news stories.  Share knowledge and gain visibility for you or your organization; publish an article, paper or story in the PMWJ.  Just contact [email protected].

In This Edition

We begin with two Letters to the Editor this month, from Max Wideman in Canada and Prof Hubert Vaughan in China. They both comment on recent articles in the PMWJ.  If you have a reaction to something you read in this publication, share it with the world in an old fashioned letter to the editor – but send it by email please.

3 authors in 3 different countries have contributed Featured Papers this month.  Pavel Barseghyan, PhD is back with another important paper titled “Equilibrium and Extreme Principles in Discovering Unknown Relationships from Big Data, Part 1: Methods of Advanced Data analytics in Light of the Equations of Mathematical Physics.” In this groundbreaking paper, Pavel lays the groundwork; next month he will explain how these concepts apply to project management.

Professors Vladimir Voropajev and Yan Gelrud in Russia are back with another paper in their series on mathematical models for various project stakeholder groups, this month’s paper titled “Mathematical Modelling for Project Management Problems for Regulators.”  If you are interested in project management science, we suggest you download and read the entire series; you can find their papers at www.pmworldlibrary.net.

Alan Stretton has provided another paper titled “Managing inter-project coordination within programs.”  Alan continues to explore the gaps in current project management standards and the literature, which we appreciate.  We’re also glad that he has chosen the PMWJ as his platform for sharing this new knowledge.  Our Featured Papers are all serious contributions to the P/PM literature, so although they may sometimes be long and somewhat academic, please consider reading them.  Increase your knowledge!

5 Series Articles are included this month, by 6 authors in 4 different countries. Darren Dalcher is back with an introduction and another article in our Advances in Project Management Series.  This month the topic is project finance and economics.  Darren’s introductory article titled “Project Economics: Wishful thinking, conspiracy of optimism or a self-fulfilling prophesy” gets to the heart of a major P/PM topic – better project financial management.  The featured author this month, Derek Salkeld, offers some useful perspective and a possible solution in “Let in the Light on Project Finances.”  Don’t miss these advanced discussions.

More…

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About the Author

flag-usadavid-pellsDAVID 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. David is an internationally recognized leader in the field of professional project management with more than 35 years of experience on a 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.  He was founder and chair of the Global Project Management Forum (1995-2000), an annual meeting of leaders of PM associations from around the world. David was awarded PMI’s Person of the Year award in 1998 and Fellow Award, PMI’s highest honor, in 1999. He is also an Honorary Fellow of the Association for Project Management (APM) in the UK; Project Management Associates (PMA – India); and Russian Project Management Association SOVNET.  From June 2006 until March 2012, he was the managing editor of the globally acclaimed PM World Today eJournal.  He occasionally provides high level P/PM advisory support for major global programs and organizations.  David has published widely, spoken at conferences and events worldwide, and can be contacted at [email protected].

For more, visit www.pmworldjournal.net and www.pmworldlibrary.net.

Beyond The Iron Triangle: Year Zero

SECOND EDITION

By Andrea Caccamese

and

Damiano Bragantini

Italy
________________________________________________________________________

 Abstract

Success in Project Management has been traditionally associated with the ability of the Project Manager to deliver in scope, time, cost and quality. The “iron triangle” is a very popular metaphor pointing out that the Project Manager is asked to reach a reasonable trade-off among various concurrent, heterogeneous and visible constraints.

At the same time, “soft skills” for the Project Manager have been traditionally identified as a set of cross-cutting skills that should complement the core job of establishing and maintaining reasonable trade-offs among the elements of the iron  triangle. This paper postulates that this is not enough.

The Project Manager is challenged by constraints other than the “measureable” scope, cost, time and quality. Individuals need motivation, but the available motivational space is not infinite. Ground rules for behaviour and communication should be established, but the performing organization could influence and limit the choices. Lastly, individuals should be facilitated in exploiting their own prominent assertive or holistic attitudes, but the nature of the project and the context at-large may be in contrast.

There is more than the “iron triangle”: there is a “soft pyramid”, a metaphor for concurrent constraints related to the “internal satisfaction” of the individuals working in the project.

To be successful, the Project Manager should also reach a reasonable trade-off among various concurrent heterogeneous factors that constitute the “soft pyramid”: this is much more than “making usage of soft skills in Project Management”, and should be made explicit in Project Management best practices.

Few extensions to PMBOK® are proposed in the HR knowledge area, and practical suggestions are provided for the “year zero” of this new awareness.

More…

To read entire paper (click here)

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. Original publication acknowledged; authors retain copyright.  This paper was originally presented at the 2012 PMI Global Congress in Marseilles, France and included in the congress Proceedings.  It is republished here with the permission of the authors. 


About the Authors

flag-italypmwj17-dec2013-caccamese-IMAGE1 CACCAMESEAndrea Caccamese

Italy 

Andrea Caccamese is an Electronic Engineer with more than 30 years of work experience in Information Technology and in Management Consulting for  Banking, Finance, Insurance, Oil, Manufacturing, Defense, Software Development and Hardware Manufacturing sectors. Currently he is an independent Project Management Consultant and Trainer. Mr. Caccamese has gained extensive experience in Program and Project Management, working for or with large organizations or Customers from Banking, Finance, Insurance and Manufacturing, being the leader of several relevant Programs and Projects.

Andrea Caccamese is a certified Project Management Professional (PMP) from Project Management Institute (PMI). He is also a certified PRINCE2 Practitioner and ITIL V3 Foundation Certified. He has been actively involved with  Project Management Institute (PMI) in the development of the standard for OPM3 (Organizational Project Management Maturity Model) Second Edition as a Sub-Team Leader, as a final Exposure Draft Reviewer and Contributor of PMBOK Fourth Edition, and as an Internal reviewer and final Exposure Draft Reviewer of PMBOK Fifth Edition. He has also been actively involved and is still involved with the local PMI Northern Italy Chapter, where he has been a contributor to some research projects. Mr. Caccamese is a frequent contributor and speaker at various Project Management events and is co-author of the preparatory text book for PMP Certification examination “Professione Project Manager”, and co-author of the text “Il ruolo del Project Manager”.   Andrea Caccamese can be reached at [email protected]

flag-italydamiano-bragantiniDamiano Bragantini

Italy

Damiano Bragantini is a Civil Engineer with more 15 years of experience in Civil Infrastructure and Information Technology experience. Currently he is working with Agsm Group, an important Italian utility in generation, distribution and supply of electricity and gas. Mr. Bragantini is also a recognized teacher at the University of Liverpool (UK) where he teaches in project management MSc.

Mr. Bragantini is a certified Project Management Professional (PMP) from the Project Management Institute (PMI). He has been also actively involved with Project Management Institute (PMI) as a final Exposure Draft Reviewer for Project Cost Estimating Standard and Practice Standard for Earned Value and as internal reviewer of PMBOK Fifth Edition. Mr.Bragantini has also been actively involved and is still involved with the local PMI Northern Italy Chapter, where he has been a contributor to some projects. Damiano Bragantini can be contacted at [email protected].

Project Management update from Argentina

REPORT

By Cecilia Boggi, PMP

International Correspondent

Buenos Aires, Argentina
________________________________________________________________________

As usual, November has been a month of many activities for the Project Management of the region as it took place the PMI Tour Cono Sur. It consists of a series of Project Management related congresses that were organized by the PMI chapters of Latin American South region: Peru, Chile, Argentina, Uruguay, Paraguay and Bolivia.

In the case of Argentina the congress took place in different cities Mendoza, Buenos Aires and Rosario.

The Congress organized by the PMI Nuevo Cuyo Chapter in Mendoza City was on 8th and 9th of November, at the National University of Cuyo, with over 200 attendees and excellent level of speakers. Some of the topics covered in this congress included: Project Team Coaching, Agile Project challenges and lessons learned, Stakeholder Management, control boards for projects and programs, strategic thinking for decision making, etc.

What’s interesting about this event is that it includes an outdoor activity for the day after the conference. This year was a visit to O. Fournier winery (pictured at right), with a team-building activity called “Winemakers for a Day”, which consisted of developing a wine following specifications by the winery winemakers.

The Congress “Tour Cono Sur Buenos Aires,” held on Wednesday, November 13th at the Marriott Plaza Hotel with an audience that exceeded 440 participants…

More…

To read entire report, click here


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

On the November Commentary Article by Rebecca Winston on the Subject of Subject Matter Experts

LETTER TO THE EDITOR

8 November 2013 

In her paper: “Accepting the Moniker of SME: The Onus of Experience
” Becky Winston asks some good questions. However, for my part I am not impressed by people who self-style themselves as “Subject Matter Experts” any more than I am that the moniker should be applied according to some arbitrary criteria. The problem is that expertise has a variety of dimensions any one of which might serve the purpose for recognition. For example, is it breadth or depth, is it practical or academic, or is it narrow and very specific?

Personally, I think the term may be used as a compliment by those who have received advice from those who have given it and have found that advice to be sound and satisfactory in a given set of circumstances.

Hope that helps,

R. Max Wideman

FCSCE, FEIC, FICE, FPMI

Vancouver, BC, Canada

On the Subject of Managing ICT Projects in the Innovation Age

LETTER TO THE EDITOR 

26 November 2013 

Dear David,

It was nice to speak to you and to say Hello again after all these years.

Thank you for publishing my series of articles about managing ICT projects in the innovation age.  I truly believe the research and concepts discussed can revolutionize the IT service industry, and I am happy to share with you and anyone who is willing to work towards that end.

The identification of “Deliverables” at the end of the Project Components Decomposition Method (PCDM) in the “What to look for when requirements do not exist…..” article can enable a practitioner to become a master instead of the craftsman that most of us are today.

Apart from the ‘Component Structure Design’, the new method will also change the structure of the technical team.  Project teams will not require internal coders but can work with start-up business partners who don’t need much experience in coding. This approach can minimize the operating cost of organizations by utilizing external resources on a profit-sharing basis or other partnership arrangement.

Organizations will only require a high caliber core team consisting of project manager, designers and quality assurance. Other development staff can be somewhere in Asia or Africa. This approach also encourages the high caliber technical team to be more creative and innovative when designing a new system as well as how to deliver.

Perhaps after a few more publications, we can consider creating a virtual team to refine some of the approaches and consider how they can be moved forward. I am happy to work with you and others to make it a reality.

Thank you again for providing the platform for presenting these concepts.

Hubert Vaughan

Beijing, China

Business Leadership for IT Projects

PM WORLD BOOK REVIEW 

pmwj17-dec2013-morris-IMAGE1 BOOKBook Title:  Business Leadership for IT Projects
Author:  Gary Lloyd
Publisher:  Gower
List Price:  £44.55
Format:  Hard Cover, 172 pages
Publication Date:   2013
ISBN: 9781409456902
Reviewer:      Diane Johnson Morris
Review Date:               November 2013
________________________________________________________________________

Introduction to the Book

Business Leadership for IT Projects is a great overview for business leaders who are embarking on IT projects.  The book provides a very practical approach for evaluating and providing successful business leadership for IT projects.  The author, Gary Lloyd, guides business leaders from deciding to kick off an IT project to managing the delivery of the project. The book provides some examples and tools to walk through decisions, to lead and build the end vision, and to measure value along the way.

The author’s two biggest focal points are leadership and value. The book is organized with various examples and research findings to back his recommendations.  In addition, the appendices provide tools for conducting workshops that can help the reader employ the techniques reviewed.  Plus, Gary Lloyd provides great examples to address using these practices for projects that are at various stages of progress.  This aspect of the book provides real-world application of the bag of tools he suggests.

Overview of Book’s Structure

Business Leadership for IT Projects is organized into three sections; (1) Introduction, (2) Chapters walking the reader through the recommendations for leadership, and (3) Appendices.    The book is written to be used as a tool or reference guide for trying techniques throughout the life of a project.  Gary Lloyd organizes the book’s chapters in useful topics that can be referenced for different types of projects.  In addition to the chapters and appendices, there is a complete list of references for each chapter.  This listing can be helpful if wanting to further research a topic or validate a position.

The chapters include topics from deciding to do a project to a recap on leadership.  The author consistently urges the reader to ensure to look at true value of the project before deciding to begin, or even continue a project that may be assumed.  Other chapters discuss the importance of ensuring strong leadership, a shared vision for the outcome, value-based delivery, evaluation of options, definition of the business case, and project delivery.

The book concludes with the importance of creating a team of leaders.  When the value is known and the vision is shared, team members can help ensure that the project moves forward.   Gary Lloyd again urges the reader to “just try it”, when he introduces ideas of empowering a team of leaders.  In this way, the project leadership expands and communication improves.

Highlights: What’s New in this Book

Business Leadership for IT Projects focuses on the business leader’s role in ensuring success of a project.  Although the importance of leadership has been a well-known factor for success, the book focuses on explaining IT projects to business leaders in a way that makes sense to them.  IT project managers work on IT projects every day.  Business leaders usually work on IT projects infrequently.  So the overview and explanation of the business leader’s role from their perspective is extremely helpful.   

More…

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About the Reviewer

flag-usapmwj17-dec2013-morris-IMAGE2 REVIEWERDiane Johnson Morris, PMP, MBA 

North Texas, USA 

Diane Johnson Morris is an Industrial Engineer and certified PMP.  She has over 25 years of experience in the Defense and Retail Industries.  She has worked in the Manufacturing, Supply Chain, and Information Technology areas as an Engineer, Process Leader, Strategy Manager, and Program/Project Manager.  Diane Morris can be contacted at [email protected] 

Editor’s note:  This book review was the result of cooperation between the publisher, PM World Inc and the Dallas Chapter of the Project Management Institute (www.pmidallas.org). Publishers provide books to PM World, books are delivered to the PMI Dallas Chapter where they are given to chapter members who commit to providing a book review in a standard format; the reviews are published in the PM World Journal and PM World Library.  Since PMI Dallas Chapter members are generally mid-career professionals, they represent the intended audience for most PM books.  If you are an author or publisher of a book related to program or project management and would like the book reviewed through this program, please contact [email protected].

Interview with IPMA Vice President Stacy Goff

INTERVIEW 

At the 2013 IPMA World Congress in Croatia

By Ivy Elizabeth Bai 

Shanghai, China
________________________________________________________________________

pmwj17-dec2013-bai-IMAGE1 GOFF

Stacy Goff, IPMA Vice President

Ivy Elizabeth Bai (Ivy):       Hello, Stacy. I am from Beijing Wow Project Management Consulting Company which is famous for project/programme management training, consulting and certification in China and ranks the top 10 Chinese Project Management Consulting Company by PMRC. We have been providing World Top 500 construction companies, large scale central enterprises and their subsidiaries, publicly-held companies, etc. project/programme management training, consulting and certification for ten years. There are 40-50 thousand project managers who attended our project management training.

Thank you very much for your time for this interview. As the vice president of IPMA Marketing and Events, what do you think of the congress this year?

Stacy Goff (Stacy):             I think the congress is excellent. The venue is wonderful, the keynote speeches are outstanding, the parallel stream sessions that I had the chance to see are great. One of the interesting things is that participants are coming from all over the world. This is one opportunity for people from different nations to meet at the sessions, so the good news, this is an opportunity to discuss IPMA, and to move forward. The bad news is people have multiple favorite sessions at the same time, resulting in missing some of the outstanding presentations. We almost need to have a ten days congress to cover all the business, I think that it is an excellent congress.

Ivy:     I am not a professor in project management, I am not a project manager for complex or mega projects, but I do projects. I think the topic of this congress finding balance and moving forward is great. Because all the project managers do the projects in a controlled environment, in which project managers need to balance many aspects to have the benefits, to control the risks and to meet the satisfaction and requirements of the stakeholders. As the project management experts, could you please tell us why does the IPMA board choose this topic?

Stacy:            There are multiple layers of answers to this excellent question. On the finding balance side, there is a lot about project management that is oriented to the technical parts; managing time, cost… that’s important. Yet if you look at success aspects of many projects, well, those technical threads are merely starting points. Projects mostly need people to work together, to relate to our stakeholders’ needs, to accomplish the impossible by teaming up, and working together.

And so part of the challenge is balancing the technical attributes of project success with the behaviors, the interpersonal aspects. And also, with understanding the context of the projects, the national cultures, the industry you are in, and all those important concerns. That is your “inside information” about what the balance is all about. Because if it is just the technical aspects, that’s only 10% of project success, and the other 90% is everything else. Even other organizations today are now asking: “are you ready?” And they are repeating our insight, that is not just the technical aspect, it is the “rest of the story” that IPMA brings.

And about moving forward, project management is the only discipline that humans do that involves change; everything else we manage is maintaining the status quo. If we are not moving forward, the world is still changing. So we are actually moving backwards, because the earth rotates beneath us; we need to move forward faster than society grows, and complexity increases. So that is what is behind IPMA’s slogan, moving forward; , if we are not moving forward, we are moving backwards.

Ivy:     Yes, this could be a survive or die, disappear issue.

Stacy:            There is another secret…

More…

To read entire interview (click here)


About the Author

flag-chinapmwj16-nov2013-bai-collado-ruiz-IMAGE 2 IVY BAIIvy Elizabeth Bai             

Shanghai, China 

Ivy Elizabeth Bai graduated from Beijing Normal University, Master’s Degree in Comparative Education.  Ivy has 18 years of working experience in education and training industry, working as management in Chinese and global top business schools such as Chinese European International Business School and Management School of Fudan University, working as director in education group.  Ivy has been involved in project management education and training for years; currently she is general manager of Beijing Wow Project Management Consulting Company, Shanghai Branch.  She is an assessor and language owner of PRINCE2 certifications.  She translated the books of P3O, PRINCE2 and all of the courseware of PRINCE2, MSP and MoR for use in China.  Ivy can be contacted at [email protected].

Advances in Project Management: Project economics: Wishful thinking, conspiracy of optimism or a self-fulfilling prophecy?

SERIES ARTICLE

By Prof Darren Dalcher

Director, National Centre for Project Management

University of Hertfordshire 

UK
________________________________________________________________________

Introduction to the December 2013 Advances in PM Series Article 

Financial management is crucial to the successful delivery of projects, especially when success, as so often is the case, is primarily measured in monetary terms. The Sixth Edition of the Association for Project Management’s Body of Knowledge, published in 2012, defines financial management as “the process of estimating and justifying costs in order to secure funds, controlling expenditure and evaluating the outcomes.” (p. 162)

In essence, financial management relies on estimating the cost of the work and quantifying the value of potential benefits likely to be derived from the expected outcomes. The feasibility study, options appraisal and development of a business case typically provide the initial justification for undertaking the work through the evaluation of costs, benefits and risks of alternative options. This underpins the rationale for commissioning the work and may also be utilised in selecting between competing solutions, projects or programmes.

Indeed, securing funds is a growing challenge, especially in times of financial austerity, limited resources, greater public scrutiny and an overarching need to achieve more with less. The constant stream of public projects failing to meet their budgetary baselines provides a continuous reminder of the need to get a better grip on the financial aspect of project work.

Enter Economics

Economics endeavours to discuss how a society, or a connected group, can balance ever expanding human wants with the increasingly scarce resources at their disposal.  It is particularly pertinent as it increasingly emphasises human wishes, behaviours and interactions as the basic elements of microeconomics, alongside capability, resources and targets. It can be particularly useful in determining if investment decisions are sound and sensible, and provide a basis for comparing and devaluating alternative options, solutions and projects in terms of utility, impacts or effectiveness.

If we accept the view advocated in the front pages of the popular press, and some of our own surveys that the majority of important projects experience significant cost overruns, we are obliged to consider the circumstances that build up towards such ‘failures’. It is also incumbent upon us to interrogate the dynamics leading to these outcomes.

The question

Assuming that the majority of projects considerably exceed their baseline estimates, we can develop three potential lines of interpretation:

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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 Michael Cavanagh.  Information about the Gower series can be found at http://www.gowerpublishing.com/advancesinprojectmanagement. 

About the Author 

flag-ukDarren Dalcher, PhDDarren 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].

Advances in Project Management: Let in the Light on Project Finances

SERIES ARTICLE

By Derek Salkeld 

UK
________________________________________________________________________

We bequeath three things to our descendants: one is genetic material, and the other two, things that are not: our culture and our infrastructure.  Of these two, it is infrastructure that contributes most to the quality of the lives we lead because it provides the greatest good for the greatest number.  However the genesis and development of infrastructure is not common knowledge in the way that, say, those of film or music are but even so there are two things everyone knows about infrastructure projects.  I was asked to give a lecture to an audience of academics a few years ago.  I introduced myself and then wrote up the names of half a dozen fictional projects on the board: the Buenos Aires Tram, the Russo-Canadian Air Traffic Control system, the Australian Federated Health Care Record System, and so on.  I made them up as I wrote but I did not reveal this to the audience.

I then asked the audience why these infrastructure projects had suddenly become newsworthy in their own countries.   After five minutes, we had a broad agreement that it must be because these projects were late and over budget. Late and over budget: this is what people who know little about infrastructure projects do know about infrastructure projects.  But is it true?  Do projects overspend and overrun?  Or is it an urban myth?

Research into this is clear: yes they do.  The research is not extensive, which is surprising in itself because the business of delivering infrastructure has to be large simply because there is so much of it out there, and what is more, it has been underway for centuries. The academic analysis is summarised in two excellent books.  In The Management of Projects (ISBN 0 7277 1693), Peter Morris describes how he set out to check the truth behind the oft-heard objective of the project management profession that it aims to deliver on time and on budget.  He found published accounts for 1449 projects, of which only twelve had.  He wrote that he later repeated the analysis with 3000 projects and found a similar result. In The Anatomy of Major Projects, Bent Flyvbjerg, Bjorn Azelius, and Werner Rothengatter.  (ISBN 0 521 00946 4)  assessed 260 projects and concluded that to be 90% confident of delivery within budget it would be necessary to add mark-ups of the order of 60% to their estimates, depending on the type of infrastructure: rail or roads and so forth.

Such is the concern among the funders of infrastructure projects that there have been some analysis-based initiatives that seek to compensate in advance of committing to a project for its anticipated overspend.   Like in Professor Flybjerg’s book, these seek to identify a percentage uplift that should be applied to a project estimate to give a desired level of confidence that its final cost will not exceed a target value.  Generically, they are known as reference case forecasts.  I think the approach may not be useful in practice because, first, no two projects are ever quite the same.  Even if the next string of pylons or the next viaduct is the same as the previous one, the project context: geomorphological, geological, environmental, public reception…and so on will be different and these influences can easily cause changes to an otherwise standard project that will alter its costs and timescales.

Second, reference case forecasting seems to me a self-fulfilling prophecy, a perfect feed-forward loop.  Say a mark-up of 60% is added to the estimate at the time of project approval to cover potential overspend, then I cannot imagine normal marketplace behaviour ever resulting in the final costs being appreciably less than 60% more than the estimate. The funding is there so suppliers will try to get it.

I would therefore like to propose something different, something that avoids the pitfalls of reference case forecasting.  I think we should try to calculate the extent to which a project may overspend (or overrun) before it is sanctioned.  I think this will have two major benefits.

More…

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About the Author 

flag-ukpmwj17-dec2013-salkeld-AUTHOR IMAGEDerek Salkeld

Southwest England, UK

Derek Salkeld has been a risk analyst and risk manager for 20 years. He trained as a geophysicist and led a signal processing systems design team for a UK military systems manufacturer. He has extensive experience of multi-disciplinary engineering projects covering a wide range of assets including: the assessment of Network Rail’s IT investment programme; the development of an asset investment model of waste water treatment systems owned by the Water Service of Northern Ireland and the business case for the London Cross Rail system. He was risk manager on both the recently opened London cable car and the East London Line projects. He is currently advisor to London Underground Limited on its stations capital works programme and to Genesis Power on its Tekapo hydro-electric projects in New Zealand. He is a doctoral research student at the University of Exeter researching risk management methods.

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.

The Role of Project Management Training in Determining Project Success

STUDENT PAPER

A Case Study of River Nzoia Basin Project in Kenya 

By Milcah G. Muriuki

Jomo Kenyatta University of Agriculture and Technology

Mombasa, Kenya
________________________________________________________________________

ABSTRACT 

A project is defined by various dimensions as a result of its various characteristics and its dynamic nature. To achieve project success, management must as much as possible adopt the project management approach, by clearly stating their desired goals and outcomes. There is therefore need to create clear objectives and enhance the conditions for the attainment of good results. Many scholars have highlighted the importance of knowledge in project management as a key that provides an organization with clear mechanisms that improves the organizations ability to plan, organize, communicate, coordinate, deploy and control important functions and centre its activities and the ways it uses its entire resources to improve the project success. This serves to underscore the importance of having the project team with the right skills so as to be able to undertake these key functions.

The general objective of this research was to establish the role of project management training in determining the project’s success in Kenya. The study sought to answer the following questions; to what extent does training in project planning influence project success in Kenya?; What are the effects of training in risk management in relation to  project success in Kenya? And does training in monitoring and control determine project success in Kenya? The case study for this research was the River Nzoia Basin project.

The study adopted a descriptive design to collect both quantitative and qualitative data. The target population was drawn from a population frame provided by the River Nzoia Basin Project and UNEP which was the project sponsoring organization and consisted of coordinators, project managers and staff. The sampling procedure employed was census and the entire population of 35 respondents was studied from the River Nzoia Basin project. Data was collected using questionnaires. A pilot study was conducted to establish the accuracy and reliability of the research instrument. Data was analyzed with the aid of Statistical Package for Social Sciences (SPSS 21.0) Quantitative data was  presented inform of tables, pie-charts and bar graphs while qualitative data was given inform of explanatory notes.

The research had a high response rate. Out of the total 35 questionnaires issued to the respondents, 32 were returned dully completed representing 91.4% of the total study population. In determination of project success, 62.5% of the total respondents who participated in the study acknowledged that so far the project has achieved its set objectives, while 37.5% of the respondents indicated that the project has not achieved its set objectives. Most respondents stated that project success can be measured by how well project inputs are transformed into outcomes, achievement of project objectives, levels of stakeholder satisfaction and evaluation in terms of quality, time and cost.

From the findings of the research, planning was a major determinant of the success of the River Nzoia Basin project according to 84.4% of the respondents. This was done through ensuring proper usage of resources and minimizing wastage. Further Majority (38.9%), (83.3%), (50.0%), (77.8%) of the respondents strongly agreed and agreed respectively that various aspects of risk management are essential in successful project implementation and management. On monitoring and control majority of respondents representing 62.5% of the total study population indicated that the level of influence of monitoring and control was high, while 28.1% and 9.4% stated that the level was moderate and low respectively.

The variables under study expressed a positive correlation coefficient of r = 0.748 indicating that there is a significant relationship between these variables. Therefore 74.8% probability of project success is influenced by project planning, risk management and monitoring and control. From the findings of the study, it can be concluded that it is paramount that every organization undertaking projects ensures that its project staff are adequately trained in professional and technical skills to maximize the project outcomes. Therefore further research should be conducted to determine the effects of training in project planning, risk management and monitoring and control in sector specific projects so as to increase the available knowledge on determinants of project success.

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Editor’s note: This paper was the result of a research project submitted in partial fulfillment of the requirements for a Master of Science Degree in Project Management, CBD-Mombasa Campus, Department of Entrepreneurship and Procurement, School of Human Resource Development, Jomo Kenyatta University of Agriculture and Technology, Kenya.

About the author

flag-kenyapmwj17-dec2013-Muriuki-AUTHOR IMAGEMilcah G. Muriuki

Kenya 

Milcah Muriuki was born in Kiambu County in the outskirts of Nairobi-Kenya. She grew up around the slopes of Ngong Hills where she attained both her primary and secondary education. Upon completion of secondary education she travelled to Uganda where she studied and obtained her bachelor’s Degree in Business Administration. She then worked for various organizations before she developed an urge to further her education.

Most community and faith-based projects in Kenya lacked professional knowledge on how to run their projects successfully, this realization is what led the author to pursue a Master of Science Degree in Project Management from Jomo Kenyatta University of Agriculture and Technology (JKUAT). Upon completion the author wants to apply the knowledge acquired from the university to train project managers in robust project management practices and undertaking project management consultancies in the areas of project implementation, monitoring and control. She can be contacted on [email protected].

About Jomo Kenyatta University of Agriculture and Technology

Jomo Kenyatta University of Agriculture and Technology (JKUAT) is a public institution in Kenya established as a University through an Act of parliament (the JKUAT Act, 1994) and inaugurated on 7th December 1994. The university’s mission is to offer accessible quality training, research and innovation in order to produce leaders in the fields of Agriculture, Engineering, Technology, Enterprise Development, Built Environment, Health Sciences, Social Sciences and other Applied Sciences to suit the needs of a dynamic world. Its vision is to be a University of global excellence in Training, Research and Innovation for development. Further information about the university can be obtained from www.jkuat.ac.ke

Disposable System Development – A New Paradigm for Managing ICT Projects in the Innovation Age: Part 2: How to Manage Projects Today and Tomorrow

SERIES ARTICLE

By Professor Hubert Vaughan 

Beijing, China
________________________________________________________________________

Doing business today is not the same as 60 years ago, or 40, or even 20 for that matter. It is much more competitive and globalized, and the nature of IT solutions changed along the way. Instead of supporting business operations for efficiency and accuracy during the “Automation Age”, it becomes a management tool to decide on investment and market share during the “Information Age”. Today, we are looking at developing software to search for market opportunity and product behaviors for sustainable growth and profitability. We are indeed stepping into a new era, the “Innovation Age” of information technology.

IT projects today frequently include technology that the development team may not have acquired specific knowledge about, thus requiring engagement of external experts to work on such onetime activity. Certain new risk elements will be incurred when focused around collaboration, co-operation, out-sourcing, and procurement during project delivery. The change of project activity requires project managers to change their management approach in managing their engagement in order to have a better chance of success.

What Project Managers manage in “Reality”

Project Managers manage projects, of course. But what is a project? According to the Project Management Institute (PMI), it’s a temporary group (of) activities designed to produce a unique product, service or result. A project is temporary in that it has a defined beginning and end in time, and therefore defined scope and resources. And a project is unique in that it is not a routine operation, but a specific set of operations designed to accomplish a singular goal. So a project team often includes members who don’t usually work together – sometimes from different organizations and across multiple geographies. The development of software for an improved business process, the construction of a building or bridge, the relief effort after a natural disaster, the expansion of sales into a new geographic market — all are projects. They must be expertly managed to deliver the on-time, on-budget results, learning and integration that organizations need.

Therefore, project managers are supposed to manage “activities” designed to produce a unique product, service or result. If “activities” are not designed in an effective and logical manners that leads to the completion of such unique product, service or result, no matter how well the project managers apply the knowledge, skills and techniques acquired from the PMBOK Guide, projects will fail.

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Editor’s note: This series of articles is by Professor Hubert Vaughan, recently retired from Tsinghua University in Beijing, and is based on his research over the last ten years during which he has developed some new approaches for managing major information and communication technology projects.


About the Author

flag-chinapmwj17-dec2013-vaughan-AUTHOR IMAGEProfessor Hubert Vaughan (Retired)

Beijing, China

Hubert Vaughan commenced his career in the field of computer technology in early 1972. For thirty years, Hubert practiced and served a number of International technology and financial Organizations including IBM, DEC, Unisys, Tandem, Bell Canada, Andersen Consulting, Lucent Technologies, National Mutual, ANZ Banking Group and Bank of Montreal; holding senior management positions in Technology related services. His career covered the five major continents around the world as Department Manager, Director, Assistant Vice President, and Vice President that spanned across software development, professional services, product development, technology consulting, project/program management, strategic planning as well as business development.

The last ten years, Hubert joined the Academic Institutions in China as Professor at the Institute of International Engineering Project Management (IIEPM) of Tsinghua University. Hubert also lectured at the Graduate School of China Academy of Science, the Beijing University of Aeronautic and Astronautic, teaching Innovation Management, Management of Technology, Program Management, Project management, and Software Engineering.

Apart from his teaching engagements, Hubert is a Research Fellow at the China Academy of Management Science, a member of the International Society of Professional Innovation Management (ISPIM), a former member of PMI’s Certification Governance Council (CGC); a co-founder of First International Innovation Management Alliance (FiiMA), and an Editorial Advisor of professional e-journal PM World Journal. Hubert is a Program Consultant to a number of multi-billion dollar projects run by State-Owned technology organizations and financial institutions in China.

Hubert is a regular presenter at international conferences and seminars in North America, Europe, Middle-East and Asia-Pacific. He had published more than fifty papers related to Software Engineering, Project Management, Program Management, and Innovation Management subjects both in China and in various international professional journals.  Retired from his academic engagement in July 2013, Hubert continues his research work in Innovation Engineering and presents at international events about his research findings throughout his career. He can be contacted at [email protected]

IPMA Education & Training Board’s Series for the PMWJ: The Iron Triangle Under Threat!

SERIES ARTICLE

By Ed Naughton

IPMA Education & Training Board Member

Dublin, Ireland
________________________________________________________________________

For over forty years the discipline of project management has been characterised by the icon of the Iron Triangle showing the triple constraint  of time, cost and scope. Dr. Martin Barnes, IPMA Fellow and legend in the project management community was the individual accredited with coining this term in 1969.

Project managers operating under this construct were primarily seen as implementers of solutions with a focus on technical, budget, schedule and specification issues.

It would appear that we are now at a stage to consider new paradigms similar to the iron triangle but representing the changing face of project management. Could such an icon/symbol have as powerful and enduring influence as the “iron triangle?

In 2006 the IPMA published version 3 of its Competence Baseline which was characterised by its Eye of Competence logo. The Eye represents clarity and vision of the requisite Technical, Behavioural and Contextual competences required by an effective project manager.

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Editor’s note: This is the 10th 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-irelandpmwj17-dec2013-naughton-AUTHOR IMAGEED NAUGHTON 

Institute of Project Management 

Dublin, Ireland

Ed Naughton, BE, C. Eng., F.I.E.I, FIPMA, IPMA-a, PMP, is the founder and current Director General of the Institute of Project Management of Ireland, the leading authority on the PM profession in Ireland.  On the international front, Ed was responsible for initiating cooperation agreements with both the PMI (Project Management Institute) USA and the IPMA (International Project Management Association). He is Ireland’s representative on the IPMA council of delegates, and a former Vice President-Marketing for the IPMA. He was also the first PMP registered in Ireland.  Ed has researched, published and presented many articles and papers on project management and is the author of the Irish Project Management Competence Baseline. During his thirty year career, Ed has worked as a project manager and/or project management consultant on a large variety of high profile domestic and international assignments. Ed Naughton is a graduate of University College Dublin (BE, civil), a Fellow of the Institute of Engineers of Ireland, a Chartered Engineer (Ireland), a Professional Engineer in Canada, and holds an IPMA Level A certification.  He is former founder and editor of the quarterly international publication “Project Management Practice”. One of Ireland’s most respected experts on the topic of modern project management, Ed is an executive advisor to PM World in Ireland.  Ed Naughton was named a Fellow of IPMA in 2013.  Ed lives in Dublin and can be contacted at [email protected].

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

SERIES ARTICLE

By Paul Dinsmore & Luiz Rocha 

Rio de Janeiro, Brazil
________________________________________________________________________

This is the last article in our EPG series. We will explore the transformation and change resulting from the EPG initiative and wrap-up what we have discussed during these 12 months.

Transformation and change is the seventh and last phase in our framework. All the work so far had the main objective of delivering results. However, when we move to a new desired state a certain transformation has to occur. Since transformation normally affects the stakeholders involved, the process has to be carefully thought. It is useless to have a fantastic methodology and amazing supporting systems if all the human idiosyncrasies involved are not considered.

Transformation is driven by change. It is focused on the internalization of change by the stakeholders affected. For such it is necessary to pro-actively understand the process of EPG transformation and establish how to manage it along three key stages:

Break with the past – the past must be acknowledged as the heritage that brought the organization to its present state. The lessons learned must be well understood and everything that worked must be used. The past may be glorious but it is not a guarantee of future success. The direction to navigate from the present to the desired new state must be explained and well communicated;

Manage the transition – be aware that people do not internalize the need for change in the same way. They have different timings which means that you do not implement change by simply snapping a finger. Understand that change takes time and do not fall in the trap of “having everything done for yesterday”. Everett Rogers in his 1962 book Diffusion of Innovations, explained that a target population for change management presented the following protagonists: Innovators (2.5%), Early Adopters (13.5%), Early Majority (34%), Late Majority (34%), Laggards (16%). The consequence of his discovery is that change has a life cycle for people to adopt it.

Geoffrey Moore in his 1999 book Crossing the Chasm expanded Rogers’ insights observing that groups adopting changes have different characteristics: 

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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 board chairman of DinsmoreCompass, 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 20 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]

Where to look when Requirements do not Exist in today’s Software Projects

SECOND EDITION

Professor Hubert Vaughan

Beijing, China
________________________________________________________________________

Anyone managing software development projects will agree that it is extremely difficult to identify “Requirements” that enable us to define “specifications” for the solution today, thus causing continuous changes during our development cycle, delaying project delivery and resulting in cost over-run.

A lot had been discussed and written about the techniques or ways for identifying requirements during the early stage of system development. It is unfortunate that we don’t seem to gain from any of these ideas and experience.

Today’s “information age” is very much different from the “automation age” of the past. Most project Sponsors and Stakeholders really don’t have any ideas about what the requirements will be during project initialization stage. We can never identify “Requirements” that do not exist from our customers or users.

On top of the non-existent “Requirement”, most project managers fail to define a Project Scope that can be managed. Without a manageable scope definition, we can never manage the subsequent changes requested during delivery. The PMBoK made very clear the importance of Scope Management, only if you can manage the project scope can you manage the Change Requests because Project Scope bounded the requirements for development.

Scope and Requirements in the 70s

It is the early stage of our automation age, that is, changing our manual business processes into computer systems that help us improve our productivities in our work environment. Instead of project scope that we know today, we called it “Terms of Reference” that bounded our undertakings.

If we were given an assignment to develop an Inventory Control System for the warehouse, we may receive an instruction like “Develop a system that identifies and keeps counts of all goods (Raw materials, semi-finished and finished products) that go into the warehouse, and all goods that leave for the production floor or for delivery to customers”.

The Terms of Reference gave us the boundary of our assignment that specified any business processes inside the warehouse that should be automated. The System Analyst then conducted a “Fact Finding” exercise, by interviewing warehouse management to identify the business processes that took place when goods come into warehouse, how and where they are stored, what triggered goods to be picked up for the production floor or for delivery to customers. The analyst identified how and where inventory counts were recorded, updated, transferred, and removed from the record. He or she reviewed report formats, contents and forms used inside the warehouse operations.

Armed with the information gained from the Fact Finding exercise and based on all those processes, the analyst would identify data capture requirements, file format requirements, data update requirements, and reporting requirements. The Terms of Reference basically bounded the Requirements of the development work.

Please take note that Users never gave out requirements, they told the Analyst their operational processes and the Analyst had to define the Requirements AFTER his understanding of the warehouse management operation.

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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 presented at Tsinghua University in Beijing, China in 2008.  It is republished here with author’s permission. 


About the Author                                                    

pmwj17-dec2013-vaughan-AUTHOR IMAGEProfessor Hubert Vaughan (Retired) flag-china

Beijing, China

Hubert Vaughan commenced his career in the field of computer technology in early 1972. For thirty years, Hubert practiced and served a number of International technology and financial Organizations including IBM, DEC, Unisys, Tandem, Bell Canada, Andersen Consulting, Lucent Technologies, National Mutual, ANZ Banking Group and Bank of Montreal; holding senior management positions in Technology related services. His career covered the five major continents around the world as Department Manager, Director, Assistant Vice President, and Vice President that spanned across software development, professional services, product development, technology consulting, project/program management, strategic planning as well as business development.

The last ten years, Hubert joined the Academic Institutions in China as Professor at the Institute of International Engineering Project Management (IIEPM) of Tsinghua University. Hubert also lectured at the Graduate School of China Academy of Science, the Beijing University of Aeronautic and Astronautic teaching Innovation Management, Management of Technology, Program Management, Project management, and Software Engineering.

Apart from his teaching engagements, Hubert is a Research Fellow at the China Academy of Management Science, a member of the International Society of Professional Innovation Management (ISPIM), a former member of PMI’s Certification Governance Council (CGC); a co-founder of First International Innovation Management Alliance (FiiMA), and an Editorial Advisor of professional e-journal PM World Journal. Hubert is a Program Consultant to a number of multi-billion dollars projects run by State-Owned technology organizations and financial institutions in China.

Hubert is a regular presenter at international conferences and seminars in North America, Europe, Middle-East and Asia-Pacific. He had published more than fifty papers related to Software Engineering, Project Management, Program Management, and Innovation Management subjects both in China and in various international professional journals.  Retired from his academic engagement in July 2013, Hubert continues his research work in Innovation Engineering and presents at international events about his research findings throughout his career. He can be contacted at [email protected] 

Blow up the Iron Triangle: Rethinking Software Project Approaches and Goals to Increase Business Value

SECOND EDITION

By Jeffrey Davidson

USA
________________________________________________________________________

Abstract

In an effort to bring more value, save more time, and make a bigger difference, software projects are rethinking every part of project delivery. Companies are attempting new approaches to solve challenges and opportunities.

These changes herald how the definition for project success is moving from the Iron Triangle of Scope-Schedule-Cost to a more flexible and impactful model of Value-Quality-Constraints. The tectonic shift influences nearly all elements of how software projects are conceived, executed, and measured. From redefining the problem statement to piloting solutions in a matter of weeks, the new focus on value over traditional project metrics shakes project management and requires a new understanding.

Introduction

Everyone agreed the organization needed change. The IT department had lost another leader from the top job. After going through four leaders in about as many years, the question was, what kind of leader would be coming in next?

The original IT leader did not have many processes and didn’t believe in project management. If you were connected or had friends in the department you could get something done. Conversely, if you didn’t have the connections, you didn’t have much chance of being heard. Let’s call this leader “Cowboy.”

Cowboy’s replacement brought in great people and best practices. It was easier to be heard if you could figure out how to get your idea through the process. The work was more organized with Project Managers and Analysts and loads of paperwork. And meetings, there were many, many meetings. This leader lasted for a few years and we will call him “Process Heavy.”

The next IT leader said the process was too heavy and we needed a new, lightweight method. Scrum was introduced to developers and the staff was reorganized from departments into teams. The new method was held onto so tightly any variance or deviation was shunned and cast aside. The teams were happier and the business liked getting small bits of work more quickly. Unfortunately, the new process brought a confusing new vocabulary and large projects never finished. This leader is the “Developer’s Friend” and he lasted for much less time than his predecessor.

The fourth IT leader felt like a breath of fresh air. “We should be a bit more flexible with our process,” he said. And the business liked when he told them “Yes.” He told all of them yes without a way to give them what they wanted. So the staff with less process had more work. And the business eventually tired of hearing everything is okay when they could not get results out of IT. This leader will be “Yes Man.” He didn’t last very long at all.

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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 presented at the 7th Annual UT Dallas Project Management Symposium in Richardson, Texas, USA in August 2013.  It is republished here with the permission of the author and UT Dallas. 


About the Author

pmwj17-Dec2013-davidson-AUTHOR IMAGEflag-usaJeffrey S. Davidson

North Texas, USA

Jeffrey Davidson, CSPO, PMC is a dynamic and engaging speaker, found at conferences and IIBA chapter events across the country. He works as ThoughtWorks’ North American Lead Analyst and Principal Consultant, focused on building BA communities and skills across in US and Canadian offices. Jeffrey regularly consults on critical projects in the transportation and finance industries, working with high-performance business analyst and software-delivery teams. He is a board member and past-president of IIBA Dallas Chapter. He can be contacted at [email protected].

A Transformational Change at IBM

SECOND EDITION

Susan Bivins

USA
________________________________________________________________________

Introduction

Back in the early 1990s, IBM was in trouble. Its sales force was selling hardware when customers wanted solutions; it was posting losses instead of profits; and, for the first time, lifetime employment was replaced by downsizing initiatives. Some executives realized IBM needed to transition from selling hardware to providing services, but that transition had not yet begun. This paper addresses an organizational change management project implemented in one geographic area in the early 1990s to transform part of IBM from selling hardware to delivering solutions.

Although it happened a while ago, the project still exemplifies the elements of successful transformational change. Despite the passage of time, the people aspects of change remain the same. The project redefined the strategy in one geographic area, turned the strategy into tactics, and incorporated a new opportunity management process that looked a lot like an early form of portfolio management. This paper discusses the organizational approach, processes and management systems developed to transform our business from selling hardware to delivering customer solutions. It contains no IBM confidential information. The author is now retired from IBM; everything written represents her own views rather than IBM’s. This is the true story of a major change initiative in a large company and identifies some common elements needed for successful organizational change.

Examples of Current Transformational Change Research

Executives know that their organizations must anticipate and respond to external and internal factors that cause their strategies to change. These factors may include increased competition, first-of-a-kind technology, economic downturn or best of all, anticipation of a market need and leadership in developing solutions. Change can turn our worlds upside down or be a small bump in the road; it can be incremental or transformational. For organizations, every new strategy involves transformational change.

But change isn’t just driven by executives. Every project involves organizational change. By its very definition, a project delivers a new capability to the organization. The new capability is embraced by stakeholders (good) or not (bad). Every project manager must therefore understand how to lead positive change and avoid the pitfalls. A recent study of 1,500 change practitioners worldwide found that success in transformation projects hinges primarily on people rather than technology; that “changing mindsets and attitudes” and “corporate culture” were the two most significant challenges reported by the practitioners; and that this “soft stuff is the hardest to get right”, (IBM 2008b, p. 12). The study also found that about 60% of change efforts fail.

Worse, according to McKinsey & Company (Keller, 2008), Kotter (1995) and research by others, about 70% of major change initiatives fail. After almost two decades of intense change from corporate reorganizations, new software systems, and quality-improvement projects, the failure rate remains at 70%. A whole new field of change management consultants, with accompanying models, has arisen to try to improve this failure rate. Here a few examples of transformational change research and attending models.

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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 presented at the 7th Annual UT Dallas Project Management Symposium in Richardson, Texas, USA in August 2013.  It is republished here with the permission of the author and UT Dallas.

About the Author

flag-usaSusan-S-BivinsSusan Bivins

Missouri, USA 

Susan S. Bivins, MSPM, PMP, has more than twenty-five years of management and leadership experience dedicated to delivering successful information technology, organizational change management, and professional consulting services projects for major global corporations. She specializes in project and portfolio management; international, multi-cultural and multi-company initiatives; and business strategy integration in the private and public sectors.  During her career with IBM, Sue managed multiple organizations and complex projects, including operations and support for the Olympics, and a strategic transformational change program. Since retiring from IBM, she has led multi-company joint initiatives with Hitachi, Microsoft and Sun Microsystems, and served as Director of Project Management at Habitat for Humanity International. She is co-author of the book Mastering Project Portfolio Management (J. Ross Publishing, Inc.) and several articles on project portfolio management.

Sue earned her Master of Science in Project Management from the Graduate School of Business at The George Washington University, where she received the Dean’s Award for Excellence and was admitted to the Beta Gamma Sigma business honorarium. A member of PMI, she contributed to the PMI Standard for Portfolio Management and is currently serving on the OPM3 Third Edition team. She and her husband live in Missouri. Sue can be reached via e-mail at [email protected]. 

Mathematical Modeling of Project Management Problems for Regulators

FEATURED PAPER

By Vladimir I. Voropayev, PhD,

and

Yan D. Gelrud, PhD,

Russia
________________________________________________________________________

Annotation

This paper dwells on the complex of the interconnected mathematical models intended for project activities management with the participation of one of the main interested parties – Regulators. The use of such models aims at increasing efficiency of their activity, ensures that relevant competences and the desired objective achievements under various conditions of modalities for the project implementation are put into effect.

KEY WORDS: stakeholder, mathematical models of project management, competence of project management.

INTRODUCTION

In the [1], there was made an attempt to structure the features of the main interested parties (stakeholders) and, with these in mind, to construct a complex of the interconnected mathematical models of project management. Isolated examples of such models are constructed for investor, customer, project team, main contractor, suppliers and regulators.

Ibid. we noted that various interested parties in the project are notable for different expectations, roles, measure of responsibility and management activities. These distinctions significantly influence project terms of reference, the methods used, tools and techniques of management problem solving, focused on their specific requirements.

The paper reviews a complex multipurpose project which realization can be carried out by means of N options. Each option has its own financial metrics, environmental and social characteristics. The suggested mathematical models are intended for selecting the most effective project variant from the viewpoint of one of the interested parties – Regulators. The use of such models aims at increasing efficiency of Regulators’ activity, ensures that relevant competences and the desired objectives achievement in project implementation are put into effect.

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About the Authors 

flag-russiaVLADIMIR-VOROPAJEVDr Vladimir Voropajev 

Author, Professor, International PM Expert

Founder, Former President, Chair – SOVNET

Former Vice President – IPMA

Full Member, Russian Academy of Natural Sciences

Moscow, Russia 

Professor Vladimir Voropajev, PhD. is Founder and former President and Chairman of the Board of the Russian Association of Project Management, SOVNET. Dr. Voropajev is professor of Project Management at the State University of Management, Moscow, Russia.  He is also Head of the Program and Project Management Faculty for the Russian State Academy’s Program for Professional Retraining and Professional Skill Development for Executives and Specialists in Investment Fields.

He is a full member of the Russian Academy of Natural Sciences on Information Science and Cybernetics, and of the International Academy of Investments and Economy in Construction. From 1991 to 2001, he was Vice-president and a member of the Executive Board of the International Project Management Association (IPMA), the global federation of national PM associations based in Zurich, Switzerland. He is the First Assessor for several IPMA certification bodies. In 2005 he was awarded IPMA Honorary Fellowship Award. He is also an honorary Fellow of the Indian Project Management Association and a past member of the Global Project Management Forum Steering Committee.

During his 40 years of engineering, scientific, teaching and consulting activities, he has published over 250 scientific research works including 7 monographs and 5 textbooks about the organization and planning of construction, information systems, and project management.  Vladimir serves on the editorial boards of several international project management journals, is a frequent participant in PM conferences worldwide, and provides ongoing counsel and support to PM professional leaders in Azerbaijan, Kazakhstan, Ukraine, Yugoslavia and several other countries.  Professor Voropajev can be reached at [email protected] 

flag-russiayan-gelrudYan D. Gelrud

Professor, South Ural State University

Chelyabinsk, Russia

Mr. Yan Gelrud was born in 1947 in Birobidjan (Khabarovsk Territory). In 1965 he finished a school of mathematics and physics at Novosibirsk. In 1970 he graduated from the mathematical faculty of university at Novosibirsk on “Mathematics” speciality. From 1970 to 1991 Yakov was working in the Research Institute of automated control systems as a head of mathematical division. He took part in creation and adoption of more than 100 automated control systems in different branches of industry.

From 1991 to 1997 Mr. Gelrud was doing business, being director general of “URAL-ASCО-SERVICE”.  Since the 1st of September 1997 till now he works as a professor of the “Enterprise and management” department in South Ural State University. He teaches a multitude of disciplines, such as “Mathematics”, “Theory of probability and mathematical statistics”, “Econometrics”, “Economic and mathematical methods”, “Mathematical methods of decision-making”, “Bases of decision-making methodology”, “Economical evaluation of investments”, “Mathematical methods and models of project management”, “Studies of managerial systems.”

Yan Gelrud has more than 100 publications and speeches on seminars and conferences of different level. His monograph “Project management in conditions of risk and uncertainty” was published recently.  He can be contacted at [email protected]

Managing inter-project coordination within programs

FEATURED PAPER

By Alan Stretton

Sydney, Australia
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ABSTRACT

A key program/project management standard says that “an essential program management responsibility is the identification, rationalisation, monitoring, and control of the interdependencies between projects”. Yet the management of interdependencies between projects is seldom addressed as a separate issue in the literature. Most of the relevant materials that do exist are generally intermingled with discussions of wider issues of program management, and are therefore rather anonymously represented.

This paper assembles materials on inter-project coordination from the two most widely used standards on program management, and adds some materials from other sources in the literature. This assemblage indicates that, whilst some areas of project interdependency management are reasonably well represented, many others are not.

It indicates that there are apparent opportunities to develop more comprehensive, and distinctively represented, materials on the management of inter-project coordination.

An unanswered question is whether such development is likely to enhance the quality and utility of the literature on program management. I argue that the answer is “Yes”. 

INTRODUCTION

An essential program management responsibility is the identification, rationalisation, monitoring, and control of the interdependencies between projects;… (PMI 2006a:7) 

This quotation very clearly indicates that management of interdependencies between component projects is an essential component of program management. This appears to be incontestable, and flows naturally from most definitions of programs, which invariably include the attribute of comprising interdependent component projects. 

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About the Author

flag-australiaalan-stretton-bioAlan 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 and papers.  Alan can be contacted at [email protected].

Equilibrium and Extreme Principles in Discovering Unknown Relationships from Big Data:Part 1: Methods of Advanced Data Analytics in Light of the Equations of Mathematical Physics

FEATURED PAPER

By Pavel Barseghyan, PhD

Yerevan, Armenia and Plano, Texas, USA
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Abstract

The further development of the methods of Advanced Data Analytics requires using the extreme principles and balance equations for identifying relationships hidden in the data. These fundamental methods and principles are widely used in the classical areas of quantitative science.

Besides, any area of the classical quantitative science, including mechanics and electrodynamics, can be represented as an area of ​​Big Data. For doing that, it is sufficient to collect a large amount of data of electrodynamic or mechanical nature from the surrounding environment.

Having the scientific representations of some quantitative area in the form of fundamental equations on the one side, and in the form of Big Data on the other side, a natural question arises of whether there is a correspondence and an agreement between these two views?

Also, if there is such a correspondence between them, are unambiguous mutual transitions between the fundamental equations and the Big Database possible?

In particular, is it possible to obtain the well-known fundamental equations or some of their equivalents for a quantitative field of knowledge from its Big Data in a statistical or semi statistical way?

This paper discusses the mutual relationships and the possible transitions between the fundamental equations of a quantitative science and their corresponding Big Data bases.

The purpose of the paper is to show that the experience of classical quantitative science can be effectively used in the development of contemporary Big Data Analytics in order to create more reliable methods for detecting unknown patterns and relationships hidden in Big Data.

The second part of this work will be devoted to the applications of the principles and approaches proposed in this paper, for analyzing Big Data in the project management area.

Introduction

Imagine electromagnetic phenomena and processes that taking place in our environment all the time. By collecting the results of measurements of even a tiny part of these processes one can have a typical Big Data base of electromagnetic nature.

But we do not make such measurements because we have a fundamental means of describing these phenomena, such as Maxwell’s equations and their simplified versions in the form of the wave equation, Kirchhoff’s laws, Ohm’s Law, and other laws [1].

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About the Author 

flag-usapavel-barseghyanPavel Barseghyan, PhD     

Yerevan, Armenia

Plano, Texas, USA

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 Management and Developing our Future Generations

COMMENTARY

By Mark Reeson 

UK
________________________________________________________________________

Introduction

It has been recognised for many years now that children learn better and faster through an interactive approach far more than they do within a stale classroom environment that dulls or stifles a child’s development.  With this in mind, in March 2010 I set about trying to understand the capacity of learning by children and adults alike and then with the assistance of family, friends and colleagues who have had experience of the schooling system developed a programme that I called ‘Living Learning’ and then over the last two and a half years, created a programme with them that has resulted in what it is hoped will fundamentally change how children learn the topic of project management not just now but also for the future.

From the early days of preschool and kindergarten children were challenged to learn but this was always about learning and developing through play.  Children would spend their day moulding materials, dressing up, and charging around and falling over each other outside.

Somewhere however, over the past few years early school years have become the new first grades where the focus of the school day has turned to results orientation and passing tests to meet targets with much more time being spent solely around the preparatory work, but although the fundamental skills of reading and arithmetic are still valuable and essential parts of learning, the practical demonstration of how and when these skills can be used has been lost, so when did interactive learning suddenly become a dirty word?

What seemed to happen was that schools suddenly started to cram more and more into their curriculum to ensure that they fit the targets set by organisations, trusts or governments; something had to give somewhere and it was often the aspect of ‘playtime’, the arts, and the other non-academic pursuits that they had valued for so many years.  Many of the schools at this stage argued that this then set the precedence so that the further a child went through the schooling system; the more they were directed towards targets and less about practical application of the learning and real life skills that would be used for the future.  It was becoming a case of putting a whole lot more into school curriculums, but with nothing really coming out as a result, leading to a child’s time in school gradually being eaten away.

Many experts warned that by removing the interactive learning out of a child’s school day was not the answer and that is was damaging in the long term.  “Interaction is important because it helps to build social and personal skills that everyone is looking for in 21st-century learning.  It doesn’t take away from their learning, if anything it enhances it,” stated Kathy Hirsh-Pasek, a professor of psychology at Temple University and co-author of Einstein Didn’t Use Flash Cards (Rodale, 2003).

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About the Author

flag-ukpmwj17-dec2013-reeson-AUTHOR IMAGEMark Reeson

United Kingdom

Mark Reeson is a project management specialist with twenty nine years’ experience, is a Fellow of the Association of Project Management (APM), and has been involved in many project and programme consultative roles.  He has recently been appointed a Registered Project Professional with APM and is a recognised Sustainability Management Global Advisor.  Having started his career in the Royal Air Force, Mark has continued to develop by working and delivering projects in the nuclear, training and international sporting field.

Mark has developed his role through further experience with the nuclear industry and is now the owner of M R Project Solutions and fulfils the role of Project Management Advisor.  His role is very much client facing and Mark now regularly travels the world meeting clients and training and developing their project families for the International Institute for Learning.  Mark’s main role is the development and the consultation with many organisations on ensuring they choose the right approach or methodology to deliver their projects and then follows this up with the correct bespoke training programmes for how their company wants to share this learning with their staff members.  Mark has been very successful in the public sector particularly with the County and City Councils, already having developed a number of methodologies and recently has just launched two training programmes with an insurance company and another nuclear organisation.

Mark recently was asked to take a temporary role within a financial company to assess how they would best introduce a project methodology to improve their turnover and delivery efficiency.  Mark has also had success with his new unique approach to training and mentoring project managers and has recently authored and has become the advocate of ‘Living Learning in the Project Management Community’.

Mark is hoping in the future to develop this further to spread the knowledge and competency available through this approach to many more organisations worldwide.

Mark’s latest success has been the introduction of Project Management for Future Generations which has gained great acclaim already within Africa, Europe and the United States.  In Mark’s own words, “Long may the development of our children continue and project management has a role to play in that.”

Mark Reeson can be contacted at [email protected].