New on the Web #7

February 10, 2016
Binnacle: designed to reduce magnetic deviation so a compass remained accurate.

Binnacle: designed to reduce compass error!

We have been busy updating our websites with Posts, White Papers and Articles. Some of the more interesting uploaded in the last few weeks include:

These links are directly related to stakeholder engagement and communication.  A full indexed listing of all of our White Papers, Conference papers, books and articles can be found in our PM Knowledge Index.


Project Risk Management – how reliable is old data

January 28, 2016

One of the key underpinnings of risk management is reliable data to base probabilistic estimates of what may happen in the future.  The importance of understanding the reliability of the data being used is emphasised in PMBOK® Guide 11.3.2.3 Risk Data Quality Assessment and virtually every other risk standard.

One of the tenets underpinning risk management in all of its forms from gambling to insurance is the assumption that reliable data about the past is a good indicator of what will happen in the future – there’s no certainty in this processes but there is degree of probability that future outcomes will be similar to past outcomes if the circumstances are similar. ‘Punters’ know this from their ‘form guides’, insurance companies rely on this to calculate premiums and almost every prediction of some future outcome relies on an analogous interpretation of similar past events. Project estimating and risk management is no different.

Every time or cost estimate is based on an understanding of past events of a similar nature; in fact the element that differentiates an estimate from a guess is having a basis for the estimate! See:

–  Duration Estimating

–  Cost Estimating

The skill in estimating both normal activities and risk events is understanding the available data, and being able to adapt the historical information to the current circumstances. This adaptation requires understanding the differences in the work between the old and the current and the reliability and the stability of the information being used. Range estimates (three point estimates) can be used to frame this information and allow a probabilistic assessment of the event; alternatively a simple ‘allowance’ can be made. For example, in my home state we ‘know’ three weeks a year is lost to inclement weather if the work is exposed to the elements.  Similarly office based projects in the city ‘know’ they can largely ignore the risk of power outages – they are extremely rare occurrences. But how reliable is this ‘knowledge’ gained over decades and based on weather records dating back 180 years?

World-Temprature

Last year was the hottest year on record (by a significant margin) as was 2014 – increasing global temperatures increase the number of extreme weather events of all types and exceptionally hot days place major strains on the electrical distribution grids increasing the likelihood of blackouts.  What we don’t know because there is no reliable data is the consequences.  The risk of people not being able to get to work, blackouts and inclement weather events are different – but we don’t know how different.

Dealing with this uncertainty requires a different approach to risk management and a careful assessment of your stakeholders. Ideally some additional contingencies will be added to projects and additional mitigation action taken such as backing up during the day as well as at night – electrical storms tend to be a late afternoon / evening event. But these cost time and money…..

Getting stakeholder by-in is more difficult:

  • A small but significant number of people (including some in senior roles) flatly refuse to accept there is a problem. Despite the science they believe based on ‘personal observations’ the climate is not changing…….
  • A much larger number will not sanction any action that costs money without a cast iron assessment based on valid data. But there is no valid data, the consequences can be predicted based on modelling but there are no ‘facts’ based on historical events……..
  • Most of the rest will agree some action is needed but require an expert assessment of the likely effect and the value proposition for creating contingencies and implementing mitigation activities.

 

If it ain’t broke, don’t fix it???? 

The challenge facing everyone in management is deciding what to do:

  • Do nothing and respond heroically if needed?
  • Think through the risks and potential responses to be prepared (but wait to see what actually occurs)??
  • Take proactive action and incur the costs, but never being sure if they are needed???

There is no ‘right answer’ to this conundrum, we certainly cannot provide a recommendation because we ‘don’t know’ either.  But at least we know we don’t know!

head-in-sandI would suggest discussing what you don’t know about the consequences of climate change on your organisation is a serious conversation that needs to be started within your team and your wider stakeholder community.

Doing nothing may feel like a good options – wait and see (ie, procrastination) can be very attractive to a whole range of innate biases. But can you afford to do nothing?  Hoping for the best is not a viable strategy, even if inertia in your stakeholder community is intense. This challenge is a real opportunity to display leadership, communication and negotiation skills to facilitate a useful conversation.


New on the Web #6

January 10, 2016
Binnacle: designed to reduce magnetic deviation so a compass remained accurate.

Binnacle: designed to reduce compass error!

We have been busy updating our websites with Posts, White Papers and Articles. Some of the more interesting uploaded in the last few weeks include:

These links are directly related to stakeholder engagement and communication.  A full indexed listing of all of our White Papers, Conference papers, books and articles can be found in our PM Knowledge Index.


How to succeed as a PM in 2016

January 6, 2016

On-the-busProjects are done by people for people and through the medium of social media, people power is growing.  Successful project managers know this and use it to their advantage; they create a team culture focused on working with other stakeholders to create success.

Project managers know when they get this right because their project team will challenge, follow and support them, and each other, in order to get the job done. Not only that, but word spreads and other people inside the organisation will want to join the team or be associated with its success. When a PM achieves this, they know they have created something special and paradoxically are under less pressure, can get a good night’s sleep, and as a consequence are fully refreshed each day to keep building the success. This is good for the people and great for the organisation!!

Developing the skills and personal characteristics needed to develop and lead a committed team needs more then technical training. Experience, reflection, coaching and mentoring all help the project manager grow and develop (and it’s a process that never stops). Five signs that they are on the path to becoming a great team leader are:

  1. They’re well liked. Great leaders make people feel good about themselves; they speak to people in a way that they like to be spoken to, are clear about what needs to be achieved[1], and are also interested in their lives outside work and display a little vulnerability every now and again to demonstrate that they are human. They’ll always start the day with a ‘good morning’, the evening with a ‘good night’ and every question or interaction will be met with courtesy. When the team picks up on this the project area will be filled with good humour and great productivity.
  2. They put effort into building and maintaining teams. Designing great teams takes lots of thought and time – you need the right people ‘on the bus[2]’ and you need to get the wrong people ‘off the bus’. A great project manager doesn’t accept the people who are ‘free’ or ‘on the bench’ unless they’re the right people and they’ll negotiate intensely for the people that they really need, going to great lengths to recruit people into the vision that they have. Once the team is in place, they never stop leading it, building it, encouraging it, performance managing it and celebrating it.
  3. They involve everyone in planning. Or at least everyone that matters! The PM identifies the team members and other stakeholders that need to be involved; creates a productive, enjoyable environment, and leads the process. They want to ensure that they get the most out of the time and at the end have a plan that the team has built and believe in.
  4. They take the blame and share the credit. Great project managers are like umbrellas. When the criticism is pouring down they ensure that the team is protected from it. They then ensure that the message passed down is presented as an opportunity to improve not a problem to be fixed. Similarly, when the sun is out and the praise is beaming down, they ensure that the people who do the real work bask in it and are rewarded for it. When they talk about how successful a project has been, they talk about the strengths of the team and the qualities they have shown, never about themselves.
  5. They manage up well. Stakeholder engagement, particularly senior stakeholder engagement is the key to project success[3]. Great project mangers know they need senior executive support to help clear roadblocks and deliver resources and know how to tap into the organisation’s powerlines for the support they need.

Great project mangers are also good technical managers; they have an adequate understand the technology of the project and they know how the organisation’s management systems and methodologies work. But they also know they can delegate much of this aspect of their work to technologists and administrative experts within their team. And if the team is fully committed to achieving project success, these experts will probably do a better job than the project manager anyway.

Projects are done by people for people and the great project managers know how to lead and motivate[4] ‘their people’ to create a successful team that in turn will work with their stakeholders to create a successful project outcome.

 

[1] For more on delegation see:  http://www.mosaicprojects.com.au/WhitePapers/WP1091_Delegation.pdf

[2] In the classic book Good to Great, Jim Collins says, “…to build a successful organization and team you must get the right people on the bus.”

[3] This is the focus of my book Advising Upwards: A Framework for Understanding and Engaging Senior Management Stakeholders, see http://www.mosaicprojects.com.au/Book_Sales.html#Adv_Up

[4] For more on leadership see: http://www.mosaicprojects.com.au/WhitePapers/WP1014_Leadership.pdf


New on the Web #5

December 13, 2015
Binnacle: designed to reduce magnetic deviation so a compass remained accurate.

Binnacle: designed to reduce compass error!

We have been busy updating our websites with Posts, White Papers and Articles. Some of the more interesting uploaded in the last few weeks include:

These links are directly related to stakeholder engagement and communication.  A full indexed listing of all of our White Papers, Conference papers, books and articles can be found in our PM Knowledge Index.


Is your steering committee costing $5000 per hour?

December 13, 2015

The loaded cost of running a committee of senior managers can easily exceed $5000 per hour once the opportunity costs are included.  Productive committees offset this by creating value, hopefully significantly greater than their running costs.  Project and program steering committees should be no different!

Steering_Committee

However, if the steering committee is simply focused on ‘governance’ it is highly unlikely to be generating any significant value.  At the management level where most steering committees operate there is very little governance decision making needed and conformance and assurance usually needs specialists.

The first four functions of governance defined in The Functions of Governance are:

  • Determining the objectives of the organisation: this is done by the organisation’s governing body and implemented through the strategic plan. The project should have been selected because it contributes to achieving the strategic plan, a function of portfolio management, but once the project has started it is rather too late.
  • Determining the ethics of the organisation: this is done by the organisation’s governing body; it is a duty of every manager to support the organisation’s ethical standards and ensure the people they are managing conform. But you do not need a committee to ensure this occurs, just the project manager’s line manager (usually the Sponsor).
  • Creating the culture of the organisation: again this is done by the organisation’s governing body; it is a duty of every manager to support the organisation’s cultural standards and ensure the people they are managing conform. But you do not need a committee to ensure this occurs, just the project manager’s line manager (usually the Sponsor).
  • Designing and implementing the governance framework for the organisation: this should be done before the project is started and include delegations of authority for expenditure and decision making and escalation paths. If it has not been done, one half hour meeting of the sponsor and a few key managers can set the delegations.

In summary, the aspects of governance that determine the way the organisation operates and how the project or program will fit into the overall governance framework does not need a monthly meeting of any type.  There are management responsibilities but these are vested in the responsible line manager, typically the Sponsor (see more on the role of a Sponsor).

The final two functions of governance are ensuring accountability by management and conformance by the organisation.  A steering committee can certainly focus on these aspects of governance but if they do, they are largely wasting their time and most of the $5000 per hour.  There are two fundamental reasons for this:

  1. It is extremely poor governance for a managing entity to seek to provide assurance that the people it is managing are conforming. Assurance oversight should be provided by an independent body.
  2. Most aspects of project surveillance and assurance require high levels of technical skill. It is highly unlikely any of the managers on a steering committee posses these skills (see more on project surveillance).

The organisational entity best suited for the work of surveillance and assurance is a PMO with appropriate support from management. If there is an effective PMO structure in place with the ability to identify shortcomings, backed up by responsible line management there is no need for another committee to second guess the process a few weeks later (see more on PMOs).

Dilbert-committee

Some of the completely unproductive ‘governance’ functions undertaken by ‘steering committees’ include:

  • Validating correct procedures have been followed (properly resourced PMOs are a better and cheaper option).
  • Discussing negative variances and allocating blame (management action is needed not committee discussions).
  • Second guessing management decisions after the event and interfering in the day-to-day running of the project (project professionals are not helped by interference from amateurs – even if they are senior managers).
  • Listening to lengthy reports on what has happened during the last month (effective reporting is all that is needed).

Being involved in this type of activity may make the steering committee members feel important but contributes little or nothing of value in a well governed and structured organisation; if the organisation is not well governed and structured the committee members would be far better off focusing on fixing the real problems.

 

Steering Committees can be highly valuable!

The constitution of most steering committees creates a real opportunity to add value to the overall management of a project or program, but only if the committee focuses on helping craft success. Steering committees typically include members from a range of areas within the organisational affected by the project and its deliverables. Therefore as a group its members are uniquely placed to assist the project manager and sponsor deliver a successful project by helping them steer a path through the organisational politics and stakeholder issues that confront any project or program.

This objective can be achieved by making the members of the steering committee personally responsible for the realisation of value from the organisation’s investment in project, and in particular for dealing with the organisational change and stakeholder issues that are outside of the project manager’s responsibilities. Some of the key responsibilities allocated to the steering committee may include:

  • Responsibility for preparing the organisation for the changes needed to make use of the project’s deliverables and the realisation of value.
  • Managing the interface between the project and the organisational change management work
  • Being available to assist in the management of stakeholder issues escalated from the project and/or identified in areas outside of the direct influence of the project.
  • Ensuring effective benefits management is in place for the life of the initiative (ie, it continues after the project is closed).
  • Dealing with any other aspect of organisational politics that may affect the work of the project or the on-going change initiative.
  • Making value based decisions on complex change proposals, including contributing positively to the resolution of intractable problems, to optimise the value outcome for the organisation.

Obviously the steering committee also needs to take an interest in the project its steering to success. The problem is these are all management activities, not governance activities (for more on this see Does organisational governance exist?).

Effective steering committees work with the project manager and sponsor to identify the external influences causing problems and help the project successfully navigate the organisational stakeholder environment. They also resist the urge to interfere in the actual running of the project or program. There is a world of difference between a collaborative and supportive approach focused on success and the negative approach adopted by so many steering committees that seems to translate ‘governance’ into giving the project manager a ‘hard time’ to ensure compliance with ‘due process’ even if this adds to the existing problems.

Are your organisation’s steering committees worth their hourly running costs?


New on the Web #4

December 6, 2015
Binnacle: designed to reduce magnetic deviation so a compass remained accurate.

Binnacle: designed to reduce compass error!

We have been busy updating our websites with Posts, White Papers and Articles. Some of the more interesting uploaded in the last few weeks include:

These links are directly related to stakeholder engagement and communication.  A full indexed listing of all of our White Papers, Conference papers, books and articles can be found in our PM Knowledge Index.


Follow

Get every new post delivered to your Inbox.

Join 806 other followers