Knowledge Management is more than Information Management

It has been a while, but a new paper: Knowledge Management is more than Information Management has been uploaded to our library of project management papers.

The term ‘knowledge management’ involves two interlinked elements that together can help organisations grow and succeed, information management and knowledge creation. People know things, knowledge is organic, adaptive and created – it exists in the minds of people. Information is recorded, it is held in systems and made accessible to people. Good information management systems contain verified information in a useful format but the information is of no value unless it is accessed and used.

This paper highlights the important fact that, knowledge management systems require the active involvement of people at every stage of the DIKW chain to contribute anything of value back to the organisation that has invested in setting up the system.

Download the full paper.

To see more on KM, visit our PMKI library: https://mosaicprojects.com.au/PMKI-PBK-010.php#Process3

The Origins of Schedule Management

Our peer-reviewed paper, ‘The origins of schedule management: the concepts used in planning, allocating, visualizing and managing time in a project’ has recently published in the ‘Frontiers of Engineering Management’ at: http://journal.hep.com.cn/fem/EN/2095-7513/current.shtml

This paper brings together a number of published articles and other research we’ve undertaken in the last decade or so to present a coherent view of the evolution of project scheduling in a format that can be used by other Academics.  It is also aimed at correcting many of the commonly held misconceptions around this topic.

The concepts used for project schedule management have very deep roots; getting the right people in the right place at the right time to accomplish an objective has been a major organizational challenge for at least 3000 years! In ancient times this process seems to have been based on the scheme of arrangements being contained in the leader’s mind and instructions communicated verbally. Modern approaches to solving the twin challenges of first thinking through the ‘plan’ and then communicating the plan to the people who need to do ‘the right work, at the right time, in the right place’ use sophisticated graphics, charts, diagrams, and computations, but the problem and challenges are the same.

This paper traces the development of the concepts most project managers take for granted including bar charts and critical path schedules from their origins (which are far earlier than most people think) through to the modern day. The first section of the paper looks at the development of concepts that allow the visualization of time and other data. The second looks at the shift from static representations to dynamic modelling through the emergence of computers, dynamic calculations and integrated data from the 1950s to the present time.

You can download an augmented version of the paper from: https://mosaicprojects.com.au/PDF_Papers/P202_The_Origins_of_Schedule_Management.pdf

Stakeholder Circle® Up For Sale

The developer of the Stakeholder Circle® methodology, Dr. Lynda Bourne, has decided that as part of her transition to retirement it is time for the sophisticated SAAS web version of this leading-edge methodology to be transitioned to a new owner better able to exploit its potential.

The elements of the overall Stakeholder Circle® methodology we are actively seeking new owners for are:

1. The current database system that delivers the Stakeholder Circle® functionality to clients including both the analytics and contact management systems. These are developed in SQL Server and currently hosted by OrangeSoft Pty Ltd.
2. An earlier FileMaker database system that delivers the Stakeholder Circle®
3. The Stakeholder Circle® website and URL: https://stakeholder-management.com/
4. A non-exclusive licence to use the Stakeholder Circle logo and various papers and other IP.

The precise arrangements of the sale and transfer of ownership are very flexible, what Lynda is seeking is an advocate that can take the concepts and exploit the commercial opportunities her work has created. Payment amounts and terms, the precise scope of the IP transfers, and how much assistance we provide to you are open to offer, and agreement.

If you feel you may be interested in this unique opportunity to move your business or organisation to the leading edge of stakeholder analysis we will be happy to talk with you. In the first instance, email your expression of interest to patw@stakeholder-management.com.  All offers and ideas will be considered and assessed based on finding a good ‘new home’ for the tool.

Effective Stakeholder Engagement is Multifaceted

An organisation’s success, reputation and long term sustainability depends on its stakeholders and how they perceive the organisation.  The way the organisation interacts (or is perceived to interact) with its stakeholders builds its reputation and its customer base.  But customers belong to communities and it’s the broader community that grants the ‘social licence’ needed for the organisation to operate long-term. And, because no one and nothing is ever perfect, things will go wrong from time to time requiring action to protect the organisation’s reputation and its social licence.

The objective of this post is to:

• Put all (or most) of the different mechanisms used by organisations to engage with stakeholders into perspective; and
• Emphasise the message that authentic and effective stakeholder/community engagement needs an organisation-wide coordinated approach that is governed from the very top levels of management.

The Stakeholder Engagement Spectrum

The Organisational Core

The characteristics of the organisation are always at the centre of every stakeholder relationship[1]. The way your organisation is structured, its ethics, characteristics, systems, and services, underpin how its stakeholder community will ultimately perceive the business. The key to successful stakeholder engagement is in part the way the organisation is structured and operated, and in part being authentic and realistic in the way various aspects of stakeholder communication and engagement are used. If your business is a low-cost, low service, bulk supplier don’t pretend to be an upmarket high service organisation. Many people are more than happy to shop at retail outlets such as Walmart and Aldi, attracted by price and simplicity; others prefer the higher levels of service and higher prices from more upmarket department stores. The art of stakeholder engagement is to maximise the appeal and perceptions of the organisation as it is – not to mask reality with a pretence of being something else.

However, poorly governed unethical organisations will always ultimately fail regardless of their stakeholder engagement effort; you can’t build an effective long-term relationship on unsound foundations.

 

The 8 Aspects of the Stakeholder Engagement Spectrum

The eight aspects of stakeholder engagement highlighted above are all well defined in various publications; the way they are used in this post is briefly set out below:

PR: Public Relations – The actions taken by an organisation to develop and maintain a favourable public image. PR is a strategic communication process that builds mutually beneficial relationships between the organisation and its stakeholders. The core element of PR is push communication; it is a proactive process controlled by the organisation, broadcasting information to a wide community to influence attitudes.

Advertising – The activity production and placing of advertisements for products or services. The purpose of each advertisement is to announce or praise a product (goods, service, concept, etc.) in some public medium of communication in order to induce people to buy, use it, or take some other action desired by the advertiser. The difference between PR and Advertising is that PR largely focuses on creating or influencing attitudes and perceptions whereas advertising focuses on some form of ‘call to action’.

CRM: Customer Relationship Management – Refers to the practices, strategies, and technologies that organisations use to manage and analyse customer interactions and customer data throughout the customer lifecycle. The goal of CSR is to improve the organisation’s relationship with each customer, assisting in customer retention, and driving sales growth. Good CRM systems make it easy for people to do business with you.

Issues Management[2] – The process of identifying and resolving issues. Effective issues management needs a pre-planned process for dealing with unexpected occurrences that will negatively impact the organisation if they are not resolved. The scope of this concept ranges from ‘crisis management’ where the magnitude of the issue could destroy the organisation (and the most senior management take an active role) through to empowering staff to deal with relatively minor customer complaints. The key to effective issue management is resolving the issue to the satisfaction of the affected stakeholders. This requires effective systems and preplanning – you don’t know what the next issue will be, but you can be sure there will be one.

Stakeholder Management Initiatives[3] – this is the area where most of my work is focused; managing the expectations of, and relationships with, the stakeholder community surrounding an organisational activity, initiative, or project. Most business initiatives and projects have a high potential to affect a range of stakeholders both positively and negatively (and frequently both at different times). How these relationships are managed affects not only the ability of the organisation to deliver its initiative or project successfully, but also the overall perception of the organisation in the minds of the wider stakeholder community.

Business Intelligence & Environment Scanning – BI and other forms of environmental scanning looking at attitudes, trends, behaviours, and other factors in the wider stakeholder community. They are a key emerging element in the overall approach to stakeholder engagement used by proactive organisations. This is very much the space of ‘big data’ and data mining. Much of the collection of data can be automated and ‘hidden’ from view. The challenge is making sure the information collected is legal (privacy legislation is an important consideration), accurate, relevant, and complete; then asking the ‘right questions’ using various data mining tools. As with any intelligence gathering process, obtaining the data is the easy part of the equation; the real skill lies in developing, validating and interpreting the data to create information that can be used to produce valuable insights.

Social Networks – The ubiquitous, widespread, and diverse nature of social networks ranging from Facebook to personal interaction down the pub can easily outweigh all of the organisation’s efforts to create a positive image using PR, advertising and the other ‘controlled’ functions discussed above.  The organisation’s staff and its immediate stakeholders literally have millions of connections and interconnections to other stakeholders. Most of these connections are unseen, and the environment cannot be controlled. The best any organisation can hope to achieve in this relatively new communication environment is to plant seeds and seek to have some influence. Seeding ideas and concepts into the ‘Twittersphere’ may result in a concept being taken up and ‘going viral’, more commonly the seed simply fails to germinate. Conversely identifying negative trends and issues early, particularly if they are false, is critically important and where possible these negative influences should be countered but given the nature of the environment this is a very difficult feat to achieve.  Smart organisations recognise that their staff, customers, contractors, and suppliers all engage in this space and through other effective communication channels can influence how these people respond to opportunities and issues affecting the organisation.

CSR: Corporate Social Responsibility[4] – CSR completes the circle and brings it back towards the concept of PR.  CSR contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders. ISO 26000  Guidance Standard on Social Responsibility, defines social responsibility (ie, CSR) as follows:

Social responsibility is the responsibility of an organisation for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour that:
–  Contributes to sustainable development, including the health and the welfare of society
–  Takes into account the expectations of stakeholders
–  Is in compliance with applicable law and consistent with international norms of behaviour, and
–  Is integrated throughout the organization and practised in its relationships.

The key difference between CSR and PR is that CSR actually involves doing things both within the organisation and within the wider community, whereas PR focuses on telling people things.

 

Applying the Stakeholder Engagement Spectrum

The various aspects of stakeholder engagement spectrum combined together to create the organisation’s reputation, engage communities, build customers, and when necessary protect the organisation’s reputation. The key combinations are set out below:

Reputation Creation: The key components needed to create and maintain a desirable reputation start with CSR and work clockwise through the spectrum to CRM.

Community Engagement: The key components needed to effectively engage the wider community are focused on CSR but includes the elements moving anti-clockwise from CSR through to Issues Management.

Building Customers: The elements needed to build and retain customers start with PR and work clockwise through the spectrum to Issues Management.

Protecting Your Reputation: Finally protecting the organisation’s reputation is focused around Issues Management, but includes elements of CRM and continues clockwise through to Environment Scanning. In addition, many of the ‘push’ elements in the spectrum may be used as tools to help manage issues and protect the reputation of the organisation including PR and advertising.

 

Conclusion

The ‘stakeholder engagement spectrum’ above is deliberately drawn in a circle surrounding the organisational core, because all of the different aspects interrelate, many overlap, and they all build on each other.  The governance challenge facing many organisations is breaking down the traditional barriers between functional areas such as advertising, PR and CRM/sales, so that the entire organisation’s approach to its stakeholders is coordinated, authentic and effective.

________________

[1] See more on Ed Freeman’ stakeholder theory at: https://mosaicprojects.wordpress.com/2014/07/11/understanding-stakeholder-theory/

[2] For more on issues management see: https://mosaicprojects.com.au/WhitePapers/WP1089_Issues_Management.pdf

[3] For more on stakeholder management see: https://mosaicprojects.com.au/Stakeholder_Circle.html

[4] For more on CSR see: https://mosaicprojects.wordpress.com/tag/corporate-social-responsibility/

The Evolution of Project Management

The publication of the PMBOK® Guide sixth edition at the beginning of September, and the decision last week by ISO committee TC258 to revise ISO standard 21500 should mark the end of an era in the development of project management. For most of the last 50 years the dominant view of project management associations has been that project management is a generally transferable skill. This has resulted in the view that ‘project management’ can be represented by a single ‘BoK’ (Body of Knowledge), a single ‘competency baseline’ and capability can be demonstrated by passing a single credential or certification. However, whilst the PM professional associations have advocated this view, the job market has always retained a focus on different industry experience – you don’t get an IT project manager’s job without IT experience.

As outlined above, from the emergence of ‘modern project management’ in the 1960s[1] the predominant view of the professional associations and most academics and practitioners has been that ‘project management’ is a single discipline with transferrable skills. A single qualification framework is appropriate and the skills and techniques are generally applicable across all industries.  However, in the years between the 1960s and the 2000s, as different industries and disciplines progressively adopted the concept of ‘project management’ this holistic view has become increasingly stressed.

The future suggested in this post still sees project management as a single discipline focused around some high-level objectives; but rather than having a single set of generally accepted good practices applicable to most projects most time, the emerging discipline needs to be capable of embracing a range of different approaches to project management and a diverse toolbox of techniques that can be mixed and matched to optimise the creation of the project’s deliverables.

Project management literature has identified at least three key dimensions to project management:

1. An ‘adaptive/agile’ approach -v- a disciplined structured approach.
2. The size, scale, and difficulty associated with the work of the project.
3. Simple relatively predictable projects -v- complex projects with emergent properties.

In addition to these parameters (mapped in the diagram above), there is also the degree of certainty associated with the work, the technical complexity of the product, and the attitude of the stakeholder community[2].

It’s time for a change.

The project management techniques needed to manage different types of project vary enormously; for example:

• The optimum approach to managing a relatively small, simple project to upgrade a website may benefit from an adaptive/Agile approach to managing the work and should only require a ‘light touch’ to control the work;
• Contrast this to the disciplined approach needed to design and build a new chemical plant where not only do complicated parts need to be manufactured to precise dimensions months in advance and shipped halfway around the world, but the work has to be carefully managed and the parts assembled in a precise sequence to allow all bits to be fitted together properly in a safe working environment.

Both these endeavours are projects, but the project management techniques needed for success are dramatically different. Even within the one project, some elements may benefit from an ‘agile’ approach to the work (eg, systems integration), while other elements of the work will require a very disciplined approach to achieve success – building space rockets does require ‘rocket science’.

The challenge facing the project management profession and project management academics is firstly defining the common core of project management, and then adapting the approach to developing and documenting the overall project management body of knowledge in a way that recognises the core commonality of being ‘a project’ whilst allowing different approaches to the management of the work. And once these foundations are in place, flowing these concepts through into documented standards, knowledge frameworks and certifications. In the 21^st century a ‘one size fits all’ approach to the management of projects is no longer appropriate.

PMI has started down this path, they have agile certifications and have included both tailorability and agile concepts into the 6^th edition of the PMBOK® Guide. Developments in the ISO space are also moving towards this integrated but separated approach to managing different types of projects. ISO 21500 Guidance on Project Management, is being updated and transformed into a higher level ‘management standard’, if this development is successful, in the future a series of implementation guides can be foreseen focused on different types, sizes and phases of project development and delivery.

What’s missing at the moment is a holistic and agreed understanding precisely what a project actually is[3] (this will segregate project management from other forms of management), and then a framework distinguishing the different types of project that exist within the overall frame of a project but requiring different styles of project management. Some of the multitude of factors that need to be considered include:

• The inherent size of the project usually measured in terms of value;
• The degree of technical difficulty in creating the output (complication) caused by the characteristics of the project’s work and its deliverables, or the time-frame the deliverables are required within;
• The degree of uncertainty involved in the project;
• The degree of complexity associated with the work and the stakeholder relationships;
• The difference between client project management and contractor project management;
• The various methodologies and strategic approaches to managing the project and developing the product (Agile, PRINCE2, etc);
• The maturity of the environment in which the project is being delivered (developing economies/organisations -v- mature economies/organisations); and
• The difference between project, program and portfolio management.

The common core

The core element of all projects is the intentional ‘temporariness’ of the team (organisation) set up to deliver the project. The ‘temporary organisation’ is given an objective to create a deliverable for a client and then to shut down efficiently; in addition, there is an intention on the part of most key stakeholders to treat the work as a ‘project’. This means the project has to be started (initiated), the work planned, then undertaken, and on completion the temporary organisation has to be closed – and of course, all of these activities need monitoring and controlling.

Where 21^st century project management needs to diverge from the doctrines of the last century is in the way these overarching objectives are achieved – defining 44 or 49 processes as ‘generally accepted best practices’ is no longer appropriate.  The concept of ‘project management’ needs to be able to adapt to very different approaches, allow the project team to select from a toolbox of ‘useful techniques and methodologies’ and then encourage the teams to craft the processes they actually use to optimise the delivery of the project’s outputs to its clients.

Achieving this will require a different approach to developing standards, a different approach to training and qualifying practitioners and the creation of very different communities within the profession that encourages cohesion whilst embracing diversity of practice.

It will be interesting to see if our profession is up to the challenges.

____________________

[1] For more on the origins of ‘modern project management’ see: http://www.mosaicprojects.com.au/PDF_Papers/P050_Origins_of_Modern_PM.pdf

[2] For more on the dimensions of project management see: http://www.mosaicprojects.com.au/WhitePapers/WP1072_Project_Size.pdf

[3] For more on defining a project see: https://mosaicprojects.wordpress.com/2016/08/11/seeking-a-definition-of-a-project/

New on the Web #20

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:

• New article: ‘Not knowing’ is no longer an option: ACCURATE information is needed!
• WP updated: Personal Time Management
• WP updated: Managing Meetings
• WP updated: Systems Thinking
• WP updated: Social and Emotional Intelligence
• WP updated: Corporate Governance

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.

Levels of Stakeholder Engagement

How engaged should your stakeholders be? Or how engaged do you want them to be? In an ideal world the answer to both questions should be the same, but to even deliver a meaningful answer to these questions needs a frame of measurement.  This post uses ideas from 1969 to propose this framework!

In July 1969, Sherry R. Arnstein published ‘A Ladder of Citizen Participation’ in the A.I.P Journal[1] looking at citizen participation and the consequential citizen power over a range of USA government initiatives designed to enhance the lives of disadvantaged people in US cities. The typology of participation proposed by Arnstein can be transposed to the modern era to offer a framework for discussing how engaged in your project, or program, your stakeholders should be in actively contributing to the management and governance of the work they are supposed to benefit from.

Modern paradigms such as ‘the wisdom of crowds’, ‘user participation in Agile teams’ and ‘stakeholder theory’ all lean strongly towards stakeholder ownership of the initiative designed to benefit them. These views are contrasted by concepts such as technical competence, intellectual property rights, confidentiality and the ‘iron triangle’ of commercial reality (often backed up by contractual constraints).

The debate about how much control your stakeholders should have over the work, and how engaged they should be in the work, is for another place and time – there is probably no ‘universally correct’ answer to these questions. But it is difficult to even start discussing these questions if you don’t have a meaningful measure to compare options against.

Arnstein’s paper is founded on the proposition that meaningful ‘citizen participation’ is ‘citizen power’ but also recognises there is a critical difference between going through empty rituals of participation and having real power to affect the outcome of a process. This poster was from the May 1968 student uprising in Paris, for those of us who can’t remember French verbs, translated it says:  I participate; you participate; he participates; we participate; you (plural) participate; …… they profit.   The difference between citizen participation in matters of community improvement and stakeholder participation in a project is that whilst civil participation probably should mean civil control,  this same clear delineation does not apply  to stakeholder engagement in projects.  The decision to involve stakeholders in a project or program is very much open to interpretation as to the best level of involvement or engagement.  However, the ladder of engagement proposed by Arnstein can easily be adapted to the requirement of providing a framework to use when discussing what is an appropriate degree of involvement for stakeholders in your project or program.

There are eight rungs in Arnstein’s ladder; starting from the bottom:

1. Manipulation: stakeholders are placed on rubberstamp advisory committees or invited to participate in surveys, provide feedback, or are given other activities to perform which create an illusion of engagement but nobody takes very much notice of the information provided.   The purpose of this type of engagement is primarily focused on making the stakeholders feel engaged rather than using the engagement to influence decisions and outcomes. The benefits can be reduced stakeholder opposition, at least in the short-term, but there is very little real value created to enhance the overall outcomes of the project.
2. Therapy: this level of stakeholder engagement involves engaging stakeholders in extensive activities related to the project but with a view to changing the stakeholder’s view of the work whilst minimising their actual ability to create change. Helping the stakeholders adjust to the values of the project may not be the best solution in the longer term but every organisational change management guideline (including our White Paper) advocates this type of engagement to sell the benefits the project or program has been created to deliver.
3. Informing: informing stakeholders of their rights, responsibilities, and/or options, can be the first step towards effective stakeholder participation in the project and its outcomes. However too frequently the emphasis is placed on a one-way flow of information from the project to the stakeholders. Particularly when this information is provided at a late stage, stakeholders have little opportunity to contribute to the project that is supposed to be delivering benefits for them. Distributing information is a key stakeholder engagement activity (see the Three Types of Stakeholder Communication) but there have to be mechanisms for effective feedback for this process to maximise its potential value.
4. Consultation: inviting stakeholder’s opinions, like informing them, can be a legitimate step towards their full participation. But if the consultation is not combined with other modes of participation this rung of the ladder is still a sham, it offers no assurance that the stakeholder concerns and ideas will be taken into account. Effective participation includes providing stakeholders with a degree of control over the consultation processes as well as full insight as to how their inputs are considered and used. In the long run window dressing participation helps no one.
5. Placation: at this level stakeholders have some degree of influence although tokenism is still potentially involved. Simply including stakeholders in processes such as focus groups or oversight committees where they do not have power, or are trained not to exercise power, gives the appearance of stakeholder engagement without any of the benefits.
6. Partnership: at this level power is genuinely redistributed and the stakeholders work with the project team to achieve an outcome that is beneficial to all. Power-sharing may seem risky all but if the right stakeholders with a genuine interest in the outcome are encouraged to work with the technical delivery team to constructively enhance the project’s outcomes (which is implicit in a partnership) everyone potentially benefits.
7. Delegated power: In many aspects of projects and programs, particularly those associated with implementation, rollout, and/or organisational change, delegating management authority to key stakeholder groups has the potential to significantly improve outcomes. These groups do need support, training, and governance, but concepts such as self-managed work teams demonstrate the value of the model.
8. Stakeholder control: In one respect stakeholders do control projects and programs but this group tends to be a small management elite fulfilling roles such as sponsors, steering committees, etc. Genuine stakeholder control expands this narrow group to include many more affected stakeholders. Particularly social projects, where the purpose of the project is to benefit stakeholders, can demonstratively be improved by involving the people project disposed to help. But even technical projects can benefit from the wisdom of crowds[2].

In summary, the framework looks like this:

The biggest difference between the scenario discussed in the original paper and stakeholder engagement around projects and programs is the fact that different stakeholders very often need quite different engagement approaches to optimise project outcomes. Arnstein’s 1969 paper argued in favour of citizen participation as a single entity and the benefits progressing up the ladder towards its control. In a project situation it is probably more sensible to look at different groups of stakeholders and then assess where on the ladder you would like to see that group functioning. Some groups may only need relatively low levels of information to be adequately managed. Others may well contribute best in positions of control or at least where their advice is actively sought and used.

Do you think this framework is helpful in advancing conversations around stakeholder engagement in your project?

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[1] Arnstein, S.R.  AIP Journal July 1969 pp:216 – 223.  A Ladder of Citizen Participation.

[2] The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations, published in 2004, is a book written by James Surowiecki about the aggregation of information in groups, resulting in decisions that, he argues, are often better than could have been made by any single member of the group.

New on the Web #19

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:

• New Article: Data to Wisdom – Creating and Managing Knowledge
• WP updated: Root Cause Analysis

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.

Good Governance, Good Outcomes!

Good governance is focused on setting the ‘right’ rules and objectives for an organisation, management is about working within those rules to achieve the objectives. Prudent governors also require assurance that the rules are being followed and the objectives achieved (for more see the six functions of governance)

Within this governance framework, getting the ethics and culture of an organisation right comes before anything else – it has far more to do with people, and culture than it does with process and policing! But crafting or changing culture and the resultant behaviours is far from easy and requires a carefully crafted long term strategy supported from the very top of the organisation. The journey is difficult, but achievable, and can pay major dividends to the organisation concerned. One interesting example of this approach in practice is the implementation of effective major project management by the UK government.

The problems with megaprojects[1]

The challenges and issues associated with megaprojects are well known, we recently posted on one aspect of this in the reference case for management reserves. The source materials used in this post clearly show that UK government has been acutely aware of the issues for many years as does any review of the UK National Audit Office’s reports into failed government projects.  At the 2016 PGCS symposium in Canberra, Geraldine Barker, from the UK NAO offered an independent and authoritative overview of the UK perspective and experience from her review of the Major Projects Authority, on the approaches, challenges, and lessons to be learned in improving the performance of major projects at individual and portfolio levels. While there were still major issues, there had also been a number of welcome developments to address the issues including:

• Improvements to accountability with greater clarity about the roles of senior responsible owners;
• Investment by the Authority and departments to improve the capability of staff to deliver major projects, with departments reporting to us that they are seeing benefits from these initiatives;
• Increased assurance and recognition of the role that assurance plays in improving project delivery; and
• Initiatives to prevent departments from getting locked into solutions too early.

Amyas Morse, head of the National Audit Office, said in a report to the UK Parliament on 6 January 2016, “I acknowledge that a number of positive steps have been taken by the Authority and client departments. At the same time, I am concerned that a third of projects monitored by the Authority are red or amber-red and the overall picture of progress on project performance is opaque. More effort is needed if the success rate of project delivery is to improve”[2].

The major challenges identified in that report were to:

• Prevent departments making firm commitments on cost and timescales for delivery before their plans have been properly tested;
• Develop an effective mechanism whereby all major projects are prioritised according to strategic importance and capability is deployed to priority areas; and
• Put in place the systems and data which allow proper performance measurement.

The latest report from the Infrastructure and Projects Authority – IPA (formally the Major Projects Authority) has allowed the UK government to claim an improvement in its delivery of major projects, with the number of those at risk reducing from 44 to 38 in the past year.

The report says that there are 143 major projects on the Government Major Projects Portfolio (GMPP), worth £455.5bn and spread across 17 government departments.

The data shows a steady improvement in the way that government is delivering major projects:

• More than 60% of projects by whole-life cost are likely to be successfully delivered;
• Since last year’s report, the number of at risk projects has reduced from 44 to 38, which continues to be an improvement from 48 the previous year;

The data shows signs of steady improvement in the way government is delivering major projects. The question is how was this achieved?

The answer is ‘slowly’ looking from the outside there seem to be three parallel processes working together to change the culture of the UK civil service:

• The first is making project management ‘attractive’ to senior executives. Since 2000 the government has been working to develop the internal skills needed to allow the deployment of capable ‘Senior Responsible Owners’ (SRO) on all of its major projects including establishing a well-respected course for SROs. The Major Projects Leadership Academy was developed in 2012 (first graduates 2013) and is run in partnership with the Saïd Oxford Business School and Deloitte. The academy builds the skills of senior project leaders across government, making it easier to carry out complex projects effectively. In the future, no one will be able to lead a major government project without completing the academy programme.
• The second has been making the performance of its major projects public. This includes an ongoing challenge to acquire realistic and meaningful data on performance (still a challenge) and is most obvious in the annual report from the Major Projects Authority. Their fifth report is now available for downloading.
• Finally, skills development and robust challenges are put to departments to ensure adequate front end planning is completed before government funds are committed to a project.

This process is not quick and given the risky nature of major projects will never deliver a 100% success rate, but the steady change in attitudes and performance in the UK clearly show that ‘good governance’ backed by a sound multi-faceted strategy focused on the stakeholders engaged in the work will pay dividends. Proponents advocating for this type of improvement have many challenges to deal with, not the least of which is the fact that as data quality improves, the number of problems that will be visible increase – add the glare of publicity and this can be politically embarrassing!  However, as the UK reports show, persistence pays off.

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[1] For a definition of megaprojects see: https://mosaicprojects.wordpress.com/2017/06/09/differentiating-normal-complex-and-megaprojects/

[2] See: https://www.nao.org.uk/report/delivering-major-projects-in-government-a-briefing-for-the-committee-of-public-accounts/

 

Defining Project Success using Project Success Criteria

Everyone likes a successful project but the big question is what makes a project successful??  A good example is the Sydney Opera House; was the Sydney Opera House successful or not?

The project ran significantly over budget finished very late and was technically less than perfect; $millions are currently being spent rectifying many of the technical deficiencies in the building. But can anyone say Sydney Opera House is not one of the most recognised and therefore successful buildings in the world?[1]

Success is an ephemeral concept! Different people will have different perspectives and judge the success or failure project differently. Neither a project nor a program manager can control many of the factors that have made the Sydney Opera House worldwide icon but they can address the concept of success with their stakeholders and then work to deliver a successful outcome based on these discussions.

So what is success? There are probably three key elements, but these frequently create a paradox that requires a balanced approach to success. The three fundamental elements are:

• The Iron Triangle (Scope + Cost + Time)
• Benefits realised (or maximised)
• Satisfied stakeholders (but, when??)

One of the key paradox is a myopic focus on the Iron Triangle particularly time and cost can frequently destroy benefits and leave the stakeholders unhappy, but focusing on keeping stakeholders happy can frequently have detrimental effects on the Iron Triangle. There are no easy solutions to this problem[2].

In my view, the successful delivery of a project or program requires:

• Achieving the overall goal for the project;
• Delivering its objectives; and
• Meeting its success criteria.

But, to achieve success you need to define and agree the project goal, the project objectives, and the project success criteria with your key stakeholders with a view to achieving a combination of stakeholder satisfaction and value created. The goal and objectives frame the project’s work and direction. The success criteria frame how the objectives are achieved.

 

The Project Goal

Goals are high-level statements that provide the overall context defining what the project is trying to achieve. One project should have one goal (if there are multiple goals you are most likely looking at a program of work[3])!  For example:  Within 180 days, reduce the pollution in the rainwater runoff from a council tip by 98%.

The goal is a key statement in the Project Charter[4] and if the project is to be successful, all key stakeholders need to agree the goal.  The goal needs to be specific and should define the project in a way that focuses attention on the key outcomes required for overall success from a technical and strategic business perspective[5].

 

Project Objectives

The objectives are lower level statements that describe the specific, tangible products and deliverables that the project will create; each objective (and the overall goal) should be SMART[6]. For the runoff project the objectives may include:

• Develop wetlands to trap 99.8% of sediment
• Install channels to collect and direct the runoff
• Install screens remove floating debris
• Etc….. There will be a number of objectives……

Each objective requires defining and specifying with clear performance criteria so you know when it has been achieved. This may be done by the client or by the project team during the scope definition process. The performance criteria may be defined by a set of precise specifications that are specific and measurable or may be defined as a performance requirement with either:

• The external contractor to provide the specific details of how the objective will be achieved, or
• The internal project team to develop the details in consultation with the client

The defined objectives are the building blocks that facilitate the achievement of the goal and the creation of the benefits the organisation is expecting from the project[7]. The benefits need to be realised to create value.

 

Success criteria

Success criteria are different they measure what’s important to your stakeholders. Consequently, they are the standards by which the project will be judged at the end to decide whether or not it has been successful in the eyes of its stakeholders. As far as possible the stakeholders need to be satisfied; this includes having their expectations fulfilled and in general terms being pleased with both the journey and the outcome (in this respect scope, cost and/or time may be important).

Success criteria can be expressed in many different ways some examples include:

• Zero accidents / no environmental issues;
• No ‘bad press’ / good publicity received;
• Finalist in the project achievement awards;
• Plus the goal and all of the objectives achieved (yes – you still need to do the work).

For any project, the success criteria should be split between project management success criteria which of related to the professional aspects of running the project; plus project deliverable success criteria which are related to the performance and function of the deliverable.

Documenting the success criteria is important, it means you can get project stakeholders to sign up to them, and having them clearly recorded removes ambiguity about what you are setting out to do. The four basic steps to create useful success criteria are

1. Document and agree the criteria; each criteria should include:
   1. The name of success criteria,
   2. How it is going to be measured,
   3. How often it is going to be measured, and
   4. Who is responsible for the measurement.
2. Use continuous measurements where possible. For example, rather than ‘finish the project on time’ measure progress continually ‘no activity completes more than 5 days after its late finish date’.
3. Baseline today’s performance.
4. Track and report on your progress.

As with any performance indicators, the art is to select a few key measures that represent the wider picture if there are too many success criteria defined the impact will be severely reduced. For example, the effectiveness of meetings, communication, and stakeholder attitude could be measured scientifically using the ‘Index Value’ in the Stakeholder Circle[8] or pragmatically by measuring the number of open issues against a target (eg, no more than 5 high priority open issues).

 

Summary

Goals and objectives are the building blocks required to allow the realisation value from the project’s outputs; they are essential ingredients in a successful project but are insufficient on their own.  The role of success criteria is to direct the way work at the project is accomplished so as to meet stakeholder expectations, and to craft a perception of success in the stakeholder’s minds.

Project success is an amalgam of value created for the organisation and your stakeholders being satisfied with the journey and the outcome.  This concept of success may seem subjective, but it does not have to be. Successful organisations work to take the guesswork out of this process by defining what success looks like and agreeing these definitions with the key stakeholders, so they all know when the project has achieved it.

This means the key to stakeholders perceiving your project as successful lays in understanding the criteria they will measure success by, incorporating those measures into your project success criteria, and then working to achieve the criteria. But even this is not enough, to engage your stakeholders you need to communicate the criteria, communicate your progress and communicate your success at the end. For more on effective communication see: http://www.mosaicprojects.com.au/PM-Knowledge_Index.html#PPM07

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[1] For more on the success or failure of the Sydney Opera House see Avoiding the Successful Failure!:  http://www.mosaicprojects.com.au/Resources_Papers_046.html

[2] For more on paradox see: https://www.projectmanagement.com/blog-post/30669/The-Problem-With-Paradox

[3] For more on differentiating projects and programs see: http://www.mosaicprojects.com.au/WhitePapers/WP1002_Programs.pdf

[4] For more on the project charter see: http://www.mosaicprojects.com.au/WhitePapers/WP1019_Charter.pdf

[5] For more on project success see: http://www.mosaicprojects.com.au/Mag_Articles/N001_Achieving_Real_Project_Success.pdf

[6] SMART = Specific, Measurable, Attainable, Relevant and Time-framed.

[7] For more on linking objectives and benefits see: http://www.mosaicprojects.com.au/WhitePapers/WP1042_Outputs_Outcomes_Benefits.pdf

[8] The Stakeholder Circle® index value see: http://202.146.213.160/help-files/stakeholder-engagement-profile/#engagement-index