Project management mainstays

Technology is only as good as the people who use it. Project management programs are no exception. Make sure you have the basics covered before considering software solutions.

By Jacques Godbout, CMA

People are sometimes so impressed with technology that they are tempted to upgrade their systems with each new function that is added. But as systems and software programs become more and more complex, many users are only able to use a small fraction of what the programs offer. For instance, most users use only 10% to 20% of the average program’s capacity. The same is true of project management tools.

To fully understand the issue, let’s consider a hypothetical situation. Mr. X is the new vice-president of technology for the financial firm ABC Inc. His team consists of about 20 individuals, from programmers to project managers. To determine the added value of technology for the firm, he decided to assess the level of satisfaction with the delivery of IT projects and the quality of services offered by his department.

To his great surprise, he learned that IT projects didn’t have a great track record. Projects were often behind schedule, triggering many cost overruns and poor quality delivery. Moreover, IT had a reputation within the firm of not meeting its commitments or being overloaded. Its project management ineffici-ency was clear. The organization had no project management tool in place. He concluded that although his project managers had the necessary technical knowledge, they had a lot of difficulty managing their projects properly.

Mr. X decided to solve the problem by acquiring a project management tool, including a number of training sessions, for all his project managers. A few months later, he was surprised to see that the situation hadn’t really improved. He then decided to farm out the management of strategic projects to external resources to get better results.

This has happened in many organizations. Mr. X could have done this differently if he had truly understood the project management and skills/competencies development issues.

Management tools

The most frequent mistake companies make once they decide to improve their project management performance is to buy a software tool and then adapt their business processes to the software’s design. They invest heavily in the software and training, hoping to gain better control of their projects and reap the benefits, but it continues to elude them.

Project management tools and techniques can be organized into five process groups (Figure 1), as described by the Project Management Institute (PMI1). This organization is a world-renowned project management promoter. It has even developed project management standards, outlined in the Project Management Book of Knowledge (PMBOK), which covers the full range of project management processes and skills/competencies and is used by 100,000 managers worldwide.

The initiating process involves recognizing the need for and relevance of undertaking a project within an organization. Since projects require investments and tradeoffs in the use of an organization’s resources (cash flow, and financial, human and material resources) for a successful outcome, it’s paramount to select projects that best meet the organization’s strategic directions. In the initiation phase, needs, issues and business opportunities associated with the project are identified and a project brief is produced by defining execution scenarios, implementation costs and anticipated benefits. Management uses various financial analytical tools (e.g. cost-benefit analysis, payback period and internal rate of return) to select projects in keeping with current corporate policies.

The planning process is also called the start-up phase. It’s vital to the success of a project and involves six essential steps:

1. Review project deliverables in detail and break down project activities into phases, activities and deliverables — producing what is called a work breakdown structure (WBS).
2. Identifying key activities that will affect the duration of the project, based on the organization’s available resources.
3. Set up an organizational structure for the project, specifying roles and responsibilities for management, stakeholders and the project team.
4. Estimate resources and expenses for all project activities including human, physical and financial resources.
5. Set the final project schedule, taking into consideration issues such as the quality of the product to be delivered, available budgets, and a schedule based on organizational constraints.
6. Assess project risks and define preventive measures to minimize risks for the organization.

Solid planning like this allows you to direct the execution of a project, rather than always responding to outside forces.

One key to success in project execution is coordinating and motivating the project team. This is the controlling process and is the responsibility of the project leader. He or she needs to know how to apply various management styles to promote cohesion among team members, in addition to identifying the most effective communication, conflict resolution and quality control mechanisms for the group.

The execution process involves managing all change during the course of a project, including changes to project objectives, product specifications, the project schedule, costs, and the quality of deliverables — and tracking project activities to flag where it deviates from the original plan.

The closing process includes all activities required to bring a project to a successful conclusion. The final product is transferred to operations, while supplier contracts and project budgets are closed and documents generated by the project are filed away.

Leadership skills

The skills/competencies diagram in Figure 2 demonstrates that a successful project must take into consideration impacts and issues for the rest of the organization. Managing a project requires a project leader with an understanding of the eight types of skills and competencies.

Project leaders must have a thorough understanding of project objectives and how they relate to the organization’s strategic directions. They are required to define and manage business needs throughout the duration of the project. Frequent risk analyses are necessary to develop appropriate mitigation measures for risks with a significant impact on the organization. Project leaders have to define and manage quality throughout the project to meet client expectations, in addition to determining human resource requirements and managing those requirements. They have to know how to develop and manage project planning and costs using project management techniques. They also have to communicate effectively with senior management, managers, and the project team. Finally, they need to be familiar with supply and contract management techniques.

When you see the relevance of the project management process and the skills and competencies required of project managers, it becomes clear that project management isn’t just a question of acquiring a tool. Low-end project management programs (under US$1,000) cover only the five project management processes. Few software programs offer solutions for managing the eight skills and competencies. Bear in mind that the more complex the project management software (the number of functions it integrates, including the organization’s project portfolio [strategic vision], the project management processes, and project manager skills and competencies), the more skilled personnel have to be to use the software, and, most important, the more costly it is for the organization.

Figure 3 illustrates the evolution of a project manager’s skills and competencies. Project management tools and techniques play an important role in the learning curve. However, it’s also clear that they are not the only ingredient for solid project management. Personality (e.g. leadership, intuition, sensitivity), management and decision-making skills, and especially practical experience are key to ensuring optimal delivery.

Let’s go back now to our original scenario. Since project management is vital for ABC Inc., Mr. X could have implemented an approach covering all the dimensions we have discussed by working on the development of the team players and not simply the project management tool. He would have then probably been more successful.

Solutions and means

For an organization’s approach to project management to evolve and become effective and profitable, the organization has to work through a series of steps:

• Understand the corporate culture and the extent to which project management has been integrated within the organization;
• Determine management’s project management objectives;
• Identify existing project management strengths and weaknesses, and hence the greatest issues for the organization;
• Identify the most realistic and tangible outcomes in the short and medium term by understanding individuals in your organization, organizational needs, and tools and technical requirements for success;
• Select the right tools, ones you know can be adapted to your business context and readily integrated into your organization’s internal processes;
• Implement tools, techniques and methods, with an eye on their simplicity and adaptability;
• Put in place coaching and support mechanisms for project leaders; and
• Develop internal expertise through continuous education in all aspects of management, including skills such as leadership, creativity, negotiating, motivational techniques, and negotiating techniques.

Organizations that succeed in implementing efficient project management are generally successful regardless of the software they use. An accountant will never be a better accountant because of the software he or she employs. The same principle applies to project management.

According to a study performed by Athabasca University2 in 2001 involving 3,000 executives and managers, 48% confirmed that the project management tools, techniques and methods within their organizations were inadequate. Project management knowledge and principles will always be the foundation of a solid and progressive structure. Successful projects are a result of the development of internal expertise and competencies married with effective project management tools.

Jacques Godbout (jacques.godbout@siriusconseils.qc.ca), CMA, Adm. A., is vice-president, finance and administration, for Sirius Services Consulting.

1 Source: PMI-Montréal; www.pmimontreal.org

2 http://www.athabascau.ca/mba/pdf/Selling%20PM.pdf

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