Beware the RIGID PMO

9 03 2009

John Ferry, Jacksonville FL

johnferryProject Management as a discipline has been around for quite a while. One of things that made me successful as a project manager was being able to apply the many tools and techniques that I have learned to the different projects that I have managed. As part of our project management training, we all learn that all projects are different, and that they each demand different efforts to make them successful. Those of us who have been doing this for a while have seen corporate America and the rest of the world begin to embrace project management because of the order that it can bring to the chaos. Successful projects don’t just happen by chance. They are successful because they are planned that way.

Recently, I have found that many corporate PMO’s are establishing rigid project management processes and methodologies in their quest for repeatable processes. (CMM Level certifications are an example of this.) They are attempting to “standardize” (another name for dictate and regulate) how project managers are to manage their projects. They dictate which documents must be created, what steps must be followed, and what audits are to take place, etc. Like most effective tools, the corporate culture tries to dictate how and when they should be used in an organization.

The problem with this approach is it forces project managers to use tools that have little or no value for the project they are being used on. I have discovered over the years,straightjacket1 that one methodology (or process) doesn’t fit all projects. That as a PM you have to be flexible and use the right method, documents, and tools for the project. Some PMO methodologies are so overbearing, that small simple projects become wasteful and time consuming. They perform wasted exercises and create unnecessary documentation, all to satisfy some internal audit criteria. My analogy… “like driving a nail with a sledgehammer.”, it just doesn’t make sense. A good “mature” PMO recognizes that projects come in all sizes and varying complexities, and that it’s appropriate to tailor methodologies and processes to fit the project. That doesn’t mean you toss the whole methodology out the window, but you use the “parts” of it that make sense. The rigid PMO’s inflict unnecessary hardship on their teams, create waste, and squash creativity and talent.

Given the state of the current economy, businesses today can’t afford this kind of waste. They have to operate “lean”. This means that the rigid inflexible PMO methodologies that create a “boatload” of documentation to satisfy some maturity model or internal audit criteria need to be revaluated, and it’s time to do the work (and only the work) that makes sense.

Project and Portfolio Management

3 03 2009

Today’s tough economic environment is bringing new challenges. And an absolute focus on performance. Investment decisions should be made with a complete understanding of the impact to cash flow, profitability, velocity, growth, and customer intimacy in your IT organization. Project and Portfolio Management can address these concerns Project and Portfolio Management addresses these concerns by adopting a combination of processes based on COBIT 4.1 and VAL IT management frameworks to ask the right questions.

In portfolio management we really want to know:

  • Are we doing the right things?
  • Are we realizing the benefits?

The answers will help guide us to approve the right mix of work to optimize contributions to strategic objectives while providing value, at affordable cost with an acceptable level of risk. And, focus our attention to the projects generating the most significant improvements in the five (and only five) essentials in business that matter: cash flow, profitability, velocity, growth, and customer intimacy.

We use project management when we really want to know:

  • Are we doing them the right way?
  • Are we getting them done well?

How effective and disciplined are my delivery and project management processes? Are we finding ways to continually boost the productivity of our project management teams? Does our organization have the capability to evaluate our initiatives in a systematic and objective manner?

Asking the right questions here is critical to success. Poor project and portfolio management practices can prevent even the best organization from performing in an optimal manner. Most of the real problems begin with execution in project management where the work is planned and managed. Since this is where most of the project activity originates and is recorded, it is a critical to measuring progress to plan and evaluating performance accurately. Without an effective and disciplined project management function unplanned work begins to overtake planned activity (see my prior post on Demand Management). Because intent is not communicated clearly to stakeholders and resources committed, a significant amount of risk can be introduced into every initiative undertaken. The results are inevitable and lead to:

  • Incomplete project definition leading to ongoing project extensions
  • Unclear work assignments, goals, objectives, and deliverables.
  • Non-value added essential work and unplanned activity ratios rise as more and more meetings and status reporting is required to communicate intent and progress.
  • Scope creep or frequently changing delivery targets
  • Budget overruns occur to meet the unplanned activity not accounted for
  • Missed deadlines on scheduled deliverables or slippage in cycle delivery occurs
  • Unusable new product or feature is created – expensive, costly rework is required
  • Failure to deliver on some elements of the project scope – focus is lost
  • Customer confidence and value is destroyed faster than it can be created

Now that we have met the enemy, what can be done? I plan to address some straight forward ways to improve fundamental blocking and tackling in project management practices in the coming weeks. Effective Portfolio management is built on this foundation, without getting this right you will only be left guessing at best when it comes time to make the right call.