Risks and Rewards Door #1
The risk of not bringing in a more disciplined approach to the management of projects and the rewards associated with this.
The best way to understand this approach would be to review some research:
The 2004 PriceWaterhouseCoopers Survey of 10,640 projects valued at $7.2 billion, across a broad range of industries, large and small found;
Only 2.5% of global businesses achieve 100% project success
Over 50% of global business projects fail.
The Chaos Survey by The Standish Group reports similar findings;
71% of all projects are either “challenged” (due to late delivery, being over-budget, or delivering less than required features), or “failed” and are cancelled prior to completion or the product developed is never used.
Their statistics have not effectively changed since 1994.
Business Improvement Architects research of over 750 global companies found:
The missing element is a culture where working effectively on projects is accepted as “just part of what we do.”
60% of Project Management Offices say that the organizational culture is not supportive of the PMO.
The major reason for project failure is that most organizations do not ensure that all projects they implement align with their organization’s corporate strategy.
Performance management systems do not take into account new reporting structures such as Matrix Management.
Few organizations clearly define and consistently use project success measures from one project to another and usually fail to capture and retain project knowledge.
What are the Risks of not bringing in a more disciplined approach to the management of projects, based on these research studies?
Risk of exceeding budgets.
Risk of wasting valuable resource time on non-customer and quality focused tasks.
Risk of not meeting Strategic Goals & Objectives set by the senior management team.
What are the Rewards of not bringing in a more disciplined approach to the management of projects, based on these research studies?
Reward of maintaining status quo.
Reward of continuing to improve based on past experiences and strategies.
Reward of missing key organizational strategies.
Reward of demotivated staff.
Reward of major retention issues.
Conclusion:
Risks seem high and the Rewards aren’t really the kind that organizations seek.
Risks and Rewards Door #2
The risk of bringing in a more disciplined approach to the management of projects and the rewards associated with this.
This door is more complex. Bringing in a disciplined approach to the management of projects is filled with risks, which are really challenges, butt the rewards are tangible.
The process of moving to a more disciplined approach includes many steps that are logical, yet when systematically implemented, help to create a positive impact on the organization, its customers and its staff. So if we turn the concept of risk into cChallenges, we can define a strategy to systematically manage these challenges.
This strategy, for the senior management team includes:
Understand what it is.
Understand your role in ensuring its success.
Understand the organizational limitations.
Understand how to structure the organization.
Understand the drivers and linkages to strategy.
Understand how to manage it.
Understand how to measure it.
Understand how to reward it.
Understand what it is
First, what it is not
It is not a function of the Information Technology or Systems department.
It is not the function of one person to drive and direct throughout the organization. This lesson is learned from quality, where many organizations selected a person to become a Quality Manager and drive quality throughout the organization. When that person left, so did quality.
It is not an isolated strategy, managed separately from other initiatives i.e.; quality, training, strategic development, etc.
It is:
The application of specific knowledge, processes and techniques to organizational strategies and quality initiatives in order to meet or exceed stakeholder needs and expectations.
Productive Project Culture Risks & Rewards Summary
Yes, there are risks to consider, for an organization, when moving into a truly productive project culture. However, yes, there are Rewards reaped by organizations. Part 2 of this article will identify the 7 characteristics of a productive project culture and provide some actions you can take in ensuring these are successfully realized.
About the Author
As President and CEO of Business Improvement Architects, Michael works with executives and senior managers around the world to help them improve operational effectiveness through strategic planning, leadership development, project management and quality management. He has been instrumental in helping his clients reduce waste and increase efficiencies and profits with his clear processes and quality approach.
For more information about this article, please contact bia™ at info@bia.ca.
Risks and Rewards Door #1The risk of not bringing in a more disciplined approach to the management of projects and the rewards associated with this.The best way to understand this approach would be to review some research:The 2004 PriceWaterhouseCoopers Survey of 10,640 projects valued at $7.2 billion, across a broad range of industries, large and small found;Only 2.5% of global businesses achieve 100% project successOver 50% of global business projects fail.The Chaos Survey by The Standish Group reports similar findings;71% of all projects are either “challenged” (due to late delivery, being over-budget, or delivering less than required features), or “failed” and are cancelled prior to completion or the product developed is never used.Their statistics have not effectively changed since 1994.Business Improvement Architects research of over 750 global companies found:The missing element is a culture where working effectively on projects is accepted as “just part of what we do.”60% of Project Management Offices say that the organizational culture is not supportive of the PMO.The major reason for project failure is that most organizations do not ensure that all projects they implement align with their organization’s corporate strategy.Performance management systems do not take into account new reporting structures such as Matrix Management.Few organizations clearly define and consistently use project success measures from one project to another and usually fail to capture and retain project knowledge.What are the Risks of not bringing in a more disciplined approach to the management of projects, based on these research studies?Risk of exceeding budgets.Risk of wasting valuable resource time on non-customer and quality focused tasks.Risk of not meeting Strategic Goals & Objectives set by the senior management team.What are the Rewards of not bringing in a more disciplined approach to the management of projects, based on these research studies?Reward of maintaining status quo.Reward of continuing to improve based on past experiences and strategies.Reward of missing key organizational strategies.Reward of demotivated staff.Reward of major retention issues.Conclusion:Risks seem high and the Rewards aren’t really the kind that organizations seek.Risks and Rewards Door #2The risk of bringing in a more disciplined approach to the management of projects and the rewards associated with this.This door is more complex. Bringing in a disciplined approach to the management of projects is filled with risks, which are really challenges, butt the rewards are tangible.The process of moving to a more disciplined approach includes many steps that are logical, yet when systematically implemented, help to create a positive impact on the organization, its customers and its staff. So if we turn the concept of risk into cChallenges, we can define a strategy to systematically manage these challenges.
This strategy, for the senior management team includes:
Understand what it is.
Understand your role in ensuring its success.
Understand the organizational limitations.
Understand how to structure the organization.
Understand the drivers and linkages to strategy.
Understand how to manage it.
Understand how to measure it.
Understand how to reward it.
Understand what it is
First, what it is not
It is not a function of the Information Technology or Systems department.
It is not the function of one person to drive and direct throughout the organization. This lesson is learned from quality, where many organizations selected a person to become a Quality Manager and drive quality throughout the organization. When that person left, so did quality.
It is not an isolated strategy, managed separately from other initiatives i.e.; quality, training, strategic development, etc.
It is:
The application of specific knowledge, processes and techniques to organizational strategies and quality initiatives in order to meet or exceed stakeholder needs and expectations.
Productive Project Culture Risks & Rewards Summary
Yes, there are risks to consider, for an organization, when moving into a truly productive project culture. However, yes, there are Rewards reaped by organizations. Part 2 of this article will identify the 7 characteristics of a productive project culture and provide some actions you can take in ensuring these are successfully realized.
About the Author
As President and CEO of Business Improvement Architects, Michael works with executives and senior managers around the world to help them improve operational effectiveness through strategic planning, leadership development, project management and quality management. He has been instrumental in helping his clients reduce waste and increase efficiencies and profits with his clear processes and quality approach.
For more information about this article, please contact bia™ at info@bia.ca.
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