Project or Operation?

Team leader presenting marketing plan on a white board to team members

A few weeks ago we held a course on Project Management Fundamentals. Every student introduced themselves; they were all seasoned professionals with 7 years of experience or more in their field. Justine worked for a manufacturing company. Kumar was a software developer. Ann deployed projects for a Cable TV provider. Carlos was a construction manager.

An interesting situation developed when we started discussing what constitutes a project. I asked the students for examples of the types of projects they deployed as part of their work, so I could tailor my stories. The examples were varied of course, as many initiatives can be considered a project. Kumar indicated that sometimes he needed to develop fixes for software bugs; Justine said that sometimes she had stations to install or replace in her manufacturing line. Ann mentioned she needed to plan Cable TV installations for her technicians.

I tried to understand Ann’s project constraints a bit better. Were the installations for new construction? For a group of existing customers? She seemed confused by the attention. The difficulty finally dawned on me when I asked what constituted the beginning and the end for her projects. She answered: “The first and the last day of the month”.

With a bit more discussion we realized that it was a misnomer to call her role a ‘project manager’, as her responsibility was an operation, not a project. Although she planned and assigned technicians and equipment for a whole month the effort never ended, it never ended. Similar to ‘payroll’ for example. She was astonished that neither she nor her management had realized this before. Her job planning, yes, but it never ended, which projects must.

Why is the differentiation important? Because one would optimize efforts that have a distinct beginning and end (projects) in a totally different way from efforts which are continuous and sustain the organization (operations). Everything from staffing to funding would be done considering different priorities and goals. Although Ann stayed in the class, I saw her on the last day signing on to a ‘logistics’ course.

A Project With China

Wrinkled Chinese flag on a dark background

The 21st century has brought a great increase in projects with companies in the growing economies of Brasil, Russia, India and China (for which Goldman Sachs coined the acronym of “BRIC” countries). There is no denying that, with the emphasis of multinationals in fulfilling the demands of those growing middle classes, many project managers can expect to perform projects with team members from those countries sooner or later.

A good friend recently was asked to go to Shenzhen to manage a project for his company’s Chinese business partner. As any good international traveler would do, my friend Fareed did as much research as possible before going to China. He read plenty of books on Chinese culture and customs; he got a Chinese cookbook; he even rented Chinese movies in Mandarin (with subtitles in English of course).

All this research yielded the following picture: the Chinese are a hard-working, collectivistic society. They are quite accepting of people in power and are highly contextual (which means that they take their cues from the situation more readily than from what is written).

I saw Fareed after his trip and asked him how the trip, and the project, had gone. “Great” he said “but instead of highly collectivistic I found everyone in China to be highly individualistic”. Based on his research, he had gone expecting people to act based on what was best for their group. Yet, everyone from the local builder, developer, driver, even the secretary took initiative and performed tasks depending on what was best for them, not necessarily their company. That came as a surprise.

We chatted about it at some length and finally arrived at the following conclusions, which we will apply to our future projects: (1) although a highly collectivistic culture in the past, given recent economic and other liberalization, Chinese culture may be changing from highly to moderately collectivistic. Maybe some day they will become an individualistic culture, much like the American or the Australian. And (2) whatever ideas you may have about another culture, even when based on research or experience, be ready to toss them out the window, as cultures are alive and constantly changing.

To RAID or not to RAID

Management spreadsheet on a laptop

A few weeks ago I was assisting a project manager with a troubled project. We reviewed the documentation from the beginning, starting with the usual suspects: project charter, WBS, schedule. They all seemed fairly straightforward and understandable. Once we got to his status reporting though, confusion started. This project’s status reports were spreadsheets about 10 pages long. Every week the team was only able to discuss only about 3 pages’ worth of information, and they were mostly risks.

“Why is this so long, what’s in it?” I asked him. He answered that it was his RAID Log, which he used to run Status Meetings. He wanted to be certain not to miss anything, so he was careful to include every item related to the project and classify it as R (risk); A (action); I (issue) or D (dependency) in this giant spreadsheet. As the first section was ‘Risks’ they were certainly addressed. So most of the discussion in his weekly status meeting was about events that had not even happened.

To be sure, used appropriately, a ‘RAID’ log is a great tool to help Project Managers keep projects on track. It lists, in one easily accessible place, almost any present or future turn of events that could impact their project. A few difficulties can arise though, which diminish the usefulness of a RAID log.

Frequency
In an average project, risks may not need review each week, but in a high-risk project the risk log may need to be reviewed more often even than action items. Each project has a different makeup, which should dictate the frequency with which each category in a RAID log needs to be considered.

Importance
Four categories (R,A,I,D) can generate many items. That is why in each category there should be a way to prioritize which the team, in fact, follows. This means that high priority issues or actions can be discussed in the status review meeting, whereas low priority items can be pursued by the project manager after the meeting, and as time permits.

Management Approach
Finally, the items in each of these categories require a different follow-up approach. For example: ‘Issues’ are problems. Small or large, they are discrepancies or disagreements which have taken place within the project and must be resolved. They may require conflict handling, negotiations or management involvement. On the other hand, ‘Risks’ are events which may or may not occur. Arriving at risk mitigation requires brainstorming alternative approaches, yes, but may never even have to be deployed.

For these reasons, think carefully about keeping one RAID log, or keeping separate Risk, Issue, Action and Dependency logs to be monitored at different times.

The PMO Blues

Corporate person holding a couple of documents

A good friend who shall remain anonymous deploys projects for a large IT organization. Recently, as often happens, our conversation strayed into “work” topics. This time the subject became her Program Management Office, or PMO, with which she was greatly annoyed.

The volumes and volumes of reporting and paper my PMO demands have become completely unwieldy ”… “What’s worse is that, after all the hours the different measurements, trackers, logs and reports take nobody looks at them, much less management!” It appears Line of Business managers were now asking for reports additional to PMO reporting so they would be relevant, thereby increasing time demands on project managers.

It was not always like this. When the PMO first came into being in that company, about a decade ago, it was well received and immediately successful. Projects back then were just “stuff that needed doing”. No standards, no templates, no regular reports. Some project managers were more skillful than others, and they got better promotions. But with the PMO, all projects began to be more successful. Common reporting began. Tracking progress began. Unsuccessful projects were reshaped or cancelled. A few years later unfortunately, PMO demands had snowballed , and many new rules for projects had questionable value.

Last year, for example, their PMO had issued the mandate that the time units for all projects had to be “days”. Any project artifacts not in “days”, had to be edited and re-published using “days”. Every estimate, every schedule, going back a year. The reason was that the PMO felt it was pivotal to link all project schedules such that they could be rolled-up into one grand, “master schedule” for the whole company. My friend was aghast. “Hundreds of [obviously unpaid] hours required of project managers to retrofit project documentation, and for what?” … “Show me a single management decision that was made or changed from rolling up these collective schedules. Does any manager even look at these rolled-up figures…? She had a point.

So it is critical that management in our PMOs remain vigilant. It is important that they stay relevant and engaged, so they don’t take the PMO in questionable directions. PMOs are a natural source of change in the organization. If they cannot effectively introduce important changes, who will? Here are a few recommendations for PMO management:

Identify And Rank Problem Areas

The PMO and its management should be able to articulate at any given point which are the company’s pain points they are solving. What areas in their projects need improvement? What is their ranking? Is it profitability? Is it resource utilization? Then introduce new changes slowly, careful of correlating them with expected business benefits everyone (or at least senior management) considers strategic .

Seek Feedback From Experienced PMs

More managers could take advantage of the knowledge their more experienced resources have. Who better to evaluate what works or does not work in projects than the people who have been deploying them for customers, for years? All too often a good solution has been crafted by those in the front lines, but the problem remains unresolved because no one has asked those with first-hand knowledge what a good approach might be.

Retire Tools That Do Not Work

Finally, PMO management needs to be courageous enough to alter, or retire altogether, tools that are not producing expected business benefits. Maybe the tools take too long to deploy. Maybe they place additional hours of burden on project managers. Implementing a project is tricky enough, so let us try to not give project managers, additionally, the PMO Blues.

Agile Reporting From Waterfalls

A diagram on agile methodology concept

Quite a few customers are jumping on the ‘Agile’ bandwagon these days, choosing an Agile methodology for specific projects, or for repetitive releases of their product. A challenge they are facing is how to manage and report Agile projects when the processes and templates provided by their PMO have been developed for Waterfall projects. And of course, that content is what their stakeholders are used to receiving and discussing.

In Waterfall projects there often are Status Reports which list the tasks in the current work packages and their status. The tasks come from an agreed, project-wide Work Breakdown Structure.

In an Agile Scrum, there is no previously broken down, far-reaching Work Breakdown Structure. The team works from a ‘Product Backlog’, or prioritized list of functionality, which they have agreed with the product owner. They then commit to deliver a certain portion of functionality during a 30-day Sprint. Since the team organizes itself on how to deliver this functionality, and checkpoints daily on their progress and problems, the content of the work is very fluid. They cannot commit in advance to finishing this or that task in this or that timeframe. All they can commit is to deliver finished, working functions by the end of the 30 days. At the end of the Sprint, a “Sprint Review” takes place. So how could one issue weekly status reports, when Scrum offers no Work Breakdown Structure? Just the daily checkpoints and the review of the Scrum at the end of the 30 days?

I am sure there are a variety of creative workarounds Project Managers (ie, Scrum Masters) are using. One of the more successful approaches I have seen entails using the ‘Product Backlog’ as the basis for a status report. The Scrum Master can list the requirements or functionality in the Product Backlog as if they were work packages. Then, they discuss how close to completion these various functionality items are. Sometimes there will be a requirement in the Product Backlog which is not easy to visualize as a work item, such as “User Friendly Interface”. In this case, verbs can be added to give the stakeholders an idea of what the project team is doing, such as “Test Interface with 4 different types of users”. This ‘hybrid reporting’ will then allow the Scrum Master to perform another very important responsibility: protect their project team from distractions and interruptions during the Sprint.

The Pareto Thing

Pareto principle illustration

The past few weeks have been quite busy helping a client prepare for an arbitration between a project contractor and the management of a troubled project. An arbitration is less severe than a lawsuit, in that the parties in disagreement choose an ‘arbitrator’ who is well qualified in the industry, to decide who is right about which claim. They then agree to abide by that decision. Much cheaper than a lawsuit, apparently.

We are reviewing the contract, deliverables, deadlines etc. on a given section of the work, when I notice the monetary amount in that section does not seem very large. Diplomatically, I suggest we do a “Pareto Analysis”, and prioritize the preparation of the larger items.

Pareto Analysis (also known as “the 80/20 rule”), refers to the analysis of the Italian economist Vilfredo Pareto, where he observed that 80% of land in Italy was owned by 20% of the population. More recently, it has been applied to many more uses: what 20% of the effort would contribute to 80% of the improvement; which 20% of customers bring 80% of your business.

“Oh yes” said my customer, “let’s do the Pareto thing”. So instead of a small work item, we analyze and document an item which -by itself- is more than half of the total amount in dispute.

Pareto analysis is one of the first tools the project manager should reach for, suggesting to us which 20% (ie, small amount) , if addressed, would bring us the 80% benefit (ie, large amount). It can help us prioritize change requests. It can help us organize the resolution of problem log items. If funding has shrunk, it suggests which work to keep in scope; which to de-scope.

Even in Agile Scrums, Pareto Analysis can bring clarity to the product owner about which high priority work to deploy in the next Sprint. It can be applied to large items -such as which budgets to analyze first- and to small items -which phone calls to return first-. So do use it extensively.

As to my customer’s arbitration: they lost 2 items and the contractor won 2 items. The contractor’s items were about 25% of the amount in dispute, my customer’s items were 75% of the amount. The contractor just did not present a very compelling argument. He must have run out of time. For my customer, the Pareto thing paid off handsomely.

Cultures In The Project

Group of multiracial individuals holding a sign with the word multicultural

In this ever shrinking business world, it is not uncommon to deploy a project with colleagues from different countries, with cultures different from our own. We can even implement a project in our own country and easily have stakeholders, say, from India, China, Mexico, Canada. Each one will bring different points of view, dependent on their upbringing and experiences (read ‘culture’). So it is a great business advantage to have project managers who are able to navigate these different cultures, and not end up in the difficulties Mrs. Muddle finds herself in.

Mrs. Muddle is a very capable technical project manager from Ohio, where she still lives. She has a science degree from a major US university and, because all her projects finish on time and on-budget, Management has chosen her to lead the expansion of key manufacturing equipment in their US and in their Asian (South Korea and Vietnam) locations.

After a kick-off meeting in person and a scope definition workshop, Mrs Muddle wanted to publish some ground rules for the ongoing status meetings. She had noticed that the Asian project managers −Mr. Moon-ki from South Korea and Mr. Chuyen from Vietnam− brought to the meetings no less than half a dozen colleagues. She therefore issued the rule that, henceforth, only the project managers should attend the status meetings.

Her edict was met with shock and discomfort in the Asian teams. Mr. Moon-ki informed Mrs. Muddle that he absolutely did not have the delegation from his management team to commit the company to any decision whatsoever. Mr. Chuyen made very clear that since the project required tasks from finance, engineering, IT and other disciplines, he could not agree to anything on their behalf. Mrs. Muddle tried to make her colleagues see reason, indicating that it was more efficient to deal with just one person than casts of thousands. She was confused as to why such a reasonable rule would make her colleagues angry.

What she failed to recognize is that South Korean and Vietnamese cultures are highly collectivistic, and that these gentlemen were unwilling to make any moves that would upset the peace of “the group”. In some societies, like the USA and Canada, being “individualistic” is a desirable trait. But in many parts of the world, the interests of “the group” do take precedence over the needs of “the individual”. Mrs. Muddle was astonished when her manager called her. Seems like they needed to schedule an apology meeting with the Asian subsidiaries…

Where Can a Project Manager Go From Here?

Smiling corporate workers standing beside a window

As inevitably happens at the beginning of a new year, with all the thoughts about resolutions, a few colleagues and acquaintances have been examining their jobs and careers.

Some are considering entirely new fields, like the lady who is considering leaving her IT job to open a hip Bakery because bread has always been her passion. Or the chap who is thinking about turning his corporate strategy expertise into strategy for a non-profit organization. While I was considering these various cases, along came a friend with her own dilemma. Let’s call her ‘Maria’.

Maria is the office manager for a small business and, as is often the case with small businesses, did so much more than just managing the office. She fixed problems with unhappy customers. She coordinated travel schedules. She orchestrated salesmen’s (and equipment) participation in trade shows. She even oversaw the installation of their first automated payroll system.

A few weeks ago Maria mentioned that there was an opening for ‘Event Planning Coordinator’ which she considered her dream job. Lots of travel and interesting events of all kinds. No way would they consider an Office Manager for that position, she thought.

I told her in truth she was not an Office Manager, but a Project Manager. And events were just a different flavor of project: They had a distinct beginning and an end; they required her to stick to a budget; they meant coordination of resources; often they needed change management.

Maria saw the parallels too, and filled her job application describing her projects as events. She was complimented for being such a well-rounded candidate (after coordinating a payroll migration, a trade show in Las Vegas should be easy!) and got the job.

So really, Project Managers can be successful in any field that requires the deployment of limited resources for a specific end, with a prescribed amount of time and money. Including not-so-obvious fields such as Cruise Director, Wedding Planner and Disaster Relief Coordinator. Now, I wonder if I can come up with parallels between managing projects and a Bakery…

‘Agile’ or ‘Waterfall’ ?

agile methodology

A few days ago, before the start of a meeting, a couple of developers where discussing ‘Agile’ project management versus the more traditional ‘Waterfall’ project planning.

A ‘Waterfall’ approach, you may recall, is the type of project that flows sequentially from stage to stage, much like a waterfall. It came from, and was heavily influenced by, the Manufacturing industry. The names of the stages vary, but roughly include: Proof-of-concept -> Initiation -> Requirements -> Design -> Implementation -> Testing -> Go Live (& Turn over to Operations). Although it does allow for change requests, it is definitely quite structured in progressing from stage to stage.

The ‘Agile’ approach on the other hand, came into being for software development, which often is non-linear, reactive, and has as an objective to deploy useful items very quickly. In an Agile project, the “product owner” decides which are the highest priority items to be included in the next iteration. The entire big picture, or thorough system requirements, may not be fully known . What is known, is that these high-priority features must be developed now. So the team delivers these items, hopefully with great quality control, and the next iteration is prepared after that.

‘Waterfall man’ was extolling the virtues of arriving at consensus on project scope from the beginning; agreeing timeline and costs; carefully tracking progress, then introducing change requests whose merit had been approved by all. ‘Agile man’, on the other hand, was calling him a dreamer, saying that such a staid and rigid approach was completely last century. That 21st Century projects need to deliver much more quickly than stodgy Waterfall projects could ever manage to.

I’ll have to say that both of these guys were making really valid points. If I am able, as a project manager, to lead stakeholders to consensus on features, priorities, total cost, total timeline, etc, doesn’t that yield a better price/performance project than deploying it ‘piecemeal’? If I have a good, decisive Executive Sponsor, who is able to map the project’s scope to company strategy, won’t that lead me to a successful and relevant implementation?

On the other hand, if my project deploys features before my competition does, and I get more customers as a result of small but important changes, doesn’t that trump the time required for sequential project planning?

Surely there is room for both methods then. If I can lead stakeholders to agree on crisp, prioritized scope items I should use the orderly “Waterfall”; I should deploy a project with the most requirements for the least effort. But if all we know is that there are critical features that must be deployed in the next 3 weeks −or something terrible will happen− then I should organize an Agile “Scrum”. It might be another case of that old saying: the right tool for the right job

Can You Exit Stage Left?

One of our recent projects involved work to be done on a short, 3-month deadline. According to the project leadership, everything which denoted good project management practices had been performed.

The work was scoped, fine-tuned, and broken down into work packages. The work packages were then assigned resources and budget. Budgets and timeframes were confirmed with the actual performers of the work. Inspections and progress tracking were built into the schedule. Planning went on and on. By all counts, the project should have gone smoothly.

In hindsight, the first sign of trouble should have been the payments. The contractor performing the critical “Stage 1” in month 1, had agreed and signed a contract for milestone payment. Yet he approached management every week with reasons why he needed an advance, or needed management to cover certain expenses. As a sign of goodwill, and given the tight deadlines, management approved the payments. They figured these interim amounts would just be subtracted from the final milestone payment, so all would be well.

Soon, it was quite impossible to correlate invoices with actual progress achieved on the different work items. At the 1-month milestone review, the contractor said items were 90% complete, whereas the customer’s tester rated the progress as much lower.

Management became hugely concerned. Not only was the critical first stage not been finished in month 1, there was no agreement on how much work was actually completed. They decided it was best to pay the contractor for work performed and go with another, more experienced contractor for the remainder of Stage 1. So Management went back to the contract, to see what clause to invoke to terminate this sub-standard contractor.

To their great consternation, the agreement only included termination for breaching the contract, not “termination for convenience”. Otherwise, there was a clause for dispute resolution, which included an outside mediation group. A great battle ensued, where the contractor did not accept they were in breach of the contract. Their position was that they had had a few delays, but would remediate all incomplete items. If not allowed, they would sue Management for the entire value of the contract. The Management team found this stance unacceptable, and hired another contractor to finish Stage 1, since they had time pressures.

To this day, that contractor and that management team are mired in submitting paperwork to the dispute resolution mediators. The contractor claims he is owed the entire value of the contract. The management maintains that those interim payments made to the contractor are equivalent to the incomplete work in Stage 1, and not another cent will be forthcoming. So the inspections, submissions, and document reviews continue with the dispute resolution group.

In summary, include in your contractor agreements a clause on “termination for convenience”, whereby you can pay them for work performed up to a certain point, and then part ways without further explanation. A point may come in the project where you have to be able to -as they say in the performing arts- exit stage left ….