Project Management e
Pubblica Amministrazione
Roma, 13-11-2008
Luiss B. S. - Aula Magna
Viale Pola, 12
Russell D. ArchibaldPhD (Hon), MSc, Fellow PMI & APM/IPMA, PMP
Il Project Management a supporto della Pubblica Amministrazione
Stato dell'arte a livello internazionale
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 2
Presentation Objectives:
To provide a road map to Ministers and PA senior executives for achieving the full power of project management.
To help PM professionals show their senior managers where the development of project management should be going.
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 3
What You Can Expect:
Verification
Clarification
Revelation!
70%
20%
10% (I hope!)
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 4
Presentation Outline
1. Strategic Project Management
2. Integrated Project Portfolio Management
3. The Three Basic Project Management Concepts
1. Key Integrative Roles
2. Integrated and Predictive Project Planning and Control Systems
3. Project Teams
4. Conclusion
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 5
PM State of the Art Today
PM principles and practices are sufficiently known and accepted today so that senior executives can request or demand that their staffs apply and actually use them.
This paper presents a set of 33 PM demands that can be achieved today with reasonable effort.
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Summary of Demands
PM Policies: 3
Strategic PM: 9
Operational PM: 5
Operational PM Planning and Control: 8
Project Teams: 5
PM Improvement: 3
Total Demands: 33
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Minister DemandsTo Unleash Full PM Power:
3 PM policy demands:1. Project portfolio management/PPM
must fully support the agency‟s mission & strategies.
2. Coherent PPM processes must exist & be fully understood.
3. PPM processes & tools must be fully integrated.
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 8
Part 1. Strategic Project Management
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Strategic management of growth requires:
A vision of the future.
Consensus and commitment.
Documentation of key objectives & strategies.
Execution of specific projects to achieve the objectives.
Strategic Management of Project Portfolios.
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The Hierarchy of Objectives and Strategies
Objectives are descriptions of where we want to go.
Strategies are statements of how we are going to get there.
Strategies are carried out and objectives are reached through
Execution of projects.
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Project-Driven versus Project-Dependent Organizations
Project-driven: gain or deliver all or most benefits through delivering projects
Design/construction contractors
Government transportation agencies (air/water/rail/road/tunnel)
NASA, Other
Project-dependent: gain most benefits through production or on-going services, but grow through projects
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Objectives of Strategic Project Management
1. To assure that each project supports higher level strategies and objectives and contains acceptable risks:
Competitive, technical, cost, schedule
2. To plan, control and execute each project with all other projects so each will meet its strategic objectives:
Specified results on time and within budget
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Strategic
PM Demands
1. Every project must clearly support an approved corporate strategic objective.
2. Each project‟s risks must be evaluated and proactively managed using currently available methods and systems.
3. All projects must be evaluated, prioritized and approved using the same corporate criteria.
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Part 2.Project Portfolio Management
Projects are investments.
They must be managed like investments: on a portfolio basis.
„Multi-project” and “program management” are still useful but no longer adequate.
“Project Portfolio Steering Group.”
Strategic
Objective
1
Operational
Strategy 1.3
Operational
Strategy 1.2
Operational
Strategy 1.1
Project 1.1.3
Project 1.1.2
Project 1.1.1
Project 1.2.2
Project 1.2.1
Project 1.3.3
Project 1.3.2
Project 1.3.1
Program 1.1
Project Portfolio for Strategic Objective 1
Portfolio vs Multi-Project Mgt.Dye & Pennypacker, PMI 2000
Multi-Project Management
Project Portfolio Management
Purpose Resource allocation
Focus Tactical
Planning Emphasis
Short-term
(day to day)
Responsibility Project/
Resource mgrs.
Portfolio vs Multi-Project Mgt.Dye & Pennypacker, PMI 2000
Multi-Project Management
Project Portfolio Management
Purpose Resource allocation
Proj. selection & prioritization
Focus Tactical Strategic
Planning Emphasis
Short-term
(day to day)
Long/medium term (year/qtr)
Responsibility Project/
Resource mgrs.
Executive/
senior mgt.
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 19
The Project Portfolio Management Process: 12 Steps
1. Define the project portfolios required.
2. Define project categories/types.
3. Identify and group projects by type
within each portfolio.
4. Validate each project with strategic
objectives.
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The Project Portfolio Management Process Steps (cont‟d)
5. Prioritize projects within programs and portfolios.
6. Develop Project Portfolio Master Schedules (Operational PM.)
7. Establish/maintain key resources data bank.
8. Allocate resources to programs & projects.
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The Project Portfolio Management Process Steps (cont‟d)
9. Compare financial needs with availability.
10. Decide how to handle shortfalls and approve list of funded projects.
11. Plan, authorize and manage each project using the PM Process (Operational PM.)
12. Periodically re-prioritize, re-allocate resources and re-schedule all projects.
All steps except 6 and 11 are Strategic PM!)
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The Project Portfolio Management Process is Dynamic
A dynamic decision process.
The list of active projects is constantly updated and revised.
New projects are evaluated, selected, and prioritized.
Existing projects may be accelerated, cancelled, or de-prioritized.
Resources are allocated and re-allocated to the active projects. Cooper et al:
Portfolio Management for New Products, 1998
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Project Categories Based on End Results
1. Aerospace/Defense
2. Business & Organizational Change
3. Communication Systems
4. Events
5. Facilities
6. Information Systems
7. International Development
8. Media & Entertainment
9. Product/Service Development
10. Research & Dev.
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Hierarchical and Multi-Dimensional
Category level
1 2 3 4
Major category
Sub-category 2
Sub-category 3
Sub-category 4
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Example:Category 5. Facilities Projects
5.1 Facility decommissioning
5.2 Facility demolition
5.3 Facility maintenance & modification
5.4 Facility design/procure/construct5.4.1 Civil 5.4.2 Energy 5.4.3 Environmental 5.4.4 Industrial 5.4.5 Commercial 5.4.6 Residential 5.4.7 Ships 5.4.8 Other:
5.5 Other: ?
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 26
The Operational Project ManagementProcess
For each project type/category the PM process:
Defines the project life cycle.
Provides guidelines for risk analysis, planning and control.
Specifies the project management information systems and tools to be used.
Specifies the planning, authorizing, controlling and reporting methods and documents to be used.
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The Operational Project ManagementProcess (cont‟d)
Identifies the key roles and defines responsibilities and authority for project and functional management.
Specifies escalation procedures for un-resolved issues.
Format: flow chart with narrative descriptions and references.
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Strategic
PM Demands:
4. The agency‟s PPM and PM
management processes must be documented in a coherent, easily understood manner.
5. All projects must be managed within their specific, defined portfolios and categories.
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Part 3. Three Basic PM Concepts
1. Assignment of integrative responsibilities.
2. Application of integrative and predictive project planning and control systems.
3. Integrated project team-working.
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1. The Key Integrative Roles
Executive level The General Manager: Minister Level
Project Portfolio Steering Group
The Project Sponsor
Multi-Project Level Manager (VP, Director, etc.) of PM
Multi-project or Program Manager
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The Key Integrative Roles (cont‟d)
Project Level The Project Manager
Functional/Project Contributor Level (Internal and External) Department Managers
Functional Project Leaders
Work Package/Task Leaders
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General Manager‟s PM Role
Link the project portfolio(s) to the overall organizational strategies.
Oversee the overall PM process.
Monitor integration of the PM process with all other aspects of the organization.
Ensure timely availability of money, people and other resources needed for all authorized projects.
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Project Portfolio Steering Group
Approve design of the project portfolio management (PPM) process.
Operate the 12-step PPM process to: Integrate projects with strategies.
Establish & revise project priorities.
Approve new projects & re-prioritize all.
Communicate decisions to & through project sponsors.
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Project Portfolio Steering Group (cont‟d)
Seek additional resources when needed to support approved projects.
Recommend improvements to the process and to the project management capabilities.
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The Project Sponsor‟s Role
Integrate ongoing strategic direction of his/her assigned project(s) with ongoing organization operations.
Provide this direction to/through the project manager.
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Strategic
PM Demands:
6. PM roles must be clearly assigned to qualified people.
7. Minister‟s (or Deputy‟s) PM role must be understood and accepted.
8. PPM Steering Group must be appointed for each project portfolio.
9. Project Sponsors must be appointed and indoctrinated for major projects.
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Manager of Project Management
Integrates work on all projects within the portfolio(s).
Integrates and directs development and use of project management methods and tools on all projects.
Manages the project management “home” (Project Management Office/PMO).
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Operational
PM Demands:
1. Experienced Manager of PM must be appointed.
2. PM home/PMO must be established.3. Project Managers must be given proper
training.
4. PMs must respect functional lines of authority.
5. Functional Managers must respect project lines of authority.
Sponsor of Project "A"
Manager of
Project
Management
Functional
Department
Manager
Project Manager
of Project "A"
Project
Specialist
Staff
Functional
Project Leader
Work Package
Leader
Work Package
Leader
Individual
Contributors
How
Who
How
Well
Other
Functional
Departments
What
When
How Much
Project Planning
and Control
General Manager
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 40
Project Stakeholders
Includes all persons or agencies that have an interest in the project and its outcome.
Often they are outside the project team or the responsible agency.
Important to recognize and deal appropriately with them, but this is often difficult to do!
Identifying Project Stakeholders
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 42
2. Integrative & Predictive Project Planning and Control
Each project is planned and controlled by integrating:
All contributing functional areas.
All life cycle phases.
All elements of information: Schedule, Cost, Technical, Risk.
Using Web-based PM software systems.
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1. PM Process must be adhered to.
2. All P&C systems are integrated.
3. Only one PP&C system is used in the organization.
4. Earned value concept is applied.
Operational
PP&C Demands:
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 44
5. PM Process must describe the project planning & control system.
6. All PMIS modules in next slide are included in the PM Process and PP&C System.
Operational
PP&C Demands (Cont’d):
PM Information & Control System
Technical-Product
Information and
Control System
Modules
Project Information
and Control System
Modules
Risk Information
and Control
System
Modules
Engineering Mgt
Procurement Mgt
Construction-
Production Mgt
Test Mgt
Configuration Mgt
Project/P BS
Planning/ Scheduling
Cost Management
-- Cost Estimating
-- Cost Estimating Support
-- Craft and Crew
-- Unit Material
-- Unit Labor hours
-- Source Document
-- Cost Control
-- Cost Projection
Cost Projection
Accounting Data Entry
On-Line Query
Planning Assurance
(Risk Assessment)
Quality Assurance
Reliability
Maintainability
Safety Assurance
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Operational
PP&C Demands (Cont’d):
7. All planning, authorizing, controlling and reporting documents be produced by the supporting computer software systems (with authorized
exceptions). (See Table 5 in my paper.)
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How Much P&C Detail?
Always a problem; resolve by:
1. Systematic, hierarchical project breakdown: the Project/WBS
2. Avoid duplicating detail in existing systems: manage the project interfaces.
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Operational
PP&C Demands (Cont’d):
8. The concepts of the P/WBS and project interface management be applied to achieve a sustainable level of detail in PP&C documents.
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3. Integrated Project Team-Working
Bring multiple disciplines together from diverse organizations to collaborate creatively.
Understand and commit to project objectives.
Develop agreed plans, schedules & budgets.
Achieve outstanding results.
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The 5 Requirements for Good Team-working
1. Team member list, defined responsibilities.
2. Clear, well-understood objectives.
3. An achievable project plan and schedule.
4. Reasonable rules of the game.
5. Leadership by the project manager.
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Project Team Demands:
1. Must publish a complete team list
for each project.
2. Each team must define the project objectives in its own terms.
3. Each Project Team must commit to an achievable plan and schedule.
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Operational
PP&C Demands (Cont’d):
4. Agency‟s PM process must include procedures to ensure effective teamwork.
5. Leadership training must be provided for the Project Manager.
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Continual Improvement in PM
Every project must be reviewed on completion to identify where improvements are needed.
New PM ideas, practices & systems are continually being developed.
Specific efforts to improve are continually needed.
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Integrating PM into the Organization
No longer sufficient to treat PM as an “add-on” piece of the organization.
PM processes must be integrated with all other affected management processes. Financial
Human resources
Other
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Example of Integrated PM in a Telecommunications Company
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Using the Internet to Respond to Its Challenges
Enable improved collaboration.
Reduce travel time and cost, enhance teamwork.
Provide risk and issue tracking, and escalation processes.
Empower staff members.
Automate the PM processes.
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The Successful Adoption of Web-Based Collaborative Software
Go to http://gulliver.trb.org/news/blurb_detail.asp?id=5273
for 3 case studies on web-based PM system implementation
Chicago Transit Authority,
The Port Authority of New York and New Jersey,
Raytheon.
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PM Improvement Demands:
1. A post-completion appraisal must be performed on every project:
- Lessons learned,
- Improve PM process, practices and procedures.
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PM Improvement Demands:
2. PM discipline & supporting systems must be fully integrated with affected parts of the organization.
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PM Improvement Demands:
3. A Web-enabled PM system be selected and implemented at the project portfolio or total enterprise level.
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Presentation Objectives:
To provide a road map to Ministers and PA senior executives for achieving the full power of project management.
To help PM professionals show their senior managers where the development of project management should be going.
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 62
4. Conclusion
If the Minister insists that
these 33 demands be carried out, and
if the managers and staff members
comply with these demands,
thenthe organization will join those on the leading
edge of excellence in delivering the benefits to their citizens and their countries…
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 63
Ifthe right strategies
are being implemented!!
13 Novembre 2008 Il PM a supporto della Pubblica Amministrazione 64
Thanks for Listening!
Questions or Comments?