Human side

of

Project Management

1. Buying a stronger whip.

2. Changing riders.

3. Appointing a committee to study the horse.

4. Arranging to visit to see how they ride horses.

5. Imparting training to increase riding ability.

6. Have the lawyers bring suit against the horse producer

Winning a Derby

7. Promote the horse to a management position.

8. Do a Study to see if contractors can ride it cheaper.

9. Purchase a product to make horses run faster.

10. Revisit the performance requirements for horses. 11. Say this horse was procured with cost as an

independent variable.

12. Providing additional funding to increase the horse's

performance.

Winning a Derby

This Presentation Structure

Dead Horse, already visited

Project Implementations

Drivers of change

Project Management Concept

People Dimensions

Emerging Paradigm

Key People Issues

NTPC Stories

PROJECT IMPLEMENTATION –Some Facts & Figures

20 % projects are unable to take off for years, 8 % are dropped.

60 % projects completed with cost over run 55 % projects could be completed.

Source: 8th five year plan projects

<=10 % Normal

Less uncertainty10-50 %

Higher uncertainty50-100 %

Extreme uncertainty> 100 %

Time overrun of Completed Projects

Regulation

New Technology, New material

Competition

Customer Demands

Employee Expectations

Management Practices

Information Technology

Organization Culture

Investor Demands

Project

Management

Commercial Focus

Financial Viability & stability

DRIVERS OF CHANGE

People on the Periphery

PROJECT MANAGEMENT CONCEPT

AS PER BRITISH STANDARD BS 6079: 1996, PROJECT IS DEFINED AS (CLAUSE NO. 1.3.6)--

A unique set of coordinated activities, with definite starting and finishing points undertaken by an individual or organization to meet specific objectives within defined schedule, cost and performance parameters.

Project is a one time multi function activity.

MAN

MATERIALMONEY

SUCCESSFUL PROJECT

IN TIME DECISION MAKING

The 3Ms would be dead inventories If not deployed at the right time, the right way.

PROJECT MANAGEMENT CONCEPT

Project Patterns• Gradual build up in the resources of Personnel,

Materials and Equipments

• A relatively Long duration of Plateau, when resources are used at a high rate

• Run down, when control may be simplified and resources may be released.

PROJECT MANAGEMENT CONCEPT

Project Life Cycle Phases

PROJECT MANAGEMENT CONCEPT

The project

managem

ent

process

Conception

Feasibility

Implementation

Operation

Termination

Authorization

Hand over

Shutdown

Milestones

Life cy

cle

Plan

Control

Project Life Cycle Phases

PROJECT MANAGEMENT CONCEPT

Operation after handover/ Clean-up phase

4 %

Implementation Phase

85 %7 %4 %

Conception Phase

Feasibility Phase

Level of Effort

Manpower Deployment

PROJECT MANAGEMENT CONCEPT

Numbers

Project Manpower

Transition of Project to Operation Phase

Operation Manpower, Industry dependent

Basic Requirements of Project Execution• Innovation to overcome problems as they arise.

• Experience to make sound, efficient decisions

• Rapid Response to changing situations;

• Effective Control of expenditure and progress.

• Leadership for showing Vision, Involving people and Persistence in approach (V-I-P)

• Organisation culture supporting the above

PROJECT MANAGEMENT CONCEPT

Project Organization

• Requires flexibility for catering to uniqueness of any project.

• It facilitates integration of company efforts to achieve

project goals and objectives.

• Types of org. structure relates directly to the authority

delegated to the project manager.

• It can range from very little to almost Total control over all

project activities and resources.

PROJECT MANAGEMENT CONCEPT

Project Organizations

PROJECT MANAGEMENT CONCEPT

MATRIXFORMAT

PROJECTFORMAT

FUNCTIONFORMAT

Authority

Contracts Engineering Construction Finance HR

Top Management

Project Mgmt

Project A

Project B

Project C

Project D

Functional Format

PROJECT MANAGEMENT CONCEPT

•Project Manager is only a co-ordinator; he

monitors, analyses progress and reports

•Has less authority over specific specialisations.

•Requires considerable interpersonal skill, technical

competence and support from top, to get the job

done.

Project Format

PROJECT MANAGEMENT CONCEPT

Construction

Contracts

Engineering

Finance

Personnel

Project A

Contracts

EngineeringConstruction

Finance

Personnel

Project B

TOP MGMT.

HR Finance

Construction Contracts Engg

•Project Manager has full authority, even

of functional policies and procedures.

•Team is multidisciplinary and moves from

one to next as each is completed.

•PM is full accountable, capable of

controlling the cost, often burdened with

administrative details.

CONTRACTS ‘A’

Proj.Mgr.’B’

ENGINEERINGHEAD ENGINEERING’A’ ENGIEERING’B’

CONTRACTS ‘B’

TOP MANAGEMENT

Proj Mgr ‘A’

CONTRACTSHEAD

Matrix Format

PROJECT MANAGEMENT CONCEPT

•Authority is shared between Function and project; characterized by a multiple command system.

•Minimises project managers involvement in administrative controls.

•Conflicts and friction often arises out of ambiguous authority relationship; Concerns are hardly shared

Manpower Deployment

PEOPLE DIMENSIONS

Num

bers

Time

Phase I

Phase I• Characterized by unskilled -less skilled job at Project

Site and high end planning job.• Low end jobs be sourced from local, preferably thru

third party and from PAPs• High end manpower at Site be sourced from other

project sites, if it is a repetitive job or recruited on contract if one project of kind

Manpower Deployment

HR DIMENSIONS

Num

bers

Time

Phase II

Phase II• Relatively higher skilled work force along with

unskilled job at Project Site and high-end planning /execution job.

• As a part of R&R scheme, locals can be facilitated to take up appropriate jobs.

• More of High end manpower at Site be progressively sourced from other project sites, if it is a repetitive job or recruited on contract as part of planning.

Manpower Deployment

HR DIMENSIONS

Phase III• Gradual ebbing of addition of work force though

absolute number is increasing.• Some of the key activities are coming to an end;

these local manpower can be redeployed in other areas. In large multi unit projects, workforce can be send else where or contracted employees can be relieved.

• Internal employees, wherever possible, be prepared to take up assignment in Operation phase.

Num

bers

Time

Phase III

Manpower Deployment

HR DIMENSIONS

Phase IV• Reduction of workforce from almost all front and

frenzied start of operation phase.• Redeployment of project manpower as operation

manpower wherever permitting• Low-semi skilled jobs in operation phase be given to

locals as part of original planning• Key officials from project phase can be assigned

other project responsibilities • Recruitment of Operation phase manpower

Num

bers

Time

Phase IV

Manpower Deployment

HR DIMENSIONS

Phase V

• Characterized by presence of skeletal project manpower

• Industry /organisation specific manpower being stabilised for the operation phase

• Bringing people with matching skill set for operation phase;

Num

bers

Time

Phase V

Managing Ambiguity

Formal organisation structure reflects Responsibility where as real power within follows lines of Communications.

Project Managers need to be Leader, Facilitators and Mentors.

Competency matrix for Project Manager to reflect all these factors

PEOPLE DIMENSIONS

Knowledge Management Employees move from one function to other – one

project to other, results in temporary / permanent loss of knowledge/expertise

Adequate knowledge sharing culture Need for formal knowledge Management Structure

and methodology Contingency arrangement

PEOPLE DIMENSIONS

Values To succeed, involve your people fully

Value your people, they will value your priorities

Any short-cut [ Safety], cut short timely completion

goals, morale and escalates ultimate costs.

External customers are as important as Internal

customers.

Value system shows ….Always

PEOPLE DIMENSIONS

Quality

Quality is Cost, Delivery (Schedule), Safety

Quality for Customers is rather Free,

Quality pays

PEOPLE DIMENSIONS

Continuing Education Requires investment and dedication.

In the long run, it pays. It helps to identify obsolete technology, methods,

equipments. It need to be matched with right responsibility. Training keeps people motivated as it shows

management is interested in upliftment of employee’s employability.

PEOPLE DIMENSIONS

Skill / Competencies Acquisition Vs Development. Outsourcing Vs In-house capabilities

Dependant on time in hand?Nature of Business?kind of growth anticipated / plannedTechnology deployment planDiversification?Forward-backward integration?One time project or otherwise?Key strength / Core competencies

PEOPLE DIMENSIONS

Accountability and Authority

Authority Decisions Results

Some may not take decisions!

Some may not concerned about results!

Contractual responsibility – thru Fear

Moral responsibility- thru inspiration/motivation

PEOPLE DIMENSIONS

HR Strategy

Owner’s HR philosophy

Type of organisation / business

Regulation

Local issues

KEY HR ISSUES

Competency on Soft Skills

Going soft on soft skills will be hard on hardware !

Leadership, Communication, Team working

Managing conflicts (with customers, colleagues,

team members)

Effective meetings and effective briefing

Dealing with difficult employees

Using rewards and punishment effectively

Building commitment among team members

Display of sense of accountability and ownership

KEY HR ISSUES

Competency on Soft Skills contd..

Understanding with higher functionaries of parent

organisation

Local Cultural issues / Cross cultural issues

Operating in a political environment

Local Religion / language barrier understanding

Networking abilities and dealing with local

administration

Handling inter-contractor’s Issues

KEY PEOPLE ISSUES

Effective communication across various interfaces

Competency on Hard Skills

Technical competency for Engineering project

Continuous change with project time line

Understanding / foreseeing problems in execution

Adopting new technical skills /methods especially

embracing IT

KEY PEOPLE ISSUES

Olympic Gold Medal Winners in High Jump

2.6

2.4

2.2

2

1.8

1.6

1900 1920 1940 1960 1980 2000

Scissors

WesternRoll

Straddle

FosburyFlop

Source: Pascale

2.36 (most recent)

Meters

You can’t do

today’s job with

yesterday’s

concept/methods

and be in

business

tomorrow.

KEY HR ISSUES

Competency Matrix for Project ManagerWeightage

Core Competency 25Project planning, scheduling, risk mgmt,tech. Awareness, Decision making, team working

Business Competency 15Business awareness, Strategy, core values,Quality commitment

Personal Competencies 20Initiative, strategic thinking, self confidence, concern for credibility, adaptability, flexibility

Inter-personal competencies 20Commitment adherence, conflict resolution, Negotiation, Knowledge sharing

General management competency 25Motivating others, communication skills, CRMTeam building, team competencies

ICICI Infotech Ltd, Mumbai

Sensitivity

Avoiding Burn out of Employee –Taking responsibility

Local PAPs standard of living

R&R activity vs charity

Corporate citizenship

Local politics and administration

KEY HR ISSUES

Motivation for Contract Employees at Simhadri

Job opportunity in power stations

Continuous education schemes for wards of PAPs

Self reliant schemes for PAPs

Sensitivity towards own employees need for

entertainment etc

Success with Taken over Stations

Merits of being Multi unit utility

NTPC STORIES

SALIENT CHARACTERISTICS OF PROJECT ENVIRONMENT

• Uncertainties and high risks• Varying requirements of resources• Highly interdependent activities• Multiplicity of players• Temporary in nature• High social impact (for mega infrastructural projects)

ROLE OF THE PROJECT MANAGER

• As a Politician• As a HR Manager• As a Change Agent

PROJECT MANAGER - AS A HR MANAGER

“If you don’t have the right top team,You won’t have right tiers below them.”

……….AS HR MANAGER

Key Attributes of Team Members

• Positive attitudes• Team players – respect for others• Flexible and adaptable• Energetic – hard working for long hours• Comfortable with change and uncertainties• High learnability• Functional/technical expertise

….........AS HR MANAGER

• Selecting the senior team is critical

– Value Match

– Psychometric tests

………. AS HR MANAGER

• Dealing with conflicts and frustration

PROJECT MANAGER AS POLITICIAN

• Relationships are key to project success• Contituency includes

– Suppliers and sub-contractors– Employees– Project affected people– Local administration

• Political instincts are important– To anticipate uncertainties– To deal with resulting risks

• Networking is critical– Provides information about resource availability, potential

problems– Solicits support of others– Provides quick access to help

PROJECT MANAGER AS CHANGE AGENT

• Awareness – “once is not enough”• Preparing for change• Learning/experimenting• Using/Implementing

……… AS HR MANAGER

• Creating an enabling environment

• Motivating and inspiring

• Caring and developing

• Mentoring

PROJECT LEADERSHIP

• Creating a vision• Sharing it freely with partners, employees,

investors, suppliers• Creating a culture that reflects vision• Setting clear goals, track progress• Leading through stages recognizing changes in

role and competencies in different stages• Being a role model• Diffentiating “urgent” and “important”

PERSONAL ISSUES

• A very personal journey– Self-motivated

• “Win” can lift you spirits to great heights• More to life than “projects”• True success requires balancing

– A strong commitment to work– Equally strong commitment to personal life

• Work-Life balance of– Self– Team members– Personal/family comforts– Entertainment, get-togethers

“Not everything is within our control”

• Should keep us humble when we achieve success

• Should help us maintain our sanity when we don’t

PROJECT MODE IN EMERGING ENVIRONMENT

• Developing new products• Improving efficiency and productivity• Strengthening competitive position in national

and world markets• …….. You name it……

Thank You