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IPPM Organization®
Integrated Process and Project Management Organization
Stefan Hagen, © startup euregio Management GmbH
© startup euregio Management GmbH, 2001-2008 2
Major challenges of
today‘s business environment
Complexity and
discontinuity
complexity is rising – time for action is declining
radical technological innovations, innovation pressure
changes and trends are hardly predictable
cross-functional collaboration and communication is more and more
important
high risk projects, increasing uncertainty
etc.
Rising importance
of „soft facts“
War for Talents, Human Resource Management as a major challenge
inter-cultural management
long-term business relationships are based on trust and personal
networks
etc.
Globalization &
Competition
„Only the fittest will survive.“ → strategic AND operational excellence is
needed, high performance organizations
intensity of competition is increasing – price pressure, innovation
pressure, quality pressure, time pressure...
effectiveness AND efficiency
company‘s culture, strategy, processes, and structures have to be
aligned to the radical change
etc.
That‘s how most
organizations work today...
© startup euregio Management GmbH, 2001-2008 3
... and thats how they should work!
© startup euregio Management GmbH, 2001-2008 4
We need fast, innovative
and adaptive organizations!
© startup euregio Management GmbH, 2001-2008 5
The Roots of Modern
Organizational Theories
© startup euregio Management GmbH, 2001-2008 6
Taylorism („Fordism“)
And today? Taylorism still dominates!
© startup euregio Management GmbH, 2001-2008 7
Conclusion
© startup euregio Management GmbH, 2001-2008 8
The use of good theory...
© startup euregio Management GmbH, 2001-2008 9
„It is beyond a doubt that all our knowledge that begins
with experience.”
„Experience without theory is blind, but theory without
experience is mere intellectual play.“Immanuel Kant, German Philosopher, 1724-1804
„Everything should be made as simple as possible, but
not simpler.”Albert Einstein, Physicist, 1879-1955
„Even for practical purposes theory generally turns out
the most important thing in the end.”Oliver Wendell Holmes, Writer, 1809-1894
The heart of IPPM
© startup euregio Management GmbH, 2001-2008 10
Some Core Values of the IPPM
© startup euregio Management GmbH, 2001-2008 11
Smaller, flexible
and adaptive units
Professional
Service Firms (PSF)*
* als
o s
ee
To
m P
ete
rs (
2003)
Re
-Im
agin
e.
Busin
ess E
xcelle
nce in
a D
isru
ptive A
geVertical AND
horizontal view
Self-organization,
entrepreneurship
Keep things simple
in a complex world
To lead means
to serve!
Real customer
orientation
WOW Projects*
Accept nothing but
excellence and quality
Improvise!
ACT!
Stagnation means
Regression →
Question everything!
Helicopter Perspective
© startup euregio Management GmbH, 2001-2008 12
Cu
sto
mer
SU
CC
ES
S
Business Process A
Business Process B
Business Process C
Program XY
Cu
sto
mer
Req
uir
em
en
ts
Project A
Project B
Project C
Project D
The IPPM Organization®
© startup euregio Management GmbH, 2001-2008 13
PR
OC
ES
S
MA
NA
GE
RS
FUNCTIONAL MANAGERS
Support
Process A
Support
Process B
Support
Process C
Support
Process D
PR
OG
RA
M &
PR
OJ
EC
T
MA
NA
GE
RS
VALUE DRIVER LEVEL
The Integrated Process and Project
Management Organization® ...
• ... in an integrated management
model to effectively and
effeciently design, lead, and
continuesly renew organizations,
• ... is a new management
paradigm,
• ... is based on a systemic and
cybernetic understanding of
organization and management,
• ... is a stable framework for
developing high performance
organizations,
• ... is a field-tested organizational
approch based on proven
management concepts and
theories
• ... combines the vertical
(departments, line management,
functions) and horizontal
(processes, projects) view of an
organization,
• ... allows to balance out customer,
employee, and business
requirements continuously
• ... is based on the following
general principles: simplicity,
efficiency & productivity,
effectiveness & performance, top
quality, real customer orientation,
bias for action, speed, self-
organization & entrepreneurship,
continuous individual &
organizational learning
© startup euregio Management GmbH, 2001-2008 14
Organizational Units within IPPM
© startup euregio Management GmbH, 2001-2008 15
ORG. UNIT ROLE & RESPONSIBILITIES
General Management ensure competitiveness and long-term survivability
normative and strategic management
business development
strategic change management
strategic human resource management
Functional Managers maximize business value, profits
strategic development of the function (effectiveness) → human
resource management, knowledge management
operative leadership of the function (efficiency) → management by
objectives
resource management and alignment
Process Managers maximize customer value (internal, external)
strategic process design and development
operational process leadership and coordination
Program & Project
Managers
maximize customer value (internal, external)
leadership of project teams
ensure program / project sucess (on scope – on budget – on time)
cross-functional knowledge management
Value Driver Level
© startup euregio Management GmbH, 2001-2008 16
• Professional Tension Management
• Strategic and operational Management & Leadership
• Human Resource Management
• Knowledge Management
• Change Management, Management of Change
• Ensure Business Excellence
Value Creation Level
© startup euregio Management GmbH, 2001-2008 17
• Input: Customer Requirements
• Transformation: efficient and effective creation of values
• Output / Outcome: Customer Success!
Support Processes
© startup euregio Management GmbH, 2001-2008 18
• necessary for effective value creation
• outsource (if possible)! → concentrate on own core
competencies
• Examples:
– IT Support
– operative Marketing, Advertisement
– Facility Management
– Call Center Management
– Legal Issues
– ...
Professional Tension Management
© startup euregio Management GmbH, 2001-2008 19
It‘s not EITHER ... OR
It‘s BOTH ... AND
© startup euregio Management GmbH, 2001-2008 20
Between the poles -
Management of Tensions and Extremes
Maximize Customer Value Maximize Business Value
Exceed customer expectations Profitability, cost savingsvs.
vs.
vs.
vs.
Flexibility, Dynamics Stability, Repeatability
Projects, Team Work, Innovation Operations, Functions, Routine Processes
Cross-Functional Managers,
Generalists
Line Managers, Functional Managers
Specialists
Process Manager, Project Manager,
Program Manager
Engineers, Production Experts, Technicians...
Simplicity Complexity, Variety
KISS: „Keep it simple, stupid.“ „Only variety can destroy variety.“
vs.Horizontal View Vertical View
Processes, Projects, Programs Lines, Functions, Departments
Professional Tension Management
© startup euregio Management GmbH, 2001-2008 21
CONFLICTING GOALS, CONTRADICTION
Overcoming through
COOPERATION CONFLICT
Professional Tension Management in the
IPPM Organization®
© startup euregio Management GmbH, 2001-2008 22
• Professional Tension Management requires a corporate culture
which is dominated by openess, mutual trust, and the ability to deal
with conflicts and disagreements.
• Managers must demonstrate and also claim professional tention
management from „top down“.
• „Good“ decisions are rationally AND emotionally right.
• There is no right or wrong – no black or white any more. It‘s about
taking the right decisions for the moment, it‘s about taking chances
and proactively fighting risks. What was right yesterday can be
wrong tomorrow.
• Constructive criticism is required and asked for. Destructive
criticism is prohibited.
• Areas of tensions and disagreements: Human vs. Human, Issue
vs. Human, Human vs. Issue, within humans
IPPM Success Formula
© startup euregio Management GmbH, 2001-2008 23
Excellent People & Culture Excellent Strategy, Processes, and Structure
+
SUCCESS=
Coordination and Collaboration in the
IPPM Organization
© startup euregio Management GmbH, 2001-2008 24
• Core competencies and specialist know-how
are concentrated in vertical functions and
departments.
• Personal ressources are normally assigned to
the functional managers.
• Values are solely created in business processes,
programs, and projects.
• Process managers, program managers and
project managers coordinate and manage the
creation of values in cross-functional process
or project teams.
• Conflicting goals are solved through a
professional tention management (vertical vs.
horizontal goals).
The Goal: High Performance Organization
© startup euregio Management GmbH, 2001-2008 25
Inte
nsity: L
ea
de
rsh
ip/ C
ultu
re
Integration of Sub-Systems Inte
grie
rtes Q
ualit
äts
managem
ent:
Seghezziu.a
. (2
007)
High Performance
Organization =
BUSINESS
EXCELLENCE
Just do it! Start today!
© startup euregio Management GmbH, 2001-2008 26
„I've learned that mistakes can often be as good a teacher
as success.”Jack Welch, CEO of General Electric from 1981-2001
SGMK
St. Galler
Management
Konzept
IMS
Integrated
Management
Systems
OT / OB
Organizational
Theory (OT),
Organizational
Behaviour (OB)
Academic Foundation
of the IPPM Organization®
© startup euregio Management GmbH, 2001-2008 27
BPM
Business Process
Management
QM
Quality
Management
SM
Strategic
Management
IM
Innovation
Management
Info-M
Information
Management
NM
Normative,
Value-Based
Management
OM
Operative
Management
WFM
Workflow-
Management,
Logistics
PM
Project Management,
Program Management,
Project Portfolio
Management
Systems Approach, Management Cybernetics, VSM
Organizational Learning / Change Management
Sources
© startup euregio Management GmbH, 2001-2008 28
BLEICHER, Knut (1994): Normatives Management. Politik, Verfassung und Philosophie des Unternehmens. St. Galler
Management-Konzept Band 5. Campus Verlag. Frankfurt/New York.
HAAS EDERSHEIM, Elizabeth (2007): Peter F. Drucker - Alles über Management. Redline Wirtschaftsverlag.
Heidelberg.
HEIMBOLD, Roman (2005): Alles im grünen Bereich. Projektmanagement für jedermann (1. Aufl.). mitp-Verlag. Bonn.
MALIK, Fredmund (2005): Führen, Leisten, Leben. Wirksames Management für eine neue Zeit. Heyne-Verlag.
München.
MALIK, Fredmund (2003): Systemisches Management, Evolution, Selbstorganisation. Grundprobleme,
Funktionsmechanismen und Lösungsansätze für komplexe Systeme (4. Aufl.). Haupt Verlag.
Bern/Stuttgart/Wien.
MINTZBERG, Henry (1989): Mintzberg on Management: In our strange world of organizations. Free Press. New York.
PETERS, Tom (2007): Re-imagine. Spitzenleistungen in chaotischen Zeiten. Gabal Management Verlag. Offenbach.
PETERS, Tom/WATERMAN (1988), In Search of Excellence: Lessons from Americas Best Run Companies: Lessons
from America's Best-Run Companies. Time Warner International.
SCHWANINGER, Markus (1994): Managementsysteme. St. Galler Management-Konzept Band 4. Campus Verlag.
Frankfurt/New York.
SEGHEZZI, Hans Dieter (2007): Integriertes Qualitätsmanagement. Der St. Galler Ansatz (3. Aufl.). Carl Hanser
Verlag. München.
WUNDERER, Rolf (1997): Führung und Zusammenarbeit. Beiträge zu einer unternehmerischen Führungslehre (2.
Aufl.). Schäfer-Pöschel Verlag. Stuttgart.
© startup euregio Management GmbH, 2001-2008 29
Contact
startup euregio Management GmbH
Stefan Hagen
Rheinstrasse 26-27
6890 Lustenau
AUSTRIA
Phone: +43 (0)5577 87118
Web: www.startupeuregio.com
e-Mail: [email protected]
Free Project Management Know-How (in German):
www.PM-Handbuch.com
www.PM-Blog.com