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Project Management

Chapter 4: Level of confidence in the Project?

Part of a series considering different aspects of Business Change

Understanding and Supporting Business Change – by Martin Schyns/ FILE: Project Management_Chap_4_FINAL.pptx

IntroductionWho am I?My headline would be…..Global Engineer Understands Transition Success Approach

Key take away is that I have been doing projects my whole career. I am an engineer at heart with a diverse background and I recognize that all organizations, and individuals for that matter, must continually seek to proactively change and adapt. As I am sure most organizations can attest, Change is hard. I thought I would try using this medium to collect various themes and ideas on the subject of Business Change and share my insights.

Understanding and Support Business ChangeNaturally enough, Project Management is my first theme. It is a rich and complex endeavor and it is certainly an area where I think

most organizations would acknowledge they could do better. Typically the challenge is that if you ask five people within an organization, what needs to change, you get five different responses.

The Initial Path for this Enquiry1. Chapter 1 – 10: Project Management – 10 questions to explore some involved situations

2. Chapter 11 > : Sustaining Business Health – physiology of a modern business

3. Chapter X > : Insights on making relevant Change happen – road map to the future

4. Chapter Y : CONCLUSIONS – reflection on the relevance / value of what we have uncovered

ApproachI thought it would be interesting to use the Socratic method to explore what can often be some what dry material;

and, because it helps me understand, a series of supporting diagrams that, I hope, encapsulate and convey the key ideas and their context.

I would welcome any comments and alternative views to help challenge my desire to grow and make a difference.

Thank you, Martin Schyns.2

Ten common Project Management situations that are not easily understood…why?

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SITUATION KEY QUESTION

1. Reflection Was the Project a Success?

2. Prioritization How to make Project Portfolio Management (PPM) relevant?

3. Right Approach? How do you define a project?

4. Realism Level of confidence in the Project?

5. Sponsorship What does Project Sponsorship mean?

6. Planned results How will the Project impact Business Performance?

7. Justification What is the business case for the Project?

8. What or How? Is the business strategy working?

9. Audit Why am I not seeing results?

10. Soft value What are the lessons to take forward?

Do these questions echo you own experiences? How well do you really understand the challenges of Project Management?

Chap. 4:

Chapter 4: Level of confidence in the Project?REF. Fig 4A - Introduction

• So what is confidence? … ‘the state of feeling certain about the truth of

something’, at a point in time. Confidence assessment is cyclical!

• Why is it so important? ….typically level of confidence translates into organizational authority to manage the Project; less confidence more intrusive oversight / challenge

• Biggest challenge? …..confidence is an emotion. It is often based on perceptions / loyalties / denial / personal motives ; not necessarily facts

• Confidence in what? ….confidence in the business value / relevance. Just delivering a Project on time and to budget is not sufficient!

• For a Project? … initially consider the 5W’s and the H ( Why, What, Where, When Who & How). Can we answer, with confidence, the details of 5W’s & H?

• Other specific questions:– Is there ongoing evidence that Project Progress is following the plan?– Are the key assumptions valid / likely to remain valid in the future?– What are the dependencies & what is their performance record / expected outcome?– Are the goals of the project still inline with the business needs / priorities?

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Legitimate confidence can only be established on accurate knowledge and an understanding of how that knowledge relates to the Project

Frame for Knowledge & Project Understanding

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#1. 5 W’s and the H

#2. Project Progressing to Plan?

#3. Are the key Assumptions still Valid?

#4. Dependency Status / Projections?

#5. Goals still

valid?

CONFIDENCE LEVEL

10%

15%

20%

25%

30%

25%

45%

70%

100%

Project Management

Sponsor / Steering Committee

Key Dimensions Driving Confidence Level

FIGURE 4A

Dimensions of the Confidence ChallengeREF. Fig 4B / 4C - Dimensions of the Challenge

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Improved management of these dimensions affords a Project a better opportunity for improving the operating conditions & sustaining future existence

FIGURE 4B

By recognizing these dimensions, and appreciating how they interplay, it becomes possible to better manage the confidence levels of key Project stakeholders.

Conversely, ignoring these considerations, leaves the Project exposed to the influence an array of corporate and business dynamics which may well have nothing to do with the project itself.

Key Dimensions collectively impacting business confidence in a Project:1. Project Profile – ref Fig 4A

2. Stakeholder Profiles:• Different levels/accuracy of information• Different levels of understanding• Different motivations• Different levels of influence / importance

3. Business / Organization Profile:• Culture of host Organization / Business• Circumstances of host Organization / Business > Project importance• Track record of Projects of host Organization / Business• Degree of Risk / Challenge in the Project

RESULT Stakeholder#3RESULT

Stakeholder#2

Dimensions of the Confidence Challenge

7Factors driving Project Confidence Level within an Organization

FIGURE 4B

Stakeholder Consideration

Maturity of PM Culture of host Organization /

Business

Circumstances of host Organization /

Business > importance of

Project

Track record of host organization /

business – re Project successes

Degree of Risk / Challenge in the

Project

Different levels/accuracy of

informationCan amplify or

attenuate individual

stakeholder behavior

May heighten or suppress

project awareness

Increase / Decrease

tolerance for deviations to

plan

Sensitizes / De sensitizes

various stakeholders to the Project

Different levels of understanding

Different motivations

Different levels of influence / importance

Net Project Confidence Level / across organization

RESULT Stakeholder#1

XXX+++

Business / Organization Profile

Stak

ehol

der P

rofil

e

ProjectProfile

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RESULT Stakeholder#3RESULT

Stakeholder#2

Example of the Confidence Challenge

Context factors are basically neutral and with a well aligned leadership team confidence is HIGH

FIGURE 4C

Stakeholder Consideration

Maturity of PM Culture of host Organization /

Business

Circumstances of host Organization /

Business > importance of

Project

Track record of Projects of host organization /

business

Degree of Risk / Challenge in the

Project

Different levels/accuracy of

information

Mature & Effective PM

Culture

Cost saving phase >

project results very import to

support business plan

Generally Acceptable to

Good

Project is deemed high

risk

Different levels of understanding

Different motivations

Different levels of influence /

importance

Net Project Confidence Level / across organization

RESULT Stakeholder#1

XXX+++

Suppressing concernsIncreasing concerns

HIGH

LOW

KEY

Business / Organization Profile

Stak

ehol

der P

rofil

e

ProjectProfile

Chapter 4: Level of confidence in the Project?- Why Manage Project Confidence?

• What happens when there Is a lack of confidence in the Project? …… typically we see:

– Excessive oversight >> distracts and and adds costs– See hyper sensitivity to deviations to plan >> too much detail

planning / re-planning– See changes in personnel >> de-stabilizes and undermines team

member confidence– See Project work sub-contracted >> undermines an organizations

ability to develop a mature Project Management culture– See less large Program / Broad scope / Multi phase projects >>

instead have smaller ‘bottom-up’ projects; which tend to undermine integration and offer more limited business benefits

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Improving Project Confidence Critical to Sustaining Healthy Project Performance

Chapter 4: Level of confidence in the Project?REF. Fig 4D - How to improve Confidence

1. From within the Project drive each of the Profiles; to provide a coherent communication statement; on a regular basis

2. From within the Program Management Office; articulate the medium term value and incremental development of Project Management culture

3. From the Strategic / Business Architect view point; formulate a road map that respects the conditions on the ground and acknowledges the prevailing conditions influencing Confidence

4. Business leadership; drive the coherence / collaboration in the leadership team to sustain measured, and balanced, confidence levels in Change Programs

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Establishing rising Confidence levels in Change Programs, with low volatility, requires concerted Short, Medium and Longer terms actions

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How to Improve Project Confidence

Driving balanced Profiles supports the most efficient way to improve Project Confidence

FIGURE 4D

PROJECTPROFILE

STAKEHOLDERPROFILE

BUSINESS / ORGANIZATION

PROFILE

Balanced Profiles realize the most efficient way to improve Project Confidence

Chapter 4: Level of confidence in the Project?- CONCLUSIONS

1. There are a series of hierarchical dimensions that make up the Project Profile influencing confidence ( see Fig 4A)

2. Individual and collective Stakeholder profiles often prove the most challenging to manage / change (see Fig 4B)

3. Business / Organization profile changes very slowly and requires top level support to sustain concerted improvement

4. All three profiles should be managed in a balanced way as Project Confidence is a product of all three profiles

5. Raising the collective Business / Organization confidence in Projects makes it possible for a virtuous cycle of Project Management performance improvement; conversely a static or declining level of confidence in Project/s almost guarantees a lowering of project performance / benefit

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Successfully Managing Project Confidence enables Project Performance improvements