Project Management Best Practices for Maximum Performance via Effective Integration
During the past 60 years, organizations' have adopted new management techniques, often using Information Technology (IT) as a vehicle to enable these new approaches. During the past 30 years, both IT and non-IT Project Management (PM) also evolved and reached a stage of self-discipline with its own knowledge base. Yet, in contrast, project management's versions of business analysis and business performance management has only been around for about 10 years. This discrepancy has caused a disconnect that is known as "Business/IT Misalignment." As a result, many projects have suffered. This white paper will highlight how project managers can utilize effective integration of multiple disciplines to achieve maximum performance.
This discrepancy has caused a disconnect that is known as "Business/IT Misalignment." As a result, many projects have suffered. According to a report from The Standish Group, in 2009 24% of all projects failed, with 44% left challenged, and just 32% completed successfully (see figure 1). These failed or challenged projects translate to wasted time and resources plus lost opportunities for organizations, restricting them from meeting future business challenges and/or taking advantage of new opportunities.
This white paper will highlight how project managers can utilize effective integration of multiple disciplines to achieve maximum performance.
Major Roles Evolution and Best Practices Framework
In a natural response, businesses have been seeking solutions to the Business/IT Misalignment. Professional organizations have surfaced to compile, publish, and promote best practices - often called a "body of knowledge." Two new roles have evolved to compliment the project manager role. The two new roles and the PM role are:
Business Analysis (BA) - coordinates the development and production of business requirements and solutions, as elicited from all related stakeholders. The results of these are "baseline requirements", which are approved by all stakeholders. The BA continues to remain active during the "Project Management" and "Business Operation" phases to collaborate and communicate the business goals with the PM and stakeholders.
Business Performance Management (BPM) - focuses on business operations by deploying, monitoring, and keeping-up with the enterprise's key performance indicators (KPIs). A BPM's goal is to optimize the enterprise's operations-subject to the given tools, resources, and environment-as well as recommend future maintenance and enhancements initiatives.
Project Management (PM) - manages the product's design, build, and implementation as a result of and in compliance with the approved business requirements and solution, as governed by the stakeholders' changecontrol procedures. The PM's role is also subject to predefined Triple or Hexagon Constraints, which are described later.
Project Management Structures and Body of Knowledge
Project management structures follow their particular application. They can be described as follows:
IT vs. Non-IT Project Management
While information technology projects might be the major recipients of PM, there are many instances where a business workflow requires PM to realign the workflow as needed. This could involve organizational flow, human resources, and other assets allocation.
Project vs. Program Management
Project management is the single recognizable activity for a targeted application, organized by one project manager and a number of project members who accomplish the targeted goal. Program management is the collection of related projects coordinated under one umbrella called a program.
The Project Management Office (PMO)
The PMO is the office that defines, oversees, and maintains the standards of project management. It is the source of documentation, guidance, and metrics on the practice of project management and execution within an organization.
The Project Management Institute (PMI)
The PMI is the organization that focuses on accumulating the industry's project management best practices. It issues the "Project Management Body of Knowledge", also known as the PMBOK.. This knowledge base is widely used in the industry by project managers.
Project Management Organizations
Five popular PM organizations are known as:
The PM is run within one department staffed to execute the project.
In matrix organizations, the project resources are shared, or borrowed, to execute the project.
The resources are spatially distributed and interconnect via some communication means, usually using electronics and the Internet to execute the project.
An organization uses external resources to complement their internal resources and collaborate in executing the project under their own internal management.
Is when the organization resorts to a total external resource, with external management, to execute the project according to a contracted set of specifications, terms and conditions.
The Project Management Constraints
Classical PM is executed subject to three parameters known as the Triple Constraints:
This describes the constraint imposed on the PM by the scope of the project, the resources to be used and the delivery schedule.
The Stiffler Hexagon ConstraintsT
Darrell Stiffler introduced the Hexagon Constraints, extending upon and reordering the Triple Constraints as follows:
In this case the Constraints emphasize the first priority as: "Quality of Deliverables," as expressed by the customer satisfaction." In addition, the budget of the project and the assessment of risk have been added to the traditional Triple Constraints.