1. HOW A PMO CAN DRIVE A PROJECT MANAGEMENT CULTURE Allan R. Loucks, M.A., Psy.D. Robert J. Hess, PMP January 27, 2010

2. Agenda Intros Intros The Challenge The Challenge Is There A Model? Is There A Model? Existing Research Existing Research Recognizing the Problem Recognizing the Problem Conclusion Conclusion

3. The Challenge The Organization’s Culture

4. Project Management The Organization’s Culture The Challenge

5. Project Management Culture The Organization’s Culture Project Management The Challenge

6. Distribution Company The Situation Industrial Distributor with Global Ops Industrial Distributor with Global Ops Grew from $120MM to $500MM (2001-2005) Through Acquisition Grew from $120MM to $500MM (2001-2005) Through Acquisition HQ Staff of 250, 13 DCs in US/CAN HQ Staff of 250, 13 DCs in US/CAN 1,700 Sales Reps, 2,500 Employees 1,700 Sales Reps, 2,500 Employees  Issue: Siloed Organization, Project Failures, Lack of Progress on Initiatives, Unclear Project Status  Embarked On PM Training In 2005

7. BDPM Rollout 6 months

8. Distribution Company The Results 5 Years Later… 5 Years Later…  Methodology Upgraded  Managers Trained “think Differently”  Lean Implemented  Broke Down Silos

9. The Question Is it important that the Project Management Office drive a Project Management culture?

10. Definitions We Need To Understand Project Management “A One-Time, Multitask Job That Has Clearly-Defined Starting and Ending Dates, A Specific Scope of Work To Be Performed, A Budget, and A Specified Level of Performance to Achieve” Lewis “Addresses All Organizational Levels, Both Strategic and Tactical” Shenhar, et al.

11. Organizational Culture They Are Communities that… “Are Mini-Societies…” “Have Their Own Taste and Flavor…” “Its Own Habits and Jargon” Handy Definitions We Need To Understand

12. Organizational Culture “Related Primarily to Shared Beliefs In Organizational Practices and Processes” Hofstede, et al. Definitions We Need To Understand

13. Organizational Culture “A Pattern of Shared Basic Assumptions That The Group Learned As It Solved Its Problems of External Adaptation And Internal Integration That Has Worked Well Enough To Be Considered Valid and, Therefore, To Be Taught To New Members As The Correct Way To Perceive, Think, and Feel In Relation To Those Problems.” Schein Definitions We Need To Understand

14. Significant Literature Wang provides his definition of PM Culture: “PM culture is a set of work-related values and beliefs shared by members of the PM profession.”

15. Schein: “Every group develops an identity of shared patterns of thoughts, beliefs, feelings, and values that result from shared experiences and common learning within that group.” Significant Literature

16. Wang: “Members of the profession (identify themselves as) having common PM tasks with temporary teams of high diversity (bringing in thoughts, beliefs, feelings and values) interacting (sharing) with a variety of stakeholders improving their ability to deal with common PM tasks.” Significant Literature

17. A PMO must drive a Project Management Culture An organization that doesn’t recognize and develop a project management methodology has an organizational culture that does not support project management processes and, therefore, cannot build a project management culture.

18. So, How Can the PMO Drive an Organization’s Project Management Culture? Sources: Patel & Stanley, University of Michigan, “Building a Project Management Culture” Loucks, Alliant International University, “A Study of Project Management: The Exploration and Recognition of a Culture Within the Profession”

19. A lack of common, department – wide, PM practices A lack of common, department – wide, PM practices A lack of the understanding of formal PM process, its purpose, and its benefits A lack of the understanding of formal PM process, its purpose, and its benefits An uneven application of PM tasks to department projects An uneven application of PM tasks to department projects Many Project cultures are characterized as having:

20. The view that PM is not seen as an essential component for all projects The view that PM is not seen as an essential component for all projects A habit of PM activities being conducted as an afterthought A habit of PM activities being conducted as an afterthought PM notexplicitly integrated with strategic planning PM notexplicitly integrated with strategic planning Many Project cultures are characterized as having:

21. No common repository for PM documents No common repository for PM documents A perception of formal project management as too detailed, too complex, and too time consuming A perception of formal project management as too detailed, too complex, and too time consuming Many PM cultures are characterized as having:

22. There exists a department-wide PM practice There exists a department-wide PM practice There is a basic understanding of the PM process, its purpose, and its benefits among all employees involved in project activities There is a basic understanding of the PM process, its purpose, and its benefits among all employees involved in project activities There Exists easily accessible, customized, PM documents There Exists easily accessible, customized, PM documents The desired culture looks like:

23. There is a standard criteria for identifying projects There is a standard criteria for identifying projects PM is seen as a standard requirement for an identified project PM is seen as a standard requirement for an identified project Project activities designed and driven using PM framework Project activities designed and driven using PM framework The desired culture looks like:

24. PM is seen as an integrated component of strategic management PM is seen as an integrated component of strategic management Department-wide availability of PM documents Department-wide availability of PM documents Phased approach to project implementation Phased approach to project implementation The desired culture looks like:

25. There is a critical role of project management in success and failure of projects There is a critical role of project management in success and failure of projects There is an awareness of project management importance among staff There is an awareness of project management importance among staff There exists top management enthusiasm and preference for project management There exists top management enthusiasm and preference for project management The driving forces for change:

26. There exists a high priority assigned by management to project management improvement There exists a high priority assigned by management to project management improvement There are current problems with project status communications There are current problems with project status communications There is difficulty in monitoring and tracking progress There is difficulty in monitoring and tracking progress Availability of innovators Availability of innovators The driving forces for change:

27. There is no clear policy statement regarding PM There is no clear policy statement regarding PM PM seen as an additional financial burden in personnel and/or overhead PM seen as an additional financial burden in personnel and/or overhead General focus on product and service related activities, rather than process General focus on product and service related activities, rather than process Limited understanding of PM (example: “Just Do It!”) Limited understanding of PM (example: “Just Do It!”) The restraining forces:

28. Lack of knowledge and training in PM tools and techniques Lack of knowledge and training in PM tools and techniques Perception of formal PM being very detailed and complex Perception of formal PM being very detailed and complex Improper utilization of resources (poor project scheduling) Improper utilization of resources (poor project scheduling) The restraining forces:

29. PM policy as part of the strategic plan PM policy as part of the strategic plan Management support Management support Department-wide project management process Department-wide project management process Phased implementation Phased implementation EDUCATION & TRAINING EDUCATION & TRAINING Use of change agents to support the change Use of change agents to support the change Primary components for successful change:

30. Recognizing the Problem Formal PM only used on very large projects Formal PM only used on very large projects PM practices used were inconsistent PM practices used were inconsistent A PM process is essential to consistently deliver projects on time and within budget A PM process is essential to consistently deliver projects on time and within budget

31. Recognizing the Problem A standard process is needed before ongoing process improvement could be addressed A standard process is needed before ongoing process improvement could be addressed Problem recognition brought strong commitment by department management Problem recognition brought strong commitment by department management

32. Conclusion Project Management Culture The Organization’s Culture Project Management