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Does Your Organization Support, Ignore or Obstruct Project Management? John Censor PCI GLOBAL INC ® Computer Simulation Training Executive Overview © 2004.

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Presentation on theme: "Does Your Organization Support, Ignore or Obstruct Project Management? John Censor PCI GLOBAL INC ® Computer Simulation Training Executive Overview © 2004."— Presentation transcript:

1 Does Your Organization Support, Ignore or Obstruct Project Management? John Censor PCI GLOBAL INC ® Computer Simulation Training Executive Overview © 2004 PCI Global Inc. All rights reserved

2 Executive Overview This presentation is an overview of initial findings from a 1.5 year on-going study conducted by PCI Global, an international Project Management training and consulting company; Charter Global PMI R.E.P.

3 Projects in Today's Marketplace Projects do not appear or exist in isolation. They are developed in an organization by a perceived need from senior management that a change in process or product is required. Planning, resourcing, implementing and controlling these projects cause changes in that organization.

4 Projects in Today's Marketplace (continued) The projects in turn, are impacted and changed by that organization. In some organizations the pattern of these decisions and choices is consistent and known; in others they vary and may come to light months later The net effect is that every organization, whether they intend to or not - supports, ignores or obstructs projects.

5 Projects Today WHAT ABOUT YOUR ORGANIZATION ?

6 The study was conducted with 100 practicing team members and project leaders from several of PCI’s Fortune 500 clients. Plus another 82 People from Company “L”. The findings raise serious questions about the way organizations manage projects and The clarity of internal communications around those projects. Who was involved?

7 Previous Studies have focused on: How many projects complete, abort or finish. Individual project managers actions and attributes needed to achieve success. Multiple studies of the “#1 Reason for Project Failures”

8 Astonishing New Results No previous study has focused on the impact of the organization and its senior management on project management effectiveness. These findings were NOT predictable.

9 Our findings suggest… The greatest impact or predictor of project success is whether senior management – knowingly or unknowingly – supports, ignores or actually obstructs project progress. The study also reports on project manager’s complaints and recommendations to improve overall performance. Concludes with project manager recommendations to improve overall performance

10 The Study The study consists of fourteen questions rating all aspects of a participating company’s corporate project effectiveness. We cannot report all 14 today !

11 The Study The study is embedded in an advanced course, ‘Bottom Line Project Leadership’, that asks all participants to fill in the form. Based on a computer simulation of a complex, technology project. Models activities, resources, costs. Compresses 6 months of project life cycle into 3 real time days. Because Over 90% of participants fill out survey and answer truthfully. For this reason, we believe the results are much more credible; and the findings more significant.

12 Here’s how we will work… Here comes the 1 st question… I will present a question You can guess the answer Then I present the actual results

13 1. My role in project management is currently as a: a.Project Team Member b.Project Manager c.Project Sponsor d.Line Manager working with a project team e. Other Taking Our Organization’s Project Management Pulse

14 The Study Response 40% 41% 3% My role in project management is currently as a: a.Project Team Member b.Project Manager c.Project Sponsor

15 2. In our organization, a project manager obtains resources by: a.Using senior management and/or sponsor support to get the appropriate people b.Taking whatever people are offered c.Fighting for the best people d. Negotiating with Line Managers for the best people Taking Our Organization’s Project Management Pulse

16 In our organization, a project manager obtains resources by: a.Using senior management and/or sponsor support to get the appropriate people b.Taking whatever people are offered c.Fighting for the best people d.Negotiating with Line Managers for the best people The Study Response 33% 46% 6% 15% L= 38% L= 13% L= 4% L= 44%

17 3. In our organization, the authority of the project manager comes from: a. The immediate supervisor of the Project Manager b.Within himself/herself c.The Project Sponsor and/or senior management d.Documented job description Taking Our Organization’s Project Management Pulse

18 The Study Response In our organization, the authority of the project manager comes from: a.Immediate supervisor b.Within himself/herself c.The Project sponsor and/or senior management d.Documented job description 42% 47% 4%

19 4. After the project is launched, our project sponsors: a.Micromanage b.Become practically invisible c.Are involved only when a crisis occurs d. Are actively involved throughout the duration of the project Taking Our Organization’s Project Management Pulse

20 The Study Response After the project is launched, our project sponsors: a. Micromanage b.Become practically invisible c.Are involved only when a crisis occurs d. Are actively involved throughout the duration of the project 3% 24% 44% 25% L=6% L=11% L=33% L=50%

21 5. How effective is the Project Management Office in your Organization? a.Little or no impact on improving project performance b.Moderate impact on improving project performance c.Good impact on improving project performance d.Very effective impact on improving project performance e. Not applicable (no project management office currently exists) Taking Our Organization’s Project Management Pulse

22 The Study Response How effective is the Project Management Office in your Organization? b.Moderate impact on improving project performance c.Good impact on improving project performance d.Very effective impact on improving project performance e.Not applicable (no project management office currently exists) 16% 25% 9% 43% L=25% L=67%

23 6. In the culture of our company, the person most likely held accountable for the final results/outcomes of the project management effort are: a.Project Team Members b.Project Manager c.Line Managers involved d.Project Sponsor e. Everyone involved Taking Our Organization’s Project Management Pulse

24 The Study Response In the culture of our company, the person most likely held accountable for the final results/outcomes of the project management effort are: a. Team Members b.Project Manager c.Line Managers involved d.Project Sponsor e.Everyone involved 73% 3% 6% L= 1% L= 31% L= 9% L= 49% L= 10%

25 7. Employees who are assigned to a project team (either full-time or part-time) have a performance evaluation conducted by: a.Their Line Manager only b.Their Project Manager only c.Both the Project and Line managers d.Both the Project and Line Manager, together with a review by the Project Sponsor Taking Our Organization’s Project Management Pulse

26 The Study Response 52% 8% 30% 8% Employees who are assigned to a project team (either full-time or part-time) have a performance evaluation conducted by: a.Their Line Manager only b.Their Project Manager only c.Both the Project and Line Managers d.Both the Project and Line Manager, together with a review by the Project Sponsor L= 40% L= 0 L= 47% L= 13%

27 8. What skills do you think are most important for project managers in our organization: a.Technical knowledge b.Risk management c.Cost management d.Soft (HR) skills e.Overall business knowledge Taking Our Organization’s Project Management Pulse

28 The Study Response What skills do you think are most important for project managers in our organization: a.Technical knowledge b.Risk management c.Cost management d.Soft (HR) skills e.Overall business knowledge 16% 12% 5% 34% 33% L= 4% L= 22% L= 13% L= 52% L= 9%

29 9. What % of your projects come in on time? a.0% to 10% g. 61% to 70% b.11% to 20% h. 71% to 80% c.21% to 30% i. 81% to 90% d.31% to 40% j. 91% to 100% e. 41% to 50% k. Have no knowledge f. 51& to 60% Taking Our Organization’s Project Management Pulse

30 What % of your projects come in on time? a.0% to 10% g. 61% to 70% b.11% to 20% h. 71% to 80% c.21% to 30% i. 81% to 90% d.31% to 40% j. 91% to 100% e.41% to 50% k. Have no knowledge f.51& to 60% Every other % came in with single digits The highest was (k) at 44%, (h) was 14% The Study Response L= 20%L= 7% L= 20% L=33%

31 10. What % of your projects come in on budget? a. 0% to 10% g. 61% to 70% b. 11% to 20% h. 71% to 80% c. 21% to 30% i. 81% to 90% d. 31% to 40% j. 91% to 100% e. 41% to 50%k. Have no knowledge f. 51& to 60% Taking Our Organization’s Project Management Pulse

32 What % of your projects come in on budget? a. 0% to 10% g. 61% to 70% b. 11% to 20% h. 71% to 80% c. 21% to 30% i. 81% to 90% d. 31% to 40% j. 91% to 100% e. 41% to 50% k. Have no knowledge f. 51& to 60% Every % came in with single digits The highest was (k) at 64% The Study Response L=20%L= 7% L= 13% L= 26% L= 33%

33 11. What % of your projects meet requirements/specifications? a. 0% to 10% g. 61% to 70% b. 11% to 20% h. 71% to 80% c. 21% to 30% i. 81% to 90% d. 31% to 40% j. 91% to 100% e. 41% to 50%k. Have no knowledge f. 51& to 60% Taking Our Organization’s Project Management Pulse

34 What % of your projects meet requirements/specifications? a. 0% to 10% g. 61% to 70% b.11% to 20% h. 71% to 80% c.21% to 30% i. 81% to 90% d. 31% to 40% j. 91% to 100% e. 41% to 50% k. Have no knowledge f. 51& to 60% Again every % came in with single digits The highest was (k) at 64% The Study Response L= 9% L= 36% L= 45%

35 12. My current evaluation of the overall success (including implementation) of project management in our organization is (scale of please circle a number) PoorModerateGoodExcellent Taking Our Organization’s Project Management Pulse

36 My current evaluation of the overall success (including implementation) of project management in our organization is (scale of please circle a number) (1-2) (3-5) (6-8) (9-10) The Study Response 1 vote 54% 44% 0

37 Complaints – Top 5 “Ballpark” estimates are being turned into firm targets (29%) Team members are consistently pulled off current projects (21%) Project team is made up of ‘whoever “ is available (20%) Insufficient team and human resource skills No project prioritization (14%)

38 Recommendations Greater support by senior management Better balance of resources across projects Better scope definition; Get requirements More ‘buy-in’ from part-time team-mates Train Sponsors Standardized Methodology Stop Scope Creep etc., etc., etc.

39 So, does your Senior Management and Corporate Culture Support, Obstruct or Ignore Project Work?

40 Conclusion: Senior managers do not realize the impact of each of their decisions on project results.

41 Conclusion: There is lack of communication between senior management and project sponsors on one-side, and project managers and their teammates on the other.

42 Conclusion: Senior management may not understand the wasted dollars and consequential team burnout results from these decisions; plus added risks. If one project costs $100 million dollars and fails, the company (with an assumed pre-tax profit of 10%) must earn an additional one billion dollars – just to return the loss to shareholders.

43 Conclusion: Clearly, every organization in some way obstructs or ignores projects; even when they believe they are supporting them. But, they don’t…

44 Strange Side Effects Responses to requests to add the survey after these initial studies.

45 A Happy Outcome One client – Aerospace /Defense Company ‘L’

46 Next Steps…

47 Need Help Need more organizations to survey Is your organization a good candidate to study ? Need to schedule 100 people for the exact same class – exact same Pulse Survey Contact me for help to explain this unique study concept What your organization will get out of it PCI has hard copy in article form or as a ‘White Paper’ for distribution and study. Going to put this presentation on Chapter website

48 WHAT YOUR ORGANIZATION WILL GET OUT OF THIS Clear comparison with normative data Detailed, up to date company-specific information about what is working – what is not Worst case: 100 well trained Project Team Leaders Best Case: Eye opening results for Senior Management to start change process Concrete specific recommendations from the Project Managers in the trenches

49 John Censor PCI GLOBAL 411 Hackensack Ave Hackensack, NJ Thank you! ® Computer Simulation Training


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