1. Needs Identification Workshop Summary of Results PMI Asia Pacific PMI Congress Sunday, February 26, 2006

2. Session Objectives Understand key challenges that organizations face in successfully completing projects (in AP region) Understand root causes of these challenges Identify critical project management-related needs of practitioners and organizations regarding these challenges

3. Session Outline Problem definition: Open discussion on challenges facing organizations Problem exploration: Panel discussion of root causes of challenges Specific needs: Team breakouts on “needs”

4. Challenges

5. Challenges Identified Scope creep Impact of company political issues on projects Global PM issues (communication, culture, etc) PM process implementation and usage (within org) Conflicts between cultural issues and professional practice (in risk, scope, schedule mgmt) Vendor management Managing multitudes of new project delivery methods Defining costs and cost change acceptance Q: What challenges are impacting the successful completion of projects within organizations?

6. Root Causes of Challenges

7. Scope Creep Business needs changes Lack of scope definition –Only macro-level definition Desire to start project quickly Inability of salespeople to say “no” Nature of contracts in AP –“Contract is a living document” –Handshake vs. “western” closed contract Lack of customers education on requirement definition/mgmt Customers Customer views of scope creep Increasing requirements of functionality – Cultural issues of scope creep more serious in AP –Blame the client

8. Political Issues Changing priorities of businesses Privately held nature of AP companies Conflicting stakeholder issues/priorities Communication gaps between senior/junior mgmt Resource allocation, communication, priority gaps from top mgmt to middle mgmt. Corporate acquisitions/change in senior mgmt

9. Global PM Issues Multi-cultural project teams Communication issues when not face-to-face Reticence to challenge scope creep Lack of local knowledge of how to get project completed in region Face-to-face communication is quick/not detailed despite fact that oral communication important in AP Comprehension issues Lack of trust Political instability of relations between countries of team members Level of involvement of government authorities in project Ethics of local society (e.g., Bribery) Lack of common PM jargon Lack of standards for PM across regions Large diversity of cultures in AP region (hundreds of languages) Too many assumptions between cultures (can’t assume things are same from culture-to-culture) Religion and business conflicts (when they collide) AP concept that only a foreigner (white face/consultant) knows answers

10. PM Process Implementation Resistance to change Resistance because process is driven by government and/or customer (top down drivers) Lack of perceived value of process (NIH) –Partially due to lack of education on PM Desire to not be restricted by process –Some do not believe that a structured process is best –“we just need hard work to complete projects” Lack of understanding of need for process –Want to see immediate benefits

11. Defining Costs and Cost Change Acceptance Lack of available details when creating cost estimates Immature tools/techniques for cost est. Differing methods for creating cost est. –Cost+ vs. value add, etc. (buyer / supplier disconnect) Lack of scope definition Lack of standard for cost development –Industry/functional area specific High tolerance for project risk Lack of tracking of history of cost accuracy Separation of sales and delivery responsibilities

12. Needs

13. Scope creep – technical and human –Team must baseline scope, freeze requirements before presenting cost to client –PM must be trained in assertiveness, ability to say “no” (to creep) –Clients must be trained on requirement definition Impact of political issues –Change org structure to empower PMs (matrix vs. projectized) –Establish portfolio managers to minimize priority changes and ensure authority at PM level Q: What is needed (from an organizational standpoint or a practitioner standpoint) to help overcome these challenges?

14. Needs Global PM issues & PM process implementation –Employee education and training of cultural aspects of PM and PM processes Training must have “real-world” applicability Multiple new projects –Set business goals, prioritize projects according to these goals –Look at multiple views of portfolios (vertical and horizontal integration) Q: What is needed (from an organizational standpoint or a practitioner standpoint) to help overcome these challenges?

15. Needs Defining costs –Endorse “design-to-cost” approach - There will always be changes to scope, cost methods must realize this/incorporate into process Front-end = Open-ended Back-end = Firm price Vendor management –Build trust-based relationships with vendors –Agree on content, context and processes before proceeding –Agree on PM practices and change management process before proceeding –Clearly define roles and responsibilities Q: What is needed (from an organizational standpoint or a practitioner standpoint) to help overcome these challenges?

16. Needs Cultural conflicts in professional practice –Specifically plan for risks associated with cultural aspects of PM Create a role specifically for this (to plan for and react to problems) Educate top management on the need for this role/activity –Educate in multicultural aspects of PM in practical context –Educate top stakeholders Their specific role in project Respect for professional ethics to understand PM’s role Understand local culture as it pertains to project –Modify standards to fit the culture –Communication suited to culture –Document lessons learned about cultural aspects of PM Q: What is needed (from an organizational standpoint or a practitioner standpoint) to help overcome these challenges?