Project management excellence is not enough

Beware of doing too many projects, even if they do fit your strategy and have a good business case.

Beware of doing too many projects, even if they do fit your strategy and have a good business case.

The opening plenary sessions of the 2013 Gartner PPM and IT Summit in London, set the tone for a mind-set shift in how Gartner looks at “IT management”.  To date they have focussed in on “IT” and the “CIO”, and, in my view, perpetuating the gap between what they term “IT” and the “Business” . This year, to my delight, they were starting to talk about “the business” and IT’s part in it. It’s a brave thing to do, but the right thing to do. Most organisations still have their IT split off as separate organisational units ,with a separate strategy and loads of money, which tries to work out what “the business” wants and then all too often fails to meet those expectations. What is guaranteed though, is if you give an IT department money, they will spend it all, even if the business need is unclear. . . . that’s the “business’” fault!

Mike Langley from PMI was a key note speaker and gave his view on the all important question of “how do we ensure our (IT) projects fit our strategy?”  Notice I put “IT” in brackets – the department is irrelevant as we want all our projects to align with strategy . . . don’t we?

Mike based his talk on PMI’s recent “Pulse of the profession” survey.

We are all familiar with “strategy” and “execution” (sorry for using the “e” word, but when at an American conference, you can’t get away from it!).  The story is that the business leaders set the strategy and then the “business” implements it. If it goes wrong, it’s usually the fault of the business and their dreadful requirements and poor implementation!  What new research for Harvard Business Review is now talking about is that implementation is part of strategy and we should not separate them. (look out McKinsey and Bain!.) After all, if your strategy doesn’t include how to implement itself, then it’s a poor strategy.  The new buzz words for making this happen is “portfolio management”. This is a discipline of making sure that the programmes, projects and other activities that a business decides to do are the rights ones in terms of strategic direction, fit and balance in terms of risk and skills use. It’s all about selecting the right projects.

Mike says his research shows that organisations which are good at portfolio management are more agile, and have better project outcomes. Portfolio management is integral to how the top level leaders want to manage their business; it’s an integral part of business planning. Traditional business planning adds up costs of departmental budgets, checks against revenue and makes sure there is “interlock” if different departments need to work together.  Usually this is done a year or so in advance and is therefore totally pointless for organisations in fast moving environments. It is however a neat and simplistic way to blame people when things go wrong or costs to much. Hence, getting portfolio management working right is as much to do with mind-set as having the processes, systems and operating model.

Getting this right, means organisations can continuously tune their plans, not be tied to outdated annual budgets and use their people and money where the benefit is most attractive.  The money will follow the business need, not the department doing the work. Now that is what I call true organisational agility and if you have read the Project Workout, it will be very familiar to you.

This isn’t new as a concept, but it is something many organisations struggle with.  Have a look at this article: Excellence is not enough from the Project Workout “articles” web page.

About Robert Buttrick
Robert Buttrick is the author of the Project Workout. He has been providing advice and guidance since the publication of the first edition of his best-selling “flagship” book, the Project Workout in 1997 and now its 4th edition. The principles laid out in the publications, take a holistic view, ensuring that culture, systems, processes and accountabilities are mutually compatible. The book has been translated into French, Korean, Chinese, Russian and Romanian . . . but not yet into Latin! Robert received a Distinguished Service Certificate from BSI for services to national and international project management standards; he is a Member of the Chartered Institute of Marketing, Chartered Engineer and an Honorary Fellow of the Association for Project Management. He currently works as a consultant and is a Visiting Teaching Fellow at the University of Warwick.

2 Responses to Project management excellence is not enough

  1. Lydia Perry says:

    Thanks . That was very helpful. There is a lot of activity going around in my company about scrum and some teams are having daily stand ups etc. Do you think that like PMP, having a Scrum certification will help me in my career?

    • A PMP and Scrum certificate are not equivalent. The PMP is all about project management, whereas Scrum is about software development. If however, you are working on projects which have a significant amount of agile delivery, you ought to be aware of how this works and how you dovetail it into classic project management. perhaps I’ll write a blog on that! In the meantime look at the “Agile” stream on my blog: https://projectworkout.wordpress.com/category/agile/

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