Change, communications and sponsorship

Since the Project Workout was first published, I have advocated projects as the vehicles for achieving strategic objectives or as I often say, projects are the vehicles of change. When I first wrote this in the late 90s, most people were still focused on deliverables and outputs, but, I am pleased to say the drive to towards benefits driven project management as standard is gaining momentum. This blog picks up on Steve Delgrosso’s views.
PMI’s Pulse of the Profession reviews are really starting to focus on the outcomes from projects being the most critical thing from senior management a senior management viewpoint (hurray!). Steve DelGrosso, from PMI, gives his views on what the priorities need to be, if organisations are to keep pace with the escalating rate of change. In his view, these are:

  • Priority One – communications
  • Priority Two – sponsor engagement

This mirrors McKinsey’s Colin Price’s findings about the essential role of the project sponsor in his book, Beyond Performance Management. It also mirrors the view that to be effective, senior management must not only have a vision, but also be able to communicate it.
A look at PMI’s research shows that organizations report that only 52 percent of their strategic initiatives are successful. The failure of strategic initiatives has a significantly greater financial impact than just project failure: they say that nearly 15 percent of every dollar spent on strategic initiatives is wasted–US$149 million for every US$1 billion spent. By comparison, PMI’s 2014 Pulse of the Profession® study finds that US$109 million is wasted for every US$1 billion invested in projects.

So, not much seems to have changed since David Munt, founder of GenSight, did a similar study in 2002. His research suggested between 35 and 50 per cent of all investment is directed to unsuccessful projects and that about 30 per cent of project investment by FTSE 100 organisations in 2000 actually destroyed shareholder value!
Strategic initiatives are the programmes and projects though which an organization’s strategy is implemented. By their nature, strategic initiatives drive change to transform an organization from current state to future state.
Failed projects can result in huge financial losses for an organization, but a failed strategic initiative has an impact far beyond just the costs of the initiative. When an organization embarks on change, it’s likely that systems, processes, vendors and perhaps even the overall organizational mindset (or mission) will be impacted. Failure to successfully enable sustainable change can lead to an organization losing its competitive advantage.

Select the right projects to support your strategy Selecting the right projects will help you achieve your objectives by realising benefits which support your strategy.

Select the right projects to support your strategy

I have a feeling there will be a lot more blogs on this topic as it challenges the prevalent “iron triangle” or “triple constraint” view of project management, and builds on it. Developers of standard and proprietary methods take note! In the meantime, have a look at The Project Workout, Chapter 3, page 50 and Chapter 15, page 198, in particular.

Be a nut, be a leader!

Leadership

A leaders on his or her own is useless. There must be followers and the “first follower” is the most important, if change is to happen.

Do you think leadership is glorious? Is change totally dependent on the
leader? Do you think if a person looks ridiculous, they aren’t a leader?
Have a look at this video from Derek Sivers, I think you’ll enjoy it . . . and you might change your views on leadership:

See the Dancing Guy video.

So what’s the bottom line?

  1. If you are a version of the shirtless dancing guy, all alone, remember the importance of nurturing your first few followers as equals, making everything clearly about the movement, not you.
  2. Be public. Be easy to follow!
  3. But the biggest lesson here – did you catch it? – Leadership is over-glorified
  4. It started with the shirtless nut, and he’ll get all the credit, but it was the first follower who transformed a lone nut into a leader.
  5. There is no movement without the first follower.

We’re told we all need to be leaders, but that would be really ineffective. The best way to make a movement, if you really care, is to courageously follow and show others how to follow. So, when you find a lone nut doing something great . . . .

Have the guts to be the first person to stand up and join in.

Source: Derek Sivers; www.sivers.org

Agile Delivery in Large Enterprises

There is no point in speeding if you are on the wrong road.

There is no point in speeding if you are on the wrong road.

Recently, I went to an “Agile Edge” conference at Valtech to hear Greg Hutchings talk on “Introducing Agile”. Here is what I learned.

You must know WHY you want to “do Agile”
The normal reasons people state for wanting agile are to:
– reduce time to market
– be more flexible
– be more efficient (less cost)
– increase quality.
All very laudable and valid reasons but Greg said there was one, less quoted, which he believed had the greatest leverage  – to increase customer intimacy. By working with customers, you build up a lasting relationship which can survive many of the knocks of corporate life. Business is, at heart, about people working with people. Efficiency is not generally a compelling case for Agile; flexibility and time to market are usually better. If you launch your services early, then your benefits flow earlier, often dwarfing the cost aspects (although costs centre accountants might not look at it that way!).

One thing Greg warned of was not to aim for all those benefits; you’ll just fail. His advice was to choose just one, then aim and focus on it; keep an eye on the others, but don’t let them drive you. He also warned that some things may get worse, but I am sure you “change-savvy” readers know all about that.

Who wants it anyway?
Greg’s key message was, if there is no-one in the Executive (top) level of the company who wants Agile, don’t waste your time. Successful implementations should initially come top down, with the senior leadership team signed up and then management trained on what it’s all about. You can then come bottom up with the training of the practitioners. Why? Agile relies on the right behaviours which, in some organisations, can look very strange or even appear subversive!  (See case study 2, later.)  You also need to make sure your sales force and customer services people are trained, so they can explain effectively to customers what Agile is all about. Finally, traditional contracts may no longer be appropriate as they tend to build in rigidity which works against the flexibility of Agile. Naturally, the customers also have to be involved; if they aren’t, you have no “customer intimacy” and Agile becomes futile!

Big bang or incremental adoption?
Incremental every time! In this way you have the space to “inspect and adapt” your approaches to suit your organisation. Greg did come across a company where they successfully implemented a pilot in three months and the senior leadership team was so impressed, the rest of the company was instructed to roll it out in the next three months. The manager commented that he did it . . . . but it was nowhere near as well done as the first tranche, as he was pushed to hit schedule deadlines rather than make sure it was right. It seems his leadership team had the view that new methods can be turned on and off like a switch. Will we ever learn?

There is no substitute for face to face working
One question from the floor concerned the trend for distributed, remote and home working. Greg was very clear that despite having wikis, teleconferencing, and all that stuff, there is no substitute for face to face work for critical activities. The hidden cost to an organisation of not letting people truly work together can be vast.

Case study 1 – FAILURE
Agile was implemented bottom up on an incremental basis. There was no top-down support. The consultants were removed from the company as what was exposed during the implementation work was too embarrassing for the incumbent Vice President. The implementation had no top down sponsorship nor effective governance. Most of the staff involved were fired. Six months later the Vice President in charge of the area lost his job for covering up some critical business issues. That company now has new leadership and is getting on much better . . . and adopting Agile.

Case study 2 – you’ll die waiting
The second case study is a large, global industrial company. They had executive sponsorship, a core team to implement it but very few people engaged in the outer global reaches of the company. After four years, they decided that Agile was a valid approach to IT development and may be used!

Case study 3 – A large telco – SUCCESS!

This organisation had executive sponsorship, a core team to lead and manage the implementation and good geographic representation. They focussed on product development but were careful to choose which developments in their portfolio would benefit most. They discounted the products at the end of their life-cycle, the cash cows and the highly innovative. They focussed on the others.

. . . . and then Greg ran out of time.

Summing it up
My own view is that I can’t see many customers wanting a fixed timescale and price for a variable output from their contractors. So, going in with the approach with an unconvinced customer may be dodgy. Often, however, a company will have many long term contracts which include “future services” clauses to cover stuff the customer wants but hasn’t a clue as to what the real requirements will be. Surely this is the opportunity space for using Agile?

Business change through effective sponsorship

Is leading from the front always right?

All organisations have to change at some time, some more frequently than others. Something, somewhere always needs to be created or improved. Many leading organisations are now directing and managing change by using business-led, programme and project management techniques. As organisations have become more integrated through the use of complex systems and processes, the effectiveness of managing change through the traditional functional hierarchy has diminished. Programmes and projects, in the modern sense, are now strategic management tools, ideally suited to the complex organisations of today. Business leaders ignore the newly reborn discipline of enterprise-wide programme and project management at their peril. It is no longer the preserve of specialists in the engineering or IT sectors, but something every director and manager should have in their ‘tool box’. Well directed and managed programmes and projects enable an organisation to react and adapt speedily to meet the challenges of the competitive environment, ensuring the organisation drives towards attainable and visible corporate goals. Effective business-led programme and project management will increase the likelihood of business success by ensuring visibility, accountability and control over business change activities. In particular by:

  • linking business needs directly to visible actions plans;
  • enabling you to manage across every department in your organisation;
  • ensuring accountability can be assigned, safe in the knowledge any gaps are covered;
  • providing a flexible and responsive method to respond to changing needs;
  • focusing on priorities;
  • enabling you to track progress toward your business objectives.

It is not just the “project geeks” saying this now, but also strategy consultants, like McKinsey & Co. All senior executives should be leaders of change within the organisation. For some this may be a new experience. They will be in the position of advocating a new order, acting in the interest of the wider company needs rather than those of the department or line director they serve. For the first time, they may be operating outside their own departmental or functional structure. They will have to work with people they don’t have direct authority over and this may require all their influencing and leadership skills if they are to achieve their aims.

To summarise, the sponsor is the business advocate accountable for directing a programme or project to ensure the business objectives are met and benefits realised. In simple terms the sponsor role can be referred, exactly as that:

  • Programme sponsor
  • Project sponsor.

The UK public sector calls the roles “Project Executive”, for a project and “Senior Responsible Owner” for a programme. These are derived from the MSP and PRINCE2 methodologies respectively.

If I am a programme or project manager, what can I expect of my sponsor?  And what can I do if he or she doesn’t meet those expectations? You should expect your sponsor to:

  • Take an interest – their interest! It’s their programme or project!
  • Communicate their vision;
  • Be clear on what outcomes they need;
  • Agree the governance;
  • Keep you informed of the business context;
  • Challenge you;
  • Be realistic;
  • Make decisions and give you direction; and
  • Accept that all risks are their risks!

If you don’t get what you need, try acting as if they are the perfect sponsor:

Remember it’s “their project”, not yours;

  • Make your “personal contract” with them;
  • Assume they want to undertake their role;
  • Make requests for direction and decisions;
  • Look at the world through their eyes – outcomes and benefits;
  • Make the risks plain – their risks;
  • Report the world through their eyes;
  • Don’t assume or expect them to understand your “jargon”; and
  • Don’t try to take over their role.

You can read the full article from the Project Workout Community, articles section. In the meantime, who do you think is accountable for “making change happen”? Is there a simple answer? Is a project manager a change manager? Is a change manager a project manager? I suspect it all depends on how you views those words.