project management -strategic competency, & trends

Project Management -Strategic Competency, & Trends

Vijay Prasad M.Tech, PMP

Visiting Ukraine in partnership with SoftServe

4 March, 2011

Project Management a Strategic Competence

Project Management a The Strategic Competence

Excellence in Journey in Different Entities

Stage Stage Stage

Academia

STARTUP & EMERGING GROWTH TRANSFORMATION

Business Government SocietySelf

Stage OutcomeStartup & Emerging Differentiation , Sustenance

Growth Expansion, DiversityTransformation Leadership

Stage Focus

Startup & Emerging

Right Projects & Prioritization for strategic alignment

Logical grouping ofinterrelated projects to deliver higher value

Scope, Cost, Quality, and Time management of a project

Growth Transformation

Project Portfolio Management

Program Management

Project Management

Projects are the catalysts for excellence in all stages

Strategic ObjectivesDevelop new products /services

Enter new markets

Implement new ERP system

Prepare for SEI/CMM level 5 certificationReengineer Order Processing businessProcessDesign, construct new 8 lane highway

Design, build 100% Green House

Plan and complete PgMP certification

Enterprises, Societies, individuals have strategic objectives in order to advance in business, livelihood, in profession and personal life

Business, society, individuals all want to advance

Strategic ObjectivesDevelop new products /services

Enter new markets

Implement new ERP system

Prepare for SEI/CMM level 5 certificationReengineer Order Processing businessProcessDesign, construct new 8 lane highway

Design, build 100% Green House

Plan and complete PgMP certification

Strategic Objectives are

achieved through work

as Projects

Projects

Projects are means to achieve strategic objectives

Strategic: Projects drive business performance

• 600 executives worldwide surveyed by Economist Information Unit

• “What skill is most important in your staff?”– Project execution

• “What capability does your organization most need?”– The ability to implement strategic change

• Two ways of saying the same thing –- because strategic change is implemented through projects

Project Management is the Strategic competence

Source: PMI

Strategic: Projects steer the global economy

• More than 20% of gross global product is spent on fixed capital projects

• Add projects in IT, new product and service development, and other knowledge work

• 20 million people worldwide work on project teams full-time or part-time

Source: PMI

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The Word Is Out • 50% of project failure

traceable to poor (or no) project management:– Bad estimates/deadlines– Scope changes– Poor resource planning

• “80% of higher-performing projects use a certified project manager

• More innovative organizations extend project thinking to program and portfoliomanagement

PricewaterhouseCoopers survey, 2007

Source: PMI

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0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

1975 1985 1995 2005

PMI Membership Growth-An indication of importance

-of Project Management320,388July 2010

• Members in almost 200 countries• 250+ geographic chapters• 30 communities of practice

Source: PMI

Value of Project Management

A New Understanding of Value

•3-year, $2.5M study documented value through 500+ interviews at 65+ organizations worldwide

•Successful PM implementations must fit specific organizational culture, market, risk tolerance, etc. Source: PMI

Three Kinds of Value

• Execution: results, performance, project success, “on time and on budget”

• Integration: alignment, communication, breaking down silos, agility

• Learning: change management, innovation, new product /service /capability /business process

All three values pay off in high performance

Source: PMI

• In addition to better business outcomes, organizations reported indirect value such as:– Improvements in decision making.– Enhancement of communications and

collaboration.– Improvements in effective work cultures.– Alignment of practices, terminology and

values within the organization.– Overall effectiveness of the organization

and its management approach.– Improved transparency, clarity of structure,

roles and accountability.

Strategic: Projects transform organizations

Source: PMI

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It All Adds Up in Value

+ Learning+ Integration

Execution

Real business value

Real organizational value

Real strategic value

Source: PMI

Value of Project

Management

Enterprise Value

Execution ValueIntegration Value

Learning Value

Personal Value Societal Value

General Management

Value

Value Of Project Management

Personal Value

Self Confidence Sense of Achievement

Higher Motivation

Value Of Project Management

EnterpriseValue

Organizational ValueBusiness ValueStrategic Value

Helps implement ChangeIncreases Agility

Helps overcome obstacles as:Unstable Economy

Resource ShortagesSoaring Costs

Increased ComplexitiesHeightened CompetitionTechnological Changes

Value Of Project Management

Societal Value

Increased Confidence in Public and Private initiatives

Value Of Project Management

General Management

Value

Strenghtened functions:Planning

OrganizingDirecting

ControllingProblem solving

Value Of Project Management

Wedding Project

Fix the Muhurat time

Identify Events Identify Pundits

Identify ProjectManager

Setup PMO and establish n&s processes

Identify Track Leaders

Identify and estimate guests

Identify EventHalls

Identify acco for guests

Program individual events

Select caterers & finalize menus

Select Bands and musicfinalize menu

Identify decorators and finalize deco

Identify A/V vendor and finalize tasks

Identify photographer and tasks

Identify logistics V and finalize L

Identify Commneeds and procure devices

Buy jewelry, clothes, gifts,….

Invite guests Formal Closure

Programs, Processes, People, Products

Strategic: Illustration of Personal Competency

Trends in Project Management

Project Management Continues to Grow Strongand hence becomes more and more Strategic…

Technology

Verticalization

Standards

Tools & Techniques

Virtualization

Innovation

Global execution,Diversity

SustainabilityProject Management

Project Management Trends

Project Management becomes specific from :

Professional Standards to Industry specific to Company specific to Unit specific to Project specific

Project Management Trends

Becomes mainstream business process

Process Automation – Framework driven

Frameworks for sale

Project Management Network Services

Integration with Knowledge Management and Change Management

Global Project Management

Project Management TrendsOutsourcing

Components Maturity including PMIS

Academia, Business, Government, Society, Self embrace immensely

Enterprises will be evaluated on Execution

Enterprise PMO will gain prominence

Project Management Trends

Art component decreases while science component increases

Innovation and creativity will drive new dimensions

About Project Management Institute (PMI)

The Project Management Institute (PMI)www.pmi.org

• Leading Project Management association -founded by working project managers to share experience and best practices

• Not for profit, volunteer-driven• 500, 000 members+ credential holders around

185 countries• Offices in North America, Europe, Singapore,

India, China and Australia30

Source: PMI

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PMI’s Core PurposeAdvance science and practice of Project Management globally in a consistent way

Serve practitioners and organizations with:

• Standards that describe good practices

• Globally recognized credentials that certify project management expertise

• Resources for professional development, networking and community Source: PMI

PMI Standards: Globally Recognized

32

Source: PMI

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PMI Research• PMI supports the most extensive research program

in the profession

–More than 350 publications to date–16 projects currently under way

Source: PMI

• Certified Associate in Project Management (CAPM®)• Scheduling Professional (PMI-SP®)• Risk Management Professional (PMI-RMP®)

PMI Family of Credentials

• Project Management Professional (PMP®)• Program Management Professional (PgMP®)

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Certificate In Agile announcedSource: PMI

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Sustainability

• The foundation of corporate social responsibility (CSR)– Ethical and professional

responsibilities of project managers– Look at dependencies beyond the

“iron triangle”– Foster transparency and

accountability– Not just corporations but all

organizations… PMI included! Source: PMI

Project Management Institute Educational Foundation(www.pmief.org)

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Source: PMI

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Worldwide, organizations will embrace, value and utilize

project management, and attribute their success to it.

Making project management indispensable for business results.®

PMI’s Envisioned Goal

Source: PMI

Jack and Jill went up the hillTo fetch a pail of waterJack fell down and broke his crownAnd Jill came tumbling after.

This way, we will be moving from rhyme

to theme – with Project Management

Jack could have avoided this awful lumpBy a project approach and using best practices Like installing a pipe and a big pumpAnd handing Jill the invoices.

Adopted from Project Management: A Systems Approach to Planning, Scheduling, and Controlling - 2nd Edition by Dr. Harold Kerzner,

Academia Business

GovernmentSociety & Self

Academia Business

GovernmentSociety & Self

All entities should embrace more Project Management -The Strategic Competence!

I congratulate SoftServe and local Project Managers in Ukraine for starting theProject Management Community

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Thank you

My Contact Details

Vijay Prasad

vijayprasad001@gmail.com

Mobile: +91-98490-06070