aspects of the future of innovative projects...
TRANSCRIPT
Aspects of the Future of Innovative Projects Management
Russell D. Archibald, PhD (Hon), MSc, Fellow PMI, Honorary Fellow APM, PMP
Abstract
This paper proposes a working definition of 'innovative projects' and describes the
differences between these efforts and those projects that do not fall within this
definition. The impact is discussed of these differences on the planning, scheduling, risk
assessment, monitoring and controlling methods used to manage these different classes
of projects and programs, and the reasons that it is important to recognize these
differences within specific organizations are stated. Several recommendations and
conclusions based on these factors are then presented, and a challenge to the Conference
participants is presented regarding the future of innovative projects management.The
paper deals with efforts that convert innovative ideas into reality but does not explore
the sources of those innovative ideas. (The author gratefully acknowledges the
important comments provided by Stanslav Gasik on an earlier draft of this paper.)
Innovative Projects and Programs
Some people might argue that all projects and programs are “innovative”, since one
generally accepted definition of a project is “a temporary endeavor undertaken to create
a unique product service, or result” (PMI 2008 p. 442.) Programs are “a group of related
projects” (Ibid), but in recent years the concept of strategic transformational programs
includes both projects and operations within their scope.
Innovation is an important topic in economics, business, entrepreneurship,
design, technology, sociology, engineering – and project management. “Innovation” is
used to refer to both a process and the output or product of a process. Since a project is
an integrated collection of processes, an “innovative project” can earn that title by using
innovative processes and also by creating an innovative product or result.
The word “innovative” indicates newness or change that produces improvement
in either the process or the result. However, not every small change or improvement
deserves the label of “innovative.” The challenge here is to identify an improvement
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that is sufficiently important to be able to say that it is truly innovative. It is often stated
that “beauty is in the eye of the beholder,” and I believe that the same principle applies
here. A project (or program) can be labeled “innovative” when either 1) the
internal processes being used in its creation and execution, or 2) the result that is
produced, comprise significant changes and improvements compared to previous
processes or results.
This working definition of an innovative project or program focuses obviously
on the meaning of the word “significant.” One definition of significant is “having
meaning or effect,” and the best way to determine if a project is innovative is to
determine if the change it includes will have an effect on others. Will other project
managers adopt the new process? Will the improved results find more buyers or users?
Will the process or product improvements be adopted and used for future projects or
products?
Innovative Strategic Transformative versus Routine Programs and
Projects
It is necessary to recognize the differences between:
1. Innovative strategic transformative programs and projects that are intended to
produce significant changes and improvements in the organization, its processes,
or its products and services, including significant changes required by new laws
or regulations, and
2. Routine “delivery”, “commercial”, or “incremental process, service, or product
improvement” programs and projects that generate income and profit, reduce
cost, otherwise incrementally improve the services or products provided to the
enterprise‟s customers or constituents, within the enterprise‟s established
strategic vision and objectives, without creating significant changes within or for
the enterprise itself.
Pfeiffer (2004) describes an interesting approach to differentiating between what he
calls „deployment‟ and „development‟ projects. Table 1 shows his comparison of these
two project types.
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Basic Differences of Project Types
Deployment Project Development Project
Civil construction.
Installation of a system.
Development of new products.
Organization of social change.
Advance measured by products.
“Final Product” relatively clear.
Advance aimed at reducing uncertainties, measured
by indicators.
Life Cycle generally in form of cascade. Various life cycles possible.
Leadership style based on command and control. Leadership style focused on learning.
Highly structured information system. Less formal communication system.
Task oriented organization of Human Resources. Human Resources need to adapt and evolve in
order to respond to changes.
Progress relatively linear. Processes very dynamic.
Table 1. Basic Differences of Project Types. Source: Pfeiffer 2004, p 5.
Innovative strategic transformative programs: While the early definition of a
program as “consisting of a group of related projects” is still widely used in many
industries and governmental agencies, in recent years many authorities observe that
program management has evolved in many organizations to encompass a broader range
of activities with broader objectives. The PMI PMBOK (2008, p. 442) presents these
definitions:
“Program: A group of related projects managed in a coordinated way to obtain
benefits and control not available from managing them separately. Programs
may include elements of related work outside the scope of the discrete projects
in a program.”
“Program Management: The centralized coordinated management of a
program to achieve the program‟s strategic objectives and benefits.”
It is necessary to be clear when using these terms to know whether one is referring to
the more traditional (going back to the 1960s) meaning of “program” (as a group of
related projects) and “program management” and the newer, broader understanding that
a program can include both projects and operations, and rather than simply delivering
the benefits of a group of projects, a program can be innovative, strategic, and
transformative in nature. To assure clarity I prefer to use the term innovative strategic
transformative program to refer to such efforts. This valid, new definition shows us
that a strategic transformative program is truly an enterprise within the parent
enterprise, whereas a project, with its limited scope, time, and well-defined objectives
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and deliverables, is just that: a project. There can of course be large, major projects – in
addition to strategic programs – that are truly strategic and transformational in nature.
Several delivery projects grouped together do not usually make a strategic program, in
this latest understanding of what an enterprise-changing program is.
Many enterprises continue to use the earlier “traditional” definition of a
program, if that suits the situation within their enterprise. For example, an
engineering/construction company may have a contract consisting of 12 projects to
design, construct, and install fixed equipment in as many retail strip malls for one of its
major customers, a land/real estate development company. The seller of these 12
projects will probably not consider this to be a strategic program, but rather just another
commercial (or delivery) program (or perhaps a portfolio of projects) that is part of their
on-going business in compliance with their established business strategies. This contract
will not change the engineering/construction company in any significant way, since they
have designed and built many such shopping malls, although they may have to add
skilled people to their staff to execute this program. The company may consider the
buyer of these facilities to be one of their strategic clients, however, from a business
point of view. The customer, on the other hand, may consider this contract to be part of
an important strategic transformative program within their organization, as it probably
will require substantial changes within its on-going operational departments, especially,
for example, if these malls are located in a new geographic area in which the company
has not previously operated.
Innovative Process Improvement Projects
Is it possible and desirable to identify innovative projects prior to their completion? I
believe it is. If a project is truly innovative then it will involve significant changes, and
we can expect to encounter significant barriers to those changes. The purpose of
identifying the innovations is to anticipate those barriers and include in the project
methods for overcoming them.
Since there are two classes of innovative projects – process improvement and
product/result improvement – let us look at each of these separately. There are major
four areas in which project management process improvements can be carried out:
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1. Strategic project and program portfolio management,
2. Management development and training,
3. Organization of responsibilities, and
4. Integrative systems, tools, methods, and procedures. (Archibald, 2003, pp. 70-
72.)
Innovation and improvements can be applied or tested using innovative projects in all
four of these areas. It is usually recommended that major innovations in all of these
areas be tested using a pilot (innovative, if the improvements are „significant‟) project to
discover any unforeseen difficulties and prove out the expected benefits from the
innovations. Of course the entire enterprise – and not only the project management
discipline – provides opportunities for innovative process improvement in how the
enterprise conducts its business.
How to create an innovative project for process improvement? Let‟s use the
project life cycle management system/PLCMS as an example. The following approach
to introduce innovative improvements in this system is recommended (Archibald 2003,
pp. 73-5.).
Document the PLCMS for each project category: Once the life cycle process has
been designed and documented for each category or subcategory of projects (Table 2) it
is then possible to define and document the project life cycle management system for
each project category. Only when such documentation exists can the system be
improved on a systematic basis.
To establish a total quality management and innovative approach using systems
thinking to an organization‟s project management capabilities, and to avoid sub-optimal
improvements being introduced on a disjointed, piece-meal basis:
1. Document and describe the Project Life Cycle Management System
(PLCMS) for each project category within the organization. (For further
discussion of project categorization go to http://russarchibald.com/recent-papers-
presentations/categorizing-projects/.)
2. Define the life cycle phases for the project category.
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3. Identify the gates or decision/approval points between the life cycle phases.
4. Describe and define the process flow within each project phase and identify the
intermediate and final deliverables for each phase.
5. Identify and inter-relate the existing risk analysis, planning and control
processes and related documents and approvals within each phase. Use the
„storyboard‟ approach shown in Figure 1.
Re-Engineer the Integrated Process:
6. Apply appropriate re-engineering methods to each category’s PLCMS to:
a. Identify system constraints, gaps and weaknesses.
b. Relate the undesirable project results and possible causes to the PLCMS
wherever possible.
c. Redesign the PLCMS beginning with the most obvious constraints, gaps
and weaknesses and document the results.
7. Obtain needed agreements and conduct appropriate tests or analyses to prove out
the validity and feasibility of the proposed system revisions.
8. Plan, approve and execute the innovative improvement project to implement the
revised PLCMS after successful pilot testing.
9. Repeat the steps as required until an optimum achievable PLCMS has been
implemented.
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Project Categories: Each having similar life cycle phases and one unique
project management process
Examples
1. Administrative and Organizational Change
Projects
Re-engineered administrative process.
Office relocation.
2. Aerospace/Defense Projects
2.1 Systems acquisition
2.2 Space vehicle
2.3 Nuclear Non-Proliferation
New weapon system.
Major system upgrade.
Satellite development and launch.
Space station modification.
Nuclear weapons control and disposition
Global Threat Reduction Initiative (GTRI)
3. Communication Systems Projects New wired voice/data system.
4th generation wireless communication system.
4. Event Projects 2014 Winter Olympics Sochi
2016 Summer Olympics Rio de Janeiro
5. Facilities Projects
5.1 Facility decommissioning
5.2 Facility demolition
5.3 Facility maintenance and modification
5.4 Facility design/procurement/construction
Civil
Environmental
Industrial
Commercial
Residential
Closure of nuclear power station.
Demolition of high rise building.
Process plant maintenance turnaround.
Flood control dam, road interchange.
Nuclear production facilities cleanup..
New gas-fired power generation plant.
New shopping center, office building.
New sub-division development.
6. Information Systems (Software) Projects New project management information system.
(Information system hardware is considered to be
in the product development category.)
7. International Development Projects 7.1 Agriculture/rural development
7.2 Education
7.3 Health
7.4 Nutrition
7.5 Population
7.6 Small-scale enterprise
7.7 Infrastructure: energy (oil, gas, coal, power
generation and distribution), industrial,
telecommunications, transportation, urbanization,
water supply and sewage, irrigation)
People and process intensive projects
in developing countries funded by The World
Bank, regional development banks, US AID,
UNIDO, other UN, and government agencies; and
Capital/civil works intensive projects— often somewhat different from 5. Facility Projects
as they may include, as part of the project, creating
an organizational entity to operate and maintain the
facility, and lending agencies impose their project
life cycle and reporting requirements.
8. Product and Service Development Projects
8.1 Industrial product
8.2 Consumer product
8.3 Pharmaceutical product
8.4 Service (financial, other)
New earth-moving machine.
New automobile, new food product.
New cholesterol-lowering drug.
New life insurance/annuity offering.
9. Research and Development Projects
9.1 Environmental
9.2 Industrial
9.3 Economic development
9.4 Medical
9.5 Scientific
Measure changes in the ozone layer.
How to reduce pollutant emission.
Determine best crop for sub-Sahara Africa.
Test new treatment for breast cancer.
Determine the possibility of life on Mars.
10. Other Project Categories? Medical/Health, Disaster Recovery
Table 2. Recommended project categories, with each category (or subcategory)
having similar project life cycle phases. (Source: Adapted from Archibald 2003, pp.
35-6.)
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Figure 1. Storyboard Portrayal of a Complex Management Process
Using Specific Documents and Flowchart Symbols.
(Source: Humphreys and Associates.)
Example of Innovation in Project Management Processes: Agile IT
Project Life Cycle Management System
Over the past ten years we have seen major project management process innovations in
the development of Agile PM methods, mainly applied to IT development projects. The
fundamental concepts (from CADRE5 see http://www.cadre5.com/ ) of the Agile
approach are:
o Work as one team to build trust
o Work in short iterations to mitigate risk
o Deliver working software with each iteration to build a track record of
success
o Focus on business priorities to build customer satisfaction
o Review and adapt to continually improve.
An overview of the Agile concepts is shown in Figure 2. This is a significant innovation
compared to the traditional waterfall model that underlies most project management life
cycle management systems.
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Figure 2. Overview of Agile Approach with 2 to 4 Week Sprints.
The use of this approach on the development of the G2 Program Management
Information System by the Oak Ridge National Laboratory and CADRE5 for the U. S.
Department of Energy‟s Global Threat Reduction Initiative (GTRI) Program (see Figure
3) led to its being given the PMI 2010 Distinguished Project Award (Figure 4.) For
information on the GTRI Program that is managing over 1,000 projects in 130 countries
go to http://russarchibald.com/current-projects/gtri/nuclear-risk-reduction/.
The GTRI G2 IT development project not only used innovative PM processes
but it also produced innovative system characteristics that are important for its wide
variety of system users.
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Figure 3. Dashboard of the GTRI G2 Information System.
2010 PMI Distinguished Project Award
16 Figure 4. GTRI‟s G2 Project Management Information System Project
Wins 2010 PMI Distinguished Project Award.
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Innovative Products/Services/Results Development Projects
This second type of innovative projects creates new or significantly improved products,
services, or other end results. These results may also include new organizations, moving
into new markets with existing products, and adopting new technologies to improve
existing products or services, to name just a few examples. In fact, there are usually
major differences in the PLCMS for each of the sub-categories shown in Figure 2.
Innovative projects are found within all the project categories listed in Table 2, although
„product and service development projects‟ and „research and development projects‟ are
actually innovative project categories themselves.
Essentially all new product and new service projects are innovative in nature,
and as a result many of these projects are terminated prior to their final completion,
since there is great uncertainty associated with most product or service innovations, and
these must be tested as a part of the project itself. When the innovation fails to produce
the expected results the project is either modified or cancelled. Figure 5 shows a well-
known project life cycle process for product development; the project may be cancelled
at any of the Stage Gates shown if the results up to that point do not meet expectations.
Even when the new product or service is actually launched it may actually fail in the
marketplace. In that case it cannot be called innovative after all.
Figure 5. Overview of a typical Stage-Gate
TM process.
(Source: Cooper et al 2001, p 272. Stage-Gate is a registered trademark of R. G. Cooper
& Associates Consultant, Inc., a member company of the Product Development
Institute.)
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Conclusions and Recommendations
From this discussion the following conclusions and recommendations are put forth:
1. Identifying innovative projects and programs: Two classes of innovative
projects and programs exist within any project category: process innovation and
product/services/results innovation.
Recommendation: During the conception and authorization phases of any
proposed project or program, those that are expected to be truly innovative must
be identified so that they will be planned and managed appropriately and
effectively.
2. Identifying and overcoming the anticipated barriers to innovations:
Significant innovations will generally be met with resistance to the changes they
involve, but these barriers can be minimized or overcome when properly
anticipated.
Recommendation: Include in the innovative project plans appropriate actions to
overcome or avoid the expected barriers to change that will be erected by key
project stakeholders in response to the innovations.
3. Managing the innovative risks: Innovative projects and programs will have
different and usually greater uncertainties and risks associated with them
compared to delivery or commercial projects, including a greater risk of
cancellation prior to completion.
Recommendation: In addition to the usual risks associated with the category of
the project, identify the special innovative risks that are involved and include
these in the project risk management plan.
4. Developing and applying „innovative projects‟ management methods: The
differences between innovative projects and programs and the more routine
„delivery‟ or „commercial‟ projects and programs must be recognized and
accommodated in the project management principles and practices that are
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applied in each case, as well as in the qualifications of the assigned project
managers.
Recommendation: Augment your standard project management methods with
the enhancements needed to effectively define, plan, schedule, monitor and
control the innovative projects in your project inventory. This includes selecting
and training qualified project managers and assuring that the Executive
Sponsors for these projects are properly briefed on the special characteristics of
your innovative projects.
A Challenge Regarding the Future of Innovative Projects Management
What can each of us actually do to encourage and promulgate innovation in our daily
lives and jobs? Here are a few possibilities:
Think “outside the box”: Much has been written about this. If you Google this
phrase you will be referred to this web site, which presents a useful introduction
and many references to the subject of innovation:
http://en.wikipedia.org/wiki/Innovation.
“Poke the Box”: Take action – do not just think about it. (Godin 2011.)
Build a storyboard so that you can see the whole situation and then ask “Why do
we do this in this particular way?” “Is there a better, simpler, innovative way?”
“Make waves.” Stir things up in your personal life and where you earn your
living.
Add your own ideas here: __________________________________________
_______________________________________________________________
_______________________________________________________________
Each of us has the ability and opportunity to be an innovator!
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References
Archibald, Russell D., Managing High-Technology Programs and Projects, 3rd
ed.
New York: John Wiley & Sons, 2003.
Cooper, Robert G., and Elko J. Kleinschmidt, “Stage-Gate Systems for New Product
Success,” Marketing Management. I (4), 20-29. 1993. See www.prod-dev.com .
Godin, Seth, Poke the Box: When was the last time you did something for the first
time?”, USA: Do You Zoom, Inc., 2011. www.thedominoproject.com .
Pfeiffer, Peter, “Environmental Project Management in Brazilian Municipalities.
Experiences of a Brazil-Germany Technical Cooperation Project,” V Encontro de
Gerenciamento de Projetos, PMI do Distrito Federal/II Foro Latino Americano de
Governo, July 2004.
PMI Guide to the Project Management Body of Knowledge, 4th
ed., Project
Management Institute, Newtown Squarw, PA USA, 2008.
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