demandjustabouteverywhere.why? project...

4
S imply put, project man- agement is the discipline of planning, organizing and managing resources to bring about the successful completion of a specific proj- ect. Project management itself, however, is anything but sim- ple. It’s an incredible balance of asking the right questions before a project even goes ahead, engaging all stakehold- ers in a carefully laid out plan, diligent adherence to budgets and timelines, and thorough follow-up and project evalua- tion upon completion. And, in today’s economic downturn, project manage- ment is a critical piece of almost any private or public sector undertaking. “We can’t afford to deliver late or over budget anymore,” says David Barrett, program director of the Project Man- agement Centre of Excellence at York University’s Schulich Executive Education Centre, founder and group conference director for Project World Canada, and founder and edi- tor of Project Times magazine. “It doesn’t matter if it is a $10,000 new website or a $20- million building project, organizations need good busi- ness project management practices, tools and people,” says Mr. Barrett. “It is impor- tant to look at more of our ini- tiatives as individual projects – with a beginning, an end, a budget and a team of people. Running parts of a company as a series of projects allows for better control of budgets and outcomes.” Another efficiency of proj- ect management is productivi- ty. Dale Christenson, an asso- ciate faculty member in the Project Management Graduate Certificate program at Royal Roads University who works at the Project Management Centre of Excellence with the Government of British Colum- bia, says, “If you look at the literature, you’ll find that peo- ple working on projects are 40 to 60 per cent more produc- tive at that time than they are at other times. People identify with their project and become more focused and engaged.” In tough economic times, Dr. Christenson says, project managers become more criti- cal. “There is less room for error right now. We have to be very careful to ensure that we have the right project and that we do it the right way. That’s what project management brings.” For organizations, finding the right project manager is critically important. In many cases, that may mean going outside to a proj- ect management consulting company if there isn’t already anyone on the bench ready to go, says Mr. Barrett. Although, he adds, the right project manager might be found sitting at the desk just around the corner. “Many companies get their best proj- ect managers from within. They are organized leaders with strong people skills. They are empathetic, rational and calm in wild times.” He says often the hardest part of managing a project is the people. “It is a real mix of personalities: artists; diggers; dreamers; and doers – who all need to be managed through- out.” Gina Davidovic, director of Bay3000 Corporate Educa- tion – a company specializing in the training and develop- ment of project delivery skills that often consults on project recovery – says, “Very often, particularly if the stakeholders have a high level of influence, if we don’t manage them proactively and engage their support, they might hinder the project.” She says if a project goes awry, the project recovery process follows specific steps that require a strong emphasis on stakeholder management. “We diagnose the problem – looking at different aspects such as people, processes and outcomes – and identify where the gaps are. After that, if it is still seen as a benefit to continue the project...we cre- ate a new plan.” Mr. Barrett says portfolio management – the manage- ment of all projects within an organization – allows a com- pany to see where money is being spent across the whole organization. He says this is a very strategic initiative that capital- izes on the advantages of proj- ect management. “It is an effective way for organizations to link their project choices to their strategic directions.” Project management skills are applicable to any sector. Dr. Christenson says proj- ect managers’ education allows them to hone their skills in stakeholder relations, change management and lead- ership in order to be effective, go into any situation and apply the science successfully, regardless of the circum- stances they are in. Project World Canada’s project management confer- ences are heavily attended by the IT world, but also by financial institutions, small businesses, government and more, says Mr. Barrett. He says, in the last reces- sion, organizations cut out the use of project managers because they didn’t under- stand how critical the role was. Today, things are different. “Even though times are tight, the good news is that the role of the project manager isn’t being cut at all. Instead, corporations are continuing to invest in project management, even in this downturn, because they get it; they understand the benefits.” THE GLOBE AND MAIL THURSDAY, APRIL 23, 2009 PMI 1 A special information supplement A new era This product of the construction industry is in hot demand just about everywhere. Why? W ith roots dating back fewer than 100 years, the project manage- ment discipline has evolved during one of the most spirited periods of innovation and technology advancement the world has seen. These days, work is underway worldwide bringing this applied science into its sharpest focus yet through the development of a new project management stan- dard called ISO 21500. Just as there are ISO (International Organization for Standardization) standards for organizational quality (ISO 9000) and environmental management (ISO 14000), when completed the new ISO 21500 standard will provide guidance and principles defin- ing good practice in project management. “To ensure openness and that the standard is globally accepted, ISO has solicited information from different countries, companies and indi- viduals,” says Michael Kamel, chairman of the Canadian ISO 21500 Advisory Commit- tee. The mammoth undertak- ing began some three years ago, when the British Stan- dards Institute (BSI) approached the ISO about creating an international stan- dard for project management. Currently, experts from 31 countries are involved, includ- ing Canada through the Stan- dards Council of Canada. Five other countries are observing, while the Project Management Institute and International Project Management Associa- tion are among other major players. “We have multiple ways of working together,” says Dr. Kamel, a professional engi- neer who is also president of ISO 21500 emerging as new standard for project managers A fter 50 years of working with client Quebec Iron and Titanium (QIT), it was no surprise that Hatch was invited to undertake QIT’s most important and complicat- ed project yet. What turned heads, how- ever, is that Hatch turned chal- lenge into triumph, with the job earning the Project Man- agement Institute’s 2008 Inter- national Project of the Year Award. The task? To raise QIT’s upgraded slag (UGS) process- ing plant capacity to 375,000 tonnes a year – a 15 per cent increase – while the plant remained up and running. But safely adding produc- tion lines with zero down time needed very careful planning. Hatch assembled a core team of 10 employees who had an average of 15 to 20 years with Hatch, most of whom were already familiar with the QIT facility. “Through knowing your client very well, knowing their expectations, and working with them over many years, comes an efficient process,” says Kurt Strobele, chairman and CEO of Hatch. The Canadian-based com- pany Mr. Strobele leads pro- vides process consulting and design as well as project man- agement and construction management services, and sys- tems and process controls and advanced technologies. The firm’s client base spans North America, Africa, Asia, Aus- tralia, Europe and South America in three key sectors: mining and metals; energy; and private and public infra- structure. With no fewer than 2,000 projects under way at any given time – and currently managing $40 billion worth of projects around the globe – Hatch prides itself on its depth of experience and expertise. “You have to plan the work then work the plan,” says Mr. Strobele. “You plan every detail, and then execute the project according to the plan.” Even with exhaustive plan- ning, projects will have surpris- es, says Mr. Strobele, and that is where Hatch’s experience sets it apart. “We are quite unique at Hatch in that, rather than compromising quality by bringing in temporary staff, we have a high percentage of staff who have been with us for most of their careers. “These experienced folks have the ability to react and adjust accordingly,” he says. Focusing on four key areas – safety, staying on schedule, beating cost targets and remaining uncompromising on quality – the Hatch and QIT team executed the award-win- ning plant expansion. Hatch – without a single unplanned shutdown – was able to close the UGS project three months ahead of sched- ule and $15 million under budget. “We are extremely proud of the [International Project of the Year] award. We highly value the relationship that we have with QIT, and are equal- ly proud of our team that has delivered this,” says Mr. Stro- bele. “QIT entrusted Hatch with the full responsibility for equipment and process design, engineering, procurement, project and construction man- agement, as well as commis- sioning, all using our own methodologies and tools...and QIT, for its part, assigned its very best project and opera- tions people to the undertak- ing to ensure its ultimate suc- cess.” Beyond the award, a more telling accomplishment was that the plant performed as designed and actually pro- duced more than 400,000 tonnes of UGS – 25,000 tonnes more than originally planned. According to Mr. Strobele, that is the beauty of a well-exe- cuted project. “If the produc- tion targets are set, the equip- ment is properly designed and it all works perfectly, you will actually exceed the original targets.” Mr. Strobele says Hatch is currently working on some very exciting, leading-edge projects, including: lithium materials for cars that will run on batteries; oil sand extrac- tion resulting in fewer carbon dioxide emissions; and wind power. In 2007, for example, Hatch Energy designed more than 54 per cent of the installed wind power capacity in Canada. “We pride ourselves on doing difficult work, and doing it well,” says Mr. Strobele. Hatch wins 2009 PMI project of the year award Award-winning performance PROJECT MANAGEMENT See ISO 21500 Page PMI 3 Kurt Strobele, chairman and CEO of consulting engineering firm Hatch, says the firm prides itself on “doing difficult work, and doing it well.” PHOTO: MARK ZELINSKI • Offered in 19 cities across Canada in our university partner network, and taught by the very best instructors in Canada • Fast-tracked for busy professionals – 18 days spread over 5 months in convenient 2 and 3 day modules • Master all 9 knowledge areas of the PMBOK® Guide and prepare you to write your PMP® exam The Masters Certificate in Project Management is one of the most popular project management certificate programs in North America, currently graduating over 1,000 participants per year. Founded upon the Project Management Institute’s industry standard A Guide to the Project Management Body of Knowledge (PMBOK® Guide), it will give you the knowledge and tools you need to control your projects from initiation to closure – consistently delivering on time, on budget, within scope and beyond expectations. There has never been a better time to consolidate and certify your skills in project management… To request a detailed brochure for your region: Call toll free 1.800.667.9380 or visit www.masterscertificateinfo.com The Masters Certificate in Project Management was developed at The Schulich Executive Education Centre at York University, Toronto. PMI, PMBOK, PMP, and PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc. The Schulich Executive Education Centre is a PMI Registered Education Provider (R.E.P.), as designated by the Project Management Institute (PMI). The Masters Certificate in Project Management TORONTO: Schulich School of Business OTTAWA: Sprott School of Business, Carleton University MONTREAL & QUEBEC CITY: Université Laval EDMONTON & CALGARY: Learning and Performance Institute of Alberta ST. JOHN’S & CORNER BROOK: Memorial University of Newfoundland FREDERICTON: University of New Brunswick CHARLOTTETOWN: University of Prince Edward Island HALIFAX Saint Mary’s University SASKATOON & REGINA: University of Saskatchewan VANCOUVER, VICTORIA & PRINCE GEORGE: University of Victoria WATERLOO: University of Waterloo WINNIPEG, THOMPSON The University of Winnipeg CITY OFFERED / Host Institution UNIVERSITY-BASED CERTIFICATE IN PROJECT MANAGEMENT

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Page 1: demandjustabouteverywhere.Why? PROJECT MANAGEMENTv1.theglobeandmail.com/partners/free/sr/project_management/project... · Project World Canada s project management confer-ences are

S imply put, project man-agement is the disciplineof planning, organizing

and managing resources tobring about the successfulcompletion of a specific proj-ect.

Project management itself,however, is anything but sim-ple.

It’s an incredible balanceof asking the right questionsbefore a project even goesahead, engaging all stakehold-ers in a carefully laid out plan,diligent adherence to budgetsand timelines, and thoroughfollow-up and project evalua-tion upon completion.

And, in today’s economicdownturn, project manage-ment is a critical piece ofalmost any private or publicsector undertaking.

“We can’t afford to deliverlate or over budget anymore,”says David Barrett, programdirector of the Project Man-agement Centre of Excellenceat York University’s SchulichExecutive Education Centre,founder and group conferencedirector for Project WorldCanada, and founder and edi-tor of Project Times magazine.

“It doesn’t matter if it is a

$10,000 new website or a $20-million building project,organizations need good busi-ness project managementpractices, tools and people,”says Mr. Barrett. “It is impor-tant to look at more of our ini-tiatives as individual projects –with a beginning, an end, abudget and a team of people.Running parts of a companyas a series of projects allowsfor better control of budgetsand outcomes.”

Another efficiency of proj-ect management is productivi-ty.

Dale Christenson, an asso-ciate faculty member in theProject Management GraduateCertificate program at RoyalRoads University who worksat the Project ManagementCentre of Excellence with theGovernment of British Colum-bia, says, “If you look at theliterature, you’ll find that peo-ple working on projects are 40to 60 per cent more produc-tive at that time than they areat other times. People identifywith their project and becomemore focused and engaged.”

In tough economic times,Dr. Christenson says, projectmanagers become more criti-

cal. “There is less room forerror right now. We have to bevery careful to ensure that wehave the right project and thatwe do it the right way. That’swhat project managementbrings.”

For organizations, findingthe right project manager iscritically important.

In many cases, that maymean going outside to a proj-ect management consultingcompany if there isn’t alreadyanyone on the bench ready togo, says Mr. Barrett.

Although, he adds, theright project manager mightbe found sitting at the deskjust around the corner. “Manycompanies get their best proj-ect managers from within.They are organized leaderswith strong people skills. Theyare empathetic, rational andcalm in wild times.”

He says often the hardestpart of managing a project isthe people. “It is a real mix ofpersonalities: artists; diggers;dreamers; and doers – who allneed to be managed through-out.”

Gina Davidovic, directorof Bay3000 Corporate Educa-tion – a company specializing

in the training and develop-ment of project delivery skillsthat often consults on projectrecovery – says, “Very often,particularly if the stakeholdershave a high level of influence,if we don’t manage themproactively and engage theirsupport, they might hinder theproject.”

She says if a project goesawry, the project recoveryprocess follows specific stepsthat require a strong emphasison stakeholder management.“We diagnose the problem –looking at different aspectssuch as people, processes andoutcomes – and identifywhere the gaps are. After that,if it is still seen as a benefit tocontinue the project...we cre-ate a new plan.”

Mr. Barrett says portfolio

management – the manage-ment of all projects within anorganization – allows a com-pany to see where money isbeing spent across the wholeorganization.

He says this is a verystrategic initiative that capital-izes on the advantages of proj-ect management. “It is aneffective way for organizationsto link their project choices totheir strategic directions.”

Project management skillsare applicable to any sector.

Dr. Christenson says proj-ect managers’ educationallows them to hone theirskills in stakeholder relations,change management and lead-ership in order to be effective,go into any situation andapply the science successfully,regardless of the circum-

stances they are in.Project World Canada’s

project management confer-ences are heavily attended bythe IT world, but also byfinancial institutions, smallbusinesses, government andmore, says Mr. Barrett.

He says, in the last reces-sion, organizations cut out theuse of project managersbecause they didn’t under-stand how critical the rolewas.

Today, things are different.“Even though times are

tight, the good news is that therole of the project managerisn’t being cut at all. Instead,corporations are continuing toinvest in project management,even in this downturn,because they get it; theyunderstand the benefits.”

TH E G LOB E AND MA I LTHUR SDAY , A P R I L 2 3 , 2 0 0 9 PMI 1A special information supplement

A new eraThis product of the construction industry is in hotdemand just about everywhere.Why?

W ith roots dating backfewer than 100 years,the project manage-

ment discipline has evolvedduring one of the most spiritedperiods of innovation andtechnology advancement theworld has seen. These days,work is underway worldwidebringing this applied scienceinto its sharpest focus yetthrough the development of anew project management stan-

dard called ISO 21500.Just as there are ISO

(International Organizationfor Standardization) standardsfor organizational quality (ISO9000) and environmentalmanagement (ISO 14000),when completed the new ISO21500 standard will provideguidance and principles defin-ing good practice in projectmanagement.

“To ensure openness and

that the standard is globallyaccepted, ISO has solicitedinformation from differentcountries, companies and indi-viduals,” says Michael Kamel,chairman of the CanadianISO 21500 Advisory Commit-tee.

The mammoth undertak-ing began some three yearsago, when the British Stan-dards Institute (BSI)approached the ISO about

creating an international stan-dard for project management.Currently, experts from 31countries are involved, includ-ing Canada through the Stan-dards Council of Canada. Five

other countries are observing,while the Project ManagementInstitute and InternationalProject Management Associa-tion are among other majorplayers.

“We have multiple ways ofworking together,” says Dr.Kamel, a professional engi-neer who is also president of

ISO 21500 emerging as new standard for project managers

A fter 50 years of workingwith client Quebec Ironand Titanium (QIT), it

was no surprise that Hatch wasinvited to undertake QIT’smost important and complicat-ed project yet.

What turned heads, how-ever, is that Hatch turned chal-lenge into triumph, with thejob earning the Project Man-agement Institute’s 2008 Inter-national Project of the YearAward.

The task? To raise QIT’supgraded slag (UGS) process-ing plant capacity to 375,000tonnes a year – a 15 per centincrease – while the plantremained up and running.

But safely adding produc-tion lines with zero down timeneeded very careful planning.

Hatch assembled a coreteam of 10 employees whohad an average of 15 to 20years with Hatch, most ofwhom were already familiarwith the QIT facility.

“Through knowing yourclient very well, knowing theirexpectations, and workingwith them over many years,comes an efficient process,”says Kurt Strobele, chairmanand CEO of Hatch.

The Canadian-based com-pany Mr. Strobele leads pro-vides process consulting anddesign as well as project man-agement and constructionmanagement services, and sys-tems and process controls andadvanced technologies. Thefirm’s client base spans NorthAmerica, Africa, Asia, Aus-tralia, Europe and SouthAmerica in three key sectors:mining and metals; energy;and private and public infra-structure.

With no fewer than 2,000projects under way at anygiven time – and currentlymanaging $40 billion worth of

projects around the globe –Hatch prides itself on its depthof experience and expertise.

“You have to plan thework then work the plan,” saysMr. Strobele. “You plan everydetail, and then execute theproject according to the plan.”

Even with exhaustive plan-ning, projects will have surpris-es, says Mr. Strobele, and thatis where Hatch’s experiencesets it apart. “We are quiteunique at Hatch in that, ratherthan compromising quality bybringing in temporary staff, wehave a high percentage of staffwho have been with us formost of their careers.

“These experienced folkshave the ability to react andadjust accordingly,” he says.

Focusing on four key areas– safety, staying on schedule,beating cost targets andremaining uncompromising onquality – the Hatch and QITteam executed the award-win-ning plant expansion.

Hatch – without a singleunplanned shutdown – wasable to close the UGS projectthree months ahead of sched-

ule and $15 million underbudget.

“We are extremely proudof the [International Project ofthe Year] award. We highlyvalue the relationship that wehave with QIT, and are equal-ly proud of our team that hasdelivered this,” says Mr. Stro-bele.

“QIT entrusted Hatch withthe full responsibility forequipment and process design,engineering, procurement,project and construction man-agement, as well as commis-sioning, all using our ownmethodologies and tools...andQIT, for its part, assigned itsvery best project and opera-tions people to the undertak-ing to ensure its ultimate suc-cess.”

Beyond the award, a moretelling accomplishment wasthat the plant performed asdesigned and actually pro-duced more than 400,000tonnes of UGS – 25,000tonnes more than originallyplanned.

According to Mr. Strobele,that is the beauty of a well-exe-cuted project. “If the produc-tion targets are set, the equip-ment is properly designed andit all works perfectly, you willactually exceed the originaltargets.”

Mr. Strobele says Hatch iscurrently working on somevery exciting, leading-edgeprojects, including: lithiummaterials for cars that will runon batteries; oil sand extrac-tion resulting in fewer carbondioxide emissions; and windpower. In 2007, for example,Hatch Energy designed morethan 54 per cent of theinstalled wind power capacityin Canada.

“We pride ourselves ondoing difficult work, and doingit well,” says Mr. Strobele.

Hatch wins 2009 PMIproject of the year award

Award-winning performance

PROJECT MANAGEMENT

See ISO 21500 Page PMI 3

Kurt Strobele, chairman andCEO of consulting engineeringfirm Hatch, says the firmprides itself on“doing difficultwork, and doing it well.”PHOTO: MARK ZELINSKI

• Offered in 19 cities across Canada in ouruniversity partner network, and taught by thevery best instructors in Canada

• Fast-tracked for busy professionals – 18 daysspread over 5 months in convenient2 and 3 day modules

• Master all 9 knowledge areas of the PMBOK®Guide and prepare you to write your PMP® exam

The Masters Certificate in Project Management isone of the most popular project managementcertificate programs in North America, currentlygraduating over 1,000 participants per year.Founded upon the Project ManagementInstitute’s industry standard A Guide to theProject Management Body of Knowledge (PMBOK®Guide), it will give you the knowledge andtools you need to control your projects frominitiation to closure – consistently delivering ontime, on budget, within scope and beyondexpectations.

There hasnever been abetter time

to consolidateand certifyyour skillsin projectmanagement…

To request a detailed brochure for your region:Call toll free 1.800.667.9380 or visit

www.masterscertificateinfo.com

The Masters Certificate in Project Management was developed atThe Schulich Executive Education Centre at York University, Toronto.

PMI, PMBOK, PMP, and PMI Registered Education Provider logo areregistered marks of the Project Management Institute, Inc. The SchulichExecutive Education Centre is a PMI Registered Education Provider (R.E.P.),as designated by the Project Management Institute (PMI).

The Masters Certificate inProject Management TORONTO:

Schulich School ofBusiness

OTTAWA:Sprott School of Business,Carleton University

MONTREAL &QUEBEC CITY:Université Laval

EDMONTON & CALGARY:Learning and PerformanceInstitute of Alberta

ST. JOHN’S &CORNER BROOK:Memorial Universityof Newfoundland

FREDERICTON:University ofNew Brunswick

CHARLOTTETOWN:University ofPrince Edward Island

HALIFAXSaint Mary’s University

SASKATOON & REGINA:University ofSaskatchewan

VANCOUVER, VICTORIA& PRINCE GEORGE:University of Victoria

WATERLOO:University of Waterloo

WINNIPEG, THOMPSONThe University ofWinnipeg

CITY OFFERED / Host Institution

U N I V E R S I T Y - B A S E D C E R T I F I C AT E I N P R O J E C T M A N A G E M E N T

Page 2: demandjustabouteverywhere.Why? PROJECT MANAGEMENTv1.theglobeandmail.com/partners/free/sr/project_management/project... · Project World Canada s project management confer-ences are

By Mark E. Mullaly, PMP

President, InterthinkConsulting Incorporated

M ore than four yearsago, the Project Man-agement Institute set

out to identify the value thatorganizations receive in man-aging projects. The resulting$2.5 million project was thelargest research effort to date inproject management, involving65 organizations and 48researchers from around theworld. Co-led by Dr. JaniceThomas of Athabasca Univer-sity and myself, our goal was toidentify the value that projectmanagement provides toorganizations.

Organizations use projectsto develop new infrastructure,systems, products and services.Projects are essential to realiz-ing organizational strategy. Theway in which projects are man-aged, though, varies consider-ably.

The reasons that organiza-

tions choose to invest in howthey manage projects arenumerous. For many, they aresimply moving past the basicsof training staff and buyingnew software. Early strategiescan be extremely straightfor-ward, whether introducing sta-tus reporting or a process forinitiating projects. These sim-ple approaches can also resultin significant value for a time,but can quickly be taken forgranted.

A more robust projectmanagement capability is typi-cally only sought where the

organization consciously recog-nizes that project managementis a key means of executing itsstrategy. Even here, however,what is implemented can differsignificantly.

Organizations frequentlystart with capabilities based onstandards and ‘best practices.’Unfortunately, straight adop-tion of the practices of othersoften falls short or is not seenas appropriate or completelyrelevant. One of the key find-ings of the study is that theidea of best practices is not auniversal one. There is no oneright way to manage projects,any more than there is onevalue that organizations seekfrom their project manage-ment.

The organizations that trulysee value are those whoseimplemented practices best‘fit’ what they do, who theyare and how they operate.Effective approaches are thosethat are tailored and adaptedto the specific needs, circum-stances and culture of the indi-

vidual organization.Another insight from the

study is that while a level ofadaptation is key, it is also pos-sible to err on the side of too

much customization. Adaptinga project managementapproach to the culture andtypes of projects in an organi-zation, while not veering too

far from accepted practice,seems to create the right bal-ance between appropriateprocess and the ability toquickly bring new staff up tospeed.

The organizations realizingthe most value from how theymanage projects are those thatrecognize and value it is astrategic enabler. Their prac-tices are particular and uniqueto them, and are often seen asa source of proprietary com-petitive advantage. The toporganizations in the study areleaders in their markets andindustries that other organiza-tions emulate. They continueto invest in improvementtoday, because it is critical totheir continued success.

The leading project man-agement organizations did notget there overnight. They donot all value the same results,nor do they get to those resultsthe same way. For each, how-ever, project management is anessential means of creating andsustaining strategic value.

Insights from a 4-year research study

A special information supplementTH E G LOB E AND MA I L

THUR SDAY , A P R I L 2 3 , 2 0 0 9PMI 2

Best fit, not best practices

C an sustainability befree? In a word, yes,says Franklin Holt-

forster, president of MHPMProject Managers Inc. In fact,Mr. Holtforster argues that it isthe absence of sustainabilitythat is costly.

“Sustainability is free.Building owners can no longerafford to ignore it. They arebeing compelled to incorpo-rate sustainability into theirprojects because it is cost-com-petitive, mandated or simplyto ensure the best workingconditions,” he says.

MHPM is one of Canada’sleading project management

companies, with 14 officesfrom coast to coast. It success-fully completed the soon to beLEED Silver certified Rich-mond Olympic Oval on budg-et and on schedule.

Despite such success, crit-ics maintain that achievingsustainability through greenbuilding practices offers notrue return on investment.MHPM is proving themwrong, project by project.

“There is a great opportu-nity to improve building ener-gy performance, divert con-struction waste from landfills,and reduce water consump-tion in buildings,” says Mr.

Holtforster. “The opportunityto capture life-cycle cost-sav-ings has never been better.”

And, with buildings beingresponsible for an estimated40 per cent of all energy con-sumption, the opportunity toreduce greenhouse gases – aswell as operating costs – isenormous, says Mr. Holt-forster.

“Some owners of olderbuildings persist in denyingand resisting this emergingreality. To do otherwise wouldadmit their growing disadvan-tage in the marketplace,” saysMr. Holtforster, who says thepursuit of sustainability and

LEED (Leadership in Energyand Environmental Design)standards are now main-stream.

In fact, Turner Construc-tion’s 2008 Green BuildingMarket Barometer demon-strates the marketplace impor-tance of sustainability.

Of 750 commercial realestate executives, 72 per centassociated green buildings withhigher building values, and 68per cent believed green build-ing would lower operatingcosts. More than three-quartersalso anticipated improvedhealth and well-being forgreen building occupants.

“It is what our clientsexpect. And as sustainabilitybecomes increasingly impor-tant, we must provide themwith informed advice,” saysMr. Holtforster. “As projectmanagement knowledge lead-

ers, MHPM requires its 210project manager to maintainProject Management Profes-sional (PMP) certificationfrom the Project ManagementInstitute. As of several yearsago, we also required them toachieve LEED Accredited Pro-fessional (LEED AP) designa-tion from the Canadian GreenBuilding Council.”

MHPM currently hasmore than 50 LEED-registeredprojects underway.

“Historically, project man-agement has been comparedto a three-legged stool, sup-ported by cost, schedule andquality,” says Mr. Holtforster.Today, every successful projectneeds a fourth leg: sustainabili-ty. Project leadership demandsknowledge of this newdomain.”

One important area of con-sideration is understanding the

relative merits of different sus-tainability strategies. “Not allsustainability initiatives are cre-ated equal,” says Mr. Holt-forster. “The strongest advocatefor ensuring project ownersderive maximum value fromsustainability investment is anindependent project managerworking solely on their behalf.”

Mr. Holtforster says sus-tainability needs to be incorpo-rated in the project from thestart of the planning process,before design begins. “Aknowledgeable project manag-er will evaluate the merit ofavailable alternatives step bystep...to achieve the requiredpoint-rated improvements andultimately LEED certification.”

“If sustainability is anaffliction, then it is soon goingto be an epidemic, infectingour entire industry,” says Mr.Holtforster.

Project leadership demands knowledge of sustainability, argues leading manager

R arely is the manage-ment of large-scale proj-ects as interlaced with

the overlapping pressures oftimelines, budgets andaccountability as it is in thepublic service. Yet, as theGovernment of NewBrunswick is demonstrating,with effective project manage-ment even enormously com-plex and sensitive jobs can beexecuted efficiently.

Part of the province’s e-health strategy involves sever-al large IT initiatives withinthe Department of Health.

“We have 12 project man-agers managing various proj-ects within the department,”says Carole Sharpe, directorof e-health Projects, Innova-tion, e-health and Office of

Sustainability.Ms. Sharpe is working on

the province’s e-health agen-da. “Our major initiative is theimplementation of OnePatient, One Record – bring-ing the records from hospitalsystems, Medicare, physicians’offices and pharmacies all intoone database,” she says.

The project started in 2006and is geared up for fullimplementation by December2010.

With timelines that have tobe met to retain funding,mandatory internal due dili-gence and auditing practices,and public accountability atthe forefront, Ms. Sharpe saysproject management is centralto e-health’s success.

“Project managers are criti-

cal in that they are the holdersof all the information – itsavailability and accuracy – forpublic reporting,” says Ms.Sharpe.

As well, she adds that proj-ect managers have to be addi-tionally diligent during timesof economic constraints.“They provide information forcritical decisions on whichpieces to pull back on if abudget is reduced.”

With so many large proj-ects under way, NewBrunswick’s Department ofHealth has opened its projectmanagement processes toother departments. “It’s aboutsustainability; sharing process-es and expertise,” says Ms.Sharpe. “That is a good thing,especially in government.”

New Brunswick initiative highlights valueof PM in large-scale public projects

Value of PM FindingsThe results of the Value of Project Management project arebased upon 65 detailed case studies conducted in organi-zations from five different continents.

While the value that each organization saw was unique,a number of trends emerged from the study.

A quantifiable return on investment was one of thehoped-for outcomes of the study, but less than half of par-ticipating organizations saw tangible benefits such asincreased revenue, cost savings or improvements to cus-tomer and market share. With one exception, the focus ofeach organization seeing tangible value is selling projectmanagement services.

The value that most organizations saw was intangible,and focused on the ability to deliver strategic value andoutcomes. These outcomes included more efficient use ofhuman resources, improved corporate culture and moreeffective overall management approaches.

The most important factor for all organizations, howev-er, was the degree to which their approach truly fit theirstrategic goals.

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By Gregory BalestreroPresident & CEO, ProjectManagement Institute

W hen you think ofmajor projects inCanada do you pic-

ture the Canadian Pacific Rail-road winding through a canyonin the Rockies; or the Confed-eration Bridge linking PEI tothe mainland; or HydroQuébec’s immense James Bayhydroelectric complex?

Those are certainly majorprojects to be proud of. ButCanada’s project managerstoday are just as likely to bedeveloping software atResearch in Motion or Cog-nos; implementing new busi-ness processes for Royal Bankof Canada or EnCana; explor-ing virtual publishing forThomson; or trackingresource projects throughenvironmental review atOttawa’s Major Projects Man-agement Office.

Project management has

come a long way from itsroots in “hard hat” fields andmanufacturing. Today, it isindispensable for results, suc-cessful innovation and strate-gic execution across a range ofknowledge-based and serviceactivities. Businesses, govern-ment and not-for-profit organi-zations can all benefit fromproject management’s com-mon global language, stan-dards and toolkit of provenmethods.

Many of those can betraced to Canada. In 1976, thefledgling Université du

Québec had no engineeringschool. It inaugurated one ofthe world’s first graduate pro-grams in project managementwithin its business school inMontréal. “That turned out tobe the right place after all, asproject management thinkingspread far beyond construc-tion and engineering,” saidProfessor Brian Hobbs, whoholds the chair in project man-agement today at the world-class UQAM program.

In that same year, the Pro-ject Management Institute –itself a fledgling professionalassociation – held a congressin Montréal. Discussions thereled to development of PMI’sfirst practice standards andprofessional certification.Today, there are almost half amillion PMI members andcredential holders in morethan 170 countries, supportedby 11 global standards (includ-ing the PMBOK Guide), fivecredentials (including the Pro-ject Management Professionalor PMP), and a Global

Accreditation Center that cer-tifies degree programs, such asthe one at UQAM.

Canada’s 28,000 PMImembers, organized in 18chapters from Vancouver to St.

John’s, contribute by advanc-ing the rigour and clarity of theprofession. In addition toUQAM, there are also fineprograms under Blaize Reichat Simon Fraser University in

B.C., and Janice Thomas atAthabasca University in Alber-ta. With Mark Mullaly ofEdmonton, Professor Thomasco-directed a groundbreakingstudy of more than 60 organi-zations around the world, pub-lished last year as Researchingthe Value of Project Manage-ment, the highlights of whichMr. Mullaly has reported onthe opposing page of this spe-cial feature.

And our members con-tribute in practice. Walkthrough Montréal’s QuartierInternational, renovated in2000-04 so successfully that itgarnered 17 internationalawards, including PMI’s Pro-ject of the Year award for 2005.Yes, superior “hard hat” projectmanagement was needed tocover a sunken expressway,overhaul infrastructure andbuild a striking new square.But just as important were the“soft” skills of project align-ment and stakeholder commu-nication. They helped earn theproject a 100 per cent satisfac-tion rating from the city, whileincurring no litigation orclaims. That’s almost unheard-of for such an undertaking in abusy urban centre.

Those are the kind ofresults that keep the worldlooking to Canada for the bestin project management.

President and CEO of ProjectManagement Institute (PMI), Gre-gory Balestrero travels the worldinspiring business executives andgovernment leaders. With nearly500,000 members and credentialholders behind him, Mr. Balestreropromotes project, program andportfolio management as disciplinesthat can drive innovation, improveorganization performance andstrengthen competitive advantage.

This repor t was produced by RandallAnthony Communications Inc. (www.randallanthony.com) in conjunction with the adver tis ing depar tment of The Globe and Mail. R ichard Deacon, National Business Development Manager, [email protected].

TH E G LOB E AND MA I LTHUR SDAY , A P R I L 2 3 , 2 0 0 9 PMI 3A special information supplement

the Project Management Insti-tute’s Montreal chapter andmanager of corporate strategyconsulting at Deloitte.

The process involvesteams from each country pro-ducing components of thestandard independently; coun-try representatives meet peri-odically to discuss global andspecific issues.

“One of the main chal-lenges is the conversion ofeveryone to a common way ofdoing things,” says Dr. Kamel.

Unlike pure sciences suchas physics, Dr. Kamel saysproject management is an

applied science – one basedheavily on practices and anec-dotes of what works best. “It’sa grassroots discipline formal-ized initially by practitioners,rather than academics. Butbecause it is newer than othermanagement disciplines suchas operations, there are not asmany existing anecdotes.”

He says the work on ISO21500 is building a solid base– a global framework – onwhich further anecdotal evi-dence on best practices maybe built. “It will help us solidi-fy our understanding of thebest ways to do things under

various project circum-stances.”

Developing the standard isitself complex, but Dr. Kamelis confident the effort will beworthwhile. “With this stan-dard, we will start to under-stand the world of complexi-ties called management – andspecifically project manage-ment,” he says.

The next milestone: con-stituents will meet in Japanthis June to confer and contin-ue the advancement of a stan-dard that will eventuallyimpact project managementaround the world.

ISO 21500 from page PMI 1

Canadians demonstrate PM skillsInsight

About the ProjectManagement InstituteInternationally, PMI advocates project, program andportfolio management to enhance and accelerateorganizational change – driving innovation, improvingbottom line performance and strengthening competitiveadvantage. In Canada, locally run PMI chapters acrossthe nation welcome inquiries and participation.

British ColumbiaVancouver Island (Victoria): www.pmivancouverisland.comWest Coast BC (Vancouver): www.pmi.bc.ca

AlbertaNorth (Edmonton): www.pminac.comSouth (Calgary): www.pmisac.com

SaskatchewanNorth (Saskatoon): www.pminorthsask.comSouth (Regina): www.pmisouthsask.org

ManitobaWinnipeg: www.pmimanitoba.org

OntarioSouth Western Ontario (London): www.pmiswoc.orgCanada’s Technology Triangle (Kitchener): www.pmi-ctt.orgLakeshore (Mississauga): www.pmi-lakeshore.orgSouthern Ontario (Toronto): www.soc.pmi.on.caDurham Highlands (Oshawa): www.pmi-dhc.caOttawa Valley Outaouais (Ottawa): www.pmiovoc.org

QuebecMontreal: www.pmimontreal.orgLevis (Quebec City): www.pmiquebec.qc.ca

New BrunswickFredericton, Saint John, Moncton: www.pminb.ca

Nova ScotiaHalifax: www.pmi.ns.ca

Newfoundland & LabradorSt. John’s: www.pminl.ca

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A special information supplementTH E G LOB E AND MA I L

THUR SDAY , A P R I L 2 3 , 2 0 0 9PMI 4

O nce the sole domain ofengineers and the con-struction industry,

project management’s applica-tion has expanded over thelast 15 years, prompting Cana-da’s leading institutes of high-er learning to offer coursesthat prepare people for suc-cess with project managementskills and knowledge.

Just ask Shelley Zapp. TheVictoria, B.C.-based presidentof enterprise resource plan-ning firm Agresso NorthAmerica says the company’sproject management orienta-tion has enabled it to take onheavyweight competitors suchas Oracle and SAP.

“Anything operational canbe managed as a project,”says Ms. Zapp, a Project Man-agement Institute-certifiedproject management profes-sional who studied the disci-pline at Royal Roads Univer-sity. “We may be hiring a newHR person or managing thecompany pension plan, butwe’re really managing proj-ects.”

Canadian educationalinstitutions are helping execu-tives such as Ms. Zapp byoffering programs aimed at

working professionals. “I stud-ied project management atnight and on my own time,”she says.

The skill set is now con-sidered an essential elementof both career- and organiza-tion-building, says David Bar-rett, national program directorfor the Project ManagementCentre of Excellence at theSchulich Executive EducationCentre, which offers Canada’slargest Master’s Certificateand Project Management pro-gram in partnership with 11universities.

“Project management hasnow infiltrated organizationsin all industries, at all levels.We’ve realized that whateverthe size of the project – what-ever the where, how and who– if you don’t apply goodproject management practices,your chance of failure is great-ly increased. In this day andage, if you don’t deliver ontime and on budget, yourcompetitors will. We are train-ing people to be great projectmanagers,” he says.

Professor Emeritus SamMikhail, a professional engi-neer and project managementprofessional whose experience

includes consulting with theWorld Bank and the CanadianInternational DevelopmentAgency (CIDA), now directsthe University of Toronto’sPathways to Employment inCanadian Project Manage-ment.

“Many organizations nowsee the adoption of a projectand program portfolio man-

agement approach as an effec-tive way of conducting busi-ness,” he says. “It providesmore accountability for theallocation of resources andallows for more effective con-trol and strategic managementof the activities of the organi-zation in both public and pri-vate sectors.”

Prof. Mikhail notes disas-

ters in the financial industryhave further elevated publicawareness of the importanceof risk assessment and man-agement. “Risk managementis an integral part of the proj-ect management approach toconducting business…whetherit’s development of financialportfolios or development ofnew products.”

As a result, educators haveresponded to the broadeningapplicability of project man-agement skills and demand forthem. “Our approach is onethat’s based on making theopportunity to acquire projectmanagement knowledge andskill accessible to people fromall sectors of the economy,”says Prof. Mikhail.

Canadian schools preparing project managersIn demand skills

By Brad Loiselle, PMP

Vice President Marketing andTraining, Project ManagementCenter

I n the parlance of projectmanagement, a ‘WorkBreakdown Structure’ is the

foundation on which a success-ful project is built. The WBScontains such things as a pro-ject’s deliverables, how we

intend to do it, by whom aswell as its cost, expected com-pletion date and measures ofsuccess. The WBS is an impor-tant element within a project’sdevelopment and monitoringmethodologies, but is it onlyuseful within a project environ-ment? Has project manage-ment grown beyond its tradi-tional applications?

In the face of the economicdownswing and increased glob-

al competition, companies arerethinking how they do busi-ness; they are looking for bestpractice methodologies to helptheir businesses not only stayafloat, but remain competitivein these challenging times.

Developing opportunities,honing sales initiatives,rebranding marketing materi-als, reducing expenses and out-sourcing various functions areseveral operational responsibil-

ities that might or might notinclude ‘projects.’ Is it possible,however, that techniques andbest practices associated withthe science of project manage-ment could be applied toimprove operational execu-tion? I say yes.

In fact, applying projectmanagement methodologies tonon-project initiatives is quitesimple to do. For example,“scope management” can be

adapted to fit not only an oper-ational environment, but alsoan individual’s workload,enabling the better workloadunderstanding and manage-ment. I call this new process“Workload Scope Manage-ment.”

By leveraging scoping tech-niques such as WBS, a teammember could gain a betterunderstanding of the entireworkload: the inputs/outputs,the influences and constraints.Thus, he or she could better setgoals, timelines, required levelof effort; assign other teammembers into their workload;organize priorities; understandrisk and develop a clearer exe-cution and monitoring plan.Not all aspects of project man-agement will work in an opera-tional environment, but regard-less, the project managementdiscipline can help.

To make project manage-ment work for you in your job,it is vital to understand the dis-cipline. There are many ques-tions around the teachings ofproject management, andwhether or not the knowledgeapplication should be exclu-sively around projects, or ifeducation should be expandedto include the discipline froman individual’s workload rightthrough to a complex project.

In my experience, howev-er, the discipline of projectmanagement is not only scala-ble within a project, but out-side as well. Anyone interestedin bettering his or her workresults should consider study-ing project management.

Brad Loiselle can be reached [email protected].

Project management: understanding the power within

David Barrett, national program director for the Project Management Center of Excellence at the Schulich Executive EducationCentre, says the need for project management skills is pervasive across industries. “In this day and age, if you don’t deliver on timeand on budget, your competitors will.”Working in partnership with 11 universities across Canada Schulich offers the nation’slargest Masters Certificate and Project Management program. PHOTO: SUPPLIED

Breaking Through the Project Fog teachesproject managers and executives howto work as a team to effectively executeprojects in alignment with overall businessstrategies. This book bridges the gap thatoften develops between those who approveprojects and those who must deliver.

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