Needs Identification Workshop

Summary of Results

PMI Asia Pacific PMI CongressSunday, February 26, 2006

Session Objectives

• Understand key challenges that organizations face in successfully completing projects (in AP region)

• Understand root causes of these challenges

• Identify critical project management-related needs of practitioners and organizations regarding these challenges

Session Outline

• Problem definition: Open discussion on challenges facing organizations

• Problem exploration: Panel discussion of root causes of challenges

• Specific needs: Team breakouts on “needs”

Challenges

Challenges Identified

• Scope creep

• Impact of company political issues on projects

• Global PM issues (communication, culture, etc)

• PM process implementation and usage (within org)

• Conflicts between cultural issues and professional practice (in risk, scope, schedule mgmt)

• Vendor management

• Managing multitudes of new project delivery methods

• Defining costs and cost change acceptance

Q: What challenges are impacting the successful completion of projects within organizations?

Root Causes of Challenges

Scope Creep• Business needs changes• Lack of scope definition

– Only macro-level definition• Desire to start project quickly• Inability of salespeople to say “no” • Nature of contracts in AP

– “Contract is a living document”– Handshake vs. “western” closed contract

• Lack of customers education on requirement definition/mgmt

• Customers• Customer views of scope creep• Increasing requirements of functionality

– Cultural issues of scope creep more serious in AP

–Blame the client

Political Issues

• Changing priorities of businesses• Privately held nature of AP companies• Conflicting stakeholder issues/priorities• Communication gaps between senior/junior

mgmt• Resource allocation, communication, priority

gaps from top mgmt to middle mgmt.• Corporate acquisitions/change in senior

mgmt

Global PM Issues• Multi-cultural project teams• Communication issues when not face-to-face• Reticence to challenge scope creep• Lack of local knowledge of how to get project completed in region• Face-to-face communication is quick/not detailed despite fact that oral

communication important in AP• Comprehension issues• Lack of trust• Political instability of relations between countries of team members• Level of involvement of government authorities in project• Ethics of local society (e.g., Bribery)• Lack of common PM jargon• Lack of standards for PM across regions• Large diversity of cultures in AP region (hundreds of languages)• Too many assumptions between cultures (can’t assume things are same

from culture-to-culture)• Religion and business conflicts (when they collide)• AP concept that only a foreigner (white face/consultant) knows answers

PM Process Implementation• Resistance to change • Resistance because process is driven by government

and/or customer (top down drivers)• Lack of perceived value of process (NIH)

– Partially due to lack of education on PM• Desire to not be restricted by process

– Some do not believe that a structured process is best

– “we just need hard work to complete projects”• Lack of understanding of need for process

– Want to see immediate benefits

Defining Costs and Cost Change Acceptance• Lack of available details when creating cost

estimates• Immature tools/techniques for cost est.• Differing methods for creating cost est.

– Cost+ vs. value add, etc. (buyer / supplier disconnect)

• Lack of scope definition• Lack of standard for cost development

– Industry/functional area specific

• High tolerance for project risk• Lack of tracking of history of cost accuracy• Separation of sales and delivery responsibilities

Needs

Needs• Scope creep – technical and human

– Team must baseline scope, freeze requirements before presenting cost to client

– PM must be trained in assertiveness, ability to say “no” (to creep)

– Clients must be trained on requirement definition

• Impact of political issues– Change org structure to empower PMs (matrix vs.

projectized)

– Establish portfolio managers to minimize priority changes and ensure authority at PM level

Q: What is needed (from an organizational standpoint or a practitioner standpoint) to help overcome these challenges?

Needs

• Global PM issues & PM process implementation– Employee education and training of cultural aspects of PM and

PM processes

• Training must have “real-world” applicability

• Multiple new projects– Set business goals, prioritize projects according to these goals

– Look at multiple views of portfolios (vertical and horizontal integration)

Q: What is needed (from an organizational standpoint or a practitioner standpoint) to help overcome these challenges?

Needs• Defining costs

– Endorse “design-to-cost” approach - There will always be changes to scope, cost methods must realize this/incorporate into process

• Front-end = Open-ended• Back-end = Firm price

• Vendor management– Build trust-based relationships with vendors– Agree on content, context and processes before proceeding– Agree on PM practices and change management process before

proceeding– Clearly define roles and responsibilities

Q: What is needed (from an organizational standpoint or a practitioner standpoint) to help overcome these challenges?

Needs• Cultural conflicts in professional practice

– Specifically plan for risks associated with cultural aspects of PM

• Create a role specifically for this (to plan for and react to problems)• Educate top management on the need for this role/activity

– Educate in multicultural aspects of PM in practical context– Educate top stakeholders

• Their specific role in project• Respect for professional ethics to understand PM’s role• Understand local culture as it pertains to project

– Modify standards to fit the culture– Communication suited to culture– Document lessons learned about cultural aspects of PM

Q: What is needed (from an organizational standpoint or a practitioner standpoint) to help overcome these challenges?