projects are a business tool

© Totally Optimized Projects, 2010-2014

Briefing

Projects are a business tool

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© Totally Optimized Projects, 2014

Projects are a business tool - to be directed and managed by the business

Projects are how you execute your strategy and business plans, how you improve your business and its competitiveness.

Projects are a business tool.

This simple statement challenges how must organizations think of projects.

Here we describe the common understanding of projects - if you have any of these beliefs or attributes you need to take action - now - as they are destroying significant business value.

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The common understanding of projects

Few managers, executives and board members have in-depth understanding of projects, project principles and their critical success factors.

They are, therefore, mostly dependent on what they’ve been told, seen, heard and experienced as a participant or recipient.

This is not a strong base.

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Through this ‘process’ managers are told that project management and methods will deliver the goods - but that projects are complex and risky.

IE You’re reliant on the project team, but don’t get your hopes up too high.

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Business management, therefore, largely understands its role as guiding, supporting and enabling the project team - making decisions, allocating resources - while accepting project-based tools, techniques, reports and processes as ‘best practice’.

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Delivery of poor and compromised results are common - but that’s what’s expected.

So expectations are low and ‘not what we wanted’ results are tolerated.

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On the basis that you can only manage what you can measure, management insists on tight control over time and cost.

But, achievement of desired business outcomes, benefits and value CAN be measured - separately and cumulatively (however, this is not widely recognized or supported)

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Meanwhile, delivery of project deliverables (outputs/capabilities) and their use in the business remains the goal. This equates to ‘project completion’.

And, if the project is completed on time and on budget - this equals ‘success’.

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Meanwhile, business benefits and value are expected to be delivered automatically, are hoped for or are just not on the radar.

Or, they may be baked into future budgets to ‘guarantee’ their delivery - an approach that only guarantees their minimization.

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Change is a constant

Your organization will only survive if it is capable of changing continuously, fast and effectively.

Change is achieved through projects, BUT this is where the problems begin. The common understanding of projects is flawed and costly.

Many business executives are so frustrated with projects that they’d prefer to do nothing or, in desperation, will do anything to get a result.

If you recognize any of the following attributes you need our help.

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Why projects need to be managed as a business issue

The project based mental models that underpin project delivery methods and business’ adopted approaches are NOT benefits and value focused.

The project is seen as an end in itself.

Many of the ‘controls’ that exist are designed to protect the project team, not maximize business value delivered.

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Consequently the tools, techniques and processes required to maximize value - by reducing delivery costs and increasing value - are largely missing.

But as these value delivery tools do not impact routine project delivery they are not missed on projects.

Meanwhile, they allow significant business value to be lost.

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The use of project performance measures means the resultant missed, lost and destroyed business value and associated wastage is not tracked or measured - the total lost value is invisible to the business.

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But, when made visible, this lost value has been found to be worth more than 50% of a portfolio’s potential value.

That is over 50% of the business’ potential value from project investments is missed, lost or destroyed using orthodox project approaches.*

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* Based on research by BCG, McKinsey, United Directions and TOP - results consistent from 1994 to 2013


Simple, effective business change

You don’t need to understand project management, project models or processes.

But you do need to know exactly what you want to achieve from your projects in clear, specific and measurable business terms. (And determining what these are needs a simple process that is missing in most organizations.)

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Your role is to direct, lead and control your projects to enable them to deliver your desired business outcomes, value and strategic results.

NB the principal reason for commissioning projects is to deliver the desired business outcomes, benefits and results. These dimensions therefore need to drive the project, not be some ‘hoped for’ outcome.

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Delivery of these outcomes, the value and results determines your business’ capability to operate and be competitive.

Delivered compromises are wasteful and expensive long-term and, therefore, need to be avoided by being managed out of existence.

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You need to ensure your projects deliver your desired business outcomes in full and optimize the benefits and value.

The more value the project delivers, the less workload on the business to realize the post-project benefits, the less the risk that these benefits will not be realized and the more value that will be ‘banked’.

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When all of the business outcomes, benefits and value have been fully delivered the project investment is complete.

When this value is delivered for the minimum practical cost, this equals ‘success’.

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Taking action - what you need to do

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Agree that projects are a business tool and not an end in themselves.

That improving project performance is a business issue.

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2

Agree that compromised and poorly delivered projects currently adversely impact your business’ operations and competitiveness.

A project failure is a business failure.

Therefore, this is an important business issue.

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3

Agree that the current poor project performance figures e.g.

“60% of projects are challenged” (Standish 2006-2013)*

are too wasteful, expensive and are, therefore, no longer acceptable.

Project performance therefore needs to improve - fast.

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* Challenged means that the project exceeds ±10% of the time and/or budget but does not take into consideration the business value lost by the ‘successful’ projects



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Agree that the business must regain control of its projects to ensure they fully deliver the desired business outcomes, benefits, value and results.

Only the business can ensure these results.

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5

Agree that the common, orthodox project-based tools, techniques and processes will not deliver the required business changes and performance improvements.

If they could, they would have.

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6

Agree that business benefits and value focused tools, techniques and processes are necessary to consistently deliver improved, high value desired business outcomes and strategic results.

This is, after all, why you invest in projects - to deliver business results.

You need this to be your ‘norm’, not some aspirational goal.

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The payoff is immense

Increased value delivered

Increased focus on benefits increases the business value identified, targeted, managed and delivered.

Reduced cost of delivery

Improved clarity and specificity of the desired business outcomes reduces the costs associated with unnecessary project work, project rework and missed opportunities.

Reduced time to delivery

Reduced project workload and increased business ownership of the results (minimizing resistance to change) reduces the time to deliver.

NB This increase in value can more than double the net value realized.26


The TOP® solution

And this is where TOP® fits.

It is the only complete business benefits and value based approach to delivering business outcomes and strategic results.

TOP equips you, the business, to manage projects as a business issue so as to extract the optimum value from your project investments.

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The TOP® solution

TOP has been recognized by Gartner (Cool Vendor), The Research Board (Market leader), Business Schools (Harvard and Cranfield (UK)) and is used worldwide.

TOP equips you to bridge the gap between strategy, value delivery and results. Fast and now.

It is available immediately via the cloud.

Subscribe, use and reap the benefits. It really is that simple.

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© Totally Optimized Projects, 2010-2014

www.TotallyOptimizedProjects.com

TOP® Strategy execution and value delivery

For more information visit

http://www.TotallyOptimizedProjects.com