ICEC 2014 Linking 6 Phase Project Life Cycle with TCM Framework-Slides

Milan – 20, 21 and 22 October 2014

Linking the Comprehensive Six Phase Project Life

Cycle and Project Team Cognitive Readiness with

the TCM Framework

Methodologies and quantitative

methods to support TCM

ICEC 2014 - http://www.icec2014.it

Russell Archibald et al – Archibald Associates llc

Re-Engineering Total Cost Management

slide 2

Linking the Comprehensive Six Phase Project

Life Cycle and Project Team Cognitive

Readiness with the TCM Framework

Co-Authors:

Russell D. Archibald,

Ivano Di Filippo,

Daniele Di Filippo, and

Shane C. Archibald

ICEC 2014 - http://www.icec2014.it Re-Engineering Total Cost Management

slide 3

Why Should You

Pay Attention to These Ideas?

Two Recommendations

Two Conclusions


slide 4

Two Recommendations

Adopt as a Standard the Six-Phase Comprehensive Project Life Cycle to include the Incubation/Feasibility and the Post-Project Evaluation Phases.

Revise the AACE International TCM Framework to recognize the Comprehensive Six-Phase Project Life Cycle.


slide 5

Two Conclusions

Project Management principles and practices provide benefits when used throughout the Strategic Asset Management Processes in the TCM Framework.

More research is required to develop and apply Project Team Cognitive Readiness to all important projects.


slide 6

Presentation Outline

1. Systematic and Holistic Management Approach

• Systems thinking & Scope of “Project Management”

• Importance of project and product life cycle models & some examples

• The Comprehensive 6 Phase Project Life Cycle Model

2. Origins of projects: The Project Incubation/Feasibility Phase

• Project-driven vs project-dependent organizations

• Delivery vs strategic transformational projects

• Incubation/feasibility project phase

3. Evaluating Projects Integrated with Project Results

• The Post-Project Evaluation Phase (some time after the Project Close-Out Phase)

• The 4 dimensions of project success and project value

4. Recommendations and Conclusions


slide 7

Part 1. Systematic and

Holistic Management Approach

Systems thinking & Scope of “Project Management”

Importance of Project and Product Life Cycle Models & Some Examples

The Comprehensive 6-Phase Project Life Cycle Model


slide 8

Systems Thinking

A holistic perspective of projects and programs is required today to achieve the full benefits of systems thinking in project management.

• Senge, Peter M. (1990), The Fifth Discipline, Doubleday/Currency;

• Gharajedaghi, Jamshid (1999), Systems Thinking: Managing Chaos and Complexity, Burlington, MA: Butterworth-Heinemann.


slide 9

Improved Success in PPPM Depends

on Two Desirable Goals

The proper and effective use of Information Technology (IT) with Business Process Management (BPM) plus Project, Program and Portfolio Management (PPPM), and

Definition of the Comprehensive Project Life Cycle Models for both development and delivery projects and programs within an enterprise.


slide 10

Some Business Process

Management Systems

IBM WebSphere Business Modeler: http://www-

01.ibm.com/software/integration/webphere-business-modeler/advanced/features/

IBM Rational Process Library: http://www-01.ibm.com/software/awdtools/rmc/library/

Oracle Business Process Management Suite:

http://www.oracle.com/us/technologies/bpm/029418.pdf

SAP Business Suite: http://www.sap.com/lines-of-business/finance/business-suite-

apps/index.epx

JBoss jBPM: http://www.jboss.org/jbpm/

WSO2 BPS: http://wso2.com/products/business-process-server/

Bonita BPM: http://www.bonitasoft.com/products/bonita-open-solution-open-source-bpm

Intalio BPM: http://bpms.intalio.com/product


http://www-01.ibm.com/software/integration/webphere-business-modeler/advanced/features/









http://www-01.ibm.com/software/awdtools/rmc/library/







http://www.sap.com/lines-of-business/finance/business-suite-apps/index.epx











http://www.jboss.org/jbpm/

http://www.jboss.org/jbpm/

http://wso2.com/products/business-process-server/






http://www.bonitasoft.com/products/bonita-open-solution-open-source-bpm













http://bpms.intalio.com/product



slide 11

Some Project/Program/Portfolio

Management Systems

Spider Project: http://www.spiderproject.com/

Advanced Management Solutions Realtime Enterprise:

http://www.amsusa.com/company/intro.htm

CA Technologies: http://www.ca.com/us/project-portfolio-management.aspx

Compuware Changepoint: http://www.compuware.com/business-portfolio-

management/

Dekker, Ltd: Decker Trakker: http://www.dekkerltd.com/trakker.aspx

Planview Enterprise Portfolio Management: http://www.planview.com/

HP Project and Portfolio Management Center:

http://www8.hp.com/us/en/software-

solutions/software.html?compURI=1171920#tab=TAB1

Microsoft: MS Project and Project Server: www.microsoft.com

Oracle Primavera P6 Enterprise Project Portfolio Management:

http://www.oracle.com/us/products/applications/042373.htm

SAP Portfolio and Project Management: http://www.sap.com/index.epx


http://www.spiderproject.com/

http://www.amsusa.com/company/intro.htm

http://www.ca.com/us/project-portfolio-management.aspx





http://www.compuware.com/business-portfolio-management/





http://www.dekkerltd.com/trakker.aspx

http://www.planview.com/

http://www8.hp.com/us/en/software-solutions/software.html?compURI=1171920



http://www.microsoft.com/

http://www.oracle.com/us/products/applications/042373.htm

http://www.sap.com/index.epx

http://www.sap.com/index.epx

slide 12

Importance of Models

We use models in every walk of life:

• Physical scale models

• Graphic models: drawings, photos, 2 or 3 dimensions, animation

• Information models: words, numbers, equations, project plans (CPM, PDM, PBS), computerized simulators or processes, contracts

• Mental models

• “What is your business model?”

“A small replica of the real thing”


slide 13

TCM Framework is a Model

TCM Framework is a descriptive model that:

• Interrelates a number of business processes.

• Provides an holistic, common understanding of its subject.

• Enables the application of systems thinking to the management of an enterprise.


slide 14

Predictive Project Life Cycle Models

Predictive life cycle models “favor optimization over adaptability” (Desaulniers and Anderson 2002):

• Waterfall (also known as traditional): linear ordering of the phases, which can be strictly sequential or overlapping to some extent; no phase is normally repeated.

• Prototyping: functional requirements and physical design specifications are generated simultaneously.

• Rapid Application Development (RAD): based on an evolving prototype that is not thrown away.

• Incremental Build: decomposition of a large development effort into a succession of smaller components.


slide 15

Figure 1. Typical “standard” top level project life cycle model.

(PMI PMBOK 2008, p 16)

PMI 4 Phase

Project Life Cycle Model


The PMI PMBOK 5th edition 2013 (page 38, Fig. 2-8) describes a “generic project life cycle structure” as:

Starting the project – Organizing and preparing – Carrying out the work – Closing the project.

This edition also shows examples of both predictive and adaptive project life cycles but does not specify a “standard” project life cycle.

Figure 2. A second “standard” project and extended life cycle model. (APM 2006 p 80.)

APM Extended Life Cycle Model


Figure 3. NASA’s Project Life Cycle Process. See http://spacese.spacegrant.org/uploads/Project%20Life%20Cycle/PPF_Wall

Chart_color.pdf

for a very detailed wall chart that expands this simplified version.


http://spacese.spacegrant.org/uploads/Project Life Cycle/PPF_WallChart_color.pdf

http://spacese.spacegrant.org/uploads/Project Life Cycle/PPF_WallChart_color.pdf


slide 19

Adaptive Life Cycle Models

Adaptive project life cycle models “accept and embrace change during the development process:”

• Adaptive Software Development/ASD: Mission driven, component based, iterative cycles, time boxed cycles, risk-driven, and change-tolerant. IBM Rational Unified Process (RUP) (Ref. Appendix B), is a good example.

• Spiral: Repetition of the same set of life-cycle phases such as plan, develop, build, and evaluate until development is complete.

• Extreme Programming/XP: Teams of developers, managers, and users; programming done in pairs; iterative process, collective code ownership.

• Agile and SCRUM: Similar to above adaptive life cycle models with iterations called “sprints” that typically last one week to 30 days with defined functionality to be achieved in each sprint.


slide 20

Figure 4. Overview of a typical Stage-Gate™ project

life cycle process for new product development. Source:

Robert G. Cooper et al, Portfolio Management for New Products

(Cambridge, MA, 2001), p. 272.


Figure 5. Spiral software development project life cycle model. Source: http://commons.wikimedia.org/wiki/Category:

Spiral_model_of_Boehm?uselang=en


http://commons.wikimedia.org/wiki/Category: Spiral_model_of_Boehm?uselang=en




slide 22

Agile Life Cycle Model

(Partial) ICEC 2014 - http://www.icec2014.it Re-Engineering Total Cost Management

Figure 6. United States DoD 5000

Defense Acquisition System Life Cycle Source: DoD Defense Acquisition System


slide 24

Two New Project Life Cycle Phases are Required to be

fully Compatible with the TCM Framework

To achieve this systems perspective we need a Comprehensive Project Life Cycle definition for application on all important projects.

This Model recognizes a Project Incubation/Feasibility Phase prior to the Project Starting Phase, and also a Post-Project Evaluation Phase after the standard Project Close-out Phase.


slide 25

Comprehensive 6-Phase PLC Model


slide 26

Linkage With the TCM Framework


slide 27

Linkage with the TCM Framework


slide 28

Purposes of Project Life Cycle

Process Models are to:

Enable all involved persons to understand the processes to be followed throughout the life of the project.

Capture and document the best experiences so that the processes within each project phase can be improved continually and applied on future similar projects.


slide 29

Purposes of Project LC Models (Cont’d)

Enable all the project roles and responsibilities and the project controls methods and tools to be appropriately related to the overall project life cycle management process;

• This includes assigning qualified persons to the roles of Project Executive Sponsor and Project Manager.

Enable the effective application of project management software application packages that are integrated with all appropriate corporate information systems.


slide 30

Project Life Cycle Models Enable us to:

1) Apply systems thinking to creating, authorizing, planning, scheduling, and managing the project through all of its phases, and thereby:

2) Evaluate the success and the value of both the project and the results that the project has produced.


slide 31

When Does “Project Management”

Start and End?

Scope of „project management‟:

• Traditional scope includes start-plan-execute-closeout phases, but

• Projects begin their existence before the traditional start phase and their products continue to exist and must be evaluated after the projects are closed out.

These 2 new phases must be recognized as belonging within the domain of „project management.‟


slide 32

Background for this paper:

By the same authors:

• The Six-Phase Comprehensive Project Life Cycle Model

• Unlocking a Project Team’s High-Performance Potential Using Cognitive Readiness: A Research Study Report and Call to Action


http://pmworldjournal.net/?article=the-six-phase-comprehensive-project-life-cycle-model-including-the-project-incubationfeasibility-phase-and-the-post-project-evaluation-phase-2




http://pmworldjournal.net/article/unlocking-project-teams-high-performance-potential-using-cognitive-readiness-research-study-report-call-action/





slide 33

Comments by 20 Reviewers from

7 Countries are included in those Papers

Wayne Abba

Gregory Balestrero

Dr. Antonio Bassi

Dr. Franco Caron

Dr. Gianluca Di Castri

Prof. Federico Fioravanti

Dr. Stanislaw Gasik

Ing. Pier Luigi Guida

Prof. Dr. Harold Kerzner

Prof. Federico Minelle

Prof. Dr. Darci Prado

David Pells

Bob Prieto

Dr. Marco Sampietro

Miles Shepherd

Max Wideman

Rebecca Winston

Murray Woolf

Shakir Zuberi

Prof. Jorge Tarazona.


In Brazil, Canada, Colombia, Italy, Poland, UK, and USA

slide 34

Part 2. Origins of Projects

Project-driven and project-dependent organizations

Delivery versus development and strategic transformational projects

Incubation/Feasibility Project Phase


slide 35

Project-Driven and

Project-Dependent Organizations

It is important to recognize the

differences between these two

types of enterprises

They exhibit widely different levels of maturity in their

project management capabilities


slide 36

Origins of Projects

• Delivery projects and

• Development & strategically transformative projects

Projects are conceived and born

differently for:

• Project-driven and

• Project-dependent organizations

Within:


slide 37

How they Differ

• Projects produce most revenue.

• Mature in managing their "delivery" projects.

• Less mature in managing their development and transformative programs and projects.

Project-Driven

Organizations:

• Products or services produce most revenues.

• Development & transformation projects produce new products, services, markets & processes.

• Often employ Project-Driven organizations for specific needs.

Project-Dependent Organizations:


slide 38

Two Kinds of Projects

Delivery (Commercial) Projects produce or deliver benefits within the growth strategies of the enterprise.

Development & Strategic Transformational Projects produce significant changes in the enterprise, its products, or its business processes.


slide 39

Two Kinds of Programs

Traditional Programs consist of a

group of related projects, while

Strategic or Transformational Programs usually include both projects and on-going operations.


slide 40

A Practical Set of 12

Project Categories:

1. Administrative and

Organizational Change

2. Aerospace/Defense

3. Communication Systems

4. Events

5. Facilities

5.1 Facility decommissioning

5.2 Facility demolition

5.3 Facility maintenance and

modification

5.4 Facility Design-procurement-

construction

Some separate facilities design

and construction categories that

must be integrated on one facility.

6. Information Systems/IT

7. International Development

8. Media & Entertainment

9. Product and Service

Development

9.1 Industrial product

9.2 Consumer product

9.3 Pharmaceutical product

9.4 Service (financial, other)

10. Research and Development

10.1 Environmental

10.2 Industrial

10.3 Economic development

10.4 Medical

10.5 Scientific

11. Healthcare

12. Other Projects – Disaster

Recovery, others….


slide 41

Definition of the Project

Incubation/Feasibility Phase

The phase prior to initiation of the Project Starting Phase, during which the necessary information and “embryonic knowledge and understanding” of the potential project is collected, compiled, buffered, and analyzed sufficiently to enable a well-informed decision to proceed with initiation of the Project Starting Phase.


slide 42

When Does a Project Truly Start?

“Project Starting Phase” must begin with a reasonable understanding of what the principal objectives, scope, schedule, and cost of the project are expected to be, including:

• What the project will create;

• What benefits will be produced ;

• Verification that the project is aligned with the strategic plans ;

• A reasonable idea of the overall scope and expected time schedule and cost, and whether the needed money and other key resources will be available;

• Preliminary or conditional approvals and rights;

• Overall economic, technological, political, social, and physical feasibility under identified risks.


slide 43

Basic Question

“Where does this initial „embryonic knowledge and understanding‟ about the potential project come from?”

Answer: The work and analysis performed and buffered during the Project Incubation/ Feasibility Phase of its life cycle model.


slide 44

Peter Morris (2005):

“The reality, as shown by the results of two separate surveys, is that the overwhelming majority of practitioners polled believe that project management does apply in the pre-execution stages.”


slide 45

Unfulfilled Roles

The Project Executive Sponsor and Project Manager roles exist during the Project Incubation/ Feasibility Phase but often are not formally assigned.


slide 46

Front End Loading (FEL)

Front End Loading (FEL) Phase in Design/Procurement/Construction Projects recognizes the importance of the Project Incubation/Feasibility Phase

Independent Project Analysis (IPA) group (Norway): “FEL is the process by which a company (and project team) translates its marketing and technological opportunities into capital projects…. during the FEL phase, the questions of Why, What, When, How, Where and Who are answered.”

http://www.concept.ntnu.no/symposium/index.htm.


http://www.concept.ntnu.no/symposium/index.htm

http://www.concept.ntnu.no/symposium/index.htm

slide 47

Front End Loading?

Term was used in the USA in the early 1900s with construction contractors.

They “loaded” the early activities in their contracts to receive the largest possible progress payments from the client.

This was often necessary to offset their losses on prior projects that were nearing completion.

Finance: Front-end loads are paid to investment intermediaries (financial planners, brokers, investment advisors) as sales commissions.


slide 48

Various Terms for FEL Phases Source: Bob Prieto 2013

Project Phase Contractor

Definition

Owner A

Definition

Owner B

Definition

FEL Phase 1

FEL Phase 2

FEL Phase 3

Phase 4

Phase 5

Business

Plan

Conceptual

Engineering

Preliminary

Engineering

EPC

Startup and

Operation

Appraise

Select

Define

Execute

Operate

Conceptual

Feasibility

Front-End

Engineering

Execution

Operation


slide 49

Corporate Strategy and the

Incubation/Feasibility Phase

Prior to any important project beginning to take shape in the Project Incubation/Feasibility Phase, its genesis comes from the strategic decisions that have been made by the strategy managers of the organization.


slide 50

Project Origins

Project Type >

Organization Type

Commercial or

Delivery Projects

Development and

Transformational

Projects

Project-Driven

Organizations

> Requests for proposals/RFPs

> Project proposals that comply

with well-established strategic goals

and are within the known

capabilities

> Project Starting Phase is not

initiated until a contract is signed by

both parties.

Statements below

apply.

Project-

Dependent

Organizations

Few if any commercial/ delivery

projects exist in these

organizations. If so the above

comments apply.

> Ideas come from strategic

managers, marketing/business

development, R&D, customers,

consultants.

> When the ‘embryonic

understanding’ of the potential

project has been approved the

project enters the Project

Starting Phase. ICEC 2014 - http://www.icec2014.it Re-Engineering Total Cost Management

slide 51



slide 52

Part 3. Evaluating Projects

Integrated with Project Results

Post-Project Evaluation Phase

Project/Product Success & Project/Product Value


slide 53

Comprehensive 6-Phase PLC Model


slide 54

Project Close-Out Versus Post-Project

Evaluation Phases

Project Close-Out Phase:

• All work on the project has been officially completed and the specified products and other results have been delivered.

Post-Project Evaluation Phase:

• Evaluation of the success and value of both the project itself and the products or other results it has produced.


slide 55

Post-Project Evaluation Phase Definition

The Post-Project Evaluation Phase is devoted to the effort needed to first determining and then maintaining, improving, and even perfecting the ultimate success of the project in the following four dimensions:


slide 56

Four Dimensions for Evaluating

Project/Product Success

1. The project from a project management viewpoint

2. The project‟s products and results

3. All project stakeholders‟ perspectives of both the project and its results

4. The overall project and its products from the project team cognitive performance perspective.


slide 57

1. Project Management Dimension:

How closely did the project achieve the original objectives as defined in the Project Charter or Project Business Case?

Did the project meet the specified product specifications, budget, schedule, scope?

What lessons were learned during this project to improve PM Best Practices?


slide 58

2. Product (Results) Dimension

How well does the product meet the Project Charter?

How well does the product achieve its Key Performance Indicators/KPIs?

What are the established Critical Success Factors (CSF) & how well does the product measure up to these?

Does the market like, buy and use the product?


slide 59

3. Stakeholder Satisfaction

Dimension:

What level of satisfaction or dis-satisfaction (accomplishment, enjoyment, pleasure, anger, conflict, frustration) exists in each class of the project stakeholders?

These can be either positive or negative stakeholders – and the negative can be hidden.

Hidden, negative stakeholders are dangerous – “sappers” -- who quietly influence others – and bury mines.


slide 60

Project Stakeholders Include:

Project Executive Sponsor

The Project Manager

Project core team members

Functional contributors to the project and to its product Owners of the final product of the project


slide 61

Project Stakeholders: (Cont’d)

Investors in the project and its products

Users and operators of the final product

Affected regulatory agencies

Communities (local, regional, and virtual) affected by the project and its products


slide 62

4. The Project Team

Cognitive Performance Dimension

Projects do not exist without their teams.

Achieving high project team performance is crucial for success on important projects.

Much time and money is spent on preparing project plans and schedules, but little is spent on developing and enhancing high project team performance….

Project team cognitive readiness can be developed and will produce high team performance.


slide 63

Project Team Cognitive Readiness

Project team-building now can capitalize on advances in the cognitive sciences – “Mindfulness.”

Project managers and project team members can build their cognitive readiness through knowledge about:

• Emotional intelligence, lateral thinking, metacognition, cognitive adaptability, resilience, agency, self-efficacy, arousal, assertiveness, mindfulness, cognitive control, and

• Other related factors.


slide 64

Project Teams Versus Sports Teams

Sports teams spend 10 times more effort on team-building than in competition. “Practice, man, Practice!”

Project teams are usually quickly thrown together and told to start work NOW!

Project team cognitive readiness requires investment up front: Front End Training/FET.

Team building is everything to create a winning team!


Conceptual model illustrating how characteristics

influence team cognitive readiness. Source: Bolstad el al 2006. ICEC 2014 - http://www.icec2014.it Re-Engineering Total Cost Management

slide 66


Cognitive Readiness is an indicator of how well the project team will perform or has performed during the planning and execution of the project.


slide 67

Some Cognitive Enablers

Cognitive Appraisal of what is happening at any given moment: our emotions are based on how we perceive a particular situation.

Cognitive Adaptability: the degree of how easily we use the cognitive trade-offs to modify some of our beliefs without causing difficult cognitive dissonances (McLeod 2008).)

Metacognition: the cognitive awareness of our own brain processes; in the project team situation this refers to the sense of team by all the team members.

Emotional Intelligence: the EI Quotient is the ability to effectively perceive, assess, understand and influence the emotions of oneself and others.


slide 68

Some Cognitive Constraints

The Student Syndrome

Parkinson's Law

Overloading Stress

Multi-tasking Stress

Burnout Syndrome

Internal conflicts that can lead to crises

Drastic commitment reduction

“Competence Borderline Syndrome” (I’m going to do just what I have to do, no more!)


slide 69

More Research is Required on


Practical methods and tools remain to be developed to assess and build project team cognitive readiness.

Not all types and categories of projects will benefit equally from team cognitive readiness capability.

Cognitive psychology and neuroscience experts must work closely with project management practitioners in this endeavor.


slide 70


Baseline Database

Together with best project life cycle models, build high-performing project teams that are “cognitively ready” to benefit future projects.

Create baseline database of cognitively ready project managers and project teams.


slide 71

Linking the Post-Project Evaluation

Phase with the TCM Framework

Linked within the TCM Strategic Asset Measurement (5) and Assessment (6) Processes, plus as an extension of the Project Performance Assessment Process (10).

Not sufficient only to measure and assess a project’s success and value during the standard Project Close-Out Phase.

In order to carry out the processes included for these Strategic Asset Measurement and Assessment requirements of TCM, all four of the evaluation dimensions described above must be included.


slide 72



slide 73

4. Recommendations

Adopt as a Standard the Six-Phase Comprehensive Project Life Cycle to include the Incubation/Feasibility and the Post-Project Evaluation Phases.

Revise the AACE International TCM Framework to recognize the Comprehensive Six-Phase Project Life Cycle.


slide 74

Conclusions

Project Management principles and practices provide benefits when used throughout the Strategic Asset Management Processes in the TCM Framework.

More research is required to develop and apply Project Team Cognitive Readiness to all important projects.


slide 75

Thanks for Listening Russell Archibald russarchibald.com [email protected] Ivano Di Filippo genialsoftware.it [email protected]

Daniele Di Filippo

danieledifilippo.wordpress.com

[email protected]

Shane Archibald

Archibald Associates.com

[email protected]


mailto:russarchibald.com

mailto:[email protected]

http://www.genialsoftware.it/


http://danieledifilippo.wordpress.com/


http://archibaldassociates.com/


slide 76

For more Information:

By the same authors:

The Six-Phase Comprehensive Project Life

Cycle Model

Unlocking a Project Team’s High-

Performance Potential Using Cognitive

Readiness: A Research Study Report and

Call to Action

For all references please see our ICEC 2014

paper on which this presentation is based.













slide 77

See also:

Leading & Managing Innovation-- What Every Executive Team Must Know about Project, Program, & Portfolio Management

146 page book by Russell and Shane Archibald

Now also available in Italian with introduction by Prof. Dr. Marco Sampietro. Available soon in Brazilian Portuguese with introduction by Prof. Dr. Darci Prado and in Spanish with introduction by Prof. Jorge Terranova.


http://leadingandmanaginginnovation.com/