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Executive’s Guide toProject Management

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Executive’s Guide toProject Management

Organizational Processesand Practices for

Supporting Complex Projects

ROBERT K. WYSOCKI

John Wiley & Sons, Inc.

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Copyright# 2011 by Robert K. Wysocki. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data

Wysocki, Robert K.Executive’s guide to project management : organizational processes and practices for

supporting complex projects / Robert K. Wysocki.p. cm.

Includes index.ISBN 978-1-118-00407-4 (hardback); ISBN 978-1-118-08924-8 (ebk);

ISBN 978-1-118-08925-5 (ebk); ISBN 978-1-118-08926-2 (ebk)Printed in the United States of America1. Project management. 2. Executives. I. Title.HD69.P75W954 2011658.4 004—dc22

2011007520

Printed in the United States of America10 9 8 7 6 5 4 3 2 1

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To all of those executives in my client organizations who havereached out for help with understanding and establishing asupportive environment for managing complex projects.

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Contents

Foreword xi

Preface xv

INTRODUCTION 1

The Nature of Project Complexity and Uncertainty 1The Risk Mitigation and Business Value Roles of the Senior

Management Team 2Organizational Culture and Velocity 3How to Carefully Manage the Creative Process 3About this Book 3Who Should Read this Book 7

PART I CHALLENGES TO SUPPORTING COMPLEX PROJECTS 9

CHAPTER 1 The Project Landscape 11

The Nature of Project Complexity and Uncertainty 13Goal and Solution Clarity 14Through the Eyes of Senior Management Team Members 19Putting It All Together 22

CHAPTER 2 Project Management Life Cycle Models 23

Traditional Project Management 24Agile Project Management 28Extreme Project Management 32Emertxe Project Management 35How to Choose the Best Fit Project Management

Life Cycle 36Putting It All Together 39

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CHAPTER 3 The Complex Project Team 41

What Is a Complex Project Team? 41Complex Project Team Position Family 42Complex Project Manager Use of the Complex Project

Team Profile 49Senior Management Team Applications of the Complex

Project Manager Position Family Profile 50Putting It All Together 52

PART I SUMMARY 53

Organizational Challenges and Mitigation Strategies 53Executive Bookshelf 56

PART II IMPROVING PROJECT SUCCESS WITHHUMAN RESOURCE STRATEGIES AND PROCESSES 59

CHAPTER 4 Project Manager, Business Analyst, BusinessProcess Professional, and InformationTechnology Professional Integration 61

Position Families 62An Historical Perspective 63Complex Project Team and Complex Projects 66Putting It All Together 78

CHAPTER 5 A Professional Development Model 79

The Professional Development Plan 80Role of the Senior Management Team in the

Personal Development Program 88Putting It All Together 89

CHAPTER 6 Integrating the Project Manager, Business Analyst,Business Process Professional, and InformationTechnology Professional into the Project Landscape 91

Project Complexity Assessment 91Generalists Versus Specialists 94Project Manager, Business Analyst, Business Process, and

Information Technology Skill Profile 96Mapping the Project Managers and Business Analysts

into the Project Landscape 100Putting It All Together 101

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PART II SUMMARY 103

Organizational Challenges and Mitigation Strategies 103Executive Bookshelf 106

PART III IMPROVING PROJECT RETURN ON INVESTMENT (ROI)USING AGILE PROJECT PORTFOLIO MANAGEMENT 107

CHAPTER 7 The Project Birth and Death Process 109

Project Birth Process 110Project Maturation Process 118Project Death Process 118Putting It All Together 119

CHAPTER 8 Agile Project Portfolio Management Process 121

What Is a Project Portfolio? 122What Is Agile Project Portfolio Management? 123Putting It All Together 133

CHAPTER 9 An Agile Portfolio Strategy 135

Adapting the Project Management Life Cycle Modelsto the Agile Project Portfolio Management Model 135

Problem/Opportunity Prioritization 137Strategic Alignment Model 138Alternatives to the Strategic Alignment Model 140Putting It All Together 150

PART III SUMMARY 151

Organizational Challenges and Mitigation Strategies 151Executive Bookshelf 155

PART IV ESTABLISHING AND MATURING AN ENTERPRISEPROJECT SUPPORT OFFICE 157

CHAPTER 10 Organizing and Defining Your Project Support Office 159

Definition of a Project Support Office 159Spotting Symptoms that You Need a Project

Support Office 166Organization and Placement of a Project Support Office 171Steps to Establishing a Project Support Office 173Putting It All Together 174

Contents ix

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CHAPTER 11 Growing and Maturing Your Project Support Office 175

Project Support Office Stages of Growth 175A Step-by-Step Plan 177Challenges to Implementing a Project Support Office 182Putting It All Together 183

CHAPTER 12 The Future of the Project Support Office 185

Hub and Spoke BP4SO 187Putting It All Together 199

PART IV SUMMARY 201

Organizational Challenges and Mitigation Strategies 201Executive Bookshelf 203

EPILOGUE Next Steps 205

Define Your Role in Supporting Complex Projects 205How Will You Make It Happen? 205Final Thoughts on the Book 209

About the Author 211

Index 213

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Foreword

This outstanding work closes a huge and costly gap in our 21st-centurybusiness practices, that of managing and capitalizing on complexity. It

represents a real-world, practical guidebook for senior managers and execu-tives to furnish and continually nurture the environment for success in the21st-century global economy. If you are a member of senior management andyou want to prepare yourself to handle complexity in this competitive globalecosystem, this book prepares you to take responsibility and to take action.

Executives of standout companies, businesses that have flourished inspite of the financial crisis of late, have learned to capitalize on complexity.The first thing they did was to admit to the following six points:

1. Projects execute strategy by implementing the changes needed to reactto the relentless dynamics of the marketplace.

2. Successful projects are critical to our economic survival.3. As executives, strategy execution is our job; therefore, diving into the

world of projects is our job!4. Projects are investments and part of a portfolio that has an investment

strategy that needs our attention, support, and expertise.5. Complexity is here to stay; it is only going to get worse; and we must

learn to not just manage complexity, but also capitalize on it to remaincompetitive.

6. It is through creativity and innovation that we will enable a company tocapitalize on complexity.

This work is groundbreaking in that it deals with establishing an organi-zational infrastructure to accommodate the challenges faced by senior man-agement to effectively support complex projects. Implementing the businesspractices needed to support complex projects is a learning process that de-mands an understanding of complexity, a focus on creativity, and businesspractices that are adaptive and flexible. For senior management teams, theobjective is clear: risk reduction and increased return on project investments.

Literally every organization is in a discovery mode as it attempts to con-verge on the most effective structures, processes, and practices for executing

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complex projects. However, the need is critical, and we must not shy awayfrom the challenge because we don’t have the total solution. As Wysockisays, ‘‘It’s time for the senior management team to take back control of theirinvestments in projects and programs.’’ The role of the senior manager ischanging significantly. Senior managers possess power and influence; andonly they can provide the empowering organizational culture and flexibleinfrastructure needed to deploy complex, creative, innovative solutions.

In these pages, Wysocki presents a straightforward, enlightening, prag-matic guide for senior managers to begin to transition to an organization thatthrives on complexity. Each section of the book is organized in a similarmanner, with an overview of contents, followed by material that presentspractical tools, templates, and processes that provide an infrastructure tosupport the needs of complex innovation projects. Each section concludeswith a summary of the challenges facing senior management in providingthe necessary infrastructure and support. The strategies presented here arerelatively easy to explore intellectually, but they will require diligence onthe part of the senior leadership team to customize them to ‘‘fit’’ in yourenvironment, to implement them, and to continually refine and improvethem so that they remain effective.

Of particular interest is a groundbreaking approach to staffing complexprojects that consists of a framework referred to as a complex project man-ager position family, consisting of the convergence of the four professionaldisciplines critical to the success of complex projects: Project Management,Business Analysis, Business Process Management, and Information Technol-ogy. This framework for complex project leadership includes these pro-fessionals at all levels, from individual-contributor staff positions, toprofessional positions in each discipline, and finally, to executive-level pro-cess and practice directors. Using this straightforward framework allowssenior executives, resource managers, portfolio and program mangers,as well as complex project managers to ensure the complex project team isappropriately skilled and balanced across the four disciplines based on thecomplexity of the project. Through a real collaborative effort relying on thesynergies of the four professionals each with a differing expertise and per-spective, the complex project team will have the technical skill base andleadership prowess to succeed.

Also of considerable interest to me as a member of the International In-stitute of Business Analysis (IIBA) is a proposed new definition of a require-ment, one that relates to the need of a requirement to generate businessbenefits, either in the form of value to the customer or wealth to the organi-zation. Once it is understood that business benefits are the only real measureof project success, it becomes much easier to establish the critical businessrequirements early in the project—those referred to as ‘‘firm basic require-ments’’ by the Standish Group that are not expected to change. Approaching

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business requirements in terms of business value makes it appreciably easierto make important decisions about the project scope and approach.

This work makes a significant contribution to our quest to manage andcapitalize on complexity. It is the only discussion I have found that concen-trates exclusively on the role of the senior management team in fostering thesupportive and adaptive environment needed for success in this complex,ever-changing world we find ourselves in. This new leadership approachinvolves changes in the behavior of the senior team relating to three entities:

1. The Project. Once the complexity of a project is well understood, thereare a number of specific activities that senior management can engagein, from matching expertise to the complexity profile, to giving the com-plex project team the physical space that is needed for the team to col-laborate and interact, to minimizing distractions and other assignmentsto the key team leaders, to understanding and accepting that as more islearned the team will adapt their approach.

2. The Project Portfolio. To manage the portfolio of complex projects,the same flexible, adaptive approach is needed. On a regular basis, theportfolio is assessed and appropriate decisions are made, often resultingin significant changes to the portfolio of complex projects. This is the‘‘sweet spot’’ of the senior management team when they are striving tocapitalize on complexity to achieve innovation, for it is through thesecomplex project portfolios that strategy is executed, value is added forthe customer, wealth is earned for the organization, and competitive-ness is maintained or advanced.

3. The Project Support Office. The executive teams of standout organiza-tions maintain and support an entity that provides a collection of servicesto complex project teams. The senior team tolerates and encourages dif-ferent project support models, depending on the complexity of the teamstructure and the number of different business lines and applications thatare impacted by the complex project, program, or portfolio.

My conclusion: This is a must addition to the reference library for mem-bers of the senior management team.

Kathleen B. Hass, PMPPrincipal Consultant, Kathleen Hass & Associates, Inc.Director, International Institute Of Business Analysis

award-winning author of‘‘The Business Analysis Essential Library’’ and

Managing Complex Projects:

A New Model, the 2009 PMI Book of the Year

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Preface

The contemporary project environment is characterized by a high degreeof complexity, uncertainty, and risk. There is a never-ending stream of

books, articles, webinars, podcasts, and blogs offering a variety of solutionsfor managing these projects and quick fixes for everything from requirementsgathering to change management. Everybody seems to have a silver bullet tooffer the project manager. The best I can say about the present plight of theproject manager is that he/she is expected to perform in an environment thateven the best among them is struggling to succeed in. Let’s face it, we are inthe midst of an evolution in project management and only the best andmost effective organization-wide approaches have any chance of success.Unfortunately the much-needed help has not yet come to the rescue.

Executives, directors, and senior-level managers (a.k.a. senior manage-ment team, [SMT]) are expected to tolerate all of this ambiguity and no one isoffering them any silver bullets. Well, first of all, there aren’t any silver bul-lets for them or their project managers either. But there are strategies for theSMT that can improve the plight of their project managers and establish anenvironment to contribute sustainable business value. These strategies arethe focus of this book. This will be the first ‘‘how to’’ book written specifi-cally for the SMT. It is written to be your guide and constant companion.

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Introduction

The contemporary world of projects and project management is racingahead without constraint. Project and program managers are faced with

a continuously changing array of tools, templates, and processes. Everyoneseems to have their own approach with little in the way of standards or bestpractices. Performance comparisons across projects are difficult at best.Learning opportunities are not shared in any organized way. It would not beunfair to say that the project world of most organizations is spinning out ofcontrol.

The business world is the beneficiary of this unbridled change. Timeto market has never been more critical than it is now. And an organization’sability to achieve that speed is dependent on their ability to be flexibleand creative. Every critical process must align and must be lean and mean.Supporting the design and implementation of those processes from theperspective of the senior management team (SMT) is the topic of thisgroundbreaking book.

The Nature of Project Complexity and Uncertainty

The state of complexity and uncertainty at the project level exacerbates themanagement of programs and portfolios and the supporting infrastructureon the part of the SMT. You are a member of your organization’s SMT andhave clearly been taken out of your comfort zones. This book will share in-frastructure and processes you need to take back control of your projectenvironment. Understand at the outset that this will be a daunting task but itis a necessary task. The continued success of your organization dependsupon it. Despite the best intentions and efforts of you and the rest of theSMT, it won’t happen by next Tuesday. It is in fact a continuous process im-provement effort.

1

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The Risk Mitigation and Business Value Roles of the SeniorManagement Team

Complex projects are high-risk projects and require a great deal of creativityto be completed successfully. That calls upon you as a member of the SMT toassume a role that may be new to you and that you might not be comfortablewith. You need to understand the risks and how best to mitigate them. Youneed to understand the creative process and how to support it but not inter-fere with it. Every member of the SMT must be sensitive to the creative andflexible environment needed to support complex projects. As you considerthe templates, tools, and processes that you support in this effort, avoid mak-ing the following demands on complex project managers:

& Requiring rigid adherence to defined processes& Regularly scheduled meetings with no action items& Written status reports& Forcing them to use specific tools, templates, and processes& Micro-management

Instead, leave room for the following:

& Empower your project managers to take exception to defined processeswith justification

& Meetings called for a specific purpose with a timed agenda and actionitems

& Passing information in documents rather than meetings& Discussing problems with affected parties in meetings rather than

documents& Utilize exception reports whenever possible& Empowerment accompanied by responsibility and accountability& Use of tools, templates, and processes when their use adds value not just

work

Risk Mitigation

Complex projects are wrought with many risks some of which are notknown until well into the project. Many of them can be mitigated by theSMT. Chapter 2, Project Management Life Cycle Models, offers some help.

Business Value

The best way to assure maximum business value from complex projects is totake the client, project manager (PM), and business analyst (BA) at their

2 Introduction

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word. If they say a specific deliverable will be realized and its value will beX, take their word for it and stay out of their way as they work to achieve it.But hold them accountable for planned deliverables and the expected busi-ness value at the appointed project review times. If they fail to deliver on thisproject, they will not get the same treatment from you on the next project.My management philosophy is to offer project managers and teams a ‘‘longrope’’ first and only when they have not lived up to expectations to ‘‘shortenthe rope.’’ Empowerment is earned!

Organizational Culture and Velocity

The familiar nursery rhyme ‘‘Jack be nimble, Jack be quick’’ was never moreappropriate to the business world as it is today. If your organization is to besuccessful, it must be flexible and adaptive and do it quickly. If you can’tquickly do something that needs to be done to protect or enhance your mar-ket position, there is an existing or new competitor out there who will. Soyou have to cultivate a culture of quick change response!

How to Carefully Manage the Creative Process

Being creative is one key to succeeding in the world of complex and un-certain projects. Creative people have a difficult time conforming to processand procedure. They have a strong desire to go with their flow with theexpectation that something good will come of it. They might be right on orout in left field but that is the uncertain nature of what they do. Your job is toestablish an environment and portfolio of support services in which they canoperate, but to the extent possible, hold them accountable for what they do.So, like Jack, you have to be nimble and be quick.

About this Book

The book is organized around four major topics:

& Understanding the challenges to managing complex projects& Improving project success through HR staffing processes and practices& Improving project Return on Investment (ROI) using agile project port-

folio management& Establishing and maturing an enterprise project support office

Each of the four topics is presented as a standalone part. Whateveryour position within the SMT you can focus on the parts of the book that

About this Book 3

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are in your area of interest. Each topic is discussed from the perspectiveof the organization and how its SMT can establish the infrastructure andprocesses to support the management of complex projects, programs,and portfolios.

There are several books that describe the management of complexprojects. They range from the definitive work of Kathleen B. Hass (Man-

aging Complex Projects: A New Model, Vienna, VA: Management Con-cepts, 2009) to an earlier groundbreaking book by Jim Highsmith (AgileSoftware Development: A Collaborative Approach to Managing Complex

Systems, New York, NY: Dorset House, 2000). The focus of these and allthe other current books about complex project management is the proj-ect. None deal with establishing an organizational infrastructure to ac-commodate the challenges to senior management of effectivelysupporting complex project management. How best to support complexprojects is a learning process and few organizations have made muchprogress. The history of project failures and the underlying causes aretestimony to that lack of progress. Complex projects by nature are high-risk projects and this book is the first to discuss practical mitigation strate-gies that can be supported and implemented by the SMT. Their objectiveis risk reduction and increased return on investment. Complex projectsare usually high-risk, high-business-value, mission-critical projects andfor that reason alone the SMT should be making every effort to establishan environment for the realization of that business value through amarked improvement to the successful execution of complex projects,programs, and portfolios.

This is the first book that examines the management of complex anduncertain projects from the perspective of the SMT. It is a practical, self-con-tained ‘‘how to’’ guide for executives and senior managers like yourself. Itshould be your constant companion and desk reference because it collectsin one place the relevant ‘‘how to’’ information for understanding and estab-lishing an environment for improving complex project performance. Thereare two perspectives that I will share with you:

& The Present Perspective. The infrastructure that is needed today iswell-defined. It consists of the four major topics listed previously thatdefine this book. The complete ‘‘how to’’ description is described sothat a clear path to implementation is given to the SMT.

& The Future Perspective. Even with today’s infrastructure defined andimplemented, the SMT’s work is not done. Implementing the most effec-tive infrastructure will always be a work in progress. Each organizationis different and so is their infrastructure. Literally every organization is ina learning and discovery mode as it attempts to converge on the most

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effective structure, process, and practice for succeeding with complexprojects. In each Part of the book I will share with you what I foresee asthe infrastructure of the future and why your SMT should embark upona long-range plan to achieve that future.

My writing style is conversational. I want you to feel like we are sittingacross from one another in front of a roaring fire enjoying a fine wine anddiscussing how you can make a difference to your organization’s support ofcomplex projects.

My writing style is also practical. I do not offer theory or academicsalthough what I have to say is grounded in experience and practice thatworks. If the practices I am sharing here are not theoretically sound, some-one needs to re-examine the theory. I speak from the perspective of havingdirectly experienced the semblance of ideas that I am advising you to con-sider in constructing your organization of the future.

My writing style supports implementation. I want to give you enough ofa head start to be able to implement this infrastructure. That will not be easybut at least you will have the beginnings of a roadmap. What I have to offerin this book is practical and, at the same time, theoretically sound. In addi-tion in most cases I will give you a sufficient start on implementation.

Why I Wrote this Book

I am in the somewhat unique position of having over 45 years of progres-sive experience in information technology, business systems design anddevelopment, and project management. From my vantage point I haveseen history repeat itself several times, I have seen several disruptive inno-vations in technology launched and become critical and pervasive in theorganization. I can see trends that others of less experience cannot. Rightnow we are experiencing a confluence of rapid change, complexity, andthe emergence of global competition from the dining room tables ofstartup companies in every corner of the planet. Many CEOs have lost con-trol of their organization and don’t know how to regain it. That conclusionis documented in a recent study by IBM and is discussed in Chapter 1, TheProject Landscape.

It’s time for the SMT to take back control of their investments in projectsand programs. To do that you need to cultivate your part of the organizationso that it can respond to a changing project environment with flexible andadaptive tools, templates, and processes, as well as the infrastructure to sup-port the project and program investment decisions.

I intend to demonstrate just how the SMT as the leadership team canmake that happen.

Why I Wrote this Book 5

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Overview of the Book

The following abbreviations are formally defined later in the book:

& Project manager (PM)& Business analyst (BA)& Business process professional (BPP)& Information technology professional (ITP)

The major parts of the book include:

Part I: Challenges to Supporting Complex Projects& Chapter 1: The Project Landscape& Chapter 2: Project Management Life Cycle Models& Chapter 3: The Complex Project Team& Part I Summary:

Part II: Improving Project Success with Human Resource Strategies andProcesses& Chapter 4: Project Manager, Business Analyst, Business Process Pro-

fessional, and Information Technology Professional Integration& Chapter 5: A Professional Development Model& Chapter 6: Integrating the Project Manager, Business Analyst,

Business Process Professional, and Information Technology Pro-fessional into the Project Landscape

& Part II SummaryPart III: Improving Project Return on Investment (ROI) using Agile Proj-

ect Portfolio Management& Chapter 7: The Project Birth and Death Process& Chapter 8: Agile Portfolio Management Process& Chapter 9: An Agile Portfolio Strategy& Part III Summary

Part IV: Establishing and Maturing an Enterprise Project Support Office& Chapter 10: Organizing and Defining your Project Support Office& Chapter 11: Growing and Maturing your Project Support Office& Chapter 12: The Future of the Project Support Office& Part IV Summary

Each Part is organized in the same way. The Part is introduced withan overview of its contents followed by three chapters of content mate-rial that presents tools, templates, and processes that provide an infra-structure to support the needs of projects, programs, and portfolios. ThePart concludes with a summary of the challenges facing the SMT in pro-viding the needed infrastructure and support. A bibliography of selected

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materials is provided for more in depth reading for those who have thatinterest.

Who Should Read this Book

The primary market for this book is the SMT that I have already mentionedwith the formal definition given below.

For the purposes of this book, I will separately identify executive, direc-tor, and senior manager level professionals when I need to refer to themspecifically. Collectively I will refer to them as the SMT. The executives areC-level professionals who have responsibilities at the enterprise level. Thedirectors own processes and lines of business that support managers of proj-ect, program, and portfolio managers. The senior managers have direct rolesand responsibilities for managing project, program, and portfolio managers.So whenever I use the titles executive, director, or senior manager I amreferring to these individuals. The titles project manager, program manager,and portfolio manager will further differentiate managerial positions belowthe SMT level.

& Executives: C-level professionals who have responsibilities at theenterprise level. For example, Chief Information Officer or Chief Tech-nology Officer

& Directors: Own processes and lines of business that support managersof project, program, and portfolio managers. For example, Director of

DEFINITION: Senior management team

The senior management team comprises every executive, director, and sen-ior manager at all levels in the organization with management responsibilityfor the design, development, support, and stewardship of:

& The project and program portfolio of the organization

& The human resources who manage and staff all types of projects

& The tools, templates, and processes used to support all projects

& Standards, performance measurement, and compliance monitoring

This includes all of those who manage the managers of projects,programs, and portfolios as well as those who support those who manageprojects, programs, and portfolios.

Who Should Read this Book 7