Purposes and Methods of Practical Aug 2005

7/27/2019 Purposes and Methods of Practical Aug 2005

1/42

METHODS OF PRACTICALPROJECT CATEGORIZATION

Russell D. Archibald, MScFellow PMI and APM/IPMA, PMP

Institut Suprieur de Gestion Industrielle - Groupe ESC LILLE5thInternational Workshop

August 22 26, 20051


2/42

To discuss the ur oses of and need for a

project categorization system,

To present a recommended approach to the

systematic definition of project categorization,

Matrix for Project Categorization to facilitate thissystematic definition.


August 22 26, 20052


3/42

large numbers of projects within:

government, business and industry, and e sma er num ers o pro ec s a are

being planned and executed within one

organ za ona en y.


August 22 26, 20053


4/42

practices are common to all (or at least,

AND MORE RECENTLY ecogn on a ue o e n eren

diversity of many projects they must be

segrega e n eren ways or severaimportant purposes.


August 22 26, 20054


5/42

.

2. Sellers (contractors or developers of

3. PM software developers and vendors4. Consultants in PM

5. Universities

6. Professional associations


August 22 26, 20055


6/42

Project Categorization Enables

Improvements in:

Strategically select and prioritize projects

Individually

Within ro rams and

Within project portfolios

Determine their true maturit in PM

Educate and train their PM people

Develo and mana e PM career aths

Institut Suprieur de Gestion Industrielle - Groupe ESC LILLE

5thInternational Workshop

August 22 26, 20056


7/42

http://www.maturityresearch.com/#

y e r ur y e

to project categories shown later. Brazil: 180 million people, strong high-

technology industries, 17 PMI chapters



August 22 26, 20057


8/42

Project Categorization Enables

Improvements in: (Contd)

n vers y o er ngs n

PM Professional associations services



August 22 26, 20058


9/42

Categorization versus

Classification of Projects

A set of items with similar characteristics or

Not mutually exclusive

A set of items with identical characteristics

pro ec s on y one c ass



August 22 26, 20059


10/42

Can be seen in:

s

PMI PMBOKs and IPMA bodies of knowledge rganization structures

Consultant specialization

University course offerings



August 22 26, 200510


11/42

Specialized

PM Bodies of Knowledge

Government extension

Automotive extension (in preparation)

erman

Investment: construction & systems engrg

R&D/Innovation



August 22 26, 200511


12/42

PMI Special Interest Groups

Automotive Design-procurement-

construction

Dispute Management E-Business

Environmental Management Financial Services

Government Healthcare Project Management

events: Olympic Games)

Information Technology and

Telecommunications

International Development

(infrastructure, agriculture,e uca on, ea , e c.

Manufacturing Marketing and Sales

New Product Development Oil/Gas/Petrochemical

Pharmaceutical RetailService and Outsourcing Urban Development

Utility industry



August 22 26, 200512


13/42

International Development ProjectManagement Manual of Practice andGlossary Program.

See www.IDPMGUIDE.INFO

Source: Paul Giamolvo:

http://www.pmforum.org/viewpoints/2005/0708_e.htm



August 22 26, 200513


14/42

organized by category: power plant,-, , ,

other

IT/software/systems departments

Other



August 22 26, 200514


15/42

, ,

transportation, health care, power, etc.. .

ome.htm

.

http://www.bmc-online.com/consulting-

.


5thInternational WorkshopAugust 22 26, 2005

15


16/42

Ad Hoc versus Systematic

Project Categorization

categorization as in past decades

Systematic - A better approach: cce era e mprovemen s n prac ces

Avoid duplicate efforts

e p to assure t at a actors ave eenconsidered



16


17/42

Various Categorization Parameters

(Crawford, Hobbs, Turner 2002)

1. Size Com lexit 2. Life C cle or Sector

and Familiarity Size

Corporate strategicdevelopment

Goals & methods

Familiarity

Stage of the project (and

product) life cycle Maturity

Technical uncertainty

S stem sco e

Resource type

Geography

Product & work International



17


18/42

Various Categorization Parameters(Crawford, Hobbs, Turner 2002) (Contd)

.

Contract terms and payment

Type of risk

Complexity



18


19/42

Attributes of Projects


product Sta e of life-c cle

Uncertainty

Grouped or single

Complexity

Strategic driver

Ownership

Scope



19


20/42

Common Uses and Needs


A language for naming and discussing

Facilitating communication

Storage and retrieval of knowledge


5thInternational WorkshopAugust 22 26, 2005 20


21/42

S ecific uses/needs

Research Ontological definition

ompara ty

Building on previous results

Development of BoKs

Internal or anization SIG structure

Market positioning Practitioner organisations?




22/42

e a e em o pro ec c arac er s cs,

attributes, and criteria




23/42

The Purposes/Methods Matrix for

Project Categorization/PC

One axis: Purposes and Uses of PC

Second axis: Methods of categorizing andclassifying projects within the categories

Enter codes to indicate which methods




24/42

Project Categorization Purposes/Methods Matrix

Methods >

Purposes v

Market Share

& Strat. Intent

Project End

Result

Development

or

Deployment

Other

1. Strategic

Indicate usefulness with codesIndicate usefulness with codes

. pera ona

.

Education

4. PM PeopleDevelopment




25/42

.

Prioritize selected projects

e ne pro ect port o os

Manage project portfolios Allocate resources to portfolios & projects




26/42

. Select/assi n ro ect mana ers

Design/select best project life-cycle models Select/improve PM methods & systems

e ect eve op est so tware systems

Build knowledge base of best practices

Evaluate PM maturity level

Link success and failure factors

Select tools and management approach Other




27/42

.

eve op spec a ze case stu es

Organize speaker tracks at congresses

Other




28/42

.

Project managers

Develop career paths for individuals Other




29/42

Prioritize purposes and uses

Consolidate and simplify purposes anduses




30/42

Project Categorization Purposes/Methods Matrix

Methods >

Purposes v

Market Share

& Strat. Intent

Project End

Result

Development

or

Deployment

Other

1. Strategic

Indicate usefulness with codesIndicate usefulness with codes

. pera ona

.

Education

4. PM PeopleDevelopment




31/42

Project characteristics or attributes

Place projects within categories




32/42

A Useful Project Categorization

Method Must:

project to be encountered

Provide insight into differences betweenpro ec s n eren ca egor es

Provide categories that can be readily

translated across cultures and languagesFern 2004




33/42




34/42

requirements of one of three strategic

technological excellence (TE),

,

customer intimacy (CI).

Hammel and Prahalad (1989)




35/42

Market Share/Strategic Intent

Matrix

rows and the three Strategic Intent classes,

projects in terms of their product

.twelve theoretical project categories.

Source: Fern (2004)




36/42

.

2. Business &Or anizational

.

7. InternationalDevelo ment

Change

3. Communication

8. Media &

EntertainmentSystems

4. Events

9. Product/ServiceDevelopment

5. Facilities . .




37/42

-

1 2 3 4

a or category

Sub-category 2Sub-category 3

-

Similar to P/WBS approach




38/42

Example:

Category 5. Facilities Projects

.

.

.

1.Civil 2.Energy 3.Environmental 4.Industrial 5.Commercial 6.Residential7.Ships 8.Other:

5. Other: ?




39/42

Classifying Within Sub-Categories:

Many possible Criteria Project size

Major & minor projects

Project complexity

Degree of customer involvement

Levels of risk, who takes responsibility

-

Standard versus transitional

Mega projects: not categorizable

Other: ? (See Crawford, Hobbs and Turner, 2002 and2004)




40/42

Simple Example:

Category/Class MatrixClassifying Projects

withinProjectSize:

MajorPro ect:

Complex-it :

Customer:

CustomerInvolvement

RiskLevel:

Project Categories& Sub-Categories

$M

YesNo 1 to 10

Int or Ext Hi or Low

1 to 10

Category Level 2 Level 3

5. Physical

Facilities

5.1 Decommissioning

5.2 Demolition

5.3 Maint &

Modification

5.4

Design/proc/const

5.4.1 Civil

5.4.2 Energy

5.4.3

Environmental

5.4.4 Industrial

5.4.5 Commercial

5.4.6 Residential

5.4.7 Ships



5.4.8 Other

5.5 Other


41/42

Deployment versus

Development Projects (Pfeiffer 2004)Deployment Project Development Project

v construct on.

Installation of a system. Advance measured by

eve opment o new pro ucts.

Organization of social change. Advance aimed at reducing

.

Final Product relatively clear.

Life Cycle generally in form of

cascade.

,indicators.

Various life cycles possible.

Leadership style focused on Leadership style based on

command and control.

Highly structured information

earn ng.

Less formal communicationsystem.

.

Task oriented organization ofHuman Resources.

Progress relatively Linear.

adapt and evolve in order torespond to changes.

Processes very dynamic.



41


42/42

categorization and classification S stematic a roach must be:

Specifically related to prioritized purposes and needs

of the organization Hierarchical

This appears to be a fertile field for further study

an researc w a mem ers o e wor oproject management, including doctoral



August 22 26, 2005

42

Documents

Purposes and Methods of Practical Aug 2005