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P2M - THE JAPANESE VERSION OF COMPLEX PROJECT MANAGEMENT FOR ENTERPRISE INNOVATION IN TURBULENT ENVIRONMENT

SHIGENOBU OHARA (Chiba Institute of Technology) 1. A TRI-LEMMA MISSING LINK Project management has been widely used in research, engineering and construction of artificial super-structures. After 90s, IT software gave it a way to expanded opportunity for its effective uses. Today, challenges are being triggered to apply it to the methodology for enterprise innovation. If challenged to the topics, the context embraces philosophy of multi dimensional values and peoples jump into a jungle multiple purposes. “P2M” gave a consistent way to labyrinth by two Ps concepts of project and program to standard guidebook developed in Japan. [1,2, Ohara 2001,] “Complexity” is an accent for the area, which needs to deal with demystifying context[3, H.Tasaka 1997 4, Sherman and Schultz,1998,] hidden behind idea holders. Ideas spring out every layers from the top to the bottom in organizations. The clearer the idea is explainable, more adaptable chances exist for its acceptance to bear the fruits. However, if it is unique enough beyond the level of conventional thinking, it is most likely that precious idea is hardly utilized. Everybody agrees that idea is a mother of innovation, but resistance is also strong in reality. What is critical in business lies in opening the new way of thinking to pick up shining ideas linking to value creation. The front edge idea shall be noted, supported, and followed in any form or by any chance in the organization to put that creativity to business value. “Asimo” a Honda walking robot had been a informal hidden team incubated by a person who noted its future market value. Analogy comes something like jewelers who never overlook precious stones in the soil to convert it to valuable outcome. A set of “complexity, value and resistance” is a tri-lemma missing link for building new framework of P2M. The more complex issue is in context, the more value contains with perils to overcome, and the less people could understand to be resistant. Despite puzzle of the iron triangle, reference of solution formula has been observed in Japan.

Complexity

Value
FIGURE1, TRI-LEMMA MISSING LINK

@Resistance

2. WHAT IS THE ESSENCE OF P2M ? COMPLEXITY TO HYBRID PROJECT MODELS The essence of P2M is focused on profiling idea of "complexity to implementation" in business field. The guidebook consists of entry, program management, project management, and eleven discrete types of management Highlighted by the core philosophy of "solution to complex issue" demanded in Japan, it is penetrating widely in academy, government, community, and business society. Any project or program starts from “mission” and not from “goals or objectives”. Mission is full of ambiguity, multiplicity, and interfaces to cross-disciplinary areas. Kenichi Ohmae, a management consultant says, “New business springs out of crossing spaces among heterogeneity. To get rid of ambiguity, mission shall be written in clear plural scenarios from which context, objectives, and goals are illustrated in semantic network relationship. Some general tools of KJ, ISM, Dematel, Kepner & Trigoe, and cognitive frame method are availed [5,Kawakita, 1970, 6,Saaty1979, 7,Warfield 1977,8, Minsky1886], but stronger one shall be developed undoubtedly. Subsequently in general or simultaneously, strategy is undergone to select the best out of scenario options. Needless to reiterate, the selected scenario must be essentially readable, highly feasible, and potentially innovative. In case the scenario is evolved to realization, major components of projects are explored and identified. A group of these inter-linked projects shall be depicted in program lifecycle. Putting scenario to practice, program “architecture” is indispensable in designing structural, functional, and operative connectivity configuration. "The word of architecture is originated from building design, and its framework is applied to information engineering.[9, Scheer 1997]. In the complex hybrid projects, the “project modeling” is imperative to identify and put them in order,[10,Shibata, 1995, 11, 8, Bernus, Rathwell,]before phased planning is implemented. In the turbulent environment today, which needs flexibility to “changes”, quick decision support system is mandatory. At least, peoples have to recognize distinction by deliverable types to classify “scheme”, “system” and “service” project models.[ Ohara, 2001 refer to 1,2]

and knowledge on common space globally. The truth is solid today. In long years. the invisible asset of intellect is scarcely systematized. community. fairness. and even projects.[13. Nevertheless. Context Platform Protocol Collaboration Culture. Itami and Nonaka 1998 ]has meant a specific place. However. platform or “Ba” in Japanese [12. their options are limited only at work level. system and service projects models. Amram and Kulatilaka. business. P2M THINKING FROM COMPLEX ISSUE TO PROJECT MODELS 3. PLATFORM CONCEPT OF P2M 4. and breadth of interfaces. and a way of thinking without prejudices under minimum rules. Since nobody could predict discontinuity of environment. It facilitates speed of transactions and executions simultaneously. but its meaning is getting heavier as project work expands cross boarders.Duncan 1996] It hits the point in a single project. What is an issue of integration? An interpretation is a “coordination and control” of project process. The strength of teamwork is originated in the spirit. and virtually collapsed with huge piles of loss. it is yet deficient of relationship in systemic risk to changes and its impacts to valuation. Language Face to Face Space Virtual Space TABLE 3. What are lessons learned? Critical pitfalls of managing complex project are disconnection between project models. information. rewards. it is now apparent that the success or failure of program depends on mission profiling. Taketomi and Ohara 2001]. instability. He coached a crew to implant a package of professional disciplines. knew its value for management. Discipline Rules. The asset seems disappearing. mentally and digitally. network penetrates broadly in e-collaboration transforming society. a project manager concentrates how to deliver product or service in time within the budget. redesigning. Conflicts rise in routine more frequently by biases of cultural "context". The modern intellectual society has to warrant personal respect for interests. and reediting it by substitute of any of scheme. for example. So. Today. [14. where teamwork is highly encouraged and their wisdom is crystallized. and valuation is also constrained within framework of earned value indicators. Systemic risk involves paralysis of the basic philosophy and system. inflexible adaptation to drastic changes. Valuation means the measurement of value and proactive maintenance. program shall be divided into connected models before phases to be substituted by options to changes. coming to valuation of project owner. but expand the definition in complex project. At the financial bubbles in Asia. Platform is social and intelligent space specially designed for achieving specific mission. and platform of program. architecture. and equality for intelligent experts.playing is something like piloting . but it is worth of reviving by a concept of platform management as outlined in figure 3. “stop or go” decision is more flexibly adapted in terms of “program value perspective”. In Japan. Any conflicts if left unsolved aside cast dark shadows of disharmony and morale drop over the project process. it has debated that leadership of project manager and teamwork of its members are keys for success or failure.Complex Issue Scenarios Program Project Model Profiling mission Strategic decision Apply architecture FIGURE 2. has to mitigate risk and create program value in handling creativity. habitudes and heritage piled in Japanese architecture history. the loss could be mitigated and minimized much smaller. 1999. but by different worlds of geographical and professional lifestyle. HUMAN TALENTS AND PLATFORM The rationality of this idea lies in looking into vital views for ” human talents and ”changes”. For arriving at integration framework. PROGRAM INTEGRATION MANAGEMENT As explained. terminology. strategic decision. emergency. It helps to safeguard basic rights of safety. Today. but not all. in particular trade-off elements or changes across the entire project. If categorize and perceived by modular project package models. It is really a key to dig out potentials by integrating talent. sharing jobs. His or her role. Everybody at projects works by exchanging messages. In ordinary project. “real option tool” offers a way to decision-makers. If any program manager play a role of coordinating. it explains a little. Owner. 15. the constructions of billion dollars’ projects were continued on going regardless of external changes. and tends to be lacking of interests in happenings outside its boundary. A leader of the project team or “Toryo” a head of classic castle builders. and work-style. "Platform" is a new way to conflict solution and attracting base for professional experts on the other hand.

The example shows how P2M is important and penetrated. The first impression was agreeable to Quinn’s theory that innovation is happening on interface between manufacturing and service [19. the author was fortunate to follow it in Japan and Asian countries [20. and education. Numerous stories of emerging SMC may be disclosed for readers’ interests if spaces could be permitted. a consulting company picked up 58 “highest performers” in terms of innovation. Software is available to digitally design. and profit increased ten times. profile. Ibiden was a middle class producer of print circuit board in stiff competition. more than 50% companies misguided that virtual factory means digital manufacturing. by which operational viability could be warranted. the depth and viability of architecture rely largely on intellectual asset of wisdom. Incidentally. Likewise in complex project. • Service is dealt digitally by IT • Business id open globally If classified. Lately. more value indicators are needed for efficiency for goals. entertainment. P2M adopted “balanced score card” [16. Dr. while the red curve of “conventional manufacturing” contrasts downward adversely to the blue. it is worth to note a motherland that the core idea of project and program management is a value creation. but highly customized and specific use like ASSP semi-conductors. construction and machinery industry. Those who design enterprise innovation have to observe deliberately the framework how project value chain is linked and to what level the model contributes. Her comments are encouraging and expressing the essence that “P2M is potentially the most significant advance towards genuine integration”. and integration is the heaviest part of management framework. and ”it heralds a revival of intellectual depth to the field that has been in the process of codification of knowledge and practices”. Crawford 2002]. it is essential to note that contents are made of knowledge. The Internet can provide tool of instant “connectivity” and bilateral “interaction” to anyone in the world. experience and know-how. P2M style of enterprise innovation is overlapping the view. Here. In short. EMERGENCE OF SUPER MANUFACTURING COMPANY Revolution is rising in “manufacturing” from small pioneers to giant enterprises. big survey was done by the third party incidentally. • The complex project management is recognized and implemented partially or totally • More than 50% of value is generated by intellectual service. but has no factory outsourcing its manufacturing to foundries in Korea and Taiwan. and ill-defined issues across the industries. implies novel system. Needless to say. “super manufacturing company” or SMC shall satisfy three basic requirements. The threshold to SMC depends on paradigm change to value framework. . know-how and ideas. “Seinelectronics” is a venturing company of LSI. They renew and revive the old paradigm to” service hybrid manufacturing” by implanting “zero base idea”[18. Despite the advancement. most of manufacturing companies had been networked internally and externally. sales turnover has doubled. process. Once again. It express unique philosophy. SMC is similar to something like “virtual factory” or “virtual corporation” . It applied complex project management to develop the advance multi-layer PCB than any competitors. Kaplan and Norton 1996] for project valuation. Quantity Research. Profiling ideas to complex issue for “scenarios” Formulating strategic options for feasibility Create architecture of the best to hybrid projects Design platforms for open digital collaboration Build program life cycle and adapt to changes Install assessment system for program value FIGURE 4. Though uniform recipe does not exist. THE ESSENCE OF PROGRAM INTEGRATION MANAGEMENT IN P2M 5. • Corporate vision is a front runner in the niche and growing domain. strategy and architecture. Figure 5 shows simple “smiling curve” in blue color. The product is broadly applicable. Within a decade. [17. Ohara 1999]. Upton and Mcafee 1997]. consultations. “Emplas Company” was a tiny company of producing plastic gear parts. rapid growth and profitability among 2613 companies at stock market in 2002 . and optical electronics parts. P2M was actually designed on interview survey of top executives. which represents service hybrid manufacturing project value chain in networked knowledge economy. and provides quality services.jumbo aircraft in cockpit. It made a sharp contrast to hard oriented industry distribution like materials. Lynn Crawford plays leadership role of standardization and global forum to clarify commonality and distinctions of guides of project management in the world. stakeholders. outsource or produce any deliverables for specific purposes. What attracts surprise is 40 % of the highest performers are clustered by “service interface” holding industries like IT software. Quinn 1997]. Nevertheless. but grew the nano-level precision gears.

. P2M training course has been introduced three times at Matsushita. • Rationale of open linkage economy Internet has been changing rules of competition like capital size. EXPERIMENTS OF P2M -WHAT ARE THE DRIVING MOTIV ATIONS OF LEARNING ? “Panasonic” of Matsushita is famous for its multi-national giant globally competing as producer of electric appliances. the company intends transition and transformation to adapt service hybrid manufacturing. geological locations. Commitment is consistent in reform of “value building” reform. In the light of more than 20 lectures experiences of SMC cases interpretation by P2M paradigm. buy. design. and manufacture in a single organization connected by a jungle of delivery channels. These are summarized as follows: Motivations by executives. • Program job is increasing Complex mission profiling is more significant than the individual control by metrics. Motivations by senior managers • Idea Generator type leadership A proactive entrepreneur breakthroughs to replace a heavy closed system by to a light digital system. SMC deploys flexible use of its creative competence at any climate. • Networking capability for sophisticated products Networking capability is useful in the complex project management to achieve the shortest delivery cycle for developing sophisticated products in market.Value @‚ O P‚ @@‚ W @@‚ U @@‚ S @@‚ Q @@0 Scheme Model Wisdom value Service Model Know-how value System Model Manufacturing or assembly value Upper stream Middle stream Down stream FIGURE 5. and provided for senior managers in expanded curriculum. PROJECT MODEL OF V ALUE POSITIONING 6. Most of the manufacturing companies have a set of heavy line to develop. organizational capability and technology for which P2M delivers logical thinking with systematic knowledge. Intellectual jobs are increasing and occupy a large share in the program type of works like solution business. By destruction of classic paradigm. marketing planning. “Learning organization” belongs to this type in which members knows a way of collaboration by constant manipulation of software and network. • Sophistication. • Innovative culture -Rationale of knowledge-based-economy SMC trains mindset and transform the “culture” innovative in knowledge-based-economy.climate flexibility-Rationale of economy of scope SMC uses versatile package tools to make good use of services from concurrent engineering to enterprise resource planning to control interfaces expanding “scope”. The new CEO Mr. mobile phone. and channels. Nakamura envisioned corporate belief of “destruction and creation”. • Rational of e-trade economy SMC is “rebuilding value chain” by converting physical to virtual process complying with rules of e-trade economy. and electronic communication. SMC succeeds to design and build “agility” by integrating CAE/CAD/CAM/CALS. • Rationale of speed economy “Time to market” is a strategy to survive and grow..value creation system by project “Sophistication” is the core pillar of value creation system. management style. and its learning incentives are classified into five level of economy rationales pointed by executives and four program advantages proposed by senior managers. SMC adapts flexibly by “linkage in open economy”. and/or research development. • Total. the driving motivations are fairly increasing. The mode of sophistication is derived of intellectual capital of leadership. The idea generator type of leadership is a core of this innovation process and organizational competence. It is an engine of generating “value” that an ordinary firm can neither imitate nor fabricate the same. risky venturing. .

Japanese Translation 1986 Sadanori Yokoyama and Syouji Yasuda" Corporate Architecture" Diamond Publishing.The Real Virtual Factory. Robert Kaplan and D. McGraw-Hill.Warfield. in the book of"Modelling and Methodologies for Enterprise Integration” listed in 9. 8. REFERENCE 1. Masachussettes Boston1996. Takahiro Fujimoto. pp 123-133 Harvard Business Review. 1974 "Crossing Theory and Hierachy Mapping" IEEE. In order to achieve mission. Yusaku Shibata. system and service backed by architecture level attributes.N. 16. Free Press. 3. Japanese version "Hasso-ho" 6. Boston Massachussettes. 9. Tokyo 1992 9. William Duncan A Guide to the Project Management Body of Knowledge pp39. A Key Note Speech at International Project Management Congress (IPMC 2001Tokyo) A summary pp6-7 with its full text of 16 pages in CD-R Proceedings November Tokyo 2001. which needs profiling of the mission to be virtually hybrid themes. 1977 8. Intelligent Enterprise Free Press. Shigenobu Ohara. 5.. Most of modern problems involve with complexity for solutions.1996 19. oo234-281. D. Quinn. Fukuzatukei no Keiei. 1999.Management to Complexity Issue Toyo Keizai. J. Japanese version translated by Masayuki Ishihara et al and published by Toyo Keizai Shinpohsa in 2001. Summary Translation of Project and Program Translation for Enterprise Innovation Revision 1 issued on August edited and revised by PMCC Tokyo 2002.1980.SMC-4 No. . Kawkita Jiro A heuristic Method of Abduction from Field Data( 8th International Congress of Anthropological and Ethnological Sciences in English). university education and company training. e al. Santa Fe researchers give suggestions to approaches of complexity issues to the field of business innovation. Lynn Drawford World PM Trends and the Position of P2M in the Global Community at Project Management Workshop held in Osaka and Tokyo by ENAA. The author deeply thanks their supports. Howard Sherman and Ron Schultz Open Boundaries-Creating business innovation through complexity pp2-38 Santa Fe Center for Emergent Strategy. “Real Options” Harvard Business Schools. Marvin Minsky The Society of Mind 1985 Simon &Schuster New York. Shigenobu Ohara Interface between Manufacturing and Service Asian Productivity Organizations. and PMCC 2002 18.6 pp30-37 Nippon Kagaku Gijutu Renmei( Japan Science Federation)June 2002 ol 17. CONCLUSION P2M is an innovative framework of program and project management developed by Japan. Japanese Translation in 1999 10. Shigenobu Ohara Project Management and Japanese Qualification System Proceedings of IPMC 2001. P2M coverage has been expanded to up and down stream.Wilhelm ScheerARIS-Business Process Frameworks Springer-Verlag Berlin Heidelberg 1998. Akira Tateishi. 1997 20. Peter Bernus and Laszlo Nemes Modelling and Methodologies for Enterprise Integration edited by November 1995.. P2M has consistent value creation perspective in management.James Brian. Hiroshi Tasaka. The Program Management and P2M framework was written and edited by Ohara and P2Mof 400 pages was published by ENAA for the first time in November 2000 together with "interim translation" of 90 pages for participants to IPMC 2001 Tokyo.7 505-523. Project Management Certification Center. Perseus Books Massachussettes 1999. Penetration is increasing rapidly in government.Norton TheBalanced Scorecard Harvard Business Press. 15. McAfee. Rationality exists in the integration in the three types of such models as scheme. New York 1992 and “Innovation Explosion”.. Ikujiro Nonaka and Itami Dynamics of Ba Platform Toyo Kiezai Sinpo Sya” 1998 14. 13. No. New York pp89-92. and implemented in strategic fashion. Tokyo 2001 11.5 pp405-417. The contemporary methodologies are also included in the pictures to make the program viable. Upton. Tokyo 1997 4. No. SMC-7. Deep appreciation is also extended to Professor Lynn Crawford and Professor Christophe Bredillet for precious comments on P2M and encouragement. Tametsugu Taketomi and Shigenobu Ohara Project Uncertainty and Investment Assessment by Real Option MethodologyQuality Management Journal V 53. community.P . and A Scaling Method for Priorities in Hierachical Structures Journal of Mathematical Psychology 15. 1979 7. "A Framework for Business Renovation: toward an intellectual infrastructure for the extended enterprise" Chapter 6 pp88-101. 12. ACKNOWLEDGEMENTS The participation to IPMA Moscow Congress is invited by Professor Vladimir V oropajev the leader of the congress. T.A.Saaty The Anaalytic Hierachy Process. program shall be formulated.L. In line of this thought. and sponsored by PMCC.Business Architecture Yuuhikaku.Martha Amram and Nalin Kulatilaka. August. 1996 14.7. Toward Interpretation of Complex Structural Models IEEE. 2.