The Diamond Framework

The NTCP Model: An Introduction

The NTCP model is a structured framework that

managers can use when making decisions about
projects and about how they should be run.
These decisions may involve such things as
selecting the right projects and their managers,
allocating resources, planning, assessing risk,
selecting the project management style,
selecting the project’s structure, building
processes, and choosing tools
 Diamond Approach
Technology

Complexity Novelty

Pace
 Technology

Super-High-te c

High-tec

Medium-tec

Low-tec

Array System Assembly

Complex Novelty

Regular Derivative Plateform Breakthrough

Fast/competitive

Time-critical

Blitz

Required style Dr =(PI, HT, Sy, FC)

Da =(PI, MT, As, FC
Actual style
Pace
 Complexity: The Complexity of Your Project (System Scope)

A simple way to define various levels of complexity is to use a hierarchical framework

of systems and subsystems. We call it system scope, and in most cases a lower scope
level can be seen as a subsystem of the next higher level. Three typical levels of
complexity are used to distinguish among project management practices: assembly,
system, and array.

– Assembly projects involve creating a collection of elements, components and modules

combined into a single unit or entity that performs a single function. Assembly
projects may produce a simple stand-alone produce (such as a CD player or a coffee
machine) or build a subsystem of a larger system (such as an automobile transmission).
They may also involve building a new organization that is responsible for a single
function (such as payroll).
– System projects involve a complex collection of interactive elements and subsystems,
jointly performing multiple functions to meet a specific operational need. System
projects may build products such as cars, computers, or buildings, or they may deal with
the creation of entire new businesses that include several functions.
– Array projects deal with a large, widely dispersed collection of systems that function
together to achieve a common purpose (some times they are called “systems of
systems” or “super systems”). Examples of arrays include national communications
networks, a mass transit infrastructure, or regional power distribution networks, as well
as entire corporations.
 Pace: How Critical Is Your Time Frame?
On this scale, projects differ by urgency (or how much time is available) and
by what happens if time goals are not met. Pace impacts the autonomy of
project teams, the bureaucracy, the speed of decision making, and the
intensity of top management involvement. There are four levels of pace:
regular: fast/competitive; time-critical; and blitz.

Regular Fast-Competitive Time-Critical Blitz

Project completion
Meeting time
on time is Crisis projects,
Time not crictical goals is critical for
important for utmost urgent,
Definition to organizational project success;
companys project must be
sucess any delay means
competitive completed ASAP
project failure
advantage
Business related Projects with a
War, fast
projects, new definate deadline
Public works, response to
product intro, new or a window of
some government natural disaster,
Examples plant construction opportunity;
initiatives, some fast response to
to capture market space launch
internal projects business related
growth. Blu ray Vs restricted by a
matters
HD DVD time window, Y2K
 Novelty: How New Is Your Product in the Market?

Product novelty is defined by how new the product is to its markets and
potential users. It also represents the uncertainty of your project goal – that
is, how clearly you can define the requirements and customer needs up front.
Product novelty includes three types: derivative, platform, and break
through. Determine the best marketing approach/ impact the product will
have on project management. In essence, product novelty will affect three
major issues: the reliability of marketing research, the time it takes to define
and freeze product requirements, and the specific marketing strategies for
the product. The levels of novelty are defined as follow:

– Derivative products are extensions and improvements of existing products.

– Platform products are new generations of existing product lines. Such
products replace previous products in a well established market sector. A
typical example is a new car model.
– Breakthrough products are new-to-world products. They transform a new
concept or a new idea into a new product that customers have never seen
before. The first Sony Walkman and the first 3M Post-it notes are typical
examples.
 Technology: Technological Uncertainty

The major source of task uncertainty is technological uncertainty. (Other

sources might be the lack of team experience or tight budget constraints.)
Technological uncertainty has an impact on, among other things, design and
testing, communication and interaction, the timing of design freeze, and the
needed number of design cycles. It also affects the technical competence
needed by the project manager and project team members. Four levels
comprise technological uncertainty:
– Low-tech projects rely on existing and well-established technologies. The
most typical examples are construction projects.
– Medium-tech projects use mainly existing or base technologies but
incorporate a new technology or a new feature that did not exist in previous
products. Examples include products in stable industries, such as appliances,
automobiles, or heavy equipment.
– High-tech projects represent situations in which most of the technologies
employed are new to the firm but already exist and are available at project
initiation. Most computer and defense development projects belong to this
category.
– Super-high-tech projects are based on new technologies that do not exist at
project initiation. Although the mission is clear, the solution is not, and new
technologies must be developed during the project. A good example is the
moon-landing program.
 The Harmony Project: A System Project Showcase-I

Harmony project launched for major U.S. telecommunications

network provider when down time started affecting biz badly
The project’s goal was to optimize the network operation and
reduce downtime, resulting in a better customer experience and
maximum network utilization. Project required design,
development, and deployment of a new rule-based, software-
driven infrastructure that would allow internal and external
users the to identify network failures and problems.

Such a system would replace manual system, its novelty level

was that of a platform. Lengthy process of requirements
preparation undertaken . Extensive market research customers
feedback to determine specific needs. The requirements freeze
was scheduled for the end of the second quarter, but because
managers were also concerned with creating product familiarity,
they decided to share their early prototypes with customers as
soon as they became available.
 The Harmony Project: A System Project Showcase-II

The company already had bits and pieces of the technology, but most of it
was relatively new and had never been combined on one product. That made
Harmony a high-tech project. To deal with this level of technological
uncertainty, managers adopted a flexible style, allowing changes to be
introduced late into the project and freezing the design during the third
quarter of the project life cycle. Prototypes were used during development,
together with customer involvement, to sort out design problems and rewrite
technical specifications throughout most of the project’s lifetime.

To achieve the interaction and knowledge needed in this highly uncertain
environment, management selected highly skilled technical people and
empowered them to make their own technical decisions while maintaining
frequent and intensive communication channels. Finally, the team of this
high-tech project mobilized the help of an external technical peer review
group. The members of this group were not part of the formal executive
review board or the day-to-day team. They were experts in enterprise
architecture and other functional areas, and they served as consultants on a
quarterly basis, providing valuable feedback on design and architecture
decisions made by the core team.
 The Harmony Project: A System Project Showcase-III

The product consisted of a large collection of modules (sometimes called

“engines” in computer software terminology). Among many others, they
included a routing module, a normalization module, an event subscription
module, a rule wizard, a scheduler module, a task engine, a notification
engine, and a collaboration-on-demand module. To coordinate and integrate
all these modules, the project required the collaboration of many functional
groups such as enterprise architecture, systems engineering, software
development, software testing, production support, and customer support.

This complexity placed the project at the system level, and to manage it
managers established a formal and somewhat bureaucratic process of
planning, monitoring, and decision making that supported requirements
management, architecture building, development, integration, and testing.
The team created an elaborate documentation and communication structure,
but a certain level of informal interaction was also encouraged between team
members and even customers. Additionally, top managers, understanding the
importance of the project, provided full support when asked to help. The
chief technical officer championed the project and made sure that all
management decisions were made on a timely basis to allow the team to go
gurnard as soon as it was ready to move.
 The Harmony Project: A System Project Showcase-IV

Finally, the importance of the project to the company

made it a fast/competitive project. Although missing
the deadline would not be catastrophic, it would harm
the bottom line. That point was stressed by top
management and created a sense of urgency among
the team members. They therefore tried to follow the
structured process and keep tight control on costs and
time.

In summary, the Harmony project adopted the right

approach to its NTCP platform, high-tech, system,
fast/competitive project. In this case the actual style
and the required style were indeed in harmony (as the
name of the project implied).
 Pace: How Critical Is Your time Frame?
On this scale, projects differ by urgency (or how much time is available) and
by what happens if time goals are not met. Pace impacts the autonomy of
project teams, the bureaucracy, the speed of decision making, and the
intensity of top management involvement. There are four levels of pace:
regular: fast/competitive; time-critical; and blitz.

Regular Fast-Competitive Time-Critical Blitz

Project completion
Meeting time
on time is Crisis projects,
Time not crictical goals is critical for
important for utmost urgent,
Definition to organizational project success;
companys project must be
sucess any delay means
competitive completed ASAP
project failure
advantage
Business related Projects with a
War, fast
projects, new definate deadline
Public works, response to
product intro, new or a window of
some government natural disaster,
Examples plant construction opportunity;
initiatives, some fast response to
to capture market space launch
internal projects business related
growth. Blu ray Vs restricted by a
matters
HD DVD time window, Y2K
 Hurricane Katrina-I

Katrina hit the coasts of Louisiana and Mississippi on August

29,2005, causing the greatest devastation from a natural disaster
in the history of the United States. It was also a wake up call for
government as the sector responsible for the safety and well
being of its citizens. Katrina’s magnitude and scope were beyond
the comprehension and perhaps the capacity of a city or state to
handle. It demonstrated that when catastrophe strikes, it is the
responsibility of the federal government to act swiftly to save
lives and property and to get life back to normal as quickly as
possible.

Yet the Federal Emergency Management Agency (FEMA) and

other U.S. government agencies were slow to respond and act.
Critical time passed before any government help was evident in
New Orleans, while people, desperate for help, clung to rooftops
or scavenged food and shelter. For 3 days looters and criminals
took advantage. It took the government 4 days to begin acting.
 Hurricane Katrina-II

At that point, finally, a convoy of military trucks drove through

the floodwaters, and the first supplies of water and food reached
victims who had waited for days. Thousands of armed National
Guard troops also streamed into the city to help restore order.

The story of Hurricane Katrina shows that you cannot treat a

crisis like any other project. Typical projects start by making a
plan and then taking action to implement it. But in crisis, plans
are often useless. On one hand, it would be helpful to think of
possible scenarios ahead of time and build contingency plans for
any imaginable disaster; it would also help to prepare equipment
and people who are ready to respond. On the other hand, when
crisis strikes, it is often unimaginable, and you must be ready to
act without a plan.
 Novelty: How New Is Your Product in the Market?

Product novelty is defined by how new the product is to its markets and
potential users. It also represents the uncertainty of your project goal – that
is, how clearly you can define the requirements and customer needs up front.
Product novelty includes three types: derivative, platform, and break
through. Determine the best marketing approach/ impact the product will
have on project management. In essence, product novelty will affect three
major issues: the reliability of marketing research, the time it takes to define
and freeze product requirements, and the specific marketing strategies for
the product. The levels of novelty are defined as follow:

– Derivative products are extensions and improvements of existing products.

– Platform products are new generations of existing product lines. Such
products replace previous products in a well established market sector. A
typical example is a new car model.
– Breakthrough products are new-to-world products. They transform a new
concept or a new idea into a new product that customers have never seen
before. The first Sony Walkman and the first 3M Post-it notes are typical
examples.
 The Toy Story:
A New Platform in the Movie Industry
 A first full-length computer animated movie through
collaborative efforts of Walt Disney [known for making
animated movies since 1937] and Pixar Animations [ credited
with number of computer animated short films]
 For Disney and its customers it was new generation of
existing; use of software gave platform to produce Shrek,
Finding Nemo and the Incredibles
 Pixar learned how to stockpile characters, sets and props and
recycle them for cost savings
 Synergy: drive and capability of computer animation with
forte in artistic content and marketing made it a roaring
success
 Throughout 4 year project executives met regularly to assess
production and storyline. Movie opened a day before
Thanksgiving
 Definitions and Examples of Project Novelty
Level of project Definition Examples
Novelty

Extending or Developing a new version The level of a

improving existing of a personal computer product’s novelty
Products or services using the same technology; affects the process
Derivative upgrading a production line;
streamlining organizational
of defining the
procedures product’s
requirements and
Developing and Building a new automobile market-related
producing new generation; developing a activities.
Platform generations of new aircraft; creating a new
existing product generation of a cellular Specifically, product
lines or new types of system novelty affects how
services to existing easy it is to know
or new markets and
customers
what to do or what
Introducing a new- The first enterprise
to build and how to
to-the-world product resource planning (ERP) market your
Breakthrough or concept, a new package; the first product to
project idea, or a new use microwave oven; the first customers.
of a product that Walkman; the Segway
customers have personal transportation
never seen before system
 The Segway Story

 Formerly Ginger “Segway” a new –to- the-world

commutation apparatus was conceived by Dean
Kamen; an entrepreneur attributed with portable
insulin pump and iBOT ( a modified wheel chair)
 A breakthrough product with best deployed technical
resources in development
 An unusual marketing campaign with no budget as
Kamen and Segway appeared in every morning
shows and were photographed even with US
President among other celebrities
 Nevertheless it failed to create the magic when
introduced commercially
 Issue ??

 While breakthrough products nurture on real customers

feedback Segway was in a cocoon

 Kamen’s paranoia about theft of his idea disallowed team

from obtaining feedback; he also believed that ‘customers
doesn’t always know the best’

 However customers can always identify problems; in semi-

marketing test it was found Ginger was not good enough for
long distances and for short errands people preferred to walk

 Lesson learnt was inability to judge customers response there

is cogent need for customer feedback
 Success Derivative Platform Breakthrough
dimensions and
possible failure

High efficiency is critical; no
Efficiency
room for overruns
Efficiency is difficult to
achieve and may not be
Time to market is important for
critical (unless competitors
competitive advantage
work on the same idea);
overruns likely

Gaining additional Having high strategic impact on

Impact on Outstanding improvements
customers and market customers; retaining previous
customer in customer’s life and work
segments generation customers

Team members explore new

Team members extend their Team members gain technical
Impact on the fields and gain extensive
experience in quick product and managerial experience in
team experience in unknown
modifications introducing new generations
markets

Extends life of existing
Business and products; additional
direct success revenues and cash cow
current products
Long-term, significant
High strategic impact on the
business success; may come
business; expectation of years of
later, after initial products
revenues and building of
have been tested and
additional derivatives
refined
Success dimensions Derivative Platform Breakthrough
and possible failure

Creating new markets and

Preparation for the Maintaining a strategic
Almost none establishing substantial leadership
future position in the market
positions

Medium risk; risk may

Low risk; risk may involve failing to make Highest risk; risk involves failing to
Possible failure and involve being late and enough progress compared address a real need of customers,
risk gaining only marginal with the previous failing to sell the idea to customers,
value generation, or even missing or failing to assess real market size
a generation in the market
 Managerial Derivative Platform Breakthrough
aspect

Need extensive market

Accurate market data
research and careful Unreliable market data; market needs
exists from previous
Market data analysis of previous unclear; no experience with similar
products and market
generations, competitors, products; customer base not defined
research
and market trends

Need to invest
Product definition based on intuition and
Clear understanding of extensively in product
Product trial and error; need fast prototyping to
required cost, features, definition, involve
definition obtain market feedback; many changes in
functionality, etc. potential customers in
product definition
process

Timing of Early freeze of product

Freeze requirements
product requirements, usually Very late freeze of requirements, often after
later, usually at mid-
requirements before or immediately prototype feedback
project
freeze after project launch

Emphasize product Create customer attention through new and

advantage in comparison innovative marketing techniques; educate
Create product image;
to previous model; focus customers about potential of product;
emphasize product
Marketing on existing as well as new sometimes give away products free or at
advantages; differentiate
customers, based on reduced price; articulate hidden customer
from competitors
product features and needs; extensive effort often needed to
modifications create industry standard
 The Adaptive Diamond Model

• Combining the specific project categories on each dimension creates our

adaptive diamond model. The diamond shape provides a graphical
illustration of a project according to its levels of novelty, technology,
complexity, and pace. Figure in next slide shows, for example, the
diamond of a platform, high tech, system, time critical project.

• The diamond model serves several purposes in coming chapters. First, it

shows clearly what type of project is at hand. To communicate in writing a
specific diamond of project classification, we use a language that
translates the diamond to letter notations (in a vector format). Thus, the
diamond in figure is noted as D = (P1, HT, Sy, TC). Similarly, a breakthrough,
medium tech, array, fast/competitive project would be noted as D = (Br,
MT, Ar, FC).

• Second, as you’ll see next, you can use the diamond as a tool for analyzing
the fit between the required and the actual project management styles. It
is also useful for two-way communication between management and
project teams.
Required and Actual Management Styles: The Fit and
the Gap

• The level of fit between the required and the actual

management style often provides and explanation for project
troubles or failure. It also gives you an opportunity to analyze
the problem and offer recommendations for getting a project
back on track.

• We thus use the diamond as a graphical tool to demonstrate

gaps between how a project should be managed and how it
was actually managed. We call it the required style versus the
actual style. We use a solid line diamond for the required
style, and a dotted line diamond for the actual style.
 Technology

Super-High-te c

High-tec

Medium-tec

Low-tec

Array System Assembly

Complex Novelty

Regular Derivative Plateform Breakthrough

Fast/competitive

Time-critical

Blitz

Required style Dr =(PI, HT, Sy, FC)

Da =(PI, MT, As, FC
Actual style
Pace
 Fire Control System Project-I

3rd generation fire control system developed

by reputable defense contractor in Israel
Challenge was to improve hit accuracy of
vehicle mounted weapons through
employment of new stabilization technique
Through competitive bidding this contractor;
reputable for building components and
subsystems of earlier generations was
selected
 Fire Control System Project-II

Initial plan start delivering initial units after 16

months and full-scale delivery in 3 ½ years

Assumption was to deploy existing modules

and processes through minor modifications
and use them as building blocks
 Fire Control System Project-III

Reality Check: they had never delivered the

integrated product, none of the engineers had
prior exposure to stabilization technology

Project plan was re-written twice and in 2

years they realized incidence of 2 challenges
beyond project scope i) time needed for
developing stabilization technology and; ii)
subsystems doesn’t really mean a trouble free
integration
 Fire Control System Project-Surgical Procedures

 New systems engineering and integration group

added , some external experts were added.
 Owners became involved on daily basis for handy
trouble shooting .
 Breakthrough but after 38 months-final delay of 21
months and double budget.
 In retrospect FCS executive learnt it hard way as
project managers lacked model for systemically
assessing project uniqueness .
 BMW Z3-I

•In the late 1980s BMW struggled with slowing sales imposed by new
Japanese luxury car competitors.

• BMW decided to reposition itself as a producer of quality oriented luxury

vehicles having a unique and definitive identity in the market place.

•Race car, dune buggies, SUV and roadsters which was finally adopted in 1992
synch with positioning of providing superior and exciting vehicles. The vehicle
was dubbed Z3.

•Z3 presented additional levels of complexity. Z3 as the first BMW car

designed in Germany but produced in the United States to become truly
global brand. This decision required adapting to a different culture of
concurrent cross functional teams in a matrix organization.

•To create hype 60% efforts in marketing through nontraditional venues. a

tie-in with Golden Eye, featuring the Z3 as a gift item in the Neiman Marcus
catalog, and featuring the car in an interactive BMW home page on the Web.
 BMW Z3-II

•To cope with these complexities design was kept simple.

Existing 3 series car platform with few new components. BMW
produced 150 integration and testing prototypes. Design and
assembly separation gave German and U.S. teams the
opportunity to identity and resolve design and manufacturing
problems early in the product’s life cycle. It also enabled
redesign work without the need to shut down production, and it
created market interest before the official launch.

•When all bugs had been removed, and in spite of supply delays
the Z3 captured 32 percent of the estimated target market in its
first year of sales, exceeding revenue forecasts by 50 percent.
Featuring the Z3 in the James Bond movie and other
nontraditional marketing techniques resulted in nine thousand
preproduction orders and caused a marketing paradigm shift at
BMW.
 Technology: Technological Uncertainty

The major source of task uncertainty is technological uncertainty. (Other

sources might be the lack of team experience or tight budget constraints.)
Technological uncertainty has an impact on, among other things, design and
testing, communication and interaction, the timing of design freeze, and the
needed number of design cycles. It also affects the technical competence
needed by the project manager and project team members. Four levels
comprise technological uncertainty:
– Low-tech projects rely on existing and well-established technologies. The
most typical examples are construction projects.
– Medium-tech projects use mainly existing or base technologies but
incorporate a new technology or a new feature that did not exist in previous
products. Examples include products in stable industries, such as appliances,
automobiles, or heavy equipment.
– High-tech projects represent situations in which most of the technologies
employed are new to the firm but already exist and are available at project
initiation. Most computer and defense development projects belong to this
category.
– Super-high-tech projects are based on new technologies that do not exist at
project initiation. Although the mission is clear, the solution is not, and new
technologies must be developed during the project. A good example is the
moon-landing program.
 Low-tech & Medium -tech
Low tech Projects: Low technological Uncertainty
Involves implementing existing mature, established technologies –with equal access
to all industry players
Called base technologies and typically offer little potential for competitive
advantage.
Scale of effort large but technology is easily obtained with little uncertainty Typical
projects construction, road building, bridges, and utility installation.
Print projects consists of rebuilding a product previously designed and developed by
someone else.
Medium-Tech Projects: Medium Technological Uncertainty
Common industrial projects and rest mainly on existing and mature technologies;
with limited amount of new technology (often one or two types, but never a critical
technology for project success).
May have a new feature that has not been tried and that provides the product’s
competitive advantage.
Development of a new model in a well established industry (e.g., automobile or
consumer electronics) or improvements, modifications, and upgrades of existing
products.
 High-tech & Super-tech
High-Tech Projects: High technological Uncertainty
Constitute the first use of new, but existing, technologies i.e central technologies
involved are new.
Called pacing technologies as they can change the basis of competition.
May not embody in a product or process, these technologies have been developed
before the actual project efforts.
Incorporating existing but new technologies for the first time typically leads to
products that did not exist in the past,
Many defense development projects can be included in this category,
Super-High-Tech Projects: Very High Technological Uncertainty
High-tech and super-high-tech projects not recognized distinctly , there is a big
difference.
Super-high-tech projects require the development of new technologies that do not
exist at the time of project initiation, and this development is part of the project efforts
also called emerging technologies, Super-high-tech projects may have a clear mission
and well known customers. Yet the need to develop nonexistent technologies result in
very risky and relatively rare projects and is carried out by large organizations or
government agencies.
Famous examples are the Apollo moon landing program, the Strategic Defense
Initiative (often called “Star Wars”) and NASA’s Hubble space telescope.
Misjudging a Construction Project:
Denver Int’l Airport

• Due to loss of capacity Denver’s Stapleton Airport was

approved for expansion by voters.

• Construction started in 1989 with end date of 1993.

• Mission was clear, funding adequate Economic benefit well

pronounced, time apparently adequate, political support in
place.

• Primarily a large construction project with no apparent

problems.
 Reality Check!
• Nightmare for stakeholders, time and cost overruns.
• United Airlines wanted an automated baggage system.
• By ’94 this project was 11 months delayed and in turn
hampered airport ops.
• An additional $50 m traditional baggage handling back-up was
also installed.
• While airport was a low-tech project baggage handling had all
elements of high-tech.
• In summary tech uncertainty took its toll.
Denver Project
 Technological Uncertainty and Project Success

Technological uncertainty depends on the specific technological base of the firm and
the industry. Low-tech firm developing a new product may have issues in using
technology never used before. High-tech to this firm but is seen as medium-tech in a
more technology-savvy firm. Similarly, different levels of technological uncertainty
produce different project results and different effects on a company’s performance.
For example, a low-tech project in a traditional industry such as construction typically
delivers a standard level of profit in a slow-moving environment. On the other hand, a
high-tech or super-high –tech project may represent an opportunity to achieve
exceptional business results and to create a leadership position for the company.

Technological uncertainty also involves risk. Risk of failure proportional increasing

level of uncertainty, starting with low and moderate and moving up to the highest
levels in high-tech and super-high-tech projects. At these levels, technology may not
fulfill expectations, may cause projects to overrun, or may even cause unknown safety
hazards. As mentioned, project planning should set the expectation in advance by
defining what project success means, based on several success dimensions. Moreover,
it should consider the risks and failure factors up front. Next Table summarizes the
expected results on various success dimensions for different levels of technology

Blu Ray VS HD DVD, Olpers, National Foods

Technological uncertainty and project success
Success Low-Tech Medium-Tech High Tech Super-high-Tech
dimensions and
possible risk

Efficiency High efficiency is critical Efficiency is Overruns may High probability of

important happen; overruns
Impact on Standard product Functional product; Significantly Quantum leap in
customer adds value to improves customer customer
customers capabilities effectiveness
Impact on the Extends team exp in the Ext team exp in Ext team learning in Builds tech leaders
team industry quick designs and applying new of unknown
product technologies technology dev
modifications
Business and Reasonable profit Moderate profit; High profit; High Outstanding biz
direct success medium return on market share results in the long
investment run; market
leadership
Preparation Almost none Gains additional New product line; Leadership position;
for the future organizational new market new core
capabilities technologies
Possible Low; no specific risk Moderate risk from High risk of delays, Ext risk from
failure and from technology used technology overruns, and unknown tech;
risk undesirable perf delays /cost
from new tech for overruns, prod
1st time failure
 How Technological Uncertainty Affects Project Management-I

Low-tech and higher-tech projects may have a substantial impact on project

management activities, especially on the technical activities that shape the
product’s configuration and specification. But technological uncertainty also
influences the levels of communication and interactions, the managerial
attitude, the review processes, and even the required capabilities and skills of
the team and its manger.
A project’s technical activities typically include engineering, building,
assembling, testing, reviewing, and approving the design and product
specifications. As technological uncertainty increases, the design,
development, and testing activities become more intense.
In Low-tech projects no development or testing is needed, as design
blueprints are available. Higher technology, more development more
prototyping till final super-high-tech projects built a small-scale prototype to
test the newly developed technologies before a final selection.
Product completion requires several iterations of design, building, and
testing called design cycles. A tech project is a multistage process of design
cycles that are performed to reduce uncertainty. Low-tech project needs only
one cycle, medium-tech level typically have two; a high-tech project requires
at 2-3 design cycles, and a super-high-tech project requires about 3 cycles
after final technologies have been chosen.
 How Technological Uncertainty Affects Project Management-II

Important event of design cycle called design freeze. Not about

immutability but indication that product is in final expected form and only
essential changes may be made. Level of technological uncertainty
determines the delay in scheduling freeze decision. Low-tech decision before
start of project execution; for medium-tech projects, during 1st qtr; high-tech
about mid point; and for super-high-tech projects,3rd or 4th qtr

Defining the level of technological uncertainty at project initiation enables

managers to include these decisions as part of the project plan and allocate
the budget and other resources to carry them out successfully.

Finally, as technological uncertainty increases, you must devote more time

in project revision to technical issues. At the lower levels, formal managerial
reviews of progress and milestones may be sufficient. However, for high-tech
and upper-high-tech projects, managerial reviews alone are not enough.
Projects must conduct technical reviews with teams of objective experts in
relevant disciplines who are not involved in the project on a day-to-day basis.
These peer reviews, which guarantee that the team receives ample feedback
during the development period, are critical, and their absence is often the
major reason a project fails.
 Management Style, Communication, Attitudes, and Contingencies/ PM & Team
Skills-I

Greater technological uncertainty increases the need to delay the design

freeze and conduct more cycles of design, build, and test, thus more flexible
management style and increased tolerance for ambiguity and uncertainty.
After design freeze an abrupt shift in PM’s attitude high level of flexibility and
tolerance for change at initiation and almost no flexibility at design freeze.

In low-tech projects, firm is stuck to the initial plan. In medium-tech

projects, some acceptance for change but immediate rollout after freeze
Highly flexible styles are needed at the higher levels of technological
uncertainty. An attitude of “look for trouble,” to fix problems.

Technological uncertainty affects project communication and interaction. At

lower levels, a formal process of communication and prescheduled meetings
is typically sufficient. As technological uncertainty increases, the formal
process must be complemented with informal interaction and unscheduled
meetings. At the highest levels, managers must install and provide ample
opportunities for informal interaction – meeting stations, joint sessions, and
after-hours activities – so that people can share recent work experience and
problems.
 Management Style, Communication, Attitudes, and Contingencies/ PM & Team
Skills-II

Finally, managers need to be prepared to cope with delays

especially in high-tech and super-high-tech projects. So its
prudent to allocate contingent resources to respond to
unexpected difficulties and delays. Low-tech level, typically 5%,
for medium-tech, 5-10%, high-tech, 10-25%, and for super-high-
tech, 25-50% needed. NASA’s Apollo program had contingency
reserve of 50 %in its initial budget.

PM must be good administrators, planners, and leaders. High

tech uncertainty requires, PM with strong technical skills. Must
have ability to make technical decisions about design as well as
judge interfaces between disciplines and project teams. Intuition
to decipher tech jargon to be able to grasp the project as a
whole. With increased tech uncertainty team members must be
tech savvy and educated.