Reinventing Project

Management
Part 1 slides
 The Increasing Share of Projects

Projects
Operations

Time Industries,
Companies,
Society
1800s 1900s 2000s
Agricultural Industrial Information
society society society
 The motivation

• The assumption:
– Different projects are managed in different ways.

• The literature and the discipline assume:

– “a project is a project is a project.”

• There is no accepted framework

• The need:
– A framework to distinguish among projects
– Practical guidelines on how to manage projects in different
ways
 The Questions

• How to Distinguish Among Projects – Dimensions?

• How to Classify Projects on Each Dimension?

• How to Manage Different Project Types?

• Is There More than One Way?

 What Impacts Project Type?

Environment

Product Project UCP NTCP

Task
Technology

Complexity Novelty

Pace
 Uncertainty -
at the moment of
Complexity project initiation
Risk
Complexity -
size,
# of elements,
variety,
interconnectedness
Uncertainty
Pace -
available time frame
Pace

The UCP Model

 Four Dimensions for Distinction
Among Project Types

• Novelty – How new is the product to customers and users

– Derivative, Platform, Breakthrough

• Technology – How much new technology is used

– Low-tech, Medium-tech, High-tech, Super High-tech

• Complexity – How complex is the system and its subsystems

– Assembly, System, Array

• Pace – How Critical is the Time frame

– Regular, Fast/Competitive, Time-Critical, Blitz
The Project Diamond - Assessing a Project’s Risk/Benefit and
Selecting the Right Management Approach
 Technology
Super-High
Tech

High-Tech
Automatic Bag –
Handling System
Medium-Tech

Low-Tech

Array System Assembly Novelty

Derivative Platform Breakthrough

Complexity
Regular

Fast/ Airport
Competitive Construction
Project
Time-Critical

Blitz

Pace

Denver International Airport Project

 Project Success

Efficiency Impact on Impact on Business & Preparing for

Customer Team Direct Success Future

• Meeting • Meeting • Team • Sales • New

schedule requirements satisfaction • Profits technology
• Meeting and • Team morale • Market share • New market
budget specifications • Skill • ROI, ROE • New product
• Changes • Benefit to development • Cash flow line
• Yield customer • Team • Service quality • New core
• Other • Extent of use member • Cycle-time competencies
efficiencies • Customer growth • Organizational • New
satisfaction & • Team measures organizational
loyalty members’ • Regulations capabilities
• Brand name retention approval
recognition • No burnout

Specific Success Measures

 Success Dimensions

Preparing
for Future

Project
Business Success
& Direct
Success

Impact on
Team

Impact on
Customer

Efficiency

Timeframe
Short Medium Long

Timeframes of Success Dimensions

 Importance

Preparing
for Future

Business &
Direct success

Impact on
Customer
& Team

Efficiency

Low Medium High Uncertainty

Relative Importance of Success Dimensions is Project-

Dependent
 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Time-Critical

Blitz

Pace

The NTCP Framework

The NTCP Diamond
 Definition Planning Execution Termination

Revise Plans

Revise Definition

Classical Project Phases Modified to an Adaptive Iterative Approach

 From traditional to adaptive project
management
Approach Traditional project management Adaptive project management

Project goal Getting the job done on time, on budget, and within Getting business results, meeting multiple criteria
requirements

Project plan A collection of activities that are executed as planned An organization and a process to achieve the
to meet the triple constraint expected goals and business results

Planning Plan once at project initiation Plan at outset and re-plan when needed

Managerial approach Rigid, focused on initial plan Flexible, changing, adaptive

Project work Predictable, certain, linear, simple Unpredictable, uncertain, nonlinear, complex

Environment effect Minimal, detached after the project is launched Affects the project throughout its execution

Project control Identify deviations from plan, and put things back on Identify changes in the environment, and adjust the
track plans accordingly

Distinction All projects are the same Projects differ

Management style One size fits all Adaptive approach; one size does not fit all
 Entire Adaptive Iterative Approach

Freeze Requirements Freeze Design

Design, Build,
Requirements Planning Specs Complete
Test

Revise Design

Revise Plans

Revise Requirements

Adaptive Approach Traditional PM

Importance

Preparing
for Future
Business &
Impact on Direct success
Customer &
Team

Efficiency

Project Time
Completion

Relative Importance of Success Dimensions - A Matter

of Time
 Critical Success Factors
Generic Projects
z Project Mission
z Top Management Support
z Project Planning
z Project Control
z Client Consultation
z Skills
z Personnel Management
z Project Communication
z Client Acceptance
z Trouble Shooting
Product Development Projects
z Clear and Early Product Definition
z Defined Product Strategy
z Early Top Management Involvement
z High Quality Process
z Adequate Resources
z Integrated Planning
z Empowered and Communicating Team
z Voice of the Customer
 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Required style
Time-Critical Dr = (Pl, HT, Sy, FC)
Actual style Da = (Pl, MT, As, FC)
Blitz

Pace

The FCS Project

 Technology Later design freeze
More design cycles

Less market data

Later requirement freeze
Complexity

Complex organization
Novelty
Formality

Autonomy

Pace

The Impact of the NTCP Dimensions on Project Management

 Benefits and risks of high NTCP levels

Dimension Expected benefit Potential risk

Novelty Exploiting new market opportunities; Having difficulty predicting exact market needs;
leapfrogging competition; gaining missing sales targets; attracting
first mover advantage competitors to copy your ideas

Technology Improving performance and functionality Experiencing technology failure; lacking needed
skills

Complexity Bigger programs, bigger payoffs Having difficulty in coordinating and integrating

Pace Gaining early market introduction, Missing deadlines; making haphazard mistakes
mounting quick response
 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Time-Critical D = (Pl, MT, Ar, FC)

Blitz

Pace

The World Trade Center Project

Reinventing Project
Management
Part 2 slides
 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Time-Critical D = (Pl, HT, Sy, -)

Blitz

Pace

The “Toy Story” Project

 Definitions and examples of project novelty

Level of project Definition Examples

novelty

Derivative project Extending or improving existing products or Developing a new version of a personal computer; upgrading a
services production line; streamlining organizational procedures

Platform project Developing and producing new generations Building a new automobile generation; developing a new aircraft;
of existing product lines or new types creating a new generation of a cellular system
of services to existing markets and
customers

Breakthrough project Introducing a new concept, a new idea, or a The first enterprise resource planning (ERP) package; the first
new use of a product that customers photostatic copying machine (Xerox); the first Walkman; the
have never seen before Segway personal transportation system
 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Required style Time-Critical

Dr = (Br, HT, Sy, -)
Actual style Da = (Pl, HT, Sy, -)
Blitz

Pace

The Segway Project

 Product novelty and project success:
Expectations
Success dimensions and Level of project novelty
possible failure
Derivative Platform Breakthrough

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

Impact on customer Gaining additional customers and Having high strategic impact on Outstanding improvements in
market segments customers; retaining previous customer’s life and work
generation customers

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

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

Preparation for the future Almost none Maintaining a strategic position Creating new markets and
in the market establishing substantial
leadership positions
 Impact of product novelty levels on project
management
Managerial aspect
Derivative (De)
Market data Accurate market data exists
from previous products
and market research
Product definition Clear understanding of required
cost, features,
functionality, etc.
Requirements freeze Early freeze of product
requirements, usually
before or immediately
after project launch
Marketing Emphasize product advantage
in comparison to previous
model; focus on existing
as well as new customers
Level of product novelty
Platform (Pl)
Extensive market research and
careful analysis of previous
generations, competitors,
and market trends
Invest extensively in product
definition, involve potential
customers in process
Freeze requirements later, usually
at mid–project
Create product image. Emphasize
product advantages;
differentiate from
competitors
Breakthrough (Br)
Unreliable market data; market needs
unclear; no experience with
similar products; customer base
not defined
Product definition based on intuition
and trial and error; fast
prototyping to obtain market
feedback
Very late freeze of requirements, often
after prototype feedback
Create customer attention through new
and innovative marketing
techniques; educate customers
about potential of product;
hidden customer needs; create
industry standard
 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Required style Time-Critical

Dr = (Pl, HT, Sy, -)
Actual style Da = (De, MT, Sy, -)
Blitz

Pace

Financial Middleware Software Project

 Technology
Super-High
Tech

Automatic Bag – High-Tech

Handling System Airport
Construction
Medium-Tech Project

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Time-Critical

Blitz

Pace

Denver International Airport Project

 Project types based on levels of technological
uncertainty

Level of technological uncertainty

Low-Tech Medium-Tech High-Tech Super-High-Tech

Definitions Uses only existing, well- Mostly existing Uses many new, recently Key project technologies do
established, and technologies; limited developed, existing not exist at the time of
mature new technology or a technologies project initiation
technologies new feature

Examples Construction, road Derivatives or New systems in a fast- New, unproven concepts
building, utilities, improvements of moving industry (e.g., beyond the
build-to-print products; new computers, military technological state of
models in established systems) the art (e.g., Apollo
industries (e.g., moon landing program)
appliances)
 Project characteristics and technological
uncertainty levels
Variable Level of technological uncertainty
Low-Tech Medium-Tech High-Tech Super-High-Tech
Development, testing, No development; no Limited development; Considerable development Need to develop key
and prototypes testing some testing and testing; prototypes technologies during
usually used project effort;
intermediate small-scale
prototype
Design cycles and Only one cycle; design One to two cycles; At least two or three cycles; Typically three cycles after the
design freeze freeze before early design design freeze usually final technologies have
start of project freeze at midpoint during been selected; late
execution second or third quarter design freeze
Project reviews Formal progress and Formal progress and Technical reviews with Extensive peer reviews by
status reviews status reviews; experts in addition to technical expert teams
some technical formal progress critical to success
reviews reviews
Management style and Firm style; sticking to Less firm style; More flexible style; many Highly flexible style; living with
attitude the initial plan readiness to changes are expected continuous change;
accept some “looking for trouble”
changes
Communication and Mostly formal More frequent Frequent communication Many communication
interaction communication; communication; through multiple channels; informal
scheduled some informal channels; informal interaction
meetings interaction interaction
Project manager and Manager with good Manager with some Manager with good technical Project manager with
project team administrative technical skills; skills; many exceptional technical
skills considerable professionals on skills; highly skilled
proportion of project team professionals
academicians
Contingent resources 5% 5-10% 10–25% 25–50%
 Resources
Legend:

A- Low-Tech
B- Medium-Tech
D
C- High-Tech
C D- Super High-Tech
B
Planned D: n+3 A
B: 1-2 – Number of
Resources design cycles

n – No. of cycles
required to choose
C: 2-3 the final
technologies

B: 1-2

A: 1

Time
Project Project Scheduled Possible time
Initiation Completion
ranges for
design freeze

Risk area

Possible Time Ranges for Design Freeze, Number of Design Cycles,

and Risk Areas for Project Outcomes
Low- and medium-tech versus high- and super-
high-tech projects
Managerial issue Project type

Low- and Medium-Tech High- and Super-High-Tech

Managerial style Rigid, no-nonsense, “get it done” approach Flexible, ready to accept many changes and tolerate long
periods of uncertainty

Project reviews Formal, top management approval of major Formal executive reviews plus technical peer reviews by
phase completion experts

Saving time by Phase overlaps possible Phase overlaps not recommended

overlapping phases

Best contract type Fixed-price Cost-plus; fixed-price is possible at a later stage of

development

Development approach Linear development Spiral development

Additional concerns Lower cost, on time Risk management, systems engineering, quality
management
 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Time-Critical D = (Pl, SHT, Sy, -)

Blitz

Pace

SR-71 Blackbird Project

 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Time-Critical
D = (Br, SHT, Ar, FC)
Blitz

Pace

Apollo Program
Space Shuttle
 The Space Shuttle Program

1969 Initial proposal - to go to Mars in 1980s

Encountered low priorities,
Were asked to look for low-cost alternatives
1972 (August) Program approved; Shuttle only
Based on known technologies -“success oriented”
1972 (November) Design freeze-
configuration and technologies
1978 First flight scheduled
1981 Actual first flight - 60% budget overrun
1982 System declared operational
1986 Challenger accident
2003 Columbia accident
 Space Shuttle Program
Initial Uncertainties

„ First two-medium space vehicle

„ First reusable space vehicle
„ Liquid fuel engines and an external tank
„ Huge 75 Ton glider
„ 5000 Miles glide from reentry to landing
„ First orbital flight with a live crew
„ No crew escape system
 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Required style Time-Critical Dr = (Br, SHT, Sy, Re)

Da = (Pl, HT, Sy, FC)
Actual style
Blitz

Pace

The Space Shuttle Program

 Space Shuttle
Project Management Style

Actual Style Alternative Style

Success oriented Look for trouble

Off-the-shelf items Alternative technologies
Early configuration and Late freeze; Build a
design freeze small-scale prototype
Low flexibility High flexibility
Early operational Extended development
Limited communication Intensive communication

Type C Type D
High-Tech Super High-Tech
 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Time-Critical
D = (Pl, HT, Sy, -)

Blitz

Pace

The Ford 2000 Project

 The three levels of project complexity

Project complexity Product complexity Examples of projects

Assembly project Material, component, subsystem, assembly Development of a PDA, Post-it notes, design of a
single service

System project System, platform of systems Missile development, new computer development,
new automobile model, a single building
construction, restructuring a production
plant

Array project Array, system of systems English Channel tunnel, national missile defense
system, new neighborhood construction,
nationwide cellular system
 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Required style Time-Critical

Dr = (Pl, MT, Ar, -)
Actual style Da = (Pl, MT, Sy, -)
Blitz

Pace

The Chunnel Project

 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Time-Critical
D = (Pl, HT, Sy, FC)
Blitz

Pace

The Harmony Project

 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Required style Time-Critical

Dr = (Br, HT, Sy, TC)
Actual style Da = (Pl, MT, As, TC)
Blitz

Pace

Mars Climate Orbiter Project

 Four levels of pace

Regular Fast/Competitive Time-Critical Blitz

Definitions Time not critical to Project completion on time is
organizational important for company’s
success competitive advantage
and/or the organization’s
leadership position
Meeting time goal is critical Crisis projects; utmost
for project success; any urgency; project
delay means project should be completed
failure as soon as possible

Examples Public works, some Business-related projects; new Projects with a definite War; fast response to
government product introduction, new deadline or a window of natural disasters;
initiatives, plant construction in opportunity; space fast response to
some internal response to market launch restricted by a business-related
projects growth time window; Y2K surprises
 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Required style Time-Critical Dr = (Pl, MT, Sy, TC)

Da = (Pl, MT, Sy, Bl)
Actual style
Blitz

Pace

The Y2K Case Project

Reinventing Project
Management
Part 3 slides
Benefit and Opportunity

Approve Further
High Immediately Consideration

Further Reject
Low Consideration Immediately

Risk or Difficulty
Low High

Risk and Benefit Assessment Matrix

 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Time-Critical

D = (Br, MT, Sy, FC)

Blitz

Pace

Market Watch Project

 Technology
Super-High
Radical Tech
Technological
Innovation
High-Tech

Incremental
Technological Medium-Tech Incremental
Innovation Market
Innovation
Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular
Architectural
Innovation Fast/
Radical
Competitive
Market
Innovation
Modular Time-Critical
Innovation
Blitz

Pace

Innovation Categories and Project Types

 Manage by
Breakthrough
Projects
Product Performance

ning Manage by
t ai
Sus ess Platform
r
prog Projects

nd
dd ema
Hig h-en e ss
ogr
e pr
nd
d d ema tiv
Lo w -e n up
sr
Di

Time

The Innovator’s Dilemma and Project Management

Adopted from Clayton M. Christensen, the Innovator’s Dilemma, 1997 and modified by the authors
 Novelty Breakthrough Platform Derivative Derivative
Platform

Technology Medium to Medium- Medium- Medium to

Super-high-tech tech tech Low-tech

Goal Strategic Strategic Operational Operational

The Evolution of Project Types along the Product Life-cycle

Adopted from Geoffrey A. Moore, Crossing the chasm, 1991 and modified by the authors
 The Microwave Oven Patent Filed
Original Microwave Oven Patent by Doctor Percy L. Spencer, US Patent No. 02495429, Filed Jan. 24, 1950
The first Microwave Oven
 Characteristics of projects for various
customers
Characteristic
Consumer (B2C)
Examples of products MP3 player, PC, cars
Value to customer Impact on quality of life
Producer’s objective High volume, market share
Project focus High focus on time, cost, and
quality
Product definition Defined by marketing;
perceived customer
needs, market research
Project scope: work, Defined by producer
goals, deliverables
Contractual obligations No contract, internal
commitment
Customer involvement No direct involvement; focus
groups or market trials
Financing Internally financed
Marketing Mass marketing,
advertisement; brand
management;
Reliability High reliability required
Product support Service availability
Customer type
Industrial/Business (B2B)
AS/400, B777, ERP systems
Impact on business
Industry leadership, preferred
provider
High focus on time and cost
Continuous customer involvement
Defined by producer with customer
Either external contract or internal
commitment
Sometimes direct customer
involvement
Internally financed, or contracted by
customer
Industry image creation
Reliability may be traded off for timely
delivery
Training, documentation, on-call
support
Government/Public (B2G)
Hubble telescope, FCS, Army
communication
Impact on public goals and needs
Long-term relationship
High focus on performance
Defined by or with customer
Defined by or with customer
Contracted project, obligations to
customer
Intense customer involvement; often
customer representative on
the team
Financed by customer according to
contract
Competition for bids; focused on
major decision makers
Reliability focused on safety
Training, documentation, on-call
support
 Technology
Super-High
Tech

High-Tech

Medium-Tech

Low-Tech

Array System Assembly Novelty

Complexity Derivative Platform Breakthrough

Regular

Fast/
Competitive

Required style Time-Critical Dr = (Br, HT, Sy, Bl)

Da = (Br, HT, As, Bl)
Actual style
Blitz

Pace

Wire and Cable Coating Project

Project Management -
The Two + One Processes

Product Definition Process

Managerial Process

Technical Process

When are you shooting?

 Definition Planning Execution Termination

Revise Plans

Revise Definition

Classical Project Phases Modified to an Adaptive Iterative Approach

 Technology
Later design freeze
More design cycles

Less market data

Later requirement freeze
Complexity

Novelty
Complex organization
Formality

Autonomy

Pace

The Impact of the NTCP Dimensions on Project Management

 A Framework for Adaptation
Category Project Types PM Impact

Strategic Goal Strategic, Operational

Customer External, Internal

Combined NPD, Product Improvement,

Business Objective Maintenance, Infrastructure,
Research

NCTP
Novelty Derivative, Platform,
Breakthrough
Complexity Assembly, System, Array

Technology Low-tech, Medium-tech, High-

tech, Super High-tech
Pace Regular, Fast/Competitive, Time-
Critical, Blitz
 Uncertainty of
Technical Specs and Design

Project Start
Ideal World
Levels Determined by
Novelty, Technology,
And Other Uncertainties
Real World

Requirements
Freeze

Specifications and Design

Freeze
Uncertainty of Requirements

Reducing Requirements and Design Uncertainty

 Entire Adaptive Iterative Approach

Freeze Requirements Freeze Design

Design, Build,
Requirements Planning Specs Complete
Test

Revise Design

Revise Plans

Revise Requirements

Adaptive Approach Traditional PM

 Iterative Process of Requirements and Design Freeze

Change Until Requirements Freeze Specifications and Design Freeze

Complete
Product Requirements Technical Specifications Design, Build, Test Product Prototype
final product

# of Design Cycles

# of Requirements Change Cycles

Initial Market Data Market Research and/or Market Testing

Time

Adaptive Traditional
project management project management
Typical project activities across project phases

Phase Activity Details

Definition Market definition Market/customer identification; Customer need
Business objective Define the expected business objective
Product definition Product description; Product requirements
Project definition Statement of work (scope); duration; budget; PM and team
Identifying project type Categorize a project based on strategic or operational, internal or external user,
novelty, technology, complexity, pace
Success and failure criteria Define management’s expectation on relevant success dimensions
Planning Impact of type on project Decide how each project category will affect project organization, processes,
management plans, activities, and team
WBS Break scope into detailed work packages and activities
Organization Project team structure
Project process plan Major phases, gates, and milestones
Schedule Detailed network and timing of activities
Budget Detailed cost of project based on WBS items
Risk management Risk identification and mitigation plan based on project type
Integration plan Timing and duration of integration activities
Procurement Subcontracting and vendor management plan
Communication Reporting structure and meeting schedule
Human resources Team development and training; Team motivation
Product creation plan Initial technical specifications; product design and testing plan
 Typical project activities across project
phases (cont.)

Phase Activity Details

Execution Product requirements Refine product requirements

Freeze product requirements

Product building Product design

Prototype building and testing
Additional design cycles (redesign, rebuild, retest)
Freeze product design
Product building and testing

Project monitoring Progress and status of budget, time, and activities performed

Project replanning Update plans and make changes

Termination Customer preparedness Training materials and means

Commercialization Product introduction plan

Project wrap-up Project summary report

Next generation planning
Risk Assessment
 Master plan – Entire project

Medium detail plans – 4 to 6 Months

Detailed work plans – Weeks

Time

The “Rolling Wave” Planning Concept

Outsourcing Work Packages
Possible Outsourcing Regions