by Sarah Fister Gale // illustration by Matt Kenyonit sounds ODVIOUS: ““ (ORK FEBRUARY 2010 Projects that swerve from the company’s vision and strategy shouldn't be pursued. Period. Ie’s one of the first rules of good portfolio management—and good business Yet the ugly truth is that misfit projects that neither align with the goals of the business nor tap into the core compe- tencies of the team are launched around the world every day. And woe to the project managers who get saddled with these “black sheep. “They have low probability of success and low expected reward,” says Marcelo Granieri, PMP, IT portfolio manage- at Standard Bank, Buenos Aires, Argentina. “They receive ment office mana funding and initial support, but then that support fades over time.” Ie’s a no-win situation. Even if the projects are delivered successfully—on time, on budget, with goals met— they‘ still considered failures because they ultimately don’t contribute value to the business From implementing unnecessary sofiware systems to developing new products or markets that don't fit with the current business straregy, the projects can burn through piles of money and waste precious time if they're not shut d. But because such projects aren't always obvious contenders for failure that's easier said than done. Often enough, they're well-intentioned but low-priority efforts, such as mainte- nance initiatives or technology upgrades that have no major impact on the business. And though they might ic team or busi make sense for a spec ness division, they might not be right for the organization as a whole BEFORE IT’S TOO LATE OF cout projects in the bud. And one of the c, its best to nip these pesky most effective wa of doing that is by investing in a strong governance process that includes a thorough review of every project's business case prior to approval. As part of that process, portfolio managers and project governing bodies must be authorized to make tough decisions and to hold stakeholders accountable for the projects they promote says Chris Covey, PMP, manager and instructor at UMT Consulting Group, New York, New York, USA. “They are the ones most closely in tune with the corporate objectives and they can require project sponsors to make a connection between project goals and business objectives,” Mr Covey says. Once a project launches, regular reviews must be conducted to evaluate its progress in terms of corporate objec tives. If the project and business goals are still aligned, the project can move ” piahead. If not, portfolio managers must be empowered to kill i off, says Didier Rancher, general manager at Global Synergy Group, a risk management firm in Paris, France. “Ics a hard choice to get rid of a project that is underway, but a project has to fit with the strategies of the com- pany or it will not add value,” he says. In today’s economy, it’s even more imperative that poorly aligned projects not be allowed to move forward. “In dynamic businesses, changes happen all the time that impact programs and projects,” says Jeffrey Hodgkinson, PMP, PeMP senior program manager at semiconductor giant Intel, Chandler, Arizona, USA. “Stakeholders approve initiating a program that makes busi- ness sense based on the information they have at the time, but six months later the business environment can change and therefore the program is no longer valid.” At companies like Intel, such situa- tions are not uncommon. “It’s why we have project checkpoints,” he says. Mr. Hodgkinson was recently involved in a service management project that was cut short because “the business needs were going in a new direction,” he says. “The VP made the decision to change directions, and the project was disbanded.” In fact, most projects aren't set in stone—and executive teams weary of the economic crisis are now more will- ing to discuss options, Mr. Covey says. “Governing bodies are much more open to questioning projects than they were a few years ago. Questions are being asked more openly and things are constantly being reassessed,” he says. “There are so many variables that you have to reevaluate projects in flight and ask whether you want to keep going and whether the benefits are really there.” UNIVERSITY OF MANAGEMENT AND TECHNOLOGY www.umtweb.edu ‘A major player in project manage- ment education and training. Dr. Frame has written eight books and more than 30 scholarly articles on the subject, His busi- ness best seller books include: Managing Projects in Organizations, Managing Risk in PhD, PMP. Organizations, The New Project Manage- J. Davidson Frame, Academic Dean 1-800-924-4883 Degree Programs in Project Management * DBA+ MBA+ MPA+ MSM « MSIT Project Management IT Project Management Acquisition Management PDU Courses and Certificates in Project and Program Management + Project Management Suite™ Courses http://pmsuite.umtweb.edu More than 30 courses to advance PM knowledge and emerging new skills ” Project Management Institute + Executive Certificate in Project Management ment, Project Management Competence, and Project Finance: Tools and Techniques. + Executive Certificate in Acquisition Management UMT courses are online and self-paced. PMP, PMI Global Accreditation Center logo and the PMI Registered Ecucation Provider logo are registered marks ofthe Project Management Institute, Ine FEBRUARY 2010 Pi NEassumed benefits of the project are with the sponsor and portfolio management group,” Mr. Covey says. By focusing the discussion on the i tiative’s business case and metrics, proj- ‘ect managers can underscore the discon- neets between project goals and business strategy with facts—not opinions or emotions, “Openly discuss whether you've made valid assumptions, or whether changes in the scope, schedule or budget made it impossible to achieve your goals,” Mr. Covey says. Ideally, the conversation will prompt the project sponsor to rethink the decision to move forward. Yet even minimum level of rigor for every project,” she says. Atone point, Ms, Flora and her team ‘met with the project sponsor and voiced their concern that the effort would create confusion and inconsistency. “You have to at least tell the sponsor why the project doesn't align with the strategies of the business,” she says. “If not, you dont benefit the company or yourself.” The sponsor opted to push forward anyway, leaving Ms. Flora and her team litte choice but to roll out the program to hundreds of employees across the country. “Ie was a disaster,” she admits. “I learned a lot aboue pet projects that don't “If you can draw connections to strategic goals or link [a ‘black sheep’ project] to other projects, ble to create some positive buzz.” Chris Covey, PMP, UMT Consulting Group, New York, New York, USA PM NETWORK FEBRUARY 2010 HWW.PMLORG with all the facts presented, that’s not always the case. .e been on my fair share of ‘death march’ projects that hang on to the bitter end,” Mr, Covey admits. In those scenatios, the best bet is to try coalign the project with corporate strategy. “IF you can draw connections to strategic goals or link it to other projects, you may be able to create some positive buzz,” he says. If stakeholders remain determined to continue a questionable initiative, project managers should concentrate on deliv- ering to the expected goals, says Erika Flora, PMP, principal of Beyond 20, a management consulting group in San 0, California, USA. Just dont expect smooth sailing Ms, Flora recently completed an initia- tive that “went against the best prac- tices of the company and where it was trying to go in terms of creating a align with the strategy of the business.” “The project also proved to bea valuable lesson in how to handle a bad situation, ‘Once her team members realized they had no choice, they agreed to do their best, regardless of personal opinions. “We put cour feelings on a shelf and made good on the project,” she says. The team laid out a plan to please the sponsor and to salvage what it could given the circumstances. “Ie brought us closer together as a team,” Ms, Flora says. “We found ways to make the program interesting and fun, and in the end the sponsor was happy, which ultimately was our goal.” Making the most of black sheep projects is sometimes all you can do, says Mr. Granieri. “In my experience, the best advice is to finish the project in the correct way—and then start to seek more challenging projects.”