ASE STUDIES working group, nip of PMO are ror of Case it Pata and to Z Milosevic Srivangaboon Braun 2 ss Schneier Poors Patan They Are Business Leaders at Spotlight Corporation Peerasit Patanakul and Dragan Z. Milosevic ‘This case focuses on program management competencies as practiced in a hnology-driven organization within a high-velocity environment, and on the new product development programs Which fuel the organization's growth eagine. The ‘organization is Spotlight Corporation. a leader inte liquid crystal display projector indasty. The leackecs of Spotlight Corp see program management competencies as an ‘essential element of theirprogram managers’ performenee and continued professional growth, as well ase key factor in whether or nota program will succeed in achieving the desired business zonls. Competencies for program managers at Spotlight Corp are driven by and adapted to the business siategy, This principle is widely used in the business world, Spotlight Corp makes sure thatthe competency’ group ruix Foe program managers is in tune with the company needs, This also includes adjusting the various skills needed within g particular competency area as required, SPOTLIGHT CORPORATION rived at work a litte early, Dave Mosknill reflected on the business of any he had recently joined, Spotlight Corporation, As the newest maniber of Spotlight’s executive management team, Dave spent the last couple of weeks getting famitiae with his new company. Although le colfected s lot of information bout Spotlight, many aspects ofthe business were still unfailiar to him, For Spotlight. product development is the engine of its growth. To maintain a Jeadership position in the market, the company erphasizes leveraging its Petencies in advaneed research and engineering design to develop new m while maintaining customer focus and improving efficiency and effectiveness in _roduct development processes, Rapidly changing technology, customer demas, ssive competitors require a clear and well-developed strategy. many US. corporations, Spotlight recently outsourved its manufacturing ‘oChina. On average, Spotlight implements 40 to 50 product development programs ‘er year. The programs include all types, from cervative to breakthrough, and range From St miltion to move than $5 million in budget, and 9 to 24 months in duration, ae sa paar410 CASE STUDIES Dave scheduled a meeting with Brisn Hall, director of the prograin mattage ment office (PMO), to discuss the way things work at Spotlight. Their discussion, fecusing on Spotlight’s program management function, follows. PROGRAM MANAGERS AT SPOTLIGHT Dave had a particular interest in program managers and the competencies they need in order to be real business lenders, He opened the discussion by asking Brian how many program managers there are, who they report to, and what they do. According to Brian, there are 12 program managers in the PMO, all reporing to him, On average, each of them leads two to three programs at a time—some big, some small. Some of the programs are derivative with added features. Others ‘re new product development programs, Because Spotlight’s goal is to consis- tently make its products physically smaller, it requires ew technologies. New product development programs are fast-paced and involve high market unce, tainty, and high technological and organizational complexity “You need true lesders with int competencies and a wide cange of experience to lead programs like those,” Dave said. Brian agreed, and added, “In our program management office, we have three levels of program managers— centzy level with very lltle experience, highly experienced veterans wha"ve seen it all, and those in between.” Brian added that Spotlight uses a competency metric to help determine the fel of maturity their program managers possess, “We have & comprehensive list of competencies that we think our progiam managers need and we rate their ‘competency level against that list,” he said. Brian explained how Spotlight’s competency list was developed. “When we first thought about the competsacy metric we sat down, studied models inthe technical press, and benchmarked some companies in our industry. We put the list together, but when we used it io gauge program managers, some michievel program managers only scored as a level one, so we knew the mode! jad some serious flaws. We went back to the drawing board, testing different models of the competency metric, Finally, it dawned on us that the competency metric w= developed corresponded to models from the technical press and benchmarked companies, What we really needed was a model for our own business st and cur program managers executing that strategy. We picked our five most stc cessful program managers, evaluated their competencies, averaged! them out and proclaimed them a temporary competency metric. Then, we refined the metre for almost a year until we polished ito reflect our company. and the competencies of ‘our program managers. We tnke pyrite in the fact that itis noc just a competency list, but competencies that help Spotlight’s program managers improve program results," Brian said. ‘conipetenicy metric sheet on the desk and offered itsrationale (see metric had six groups of competencies on the list; administative Ie Competencies af P Table 21.1 Compo Competentes Technicad Knowledge of pada Koowiodge of tink Koowiedge of pega Knowledgeleonpetenei techniques Abily 1 oie techie nerperronot Leadership Communication ‘Team mataernen Problem solving ont runsgement Businenirateic Busines +Customer eonern Invegrtive eapabiig leg hiking Pratven and process competer ‘ies, business and strat Spotlight program: mai fencies as weil. consid ‘These competencies w. PROGRAM MANA: COMPETENCIES Brian explained! to Da skill ancl experionce «¢ the program product. / extensive knowledge 0 techniques related to p solve technical problen eed to kaow the latest‘TUDIES manage- scussion, cies they ing Brian yo, ‘potting e—some 5. Others > consis- es, New ot uncer. range of 4d added, ragers— seen it nine the. hensive ate their “When Is in the We put sid-level ad some odels of trie we marked strategy fst suc= out and tric for cies of peteney rogram tale (see istrative Conpetencies of Project Managers and the Project Monogement Office 414 Table 21.1 Competencies of Program Managers at Spotiight Corporation Competencies Competences Teehiend Adiniatvefprocese Knowledge of rode aplications Monitoxingseones aawledge of technology and tends Knowledge of program products Kovledgekomprense of th os nd Resource manageren echoigues Abily co solve teil probs Company's progr managenen proces Interpersonal Intrapersonel Leadersip Organized and disciplined Communistion Responribe Team management Poogetve and embitinas Problem solving aaure and seconuolled Confit management lexis Businesfersegie Mulipte Program Wanageoient Busines sense Expevince of managing tlie progeams = Cuomer concern Inendepedsney munagenent Integeatve capably masking Sues thinking Simultaneous tun menagement + Prufidecs vonciouses Ieverrozram proces and process competencies, intrapersonal competencies, interpersone] competen- cies, business and strategic competencies, and technical competencies, n addition, Spoilight program managers need to have nmuliple program management compe. tencies as well, considering that they lead two to three programs simultaneously, ‘These competencies will help them coordinate multiple coneurtent prograrms PROGRAM MANAGERS AND THEIR TECHNICAL COMPETENCIES Brian explained to Dave thot tecbrical competencies constitute the knowledge, Skil, anc experience oF 2 program manager related «© che technical facets of the program product. At Spotlight, the program managers do not have fo have extensive knowledge of product technology. know how to use techacal tools ard techniques celated to product developmest. or have the sophisticated ability to solve technical problems, “According to our experience, ovr program managers need 0 know the latest product technologies in the market, but also understand aiasamnanicssa2 CASE STUDIES when we are lalkiag about the importance of system architecture being defined and how critical that is the program,” Brian added, “Ia general, they understand the technological concepts of products and their application, including che know!- edge of technology and dominant treads.” “That concept is exsy for me to grasp because its similar to what we used in iy previous company,” Dave said. “However, the technical aspects of products are very important. How do you know that the fechnical issues will be taken care he asked, Brian emphasized that itis not just that the technical aspects are very impor ont, but in some programs there are also a lot of uncertainties, If'a programm is hhighly complex ancl involves high technological uncertainties, an experienced ‘echnical lead will be assigned to the program and the team will be staffed with technical people. The program manager focuses an the big picture snl the business aspects of the program Dave agreed and emphasized his point that since program managers lead two to three programs simultaneously, it is almost impossible for them to have technical knowledge of all of them, “In general, they should have the knowledge of technology anc! dominant trends,” he sai. ADMINISTRATIVE AND PROCESS COMPETENCIES ARE A GIVEN Dave turned his attention to the auministrative and process competencies, Common sense told him that if program managers do not have the knowledge. skill, and experience in planning, scheduling, organizing, monitoring, and control. they shouldn't be program managers. But he wonderet to what extent those competen cies helped program managers enhance program success Brian gave Dave good information about this issue, He emphesized that, besides planning and scheduling, Spoilight’s program managers should be po: ficient in monitoring and control, “This is very important. since the business environment changes rapidly, and those changes often impact their programs directly.” Brian said. “le other words, if tae changes impact the direction of th program, program managers should be able to recognize those changes, twlk 10 executives about setting new goals, and control the new direction of the programs.” Brian continued that risk maregement is also very important, since most of the programs involve high leve's of technological uncertainty, “Program managers know that they have io identify risks in thetr programs, estimate the probability tf those risks occurring. identify the severity of risks. and propose the counter- measure of strategies to prevent or mitigate them.” he said. “Thave to admit thai we are not very good at tisk management yet.” he added, “but I believe we will be." Dave was glad to hear that there was a desire to improve risk management and decided to emphasize it, “Good.” he said. “Risk management is very impot- tant in our eaviromment, and I understand that itis not easy. Maybe we have «© Competes provide inquire if "Yes, mate resor monitor how thing manageme fo manage they have ‘This will properly e T want ovr that they & of these ad enhance Sf Dave: SOFT Co Spotigat tc programm my tencies a8 steong advo ‘munication, ae proficier with faimese program act tiv, they sh the program shen to in This we Based on my competencie: gram manage have commu programa mar: ration, whet Now, what at Brian cx Spotlight, wa expectation W"ASE STUDIES, ve being defined they understand «ding te kuowl- ‘wht we set in ects of products iil be taken care are very impor- Ifa program is an experienced will be staffed picture and the managers lead oe them to have + the knowledge neies, Common dége, skills, and 4 control, they hhose competen- nphasized that, should be pro- 2 the business their programs irection of their hhanges, talk t0 f the program." + since most of ‘gram managers the probability se the counter admit that we ewe will be.” k menegesnent is very impor be we have to Competencies of Project Managers and the Project Management Office 443 provide more taining on effective risk management practices.” Dave went on to inquire if program managers have the ability to negotiate and allocate resources, “Yes,” Brian replied, “The program managers know how to identify and est mate resources, negotiate resources with the functional groups, allocate them, and monitor and control resources. J also expect our program managers to understand hhow things work here,” He ackied that program managers understand the program management processes, including policies, procedures, and tools that are used to manage programs. In other words, even though they have other competencies, they have to learn the company’s lingo, forms, processes, and get ta know people. ‘This will help them manage programs effectively and, in fact, will help them properly employ their program management competencies. “T inean, all in all, | want our prograth managers to have a solid foundation of program management that they can pretty much tic inwo any type of program,” Brian said,“ call all of these administrative and process competencies, and they consistently help to eahance Spotlight’s program managers results." Dave agreed and the discussion turned toward people competencies. SOFT COMPETENCIES DO MATTER Spotlight learned that having only process competencies is not enough, Their Program managers ae expected to have interpersonal and inttapersonal compe- iencies as well, The company considers these soft competencies, and Brian was a strong advocate ofthis approach, Invepersonal competencies of leadership, com- ‘munication, teat building, problem solving, and coniict management were the competencies listed inthe table he ane Dave were looking at. “Let me give you the details, Dave,” suggested Brien, “Our program managers ‘ne proficient in setting direction, delegating cuthorty, and influencing the ean with Taimess, They also have political competency to be able to set te priority of prograra activities to be in line with management andthe company’s gods. In addi- tioa, they should be able to influence people and have credibility in the eyes ofall the program stakeholders, including senior management. They should also know ‘when fo involve me or senior management in program activities,” he aided ‘This was a hot-button issue for Dave, and he jumped into comment. "Tagree Based on my expecience, program managers should have good communication ‘ompetencies both verbally and in writing,” he seid. “I think a successful pro- {gram manager sbould bea good listener and usk the right questions. see that you have communication competency on the Hist. But I want to emphasize that our program managers need 10 know how to articulate and handle any kind of infor- tation, whether itis technical, leva, edministratve, or interpersonal in nature Now, what about ream management?” he asked Brian commented that team building is very importent, especialy at Spotlight, where some team members are from Europe and Asia, “There is an ‘expectation that program managers put a team together that is committed andaig CASE STUDIES ‘mutually accountable,” he said, “Then, they should be able to keep the team moti vated in @ group setting, They are expected to be good at problem solving and conflict management. As we know, these issues increase the level of complexity when dealing with distributed teams," he added. Dave asked about intrapersonal competencies, and Brian expinined that he expects his program managers to be very organized, thoughtful, and methodical “By being organized and disciplined, program managers are able o perform their Job beiterin a high-velocity eavironment,” he said, “They should also be proactive and ambitious. Program managers should be action-oriented and self-motivated, so that they can anticipate issues and develop a plan to account for them.” He added that he believes program managers are responsible for getting people mot vated. “If they cannot get themselves motivated on the program issues, their teams won't get motivated, The other characteristics that they need, as I listed in the table, are being mature and self-controlled. These will help diem have en ‘ional stability, patience, poise, and tolerance toward uncertainty. Our program managers need these characteristics, especially at Spotlight where things change quickly.” he said. Dave added that program managers should be spontaneous, adaptive ta the working situation, and open to change. “Sometimes program managers have 10 Jead « nontraditional program that xequites them to stay up until 2:00 oF 3:00 in the morning to have a teleconference with a team overseas,” he said, "Therefore, being flexiole is important.” Brian agreed, ading that besides the intrapersonal competencies on the list, being entrepreneurial, creative, visionary, and competitive are also important BUSINESS AND STRATEGIC COMPETENCIES ARE A MUST Dave noticed that business and strategic competencies were on the list, and Brian commented that program managers need to understand business and stra (egic aspects of their programs. “These will help them make the right trade-off decisions on the program, We ean tell from Spotlight's experience that having business sense assists them in formulating any program issues in a business eon text, eeognizing fine variations among schedule, budget, and performance needs, 1nd making benefiticost trade-offs,” he said. “in addition, they pay attention to customers in order to understand and respond to their concerns. We believe that these competencies have helped improve oar programs over time.” Brian acded that the compeiencies Spetlight believes’ ace important are integrative capabilities because they help a program manager make decisions in the system's context. “They have to take into account the big picture, the t2 associated with the products, and customer involvement, while making decisions.” he said Dave stared at the fist thought that the strategic thinking competency was one of top man saying that he was somewhat confused because he meat Co “At Spotlig agers to ha anegemer the strategic ‘These will least, our pu when they Therefore, { business asp prove pro MULTIPLE Not having s mote about cussed are ve comes to coo: agement com, Brian ag manegers sho ‘rains FoF Spo and network i in intercepene interections a hhave to be abk Brian cont they need to kt deliverable lew problem sotvin to the benefit o Multiaskis that good prog (eg, number ¢ switch context: Significant che; program often f ost, and perfoy challenging.” “Sure, they the next." Dave a Switching from o\SE STUDIES the team moti- m solving and of complexity olained that be rd methodical » perform their sobe proactive self-motivated, for them." He ‘g people moti- 1es, their teams 1 listed in the am have emo- Our program things change adaptive to the agers have 10 200 or 3:00 in id. “Therefore, ses on the list, + important wusT 1 the ist, ane iness and sira- at trade-off that having ‘ousiness con: mance needs vy attention 10 ve believe that important ace «© decisions in “2, the revenue ng decisions.” 2d because he ‘management i { | Competencies af Project Managers and the Project Management Office 418 “At Spotlight, people believe that it is very important for our program man agers 10 have this competency es well—maybe not as extensive as what top ‘Management has,” Brian clarified, “We expect them to understand and adage to the strategic direction of Spotlight and recognize our competitive components, ‘These will help them manage their programs more effectively. Last but not least, our program managers should always take profit and cost into uecount when they manage program details. In a nutshell, we are doing business ‘Therefore, in our experience, our program managers should understand the business aspects. This has made our organization more competitive and helped improve program resulis,” he added MULTIPLE PROGRAM MANAGEMENT COMPETENCIES Not having seen this group of competencies before, Dave asked Brian to explain ‘more about it, Brian answered that the competencies they had previously dis. cussed are very important for managing each individual program, But when it comes to coordinating multiple programs simultaneously, multiple progeam mate agement competencies are needed, Brian added that to be good in multiple program management, progeam ‘managers should have at least two years’ experience in managing multiple pro ‘grams for Spotlight, “The point is that they need time to establish their credibility and network inside the company. Program managers should also be competent in interdependency management to be able to manage intetdependencies and interactions among programs related to shared milestones, resources, and technol ogy,” he said, “They should see the big picture and not get lost in details. There are an incredible amount of details in any one program, and program managers heve to be able to step back and focus on the right things. Briaa continued that program managers need io move out ofthe mindset thet they need to Know the task level of details and need to move up to managing the deliverable level across the board for all disciplines, “I think this will help diem in problem solving, too,” be said, “They have to understand how te solve a problem {o the benefit of all the programs they are working on, Malinsking i also important at Spotlight, according to Brian, He stared that good program managers are able to estimate their own resource capacity (e.g., number of work hours per week er month) in order to set priovties aad switch contents and multitask among different programs. “Multitasking is a Significant challenge when managing more than one program because euch rogratn offen has unique chacactcrisics,” he said, “Balancing elements of time, cost, and performance across the metrics of two or three programs is always challenging,” “Sure, they have to get refocused when they move from issues of one program t9 the next,” Dave agreed, “But does being good at multitasking mean losing time when switching from one program's issues to another program's issues?” Dave asked. i ae416 CASE STUDIES Brian nodded, "Yes, Our program managersonce told me that they, on avera} lose 20 to 30 minutes dusing context switching. This can bea big loss oftheir time if they change gears, ie., programs, many times a day.” he said, He added that another issue needing emphasis is that program managers should know how to lead several teams simultancously. “They should be able to select and use differ- cent management styles specifically for each team, Since they have limited time to spend with each team, program managers need to be able to organize the team and have it become effective in @ imely manner,” he added. “In addition, they eve to be expert in commanications, The communication hes to be concise,” he added, “Is hard to find time to have a lot of face-to-face communication with yy people.” COMPETENCY METRIC IN ACTION Finally, Dave and Brian cant to the point of how to gauge these competences and determine the competency level of program managers. “The competency metric is used in many ways,” Brian said. “Firs, itis used to measure the competency Tevels of our program managers. Once that information is available, Spotlight senior management will know what kinds of programs can be assigned to them ‘This is'& part of the program manager assignment process.” Brian continued that, among other things, it is important that the competen- ies for eack Spotlight program align with the skill level of the program manager assigned, “In addition, we considerliow immportant.the programs are Spotlight and issues Timiting the assignments, for example, the time availability of our program managers," he said, “We have quite an elaborate model for program manager assignment, but [ don’t think that we will have time to discuss it now, The idea is that we want to assign important strategic programs to program managers who have sufficiens competencies to lead those programs, We also use this meisic to etermine what kind of training our program managers need for professional Govelopment, Additionally, the metric helps us identify qualified candidates for promotion when new positions for program managers axe created,” he ssi. ave concluded the discussion by saying. “Thanks for & very thorough eseription of our program management competencies, It is clear to me from cur iscussion that these competencies are a pivotal factor in Spotlight's competitive ness, and cur ability 1o consistently execute ou product strategy.” Discussion items 1, Suggest a list of competencies that a project manager in your industry should possess, Compare the list of competencies you suggest with the list from Spotight Corporation, Discuss the similarities and the differences. Thus Corp Six years 3 leaving the acivantages tinuous ste suecesstul he last five While the competi nificantly. T sallion in 24 especially in was that toc resulted in s thatthe estat inarow,ter improvernen San! Co; Senders, alo After the tee forward with managemen 7am manage company nan Soul's pl rajor sta success. His ove such mee