Project Management 2.0/3.0: Planning for
the Future of Project Management
By
Harold Kerzner, Ph.D.
©2016 by Harold Kerzner, All rights reserved.
1
Topic
PART 1:
CHANGING TIMES:
EXECUTIVE APPRECIATION
FOR PROECT
MANAGEMENT GROWS
©2016 by Harold Kerzner, All rights reserved.
2
Project Management Drivers
PM 1.0
Profits are seen as the driver for
using project management
What drives the need for
project management?
PM 2.0
We are managing our business by
projects; growth in applications
PM 3.0
Project management can deliver
sustainable business value
©2016 by Harold Kerzner, All rights reserved.
3
Motorola
• We began looking at our business from the
viewpoint of its core processes… As you
might expect, project management made the
short list as one of the vital core processes.
(Martin O’Sullivan, retired Vice President,
Motorola)
©2016 by Harold Kerzner, All rights reserved.
4
American Greetings
• Through project management, we’ve learned
how to make fact-based decisions. Too often
in the past we based our decisions on what
we thought could happen or what we hoped
would happen. Now we can look at the facts,
interpret the facts honestly and make sound
decisions and set realistic goals based on this
information. (Zev Weiss, Chief Executive
Officer, American Greetings)
©2016 by Harold Kerzner, All rights reserved.
5
An Executive View of the Benefits of
Using Project Management
PM 1.0
The existence of fragmented
project management (as needed)
PM 2.0/3.0 provides
focus, creates business
value and drives the
business; project
management is now seen
as mandatory for
corporate growth.
PM 2.0
We are now managing our
business by projects
PM 3.0
Project management is seen as a
strategic competency for survival
©2016 by Harold Kerzner, All rights reserved.
6
Understanding PM 2.0/3.0
PM 2.0/3.0 is neither a magical quick fix for project
problems nor a Band-Aid. It is a cultural change in
the way that project management must work.
©2016 by Harold Kerzner, All rights reserved.
7
What Executives Expect
from Project Managers
PM 1.0
Low levels of expectation; more
mistrust than trust
Have executives changed
the level of expectations
they have of project
managers?
PM 2.0
Some trust with regard to project
and business decision making
PM 3.0
High levels of expectation; often
expected to do the impossible
©2016 by Harold Kerzner, All rights reserved.
8
What Executives Expect
from Project Managers
Even with good metrics and dashboards,
realistic expectations should be set.
©2016 by Harold Kerzner, All rights reserved.
9
Topic
PART 2:
CHANGING TIMES:
GROWTH OF PROJECT
MANAGEMENT 2.0 AND 3.0
©2016 by Harold Kerzner, All rights reserved.
10
Comparison of PM 1.0 and PM 2.0
Factor
PM 1.0
PM 2.0
Project approval
process
Minimal PM
involvement
Mandatory PM
involvement
Types of projects
Operational
Operational and
strategic
Sponsor selection
criteria
From funding
organization
Required business
knowledge
Overall project
sponsorship
A single person acting
as a sponsor
Committee
governance
Planning
Centralized
Decentralized
Project requirements
Well-defined
Evolving and flexible
Customer involvement Optional
©2016 by Harold Kerzner, All rights reserved.
Mandatory
11
Comparison of PM 1.0 and PM 2.0
Factor
PM 1.0
PM 2.0
Number of constraints
Time, cost and scope
primarily
Competing constraints
Definition of success
Time, cost and scope
Creation of business
value
Executive’s trust in
the project manager
Low level of trust
High level of trust
Amount of
documentation
Extensive
Minimal
Communication media
Formal reports
Dashboards (more
informal)
Project health checks
Optional
Mandatory
Speed of continuous
improvement efforts
Slow; captured at the
end of the life-cycle
Rapid and captured
continuously
©2016 by Harold Kerzner, All rights reserved.
12
Necessities for PM 2.0 to Exist
• Stakeholders are expected to make
informed decisions rather than just
any decision
• Informed decision-making requires
more meaningful metrics
• The metrics information must be
shared rapidly
©2016 by Harold Kerzner, All rights reserved.
13
PM 2.0
PM 2.0 = PM 1.0 + distributed collaboration
©2016 by Harold Kerzner, All rights reserved.
14
PM 2.0 and Web 2.0
PM 2.0 will use much of the social media
software that is currently in use.
©2016 by Harold Kerzner, All rights reserved.
15
PM 2.0 and Web 2.0
We can input metric information from any
location in the world.
©2016 by Harold Kerzner, All rights reserved.
16
PM 2.0 and Web 2.0
We can customize the cell phones and tablets with
a world of project-specific apps.
©2016 by Harold Kerzner, All rights reserved.
17
Security for the Apps
PM 1.0
Minimal security; classifying the
documentation as necessary
How do we provide
security for the critical
information on the apps?
PM 2.0
Security for individual apps and
some mobile devices
PM 3.0
Using a highly secured company
intranet
©2016 by Harold Kerzner, All rights reserved.
18
PM 2.0 and Web 2.0
Data can be displayed over cell phone or tablet screens.
©2016 by Harold Kerzner, All rights reserved.
19
Metrics Accompany You Everywhere
With PM 2.0, all project personnel will have
metrics and project status at their fingertips.
©2016 by Harold Kerzner, All rights reserved.
20
Comparison of PM 2.0 and PM 3.0
Factor
PM 2.0
PM 3.0
Project investment
drivers
Cost and profitability
Alignment of benefits
to strategic objectives
Strategic focus
Fragmented; heavily
on individual projects
Integrated; corporate
portfolio
Business case
development
Unstructured; with
complex assumptions
Structured including
benefits and value
Methodologies
Project methodology;
EVMS and EPM
Frameworks; VMM
Metrics selected
To track tangible
elements only
To track tangible and
intangible elements
Assumptions and
constraints
Fixed over the
project’s life-cycle
Can change over the
project’s life-cycle
Project staffing
Misapplication of
critical resources
Capacity planning and
resource management
©2016 by Harold Kerzner, All rights reserved.
21
Topic
PART 3:
SOME ISSUES WITH THE
GROWTH OF PROJECT
MANAGEMENT 2.0 AND 3.0
©2016 by Harold Kerzner, All rights reserved.
22
PM 2.0/3.0 Issues
Can a large metric library cause headaches?
(i.e. metric mania)
©2016 by Harold Kerzner, All rights reserved.
23
Use of Metric Owners
PM 1.0
Only the triple constraints
metrics were important
Who takes the lead in
metric identification,
evaluation, measurement
and reporting/display?
PM 2.0
PMOs control growth in
competing constraints metrics
PM 3.0
Growth in use of metric owners
as number of metrics increases
©2016 by Harold Kerzner, All rights reserved.
24
Solutions to Metric Mania
PM 1.0
Not necessary because of the use
of just time, cost and scope
Can metric owners and
the PMO work together
to create meaningful
metrics that everyone
will understand and use?
PM 2.0
Attempts to balance between too
many and too few metrics
PM 3.0
Distinguishing between a good
and bad metric is a necessity
©2016 by Harold Kerzner, All rights reserved.
25
PM 2.0/3.0 Issues
How difficult will it be to differentiate
between a good and bad metric?
©2016 by Harold Kerzner, All rights reserved.
26
PM 2.0/3.0 Issues
Information overload is an invitation for
micromanagement and poor decision making.
©2016 by Harold Kerzner, All rights reserved.
27
Topic PART 4:
THE DRIVING FORCES
FOR BETTER METRICS
©2016 by Harold Kerzner, All rights reserved.
28
Identifying The Need
• We need to go to paperless project management
• We need metrics that allow project governance
to make decisions based upon evidence rather
than guesses
• The need for more metrics is inevitable
• Metrics allow us to better manage the competing
constraints of time, cost, scope, risk, customer
satisfaction, safety, value, benefits, etc…
• Our definition of project success is changing
©2016 by Harold Kerzner, All rights reserved.
29
Definition of a Project
• PMBOK® Guide definition: A temporary
endeavor undertaken to create a unique
product, service or result.
PMBOK® Guide – Fifth Edition, Glossary
• Future definition: A collection of
sustainable business value scheduled for
realization.
©2016 by Harold Kerzner, All rights reserved.
30
Definition of Project Success
• Traditional definition: Completion of
the projects within the triple
constraints of time, cost and scope.
• Future definition: Achieving the
desired business value within the
competing constraints.
©2016 by Harold Kerzner, All rights reserved.
31
The PMBOK® Guide and Metrics
INTEGRATION
MGT.
COMMUNICATIONS
MGT.
SCOPE
MGT.
RISK
MGT.
POLITICS
STAKEHOLDER
MGT.
BUSINESS &
STRATEGY
CULTURE &
RELIGION
PROJECT VALUE
MGT.
QUALITY
MGT.
HUMAN
RESOURCE
MGT.
TIME
MGT.
METRICS
COST
MGT.
PROCUREMENT
MGT.
Adapted from PMBOK® Guide – Fifth Edition,
Figure 3-1, p. 61
©2016 by Harold Kerzner, All rights reserved.
32
The PMBOK® Guide and Metrics
©2016 by Harold Kerzner, All rights reserved.
33
Creating the Dashboards
PM 1.0
Nonexistent; time card reporting
Who creates the
dashboards?
PM 2.0
Reliance on external contractors
for dashboard development
PM 3.0
Internally developed dashboards;
hiring of infographics designers
©2016 by Harold Kerzner, All rights reserved.
34
Definition of Infographics
Infographics is the visualization of data in
a manner that is easily understood.
©2016 by Harold Kerzner, All rights reserved.
35
Selecting An Infographics Designer
Selecting the right infographics designer is
critical. A knowledge of project management
would certainly be helpful.
©2016 by Harold Kerzner, All rights reserved.
36
Topic PART 5:
UNDERSTANDING
METRICS AND KPIS
©2016 by Harold Kerzner, All rights reserved.
37
Types of Project Management Metrics
PM 1.0
Metrics based exclusively upon
the triple constraints
How have project
management metrics
changed over time?
PM 2.0
Competing constraints and some
project business-based metrics
PM 3.0
Value-reflective metrics and
strategic portfolio metrics
©2016 by Harold Kerzner, All rights reserved.
38
Types of Metrics
Types of Metrics
Intent
Traditional Metrics
Primarily focus on where we are
today
Key Performance Indicators
Extrapolate the present into the
future to tell us where we will
end up
Value-Reflective Metrics (also
called Value-Based Metrics)
A combination of metrics and
KPIs that tell us the growth of
value creation as the project
progresses
©2016 by Harold Kerzner, All rights reserved.
39
Metric Measurement Techniques
PM 1.0
Rule of Inversion; select the
easiest metrics to measure
Is it possible that today
we can measure anything?
PM 2.0
Growth in competing constraints
and measurement techniques
PM 3.0
Growth in measuring value and
some of the intangibles
©2016 by Harold Kerzner, All rights reserved.
40
Intangibles
• Intangibles, often including benefits and
value, may be tough to measure, but they are
not immeasurable. Tough things to measure
include:
Collaboration
Image/reputation
Commitment
Leadership effectiveness
Creativity
Motivation
Culture
Quality of life
Customer satisfaction
Stress level
Emotional maturity
Sustainability
Employee morale
Teamwork
©2016 by Harold Kerzner, All rights reserved.
41
Topic
PART 6
PROJECT MANAGEMENT
TOOLS, METHODOLOGIES,
FRAMEWORKS AND VALUE
©2016 by Harold Kerzner, All rights reserved.
42
From Methodologies to Frameworks
PM 1.0
EPM Methodologies:
based on rigid policies
and procedures
©2016 by Harold Kerzner, All rights reserved.
PM 2.0/3.0
EPM Frameworks:
forms, guidelines, checklists and templates
43
Comparison: EVMS, EPM and VMM
Variable
EVMS
EPM
VMM
Time
Cost
Scope
Quality
Risks
Tangibles
Intangibles
Benefits
Value
Tradeoffs
©2016 by Harold Kerzner, All rights reserved.
44
Performance Reporting
PM 1.0
Progress
Reports
Time at completion and cost at
completion
Status
Reports
Forecast
Reports
PM 2.0
Business metrics related to the
project and portfolio of projects
PM 3.0
Has the content of forecast
performance reporting
changed?
©2016 by Harold Kerzner, All rights reserved.
Projections on benefits and value
at completion
45
Organizational Reporting of Project
Management Performance
PM 1.0
Reporting to the sponsor and the
lowest level in the organization
Who now asks to see
project performance
information, especially
benefits and value?
PM 2.0
Performance reporting to PMOs,
middle and senior management
PM 3.0
Reporting to the corporate board
room
©2016 by Harold Kerzner, All rights reserved.
46
Topic
PART 7
PROJECT
MANAGEMENT
DASHBOARDS
©2016 by Harold Kerzner, All rights reserved.
47
Project Management Dashboards
PM 1.0
Very limited use of dashboards;
primarily financial dashboards
Are there rules
for dashboard
design efforts?
PM 2.0
Growth in use of dashboards;
reliance on external contractors
PM 3.0
Growth in use of dashboards;
internally developed dashboards
©2016 by Harold Kerzner, All rights reserved.
48
Rules for Dashboard Design and Layout
• Some rules exist for dashboard design
and layout:
•
•
•
•
•
•
Rules for selecting the right artwork/image
Rules for screen real estate
Rules for artwork placement
Rules for color selection
Rules for accuracy of information (2D vs. 3D)
Rules for aesthetics
©2016 by Harold Kerzner, All rights reserved.
49
How The Mind Works
Even the best metrics and dashboards cannot
compensate for the ways that people process
information.
©2016 by Harold Kerzner, All rights reserved.
50
Topic
PART 8
THE NEED FOR
REVISITING PROJECT
MANAGEMENT EDUCATION
©2016 by Harold Kerzner, All rights reserved.
51
Three Generic Categories of Skills
Hard
Skills
Soft
Skills
Ethical
Behavior
©2016 by Harold Kerzner, All rights reserved.
52
Recovery Project Management
PM 1.0
Replacement of the project
manager or “kill” the project
Is special leadership
needed to improve the
chances for recovering a
failing project?
PM 2.0
Recognizing the importance of
periodic health checks
PM 3.0
Recognizing the skills needed for
recovery project management
©2016 by Harold Kerzner, All rights reserved.
53
Other Project Management Values
PM 1.0
Only the economic value of the
projects was important
Are there multiple forms of
value that are important in
project management?
PM 2.0
Recognizing the existence of
values other than economic
PM 3.0
Recognizing the importance of
cultural, religious and politics
©2016 by Harold Kerzner, All rights reserved.
54
Other Types of Values
Economic
Values
Behavioral
Values
Cultural
Values
Values
Religious
Values
Aesthetic
Values
Political
Values
©2016 by Harold Kerzner, All rights reserved.
55
Project Management Certifications
PM 1.0
Nice to have but not necessary
How many certifications
are actually necessary?
PM 2.0
Seen as a necessity especially for
competitive bidding
PM 3.0
Business process certifications
and use of Certification Boards
©2016 by Harold Kerzner, All rights reserved.
56
Questions?
©2016 by Harold Kerzner, All rights reserved.
57