University of the Cumberlands Project Management Case Study

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Spotlight
Series
Project Management
Better Project Management
The Project Economy Has Arrived
by Antonio Nieto-Rodriguez
Agility Hacks
by Amy C. Edmondson and Ranjay Gulati
Make Megaprojects More Modular
by Bent Flyvbjerg
Reprint R2106B
This document is authorized for use only by Gourav Garg in BADM 623 – Project Management Processes taught by Daniel Kanyam, University of the Cumberlands from Jan 2022 to Jun 2022.
For the exclusive use of G. Garg, 2022.
AU T H O R
Spotlight
BETTER PROJECT MANAGEMENT
Antonio
Nieto-Rodriguez
Former chairman,
Project Management
Institute
The Project
Economy
Has Arrived
Use these skills and tools to
make the most of it.
Q
powerfully, projects
have displaced
operations as the
economic engine
of our times. That
shift has been a long time coming.
During the 20th century, operations
(which involve the running of organizations) created tremendous value,
and they did so through advances in
efficiency and productivity. But for most
of the current century, productivity
growth in Western economies has been
almost flat, despite the explosion of the
internet, shorter product life cycles, and
exponential advances in AI and robotics.
2
U I ET LY BU T
Harvard Business Review
November?December 2021
Meanwhile, projects (which in?volve
the changing of organizations) are
increasingly driving both short-term
performance and long-term value
creation?through more-frequent
organizational transformations, faster
development of new products, quicker
adoption of new technologies, and so
on. This is a global phenomenon. In
Germany, for example, projects have
been rising steadily as a percentage of
GDP since at least 2009, and in 2019
they accounted for as much as 41% of
the total. Precise data is hard to come
by for other countries, but similar per?
centages are likely to apply in most other
Western economies. The percentages
Photographs by JOERG GLAESCHER
This document is authorized for use only by Gourav Garg in BADM 623 – Project Management Processes taught by Daniel Kanyam, University of the Cumberlands from Jan 2022 to Jun 2022.
For the exclusive use of G. Garg, 2022.
FOR ARTICLE REPRINTS CALL 800-988-0886 OR 617-783-7500, OR VISIT HBR.ORG
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November?December 2021
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This document is authorized for use only by Gourav Garg in BADM 623 – Project Management Processes taught by Daniel Kanyam, University of the Cumberlands from Jan 2022 to Jun 2022.
For the exclusive use of G. Garg, 2022.
ABOUT THE ART
Spotlight
BETTER PROJECT MANAGEMENT
are probably even higher in China and
other leading Asian economies, where
project-based work has long been an
important source of growth.
And we?re only just getting started.
In 2017, the Project Management
Institute estimated that the value of
project-oriented economic activity
worldwide would grow from $12 trillion
in 2017 to $20 trillion in 2027, in the process putting some 88 million people to
work in project management?oriented
roles?and those estimates were made
before nations started spending trillions on pandemic-recovery projects.
Forward-looking companies have
recognized the organizational implications of this surge. ?Soon we will
no longer have job descriptions,? one
senior IBM talent executive told me.
?We will have only project roles.? That?s
where the management thinker Roger
Martin believes we already should be.
?The average person in an office thinks
that their life is some sort of regular
job,? he told me, ?and that the projects
they work on get in the way of doing
it. In fact, in organizations the entire
decision factory should be thought of as
nothing but projects.?
Artist Joerg Glaescher contemplated the
intense power of nature by handcrafting
waves out of gathered deadwood in the
forest near his home in Leipzig, Germany.
Some companies are already
starting to make this change. In 2020,
Mohamed Alabbar, the founder and
chairman of Emaar, the giant Dubaibased property developer, announced
that as part of a shift to project-based
work, the company had abolished all
traditional job titles?including his
own?and that employees would now
be defined not by the department to
which they belonged but by the projects
on which they worked. In a similar
move, the Richards Group, the largest
independently owned ad agency in the
United States, has removed almost all
its management layers and job titles
and now refers to most of its employees
as project managers.
This transformation to a project economy will have profound organizational
and cultural consequences. The problem
is, many leaders still don?t appreciate the
value of projects and write them off as a
waste of time. Typical is the attitude of
one executive who recently told me, ?If
you want to make sure that something is
not done, make it a project.?
It may be that leaders don?t value
project management because its
methods are too complex to be easily
applied. Many project managers end
up producing reams of paperwork,
too, which can create the impression
that their role is primarily administrative. Dismissing the importance and
potential of projects for these reasons
is a huge mistake. When executives
ignore project management, products
launch late, strategic initiatives don?t
deliver, and company transformations
fail, putting the organization?s future
seriously at risk.
There?s one more thing that executives often fail to recognize: Projects
give work meaning. Behavioral and
social science show that projects can
be particularly motivating and inspiring for team members. The moments
they feel most proud of almost always
happen on the projects they work on?
the successful ones, of course, but often
even those that fail.
Leaders need to recognize that their
role in the project economy involves
more than just the direct sponsorship
of individual initiatives. At a broader
level, it involves being clear and coura?
geous in selecting and prioritizing
strategic projects. It involves adopting a
project-?driven structure and creating
a collaborative and empowering culture
that reaches across silos. They must
also ensure that project management
competencies are developed throughout
the organization.
I can say all this with confidence
because I?ve devoted my career to the
study of projects and the practice of
ID E A IN BRIEF
4
THE PROBLEM
Despite this shift, many leaders still
undervalue projects and project
management. As a result, only 35% of
the projects undertaken worldwide
are successful?which means we?re
wasting an extravagant amount of
time, money, and opportunity.
THE WAY FORWARD
Companies need to reinvent their
approach to project management.
They need to adopt a project-driven
organizational structure, ensure that
executives have the capabilities to
sponsor projects, and train managers
in modern project management.
Joerg Glaescher/laif/Redux
THE SITUATION
Projects have displaced operations as
the economic engine of our times. By
2027, some 88 million people around
the world are likely to be working in
project management, and the value of
project-oriented economic activity will
have reached $20 trillion.
Harvard Business Review
November?December 2021
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For the exclusive use of G. Garg, 2022.
COPYRIGHT ? 2021 HARVARD BUSINESS SCHOOL PUBLISHING. ALL RIGHTS RESERVED.
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project management. I?ve worked as the
director of the program-management
offices at PwC, BNP Paribas Fortis, and
GlaxoSmithKline. I?ve served as the
chairman of the Project Management
Institute. I?ve taught thousands of
senior leaders, managers, and project
managers at several top business
schools. In short, I have worked on and
examined projects from every point
of view, and what my work has taught
me is that we need a clearer, simpler,
and more comprehensive approach to
project management.
The stakes are high. According to the
research firm the Standish Group, around
35% of the projects undertaken worldwide
are successful. Given that we?re talking
about tens of trillions of dollars, and the
labor of millions of employees, that?s a
mind-blowing number. It tells us that
we?re not only wasting 65% of the time
and money that we?ve invested in our
projects but also forfeiting trillions of
dollars of new value for organizations and
society at large.
We can and we must do better. In this
article I?ll present a simple but powerful
project-management framework that
can make the job easier for everyone,
and I?ll lay out six skills that you?ll need
to succeed in an increasingly project-?
centric world.
From Operations to Projects
It?s often said that to succeed in times of
change, companies need to be organizationally ambidextrous?or as the
academics put it, they must balance the
exploitation of their current capabilities
(operations) with the exploration of
new competencies (projects). In other
words, they need to focus simultaneously on running the organization and
changing it.
Running the organization (operations). This dimension is made up
of the core and legacy activities of the
business. It includes functions such as
sales, customer service, finance, manufacturing, and IT. Most of the revenues
(and fixed costs) generated by firms
are from running-the-?organization
activities. These functions are what
keep the company alive. Running
the business is about efficiency,
productivity, and speed. The focus is
short-term, the objectives are mainly
performance-driven, and the structure
is hierarchical. Culturally, the model is
command and control.
Changing the organization (projects). This dimension is key to the
future of the company. It includes all
the organization?s strategic and tactical
initiatives and programs. Changing the
business is about innovation, transformation, agility, and long-term value
creation. The focus is medium- to longterm, the objectives are more strategic,
the structure is flat and project based,
Harvard Business Review
November?December 2021
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This document is authorized for use only by Gourav Garg in BADM 623 – Project Management Processes taught by Daniel Kanyam, University of the Cumberlands from Jan 2022 to Jun 2022.
For the exclusive use of G. Garg, 2022.
Spotlight
BETTER PROJECT MANAGEMENT
and the outcomes are less quantifiable
than operational results. Culturally,
the model is entrepreneurship and
collaboration.
The future belongs to organizations
that can achieve the right balance of
run and change, but most leaders are
far better at the former, and so spend
more of their time on it. That?s a legacy
of the 20th century, when, starting in
about 1920 and guided by the likes of
Henry Ford and Frederick Taylor, most
companies made productivity their
prime directive. They achieved it with a
relentless focus on increasing efficiency,
reducing costs, and raising volumes
and outputs. Because they mainly
produced goods, they grew in mostly
organic ways: by increasing production
capacity, by standardizing and automating processes, and by entering new
markets. Once a year, senior leaders
would decide on strategies, projects,
budgets, and operating plans and then
would manage operations accordingly.
Between annual-planning cycles, only a
few minor amendments were allowed.
All this made operations extremely
efficient. But efficiency has its downsides. By commoditizing their processes, companies sacrificed elements
of medium- and long-term value
for speed. They regularly grew their
businesses through acquisition, often
at the expense of organic growth, or as
an alternative to it. That allowed them
to accelerate their product-release
schedules or simply to produce more.
But there comes a point after which a
strategy of more volume, more product
releases, and more brand extensions
simply runs out of road. Sustainable
growth through further efficiency
6
becomes impossible, especially in times
of uncertainty and rapid change.
That?s where we are today. The yearly
operational rhythm that prevailed for
a century is out of touch with reality.
Every organization, public or private,
now operates in an environment of
continual and sometimes disruptive
change. Projects used to be temporary,
and operations permanent, but now
the reverse is true: Operations keep you
afloat temporarily, and change is what?s
permanent. Anticipating, managing,
and driving change thus become the
prime directives. And what?s the best
way to do those things?
Handle your projects better.
New Terms and Conditions
What exactly is a project? Everybody
uses the word, but it means different
things to different people. That?s a
problem. As projects drive more and
more of the value that organizations
create, everyone needs to have a common understanding of what projects
and project management are. So let?s
briefly define them.
Projects involve a series of planned
activities designed to generate a deliverable (a product, a service, an event).
These activities?which can be anything
from a grand strategic initiative to a
small program of change?are limited
in time. They have a clear start and end;
they require an investment, in the form
of capital and human resources; and they
are designed to create predetermined
forms of value, impact, and benefits.
Every project has elements that are
unique. That?s key: Each contains something that has not been done before.
Project management, for its part,
involves the collection of competencies, techniques, and tools that help
people define, plan, and implement
projects to achieve their goals. Most
project-management methods we use
today were developed in the 1970s
and 1980s and reflect the efficiency
and standardization methods used for
operations management. Organizations typically adopted one standardized project-management methodology
and applied it consistently to all their
projects. Over time, what project
management was and what it needed to
be drifted apart. Organizations evolved
rapidly, and although the number
of projects increased exponentially,
project management somehow stayed
in the past.
Using the traditional model, project
managers have focused far too much
on inputs and outputs (planning,
estimation, cost, time, scope, risk
management) and not nearly enough
on outcomes and value (purpose, rationale, benefits, impact, and strategy).
It hasn?t mattered much to them what
happens before or after their projects
are complete?they?ve concerned
themselves with deliverables, the idea
being that if they can complete their
projects on time, on budget, and on
scope, then the promised benefits will?
just happen.
Typically, project managers conceive
of their projects in life cycle stages,
moving sequentially from initiation
through planning and implementation
to closing. You work on one stage until
you?re done; you move on to the next;
and when you?ve made it through the
final one, your project is complete. At no
point do you return to a previous stage.
But we now know that projects don?t
lend themselves naturally to such a
rigidly sequential, one-size-fits-all
approach. In taking on work that?s never
been done before, projects involve
experiments and false starts and failures
and, as a result, are prone to movement
Harvard Business Review
November?December 2021
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Agile and traditional project management aren?t at war with each other. In a change-driven
world, companies can?t apply just one methodology to all their projects.
back and forth among the stages. To run
projects well, sponsors and managers
need to focus on three main things:
innovating; creating a high-performing
team; and, most important, delivering
benefits.
In the early 2000s, as the internet
and new technologies converged to
create an explosion of change, the agile
movement began to take hold as an
alternative to the rigidity of traditional
project-management practices. The
focus was on accomplishing work in
smaller increments, on delivering
value to customers faster, and on
evaluating requirements, plans, and
results continuously. Agile has been a
positive development in many ways,
but at times it has led to tribalism in the
project-management-expert community. Many leaders see agile as cool and
fresh, and traditional project management as obsolete?and so they have
rashly instituted agile throughout their
organizations.
That is counterproductive. Agile
and traditional project management
aren?t at war with each other. In a
change-driven world, companies can?t
apply just one methodology to all their
projects. Instead, they need a toolbox
of approaches?among them agile
and traditional project management,
certainly, but also design thinking,
change management, and product
development?and then must build
competencies in all of them throughout
their organizations.
But to make that possible, they first
need a framework that allows everybody
in the organization to see, understand,
and work productively on the key ele?
ments of any given project.
The Project Canvas
I?ve created just such a framework for
the executives and managers I teach
and advise across the globe?a onepage strategic template that I call the
project canvas. The concept is inspired
by the business model canvas developed by Alex Osterwalder and Yves
Pigneur and used by millions of people
worldwide. Both Alex and Yves helped
with early brainstorming for the design
of the project canvas. A few other
frameworks with the same name exist,
but none has been as widely adopted as
this one.
The framework is composed of just
three domains: foundation, people, and
creation. Each domain is vital to the
success of any project. (See the exhibit
?The Project Canvas.?)
What distinguishes the project canvas
from other guides to project management? A lot of things. It can be applied
to any project, program, or strategic initiative. It focuses on value and benefits
rather than processes and controls, and
it encourages you to focus on how to
quickly deliver the elements of greatest
value. It helps you ensure that every
project has a purpose and lines up with
your organization?s strategy. It focuses
on implementation rather than detailed
planning, and?this is critical?it spans
not just the traditional project life cycle
but also the pre- and postproject phases,
to include aspirations and benefits. It?s
flexible and allows changes to be made
quickly whenever necessary.
The project canvas works with all
project-management methodologies,
and it guides each stage of the process.
It is used before the project begins, to
assess how well it has been defined
and whether it?s ready to go. It is used
throughout the project to track progress
and ensure that critical elements and
assumptions remain valid. It is used
near the end, to assess whether the project is delivering its intended benefits,
and after the project is over, to capture
lessons learned and build up competencies found to be lacking.
The canvas process begins just before
you invest heavily in a project but after
you have put both a project manager
and a project sponsor in place. Those
two roles are key to the success of any
project. It?s common to think of a project
manager as focusing primarily on the
technical aspects of the project?with
the goal of providing the deliverables
on time, within scope, and on budget?
while the project sponsor oversees
and supports the project manager and
ensures that the project stays true to
its purpose and delivers its promised
benefits. But that division diminishes
the role of the project manager, who also
needs to be concerned with purpose
and benefits. When it comes to how a
project is run and what its goals are,
the manager and the sponsor must be
on the same page?which, of course, is
exactly what the project canvas makes
possible.
The canvas has to work for everybody, so it must be built on consensus.
The project manager should start by
convening a project-definition workshop?a meeting that brings together
the project sponsor, key stakeholders,
and company experts, not to mention
anybody else who might provide relevant information, including customers
and suppliers. This meeting might take
Harvard Business Review
November?December 2021
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This document is authorized for use only by Gourav Garg in BADM 623 – Project Management Processes taught by Daniel Kanyam, University of the Cumberlands from Jan 2022 to Jun 2022.
For the exclusive use of G. Garg, 2022.
The Project Canvas
This framework ensures that every project has a purpose and lines up with your organization?s strategy. It is a living document, to be revisited
anytime you face a major decision or make changes to the scope of the project.
Foundation
People
Creation
Purpose
Sponsorship
Stakeholders
Resources
Deliverables
Plan
Change
Why
are we
doing the
project?
Who is
accountable
for
the project?
Who will benefit
from and be
affected by the
project?
Who will manage the
project, and which
skills are needed to
deliver it?
What will
the project
produce, build,
or deliver?
How and
when will
the work be
carried out?
How will we
engage
stakeholders and
manage the risks?
Investment
How much will the project cost?
two or three hours. Don?t rush it. Make
sure everybody has a blank copy of the
canvas. Review the goals, scope, and
details of the project, and walk through
the elements of the canvas template.
Then have everybody brainstorm for a
while. Start with the foundation, and
then move through the other domains
and their building blocks. Ask participants to share their views and opinions,
and then using a master copy of the
canvas, summarize the main themes
that have emerged for each domain and
building block. You?ll now start to see a
picture of the challenges ahead.
At this point, your canvas will have
a lot of information on it. Ask yourself,
Does it all work together as a cohesive
and integrated whole? Does it make
sense from a strategic and an organizational perspective? Does it acknowledge
that you?ll be implementing your project
in a fast-changing and multiple-priority
environment? Now is the time for some
careful thought and focused iteration. If
you are missing or unclear about two or
more building blocks, it?s probably too
early and too risky to start your project.
Take more time to define them. And if
8
Benefits
What benefits and impact will the project generate,
and how will we know the project is successful?
you still can?t do that, don?t start the
project at all.
When the meeting ends, the process
is far from over. Your next step is to
share the document you?ve produced
with other stakeholders and incorporate
their feedback.
The canvas is now a living document,
to be revisited regularly. Consult it each
time you face a major decision, and
update it any time you make changes to
the nature of the project or your goals.
You might even want to feature the canvas in your drumbeat communications.
Consider producing a video, drafting an
article, or facilitating a short workshop
around one (or more) of the elements in
the canvas on a regular cycle?perhaps
once a month.
Skills and Training
Projects are only as good as the people
who run them. So what are the main
qualities that leaders need to excel in a
project-driven world?
I divide them into six categories.
Project management skills. Executive sponsors need a solid grounding
in the essentials of project management. They need to know why projects
succeed or fail, how to ensure that a particular project?s technical fundamentals
are robust, and which characteristics of
that project to consider when choosing
its project manager. In addition, they
need to understand the technical complexity and constraints associated with
how plans and estimates are developed.
Project managers, for their part, need
to be able to use tools and techniques to
determine the rationale and business
case for a project. They must be adept at
working with contributors and partners
in defining scope. They need to know
how to identify and manage risk effectively. Once a project is underway, they
are responsible for establishing reporting mechanisms to monitor execution
and quality. When delays or changes to
the plan are foreseen, they need to be
able to anticipate their impact and come
up with viable alternatives.
Product development and subject
matter expertise. Project sponsors and
managers need to develop a reasonably proficient understanding of the
technology, features, product, service,
Harvard Business Review
November?December 2021
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FOR ARTICLE REPRINTS CALL 800-988-0886 OR 617-783-7500, OR VISIT HBR.ORG
Spotlight
BETTER PROJECT MANAGEMENT
or capabilities that the project aims to
produce. This will do a lot for them: It
will give them credibility with the team
and the stakeholders. It will enable
them to communicate in the language
of the experts and the product teams. It
will ensure that they understand what
the project benefits are, and how and
when they will be achieved. And it will
help them understand how the project
connects with the organization?s overall
strategy.
Strategy and business acumen.
Because of their seniority, executive
sponsors tend to have a good understanding of their organization, its
strategy, and its key competitors. They?re
also typically savvy when it comes to the
financials and the environment in which
their projects will be implemented. Project managers often need to develop these
skills. Being able to connect the project
benefits and purpose to concrete business priorities is essential for winning
buy-in and achieving goals. Also key is a
strong focus on a project?s benefits and
impact, even in the early stages.
Leadership and change management skills. Project sponsors and
managers today need strong leadership
and change management capabilities.
They have to create high-performing
teams; provide direction; manage and
persuade across multiple cultures;
build bridges across the organization;
communicate clearly and effectively;
evaluate, develop, and coach staff; and
resolve disagreements in ways that all
parties can embrace.
Agility and adaptability. There?s no
question that project sponsors need to
adapt to agile methods. In the old world,
they were expected to lead according
to a predetermined plan and treat
decisions as simple and binary. But in a
change-driven world, they won?t have
all the answers and will need to alter
their course and cancel projects regularly. Many agile training groups offer
very helpful courses and certifications
that can provide a solid knowledge base.
Similarly, project managers need to
be comfortable working in uncertain
contexts and making plans and decisions with only limited information.
They should be prepared to apply some
agile methods or adaptive techniques,
among them Agile Project Management, Scrum, Kanban, and Scaled Agile
Framework.
Ethics and values. Project sponsors
and managers are role models. They
create a safe, respectful, nonjudgmental environment in which the project
team can build trust and communicate
openly. In the launch phase of any project, consider developing a code of ethics
to guide you and the project team. Start
by consulting existing models. Both
the Project Management Institute and
the International Project Management
Association have codes posted online.
Mastering these skills is no small
task, but fortunately plenty of good
options for learning are available.
Some business schools offer yearlong
programs in project management.
Groups such as the Project Manage?
ment Institute and Prince2 offer
internationally recognized programs
of accreditation. PM2, from the European Commission, and Praxis provide
free project-?management frameworks
online, and the International Project
Management Association offers a competency framework for technical skills.
The best option, however, is to develop
an in-house training program specific to
your organization?s needs and culture.
just make work
better?they make the world better.
If managers and organizations want
to build the competencies required to
transform themselves and thrive in the
new project economy, they?ll need to get
comfortable devising strategies that are
driven not by efficiency but by change.
They?ll need to allocate more resources,
budgets, and decision-?making power
to projects and project teams at the
expense of the traditional departmental hierarchy. They?ll need a simple
framework, such as the project canvas,
so that everybody in their organizations
can get involved. They?ll need to build
project management competencies
and adopt new technologies. They?ll
need to encourage a shift in focus from
inputs and outputs to outcomes and
value. They?ll need to broaden the scope
of their ambitions for their projects,
by including, for example, a focus on
diversity and sustainability.
If all of us as leaders can do these
things, just imagine what we?ll collectively make possible: By executing our
projects better, we?ll be able to provide
trillions of dollars? worth of additional
benefits to the world.
GRE AT PRO J E CT S D O N ? T
HBR Reprint S21061
ANTONIO NIETO-RODRIGUEZ
is the former chairman of the
Project Management Institute.
He is the author of The Harvard
Business Review Project
Man???agement Handbook (2021), from which
this article was adapted.
Harvard Business Review
November?December 2021
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This document is authorized for use only by Gourav Garg in BADM 623 – Project Management Processes taught by Daniel Kanyam, University of the Cumberlands from Jan 2022 to Jun 2022.
For the exclusive use of G. Garg, 2022.
Agility Hacks
How to create
temporary teams
that can bypass
bureaucracy and
get crucial work
done quickly
AU T H O RS
Amy C.
Edmondson
Professor,
Harvard Business
School
10
Ranjay
Gulati
Professor,
Harvard
Business School
Harvard Business Review
November?December 2021
I
N THE PA ST 20 YE ARS , the
agile approach to improving
products, services, and processes has swept the business
world. It calls for organiza?
tions to adopt small, empowered, crossfunctional teams, break initiatives or
challenges into small modules, and
develop solutions using rapid prototyping, tight customer-feedback loops, and
quick adaptation. Rooted in software
development, agile has spread to many
other functions, and some companies
have turned much of their organization,
including the C-suite, into agile teams.
Although agile can benefit the parts
of a business that must be nimble?
those that manage shifting customer
relationships, explore new markets,
and develop new products quickly and
responsively, for example?it is less
effective for operations or functions
that require consistency and efficiency
rather than agility. Consider mature,
high-volume production processes
such as those used to produce aluminum, commodity chemicals, and paper.
They can run efficiently for weeks or
months without interruption, and
tweaks can be extremely costly and
even dangerous. Other repetitive activities, including bill processing, payroll,
and budgeting, are also best run with
bur