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PM
                                                               AUGUST 2011 VOLUME 25, NUMBER 8




                         NETWORK
                         MAKING PROJECT MANAGEMENT INDISPENSABLE FOR BUSINESS RESULTS.®




> Selling the
value of a PMO
> How to increase                       IT success rate
your portfolio’s profit
                                          on the rise

  Did You
  Choose
  This
  Career?
      The phenomenon of the accidental project manager
If your team looked like this, any PPM solution would work.




        Daptiv, on the other hand, is a PPM solution designed for
        human beings. It is easily configured so that you can introduce powerful
        new PPM capabilities – when and where your organization is ready for them.

        To learn more about the PPM solution that adapts to

                                                                 Designed   for People
        your needs - and those of your team - visit daptiv.com
>>>OPENING
       SHOT
“
We have to conduct thorough [research]
on ecological and environmental fac-




                                                ”
tors, as well as on impacts on countries
in the lower reaches of the river.
—Bai Enpei, Secretary of the Communist Party of China Yunnan
Committee, in China Daily




        Nujiang
                                              T
                                                         he last free-flowing river in China   region—could withstand an earthquake or
                                                         could soon be dammed as part of       other natural disasters like those that sparked
          River,                                         an ambitious hydropower program
                                                         to boost the country’s non-fossil
                                                                                               Japan’s recent nuclear plant emergency.
                                                                                                  “Project developers should bear in mind
        Yunnan,                               fuel energy output to 15 percent by 2020.
                                                 Hydropower has no carbon emissions, a
                                                                                               that these geological conditions also pose
                                                                                               business risks to them,” said Zhang Xing-
          China                               powerful counterpoint to the highly pollut-
                                              ing coal plants in the region. Yet the plans
                                                                                               sheng, managing director of The Nature
                                                                                               Conservancy’s North Asia division, in China
                                              for a reservoir and four dams on the Nujiang     Daily.
                                              River could mean displacing up to 60,000            No dam projects in the region should be
                                              human residents as well as more than 7,000       approved without scientific appraisal, Mr.
                                              plant and animal species in the area.            Zhang told the newspaper—but he added
                                                 There are also questions of whether the       that the process is “next to nonexistent in
                                              dams—to be located in a seismically active       the current dam-building sprees.”
26%
                                                                      Average business improvement
                                                                      because of project management
                                                                      training initiatives.*




Project management
training is worth the
investment.
*Our latest research report, The State
of Project Management Training,
proves it. So how are firms achieving
these business results?

Instructor-led classroom training is by
far the most used and most effective
method of project management training.
Contact us at PM College to learn more
about developing a successful training
program for your organization.




Download your copy at      The State of Project Management Training

www.pmcollege.com/         » A PM SOLUTIONS RESEARCH REPORT




trainingresearch.
                                        Sponsored by
                                                                                                         © 2011 Professional Development Solutions, Inc.




                        FREE REPORT


pmcollege                                                              PM College provides corporate
                                                                       project management training for
pmcollege.com I 888.619.2819                                           clients around the world.
pg.   44
                                 Rapid Adaptation
                                 “We knew therebut still be somebemodificationsit
                                 during execution
                                                  would
                                                         had to able to run
                                 as a fast-track project. Traditional approaches to
                                 project management with well-defined periods
                                 for all steps couldn’t be followed strictly.
                                 —Petri Jokinen, Neste Oil, Singapore
                                                                                ”


         contents
features     aug11
28
     career track

     the accidental project manager
     Even as the profession grows, many are still thrust into it. Learning
     from peers is the way to go. by Kelley Hunsberger




34   the pmo: Something of value
     The key to securing ongoing stakeholder support for a proj-
     ect management office? Relentlessly measure progress and
     broadcast its success. by Sarah Fister Gale



44   Staying power
     A Finnish company branches out to Singapore and discovers
                                                                                                 pg.   40
     a high-level talent pool to fast-track a biodiesel refinery
     megaproject. by Manuela S. Zoninsein
                                                                                      a cloSer
                                                                                      look:
                                                                                      SiemenS,


50   BooSting the Bottom line                                                         munich,
                                                                                      germany
     Benefits realization and business cases all add up to increased profits.         Two-year
     by Sandra A. Swanson                                                             stints help an
                                                                                      engineering
                                                                                      conglomerate’s
                                                                                      thousands
56
     Special Section: education and training
                                                                                      of project
     team Spirit                                                                      management
     Although people are unpredictable, with the right training, team                 offices con-
     members will embrace collaboration. by Cindy Waxer                               stantly prove
                                                                                      measurable
                                                                                      bottom-line
                                                                                      results.
It’s Time to

Get Agile!
Collaborate. Adapt. Iterate.
Don't get left behind! Discover what all of the buzz is about in the Agile
development world. IIL offers two new courses that explore Agile approaches:

Agile Development and Project Management
                                                                                                                                  INTELLIGENCE, INTEGRITY AND INNOVATION
Learn the who, what, when and how of Agile IT projects and find out which practices
translate into a more flexible approach to managing projects. Find out how Agile                                                   Project, Program and Portfolio Management
development relates to project management and get an overview of common                                                           Microsoft® Project and Project Server
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Get serious about Agile development using the fastest growing specific methodology.                                                Leadership and Interpersonal Skills
Learn how to plan and run a sprint, how to estimate and prioritize user stories and
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To register for these classes or to view our digital catalogue please visit:
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pg.   10
                                                       Turning a Corner
                                                       “Companiesmuch moreadoptingthanprinciples of project ”
                                                       management
                                                                  today are
                                                                            readily
                                                                                    the
                                                                                        they were in the past.
                                                       —Jim H. Johnson, The Standish Group, Boston, Massachusetts, USA




aug11viewpoints
                                                                      calendar of events
                                                                       UPCOMING MAJOR
                                                                       PMI GLOBAL EVENTS

                                                                       22-25 October PMI Global Congress
                                                                       2011—North America, Dallas/Fort Worth,
                                                                       Texas, USA.

     18       From the Top
                                                                       Visit www.PMI.org for details.
              A New Prescription
              Joel Verinder, PMP, Texas Health
              Resources, Arlington, Texas, USA
                                                                       AUGUST
     20       Thinking Positive                                        8-11 SeminarsWorld, Annapolis,
              The Enthusiasm Factor
                                                                       Maryland, USA.
              by Alfonso Bucero, MSc, PMP, Contrib-
              uting Editor                                             www.PMI.org

     21       The Agile Project Manager                                15-17 PMI São Paulo Chapter International
              3 Solutions for Your Offshore Problem
                                                                       Seminar, São Paulo, Brazil.
              by Jesse Fewell, CST, PMP
                                                                       www.pmisp.org.br/11seminario
     22       Career Q&A
              Climbing the Ladder                                      25-26 4th Pernambuco Project
              by Lindsay Scott
                                                                       Management Congress, Recife,
     24       Voices on Project Management                             Pernamubuco, Brazil.
              From the Bottom Up                                       www.pmipe.org.br
              by Phil Patrick, PMP

                                                                       SEPTEMBER
also in this issue                                                     8-10 Project Management National
01   Opening Shot           66    Help Desk                            Conference 2011, Bangalore, India.
08   Feedback               68    Featured eBooks                      www.pmi.org.in/conference2011
09   In Memoriam            71    Services Directory
10   The Buzz               72    Metrics
                                                                       >> DOWNLOAD THE PM NETWORK APP
26   In This Issue
                                                                       and read the magazine on your iPad,
                                                                       iPhone or iPod Touch.
on the cover
10   IT Success Rates on the Rise
28   Did You Choose This Career?
34   Selling the Value of a PMO
50   How to Increase Your Portfolio’s Profit
pM
PMI Staff
                                   network
                                                  Contributing Editors
                                                                                          THE PROFESSIONAL MAGAZINE OF THE PROJECT MANAGEMENT INSTITUTE

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PM Network August 2011
FEEDBACK
          LETTER TO THE EDITOR                                      VOICES ON PROJECT MANAGEMENT BLOG
                                                                    Project Managers in the C-Suite
          A Swan by Any Other Name                                  Jim De Piante, PMP, writes:
The cover story in the April issue of PM Network (“Control-         For me, career growth means managing projects that are more
ling Chaos”) promised to tell us how to protect our projects        important, more valuable, more interesting or just more fun. Often,
against a flock of “black swans.” While much of the advice          this can mean bigger teams and bigger budgets, but for me, that
is useful, it has little to do with the true black swan idea.       doesn’t necessarily translate into bigger thrills. Career growth
    Events or circumstances with extremely low probability          does not mean at all that I need to become an executive to feel
and extremely high impact are in fact just risks, and they          fulfilled. I see project management and executive management as
can and should be tackled through                                   complementary, but very different, skills. To me, that means that
the normal risk process. There                                      the two fields will appeal to two very different kinds of people,
is no useful reason to give them                                    depending on individual temperament.
the special name of black swans.
Unfortunately, the risk process                                     Saira Karim, PMP, commented:
cannot address these unpredictable                                  It would be fantastic if executives had more project management
events.                                                             training, but I do believe each role needs its own set of personalities
    The black swan is a valuable                                    and skills. Project managers are doers/constructors, whereas the
concept that warns us to expect                                     executives are more of the painters and creators. Both need each
the unexpected. We should be                                        other and are complementary roles, and there should be some proj-
careful to use the term prop-                                       ect management representation in executive management.
erly and not dilute it through misuse or laziness. If we
mistakenly think that risks with very low probability and           Matt Kirchman, PMP, commented:
very high impact are black swans, then we are likely to             Project managers, through ensuring that their projects are strategi-
remain blind to the existence of truly unpredictable shocks.        cally aligned, are more tactically oriented. I think of accomplished proj-
Instead, we should use the risk process to address known            ect managers as the non-commissioned officers in the military. They
unknowns, and rely on business continuity and resilience            are the ones that help a unit (or team) accomplish a particular goal,
techniques to protect us from the attack of the black swan.         and their effectiveness is based on respect for what they can do, not
                                 —David Hillson, PMP, PMI Fellow    for their rank. I think it will continue to be rare for project managers to
                                  Petersfield, Hampshire, England   move to the upper echelon of management, and I’m OK with that.

What’s your take? Continue this discussion in the Project           PMI members can access a related research report, Project Man-
Risk Management Community of Practice.                              agers as Senior Executives: Volumes 1 and 2, at www.PMI.org/
>> Visit risk.vc.pmi.org for more information.                      Knowledge-Center/Research-Completed-Research.aspx

                                                                    >> Join the discussion at PMI.org/Voices.
           LINKEDIN
           Daniel Hill, PMP, asks: What is a project
                                                                    Which of the following social media
           manager’s most important personality trait?              vehicles do you use to support your
                                                                    profession and/or career?
NK Shrivastava, PMI-RMP, PMP, responds: Listening
                                                                        LinkedIn: 63%
and communicating is the most important personality trait
                                                                        Facebook: 12%
for a project manager. Remember what the PMBOK® Guide
says — More than 90 percent of a project manager’s time                 Twitter: 4%
goes into communication. To be a good communicator,                     Other: 2%
you need to be a good listener first.                                   All of the above: 19%
>> Join the discussion in the PMI Career Central group.             From the Voices on Project Management blog at PMI.org




           We love to hear from you! Write us an email at pmnetwork@imaginepub.com.
           >> FOLLOW US on Facebook: www.facebook.com/PMInstitute.
In MeMorIaM                                                                                    By SaNJEEv GuPTa




Eliyahu M. Goldratt, PhD
1947 – 2011

Eliyahu M. Goldratt, PhD, author of The Goal and                    In 1997, Dr. Goldratt expanded TOC in his book
creator of the theory of constraints and critical chain          Critical Chain, which provides the basis for critical
project management, passed away at his home in Israel            chain project management. Critical chain project man-
on 11 June. He was an iconoclast who also established            agement emphasizes resources rather than scheduling
new methods for managing manufactur-
ing, supply chains and projects.
    After obtaining a doctorate in phi-
losophy from Bar-Ilan University, Dr.
Goldratt left the academic world to
pursue a career in business. He joined
Creative Output in 1979, which became
the number-six company on the Inc. 500
list in 1984. Its optimized production
technology software was the precursor to
manufacturing and supply chain optimiza-
tion, which became a multibillion-dollar
industry in the late 1990s.
    Dr. Goldratt became recognized as
a business thought leader with his 1984
bestseller, The Goal, which introduced the
world to the theory of constraints (TOC).
It is among Forbes’ list of business bestsell-
ers and is required reading in almost every
master of business administration program,
though the book’s influence is best captured
in a quote from The Economist: “A survey
of the reading habits of managers found
that though they buy books by the likes of
Tom Peters for display purposes, the one management              or cost. This methodology is claimed to enable 10 to
book they have actually read from cover to cover is The          50 percent improvement in project speed. Seven of the
Goal.” Even though it was privately published, it has            eight largest U.S. military air depots reportedly have
sold more than 5 million copies in 35 languages.                 used its techniques to improve fleet availability while
    The underlying principle of TOC is that optimizing           cutting costs.
local efficiencies creates artificial constraints that prevent      One cannot overstate Dr. Goldratt’s influence on
an organization from realizing its full potential. Dr.           thousands of managers around the world, and it will
Goldratt famously proclaimed that cost accounting is the         only grow with time.
“enemy number one” of productivity. By keeping the
focus on the ultimate goal, organizations can increase their     Sanjeev Gupta is CEO of Realization, a critical chain
speed and throughput. TOC has been adopted in a wide             project management software and services provider in
array of private and public organizations worldwide.             San Jose, California, USA.




                                                                                                        august 2011 PM NETWORK   9
thebuzz


                                                                                                    submit news to pmnetwork@imaginepub.com. all monetary figures are in U.s. dollars unless otherwise noted.
                                                  Failure
                                                  rates
                                                  Finally
                                                  Drop
                                                  The reporT card for IT proj-
                                                  ects is in—and things are looking
                                                  up as companies step up their project
                                                  management maturity to better handle
                                                  scope, risk and change.
                                                      after years of abysmal failure rates,
                                                  the number of projects delivered on
                                                  time and on budget is increasing,
                                                  according to Chaos Manifesto 2011, a
                                                  new report by The Standish Group.
                                                      The survey of 10,000 projects
                                                  conducted in 2010 around the world
                                                  revealed:
                                                  n 37 percent of IT projects were suc-

                                                    cessful, coming in on time and on
                                                    budget.
                                                  n 42 percent were “challenged,” arriv-

                                                    ing over budget, late, or with less-
                                                    than-required features and functions.
                                                  n 21 percent failed completely, can-

                                                    celed prior to completion or deliv-
               IN ThEsE PaGEs                       ered but never used.
                                                      Those numbers compare favor-
               12 project Managers Like This      ably on all fronts to the 2008 survey
                                                                                                     illustration by keith negley




                                                  results, which showed that only 32
               14 Mass destruction                percent of IT projects succeeded,
               16 Building a New africa           while 44 percent were challenged and
                                                  24 percent failed.
                                                      The 2011 results represent the
                                                  highest success rate in the history of the

                                               sEE ThE laTEsT NEWs about project, program and
                                               portfolio management online at www.PMI.org/PMport.

10   PM NETWORK May 2008 WWW.PMI.ORG
>TIP
Chaos survey, which The Standish Group has been
conducting biannually since 1994. After years of
poor showings—in 2004 only 28 percent of projects
                                                                             Bridge the divide. Despite the growing
were considered a success—the recent uptick indi-
                                                         adoption of project management in IT, there remains a discon-
cates that the IT world may have turned a corner.
                                                         nect between project managers and senior management. Execu-
AheAd of the Curve                                       tive sponsors don’t always understand the strategic impact that
One of the most obvious reasons for the increase         effective project management can have at an organizational level
in successful projects is the economic recovery tak-     and don’t always see the value of critical project management
ing root in many markets, says Jim H. Johnson,           processes, says Jim Johnson, The Standish Group, Boston, Mas-
chairman of The Standish Group, Boston, Massa-           sachusetts, USA. And project managers don’t always do the best
chusetts, USA. That shift, albeit slow, means fewer
                                                         job of conveying that value. “Executive sponsors need training on
projects are being shut down or failing due to finan-
                                                         project management, and project managers need training on how to
cial constraints.
    But it’s more than that. Organizations are           communicate with executives,” he says.
approaching IT projects in a new way. “Compa-
nies today are adopting the principles of project
management much more readily than they were in           the rising success rate also stems from the types
the past,” Mr. Johnson says. Tasks such as estimat-      of projects being launched. The Standish research
ing and risk management are more thoughtfully            found fewer big organization-wide enterprise
addressed earlier on, reducing errors and improving      resource planning (ERP) system rollouts in the last
on-time delivery rates throughout the project life       two years. “We saw a lot more moderate projects,
cycle. More companies are also developing project        with companies revamping or upgrading existing
management offices (PMOs), which drive project           systems,” Mr. Johnson says. “Those projects are
management maturity.                                     smaller and easier to deliver.”
    IT project teams, in particular, tend to be ahead        And those companies that did roll out new ERP           37%
of the curve because they work in a much more            system projects in 2010 fared poorly, according             The portion
dynamic environment and need to be able to deal          to the 2011 ERP Report by Panorama Consulting               of successful
                                                                                                                     IT projects in
with problems and turn things around more quickly        Group. The survey of 185 organizations from 57
                                                                                                                     2010, coming
than in other fields, says Ricardo Viana Vargas,         countries revealed 61 percent of ERP projects in            in on time and
PMP, a past chair of the PMI Board of Directors          small and mid-sized companies took longer than              on budget
and CEO of Macrosolutions, a management con-             expected—compared to 36 percent in 2009. And
sulting firm in Belo Horizonte, Brazil.                  nearly three-quarters exceeded their budgets, up            32%
    “Because IT projects are shorter and more            from to 51 percent in 2009. On the plus side, the           The portion
time-sensitive, IT project managers are adept at         data shows an increase in the number of compa-              that was
making faster decisions and using smarter team-          nies that realized significant business benefits from       successful in
                                                                                                                     2008
work,” he says.                                          the project investments, indicating that companies
    Certain IT project management concepts, such         prioritized results over maintaining budget or              28%
as Agile, may not be a good fit for sectors outside of   schedule.                                                   The portion
IT. But Mr. Vargas says other industries can pick            Such life-cycle management is vital for projects        that was
up some tips on preventing project failure by using      to deliver bottom-line value, and is a sign of the          successful in
hallmark IT approaches such as prompt decision-          increasing complexity that project managers face in         2004
                                                                                                                     Source: The
making and straightforward communications.               managing risks on big IT projects.                          Standish Group
    “Make precise decisions quickly and be ready             “Most project managers still look at risk as a
to change directions if need be,” he says. “The one      problem to avoid, but there are types of risks that
who moves fastest to market gets a huge advantage.”      add value,” Mr. Johnson says. “You have to look at
                                                         risk and value together to increase the ROI.”
SmAll SCope, Big pAyoff                                      Otherwise, those IT project success rates may
No doubt the increasing maturity is helping, but         start to slide back. —Sarah Fister Gale




                                                                                                   august 2011 PM NETWORK   11
thebuzz
       Project Managers Like This
               FACEBOOK, TWITTER, BLOGS, WIKIS                             their teams. By far, though, the most popular use
               and other social media tools haven’t quite                  of social media was to stay in touch with friends
               reached the exalted status of Gantt charts and              and colleagues, cited by 85 percent of the respon-
               work breakdown structures in the project man-               dents. Thirty-six percent of respondents said they
               agement profession.                                         used social media to communicate with team
                   But they’re gaining ground.                             members, and 24 percent said they used it to
                   More than 75 percent of project managers                reach stakeholders. That conversation, however,
               said social media improves the way they manage              should be one with give-and-take.
               projects, according to the 2011 Social Media in a              “Social media is not just a tool to blast your
               Project Environment survey by London, England-              message, but to really understand what it is that
               based Elizabeth Harrin, author of Social Media              people want to talk about, what gets them most
               for Project Managers [PMI, 2010]. No on-the-                engaged,” says Vickie Smith-Siculiano, PMP, an
               sidelines observer, Ms. Harrin is also author of            Internet marketing and search engine optimiza-
               the blog A Girl’s Guide to Project Management,              tion specialist at Marketview Research Group,
               a founding member of the PMI New Media                      Edgewater, New Jersey, USA.
               Council and head of IT program delivery at Spire               Before project managers start tapping into
               Healthcare.                                                 social networks, she recommends defining the
                   The survey, which included 181 respon-                  most influential stakeholders so the right content
               dents from more than 30 countries, found that               reaches the right channels.
               LinkedIn ranked as the most popular tool for
               business use among project professionals. That              SOCIAL BOUNDARIES
               was followed by instant messaging, blogs, Twit-             Simply declaring that social media has hit critical
               ter and wikis.                                              mass doesn’t begin to capture its true reach.
                   “Wikis have a very low barrier to entry in that             More than 500 million people actively use
               they are very easy to set up. Wikis are also easy           Facebook, logging more than 700 billion minutes
               to use, and they are excellent for capturing les-           per month on the website. Twitter sees an average
               sons learned and project information,” says Ms.             of 140 million messages sent out per day, adding
               Harrin. “At the end of the project, a wiki can              up to 1 billion tweets per week. More than 100
               be passed on to the operational team as a great             million people use LinkedIn to network with col-
               source of organizational knowledge.”                        leagues past and present. And more than 80,000
                   Podcasts and video podcasts (vodcasts) were             companies—up from 10,000 just a year ago—use
               among the least-used tools, according to the sur-           the corporate social network Chatter.
               vey. But Ms. Harrin sees a missed opportunity for               With that kind of adoption, it’s hard for any
               project management office professionals looking             organization to resist social media’s pull. Yet
               for training and education tools.                           extolling the wonders of social media and actu-
                   Nearly half of all respondents employed social          ally implementing these tools to benefit a project
               media tools for document sharing, while 27 per-             team are two entirely different things.
               cent used them for project status updates, and a                Many organizations jump into the fray with
               quarter said they actively used them for managing           no clear strategy, which can be detrimental in

               How Project Managers Use Social Media
                                                                           project status updates    managing teams
                 stay in touch with friends and colleagues
                                                                    communicate with team members         communicate with
                                             document sharing                                             stakeholders


                85%                                           48%            36%             27%         25%        24%
              SOURCE: Social Media in a Project Environment




12   PM NETWORK AUGUST 2011 WWW.PMI.ORG
thebuzz

Most popular social networking tools                    Mr. Wyatt suggested establishing clear
                                                     policies tailored to each network. For example,

      linkedin                                       project managers and their teams need to know
                                                     when it is—and isn’t—appropriate to share pho-
                                                     tos of a project on Flickr or discuss its progress
                                                     on Twitter.
         instant Messaging
                                                     The New SocialiTeS
                                                     One of the most common concerns with adopt-
                          wikis                      ing social media comes from senior managers and
                                                     project team members fretting it will mean more
Least popular                                        work. “The best way to tackle this is to do what
                                                     you can to manage stakeholder expectations,” Ms.
  Podcasts                                           Harrin says. “Try to find out what people believe
                                                     about social media and address any myths.”
                             Video Podcasts              From there, she suggests starting small. “Intro-
                                                     duce new functionality slowly and take the time
Source: Social Media in a Project Environment        to train people properly,” Ms. Harrin says. “Con-
                                                     sider how, if at all, you are going to track the
the long run. “Just because the whole team is        benefit of your social media implementation.”
on Facebook and Foursquare doesn’t mean that             Having a social media champion on the team
they will know how to get the best out of these      can help, too. This person can show the way by
tools in the workplace,” says Ms. Harrin. “What      demonstrating the tools to their full capac-
is appropriate for personal use is not necessar-     ity and coaching other team members on
ily appropriate for work. We need to get this bit    the do’s and don’ts of social behavior. “I
right to see the growth in the use of social media   would like to hope that usage will be self-
tools on projects.”                                  regulating, with team members managing
    That means setting standards—which most          their own interactions,” she says. “However,
companies have failed to do thus far. Almost 39      if that doesn’t work, an alternative is for the      Twitter sees
percent of 1,038 U.K. employees said their orga-     champion to step in to ensure that guide-            an average of
nization had no social media policy, according to    lines and policies are adhered to.”
the 2011 Social Media Survey, a new report com-          Security also needs to be addressed from         140 million
missioned by consulting group Protiviti. Twenty-     the start. Organizations must treat social           messages
four percent said they were simply unaware of        media as they would any other business               sent out per
whether there was a policy or not.                   tool—with the proper access controls and
    “It’s extremely worrying that only a quarter     protocols in place. It helps to have a frank
                                                                                                          day, adding
of workers have been provided with any real          discussion with the IT department about              up to 1 billion
guidance regarding the use of social media sites,”   what your team is trying to achieve by using         tweets per
Jonathan Wyatt, Protiviti managing director, said    social media, Ms. Harrin says.                       week.
in a press release.                                      People of all ages rely on social media,
    “Many senior managers assume that their          of course. Yet as younger people weaned on
less-experienced colleagues would not post inap-     Facebook and Twitter make their mark in
propriate comments online and that they would        the workplace, many of the barriers slowing down
think about the risks involved, but time and time    social media’s full integration will be broken
again they are proven wrong,” he added. “We’re       down. It will be “a gradual shift,” however, Ms.
seeing a growing number of cases where firms         Harrin predicts. “And until we have confidence
have vague or out-of-date social media policies      and policies supporting the use of these tools
that are unenforceable if inappropriate activity     from the IT departments, we won’t see wide-scale
takes place.”                                        adoption.” —Kelley Hunsberger



                                                                                            august 2011 PM NETWORK   13
thebuzz
         Mass destruction
                 The race to build chemical weapons once
                 drove countries apart. But projects to destroy
                 the leftover stockpiles are now bringing gov-
                 ernments together as they share knowledge
                 across the global community.
                     Political leaders around the world agreed
                 to ban chemical weapons from the battle-
                 field in 1997. Under the chemical Weapons
                 convention (cWc), no new chemical weap-
                 ons would be created, and all existing stores
                 would be destroyed by 2012. angola, North
                 Korea, egypt, Somalia and Syria were the
                 only holdouts.
                     In the 14 years since, teams worked to
                 develop project plans, facilities, tools and tech-
                 nologies to safely eliminate the deadly agents.
                     They’ve made impressive progress: as of           the pueblo Chemical agent-destruction pilot plant, pueblo, Colorado, usa
                 May, more than 65 percent of the 71,000
                 tonnes of declared existing chemical weapons
                 had been destroyed, according to the Organisa-               In the United States, progress has slowed in
                 tion for the Prohibition of chemical Weapons              part due to the strict regulatory environment.
                 (OPcW), the independent organization that                 although the country is currently constructing
                 oversees the convention. albania, South Korea             two facilities to destroy its remaining supply,
                 and India have already completed destruction              those projects aren’t anticipated to be com-
                 of their chemical weapons. The russian Federa-            plete, with the plants decommissioned, until
                 tion has destroyed more than half of its stock-           possibly 2021.
                 pile (20,000 tonnes), and the United States has              Neither country is being punished for miss-
                 destroyed more than 84 percent of its supply              ing the deadline because of the sheer complex-
                 (23,406 tonnes).                                          ity involved in delivering the projects. “The
                     But there’s still a long way to go.                   reason why the United States and russia
                                                                           couldn’t ... make it by april 2012 is not bad
                 Missed deadlines                                          will,” Sergey Batsanov, director of the Geneva
                Neither russia nor the United States—which                 office for the Pugwash conferences on Science
                together possessed 90 percent of the world’s               and World affairs, told Global Security News-
                                                                                                                                                  Images Courtesy of assembled ChemICal Weapons alternatIves
                                       stockpile of chemical weap-         wire in april. “Simply, the process turned out
                                       ons at one time—will meet           to be much more complicated, much more
                                       the 2012 deadline.                  resource-intensive.”
As of May, more than
                                           For russia, money has              That teams are dealing with highly sensi-
65 percent                             been the biggest obstacle.          tive materials has to be foremost in every deci-
of the                                 “The implementation of the          sion, says Douglas Omichinski, engineering
71,000 tonnes                          [chemical weapons destruc-
                                       tion] program has been
                                                                           giant Bechtel’s project manager for the design,
                                                                           construction, systemization, operation and
of declared existing chemical
                                       hampered by the global              closure of the Pueblo, colorado, USa-based
weapons had been destroyed
                                       financial crisis, which threw       Pueblo chemical agent-Destruction Pilot Plant
                                       it back two to three years,”        (PcaPP). With construction of the plant more
                                       Konstantin Kosachev, chair-         than 77 percent complete as of July, destruction
                man of the foreign affairs committee in the State          of chemical weapons stored at the U.S. army
                Duma, told russian news agency rIa Novosti in              Pueblo chemical Depot is slated to begin in
                June. The country now predicts a 2015 close.               early 2015.



14     PM NETWORK august 2011 WWW.PMI.ORG
thebuzz

    It’s one of the last two remaining U.S. proj-               weapons destruction programs. “The United
ects, but the team knows it can’t be rushed.                    States began with a much larger stockpile than
    “With projects like these, safety, quality and              most other countries, but we’ve been successful in
environmental compliance come well ahead of                     attaining nearly all international treaty milestone
budget and schedule,” Mr. Omichinski says.                      dates,” Mr. Levi says.
    As part of the CWC guidelines, OPCW has                         “We have benefited from a work force with
treaty personnel at the Pueblo plant monitoring                 a great deal of chemical weapon demilitarization
compliance. Tracking by various international,                  experience, historical knowledge and practical les-
federal, state and county regulators, coupled                   sons learned on our team,” says Mr. Levi.
with the strict regulations associated with the                     Along with delivering their own projects,
construction and operations of a hazardous waste-               Bechtel and the U.S. government have worked
treatment facility, means every aspect of the                   closely with project teams in other nations, pro-
project is carefully scrutinized. “From a project               viding technologies, processes and funding.
management perspective, it adds a lot of time to                    The U.S. government, for example, is participat-
the overall process as compared to commercial                   ing in a technology transfer with Russian teams over-
construction,” Mr. Omichinski says.                             seeing projects to destroy chemical weapons facilities,
    Adding to the challenge is the vast array of                according to U.S. Army Corps of Engineers.
stakeholders involved in these projects, says Wal-                  Even after all the weapons are wiped out,
ton Levi, the U.S. government’s
acting site project manager. Gov-
ernment officials, local community
members, environmental activists,
and the international community
are all closely watching project
progress, requiring transparency and
regular feedback. “The best lesson
we’ve learned is the importance of
communication,” Mr. Levi says.
    To keep the public informed,
the Pueblo team sends its mes-
sage through a variety of channels.
Along with hosting monthly project
update meetings with community
stakeholders, it produces videos
explaining how the technology
works and shares that information
via YouTube, social networking
sites, newsletters and other media
outlets. “We want to be sure they
understand why we choose the               at the pueblo plant, one of three distillate carbon filters is being staged on site to await
                                           permanent placement.
equipment or processes we do and
to show them that we have the
documentation to support our decisions,” Mr.                    many team members will be able to tap into their
Omichinski says.                                                experience and move into other complex projects
                                                                at nuclear facility construction and utility com-
Crossing Borders                                                panies, says Mr. Omichinski. “When you work
Even with all the scrutiny, the experience gained               in such a highly regulated procedure-driven envi-
at Pueblo and other sites has helped the United                 ronment, there are a lot of places you can go.”
States safely ramp up its position in international             —Sarah Fister Gale



                                                                                                                         august 2011 PM NETWORK   15
thebuzz
       Building a new africa
                AfricA’s
                woefully
                inAdequAte
                infrastructure con-
                tinues to hinder the
                continent’s great eco-
                nomic promise. And
                it’s clear the sub-
                saharan nations can’t
                do it on their own—
                paving the way for
                new alliances with
                the private sector.
                    looking to
                improve the dire
                traffic jams in its
                commerce capital of
                lagos, nigeria joined
                forces with local
                African development gautrain rapid rail Link, south africa
                Bank. the resulting
                $400 million project to rehabilitate and widen               Bringing in ExpErtisE—and MonEy
                the city’s expressway marks the country’s first              PPPs create new avenues for financing while
                public-private partnership (PPP).                            providing governments with much-needed
                    And in south Africa, which has implemented               project management knowledge. the influx of
                many successful PPPs over the past decade, the               private-sector money and expertise drives more
                Gauteng provincial government teamed up with                 cost-efficient projects, reduces risks and fosters
                Bombela, a canadian-french consortium, for an                best practices while developing the skill sets of
                80-kilometer (50-mile) rapid-rail link to connect            the local population.
                Johannesburg, Pretoria and Johannesburg’s or                     that added project management capability
                tambo international Airport. the nearly $4 billion           is particularly valuable on large cross-border
                project, which began construction in 2006, was               projects that face increased structural and reg-
                slated to debut in July.                                     ulatory complexities, says Adama deen, head
                    the simple truth is that without adequate                of infrastructure programs and projects at the
                roads, telecommunications lines and other pri-               Johannesburg, south Africa-based new Part-
                mary infrastructure, the sub-saharan region                  nership for Africa’s development’s Planning
                can’t build its industrial base and lure future              and coordinating Agency.
                investors.                                                       “PPPs give these countries the capacity they
                    yet most African nations lack the financial              need to manage and implement cross-border
                resources and expertise to close this yawning                infrastructure projects,” he says. “it is the way
                gap. even after spending nearly 12 percent of                forward for Africa.”
                its collective GdP on infrastructure, the conti-                 the Kenyan government, for example, is
                                                                                                                                   Image Courtesy of BomBardIer




                nent requires nearly $93.3 billion more to meet              looking to finance as much as 80 percent of its
                current needs, sanusi lamido sanusi, governor                infrastructure projects through PPPs by 2030.
                of the central Bank of nigeria, reported at                      nigeria estimates it will need between $12 bil-
                the west Africa Global trade and investment                  lion to $15 billion annually for the next six years
                forum in June.                                               to meet its infrastructure demands. to reach
                    enter the private sector—always on the prowl             those numbers, the urban development Bank
                to stake a claim in new markets.                             of nigeria plc (udBn) and the development



16   PM NETWORK august 2011 WWW.PMI.ORG
thebuzz

Bank of Southern Africa signed an agreement         more complex struc-
in March with “the express goal of improv-          tures, often impact-
ing the capacities of both public and private       ing negatively on
sectors to deliver infrastructure,” said UDBN       implementation,”
managing director Adekunle AbdulRazaq               according to a             >> after spending nearly
Oyinloye in a press release. They will share        report from the            12 percent of its collective
ideas and technical expertise for infrastructure    online busi-
                                                                               gdP on infrastructure, africa
development, including guidance for project         ness publication
structuring, financing options, funds mobili-       How We Made                                      requires
zation, bid management, and evaluation and          It in Africa. “A fair                             nearly $93.3
negotiations.                                       amount of education                                billion more
                                                    and communication in both the                       to meet
OvercOming rOadblOcks                               public and private sector must be
                                                                                                         current
Although PPPs bring the promise of much-            encouraged.”
needed development and investment in Africa,            For the PPP project model to                      needs
they also add complexities—and complica-            flourish in the long term, govern-
tions.                                              ments need their own project man-
    To begin with, Africa’s public sector leaders   agement experts to help guide the
must define the optimal amount of private-          process. That will ensure they under-
sector participation in any project, André Pot-     stand their responsibilities and risks as
tas, infrastructure advisory leader for Africa at   they move forward on projects that can take
Deloitte, wrote in an article for Independent       years or even decades to
Online, a South African news outlet. One of         bring to financial close.
the biggest challenges facing project leaders is        Project plans also
deciding which partner takes on the respon-         need to account for infra-
                                                                                             Fog City Consulting
sibilities and associated risks of each project     structure operation once
phase, including design, finance, construction,     construction is complete,
operation and maintenance.                          said George Mahlalela,                   www.fogcityconsulting.com
    “The shape of that risk allocation deter-       director-general of the
mines the structure of the partnership and          Department of Transport                  Online PMP® Exam
the costs,” he wrote. “Agreeing [on] this risk-     for South Africa, in a                           Preparation
sharing allocation has often been a stumbling       June interview with Mon-                     Weekend, Weeknight
block.”                                             eyweb.                                                       &
    Governments also struggle to bring funda-           “Our interest is not                        5 Day Boot Camps
mental project planning and execution capabil-      only just getting foreign         We will provide you all the knowledge and
                                                                                      tools needed to take the next step in your
ities to a point at which the private sector has    investors to come into            career. Don't let this opportunity pass you
the confidence to invest, says Mr. Deen.            South Africa. We see the          by, register today for one of our upcoming
    “Many projects are not ready for PPPs           creation of jobs in local         experienced instructor led courses.
because they have not achieved bankability,”        industries as important,”
he says. “The risks are elevated for the private    he said. “Part of what
                                                                                                    Online PDUs
sector when a country can’t provide security        we’re going to be talk-
guarantees.”                                        ing about is how do
    Assuming teams can get a project off the        they transfer skills and
ground, a lack of local project management          transfer technology into
and technical expertise can still hinder their      South Africa so that for
progress—or force private companies to bring        future development …                             Enroll Today!
in talent to take on leadership roles.              we have that kind of                www.fogcityconsulting.com
                                                                                                  info@fogcityconsulting.com
    “The result is often a vehicle which is top-    capacity here.”
                                                                                       PMP and the PMI Registered Education Provider logo
heavy with international advisers and perhaps       —Sarah Fister Gale                 are registered marks of Project Management Institute, Inc.




                                                                                                     august 2011 PM NETWORK
                                                                                    12619_FOG CITY CONSULTING.indd 1              17      7/7/11 10:14:5
fromthetop                                                                 Joel Verinder, PMP, Texas Health Resources,
                                                                           Arlington, Texas, USA




                                                 A New Prescription
                                                  SOME PROjEcTS just                 refinement of a strategic IT council. The council
                                                  shouldn’t make the cut, espe-      includes an executive representative from each hos-
                                                  cially in an industry facing       pital, along with several physicians, and a few other
                                                  severe financial restraints. But   IT representatives to provide technical direction
                                                  at Texas Health Resources,         and answer questions.
                                                  every project requested of             Now, the council considers every project pro-
                                                  the IT department was              posal and ranks it against the current portfolio and
                                                  approved—until joel Verinder,      existing resource constraints. The PMO also pres-
                                                  PMP, stepped in as portfolio       ents monthly data to the council about resource
                                                  management office director.        availability. Before a project is approved, business
                                Leveraging experience gained across sectors rang-    owners must bring their case to the council and
                            ing from airlines to telecom, he has transformed the     be able to define the anticipated ROI, whether it’s
                            existing portfolio management office (PMO) into          financial, regulatory or patient safety. Every busi-
                            a business-driven one aimed squarely at helping          ness case is expected to have metrics to define suc-
 >> As the PMO,             ensure each of the not-for-profit’s 14 hospitals ben-    cess. And six to nine months after implementation,
       we provide           efits from the organization’s limited IT resources.      business owners must report back on the results to
                                                                                     the council.
transparent data            How has the organization’s approach to portfolio
 to the executive           management changed?                                      What kinds of results have you seen?
                            The PMO’s initial charter focused on people,             Today, we support 85 projects, and overall IT
    decision mak-           process and tools, but the executive leadership          morale has improved. But it took some time. In
  ers. This infor-          wanted increased adoption and business value.            the first couple of council sessions, it was a struggle
                            When I came in, I swung it around to focus on            to prioritize projects. Eventually, with all the talk
 mation validates           business needs first, and figure out how project         about healthcare reform and new reimbursement
that the portfolio          management processes and templates can help              models, people started to understand the resource
                            solve problems. We got some quick wins early             constraints we face.
   is aligned with          on, which helped us gain momentum. Eventually                We’re taking a more holistic systems approach,
     the strategic          we evolved to focus on resource planning and             with the goal of meeting the needs of all the hospi-
                            prioritization.                                          tals in the network. And because business owners
  direction of the                                                                   are now presenting project results to the council,
     organization,          Why did the PMO focus on resource planning?              it gave visibility to some of the small projects that
                            Texas Health supports 14 hospitals with a central-       have delivered tremendous ROI.
   while enabling           ized PMO and a single IT group with 575 people.
  leaders to truly          There’s always a big need for our services, and we       What lessons have you learned that might benefit
                            were often overwhelmed with requests. The IT             other PMO leaders?
      run IT like a         team members had developed a “just get it done”          The most important aspect of project management
         business.          mentality, and they didn’t feel like they had a          revolves around change management and how you
                            voice. It caused us to start asking questions about      communicate that change to your stakeholders and
                            whether we were working on the right projects and        project teams. If you can’t translate your vision to
                            whether we could do a better job.                        the organization, that’s a risk. And if the business
                               We worked with the IT governance team to              owners don’t see value in what you are doing, you
                            create a prioritization model, which included the        won’t exist for long.



    18    PM NETWORK August 2011 WWW.PMI.ORG
PM Network August 2011
viewpoinTs
                     The enThusiasm
ThINKING POsITIvE




                     FacTor
                         You can go from apathy to eagerness with the right motivation.
                         by AlfONsO bucERO, Msc, PMP, cONTRIbuTING EdITOR




                         W
                                       hen I looked for ways to motivate myself
                                       early in my career, I saw every project not
                                       only as a learning opportunity but also an
                                       opportunity to make people happier. And
                         the key to doing that was fostering enthusiasm.
                            As a project manager, there’s a way to develop
                         enthusiasm so meaningful and profound that it will
                         not decline no matter what strain it is put under:
                         1. Decide what particular personal characteristic you
                            want to strengthen.
                         2. Develop it by acting as if you already possess the
                            desired characteristic.
                         3. Believe and repeatedly affirm that you’re in the
                            process of creating the quality you’re working to
                            develop.
                            If you want to be a more enthusiastic, for example,
                         you must act with enthusiasm!
                            Another practice to foster an optimistic attitude is
                                                                                     As a project manager, there’s a
                         that of “mental ventilation.” Clear your mind of the        way to develop enthusiasm so
                         gloomy, foreboding thoughts that prevent the cheerful
                         and spirited thinking that stimulates enthusiasm.           meaningful and profound that it
                         Getting up on the Right Side of the Bed                     will not decline no matter what
                         A vital element in developing enthusiasm as a project
                         manager is the manner in which you start the day.
                                                                                     strain it is put under.
                         Approaching each morning with enthusiasm can set
                         the tone for the entire day—despite any disappointing       vators. I’m always looking for new projects and initia-
                         news you may face.                                          tives that help me feel alive and happy. Develop your
                            I always read some positive sentences after having       enthusiasm and apply your passion to managing the
                         my breakfast. Regardless of how busy my day is going        people involved in your projects.
                         to be, for those few minutes, I don’t permit any hurry         Start the day focused on your blessings, and you will
                         or haste, even in thought.                                  react to your issues with a more positive approach—
                            As you progress in your career, many things conspire     and your enthusiasm will never die. PM
                         to dull your enthusiasm: disappointments, project fail-
                         ures, frustrated hopes, unmet ambitions and the inevi-      Alfonso Bucero, MSc, PMP, is an inde-
                         table energy drain. But such deterioration of your life     pendent consultant who manages projects
                         force happens only if you allow it. If you make a real      throughout Europe and Asia. He is the
                         effort, you can remain an enthusiastic project manager.     author of Today Is a Good Day!: Atti-
                            To maintain enthusiasm, you must find your moti-         tudes for Achieving Project Success.



                    20   PM NETWORK august 2011 WWW.PMI.ORG
viewPoints
3 solutions




                                                                                                                                         ThE agilE PROJECT MaNagER
for Your offshore Problem
As distributed projects become the norm, Agile methods can help them run smoothly.
by JEssE FEWEll, CsT, PMP




t
           he honeymoon is over. Looking to deliver more
           while spending less, just about every large com-
                                                                  More project managers are
           pany has engaged in distributed offshore proj-         suffering from quality issues, lan-
           ects over the last several years. But organizations
are discovering that outsourcing carries more pain than           guage gaps and woefully unmet
was promised. More project managers are suffering from
quality issues, language gaps and woefully unmet expecta-         expectations. so what can we do?
tions. So what can we do? Here are some ways that Agile
can help you overcome some of the side effects of running         reveal problems and opportunities earlier in the game. If
offshore projects:                                                it reveals a slew of defects, the sponsor can reprioritize
                                                                  debugging over adding new features. If an incremental
1. Stop emailing and start collaborating.                         deliverable is built to off-target specs, the sponsor still has
Agile project management places a strong emphasis on              the opportunity to swap some of the pending features for
collaborative colocated communication. Using written              the needed refinements.
English can sometimes mitigate language issues, but email
takes too long, and large documents can be stale the              3. Waste some money.
moment they’re sent. Instead, we need to augment project          The most successful teams build an additional 1 to 2 per-
communications with modern online collaboration tools             cent into their budgets for micro investments that yield
such as Google Docs, instant messaging, discussion boards         high strategic value. One example would be sponsoring
and Skype. Some teams have always-on webcams so each              some advanced technical training for team leads at the
side can see what’s happening on the other.                       offshore site. Even if you have to use your own budget,
   You can’t have successful projects without some kind of        investing in better engineering practices can dramatically
interaction. If time zones make that inconvenient, share          reduce the quality risk on your deliverables. Many execu-
the pain, with each worksite taking a turn after-hours.           tives may yell at you for spending “unnecessary funds”—
In short, work hard to communicate in real time. You’ll           but US$10,000 out of a US$1 million budget is a small
develop stronger collaboration, which will yield greater          price to pay for project success.
understanding and more innovative results.
                                                                  Projects are hard enough as it is without adding the extra
2. Get bad news early.                                            pain of coordinating teams across cultures, countries and
A mentor once told me, “Never surprise your boss.” Simi-          continents. But as global projects become more the rule
larly, a good project manager wants bad news as early as pos-     than the exception, the modern project manager needs
sible. One of the greatest pain points for distributed projects   to be vigilant in improving communication, quality and
is unmet expectations. Sponsors can spend significant time        satisfaction. Agile can help achieve that. PM
and money generating rigorous requirements, wait a year
to see any output and then receive a single large deliverable     Jesse Fewell, CST, PMP, is the managing
that simply misses the mark. If iterative-incremental deliv-      director for offshore Agile projects at Ripple-
ery is a good risk-management practice for local projects,        Rock India and founder of the PMI Agile
then it’s absolutely vital for distributed projects.              Community of Practice. He can be reached
    A monthly demo using a virtual meeting platform can           at jesse.fewell@vcleader.pmi.org.



                                                                                                           august 2011 PM NETWORK   21
viewpoints
                Climbing the ladd
career Q & a




                    To get ahead, build your business acumen and leverage your
                    social media connections.
                    by Lindsay scott




                q   I’ve been a Project Management Professional (PMP®)             Find people in the business willing to mentor you in
                                                                                 n

                    certification holder for a number of years. However, I         their area of expertise.
                    want to ensure my career-development plans include              A show of commitment to self-development may also
                    additional business skills useful in a senior role. What     create wider opportunities for you as you come into con-
                    should I be focusing on?                                     tact with members of the business team. Your visibility




                A
                                                                                 will almost certainly be raised, and that may put you in




                                                                                 q
                    Your current experience, skills and certification in proj-   a better position to practice your enhanced knowledge.
                    ect management have provided a solid foundation for
                    your career so far. To take it to the next level, you need   I recently signed up on LinkedIn to reconnect with people,
                    to consider the wider business environment in which          but how else can it help me in my career development?




                                                                                                     A
                    you operate.
                       Business management, com-                                                         With Facebook seen as a personal
                    mercial awareness, financial                                                         channel, LinkedIn is widely rec-
                    management, organizational                                                           ognized as the leading profes-
                    strategy and business change are                                                     sional social networking tool.
                    just some of the business areas                                                      Used proactively, three areas are
                    that directly relate to project                                                      particularly valuable:
                    managers. Widening the focus                                                             1. Networking: Keep in touch
                    to include organizational and                                                        with those with whom you already
                    human resources management,                                                          have a working relationship—
                    marketing, operations, and                                                           current and past team members,
                    leadership will give you a well-                                                     peers, managers and vendors.
                    rounded skill set. That, in turn,                                                    These are the people who may
                    boosts your chances for moving                                                       someday be able to provide you
                    up the career ladder.                                                                with new career opportunities.
                       All this may sound like the                                                           Be sure to also use LinkedIn to
                    blueprint for a master’s degree                                                      follow up with the project man-
                    in business administration,                                                          agers you encounter at meetings,
                    but your development doesn’t                                                         conferences and seminars—espe-
                    have to take such a formal (and                                                      cially if you’re looking for a win-
                    expensive) route. The key to                                                         dow into project management
                    building additional business                                                         careers in sectors and industries
                    skills is choosing the learning                                                      other than your own.
                    that best suits you and your                                                             It’s worth noting that 80
                    industry. Here are some ways to                                                      percent of career opportunities
                    get started:                                                                         don’t come through career or
                    n Engage    your manager and                                                         corporate sites, but rather from
                      explain your objectives.                                                           personal recommendations and
                    n Identify target areas in which                                                     referrals. Make those connec-
                      you’re looking to increase your                                                    tions work for you by staying
                      knowledge.                                                                         visible and proactive.



               22    PM netWorK August 2011 WWW.PMi.orG
PM Network August 2011
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PM Network August 2011

  • 1. PM AUGUST 2011 VOLUME 25, NUMBER 8 NETWORK MAKING PROJECT MANAGEMENT INDISPENSABLE FOR BUSINESS RESULTS.® > Selling the value of a PMO > How to increase IT success rate your portfolio’s profit on the rise Did You Choose This Career? The phenomenon of the accidental project manager
  • 2. If your team looked like this, any PPM solution would work. Daptiv, on the other hand, is a PPM solution designed for human beings. It is easily configured so that you can introduce powerful new PPM capabilities – when and where your organization is ready for them. To learn more about the PPM solution that adapts to Designed for People your needs - and those of your team - visit daptiv.com
  • 3. >>>OPENING SHOT “ We have to conduct thorough [research] on ecological and environmental fac- ” tors, as well as on impacts on countries in the lower reaches of the river. —Bai Enpei, Secretary of the Communist Party of China Yunnan Committee, in China Daily Nujiang T he last free-flowing river in China region—could withstand an earthquake or could soon be dammed as part of other natural disasters like those that sparked River, an ambitious hydropower program to boost the country’s non-fossil Japan’s recent nuclear plant emergency. “Project developers should bear in mind Yunnan, fuel energy output to 15 percent by 2020. Hydropower has no carbon emissions, a that these geological conditions also pose business risks to them,” said Zhang Xing- China powerful counterpoint to the highly pollut- ing coal plants in the region. Yet the plans sheng, managing director of The Nature Conservancy’s North Asia division, in China for a reservoir and four dams on the Nujiang Daily. River could mean displacing up to 60,000 No dam projects in the region should be human residents as well as more than 7,000 approved without scientific appraisal, Mr. plant and animal species in the area. Zhang told the newspaper—but he added There are also questions of whether the that the process is “next to nonexistent in dams—to be located in a seismically active the current dam-building sprees.”
  • 4. 26% Average business improvement because of project management training initiatives.* Project management training is worth the investment. *Our latest research report, The State of Project Management Training, proves it. So how are firms achieving these business results? Instructor-led classroom training is by far the most used and most effective method of project management training. Contact us at PM College to learn more about developing a successful training program for your organization. Download your copy at The State of Project Management Training www.pmcollege.com/ » A PM SOLUTIONS RESEARCH REPORT trainingresearch. Sponsored by © 2011 Professional Development Solutions, Inc. FREE REPORT pmcollege PM College provides corporate project management training for pmcollege.com I 888.619.2819 clients around the world.
  • 5. pg. 44 Rapid Adaptation “We knew therebut still be somebemodificationsit during execution would had to able to run as a fast-track project. Traditional approaches to project management with well-defined periods for all steps couldn’t be followed strictly. —Petri Jokinen, Neste Oil, Singapore ” contents features aug11 28 career track the accidental project manager Even as the profession grows, many are still thrust into it. Learning from peers is the way to go. by Kelley Hunsberger 34 the pmo: Something of value The key to securing ongoing stakeholder support for a proj- ect management office? Relentlessly measure progress and broadcast its success. by Sarah Fister Gale 44 Staying power A Finnish company branches out to Singapore and discovers pg. 40 a high-level talent pool to fast-track a biodiesel refinery megaproject. by Manuela S. Zoninsein a cloSer look: SiemenS, 50 BooSting the Bottom line munich, germany Benefits realization and business cases all add up to increased profits. Two-year by Sandra A. Swanson stints help an engineering conglomerate’s thousands 56 Special Section: education and training of project team Spirit management Although people are unpredictable, with the right training, team offices con- members will embrace collaboration. by Cindy Waxer stantly prove measurable bottom-line results.
  • 6. It’s Time to Get Agile! Collaborate. Adapt. Iterate. Don't get left behind! Discover what all of the buzz is about in the Agile development world. IIL offers two new courses that explore Agile approaches: Agile Development and Project Management INTELLIGENCE, INTEGRITY AND INNOVATION Learn the who, what, when and how of Agile IT projects and find out which practices translate into a more flexible approach to managing projects. Find out how Agile Project, Program and Portfolio Management development relates to project management and get an overview of common Microsoft® Project and Project Server Lean Six Sigma practices across a range of Agile methodologies. Business Analysis PRINCE2® Implementing Scrum for Agile Software Development ITIL® Get serious about Agile development using the fastest growing specific methodology. Leadership and Interpersonal Skills Learn how to plan and run a sprint, how to estimate and prioritize user stories and Training, Consulting, Coaching and Mentoring how to introduce Scrum to your organization. Customized Course Development Assessments To register for these classes or to view our digital catalogue please visit: www.iil.com. IIL Companies All Over the World Bangalore · Beijing · Budapest · Dubai · Frankfurt · Helsinki · Hong Kong · London · Madrid · Mexico City · New York · Paris · São Paulo · Seoul · Singapore · Sydney · Tokyo · Toronto International Institute for Learning, Inc. 110 East 59th Street, New York, NY 10022-1380 USA Phone: +1-800-325-1533 or +1-212-758-0177
  • 7. pg. 10 Turning a Corner “Companiesmuch moreadoptingthanprinciples of project ” management today are readily the they were in the past. —Jim H. Johnson, The Standish Group, Boston, Massachusetts, USA aug11viewpoints calendar of events UPCOMING MAJOR PMI GLOBAL EVENTS 22-25 October PMI Global Congress 2011—North America, Dallas/Fort Worth, Texas, USA. 18 From the Top Visit www.PMI.org for details. A New Prescription Joel Verinder, PMP, Texas Health Resources, Arlington, Texas, USA AUGUST 20 Thinking Positive 8-11 SeminarsWorld, Annapolis, The Enthusiasm Factor Maryland, USA. by Alfonso Bucero, MSc, PMP, Contrib- uting Editor www.PMI.org 21 The Agile Project Manager 15-17 PMI São Paulo Chapter International 3 Solutions for Your Offshore Problem Seminar, São Paulo, Brazil. by Jesse Fewell, CST, PMP www.pmisp.org.br/11seminario 22 Career Q&A Climbing the Ladder 25-26 4th Pernambuco Project by Lindsay Scott Management Congress, Recife, 24 Voices on Project Management Pernamubuco, Brazil. From the Bottom Up www.pmipe.org.br by Phil Patrick, PMP SEPTEMBER also in this issue 8-10 Project Management National 01 Opening Shot 66 Help Desk Conference 2011, Bangalore, India. 08 Feedback 68 Featured eBooks www.pmi.org.in/conference2011 09 In Memoriam 71 Services Directory 10 The Buzz 72 Metrics >> DOWNLOAD THE PM NETWORK APP 26 In This Issue and read the magazine on your iPad, iPhone or iPod Touch. on the cover 10 IT Success Rates on the Rise 28 Did You Choose This Career? 34 Selling the Value of a PMO 50 How to Increase Your Portfolio’s Profit
  • 8. pM PMI Staff network Contributing Editors THE PROFESSIONAL MAGAZINE OF THE PROJECT MANAGEMENT INSTITUTE Publication & MeMbershiP PM Network (ISSN 1040-8754) is published monthly by the Project Management Institute. PM Network is printed in the USA by Quad Graphics, Sussex, Wisconsin. Periodical postage paid at Newtown Square, PA 19073-3299 and at additional mailing offices. Canadian agreement #40030957. Postmaster: Send address changes to PM Network, 14 Campus Boulevard, New- town Square, PA 19073-3299 USA. Phone +1 610 356 4600, fax +1 610 482 9971. Vice President, Brand Management The mission of PM Network is to facilitate the exchange of information among professionals in Lesley Bakker; lesley.bakker@pmi.org Bud Baker, PhD, Wright State University the field of project and program management, provide them with practical tools and techniques, Alfonso Bucero, PMP, Bucero PM Consulting and serve as a forum for discussion of emerging trends and issues. All articles in PM Network are Publisher the views of the authors and are not necessarily those of PMI. Donn Greenberg; donn.greenberg@pmi.org Sheilina Somani, PMP, Positively Subscription rate for members is US$42/year and is included in the annual dues. PMI is Project Management a nonprofit professional organization dedicated to advancing the state of the art of project Editor in Chief management. Membership in PMI is open to all at an annual dues of US$119. For information Dan Goldfischer; dan.goldfischer@pmi.org Roberto Toledo, MBA, PMP, Alpha PM Con- on PMI programs and membership, or to report change of address or problems with your sub- sulting scription, contact: Publications Production Supervisor Neal Whitten, PMP, The Neal Whitten Group Barbara Walsh; barbara.walsh@pmi.org Periodicals Associate PMI Board of Directors Natasha Pollard; natasha.pollard@pmi.org Project ManageMent institute General E-mail: pmipub@pmi.org 14 Campus Boulevard / Newtown Square, PA 19073-3299 USA Chair Beth Partleton, PMP Tel +1 610 356 4600; Fax +1 610 482 9971 Reader Feedback: editorial@pmi.org (+1 262 337 1097, E-mail: customercare@pmi.org Toll-free: 1 855 746 7879 (United States) / 1 855 746 7879 (Canada) / 1 800 563 0665 (Mexico) Bookstore: bookstore@pmi.org beth.partleton@bod.pmi.org) PMI Asia Pacific Service Centre Vice Chair Peter Monkhouse, BSc(Eng), MBA, Singapore Advertising Sales PEng, PMP Tel: +65 6496 5501 / E-mail: customercare.asiapac@pmi.org (+1 416 702 9574, PMI Europe-Middle East-Africa (EMEA) Service Centre For advertising information, contact: peter.monkhouse@bod.pmi.org) Lelystad, Netherlands Tel: +31 320 239 539 / E-mail: customercare.emea@pmi.org J.T. 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  • 10. FEEDBACK LETTER TO THE EDITOR VOICES ON PROJECT MANAGEMENT BLOG Project Managers in the C-Suite A Swan by Any Other Name Jim De Piante, PMP, writes: The cover story in the April issue of PM Network (“Control- For me, career growth means managing projects that are more ling Chaos”) promised to tell us how to protect our projects important, more valuable, more interesting or just more fun. Often, against a flock of “black swans.” While much of the advice this can mean bigger teams and bigger budgets, but for me, that is useful, it has little to do with the true black swan idea. doesn’t necessarily translate into bigger thrills. Career growth Events or circumstances with extremely low probability does not mean at all that I need to become an executive to feel and extremely high impact are in fact just risks, and they fulfilled. I see project management and executive management as can and should be tackled through complementary, but very different, skills. To me, that means that the normal risk process. There the two fields will appeal to two very different kinds of people, is no useful reason to give them depending on individual temperament. the special name of black swans. Unfortunately, the risk process Saira Karim, PMP, commented: cannot address these unpredictable It would be fantastic if executives had more project management events. training, but I do believe each role needs its own set of personalities The black swan is a valuable and skills. Project managers are doers/constructors, whereas the concept that warns us to expect executives are more of the painters and creators. Both need each the unexpected. We should be other and are complementary roles, and there should be some proj- careful to use the term prop- ect management representation in executive management. erly and not dilute it through misuse or laziness. If we mistakenly think that risks with very low probability and Matt Kirchman, PMP, commented: very high impact are black swans, then we are likely to Project managers, through ensuring that their projects are strategi- remain blind to the existence of truly unpredictable shocks. cally aligned, are more tactically oriented. I think of accomplished proj- Instead, we should use the risk process to address known ect managers as the non-commissioned officers in the military. They unknowns, and rely on business continuity and resilience are the ones that help a unit (or team) accomplish a particular goal, techniques to protect us from the attack of the black swan. and their effectiveness is based on respect for what they can do, not —David Hillson, PMP, PMI Fellow for their rank. I think it will continue to be rare for project managers to Petersfield, Hampshire, England move to the upper echelon of management, and I’m OK with that. What’s your take? Continue this discussion in the Project PMI members can access a related research report, Project Man- Risk Management Community of Practice. agers as Senior Executives: Volumes 1 and 2, at www.PMI.org/ >> Visit risk.vc.pmi.org for more information. Knowledge-Center/Research-Completed-Research.aspx >> Join the discussion at PMI.org/Voices. LINKEDIN Daniel Hill, PMP, asks: What is a project Which of the following social media manager’s most important personality trait? vehicles do you use to support your profession and/or career? NK Shrivastava, PMI-RMP, PMP, responds: Listening LinkedIn: 63% and communicating is the most important personality trait Facebook: 12% for a project manager. Remember what the PMBOK® Guide says — More than 90 percent of a project manager’s time Twitter: 4% goes into communication. To be a good communicator, Other: 2% you need to be a good listener first. All of the above: 19% >> Join the discussion in the PMI Career Central group. From the Voices on Project Management blog at PMI.org We love to hear from you! Write us an email at pmnetwork@imaginepub.com. >> FOLLOW US on Facebook: www.facebook.com/PMInstitute.
  • 11. In MeMorIaM By SaNJEEv GuPTa Eliyahu M. Goldratt, PhD 1947 – 2011 Eliyahu M. Goldratt, PhD, author of The Goal and In 1997, Dr. Goldratt expanded TOC in his book creator of the theory of constraints and critical chain Critical Chain, which provides the basis for critical project management, passed away at his home in Israel chain project management. Critical chain project man- on 11 June. He was an iconoclast who also established agement emphasizes resources rather than scheduling new methods for managing manufactur- ing, supply chains and projects. After obtaining a doctorate in phi- losophy from Bar-Ilan University, Dr. Goldratt left the academic world to pursue a career in business. He joined Creative Output in 1979, which became the number-six company on the Inc. 500 list in 1984. Its optimized production technology software was the precursor to manufacturing and supply chain optimiza- tion, which became a multibillion-dollar industry in the late 1990s. Dr. Goldratt became recognized as a business thought leader with his 1984 bestseller, The Goal, which introduced the world to the theory of constraints (TOC). It is among Forbes’ list of business bestsell- ers and is required reading in almost every master of business administration program, though the book’s influence is best captured in a quote from The Economist: “A survey of the reading habits of managers found that though they buy books by the likes of Tom Peters for display purposes, the one management or cost. This methodology is claimed to enable 10 to book they have actually read from cover to cover is The 50 percent improvement in project speed. Seven of the Goal.” Even though it was privately published, it has eight largest U.S. military air depots reportedly have sold more than 5 million copies in 35 languages. used its techniques to improve fleet availability while The underlying principle of TOC is that optimizing cutting costs. local efficiencies creates artificial constraints that prevent One cannot overstate Dr. Goldratt’s influence on an organization from realizing its full potential. Dr. thousands of managers around the world, and it will Goldratt famously proclaimed that cost accounting is the only grow with time. “enemy number one” of productivity. By keeping the focus on the ultimate goal, organizations can increase their Sanjeev Gupta is CEO of Realization, a critical chain speed and throughput. TOC has been adopted in a wide project management software and services provider in array of private and public organizations worldwide. San Jose, California, USA. august 2011 PM NETWORK 9
  • 12. thebuzz submit news to pmnetwork@imaginepub.com. all monetary figures are in U.s. dollars unless otherwise noted. Failure rates Finally Drop The reporT card for IT proj- ects is in—and things are looking up as companies step up their project management maturity to better handle scope, risk and change. after years of abysmal failure rates, the number of projects delivered on time and on budget is increasing, according to Chaos Manifesto 2011, a new report by The Standish Group. The survey of 10,000 projects conducted in 2010 around the world revealed: n 37 percent of IT projects were suc- cessful, coming in on time and on budget. n 42 percent were “challenged,” arriv- ing over budget, late, or with less- than-required features and functions. n 21 percent failed completely, can- celed prior to completion or deliv- IN ThEsE PaGEs ered but never used. Those numbers compare favor- 12 project Managers Like This ably on all fronts to the 2008 survey illustration by keith negley results, which showed that only 32 14 Mass destruction percent of IT projects succeeded, 16 Building a New africa while 44 percent were challenged and 24 percent failed. The 2011 results represent the highest success rate in the history of the sEE ThE laTEsT NEWs about project, program and portfolio management online at www.PMI.org/PMport. 10 PM NETWORK May 2008 WWW.PMI.ORG
  • 13. >TIP Chaos survey, which The Standish Group has been conducting biannually since 1994. After years of poor showings—in 2004 only 28 percent of projects Bridge the divide. Despite the growing were considered a success—the recent uptick indi- adoption of project management in IT, there remains a discon- cates that the IT world may have turned a corner. nect between project managers and senior management. Execu- AheAd of the Curve tive sponsors don’t always understand the strategic impact that One of the most obvious reasons for the increase effective project management can have at an organizational level in successful projects is the economic recovery tak- and don’t always see the value of critical project management ing root in many markets, says Jim H. Johnson, processes, says Jim Johnson, The Standish Group, Boston, Mas- chairman of The Standish Group, Boston, Massa- sachusetts, USA. And project managers don’t always do the best chusetts, USA. That shift, albeit slow, means fewer job of conveying that value. “Executive sponsors need training on projects are being shut down or failing due to finan- project management, and project managers need training on how to cial constraints. But it’s more than that. Organizations are communicate with executives,” he says. approaching IT projects in a new way. “Compa- nies today are adopting the principles of project management much more readily than they were in the rising success rate also stems from the types the past,” Mr. Johnson says. Tasks such as estimat- of projects being launched. The Standish research ing and risk management are more thoughtfully found fewer big organization-wide enterprise addressed earlier on, reducing errors and improving resource planning (ERP) system rollouts in the last on-time delivery rates throughout the project life two years. “We saw a lot more moderate projects, cycle. More companies are also developing project with companies revamping or upgrading existing management offices (PMOs), which drive project systems,” Mr. Johnson says. “Those projects are management maturity. smaller and easier to deliver.” IT project teams, in particular, tend to be ahead And those companies that did roll out new ERP 37% of the curve because they work in a much more system projects in 2010 fared poorly, according The portion dynamic environment and need to be able to deal to the 2011 ERP Report by Panorama Consulting of successful IT projects in with problems and turn things around more quickly Group. The survey of 185 organizations from 57 2010, coming than in other fields, says Ricardo Viana Vargas, countries revealed 61 percent of ERP projects in in on time and PMP, a past chair of the PMI Board of Directors small and mid-sized companies took longer than on budget and CEO of Macrosolutions, a management con- expected—compared to 36 percent in 2009. And sulting firm in Belo Horizonte, Brazil. nearly three-quarters exceeded their budgets, up 32% “Because IT projects are shorter and more from to 51 percent in 2009. On the plus side, the The portion time-sensitive, IT project managers are adept at data shows an increase in the number of compa- that was making faster decisions and using smarter team- nies that realized significant business benefits from successful in 2008 work,” he says. the project investments, indicating that companies Certain IT project management concepts, such prioritized results over maintaining budget or 28% as Agile, may not be a good fit for sectors outside of schedule. The portion IT. But Mr. Vargas says other industries can pick Such life-cycle management is vital for projects that was up some tips on preventing project failure by using to deliver bottom-line value, and is a sign of the successful in hallmark IT approaches such as prompt decision- increasing complexity that project managers face in 2004 Source: The making and straightforward communications. managing risks on big IT projects. Standish Group “Make precise decisions quickly and be ready “Most project managers still look at risk as a to change directions if need be,” he says. “The one problem to avoid, but there are types of risks that who moves fastest to market gets a huge advantage.” add value,” Mr. Johnson says. “You have to look at risk and value together to increase the ROI.” SmAll SCope, Big pAyoff Otherwise, those IT project success rates may No doubt the increasing maturity is helping, but start to slide back. —Sarah Fister Gale august 2011 PM NETWORK 11
  • 14. thebuzz Project Managers Like This FACEBOOK, TWITTER, BLOGS, WIKIS their teams. By far, though, the most popular use and other social media tools haven’t quite of social media was to stay in touch with friends reached the exalted status of Gantt charts and and colleagues, cited by 85 percent of the respon- work breakdown structures in the project man- dents. Thirty-six percent of respondents said they agement profession. used social media to communicate with team But they’re gaining ground. members, and 24 percent said they used it to More than 75 percent of project managers reach stakeholders. That conversation, however, said social media improves the way they manage should be one with give-and-take. projects, according to the 2011 Social Media in a “Social media is not just a tool to blast your Project Environment survey by London, England- message, but to really understand what it is that based Elizabeth Harrin, author of Social Media people want to talk about, what gets them most for Project Managers [PMI, 2010]. No on-the- engaged,” says Vickie Smith-Siculiano, PMP, an sidelines observer, Ms. Harrin is also author of Internet marketing and search engine optimiza- the blog A Girl’s Guide to Project Management, tion specialist at Marketview Research Group, a founding member of the PMI New Media Edgewater, New Jersey, USA. Council and head of IT program delivery at Spire Before project managers start tapping into Healthcare. social networks, she recommends defining the The survey, which included 181 respon- most influential stakeholders so the right content dents from more than 30 countries, found that reaches the right channels. LinkedIn ranked as the most popular tool for business use among project professionals. That SOCIAL BOUNDARIES was followed by instant messaging, blogs, Twit- Simply declaring that social media has hit critical ter and wikis. mass doesn’t begin to capture its true reach. “Wikis have a very low barrier to entry in that More than 500 million people actively use they are very easy to set up. Wikis are also easy Facebook, logging more than 700 billion minutes to use, and they are excellent for capturing les- per month on the website. Twitter sees an average sons learned and project information,” says Ms. of 140 million messages sent out per day, adding Harrin. “At the end of the project, a wiki can up to 1 billion tweets per week. More than 100 be passed on to the operational team as a great million people use LinkedIn to network with col- source of organizational knowledge.” leagues past and present. And more than 80,000 Podcasts and video podcasts (vodcasts) were companies—up from 10,000 just a year ago—use among the least-used tools, according to the sur- the corporate social network Chatter. vey. But Ms. Harrin sees a missed opportunity for With that kind of adoption, it’s hard for any project management office professionals looking organization to resist social media’s pull. Yet for training and education tools. extolling the wonders of social media and actu- Nearly half of all respondents employed social ally implementing these tools to benefit a project media tools for document sharing, while 27 per- team are two entirely different things. cent used them for project status updates, and a Many organizations jump into the fray with quarter said they actively used them for managing no clear strategy, which can be detrimental in How Project Managers Use Social Media project status updates managing teams stay in touch with friends and colleagues communicate with team members communicate with document sharing stakeholders 85% 48% 36% 27% 25% 24% SOURCE: Social Media in a Project Environment 12 PM NETWORK AUGUST 2011 WWW.PMI.ORG
  • 15. thebuzz Most popular social networking tools Mr. Wyatt suggested establishing clear policies tailored to each network. For example, linkedin project managers and their teams need to know when it is—and isn’t—appropriate to share pho- tos of a project on Flickr or discuss its progress on Twitter. instant Messaging The New SocialiTeS One of the most common concerns with adopt- wikis ing social media comes from senior managers and project team members fretting it will mean more Least popular work. “The best way to tackle this is to do what you can to manage stakeholder expectations,” Ms. Podcasts Harrin says. “Try to find out what people believe about social media and address any myths.” Video Podcasts From there, she suggests starting small. “Intro- duce new functionality slowly and take the time Source: Social Media in a Project Environment to train people properly,” Ms. Harrin says. “Con- sider how, if at all, you are going to track the the long run. “Just because the whole team is benefit of your social media implementation.” on Facebook and Foursquare doesn’t mean that Having a social media champion on the team they will know how to get the best out of these can help, too. This person can show the way by tools in the workplace,” says Ms. Harrin. “What demonstrating the tools to their full capac- is appropriate for personal use is not necessar- ity and coaching other team members on ily appropriate for work. We need to get this bit the do’s and don’ts of social behavior. “I right to see the growth in the use of social media would like to hope that usage will be self- tools on projects.” regulating, with team members managing That means setting standards—which most their own interactions,” she says. “However, companies have failed to do thus far. Almost 39 if that doesn’t work, an alternative is for the Twitter sees percent of 1,038 U.K. employees said their orga- champion to step in to ensure that guide- an average of nization had no social media policy, according to lines and policies are adhered to.” the 2011 Social Media Survey, a new report com- Security also needs to be addressed from 140 million missioned by consulting group Protiviti. Twenty- the start. Organizations must treat social messages four percent said they were simply unaware of media as they would any other business sent out per whether there was a policy or not. tool—with the proper access controls and “It’s extremely worrying that only a quarter protocols in place. It helps to have a frank day, adding of workers have been provided with any real discussion with the IT department about up to 1 billion guidance regarding the use of social media sites,” what your team is trying to achieve by using tweets per Jonathan Wyatt, Protiviti managing director, said social media, Ms. Harrin says. week. in a press release. People of all ages rely on social media, “Many senior managers assume that their of course. Yet as younger people weaned on less-experienced colleagues would not post inap- Facebook and Twitter make their mark in propriate comments online and that they would the workplace, many of the barriers slowing down think about the risks involved, but time and time social media’s full integration will be broken again they are proven wrong,” he added. “We’re down. It will be “a gradual shift,” however, Ms. seeing a growing number of cases where firms Harrin predicts. “And until we have confidence have vague or out-of-date social media policies and policies supporting the use of these tools that are unenforceable if inappropriate activity from the IT departments, we won’t see wide-scale takes place.” adoption.” —Kelley Hunsberger august 2011 PM NETWORK 13
  • 16. thebuzz Mass destruction The race to build chemical weapons once drove countries apart. But projects to destroy the leftover stockpiles are now bringing gov- ernments together as they share knowledge across the global community. Political leaders around the world agreed to ban chemical weapons from the battle- field in 1997. Under the chemical Weapons convention (cWc), no new chemical weap- ons would be created, and all existing stores would be destroyed by 2012. angola, North Korea, egypt, Somalia and Syria were the only holdouts. In the 14 years since, teams worked to develop project plans, facilities, tools and tech- nologies to safely eliminate the deadly agents. They’ve made impressive progress: as of the pueblo Chemical agent-destruction pilot plant, pueblo, Colorado, usa May, more than 65 percent of the 71,000 tonnes of declared existing chemical weapons had been destroyed, according to the Organisa- In the United States, progress has slowed in tion for the Prohibition of chemical Weapons part due to the strict regulatory environment. (OPcW), the independent organization that although the country is currently constructing oversees the convention. albania, South Korea two facilities to destroy its remaining supply, and India have already completed destruction those projects aren’t anticipated to be com- of their chemical weapons. The russian Federa- plete, with the plants decommissioned, until tion has destroyed more than half of its stock- possibly 2021. pile (20,000 tonnes), and the United States has Neither country is being punished for miss- destroyed more than 84 percent of its supply ing the deadline because of the sheer complex- (23,406 tonnes). ity involved in delivering the projects. “The But there’s still a long way to go. reason why the United States and russia couldn’t ... make it by april 2012 is not bad Missed deadlines will,” Sergey Batsanov, director of the Geneva Neither russia nor the United States—which office for the Pugwash conferences on Science together possessed 90 percent of the world’s and World affairs, told Global Security News- Images Courtesy of assembled ChemICal Weapons alternatIves stockpile of chemical weap- wire in april. “Simply, the process turned out ons at one time—will meet to be much more complicated, much more the 2012 deadline. resource-intensive.” As of May, more than For russia, money has That teams are dealing with highly sensi- 65 percent been the biggest obstacle. tive materials has to be foremost in every deci- of the “The implementation of the sion, says Douglas Omichinski, engineering 71,000 tonnes [chemical weapons destruc- tion] program has been giant Bechtel’s project manager for the design, construction, systemization, operation and of declared existing chemical hampered by the global closure of the Pueblo, colorado, USa-based weapons had been destroyed financial crisis, which threw Pueblo chemical agent-Destruction Pilot Plant it back two to three years,” (PcaPP). With construction of the plant more Konstantin Kosachev, chair- than 77 percent complete as of July, destruction man of the foreign affairs committee in the State of chemical weapons stored at the U.S. army Duma, told russian news agency rIa Novosti in Pueblo chemical Depot is slated to begin in June. The country now predicts a 2015 close. early 2015. 14 PM NETWORK august 2011 WWW.PMI.ORG
  • 17. thebuzz It’s one of the last two remaining U.S. proj- weapons destruction programs. “The United ects, but the team knows it can’t be rushed. States began with a much larger stockpile than “With projects like these, safety, quality and most other countries, but we’ve been successful in environmental compliance come well ahead of attaining nearly all international treaty milestone budget and schedule,” Mr. Omichinski says. dates,” Mr. Levi says. As part of the CWC guidelines, OPCW has “We have benefited from a work force with treaty personnel at the Pueblo plant monitoring a great deal of chemical weapon demilitarization compliance. Tracking by various international, experience, historical knowledge and practical les- federal, state and county regulators, coupled sons learned on our team,” says Mr. Levi. with the strict regulations associated with the Along with delivering their own projects, construction and operations of a hazardous waste- Bechtel and the U.S. government have worked treatment facility, means every aspect of the closely with project teams in other nations, pro- project is carefully scrutinized. “From a project viding technologies, processes and funding. management perspective, it adds a lot of time to The U.S. government, for example, is participat- the overall process as compared to commercial ing in a technology transfer with Russian teams over- construction,” Mr. Omichinski says. seeing projects to destroy chemical weapons facilities, Adding to the challenge is the vast array of according to U.S. Army Corps of Engineers. stakeholders involved in these projects, says Wal- Even after all the weapons are wiped out, ton Levi, the U.S. government’s acting site project manager. Gov- ernment officials, local community members, environmental activists, and the international community are all closely watching project progress, requiring transparency and regular feedback. “The best lesson we’ve learned is the importance of communication,” Mr. Levi says. To keep the public informed, the Pueblo team sends its mes- sage through a variety of channels. Along with hosting monthly project update meetings with community stakeholders, it produces videos explaining how the technology works and shares that information via YouTube, social networking sites, newsletters and other media outlets. “We want to be sure they understand why we choose the at the pueblo plant, one of three distillate carbon filters is being staged on site to await permanent placement. equipment or processes we do and to show them that we have the documentation to support our decisions,” Mr. many team members will be able to tap into their Omichinski says. experience and move into other complex projects at nuclear facility construction and utility com- Crossing Borders panies, says Mr. Omichinski. “When you work Even with all the scrutiny, the experience gained in such a highly regulated procedure-driven envi- at Pueblo and other sites has helped the United ronment, there are a lot of places you can go.” States safely ramp up its position in international —Sarah Fister Gale august 2011 PM NETWORK 15
  • 18. thebuzz Building a new africa AfricA’s woefully inAdequAte infrastructure con- tinues to hinder the continent’s great eco- nomic promise. And it’s clear the sub- saharan nations can’t do it on their own— paving the way for new alliances with the private sector. looking to improve the dire traffic jams in its commerce capital of lagos, nigeria joined forces with local African development gautrain rapid rail Link, south africa Bank. the resulting $400 million project to rehabilitate and widen Bringing in ExpErtisE—and MonEy the city’s expressway marks the country’s first PPPs create new avenues for financing while public-private partnership (PPP). providing governments with much-needed And in south Africa, which has implemented project management knowledge. the influx of many successful PPPs over the past decade, the private-sector money and expertise drives more Gauteng provincial government teamed up with cost-efficient projects, reduces risks and fosters Bombela, a canadian-french consortium, for an best practices while developing the skill sets of 80-kilometer (50-mile) rapid-rail link to connect the local population. Johannesburg, Pretoria and Johannesburg’s or that added project management capability tambo international Airport. the nearly $4 billion is particularly valuable on large cross-border project, which began construction in 2006, was projects that face increased structural and reg- slated to debut in July. ulatory complexities, says Adama deen, head the simple truth is that without adequate of infrastructure programs and projects at the roads, telecommunications lines and other pri- Johannesburg, south Africa-based new Part- mary infrastructure, the sub-saharan region nership for Africa’s development’s Planning can’t build its industrial base and lure future and coordinating Agency. investors. “PPPs give these countries the capacity they yet most African nations lack the financial need to manage and implement cross-border resources and expertise to close this yawning infrastructure projects,” he says. “it is the way gap. even after spending nearly 12 percent of forward for Africa.” its collective GdP on infrastructure, the conti- the Kenyan government, for example, is Image Courtesy of BomBardIer nent requires nearly $93.3 billion more to meet looking to finance as much as 80 percent of its current needs, sanusi lamido sanusi, governor infrastructure projects through PPPs by 2030. of the central Bank of nigeria, reported at nigeria estimates it will need between $12 bil- the west Africa Global trade and investment lion to $15 billion annually for the next six years forum in June. to meet its infrastructure demands. to reach enter the private sector—always on the prowl those numbers, the urban development Bank to stake a claim in new markets. of nigeria plc (udBn) and the development 16 PM NETWORK august 2011 WWW.PMI.ORG
  • 19. thebuzz Bank of Southern Africa signed an agreement more complex struc- in March with “the express goal of improv- tures, often impact- ing the capacities of both public and private ing negatively on sectors to deliver infrastructure,” said UDBN implementation,” managing director Adekunle AbdulRazaq according to a >> after spending nearly Oyinloye in a press release. They will share report from the 12 percent of its collective ideas and technical expertise for infrastructure online busi- gdP on infrastructure, africa development, including guidance for project ness publication structuring, financing options, funds mobili- How We Made requires zation, bid management, and evaluation and It in Africa. “A fair nearly $93.3 negotiations. amount of education billion more and communication in both the to meet OvercOming rOadblOcks public and private sector must be current Although PPPs bring the promise of much- encouraged.” needed development and investment in Africa, For the PPP project model to needs they also add complexities—and complica- flourish in the long term, govern- tions. ments need their own project man- To begin with, Africa’s public sector leaders agement experts to help guide the must define the optimal amount of private- process. That will ensure they under- sector participation in any project, André Pot- stand their responsibilities and risks as tas, infrastructure advisory leader for Africa at they move forward on projects that can take Deloitte, wrote in an article for Independent years or even decades to Online, a South African news outlet. One of bring to financial close. the biggest challenges facing project leaders is Project plans also deciding which partner takes on the respon- need to account for infra- Fog City Consulting sibilities and associated risks of each project structure operation once phase, including design, finance, construction, construction is complete, operation and maintenance. said George Mahlalela, www.fogcityconsulting.com “The shape of that risk allocation deter- director-general of the mines the structure of the partnership and Department of Transport Online PMP® Exam the costs,” he wrote. “Agreeing [on] this risk- for South Africa, in a Preparation sharing allocation has often been a stumbling June interview with Mon- Weekend, Weeknight block.” eyweb. & Governments also struggle to bring funda- “Our interest is not 5 Day Boot Camps mental project planning and execution capabil- only just getting foreign We will provide you all the knowledge and tools needed to take the next step in your ities to a point at which the private sector has investors to come into career. Don't let this opportunity pass you the confidence to invest, says Mr. Deen. South Africa. We see the by, register today for one of our upcoming “Many projects are not ready for PPPs creation of jobs in local experienced instructor led courses. because they have not achieved bankability,” industries as important,” he says. “The risks are elevated for the private he said. “Part of what Online PDUs sector when a country can’t provide security we’re going to be talk- guarantees.” ing about is how do Assuming teams can get a project off the they transfer skills and ground, a lack of local project management transfer technology into and technical expertise can still hinder their South Africa so that for progress—or force private companies to bring future development … Enroll Today! in talent to take on leadership roles. we have that kind of www.fogcityconsulting.com info@fogcityconsulting.com “The result is often a vehicle which is top- capacity here.” PMP and the PMI Registered Education Provider logo heavy with international advisers and perhaps —Sarah Fister Gale are registered marks of Project Management Institute, Inc. august 2011 PM NETWORK 12619_FOG CITY CONSULTING.indd 1 17 7/7/11 10:14:5
  • 20. fromthetop Joel Verinder, PMP, Texas Health Resources, Arlington, Texas, USA A New Prescription SOME PROjEcTS just refinement of a strategic IT council. The council shouldn’t make the cut, espe- includes an executive representative from each hos- cially in an industry facing pital, along with several physicians, and a few other severe financial restraints. But IT representatives to provide technical direction at Texas Health Resources, and answer questions. every project requested of Now, the council considers every project pro- the IT department was posal and ranks it against the current portfolio and approved—until joel Verinder, existing resource constraints. The PMO also pres- PMP, stepped in as portfolio ents monthly data to the council about resource management office director. availability. Before a project is approved, business Leveraging experience gained across sectors rang- owners must bring their case to the council and ing from airlines to telecom, he has transformed the be able to define the anticipated ROI, whether it’s existing portfolio management office (PMO) into financial, regulatory or patient safety. Every busi- a business-driven one aimed squarely at helping ness case is expected to have metrics to define suc- >> As the PMO, ensure each of the not-for-profit’s 14 hospitals ben- cess. And six to nine months after implementation, we provide efits from the organization’s limited IT resources. business owners must report back on the results to the council. transparent data How has the organization’s approach to portfolio to the executive management changed? What kinds of results have you seen? The PMO’s initial charter focused on people, Today, we support 85 projects, and overall IT decision mak- process and tools, but the executive leadership morale has improved. But it took some time. In ers. This infor- wanted increased adoption and business value. the first couple of council sessions, it was a struggle When I came in, I swung it around to focus on to prioritize projects. Eventually, with all the talk mation validates business needs first, and figure out how project about healthcare reform and new reimbursement that the portfolio management processes and templates can help models, people started to understand the resource solve problems. We got some quick wins early constraints we face. is aligned with on, which helped us gain momentum. Eventually We’re taking a more holistic systems approach, the strategic we evolved to focus on resource planning and with the goal of meeting the needs of all the hospi- prioritization. tals in the network. And because business owners direction of the are now presenting project results to the council, organization, Why did the PMO focus on resource planning? it gave visibility to some of the small projects that Texas Health supports 14 hospitals with a central- have delivered tremendous ROI. while enabling ized PMO and a single IT group with 575 people. leaders to truly There’s always a big need for our services, and we What lessons have you learned that might benefit were often overwhelmed with requests. The IT other PMO leaders? run IT like a team members had developed a “just get it done” The most important aspect of project management business. mentality, and they didn’t feel like they had a revolves around change management and how you voice. It caused us to start asking questions about communicate that change to your stakeholders and whether we were working on the right projects and project teams. If you can’t translate your vision to whether we could do a better job. the organization, that’s a risk. And if the business We worked with the IT governance team to owners don’t see value in what you are doing, you create a prioritization model, which included the won’t exist for long. 18 PM NETWORK August 2011 WWW.PMI.ORG
  • 22. viewpoinTs The enThusiasm ThINKING POsITIvE FacTor You can go from apathy to eagerness with the right motivation. by AlfONsO bucERO, Msc, PMP, cONTRIbuTING EdITOR W hen I looked for ways to motivate myself early in my career, I saw every project not only as a learning opportunity but also an opportunity to make people happier. And the key to doing that was fostering enthusiasm. As a project manager, there’s a way to develop enthusiasm so meaningful and profound that it will not decline no matter what strain it is put under: 1. Decide what particular personal characteristic you want to strengthen. 2. Develop it by acting as if you already possess the desired characteristic. 3. Believe and repeatedly affirm that you’re in the process of creating the quality you’re working to develop. If you want to be a more enthusiastic, for example, you must act with enthusiasm! Another practice to foster an optimistic attitude is As a project manager, there’s a that of “mental ventilation.” Clear your mind of the way to develop enthusiasm so gloomy, foreboding thoughts that prevent the cheerful and spirited thinking that stimulates enthusiasm. meaningful and profound that it Getting up on the Right Side of the Bed will not decline no matter what A vital element in developing enthusiasm as a project manager is the manner in which you start the day. strain it is put under. Approaching each morning with enthusiasm can set the tone for the entire day—despite any disappointing vators. I’m always looking for new projects and initia- news you may face. tives that help me feel alive and happy. Develop your I always read some positive sentences after having enthusiasm and apply your passion to managing the my breakfast. Regardless of how busy my day is going people involved in your projects. to be, for those few minutes, I don’t permit any hurry Start the day focused on your blessings, and you will or haste, even in thought. react to your issues with a more positive approach— As you progress in your career, many things conspire and your enthusiasm will never die. PM to dull your enthusiasm: disappointments, project fail- ures, frustrated hopes, unmet ambitions and the inevi- Alfonso Bucero, MSc, PMP, is an inde- table energy drain. But such deterioration of your life pendent consultant who manages projects force happens only if you allow it. If you make a real throughout Europe and Asia. He is the effort, you can remain an enthusiastic project manager. author of Today Is a Good Day!: Atti- To maintain enthusiasm, you must find your moti- tudes for Achieving Project Success. 20 PM NETWORK august 2011 WWW.PMI.ORG
  • 23. viewPoints 3 solutions ThE agilE PROJECT MaNagER for Your offshore Problem As distributed projects become the norm, Agile methods can help them run smoothly. by JEssE FEWEll, CsT, PMP t he honeymoon is over. Looking to deliver more while spending less, just about every large com- More project managers are pany has engaged in distributed offshore proj- suffering from quality issues, lan- ects over the last several years. But organizations are discovering that outsourcing carries more pain than guage gaps and woefully unmet was promised. More project managers are suffering from quality issues, language gaps and woefully unmet expecta- expectations. so what can we do? tions. So what can we do? Here are some ways that Agile can help you overcome some of the side effects of running reveal problems and opportunities earlier in the game. If offshore projects: it reveals a slew of defects, the sponsor can reprioritize debugging over adding new features. If an incremental 1. Stop emailing and start collaborating. deliverable is built to off-target specs, the sponsor still has Agile project management places a strong emphasis on the opportunity to swap some of the pending features for collaborative colocated communication. Using written the needed refinements. English can sometimes mitigate language issues, but email takes too long, and large documents can be stale the 3. Waste some money. moment they’re sent. Instead, we need to augment project The most successful teams build an additional 1 to 2 per- communications with modern online collaboration tools cent into their budgets for micro investments that yield such as Google Docs, instant messaging, discussion boards high strategic value. One example would be sponsoring and Skype. Some teams have always-on webcams so each some advanced technical training for team leads at the side can see what’s happening on the other. offshore site. Even if you have to use your own budget, You can’t have successful projects without some kind of investing in better engineering practices can dramatically interaction. If time zones make that inconvenient, share reduce the quality risk on your deliverables. Many execu- the pain, with each worksite taking a turn after-hours. tives may yell at you for spending “unnecessary funds”— In short, work hard to communicate in real time. You’ll but US$10,000 out of a US$1 million budget is a small develop stronger collaboration, which will yield greater price to pay for project success. understanding and more innovative results. Projects are hard enough as it is without adding the extra 2. Get bad news early. pain of coordinating teams across cultures, countries and A mentor once told me, “Never surprise your boss.” Simi- continents. But as global projects become more the rule larly, a good project manager wants bad news as early as pos- than the exception, the modern project manager needs sible. One of the greatest pain points for distributed projects to be vigilant in improving communication, quality and is unmet expectations. Sponsors can spend significant time satisfaction. Agile can help achieve that. PM and money generating rigorous requirements, wait a year to see any output and then receive a single large deliverable Jesse Fewell, CST, PMP, is the managing that simply misses the mark. If iterative-incremental deliv- director for offshore Agile projects at Ripple- ery is a good risk-management practice for local projects, Rock India and founder of the PMI Agile then it’s absolutely vital for distributed projects. Community of Practice. He can be reached A monthly demo using a virtual meeting platform can at jesse.fewell@vcleader.pmi.org. august 2011 PM NETWORK 21
  • 24. viewpoints Climbing the ladd career Q & a To get ahead, build your business acumen and leverage your social media connections. by Lindsay scott q I’ve been a Project Management Professional (PMP®) Find people in the business willing to mentor you in n certification holder for a number of years. However, I their area of expertise. want to ensure my career-development plans include A show of commitment to self-development may also additional business skills useful in a senior role. What create wider opportunities for you as you come into con- should I be focusing on? tact with members of the business team. Your visibility A will almost certainly be raised, and that may put you in q Your current experience, skills and certification in proj- a better position to practice your enhanced knowledge. ect management have provided a solid foundation for your career so far. To take it to the next level, you need I recently signed up on LinkedIn to reconnect with people, to consider the wider business environment in which but how else can it help me in my career development? A you operate. Business management, com- With Facebook seen as a personal mercial awareness, financial channel, LinkedIn is widely rec- management, organizational ognized as the leading profes- strategy and business change are sional social networking tool. just some of the business areas Used proactively, three areas are that directly relate to project particularly valuable: managers. Widening the focus 1. Networking: Keep in touch to include organizational and with those with whom you already human resources management, have a working relationship— marketing, operations, and current and past team members, leadership will give you a well- peers, managers and vendors. rounded skill set. That, in turn, These are the people who may boosts your chances for moving someday be able to provide you up the career ladder. with new career opportunities. All this may sound like the Be sure to also use LinkedIn to blueprint for a master’s degree follow up with the project man- in business administration, agers you encounter at meetings, but your development doesn’t conferences and seminars—espe- have to take such a formal (and cially if you’re looking for a win- expensive) route. The key to dow into project management building additional business careers in sectors and industries skills is choosing the learning other than your own. that best suits you and your It’s worth noting that 80 industry. Here are some ways to percent of career opportunities get started: don’t come through career or n Engage your manager and corporate sites, but rather from explain your objectives. personal recommendations and n Identify target areas in which referrals. Make those connec- you’re looking to increase your tions work for you by staying knowledge. visible and proactive. 22 PM netWorK August 2011 WWW.PMi.orG