UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
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.
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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.”
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
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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
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