Projects

Prof. Mikko Koria16.2.2016

Definitions

• Project– Temporary organisation set up to create a unique

product, service or result• Project Management

– Managing the project!

Project ManagementScope

TimeCost

The Approach

Quality

Future of project management

• From the lifecycle model to theories of complexity• From instrumental processes to social processes• From product creation to value creation• From narrow to broad conceptualizations• From trained technicians to reflective practitioners

4Dr.MikkoKoria24.11.2010ExtremeProjects

Project oriented societies

SWE UK NOR IRL DEN AUT HUN ROM LAT

POS 56 55 46 45 42 37 34 23 22

POS=Projectorientationinsocieties

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Thesis:Societiesarebecomingmoreproject-oriented.Projectsandprogramsareappliedastemporaryorganizationintheindustry;butalsoinnewareassuchasschools,associations,smallmunicipalities,andeven,families.Therefore,projectsandprograms,andprojectandprogrammanagementarenotjustamicro-economicconcern,butalsoamacro-economicone.

Source:Garais,2002

Basic Concepts

• Operations, programmes, projects• Benefits, outcomes, outputs• Project phases• PM processes• PM areas

Project Management areas I

Three key elements• Scope: what are we doing?• Time: how much time needed?• Cost: money and human resource ?

Project Management areas II

Additional elements• Quality mgmt: appropriate?• HR: how much and what kind?• Communication: stakeholders?• Risk management: know proactively?• Procurement management

Complexity: tasks & environment

Increasingcomplexityoftheenvironment(s)

Increasin

gcomplexityofthe

(setof)tasks

Taskorientation

Roleorientation

Projectcomfortzone

Programmecomfortzone

Organisationalorientation

Theory of projects?• Task orientation

– Assumes perfect knowledge and is fully rational and informed (Homo Economicus).

– Critiqued as poorly defined, impractical, a myth, benefits vague?• Organisational orientation

– Relationships: agency theory – Is not immune to conflict between parties, control aspects fundamental

• Role orientation– Capabilities of actors– Goals/benefits may remain vague

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Management by projects

• Management by projects offers:– Organisational flexibility– Decentralized responsibility– Stronger focus on complex issues– Goal oriented problem solving– Better quality solutions & wider consensus– Individual & organisational learning

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Management by projects• Management by projects

– Projects strategically important– Autonomy of project in terms of structure– Base organisation creates the visions & strategies of

projects– Continuous organisational development vital– Project management a diffused competence, not

specialized know-how

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Management by projects• Programme vs project management

– Benefits vs efficiency• Base organisation’s control

– Manages the strategy of portfolio of programs, projects, reporting, community of practice, management offices

• Standardisation– Within patterns create efficiencies, gives control

• Project management maturity– Achieving the optimal level of development

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Programmes & projectsStrategicLevelOperation/ProgramManagement(Benefits,approach)

OperationalLevelProjectManagement(outputs,efficiency)

Identifyingaprogram

Governingaprogram

Closingaprogram

Initiating ClosingPlanning

Executing

Controlling

ManagingthePortfolio

DeliveringBenefits

Definingaprogram

Programmanager

Projectmanager

Shenhar & Dvir (2007) NTCP Diamond adapted to recovery

Novelty

Derivative

Adapted Koria 2008

Very fast apartment block relocation project for squatters

Complexity

Pace

Technology

Platform Breakthrough

Array System Assembly

Regular

Fast

Time-critical

High-tech

Medium-tech

Low-tech

Self-help housing project on own land

Large and complex shelter programme

NewProduct/Service(NPD/NSD)developmentprocess

PHASE:

FOCUSON:

Invention Planning OfferingDevelopment

Commercialization

Creativity DecisionMaking

Speed Costs

LAUNCH

BusinessProcess

Development

Roadmaps

BusinessIntelligence,Foresight

Strategy

Competence

Cross-functionalteams

Source:Innovation ManagementInstitute,AaltoUniversity

Thefrontend

ThefrontendofNPD/NSD

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Project as an assignment

• The rationale of a project? Why should a base organisation set up a project?– Change: adapt to externalities, enhance

competitiveness and/or earnings, improve control– Stability: financial/social costs of change are high,

sustainable advantage, predictability, difficult of change.

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Project as change• Lewin’s change model (1947)

– Unfreezing– Moving– Refreezing

• Y model (Armanakis & Bedeian, 1999)– Describe the current situation– Describe the desired situation– Analyse and prioritize needs of change– Look for alternatives, make action plan– Get approvals, implement for action plan– Describe and evaluate the outcome

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Base organization change

• Mission based activities• Management activities• Administrative and technical support activities• Resistance to change is:

– Emotional– Cognitive– Intentional

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Time in projects• Three levels:

– Organisation– Team– Individual

• Different ideas of time– Cyclical, linear, alternating back and forth

• Different ways of distributing activities in time– Conventional network planning– Polychonic (South Europe, South America, south –East Asia) or monochronic

(UK, USA)– Entrainment of process (sequencing, synchronicity)

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3. Foundations of projects

• In change oriented projects, three key issues emerge:– How of should base organisation initiate change

(change strategy)?– What should the base organisation look like in the

future?– How should project work be done (implementing

strategy)?

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Strategies affecting projects• Change strategy 1 : punctuated equilibrium (Gould & Eldridge, 1977; Romanelli &

Tushman, 1994)– Evolution is not linear, leaps and bound exist, but a repeated patterns of

relative stability punctuated by intensive activity– Defensive strategy, change is put until last moment

• Change strategy 2: event / time pacing (Brown & Eisenhardt, 1997, 1998)– Event pacing takes change cues from the environment– Time pacing from predetermined cycles– Proactive, ongoing constant change, change an obsession

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Uncertainty and projects• Lack of information• Lack of knowledge• Lack of control

– Operational or task based uncertainty– Contextual / environmental uncertainty– Acts of god

• Unknown unknowns• Loch et al (2006) propose that deep uncertainty can only be

managed by learning and experimenting

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Stakeholders in projects

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Source:Andersen,2008,p.82

Stakeholders in projects• Stakeholder power forces project to do something it would not do otherwise

– Coercive power– Utilitarian power– Normative power

• Stakeholder legitimacy in terms of norms and values– Individual– Organisation– Society

• Stakeholder urgency; demands of immediate response– Time sensitivity– Criticality

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Establishing the projectTwo issues above everything else:• The business case: the reason/rationale why the base organisation wishes to

establish the project– The expected changes– The contribution of these changes– Responsibilities– Expected impact/value/benefits of project

• The project mandate: the assignment that the base organisation gives to the project– Naming of project– Identify project owners, governance and managers– Background– Mission– Goals, aims; what the project is expected to achieve, success criteria– Scope and delimitations– Project boundaries

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4. Planning projects• Collective effort

– Widens available expertise & experience– Useful also for stakeholder management and ownership of projects

• Dilemma of project planning– Decisionmaking on incomplete knowledge

• Tiered planning: three levels– Strategic: making the desired outcomes– Tactical: what outputs do we want to achieve– Operational: solving how to get the outputs

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Dilemma of project planning

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Source:Andersen,2008,p.82

Project start-up• Project start-up activities must achieve an common understanding of

project– Discussions between project owner and PM– Initial planning and organising of the project– Start-up seminar, kick-off– Written confirmation of agreements on project mission, goals,

plans, organisation, control– Training participants in project related skills

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Milestones• Basic units of project plans

– Anticipates what a project is supposed to achieve by pre-set dates

– Need indicators of achievement– Connext project goals– Act as control stations in projects– Must be logically linked to each other: i.e. on the same

continuum, or result path– Linked to time scheduling, dteailed planning must exist between

milestones

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5. Organizing projects• Organizational nature

– Action organizations generating results in terms of good, services, through often single, focused action rationality.

– Political organizations allow for multiple rationalities, and views, aims, conflicts.

• Four main approaches to separate politics from action– By different organizations– By different environments– At different times– As different topics

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6. Controlling projects

• Describe current status• Assess degree of deviation between current status

and plans• Establish causes of deviation• Determine corrective measures• Implement

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7. Leadership and projects

• Six directions of attention to relations– Upwards: with owners– Outwards: with end users– Downwards: with project team– Inwards: own performance– Forwards: planning– Backwards: control

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Leadership styles of PMs• Management is about doing things right • Leadership is about doing the right things• Streams of leadership theory

– Importance of leaders personality– Importance of behaviour– Importance of power– Importance of context– many/all of the above!

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Projects in Business

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Project mgmt areas

Complexity and control

Key issues

Strategy 1: Planning • Management of a single project• Execute plan and business model toward goal• Identify and manage risk• Learn and update within project• Conventional project management techniques and

training apply

Simpleprojects&LoneGenius

Strategy 2: Adaptation • Management of a project network• Plan as much as possible• Develop a joint business model• Create a common vision between stakeholders, political process• Adapt to others• Conventional project management techniques and training partly

useful

Complexproductsandservices&InspiredTeamLeading

Strategy 3: Learning • Management of a project-based firm• Develop processes and protocols through learning from serial

projects• Adapt business model incrementally to changing environment• Conventional project management techniques and training useful in

the individual projects, not in the whole business

SerialKillerProjects&Perseverance

Strategy 4: Selectionism • Management of a business network• Concurrent evolution of alternatives• Business model experimentation in ecosystem• Emerging responses to unknown unknowns• Conventional project management techniques and training useless

Evolution&Ecosystems

Strategic alternatives