Business Management Consultants

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Nov 20, 2013 (3 years and 9 months ago)

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Business Management Consultants

Business Management Consultants

Creating the Project
-
based
Company

An Executive Briefing

with


Dr. Tom Johns

Ph.D, PE,PMP, MAPM

1st International Athens Conference on

Project Management Best Practices

Athens, July 1st, 2006

Business Management Consultants

The Project
-
based Companies

The Leading Edge in Management

Business Management Consultants

The Project
-
based Company

Trend toward Project
-
based way of working

Projects

The

Company

PM

PM

Project


A

Project


B

Customer


Bus


Dev

Sales

Ops

MIS

Business Management Consultants

What is a Project?

Quality

(Planned Results)

Resource

(Budget)

Schedule

(Time)

An Enterprise

Undertaken to Achieve

Planned Results

within a

Time Limit

and a
Budgeted Resource

Business Management Consultants

The Project
-
based Culture

British Aerospace

Business Management Consultants



66%

say employee morale improved



62%

say management moral improved



80%

say profit improved



81%

say productivity improved



90%

say product or service quality improved

Published Benefits

Of

Project
-
based Management

Business Management Consultants


Boeing

reduced lead time parts & matl
30%,

design time
90%,


McDonald Douglas

reduced scope changes by
68%,


Northrup

reduced engineering changes by
45%,


US DOD

reports
50%

reduction in product lead time,

Published Effects on Performance

Business Management Consultants

“The difference between companies

with
‘Mature’

Project Management Systems

and poor ones is

13.5

points to your
ROI


What is your Company’s Maturity?

“ISO, TQM and Six Sigma

Are all fine,
but
...”

There is an unmistakable trend in the world today

Business Management Consultants


Business Roundtable

reports difference of
13.5 ROI points



in 2000 capital projects representing 300 B USD from various


industries having good to poor project management systems


and practices.

Published Effects on Performance

Business Management Consultants

The First Steps in Developing a

Project Management Culture


for

Executive, Senior and Middle Managers



Write clear policy statement stating your support of


Project Teams responsibility and authority,



Continually repeat the


message that


Project Teams are


Empowered by you


and demonstrate it.

Business Management Consultants


Passion without a system

is as bad as

a system without Passion


Business Management Consultants

Principles & Methods

Teams as Building

Blocks (People)

Organizational

Support

A Complete Project
-
based

Management

System

Business Management Consultants

METHODS
&TOOLS
PEOPLE &
PRACTICE
ORGANIZATIONAL
SUPPORT

Tells the business how it should work

Defines working philosophy and influences working culture

Links to
Organization
Principles

Links to Business Process Model

Corporate & Executive Working Philosophy

Tells the business what Methods &
Tools to employ

Defines Methods & Tools

Project Types

Phases & Milestones

Procedures & Guidelines

Actions & Deliverables

Supporting the Business Operations

Developing People

Roles, Responsibilities &
Accountabilities

Competencies

Career Development
The
AIRBUS
Project Management System

AIRBUS

Business Management Consultants

BMC’s

Project

Management

Maturity

Model


An Organizational

Development

Tool

Level 5



Super Project
-
based

Level 4



Project
-
based

Level 3


Responsible

Level 2


Recognition

Level 1



Relaxed

Business Management Consultants

The World Management Maturity is Low

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Level 1
Level 2
Level 3
Level 4
Level 5
Level of Maturity
Organizations at
Level of Maturity
SOURCE:
Project Management Maturity Benchmark,
Center for Business Practices,

Research based on
assessments using industry
standard Project Management
Maturity Model (PMMM).

A Strategic Opportunity

Business Management Consultants

Teams as Building

Blocks (People)

Principles & Methods

Organizational

Support

A Complete Project
-
based

Management

System

Business Management Consultants

BMC’s

Maturity
-
based

Curriculum

Business Management Consultants

AIRBUS

UK

Competencies Framework

Business Management Consultants

Personal

Values

Corporate

Values

Societal Values

A Management System

With Different Values

Business Management Consultants

Relationships

&

Rules

Time

Environment

Dimensions of

Cultural Difference

Business Management Consultants

Institutional Implications

of

Pervasion of Value Relativism



Power may be substituted for ideology




Expediency may replace ideological criteria




Decentralization of decision making may be


made difficult




Policy becomes impossible
-

continuity &



consistency are non
-
existent
-

decision makers


become immobilized






Ronald S. Paul






Battelle Values

Business Management Consultants

For an Project
-
based Company

with

Managed Risk

Develop the Appropriate Project Management skills in
everyone throughout the company and at all levels,


Work through Cross Functional Project Teams,


Conceive middle management as facilitators

and coaches,



Participated management, eliminate fear,

Maintain few organizational layers,


Maintain a client minded organization and

and project
-
based accounting,


Operational procedures support teams.




Business Management Consultants

Thank you

Questions?

Business Management Consultants

Business Management Consultants

Assessment Tools

For Project Management Improvement

with


Dr. Tom Johns

Ph.D, PE,PMP, MAPM

1st International Athens Conference on

Project Management Best Practices

Athens, July 1st, 2006

Business Management Consultants

Principles & Methods

Teams as Building

Blocks

Organizational

Support

Business Management Consultants

Client

Requirements

Organizing

&

Staffing

Planning

Directing

&

Leading

Controlling

Reporting

Reprogramming

1

2

3

4

5

Knowledge Areas

Mapped into behaviors

Life Cycle

Project Life Cycles, Knowledge Areas
and

Planning Behaviors

Knowledge

Areas

Business Management Consultants

Management Tools to Create

Appropriate Management

Behaviors

Client

Requirements

Organising

&

Staffing

Planning

Directing

&

Leading

Controlling

Reporting

Reprogramming

1

2

3

4

5

Business Management Consultants

How are our Project Managers Doing?

The Assessment Inventory Kit™

A

Leading Edge

Management Tool

Business Management Consultants

How are our Project Managers Doing?

(An example of the scoring)

I. Planning

1. I reach a clear agreement with the project’s client concerning


the overall project objectives


2. I appropriately involve key project staff members in project planning

A B C D E

Total





0

1

0

1

0


Percentage of Time You Agree



A B C D E

90
-
100 75
-
89 50
-
74 25
-
49 0
-
24

Scoring

5xA + 4xB + 3xC + 2xD + E = ?

5x
0


+ 4x
1

+ 3x
0

+ 2x
1

+

0

=
6

Business Management Consultants

How Do our Project Managers Compare to

Very Successful Project Managers?

I

n

v

e

n

t

o

r

y



S

c

o

r

e

0

2

0

4

0

6

0

8

0

1

0

0

2

4

2

6

2

8

3

0

3

2

3

4

3

6

3

8

4

0

I

n

v

e

n

t

o

r

y



S

c

o

r

e

0

2

0

4

0

6

0

80

1

0

0

2

4

2

6

2

8

3

0

3

2

3

4

3

6

3

8

4

0

I

n

v

e

n

t

o

r

y



S

c

o

r

e

0

2

0

4

0

6

0

8

0

1

0

0

2

4

2

6

2

8

3

0

3

2

3

4

3

6

3

8

4

0

I

n

v

e

n

t

o

r

y



S

c

o

r

e

0

2

0

4

0

6

0

8

0

1

0

0

2

4

2

6

2

8

3

0

3

2

3

4

3

6

3

8

4

0

I

n

v

e

n

t

o

r

y



S

c

o

r

e

0

2

0

4

0

6

0

8

0

1

0

0

2

4

2

6

2

8

3

0

3

2

3

4

3

6

3

8

4

0

Planning

O

r

g

a

n

i

z

i

n

g



&



S

t

a

f

f

i

n

g

D

i

r

e

c

t

i

n

g



&



L

e

a

d

i

n

g

Controlling

R

e

p

o

r

t

i

n

g

%

%

%

%

%

Find the Percentage of People Whose Scores are Less than Yours

Business Management Consultants

Measuring Change in Project Manager’s Performance

Best practice benchmark

%

% of International Companies demonstrating better PM Practice


32%

40%

6%

55%

45%

8%

2%

0%

70%

29%

Airbus UK November 2001

Business Management Consultants

Improvement

in Mean Scores

Across

AIRBUS

Advanced Development Program

Managers

Business Management Consultants

Improvement

in Consistency

Across
GSK

Project Teams

Business Management Consultants

Effects of Project Management Training

on

Assessment Inventory Scores

Before & after

line only managers were trained


Dresser Industries New Product Development

Business Management Consultants

Percentage of Companies in the Data Base

Scoring Less Than

Assessment Inventory Score Shown

Planning

After Line Managers

Were Trained

Before Line Managers

Were Trained

Business Management Consultants

Principles & Methods

Teams as Building

Blocks

Organizational

Support

The BMC Project Management System

Business Management Consultants

BMC’s

Project

Management

Maturity

Model


An Organizational

Development

Tool

Level 5



Super Project
-
based

Level 4



Project
-
based

Level 3


Responsible

Level 2


Recognition

Level 1



Relaxed

Business Management Consultants

BMC
-

PMMM

PMI®
-

OPM3

Business Management Consultants

BMC’s Project Management Maturity Model

(Composition)

Business Management Consultants

Measuring Maturity

(Level and Variance)

Projects


Bus


Dev

Sales

Ops

MIS

The

Company

PM

PM

Project


A

Project


B

Customer

Mktg

Sales

Ops

MIS

Project Management Maturity Level - Principles Sub System
3.0
3.0
2.1
2.8
3.0
2.7
3.6
3.0
3.1
3.1
3.0
3.6
2.9
3.0
3.4
3.8
1.2
Objectives
WBS
Project Organization
Scheduling & Resourcing
Baseline (Budget)
Interfaces
Project Plan
Closure & Post Activity
Risk Planning
Risk Assessment
Risk Response
Risk Control
Control Process & Behaviors
Control Infrastructure
Control Techniques
Reporting Process & Behaviors
Reporting Infrastructure
Company Score
Project Management Score Spread - Principles Sub System
Objectives
WBS
Project Organization
Scheduling & Resourcing
Baseline (Budget)
Interfaces
Project Plan
Closure & Post Activity
Risk Planning
Risk Assessment
Risk Response
Risk Control
Control Process & Behaviors
Control Infrastructure
Control Techniques
Reporting Process & Behaviors
Reporting Infrastructure
Spread of Scores
Target Spread of Scores - 1.5 Levels
Maturity

Level

Maturity

Variance

Business Management Consultants

Principles & Methods

Teams as Building

Blocks

Organizational

Support

Business Management Consultants




Percentage of the time you agree that these are done

100
-
90%

89
-
75%

74
-
50%

49
-
25%

24
-
0%

1.

A management committee or group formally exists

which meets regularly with Project Managers for

the purpose of reviewing the performance of project

27.9

31.6

13.7

20.6

6.6

teams and assisting them in the removal of obstacles

that impede their progress.

2.

Project priorities are established, reestablished as

necessary and clearly communicated to the project teams

12.8

51.3

19.2

14.4

2.3

and appropriate managers.

3.

The project managers/leaders meet regularly with their

respective line managers to review progress, problems and

19.6

32.3

43.1

2.5

2.5

corrective actions regarding their projects.

4.

Project planning and control processes exist, are

20.7

39.7

23.0

11.4

5.2

documented, understood, and practiced across the organization.

5.

A Project Execution Plan is required to be developed and

42.9

28.2

18.1

6.4

4.4

approved before a project is permitted to begin.

6.

Line managers are evaluated on the degree to which they

support the performance of cross functional project teams as

5.4

21.9

30.3

31.1

11.3

well as projects in their own areas.

7.

Resource plans and commitments are maintained by the line

organization and an appropriate mechanism exists for sharing

4.2

38.3

30.8

19.5

7.2

and resolving resource problems.

8.

One’s contribution and performance in support of project

14.2

34.7

23.4

19.1

8.6

teams is formally recognized in managers’ performance reviews.

9.

Project team members are adequately trained in project

9.6

22.4

26.8

29.1

12.1

management techniques and methods.

10.

Management reviews, audits and evaluations of the project

management system are conducted regularly and actions are

9.8

26.8

21.6

26.2

15.6

taken to improve the system.

Frequency of support

Always

Frequently

Sometimes

Infrequent

Seldom

Strong

Weak

Adequacy of Support

Organizational

Organizational

Support

Support

October 1997

The Results

of a Survey

of

Senior Managers

from

41 Companies



How does

Your

Company

Compare?

5

4

3

2

1

Business Management Consultants

BMC’s

Project

Management

Maturity

Model


An Organizational

Development

Tool

Level 5



Super Project
-
based

Level 4



Project
-
based

Level 3


Responsible

Level 2


Recognition

Level 1



Relaxed

Business Management Consultants

Potential Impact of Performance from Increased Maturity

PMMM report

Business Management Consultants

Thank you

Questions?

Business Management Consultants

Come and Visit

Business Management Consultants

and the

C
entre of
E
xcellence for
P
roject
M
anagement

http://www.bmc
-
online.com

at