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Author: Ilya Bogorad

Planes, Trains and Privacy Blues

Written by Ilya Bogorad on . Posted in Articles. 8 Comments on Planes, Trains and Privacy Blues

I am writing this piece while waiting for boarding at Pearson International, en route to Ottawa. Oh, the glorious life of a consultant!
Another 30 minutes or so before they let us in and the waiting area is filling up. It is an
8 a.m. flight on a Monday and the crowd is predominantly professional. There are certainly a few consultants. A woman in front of me is one of them. She is reviewing notes and often glances at her Blackberry, which has rung twice on my brief watch here. The owner answered both calls, which were both related to her ongoing assignment. By now, I know the name of the client, the nature of the issue at hand, a couple of key names and what the agenda is like for the upcoming few days. I am sure that if we had more time here, I could have told you what the project sponsor’s private life is like.

Two weeks ago, while on a train, I had to listen to someone instigating a conference call in order to “sort things out” at the office. As one of the unwilling listeners to the conversation, I learned the name of the organization, the nature of the problem, the names of the vendors and a few other things that should not be discussed in a company of complete strangers.

Last year, while on a 20-minute ride on a commuter train, I was sitting across from a visibly bewildered and upset foot-soldier consultant from a very large and well-known consulting company (I owe this knowledge to the company’s insignia placed on just about every item this person was carrying). On a phone with a colleague for the duration of my short trip, and hysterical most of the time, she let me and the fellow commuters know the name of the client, why they were an abomination of an organization, why they would “go belly up in the near future”, and, of course, who was the biggest idiot there (albeit lesser idiots were not missed either).

Those of us who travel, encounter such kind of behavior often. There are a couple of problems here. First of all, it is of course a bloody nuisance when you have to hear someone yap while you are trying to read, rest or do some meaningful work. But we all have to attend meetings some time, so this is not the biggest problem.

The real problem is that, while organizations dedicate enormous expense, personnel and other resources to protect their and their clients’ data against unauthorized network access and commercial espionage, their best efforts can be so easily undone by indiscreet remarks in public by a careless employee or vendor.

Just like that, the most complex defenses are undone in a matter of moments.

It is easy to see the ramifications of such sloppiness and the issues it can potentially create, for the client organization, for the person’s employer, for the consulting company whose employees are heard discussing their clients in public.

Despite our best efforts, people remain to be the weakest link.

Hordes of well-paid professionals in legal, IT and other streams of work are employed to develop, implement and enforce security and privacy policies and measures. The real problem is that while organizations dedicate enormous resources to protect their and their clients’ data against unauthorized network access and commercial espionage, their best efforts can be undone by indiscreet remarks by a careless employee or vendor. Just like that, the most complex defenses undone in a matter of moments.

Market Turmoil 2008; Two Lessons Learned

Written by Ilya Bogorad on . Posted in Articles. 3 Comments on Market Turmoil 2008; Two Lessons Learned

I am writing this entry as the US government is feverishly working on measures to prevent the financial system from a collapse. The very same pundits who were yesterday busy predicting the brightest of futures and unstoppable growth of the market, act today as if they have “known all along” and readily dispense new prophecies.
Not a day goes by without another analysis of this mother of all roller coasters and I bet even Playboy will publish one at some point. Not to be outdone, I want to share with you two lessons, which I took away from it.

Test your models

You may or may not know this, but financial institutions employ scores of exceptionally bright people with advanced degrees in math and physics to develop and maintain various financial models. Among those are models for financial risk management, which are very similar if not the same across the financial world and employ a well-developed mathematical apparatus.

These people, referred to as “quants”, are very well compensated. I mean, half a million a year is not uncommon. The question that naturally comes to mind is, ok, with all this mental firepower and the gaggle of people whose very job was to watch the risks, how come we are where we are?

There are a few reasons at play here, including the business and communication skills of the “quants”, the likelihood of their being listened to, and the challenges of admitting mistakes. But the key problem, I think, is that we tend to fall in love with our models.

Whatever model we subscribe to in our decision making, our work, our lives, we must take a stance that models are just approximation of the reality and not the reality itself. In this particular example, people and organizations became married to their risk management models, they held the assumptions that these models are based on, as paramount axioms; they did not allow for the fact that they may be deficient. This is not the first time it has happened, of course, and the spectacular crash of the Long Term Capital Management in 1998 (about $4 billion lost) is still fresh on the minds of many today.

If you are a project management professional, watch out for falling in love with the methodology and approaching each project with a predetermined approach. I often hear consultants say that they have a methodology for something before they know what the problem is and I want to tell their prospect – run for cover!

Be Suspicious of “Star” Performance

As many other industries, the world of finance is prone to this silly admiration of star performance where the person making money is placed above usual controls, and is so high on the pedestal that if he crashes, it will get awfully messy. It is not like the world of finance does not know what often happens. There is Nick Leeson of Barings Bank. Barings is no longer with us, courtesy of Mr. Leesons stardom status, which allowed him to take uncontrolled risks. Close to one billion dollars later, the 200-year-old bank was gone.

There is Robert Citron, a former treasurer of Orange County (I find the play of names rather amusing), who used derivatives to speculate on interest rates. He was successful for a while, so much so that his opponents, who pointed out the risky nature of his undertakings, were squashed by those above and next to Mr. Citron (he was making money!) You guessed it – his luck ran out soon thereafter, and he lost around $1.5 billion, which bankrupted the County.

Be wary of “star players” whether they work for you, alongside you or elsewhere in the organization. When we are constantly told how good we are, we become overconfident. Overconfidence, the “I have seen/done this before” attitude, fueled by the lack of external scrutiny is a sure path to a major blowup.

Don’t let your guard down.

Special announcement: On November 15, 2008, I am running a half-day version of my course on Business Cases and Decision Making as a professional development event for the Project Management Institute. Because the event is sponsored by the PMI, it costs next to nothing to attend. If you are not in the Toronto area, why not come for the event and then spend the rest of the weekend sightseeing!

You do not have to be a project manager to attend. The content of this seminar is suitable for any professional, manager or executive.To learn more and to register, see http://pmi-lakeshore.org/notices/notice_20081115.htm

Now Stop Wasting People

Written by Ilya Bogorad on . Posted in Articles. 9 Comments on Now Stop Wasting People

I am writing this piece in late August, as leaves on one of my maples are starting to turn yellow and red. The tree may be panicking prematurely, fooled by the unusually cool August, but you cannot argue with the calendar. The summer is almost over.

Time is the only critical resource that cannot be replenished or substituted, and we all have only a finite supply of it. In fact, it may be the most precious resource of them all. Yet in business life, don’t you find that too often, you just want to exclaim: “people, stop wasting my time!”

Here are five small and simple habits we all should adopt to respect others’ time.

  1. Out-of-office notices. First of all, thank you for at least setting one up. But listen to this: provide the name of a person who should be contacted if the matter is urgent and provide his or her contact information. Sounds trivial? Approximately half of out-of-office notices I receive lack this information.
  2. Meetings #1. I know of a number of mid-level managers whose calendar is booked tighter than that of a presidential candidate. This is usually due to two reasons, neither of them acceptable: some feel that they have to grace every business meeting with their presence, while others believe that in order to achieve results, every breathing soul should be present in their boardroom. Stop it right now, whichever of the two sins you are committing! Spend time, and allow others to do so, on thinking and implementing.
  3. Meetings #2. Always have a clear agenda for the meeting, don’t just drag people in to “brainstorm” or “be in the loop”. Once the decisions are made, you can apprise the rest of the world of them. On projects, always have a communication plan in place and follow it religiously.
  4. Mode of communication. If you need something urgently, call. However, do not leave voice messages that are 10 minutes long, explaining the issue at hand and all minute details pertaining to it. In the beginning of my career, I worked for an earlier riser. By the time my colleagues and I made it to the office, usually around 8 a.m., our phone sets would be flashing with new messages, each being a long and windy walk through our leader’s thinking process. Some of them ended with something like “Actually, forget it.” Without fail, every single member of the team detested this habit, but why we never said anything is a mystery to me now.
  5. Maintain Focus. Minute, trivial things always get in the way of more important tasks. It takes me 30 minutes to write a short article, like this one, if I focus on the task at hand. It may take a whole day if I choose to take phone calls immediately, reply to emails as soon as my mail application chimes, or browse the Internet. Learn to prioritize, maintain to-do lists and work on things that really matter, now.

I could list another five, ten or fifty time-savings tips, but I would like to practice what I preach and not take precious time from you and me.

From Good to Bloody Excellent

Written by Ilya Bogorad on . Posted in Articles. 4 Comments on From Good to Bloody Excellent

In the last month’s piece, I outlined my vision for a highly successful PMO. The question that no doubt has arisen in the mind of many a PMO leader is: “This is all very nice, but how does one get there?”

Fair comment! As a consultant, I deal with this question often. My clients expect me to not only develop a vision and a strategy, but also to translate them into tangible, actionable items. So, this is what they get.

As a rule, transitioning of a PMO requires executive sponsorship, for at least five reasons:

  • Changes to the PMO model often have structural implications, meaning that people may be hired or let go, reporting lines may change and job responsibilities altered.
  • There are often financial (budgetary) implications.
  • Change management should include communication at appropriate levels. The message often needs to come from upstairs.
  • Left to their own devices, organizations naturally resist change. Executive support is usually necessary to provide for requisite impetus. (There are other ways in which a change may occur. See, for example, Warren Bennis’s Why Leaders Cannot Lead).
  • A successful transition, while providing significant value to the organization, would go unrewarded if it flies below the executive radar.

As a reminder, my vision contained five key factors:

  • Appropriate PMO model
  • Competency
  • Business acumen and business alignment
  • Presence
  • Innovation

Of the five factors, choice of the appropriate PMO model is the one where a generic can potentially be extremely harmful. A careful yet swift analysis is appropriate to determine the most relevant configuration. Usually, there is a choice of options. The confines of this posting do not allow expanding on this topic to the extent it deserves, but a couple of thoughts need to be shared.

First of all, the culture of the organization, its strategy, typical projects and reporting relationships need to be considered. For example, organizations with a high degree of initiative, engaged workforce and a culture of innovation may be good candidates for a decentralized PMO. By that I mean an entity which promotes project management practices across the enterprise, provides portfolio management support and enables project managers through provisioning of tools, techniques, coaching and mentoring.

Second, there is nothing sacrilegious in adopting a multiple PMO model in organizations consisting of business units with unique needs, disparate risk tolerances and unique cultures.

The good news is the rest of the factors in my vision are dependant on development of the business acumen and achieving of business alignment. It drives the development of the core competencies within the PMO in the direction dictated by the needs of the business. It develops the sense of presence by instilling the trust towards the PMO. In turn, trust develops when PMO staff is heard and seen speaking and acting with full understanding and in the best interests of the business. The last point, innovation, flourishes and becomes much more relevant to the business because it is guided by the framework of business needs.

So, how can a PMO leader advance the business acumen of the organization? This must be an expensive proposition!

Here are a few steps that come at no or little cost and help achieve dramatic positive change.

  1. Develop communication skills and promote cross-learning through frequent staff presentations to peers on best practices.
  2. Frequently discuss business environment, priorities, the company’s strategy, recent events and other business topics with your staff. Don’t assume they’re familiar with terms and concepts. Educate, share, and ask for their opinions.
  3. Promote the culture of openness and transparency, and encourage questions about business decisions. In the absence of such culture, people tend to develop their own, often incorrect, interpretation, or just declare the decision “stupid.”
  4. Invite heads or senior staff of other departments to come and speak to PMO staff about their respective functions, the work they are engaged in, current priorities and concerns. Such sessions are very effective in promoting mutual understanding and awareness.
  5. Hire a coach who will work with you and your staff (athletes have them, and so do successful organizations). For a modest investment, you’ll be able to dramatically improve your learning process.
  6. Hold “open door” events and invite the rest of organization to see the PMO from inside. This will promote trust, appreciation, and understanding.
  7. Invite guest experts to speak on a variety of business topics, from how to read financial statements to what marketing is all about. Invite other departments and split the expense.
  8. Adopt the “train the trainer” model: send one person on a course and have him or her teach this same subject internally.
  9. Read good business press relevant to your location and industry, forward to your staff, and instigate insightful discussion.

There is no excuse for not doing this today.

From Good to Bloody Excellent

Written by Ilya Bogorad on . Posted in Articles. 6 Comments on From Good to Bloody Excellent

I recently wrote here about the lack of strategic value in typical project management organizations. Since then, a few inquiries came in, all asking essentially the same question: “What is your vision for a highly valuable PMO and how do we transition there?” I will attempt to answer this question here, since more than a handful people may be interested. In this entry, I’ll describe the vision. Next time, I will offer some ideas on how to get there.

It has been discussed many times over that there is a continuum of choices when it comes to the model and modus operandi of a PMO, ranging from a highly decentralized community of practice to a centralized professional project management team, which tightly controls execution of all projects within the organization. Whatever form it takes, I envision a PMO that represents a prudent investment, not simply a recurring expense. Let me explain.

In the past few years the Project Management Institute has become the envy of many professional organizations, due to the exponential growth of its membership base. This growth, in my view, has occurred for a few reasons:

  • The PMP accreditation provided an “easy” way for hiring managers and especially HR to qualify candidates, and, hence, gained broad acceptance.
  • Most professionals in such industries as engineering, construction or IT, are charged with running projects at some point in their career. The potential membership base is therefore vast.
  • Barriers to entry are incredibly low and rarely enforced.

Such membership growth may appear to be a good thing but, in fact, it is not dissimilar to a common scenario which involves your holding shares of a public company and the company issuing more shares to finance its operating or investment activities. This is called dilution, which decreases the value of the shares you hold. In the case of the PMI, weak entry controls have allowed many individuals with weak management and leadership skills to enter the profession, driving the expectations of employers down. I know a receptionist with no practical project management experience, who has earned a PMP designation. Today, Workopolis is rife with project management job postings which state that the chief requirement for the job is a familiarity with MS Project or some such tool. What happened to leadership, strategic thinking, contracting skills, or people management abilities? Not surprisingly, the average remuneration has also plummeted: I routinely hear seasoned project managers lament about being offered $60,000 per annum full time or $45/hour on contract.

It seems to me (and this is one time I really hope to be wrong) that more and more, the market views the role of project manager as that of a bookkeeper of sorts, a type who prepares project schedules and shuffles papers. When viewed in such terms, a project manager represents an expense, which everyone should look to minimize. And there you have it – it has already happened, as I mentioned already.

The same idea applies to the corporate PMO. Fill it chock-a-block with bookkeepers from project management, albeit with fancy tools and frameworks, and in the shoes of a C-level executive, and I will fail to see much value in it, but rather an expense I have to carry, reluctantly. Organizations with prudent financial management strive to minimize expenses. That’s a hint.

Organizations with prudent financial management also look for worthwhile investments, and your PMO may be positioned to become one. Here is how I envision a highly valuable PMO.

Appropriate Model.

There is no such thing is one size fits all, when it comes to the PMO. This came out loud and clear, at a panel discussion at ProjectWorld 2008. I was one of the three panelists at that session and the large number of participants reconfirmed the panel’s unanimous opinion on this beyond our best hopes. If the model is not right, it won’t work, period. Which one is right for you is impossible for me to tell without knowing a little bit about your organization.

Competency.

The PMO has a decent level of knowledge, well above the level of PMBoK, in such core management disciplines as strategy, people management, finance, marketing, MIS. It maintains and applies excellent knowledge of project management tools and techniques, and an understanding of their advantages and drawbacks, so that the appropriate ones are used every time.

Business Acumen and Alignment.

The PMO shows excellent awareness of the current economic realities, state of the industry, market conditions and current business priorities. It is fully aware of the corporate strategy and structures its activities so that they further the organization’s positions towards strategic goals.

Presence

Armed with leadership skills and business acumen, the PMO is a key contributor when it comes to the formation of project portfolios, making strategic decisions during the execution of projects, and development of project alternatives. The PMO is not afraid to push back and is highly regarded for that.

Innovation

The PMO is always on a lookout for better tools, techniques and practices, based on its experience and the best industry standards. Its business skills make it possible to suggest to the business, projects and approaches that have not been thought of. The PMO incessantly promotes project management skills within the organizations and acts as a “go to” entity for all questions related to it, thus improving the quality of project management across the whole organization. Is it a tall order; too much to ask for? I don’t think so. Moreover, I am convinced that almost any PMO, with professional help, can be made into an “investment grade” entity of considerable value.

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Ilya Bogorad is the Principal of Bizvortex Consulting Group Inc, a management consulting company specializing in IT- business alignment and located in Toronto, Canada. Ilya can be reached at [email protected]