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Tag: PRINCE2

How to Balance Creativity and Project Management Risk in Today’s Economy

Ptimes_sep_29_feature_croppedIn today’s project environment the minefields have grown increasingly more difficult for both the new and seasoned PM to navigate. The economy has cornered project team members into a stifling box of “non-creativity”. The team members equate creativity with risk and that is not seen as a good thing, when there is a chance the risk can turn negative. The PM must fully understand the reason for team members’ reluctance when they are pushed to take chances.

The PM must continuously stress to the project team that acceptance of risks , and managing them correctly, could possibly increase the planned ROI on the project.

The project team faces internal and external risks that they must first understand and then work with the PM to manage. The external risks are relatively self evident. The project must deal with vendors, market conditions, weather and all things that are outside of the business entity where the project is being executed. The internal risks are more sublime and need a seasoned PM at the helm to manage these types of risks. The internal risks can encompass the following types:

  • Internal Resource Issues. This is one of the most common internal risks. The resources that you have either picked or have been assigned can quit, become sick or just decide they do not believe in the project and intentionally of un-intentionally reduce their productivity. This reduction in effort directly correlates to the loss of creativity.
  • Internal Politics. This risk is the one where the novice PM has the most difficulty with in the execution of the project. In today’s economy, with current downsizing and double digit unemployment, people are sharpening the“knifes and do not hesitate to use them when the times get tough. The politics played will directly impact all team members due to the fact that a team member now needs to think how someone will react if politics is in play.
  • The “Head in the Sand Mentality.” This is the one where the PM can quickly do something about to ensure it is mitigated. In most environments senior management is knowledgeable in risk but in most cases is not well schooled in the intricacies of project risk. This lack of subject matter expertise ultimately trickles down to the everyday project staff. The staff sees senior management not taking risk so they follow it and creativity takes the hit.
  • The “Misc” bucket. This is the catch-all bucket where the PM has to deal with internal styles of senior management, general sales issues that are impacting profitability, rumors, and general ebb and flow of the business.

 The PM needs a suitable action plan to anticipate this risks and also deal with the other risk areas mentioned above.

 PM Risk Action Plan

  1. The PM needs to be fully accepting of being not only a project manager but a risk manager. There are too many seasoned PMs that not do not understand risk but even when they do they only utter the risks with the lights out!
  2. The PM needs to discuss openly with senior management the construction and implementation of the risk management plan. The senior management needs to be assured that risk spots are being identified, managed and closed aggressively. There needs to be some level of agreement that the team will take on risks to increase ROI and these risks will be monitored and reported. This senior management compliance then needs to be communicated to the whole team that risk, although a four letter word, is not something to be totally feared
  3. The PM then needs to educate the team, the whole team, on risk. They need to use qualitative methods to identify, capture, manage and report risk. The idea of ” what I do not know is what scares me” is very true here. The team members will slowly unleash the non-creative chains once they realize they have seen a risk trigger or are in a risk area. The knowledge is power rule then overtakes the risk adverse team member.
  4. The risk register that was formulated in the identifying risk exercises needs to be reviewed at each team meeting. The team should actually celebrate a risk encounter and the successful navigation out of the mind field. Once people see this happen they will internally calculate that being more creative is a good thing.
  5. The PM then needs to wrap in the results of the risk register to the lessons learned and ensure it is presented to all team members and stakeholders.

There are obviously extenuating circumstances with each project when dealing with risk The key environmental variable is that you must assess the risk culture before you start the project, continue to assess once the project is being executed and reinforce the results at all levels at the end of the project.

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Jim Hannon has over fifteen years of diversified experience in the Information Technology and Financial Services Industries, functioning primarily as a Senior Project Manager/Lead Business Analyst/Program Manager with proven experience in trading systems and numerous financial applications domestically and globally.

Jim currently holds his MBA, PMP, PM-RMP and is certified in Prince 2 fundamentals. Jim is planning on sitting for the PgMP and PM-SP in the next 6 months.  He also teaches Project Management at Boston University and Excelsior College and created the PM program at Excelsior. Jim is also a Senior Professor at Cambridge College.

Jim also has a consulting firm The Bentley Group, which offers PM and Business Analysis services.

Princely Support for Project Managers

Getting projects right in tough times gives an organization an immediate advantage. The current economic climate puts every aspect of the organization under the microscope: return on investment, day-to-day operations and staff skills – they all get the spotlight treatment. How you manage your operations becomes more and more important and will determine how you come through the tough times.

 

 

Project management, and the ability to balance change with business as usual, is a key differentiator. Your project management ethos shows how you go about your business. An organization with mature project management systems will deliver consistently on time and within budget. Using a tried and tested methodology to deliver projects is the difference between theory and practice. And one project management methodology stands out: PRINCE2.

In the UK and Europe, PRINCE2 is the project management methodology of choice. On the western side of the Atlantic, PMI’s Project Management Professional (PMP) certification is more widespread. However, in global terms there is not much in it. There are around 400,000 qualified PRINCE2 project managers and 385,000 Project Management Professionals (PMPs).

What is not always understood is that PRINCE2 is completely complementary to the PMBOK. The PMBOK is what the project manager (PM) should know – a descriptive body of knowledge. PRINCE2 is the methodology – it is, step by step, what the PM should do; it is prescriptive. More and more managers in the US and Canada are acknowledging that PRINCE2 has a role beside the PMBOK.

In future articles, I’m going to look at this growing phenomenon. I’ll explain what makes PRINCE2 such an essential tool for project managers – how it works and what makes it special. It won’t all be theory – I have real life examples of PRINCE2 at work in Canada and the United States and insight from PMI PMPs who use PRINCE2.

Richard Tucker PMP, PRINCE2, a senior US project manager with experience in the US Federal Government and Fortune 500 companies agrees about the PMI-PRINCE2 fit and adds that PRINCE2 can, in fact, reduce experimentation in the project management equation and ultimately direct a project team to success. “Where PMBOK is the ingredients, PRINCE2 is the recipe. They work together well,” says Richard, who is Director of Client Services at ICOR Partners in Arlington, VA.

From its beginnings in 1989 as the UK Government standard for IT project management, PRINCE2 has rapidly spread its wings and, since it was released as a generic project management method in 1996, its popularity has grown.

PRINCE2 is a structured methodology suitable for the management of all types of projects. It provides organizations with a repeatable methodology and a common language and document set.

In order to describe what a project should do, PRINCE2 has a series of Processes which cover all the activities needed on a project from start to finish and to provide clear, step by step, direction. PRINCE2’s processes are complemented by several Themes, such as Risk and Quality, which provide the building blocks of the project, along with clear Principles which empower the project team to deliver using concepts which have stood the test of time.

In the UK, PRINCE2 has been widely adopted and adapted by both public and private sectors. It is well established in most sectors where it is frequently required by buyers in their RFPs. Elsewhere PRINCE2 is growing strongly with hotspots in Europe, Africa and North America.

In this global village, how often does our business have an international dimension? It’s an ideal time to take advantage of the shrinking world and look at how these two traditions can work together.

My colleague Alvin Gardiner, an award winning PRINCE2 Practitioner, Trainer and Registered Consultant who was on the Scoping and Review Group for the latest refresh of PRINCE2, is just back from doing consultancy in Canada. He sees PRINCE2 and the PMBOK as sitting together comfortably, having much in common, but with gaps in both, as he explains: “PMI talks about methodology but doesn’t actually define a methodology and so PRINCE2 actually gives you the method around which you can hang the characteristics of PMBOK.”

He adds: “A seasoned PMI-trained project manager usually sees PRINCE2 as a useful step forward. It gives them the method that they can then use to help them deliver with the PMBOK approach.”

In particular, two things stand out from the PRINCE2 methodology which can really help PMPs deliver their projects better. The Business Case and Product Based Planning are unique to PRINCE2. And they can be the key to the success of a project. As Alvin says: “If you don’t have a Business Case, you don’t have a project. Product Based Planning gives you a clear understanding of the scope and terminology for your project, so you focus on how you are going to deliver your end product.”

We will come back to these key features in more detail in the future.  Next time, however, we will discuss why – and how – PRINCE2 works for North American project managers.

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Paul Atkin is a leading authority on the PRINCE2 project management methodology. He combines over 20 years of hands-on project management experience with a unique insight from personally training more than 900 PRINCE2 students. This gives him a deep – and intuitive – understanding of PRINCE2. As Founder and Chief Executive of Advantage Learning www.advantagelearning.co.uk Paul has harnessed his enthusiasm to gather a talented team of PRINCE2 consultants and trainers who deliver official training on four continents. Paul can be reached on +44 (0) 131 668 2445 or [email protected].

Looking for a Project Management Methodology? Take a Look at PRINCE2.

LookingForAProject1For folks looking for a project management approach that successfully navigates them through the project life cycle while focusing on the project manager’s role in delivering a successful project, let me recommend PRINCE2. PRINCE2 (Projects in  Controlled Environments) is a structured, non-proprietary project management method. It is a generic, widely accepted approach to managing projects which can be applied to any project regardless of project size or type. 

Based upon proven principles, PRINCE2 isolates the project management aspects of the project work from the technical (or specialist) aspects of the project work.  This enables organizations and individuals to integrate the PRINCE2 method with their particular types of projects to build a flexible framework for successfully performing project work. PRINCE2 focuses on controlling the six key variables found on any project: costs, timescales, quality, scope, risk and benefits. This control is achieved across the project life cycle using an integrated framework of elements for successful project management: principles, themes, processes and tailoring the method to the project environment. 

In my opinion, PRINCE2 offers the best project management “road map” for getting a project through a successful and controlled start, middle and end.  There are five reasons why I think PRINCE2 is the best project management road map.

Reason 1.

PRINCE2 is based on a set of common-sense principles.  In order to say that you are working on a PRINCE2 project, all seven principles must be applied in that project. These principles driving why and how we manage this project are:

  1. Continued Business Justification:  This means that there is a justifiable reason to start a project, that this reason remains valid throughout the life of the project and the justification is documented and approved.   In PRINCE2, this justification is documented in the Business Case, driving decision-making and ensuring the project stays aligned to business objectives and benefits. 
  2. Learn from Experience: PRINCE2 project teams are expected to learn from previous experience.  Lessons learned are sought, recorded and acted upon throughout the project life cycle.  Lessons are also applied from previous projects in order to learn from others and improve the way projects are done.  In PRINCE2, these lessons are documented in the Lessons Log and become the contents of the Lessons Report created by the Project Manager at the end of each stage and at the end of the overall project.  
  3. Defined Roles and Responsibilities: PRINCE2 projects have defined and agreed-upon roles and responsibilities that engage all aspects of the involved internal or external organizations: business, user and supplier.  All three stakeholder interests must be represented on the project management team in order to be successful.  The project management team structure and roles must be defined to answer the question for everyone: “What is expected of me?”
  4. Manage by Stages: PRINCE2 projects are planned in management stages that create control points throughout the project. This approach allows projects to be monitored and controlled on a stage-by-stage basis.  At the end of each management stage, the project is reviewed to see if it will still deliver its Business Case.  This is done using two levels of plans and a ‘rolling wave’ approach to planning with an overall Project Plan and a detailed Stage Plan for the current stage, where work is being performed.
  5. Manage by Exception: PRINCE2 projects define tolerances for time, cost, quality, scope, risk and benefits, to establish limits of delegated authority across the levels of management.  This allows clearly defined accountability and decision-making, and implements the concept of “management by exception”.   If these tolerances are exceeded or forecast to be exceeded, they must be escalated to the next level of management for a decision on how to proceed.
  6. Focus on Products: PRINCE2 targets defining and delivering products that meet their stated quality criteria.  This includes the final product of the project as well as other significant management and specialist products produced across the project life cycle. This “output oriented” approach to projects results in defining a set of agreed-upon products and then planning the work to accomplish them.    .
  7. Tailor to Suit the Project Environment: PRINCE2 should be tailored to work for the project’s environment, size, complexity, importance, capabilities and risks.  When tailoring the PRINCE2 method, it is important not to omit any elements since they are designed as a web of interlinked parts.  The goal is to adapt the method for your organization and environment and avoid creating a ‘template-driven’ project management method where everything is done fully without question. 

Reason 2.

PRINCE2 defines the seven critical aspects of project management that must be successfully juggled throughout any project.  Each theme focuses on a key part of the project management discipline.  Defining and managing all themes across the project life cycle is critical to achieving a successful project outcome.   The themes being juggled and addressed across the project life cycle are:

  1. Business Case.  Created at the start of a project and updated and maintained throughout the project life cycle, the Business Case justifies initial and continuing investment in a project and drives all decision making for the project.  It allows the PRINCE2 project management team to judge if a project is desirable, viable and achievable at any point in time.  
  2. Organization. This theme defines and establishes project roles and responsibilities for a PRINCE2 project.  It clearly addresses the three project interests: business, user and supplier.  The levels of management in the project are defined across four levels: Corporate or Program Management, the Project Board, the Project Manager and the Team Managers.
  3. 3.    Quality. The focus is on ensuring that the project’s products are fit for purpose.  The approach, defined in the project’s Quality Management Strategy, requires that there be an explicit understanding of project scope and the quality criteria against which the products will be assessed.  In other words, the focus of quality is on each product’s ability to meet its requirements. 
  4. Plans. Plans facilitate effective communication and control and define how, where and by whom the project’s products will be delivered.  They are aligned with the Business Case and require both approval and commitment from all levels of the project management team.  There are three levels of plan in a PRINCE2 project: Project Plan, Stage Plan and optional Team Plans.  
  5. Risk. Risks are looked at relative to the project’s objectives.  These risks are uncertainties, and can be either threats (negative risks) or opportunities (positive risks). Risk management targets the proactive identification, assessment and control of project risks in order to improve the chances of success.   The strategy for approaching risk management in a project is defined in the project’s Risk Management Strategy.
  6. Change. This theme encompasses configuration management, issue management and change control.   Project controls are established and maintained throughout the project to address these three areas.  Configuration management creates, maintains and controls the configuration throughout the life of a product.  Issues are any event that has happened on a PRINCE2 project that was not planned and requires management action.  
  7. Progress. Progress refers to the mechanisms used to monitor and compare the actual project progress and performance against the planned values.   These mechanisms also allow the Project Manager to proactively forecast future performance based upon current trends relative to project objectives and make decisions to address potential variations. 

Reason 3.

PRINCE2 uses processes to define a road map with activities allowing the project manager to direct, manage and deliver a successful project outcome.  Processes provide the project manager and the project team with a step-wise progression through the project life cycle from a controlled start through a controlled middle and on to a controlled end.   Each process comes complete with recommended activities, products and the related responsibilities for “who does what when”. The processes driving the PRINCE2 road map are:

  1. Starting Up a Project (SU). The SU process answers the question: “Do we have a viable and worthwhile project?”  This process ensures that all prerequisites are in place in order to make an informed decision about commencing a project.  The pre-project activities found in this process are not intended to be lengthy or time-consuming. 
  2. Initiating a Project (IP).  The IP process establishes a firm foundation for achieving a successful project.  The Initiation Stage allows the Project Manager to create a suite of management products that control, define and plan the scope of work required to deliver the project’s products.   This process allows the Project Board to take the provided information and decide if the project is sufficiently aligned with corporate or programme objectives to authorize its continuation.
  3. Directing a Project (DP). The DP process is active throughout the project life cycle, enabling the project board to make key decisions and exercise overall project control.  The Project Board manages by exception, monitoring via reports and controls through a small number of decision points and providing direction and guidance to the Project Manager.      
  4. Controlling a Stage (CS). The CS process drives the project manager’s “day job” activities when they are managing, monitoring and controlling project work.  The activities focus on three areas as the products for a management stage are being delivered: (1) authorizing the work to be done, (2) monitoring, reviewing and reporting stage status and (3) dealing with project issues and risks, and taking corrective action.  
  5. Managing Stage Boundaries (SB). The SB process allows the Project Manager to provide the Project Board with sufficient information so they can review the success of the current stage and make key decisions at or near the end of each management stage of the project.  
  6. Managing Product Delivery (MP). The MP process controls the link between the Project Manager and the Team Managers by placing formal requirements on accepting, executing and delivering project work.   This process ensures that the team is working on products that are authorized and agreed upon.  These products must be clearly specified, understood and delivered to expectations and within tolerance.  
  7. Closing a Project (CP). The CP process provides an orderly end to a project, recognizing that the objectives in the PID have been achieved.   When the project successfully completes, user acceptance of the project’s products are confirmed, project performance is evaluated and benefits achieved to date are assessed.   Activities in this process may also be performed when a project has been prematurely terminated for some reason.

Reason 4.

PRINCE2 clearly defines specific project management roles and responsibilities.  All projects require an organizational structure that enables effective project governance and decision making.  This is done by defining responsibilities for directing, managing, and delivering the project along with clear accountability for each level of management.  In PRINCE2, a role is an associated set of responsibilities, not necessarily a job title. There are four levels of management in a PRINCE project management structure: Corporate or program management (not part of the project management team), the Project Board (directing and guiding), the Project Manager (managing day-to-day) and the Team Managers (delivering the specialist products).   In PRINCE2, the project management team is a temporary structure for successfully managing the project from start to finish.

Reason 5.

PRINCE2 stays out of the weeds. The PRINCE2 method is generally light on the detailed tools and techniques we use for managing people and projects, so many of those need to come from elsewhere.   For instance, PRINCE2 does not address detailed planning and control techniques that organizations may want to use, such as critical path or earned value analysis.    Leadership, motivational and other interpersonal skills are also not specified in the method. Organizations will need to define and add these “nuts and bolts” aspects of managing projects into their project management approach.  The good news is that there are numerous sources for this information, and it is quite simple to add them in.   

A copy of the PRINCE2 method is required reference material in any project manager’s bookshelf!  The method is documented in the OGC publication Managing Successful Projects with PRINCE2” which is officially published by TSO

I have implemented several customized PRINCE2-based project management methodologies for numerous clients over the past five years.  All of these methods are still being used, and they are quite healthy, improving over time and working very well.  PRINCE2 focuses on information and decisions rather than on documents and meetings!  I believe that a PRINCE2 road map tailored to address the way you do business is an excellent step towards a practical project management method focused on achieving consistent and successful project outcomes.

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Susan Weese is a PRINCE2 assessor for the APMG based in Colorado.  She is also a consultant, curriculum designer and master instructor specializing in project management and requirements development process definition, deployment, implementation and validation.  Susan founded Colorado-based Rhyming Planet Inc. to motivate, lead and enable technical and business professionals to accomplish focused project and program goals.  She can be reached at [email protected].

First Resident Canadian PRINCE2 Trainer

Toronto – In March 2009, Julie Grabb B. Math, PMP, P2RP became the first resident Canadian to become a PRINCE2® certified trainer.  “After teaching for the Masters Certificate in Project Management program across Canada for five years, I felt I needed to find out what else was going on in the project management world. PRINCE2 seemed to be the natural next step. I was pleasantly surprised to see that many of the best practices that I had been using as examples in my training were actually documented in the processes of PRINCE2, “Julie remarks. She continues “PRINCE2 documents all the detailed how to’s that supplement the knowledge areas of the PMBOK”

 

PRINCE2 is a process-based approach to project management, providing an easily tailored and scalable project management methodology for the management of all types of projects. The method is the de-facto standard for project management in the UK and is practiced worldwide.  Early adaptors of PRINCE2 in Canada include Manitoba eHealth at the Winnipeg Regional Health Authority and the CIO branch of Environment Canada.

 “Until this spring, we had to use PRINCE2 trainers from the UK. They know PRINCE2 exceptionally well but they could not always relate to the prior PMBOK knowledge of our participants.” Says Elaine Gutmacher, Director, Operations. Schulich Executive Education Centre.  “Julie’s background as a PMP and practical experience in both the private and public sectors is invaluable to our PRINCE2 training programs.”

Schulich Executive Education Centre has partnered with Advantage Learning in the UK. Advantage is a specialist PRINCE2 Accredited Training Organization. Paul Atkin, President of Advantage Learning says “Advantage Learning ran the first PRINCE2 classes in Canada in 2007.  We know from our experience that PRINCE2 achieves strong project control and a clear focus on the organization’s business case.  We are proud to have trained Julie Grabb as Canada’s first PRINCE2 Approved Trainer.”

Julie will be teaching PRINCE2 classes this fall in Victoria BC (Sept 14-18), Toronto ON (Oct 5-9) and in Winnipeg MB (Oct 19-23).