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Tag: Strategic & Business Management

Launching a Project? That Means You’re Launching Performance

Many capital projects, particularly in the infrastructure space, tend to start with some launch session billed as a partnering session.

It becomes an accepted standard practice, and that could be a problem.

When a project launch session is a box to check or a rote and familiar exercise, it probably isn’t adding all the value it could – not by a long shot. If you do not have very high expectations about how your project launch will impact your execution, you will likely have a launch session where people go through the motions so they can “get on with it” into the project work.

Jumping in this way, without a powerful initial alignment among all the key players, can have its consequences. In fact, in almost every struggling project, joint venture, or alliance my colleagues and I are brought into, we find ourselves rewinding the project team’s focus back to the beginning of the venture to sort out the issues and prejudices that weren’t sufficiently addressed at the start.

What kind of launch sessions have you been having? If they seem like business as usual, they probably are, and that will not add a lot or increase your chances for success. However, you can make the shift from moderately valuable launch efforts – which may not have a sustained impact – to highly powerful launch efforts with sustained impact into high performance. A strong launch effort is like any foundation you lay: the stronger the foundation, the more solid the structure.

A project launch that leads to high performance demands rigorous thinking and conversation. It is not about saying the “right thing;” it is about addressing the right things and having the real conversation up front. The top leaders of a partnership must align on what they’re aiming to accomplish on the project and how they will do it. That alignment begins with a clarity of vision for success where everyone wins.

Then you must answer the question: For everyone on the project to win, what will that require? It is fundamental and critical that people are strongly aligned on the answer to that question. Without this alignment, there is no high performance.

Identify Undisclosed Perceptions, Then Set Commitments

However, as important as this collective alignment may be – and as much as people may agree on this in theory – in reality, it is far easier said than done. So what gets in the way? I cannot emphasize this enough: Perception and interpretation win over reality every time regarding determining people’s actions and behaviors. All people (and project team members are part of “all people”) will behave consistently with their perceptions about the people they are working for and with, and about the prospects for the project they are working on. Moreover, these perceptions determine how people will act – very often remain unspoken. That is a problem because these undisclosed perceptions end up determining much of the project’s performance.

It is not uncommon to see a project get started with project team members withholding information important to project execution, posturing to put “a good face” on matters, and people operating from past-based fixed points of view about other key stakeholders. All of these things lead to a weakened project launch.

If you want a powerful start to your project, it is important to identify the mindsets, opinions, and prejudices that may be in the way of the project delivering high performance, and constructively challenge those mindsets, opinions, and prejudices. This type of authentic discussion about the concerns and interests of all the players creates an environment in which senior leaders can agree to a very clear set of commitments.

For example, my colleagues were called in to support a high-stakes oil and gas joint venture that was in danger of not meeting first-phase deadlines for engineering and construction plans – which meant a risk of the project not moving forward at all and millions in investment being lost. It did not take many conversations with the two lead partners to learn that they held conflicting perspectives about the all-important project schedule that were getting in the way. People on one side of the venture were making assumptions that the other side had built in “cushion” which made for unnecessarily tight deadlines, and the people on the other side were blaming their counterparts for not being responsive to requests to commit to those deadlines.

We helped this project team get those privately held perceptions on the table, where they could be challenged. That spirit of open challenge prompted people to consider other more constructive ways of seeing each other and the project’s future direction. With that change in perception among the team, the project soon turned around. It went from behind-schedule to early approval for construction; from low levels of communication to regular, candid updates about was working and what wasn’t; from siloed work channels to a strong, collective effort to rescue the project.

Create an Environment for Straight Talk

In the turnaround, I just described, once the people at the top understood the dynamic at play, they were able to create an environment for “straight talk” that established a new way of working across the enterprise. From senior leadership to the rank and file, people were equipped to effectively address issues as needed, and steer the project from a place of jeopardy to one of unprecedented success.

All of this happened because senior leaders began to operate in a new way driven by authentic commitments – along with straightforward updates on those commitments, and interventions as necessary to deal with what’s not working. In their new way of working, the straight talk was welcomed, respected and encouraged. It is inevitable that there will be problems, but it is never a given that those problems will be handled effectively. If during the launch phase of a project you develop a common language for talking with candor about what’s happening, your odds of reliably and successfully intervening increase dramatically.

Essential to this work is establishing a no-blame culture, with clear accountabilities and a work environment where the truth is told about what is and isn’t getting done – at all junctures of the project. In doing this work, have people adopt a rigorous relationship to their word so that commitments are clear and honored; this is key to high performance.

My colleagues worked with the leaders of an alliance building a $600 million highway bypass in Australia. There was a nearly impossible schedule to keep with a myriad of environmental and safety concerns, and none of the key players had ever worked in this kind of partnership before. While observers predicted failure, the leaders engaged my firm to help them build the groundwork for a project that would defy the odds. The project ultimately came in under budget and ahead of schedule, with award-winning quality results.

What happened to allow that performance? We helped the stakeholders to agree on a common language for leading and managing the project. In this launch stage work, they set the ground rules for everything from how concerns would be communicated to how leaders throughout the venture would promote an environment focused on results and accountability, not who might be blamed if something did not go right. It called for an investment of time and energy up front, then resulted in a return on that investment in the form of high performance that set a new bar for the region and the industry.

Build Out a Roadmap, So People See the Way

The launch work is not done until people can see the path beyond the launch. It is important to build out a roadmap for reaching your desired extraordinary goals that will in turn call for high performance. This roadmap lays out some key markers on the path to long-term targets; those markers represent key milestones and interim wins that help establish the pattern and rhythm of high performance.

The roadmap has the most power when people can connect what’s in it to what’s important to them and the broader venture. You can do this through a strategic cascade of commitments that draws a line of sight from the project’s highest level goals and strategic priorities to the actions of individuals and teams. When people have that line of sight, it can be the thing that keeps them motivated later – even inspired – especially when everything is not going perfectly, and the inevitable unexpected obstacles have to be addressed.

Finally, the roadmap will be most useful when it is integrated into your traditional project plan and planning tools. In that way, this powerfully integrated project plan includes all of the usual stage-gated technical activities, plus it also includes the project’s more aspirational goals and key milestones drawn through the strategic cascade of commitments.

Focus Intensely on Inclusion, Rigor, and Ownership

  • More inclusive is more effective. The more stakeholders you can involve in the formative stage of a project, the more buy-in they will have for what the project team creates and the more they will contribute. Conversely, if people perceive they have been left out of the process, the likelihood of eliciting a high performance from them is low.
  • People’s commitments matter. At this early stage in a project, it is important to bring the intense focus to commitments and for people to adopt a rigorous relationship to their word so that commitments are clear and can be managed effectively. This offers a vital focal point for the early days of the work – when there may be no immediate visible results – and is essential to high performance.
  • Owning just your part is not good enough. The most impressive capital project successes my colleagues and I have seen consistently demonstrated a sense of collective accountability for the results. There has been a real sense of “us” – something to which everyone is contributing. As capital projects become more and more complex, it is critical for all groups to take ownership of the whole venture.

Again, this is about a real experience versus a check-the-box exercise. It has been our extensive, repeated experience that the quality of the alignment and momentum that comes out of a candid, thoughtful partnering session are orders of magnitude more powerful than when people are simply going through the motions.

My colleagues and I were recently brought in to conduct a partnering session for a North American infrastructure project. In the midst of implementing the steps I have described here, there was a moment when the people in the room were clearly struck by the nature of the conversation. They said that while the agenda was similar to those of countless partnering sessions they had had before, it was a distinctly original experience for them.

Why? They said: “Because we’re having a real conversation, The kind of conversation we never have. We are not saying what we think the other group wants to hear. We are saying what we think.” These are seasoned, well-credentialed professionals, but it was clear that they were not accustomed to having the perceptions and interpretations in the background being brought into the foreground – in a safe way where they could deal with them constructively. These project veterans were shocked because they had never had such an experience.

Was that the moment that made the difference? It was when we asked them to consider the radical idea of telling the truth rather than posturing to protect or defend their position.

If you have ever been involved in a powerful launch effort that initiates high performance, you do not soon forget it. It should not be so rare, and it does not have to be. We have seen it happen, and how it results in far less time, energy, and money spent on repairing and retooling down the road. It starts with leadership willing to put themselves on the line from the start, and stand for a project that deserves the best launch – and performance – possible.

Business Intelligence Is About More Than Just Reporting

Solving business problems using insight is nothing new. Data shapes the way we see the world and using it to make effective and efficient business decisions is only logical.

However, many people are still under the misguided perception that business intelligence is just a fancy way of talking about analytics reporting.

Business intelligence and business analytics professionals have been arguing their case now for a long time. While some people still associate them only with numbers and spreadsheets – at the end of the day, they need to be able to turn information into something actionable.

That said, we’ve got nothing against the powerful spreadsheet.

It’s about creating good processes

No matter how pretty your dashboard of data looks, it’s meaningless if it’s not actionable. One of the most important facets of business intelligence is creating meaningful, actionable insights for businesses to use.

Some common uses for business intelligence include accelerating and improving business decision making, increasing efficiency and optimizing internal processes. By including business intelligence as part of a company’s internal processes, decisions are better informed. More than just reporting on how productive teams are or where cash flow is coming from, it’s about understanding how a business is run and providing actionable insights on how to run it better.

It’s about driving new opportunities

Business intelligence data comes in all forms. It can be real-time or historical. Ultimately, it’s there to answer any questions your team may have to drive a business forwards. This could include identifying new revenue streams, identifying market trends as they happen, or using past insights to decide the best way to move forward.

Talented business information professionals recognize the vast amounts of data they possess as having untold potential. By understanding business goals, they’re able to make clever, informed and innovative decisions for the future.

It’s about solving problems

One way to look at business intelligence is the nervous system of an organization. It senses everything and reports back. By delving deep into the insights provided by business intelligence data, it’s possible to spot business problems that need to be addressed quickly. Plus, business intelligence can even provide the intelligent insights necessarily to create an action plan for addressing any problems – current or future.

In today’s world, we always should always plan ahead. Business intelligence gives us the insights we need to both predict the future, and plan for it. Whether that’s managing the impacts of tomorrow’s weather, overseas markets, climate change or seasonal trends.

It’s about better communication

One of the most important components of business intelligence is being able to communicate findings in a way that’s effective and actionable. Business intelligence programs have been designed to clearly communicate data in a way that’s meaningful to people – not just a spreadsheet of numbers.

Yes, reporting is an important part of business intelligence. But it’s not all cut and dried. Business intelligence helps provide actionable and agile solutions to business problems. That requires collecting and interpreting a lot of information – more than most people know what to do with. That’s why finding clever, innovative and accessible ways of communicating the right information at the right time is so integral to business intelligence.

It’s about good ethics

Paying attention to ethics is good business especially in the era of the social enterprise and conscientious consumer. Not only can business intelligence provide insights for unexplored ethical avenues, but it also helps businesses find proactive ways to improve their conduct as an organization. This could be anything from improving supply chain and logistics management to finding new and improved processes for managing human resources.

Plus, in today’s rapidly growing and changing world, business intelligence is at the forefront of modern ethics exploration. Some current ethical concerns facing business intelligence specialists include data security, integrity, and privacy. Business intelligence analytics even has the potential to detect negligence and fraud. It’s an exciting new frontier for modern ethics exploration and something to keep your eye on.

It’s about people

When push comes to shove, people are what matter. Business intelligence can give you insights into how to better manage your team and provide a better, more stable working environment. From reducing employee churn to making employees’ lives easier and more productive, data should ultimately be used to benefit the people. People are the most valuable resources most businesses have and knowing how to treat them better is crucial.

Legacy Systems: To Replace or to Not That is the Question

Time is the ultimate luxury in business. Yet, several businesses, including market leaders, are taking time mulling over when to replace their IT applications.

There are obvious and not-so-obvious reasons for switching over to cutting edge IT solutions. But with all the good things of new technology, the scale of change and the temporary disruption that it might bring during the transition, along with the cost and the toll it takes on the organization and its resources can be equally big. This article examines reasons why organizations withhold plans for replacing their IT solutions, why they must replace, and when it is the right time to change.

Why the dilemma?

“What is the definition of a legacy system? One that works!” said somebody in satire. That might be the reason why managers face a dilemma about replacing them: it still works. But there’s more to it. Legacy systems have come a long way to entrench themselves almost inextricably in organizations, making managers and investors equally perplexed as to whether and when to replace them. Here’s how:

24/7 Availability

IT systems have become the backbone of businesses. They need to be up and running, constantly. Even a glitch for a day could cost a fortune. If that sounds exaggeration, you might want to read Comair’s story where the failure of their legacy system for one day resulted in a loss of $ 20 million. No wonder, even the idea of replacing the systems might send shivers.

The Black-Box

It’s not uncommon to have black-box type systems: they work wonders, but few understand how, if not nobody. Those few geeks who coded the system or had clues about it might have left long ago, and the documentation might have vanished, too. Things become worse when these black-boxes are mission-critical applications.

It’s tempting to patch up and keep going just a little longer: web services, middleware, mid-tier platforms, virtualization can alleviate several problems and put a modern face on the ancient systems to show off to the customers; all at an attractive cost and much lower a risk – something that would entice any manager.

A lot is on the line: more often than not replacing mission-critical applications is like an organ transplant surgery. Business continuity, reputation, profitability and a lot more is at risk during the transition along with other unexpected project delays, glitches and gray areas that compound the risk and uncertainties.

It’s not just about the system: as they say it, troubles never come alone. Replacing the system is often synonymous with process re-engineering, restructuring, massive training programs, and new skill are all on top of the responsibility of keeping the show going on as usual.

To sum up, it’s the comfort of maintaining the status quo, the stakes involved in the change, the scale of change, and the cost that make the leaders want to live yet another day with the legacy systems; after all, it still works.

Why replace?

Here are some reasons why we don’t replace legacy applications:

Self-Imposed Prison

Business paradigms have transformed and are shifting ceaselessly but adapting legacy systems to new era can be no less than a nightmare. The lack of skills in those dying technologies, the costs involved, and the limitations on the capability of bygone-era-systems prove to shackle managers every time they think of new products or processes. Even the giant players in the market can be seen trapped in the systems that once made them leaders; shackled; they watch agile and innovative startups nibbling away their market share.

Systems Get Outgrown

Just like office buildings, structures, policies. The problem is that most people can’t see that coming. It is easy to notice that the manpower will outgrow office building when the company is expanding, but who pays attention to the systems? Often there are restrictions on the volume of data and processing capacity of old systems. Unknown to nearly everyone, these limitations can be time-bombs waiting to explode during the period of extensive growth.

The Elephant in the Room

In every sense of the phrase. Over the years, the systems evolve to the extent that they lose their agility, require tremendous resources for upkeep, and become more of an obstacle; just like an elephant. And what about the security vulnerabilities? We better recap the meaning of the phrase ‘the elephant in the room’: an obvious problem or risk no one wants to discuss…

They Don’t Like to Communicate

In a bid to stay ahead and stay alive, organizations have to go with newer systems. But when it comes to integration, the old and the new don’t communicate so easily. At times, legacy enthusiast vendors might devote time and provide ‘glue’ code to make them talk easily with newer systems. But you might not be that lucky always.

Nothing Lasts Forever

Those who know the legacy technology might well be grandfathers already. The legacy service providers are already struggling to justify whether they should continue supporting and if yes, how long. On the other hand, young entrepreneurs are disrupting the marketplace with novel concepts. The day when your system might not be supported, or when market factors necessitate to retire them, might well be tomorrow.

As Bill Gates once said, “Business will change in the next ten years more than it has changed in the last fifty years.” Change isn’t just fast, and it will be even faster tomorrow. Replace we must, but the trick is to know when!

When to replace?

Business is a game of value: delivering value to the customers and deriving a value for the investors. Above the value comes the strategy for sustained long-term value. Whether to replace the legacy system or to carry on depends on two factors: its impact on value and its compatibility with strategy. By now you might have realized that there’s no rule of thumb for replacement, but you ought to consider it seriously in some situations.

When It Stops Evolving

When Lehman gave laws of software evolution, he foresaw it back in 1974 that software – just like managers – must continually evolve and develop new capabilities or else face obsoletion. Lehman said that it becomes lesser and lesser satisfactory, but you know that when the software stops evolving, so does the underlying business to a great extent. Now, considering the tech and market revolution of our times, lack of evolution is an assured way to extinction. Look for the signs of a slowdown in the ecosystem that supports your software. The moment you see the loss of expertise, reluctance and delays in support, maintenance and change requests for your system. Better start planning for the replacement.

When It Starts Decaying

Yes, they do. It’s a result of aging and evolution. Over the years a legacy system will gain a lot of orphaned, duplicate, redundant, and less than optimal source-code. You may wonder ‘why?’ Better ask HR department how many developers, analysts, and architects came and went. Better yet ask IT department what were standards of documentation back then. The legacy systems invariably grow fat with broken architecture in it, popularly known as ‘software rot.’ This is the point of no return. Unfortunately, from here any action (or inaction) to improve the system will lead to disasters. Get more inspiration from Royal Bank of Scotland’s story, where they faced multi-million dollar public fiascos due to their rotting system’s meltdowns.

When It Has a Huge Technical Debt

If you haven’t upgraded to version X yet, the costs and risk for upgrading to x+1 would be even higher. Successive upgrades not implemented are a kind of technical debt. And, the bigger this debt, the larger the stakes. At a certain point, it makes more sense to replace the system than to clear this technical debt.

There are many more signs, and they will pour in from everywhere: the application, its ecosystem, the employees, the environment. They all will start sending the signals. It’s not difficult to spot these signs; they are obvious and abundant! When you see them, the time has come! Call it expenditure or call it an investment, there’s no escape from replacement. It’s then your call to decide whether to wake up now or hit the snooze button.

3 Tips for Construction Project Management Success

If you’re a construction project manager, you know the nature of your work can be vastly different from site to site much less company to company.

Any project manager regardless of the industry can relate.

A construction PM has many more responsibilities than most other PMs in different industries, construction is demanding and unique. Extensive knowledge about the industry can often be the difference between a successful project completion and delays.

Here a few tips that will be specifically useful for construction project management success.

Effective Communication

We know communication is very important for the success of pretty much any type of project out there, but it’s one of the most essential elements for construction projects in particular.

The thing is, it’s something that’s required in every single phase of the implementation of the plan. A project manager needs to ensure that there’s a constant flow of communication, both on the ground and with the stakeholders and suppliers.

This will make the process much smoother, and prevent the problems from getting more challenging to deal with when they arise. On the other hand, if there’s a lack of effective communication, you would find yourself spending hours spending hours on phone calls and emails when the project encounters a roadblock.

Perhaps a great way of maintaining this flow of communication is by using a good collaborative work management (CWM) tool. It syncs all your comments, calendars, attachments and more, as well as allows you to easily monitor important information that may affect your project such as budgets, news and scheduling changes. Furthermore, it also lets you “share” these changes in real time with everyone you want to, including other managers and accounting offices.

Continuous Planning

Most times, for a project to be successful, you would need to flexible and make changes on the fly as aspects of the project unfold.

In fact, you will also have to refine, revise and keep developing new plans through the life of the project. Every single stage of the project would require this type of planning, including design, pre-planning as well as procurement.

Also keep in mind that even slight changes may make a big impact on the overall outcome, so do not ignore them and take them into consideration to refine the plan.

Getting Involved

Apparently, there’s no industry out there where PMs don’t have to get actively involved in the work. And the construction industry being even more demanding, a PM usually must literally work alongside other workers.

A construction PM must understand the workers working under them better, as well as get familiar with the site. Many times, they will have to see an issue in person to resolve it.

To become a good PM, you will have to put in the required effort to make sure you become an integral part of the process.

Where There are People, There is Conflict

Conflict is a mental struggle resulting from incompatible or opposing needs, drives, wishes, and external or internal demands.

Where there are people, there is conflict. Conflicts are seen as negative. However, this is inaccurate as conflicts are necessary for healthy relationships.

Conflict should not be perceived as a problem. It is a chance for growth and can be useful in opening yourself up to groups or other individuals. When conflict begins to suppress or disrupt productivity and gives way to more conflicts, conflict management is needed to address the dispute. There are many types of conflict, but here are three typical examples:

1. Intragroup Conflict

Intragroup conflict occurs among individuals within a team. The incompatibilities and misunderstandings between team members can lead to intragroup conflict. It starts from interpersonal disagreements like team members have different personalities which may lead to tension or differences in views and ideas.

Within a team, conflict can be helpful in coming up with decisions, which will eventually allow them to achieve their objectives as a team. However, if the degree of conflict disrupts harmony among the members, then some serious guidance from a different party will be needed for it to be settled.

2. Interpersonal Conflict

Interpersonal conflict means a conflict between two individuals. Conflict occurs because of differences between individuals. We all have varied personalities which can lead to incompatible choices and opinions. So, it is a natural occurrence which can eventually help in personal growth or develop our relationships with others.

Interpersonal conflict among individuals at work has been shown to be one of the most frequently noted stressors for employees. This type of conflict is associated with the broader concept of workplace harassment. It relates to other stressors that might co-occur, such as role conflict, role ambiguity, and workload. It also relates to strains such as anxiety, depression, physical symptoms, and low levels of job satisfaction. Disputes between peers as well as supervisor and subordinate conflicts fall into this category.

3. Intergroup Conflict

Intergroup conflict occurs when a misunderstanding arises among different teams or groups within an organization.

Horizontal strain intergroup conflict typically can occur between the marketing & sales departments who are looking to increase the organizational sales. Varied sets of goals, objectives, and interests of these groups can cause conflict. Competition between the groups also amplifies intergroup conflict as each organizational team is trying to outperform each other in reaching their set of goals and objectives. These factors may include a rivalry in resources or the boundaries of responsibilities.

Another type is Vertical strain conflict which involves competition between hierarchical levels such as a union versus company management, or a struggle between a group of employees and management.

Conflict Resolution Management Techniques

There are five strategies for managing stressful situations. None of them is a “one-size-fits-all” answer. Choosing the best conflict management technique depends on a variety of factors, including an appraisal of the intensity of the conflict and environmental factors. Here are the five types of conflict resolution management:

  • Collaborating − win/win
  • Compromising − win some/lose some
  • Accommodating − lose/win
  • Competing − win/lose
  • Avoiding − no winners/no losers

Collaborating Technique

This technique follows the rule “I win, you win.” Collaborating means working together by integrating ideas set out by multiple people. The objective here is to find a creative solution acceptable to everyone. It calls for a significant time commitment. Collaborating can lead to “I will win all costs” or the Competing technique below. Each group must be committed to the win/win outcome and have trust with each other for collaborating to be successful. The collaborating approach gives longer lasting and more meaningful agreements. Participants that collaborate are significantly more likely not to feel negative about the outcome.

Compromising Technique

This method follows the rule “You bend, I bend.” Compromising means adjusting with each other’s opinions and ideas, and thinking of a solution where both points of view are part of the solution outcome. Similarly, both the parties need to give up on some of their ideas and should agree with the other. Values and long-term objectives can be derailed using this technique. This process may not work if initial demands are high and if there is no commitment to honor the compromised solutions or outcomes. Comprise is best in tough situations where collaboration will not work. The results are less likely to be sustainable and mutually valued as both sides feel slightly negative about the experience.

Accommodating Technique

This method follows the rule “I lose, you win.” Accommodating means giving up on ideas and thoughts so that the other party wins and the conflict ends. However, using this technique, one’s own ideas do not get attention, ensures lost credibility, and influence is lost. The approach of “I will just do what you say” deflates the morale of one side of the conflict. Accommodating gives a lack of caring, concern, and commitment to the solution outcome by one side of the conflict. It is having one side of the conflict jumping ship and saying “It is your problem now.” Leaving both sides of the conflict feeling negative about the experience and untrusting of each other regarding the solution outcome.

Competing Technique

This method follows the rule “I win, you lose.” Competition means when there is a dispute a person or a group is not willing to collaborate or adjust, but it simply wants the opposite party to lose. This technique can further escalate conflict or losers may retaliate. This “It is my way or the highway” leads to stronger emotions and greater conflict. Many conflicts start as competing but then move into other collaboration types.

Avoiding Technique

This method follows the rule “No winners, no losers.” Avoiding means the ideas suggested by both the parties are rejected. Both parties are then lead undermine each other, ignoring each other’s ideas and creates a greater wedge between the two parties to reach a conclusion in the future.