CHAPTER 4 | PROJECT INTEGRATION MANAGEMENT EXERCISES

2015 Pulse of the Profession.

Capturing the Value of Project Management Summary

VALUING PROJECT, PROGRAM AND PORTFOLIO MANAGEMENT

According to Mark A. Langley, the president and CEO of project management institute, performance improves and competitive advantage accelerates when a project and program management mindset is embedded into an organization’s DNA. The study says that high preforming organizations waste 13 times less money than their low performing counterparts and meet goals two-and-a-half times often. It is reported by Pulse and is remain unchanged since 2012.

Mark A. Langley as the global advocate for the project, program, and portfolio management, they conducted a Pulse study to prove and to make evidence that implementing strategy successfully is inextricably linked to an organization’s capability to deliver projects and programs successfully. So he made a report that will prove us of what high-performing organizations do differently, and how they are creating a competitive advantage by embedding a project management mindset in their organization culture.

Due to the sluggish economic growth that have largely remained unchanged, this study requires us to do more rigorous project, program and portfolio management. So in order to do that, we need to go back to the basics.

DELIVERING VALUE IN A DEMANDING ENVIRONMENT

Pulse finds that the GDP growth for the past years are not showing significant decreases or increases so they come up with the question “What will cause noticeable change?”

“To me (change) will come form management and influencing behavior.”

Philippe Guitton, Machelin

“I believe more focus on selling the concept of OPM and its value to the C-suite is essential to cause a noticeable change.“

Laila MT Faridoon, Roads and Transport Authority

For me, both of them has a point because influencing behavior has a big factor when working as a team. Project manager must acquire this in order to make change in delivering a project. With the help of PMO, more high quality project will be sold and make progress in the economy.

BACK TO BASICS: IMPROVING PROJECT MANAGEMENT

High-performing organizations can reduce risk, cuts, costs and improves success rates of project and programs. It also waste 13 times less money than low-performers.

The basics on PMI are what Pulse are referring saying that it shows a number of factors that can contribute to success and these are:

· Fully understanding the value of Project management

· Having actively engaged executive sponsors

· Aligning projects to strategy

· Developing and maintaining project management talent

· Using standardized project management practices throughout the organizations

BUSINESS IMPERATIVE: GETTING THE FUNDAMENTALS RIGHT

CULTURE, TALENT, AND PROCESS are the fundamental aspects that the organizations are focusing that results on meeting their goals but the percentage has remained flat over the past four years suspecting that until more organizations address these fundamentals and get better at managing them, overall project success rates will not improve.

-CULTURE

Culture shapes the experiences of employees. A culture that embraces project management and increases the business value it delivers involves fully understanding the value of project management, requiring actively engaged executive sponsors on project and programs, aligning project and programs to the organizations strategy, having highly mature project, program and portfolio management.

-TALENT

A key factor in fostering a culture that values project management is understanding the importance of skilled talent. 40 percent are the percentage of talent deficiencies based on survey of 2014 PMI and EIU global survey.

-PROCESS

Organizations can clearly benefit from maturing their project, program and portfolio management processes, and that process maturity leads to success according to Pulse Research. Through the use of standardized project management practices, Pulse’s latest findings reveal a high-performing organization that supports project, program and portfolio management.

FOUNDATIONAL PRACTICES

· Greater knowledge transfer effectiveness

· More rigorous use of risk management practices

· More frequent use of agile/incremental/iterative project management realization maturity.

-KNOWLEDGE TRANSFER

For knowledge transfer to become routine but effective, it must be culturally embedded.

According to 2015 Pulse research, to achieve superior project performance and execute strategic initiatives, high performing organizations must organize the need to focus on talent development and training.

Knowledge transfer is a learning tool that can strengthen team performance by:

· Emphasizing collaboration

· Innovation

· Coaching

-RISK MANAGEMENT

Risk management is at the heart of project management. 64 percent of organizations uses frequent use of risk management practices according to Pulse research down from a high of 71 percent in 2012. But this number was declined and find that 83 percent of high-performers report frequent use of risk management practices.

A risk management competency helps organizations assess and identify project risks mitigate threats and capitalize opportunities.

-ORGANIZATIONAL AGILITY

Organizational agility is the ability of a business to respond and adopt quickly in response to changes in the market or other parts of its external environment.

· Respond quickly to opportunities

· Shorten decision/ production/ review cycles

· Manage changes

· Integrate the voice of the customer

· Manage risk

· Assign interdisciplinary project teams

· Eliminate organization silos

· Implement contingency planning

· Use iterative project management practices

· Leverage technology

-BENEFITS REALIZATION

Benefits realization illustrates and measures precisely how projects and programs add true value to the enterprise only one of five organizations reports having a high level of benefits realization maturing according to 2015 pulse research representing an increase of 63 percent since 2013.

Organizations that report high benefits realization maturity have significantly better projects outcomes. Helps ensure that the outcome of a project produces benefits.

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

· Perform a financial analysis for a project using the format provided in the book (IT Project Management, Revised 6e). Assume that the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $30,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $100,000 each year in Years 2, 3, and 4. Use a 9 percent discount rate, and round the discount factors to two decimal places. Create a spreadsheet or use the business case financials template on the companion Web site to calculate and clearly display the NPV, ROI, and year in which payback occurs. In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis.

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

CLASS WEBSITE

1. HOMEPAGE

1.1. POST/PASSED OUTPUTS

2. SYLLABUS

2.1. SUBJECT TOPICS/LESSONS

3. LECTURE NOTES

3.1. BOOKS/E-BOOKS

4. BULLETIN BOARD

4.1. ANNOUNCEMENTS

4.2. POSTING OF ASSIGNMENTS/ACTIVITY

5. CHAT ROOM

5.1. GROUP CHAT

5.2. VIDEO CALL

6. CLASSMATES

6.1. LIST OF STUDENTS WITH RESPECTIVE BACKGROUND INFORMATION

— — — — — — — — — — — — — — — — — — — — — — — — — — — — — — —

1. Write a short paper based on the chapter’s opening case. Answer the following questions (Information Technology Project Management, 7e, page 140, Opening Case):

1. What do you think the real problem was in this case?

For me, the problem in this case is lack of training of being a project manager and the changing of project manager for many times. Also talent is one factor that affects the success rate of the project.

2. Does the case present a realistic scenario? Why or why not?

Yes because it happens in many organizations as researched by Pulse.

3. Was Nick Carson a good project manager? Why or why not?

No because first of all, being a project manager is not his obligation or work and maybe he didn’t have on doing the job or even attend trainings about it.

4. What should top management have done to help Nick?

Provide Project Manager training seminars for Nick Carson.

5. What could Nick have done to be a better project manager?

Motivate and instruct his team carefully about the project.

#monthsary is real :D

One clap, two clap, three clap, forty?

By clapping more or less, you can signal to us which stories really stand out.