Why Are Companies “Good” but Very Rarely “Great” at Project Management?

May 19, 2013 | Author: PM Hut | Filed under: Miscellaneous

Why Are Companies “Good” but Very Rarely “Great” at Project Management?
By Kiron D. Bondale

There is a remarkable similarity between organizations trying to improve their project management capabilities and someone who is attempting to lose weight.

As personal trainers will attest, significant weight loss improvements are usually made early on but having reached a plateau with the potential of being able to achieve further reduction with continued effort, many clients will stall and some may even rebound and gain back some of the weight they had lost. Although there is significant empirical evidence of the health benefits of weight loss, the ongoing effort required to lose more than a nominal amount of weight increases in a non-linear fashion, hence many people are unable to reach their original goals.

The same is witnessed with project management – while there has been much research supporting the premise that improvements in project management increases competitive advantage and operating efficiency, few companies capitalize on this and some even end up sliding back to their pre-project management levels of mediocre performance.

Don’t get me wrong – I’m the last person to advocate that all companies should strive to achieve world-class levels of maturity. Those heady altitudes are best reserved for a very small set of organizations as the significant costs required to achieve world-class maturity must be justified financially. However, I believe almost any company can aspire to PMI’s envisioned goal of embracing, valuing, and utilizing project management and attributing their success to it.

So what prevents this?

Improvement requires real commitment and effort, both in terms of behavioral change and ongoing investment. The behavior changes required for successful project management capability improvement are not painless and many executives and mid-level managers are simply unwilling to relinquish their real (or imagined) power to make these changes. Ongoing investment in capability improvements is also challenging, especially for public sector companies struggling with restricted or reduced operating budgets or public companies striving to meet or exceed shareholder expectations – this is the one advantage that private sector, non-public companies enjoy. As Richard Branson said about Virgin “Fortunately we’re not a public company – we’re a private group of companies, and I can do what I want.”

Project management maturity does not exhibit causal determinism. As there is a lag between improving practices and realizing the benefits of these improvements, you can’t force someone to value project management – they’ll either take that leap of faith and believe in it or they won’t. If the executive who championed the initiative leaves the company or gets distracted with the latest Big Shiny Thing and if there is insufficient critical mass developed to sustain and further the improvements, project management maturity is likely to die on the vine.

One way to reduce the likelihood of this happening is to take an agile approach to your project management improvement initiative.

  • Engage your executives in prioritizing which practices or capabilities to improve by helping them understand the benefits and costs of each

  • Demonstrate tangible value at frequent intervals to re-kindle enthusiasm in the improvement initiative

  • Develop and implement improvements using a cross-functional/cross-role team working closely with one another

To paraphrase Jim Collins: Few companies attain great project management capability, in large part because it is just so easy to settle for a good project management capability.

Kiron D. Bondale, PMP is the Director, Corporate Project Management Office at Agricorp.

Kiron has managed multiple mid-to-large-sized technology and change management projects, and has worked in both internal and professional services project management capacities. He has setup and managed Project Management Offices (PMO) and has provided project portfolio management and project management consulting services to clients across multiple industries.

Kiron is an active member of the Project Management Institute (PMI) and served as a volunteer director on the Board of the PMI Lakeshore Chapter for six years.

Kiron has published articles on Project and Project Portfolio Management in both project management-specific journals (PM Network, PMI-ISSIG journal, Projects & Profits) as well as industry-specific journals (ILTA Peer-to-peer).  He has delivered almost a hundred webinar presentations on a variety of PPM and PM topics and has presented at multiple industry conferences including HIMSS, MISA and ProjectWorld.  In addition to this blog, Kiron contributes articles on a monthly basis to ProjectTimes.com.

Kiron is a firm believer that a pragmatic approach to organization change that addresses process & technology, but most important, people will maximize your chances for success.

For more of Kiron’s thoughts on project management, please visit his blog at http://solutionq.wordpress.com/.

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2 people have left comments

You have to differentiate between OWNERS and CONTRACTORS.

For an owner company, a project is a COST or INVESTMENT CENTER. Owner companies do not make money from the project but from the PRODUCT of the project.

Contractors on the other hand make our money from planning, executing, controlling and closing the project. For a contractor, the project is a PROFIT center, and depending on the type of contract, if we are not efficient and competent as project managers, then we will quickly go bankrupt. In the world of contracting is where we find the “professional” project manager- project management is a career path objective.

In owner companies is were we find the “accidental” project manager. In owner companies, operations is king, not project management.

Once people understand and appreciate these differences, it is a lot easier to understand why owner companies are not even GOOD at project management while for contractors, if we are not GREAT, we will soon be out of business.

BR,
Dr. PDG, Jakarta, Indonesia

DrPDG wrote on May 21, 2013 - 6:56 am | Visit Link

I agree that you need to, at regular intervals, obtain statistics to prove the increased production, efficiency, or whatever the chosen success measure would be to show if the efforts were successful.

This is the basic format for implementing successful organizational change. The ability to start things in the right path through implementation of a “quick win”, and as things begin to pick up speed, implement more and more meaningful changes.

During this implementation period, regularly capturing metrics to then show how they coincide with the changes made, thus proving the validity of the changes. Every company also encounters change burnout or fatigue regardless of the overall success level of the changes implemented.

The only outlying comment I will make towards your post is that the only limiting factor is not proving the change is a positive change, or the need is there for better project management, but we also must consider change fatigue as is encountered with all organizations moving through transition. Planning for this cyclical shift in attitudes, you can enhance your success level.

Chris wrote on May 22, 2013 - 10:28 am | Visit Link

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