Tài liệu Creating the project office 6 ppt

Phase 3: Making Change Stick By this point in the change process, the value of moving to enterprise project man-agement has probably been proven many times over.. Make change Make projec

will be impossible Changing systems is also difficult as much has been invested in current systems, and the people who run them probably favor the status quo Fi-nally, getting the support of department directors has been notoriously difficult over the history of the project management movement It is here that many change processes fail Even when procedures have proven to be effective and the necessary skills have been developed, the structures, systems, and supervisors do not yield to change, and the process fails

For this reason we opened this chapter with the reference to Dante The sign over the door to Hell warned him to “abandon hope.” Yet we believe there is reason in-stead to “abandon despair”—there is a process and help to address the difficult issues

Phase 3: Making Change Stick

By this point in the change process, the value of moving to enterprise project man-agement has probably been proven many times over Project managers have been well trained, mentored, and supported, and good project manager practice has become the norm It may seem that the new practices have taken root and now define the way things are done in the organization However, experience indicates that this is not necessarily true Old habits die hard and the old culture lies just below the surface, constantly ready to reassert itself

Kotter (1996, pp 145–147) described an aerospace company where a five-year change process yielded an increase in revenues of 62 percent and an increase

in net income of 76 percent The driver of the change, the division general man-ager, retired—feeling that the changes had been made, the results impressive, and the work had been done Very soon, many of the changes that were put in place began to unravel; many small adjustments were made, mostly imperceptible Within twenty-four months, some practices had regressed to where they had been four years before Shortly thereafter the first major performance problems began

to emerge Kotter argues that this happens because “some central precepts in the division’s culture were incompatible with all the changes that had been made As long as the division general manager and the transformation program worked day and night to reinforce the new practices, the total weight of these efforts over-whelmed the cultural differences But when the division general manager left and the transformation program ended, the culture reasserted itself ” (p 146) The teamwork and cross-organization cooperation necessary for enterprise project management are antithetical to the reality experienced in most organiza-tions For this reason it is a good bet that the changes necessary to implement en-terprise project management will be quite incompatible with the organization’s culture Even if systemic changes are made in the organization, the old ways will still linger for many organizational generations

Culture change is an extremely long and complicated process It means changing the way people construct their reality People must experience the

nection between new action and performance improvement on many different occasions and over a sustained period The changes must be passed on from one generation to another, and this will probably have to happen several times before the organizational culture adjusts to the new reality Process cannot be said to be complete until the day when there is no one left in the organization who can re-member doing things any other way

By the beginning of the third phase of the change process, a strategic project office should have been established The people in this office are in a unique po-sition to lead this final phase of the change process An important aspect will be their ability to follow a project from inception all the way until the end of the product that was produced by the project In the past, the costs for the project were normally counted in one part of the organization, perhaps R&D, while the benefits of the project’s product were counted in a different part of the organiza-tion, perhaps in Marketing Projects were seen as an expense rather than as an in-vestment, so the return on investment in the project was rarely calculated With

a changed accounting system and a strategic project office positioned high enough

in the organization, the accounting for the project investment as well as the re-turn on that investment now come together in one place This information will help develop portfolio management and project selection procedures as well as pave the way for developing a venture project management program, where project managers feel responsibility beyond the completion of the project itself and throughout the life of the project’s product

With this final change, project management will be seen as much more than just a set of techniques to complete projects on time and on budget Project man-agement practices become totally intertwined with business manman-agement prac-tices—project and business management will be seen as the same thing

Chapters Ten and Eleven contain a discussion of the difficulties of cultural change, suggestions for implementing cultural change, a description of the changes that will be necessary for venture project management to become a real-ity, and suggestions for implementing those changes

Summary

This chapter presents many concepts and ideas regarding planned organizational change, the three phases of that change, the role of the change agent during those phases, and the progression of project office development to support the entire change process The box in Figure 1.3 presents a summary of these ideas in cap-sule form This can be used as a one-page guide to the entire organizational change process Details concerning the steps in this process are given in subse-quent chapters

30 Creating the Project Office

Create Establish a sense Benchmarking (continual function).

conditions of urgency Organizational vision.

Develop political Stakeholder analysis.

acumen.

Create a guiding PM council with organization-wide coalition representation.

Powerful executive sponsor.

Develop a vision PM office vision, what it will do.

and strategy Strategy, start small, expand with success.

Communicate Meet with all organization constituents.

that change vision Generate their enthusiasm.

Make change Generate short- Apply standard process to some immediate

Level 1–PCO.

Develop broad- Develop constituency through training, based action mentoring, consulting, developing a career

path.

Level 2–PMCOE.

Consolidate gains Reorganization to establish a CPO.

and produce Level 3–strategic PO.

more change Change reward system; develop portfolio

management and venture project management.

Make change Make project Change organization culture by providing

stick management leadership, training, means, and the motivation

the norm to make the change the new reality.

FIGURE 1.3 CHANGE PROCESS FOR PROJECT-BASED ORGANIZATION.

Following the process outlined in Chapter One, the first step in implementing organizational change

is creating a sense of urgency for that change To implement a project office system that spans an entire organization requires creating a sense of urgency among many members of the organiza-tion A short-term sense of urgency can be created by pointing to a clear danger, something that threatens the future of the organization However, experience indicates that this urgency often does not last once the danger passes In this chapter we give longer-lasting ways to create an organi-zation-wide sense of urgency regarding the need to implement a project office These consist of establishing that the office will add value to the organization, comparing your organization’s project management practices to those considered the best, and describing a desired future of the organi-zation that is based on developing project management as a core competency.

5.

6.

7.

8.

9.

10.

11.

Refreeze

Change

Unfreeze

2.

Urgency and value

CHAPTER TWO

CLEAR DANGER: CREATING A SENSE

OF URGENCY AND ECONOMIC VALUE

Brutus is an honorable man.

S HAKESPEARE

Chapter One describes how organizational change efforts seem destined to fail unless those directing the change can establish a sense of urgency for that change Pointing to a clear danger is a useful technique for getting people’s at-tention, but that attention often wanes once the immediate danger has passed To build a longer-term sense of urgency we develop that step plus three additional actions for consideration in this chapter

1 Use the clear danger The first suggestion is to concentrate on the set of

circum-stances that brought forward the need to establish better project management

in the first place, normally a project crisis or missed opportunity, and to show how establishing a project office will help to avert such crises in the future

2 Add value to the organization Once it is shown that future crises can be averted,

the next step is to focus attention on the longer-term benefits of the project of-fice to the organization This is best done by developing a value proposition indicating how the office will make the organization better and more successful

3 Benchmark current organizational practices To demonstrate this added value,

con-sider benchmarking the current practices of your organization against those

of industry leaders who have already established a project office system If the benchmarking shows that your organization is falling behind the industry lead-ers, a sense of urgency for better project management will increase quickly Y

4 Describe a desired organization To begin the focus on benefits of organizational

change, it is useful to create a picture of the future organization, a description

of what the organization could be like once the change process is completed and project management established as a core competency When people see how that type of organization will function and what it can accomplish, they will want what they see, and there will be an urgency to start developing it immediately

Developing a Clear Danger

Implementing a project office will require cooperation among many different parts

of the organization, often among organizational entities that typically do not co-operate with each other Developing a clear danger to the survival of the organi-zation is one well-known way of fostering cooperation and even getting people to temporarily suspend long-held beliefs to work toward organizational survival For

example, in Morality and Expediency, Bailey (1977) describes a situation where

pro-fessors agreed to fabricate enrollment in certain courses so they would not lose state funding The author points out that one core value of the professor is to tell the truth, and indicated that any professor who published a paper with lies would

be severely chastised However, the group was willing to suspend that morality for the expediency of maintaining a higher level of state funding

Similarly, the members of many university departments fight each other con-tinually, downgrading the field of study in any department but their own How-ever, when the state funding agency appears with a mandate for interdepartmental cooperation, departmental members find themselves able to come together to give

a unified front and present many plans for interdisciplinary research Of course, those plans evaporate once the funding is secure and the usual interdepartmen-tal animosities reemerge

Establish sense of urgency— clear danger

• know current problems

• add value to the organization

• compare to the best

• describe desired future state

Leading Organizational Change

to PBO

Create guiding coalition—

powerful forces

Develop vision and strategy—

focus

Manage the change—

short-term wins, broad-based action,

consolidate gains

Develop broad-based action—

keep moving, implementing

Make change stick—

new PBO culture

The tale we tell

Communicate the change vision—

tell the tale Staff and operate—

In or out?

These examples show a typical pattern in response to threats That is, people with a wide variety of often conflicting interests are able to unify and work together when there is a clear danger Once the sense of danger has passed, however, old feuds and the old ways quickly reassert themselves This response illustrates the type of unity of purpose that change agents would like to generate to initiate any change process The groups of people to be convinced range far and wide across the organization, each with its own set of problems to solve and each with its own set of changes in mind Your initial task as a change agent is to create a sense of urgency concerning the need for enterprise project management and a project of-fice that is so strong that groups with diverse agendas would be willing to abandon,

or at least temporarily suspend, their own change efforts in order to support yours

Spinning Your Wheels

As noted earlier, the desire to increase project management ability often results from a series of project failures In many organizations, the first response to these failures is to send a few engineers out for training in project management The assumption here is that project management is a skill that can be easily learned and then practiced in the organization The reality is that although project man-agement skills can be learned easily enough, those skills are so antithetical to the way most organizations function that they are not easily applied In fact, when engineers return to the organization, they find that their newfound skills are so strange to organizational beliefs that attempts to practice those skills are actually seen as career-limiting moves For example, organization members may look askance when the engineers suggest time for project planning, they may walk out

of meetings set up to agree on project goals, and will often bristle with indigna-tion at any suggesindigna-tion that people work full time on one project only As a result

of such responses, newly trained engineers either give up trying to practice project management or leave the organization Either way, the organization experiences yet another failure in project management, this time with the additional pain of spending money for training and getting nothing in return

At some point we would hope it becomes clear to upper managers that project management is more than just a set of skills; it is an approach to doing business that requires wholehearted organizational support At this point the concept of a project office may be considered Successive failures may warm people to the idea that there is a need for a concentrated and dedicated group of people to system-atically develop a project management capability within the organization This realization may come at the upper management level or may arise from a groundswell across the organization The initial urgency will be to prevent future failures and stop spending all that money for nothing

The causes of project failure are fairly well known: usually some combina-tion of lack of a clear goal, lack of following a project management methodol-ogy, lack of top managers’ support, lack of interaction with customers and end users, or lack of trained personnel to manage the project The change agent needs

to be ready to show how the project office addresses these deficiencies Developing methodology, working to increase upper management support, interacting with customers and users, and training project managers are often introductory steps that many project office managers take in order to attack the most urgent orga-nizational problems In addition, these functions are known to be critical factors in project success (Dai, 2001) The change agent team could thus consider imple-menting these functions as a first step in their implementation plan

Some Problems with Minimizing Cost as a Project Office Goal

A project office may be pushed to minimize costs on projects Excessive cost might

be considered part of the clear danger Is this a viable strategy? While it may be helpful to get people’s attention by concentrating on minimizing costs, this initial concentration could be detrimental for the long-term future of a project office and the organization It will not help the project office to get a reputation of being

a watchdog for management Also, this concentration aligns the project office with

an old perception of project management, one that will not serve the office well

in the future

In earlier days, project management was sold as a way to minimize cost It was touted as a set of techniques that would enable project managers to deliver a

specified outcome at a specified time and at a minimum cost These are the triple

constraints, the basis for early project management practice Over time it has

be-come apparent that the triple constraints are too constraining and that they often lead to poor decision making on projects But since people in organizations con-tinue to emphasize the need to minimize costs, project management techniques stay mired in the triple constraints This is one reason why project management seldom concerns top managers in the organization They see it as a set of tech-niques for minimizing cost, not as a way of operating projects to help them achieve strategy and add value to the organization

This is an important issue in the framing of both the problem and the pro-posed solution A project crisis is good for gaining attention, but framing the project office merely as a response to crisis will be detrimental in the long run If the project office is seen as a watchdog group there to oversee project spending,

it develops a negative image and there is little chance of getting cooperation from project managers and other organization members There is also little chance that upper managers will associate the office with achieving strategy and change In

framing the function and purpose of the project office, first understand people’s concerns with costs and indeed address that concern as a part of the purpose Then move the function of the project office to adding economic value

Costs are often a political football Large construction projects such as a Channel Tunnel or the Boston “Big Dig” are often chastised for going as much

as 500 percent over budget However, the original budget figure is probably a lie,

a figure used to get voter approval for the project Once the project is under way, true costs emerge However, since the project is already under way, voters usually approve spending the extra money Politicians often feel that the people will not vote for the project if they knew how much it is really going to cost, and they may well be correct And politicians are not the only ones who underestimate project costs in an effort to see a project initiated It also happens in organizations This indicates that preliminary cost estimates are an important first place to look when there is concern with cost control This also indicates that an important additional function of a project office is to work to produce reliable and truthful estimates of project costs whenever projects are first being considered

“Brutus is an honorable man” is Mark Antony’s line in Shakespeare’s Julius

Caesar He repeated it during his oration at Caesar’s funeral He used it to build

rapport with the audience who believed in Brutus However, Brutus murdered Caesar By the end of the oration, the audience ran Brutus out of town

For our purposes, Brutus is the budget, an emphasis on project costs Propo-nents of a project office need to acknowledge that costs are important Draw a lesson from Mark Antony’s speech as a brilliant persuasive tool Help people come

to realize that emphasis on budget is shortsighted Clear dangers are all around,

and narrow focus on costs is a big one The real honor is in creating value Do the

right thing and the money will follow is the first law of money.

People in organizations say they want to minimize cost, but do they really? Despite all the discussion about the cost of projects that failed, it is usually plain

to see that cost would not be a factor had the projects succeeded It seems a rule of life that for successful projects the costs cannot be remembered while for failed projects the costs cannot be forgotten It is not the cost of the project that worries people, it is the cost of the failure This is another indication that the emphasis of the project office should be on developing practices that minimize the chance of project failure rather than on framing rules to minimize project costs

People in organizations say they want to minimize cost, but do they really?

An easy retort to this idea is that it is easy to minimize project costs in any orga-nization—just don’t do any projects With no projects, project costs are zero This

is quickly seen as folly; people want the benefits that the projects produce, and they would like the benefits to outweigh the costs It is easy to argue that firms cannot succeed by minimizing cost, they succeed by adding value The same is