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Now More Than Ever

Whew! Good news in the markets...finally. US President-Elect Obama announced his financial team, including his pick for Treasury Secretary, and the markets globally have responded favorably for two market days, especially in the USA. Finally! It is really about public confidence in the markets, and the POTENTIAL for a solution.

 

Speaking of a solution, I read an article today recommended by Mahala Renkey and Len O'Neal on our staff. It was a November 10 article on CIO.com, entitled Why Project and Portfolio Management Matter More at Recession Time. The article supports my post on November 19. I believe, from experience and from common sense, that PM practices have never been more important in our lives than right now. The article points out that "High project failure means you're wasting money, and there's even less tolerance for that in a down economy."  The article goes on to say that "...Portfolio management can help you zero in on the projects that are most worth their effort and scant budget dollars; while project management can help you execute those projects most efficiently."

 

Yes, I am all over that statement! However, I am concerned that the article points to using available proprietary software as a solution, rather than the discipline and the approach. It points to project and portfolio management software as the answer to solving problems associated with balancing a portfolio...rather than the rigor associated with an internal standard and discipline for managing the portfolio. Although you would expect that from CIO magazine, the statement troubles me.

 

It is the problem with having a software jockey piloting software without knowledge of the discipline. It happened in the architectural design profession as design software became available on desktop computers. It is not an effective approach. It leads to more problems. Project, program and portfolio management needs rigor, discipline and understanding before any software can be used.

 

And remember, we are not only facing a recession, but we started this profession with a global shortfall in the supply of competent, experienced project management professionals. When there is a gap in supply, it tends to create a vacuum and can pull in individuals who lack the discipline and knowledge to manage projects and programs well. Couple that with the software jockey, and we have a problem.

 

But let's hope that things are different now. The world is rallying for a solution. Let's hope they see success through the eyes of project management professionals.

 

More later.

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12 Comments

Excellent Greg. But one additional important thing in these days, is that, now that project managers are more important than ever, it is unavoidable to stress that a project manager needs to identify clearly all the chain of strategic links up to the vision of an institution. From my point of view, the lack of conviction about being an strategic agent, causes that artificial management systems go along artificial financial systems, and probably this is still a risk that PMI should encourage the community to face in a more intelligent way. If we can be or have more project managers convinced that they need to be asking if the things are doing are or not aligned, we might have less "surprises" within the financial and management systems.

Yes, this is a statement that should long have been made academic. In all fields of engineering, for that matter in any other field as well, there is no substitute for the human element in the engineering process. A software is only a tool that facilitates mathematical process of analysis of engineering decisions. We should acknowledge that software cannot make decisions. Organizations do place software at positions higher than what they deserve.
However, one additional aspect need also be considered. Is there any software that encompasses all the components of the multifaceted dynamic field of project management? Most software narrow down project objectives as either progress or cost control and possibility of including quality control is nowhere in sight. Further, justice cannot also be done without saying that the mathematical analysis of project management is still not mature enough to be developed into full-fledged software. Most of us are immersed in day to day management rather than in developing a comprehensive theory of project management that can be universally applicable for versatile activities and resources.
I am a practicing civil engineer in India and my experiences in global construction segment is pretty limited. But, I cannot abstain from asking this question. Are we not placing an unnecessary importance in using software that are developed based on incomplete theory? Should we not devote conscious attention to develop a closer theory and closer software solution that can assist (and not replace) human managers in the project management situation? Please help on this.

First of all great thought Gregory but i would like to add that good PM Softwares do help, but it depends on the individuals perception and his responsiveness to the situation that good results depend on.

I definitely agree with Greg regarding the Software Jockey.

PM Tool implementation belongs to a Digitalization phase companies go through once their processes including PM processes are proven, optimized and 100% compliant to their needs.

Before this can happen, project managers need to develop collaboration among people through rigor, discipline, but also customer-focus and knowledge management.

Well, i work in an organization where a software like MSProject dominate the field , with a zero experience about project management.

The result is a huge misunderstanding in the role of project management and its techniques, resulting more project delay and more loss.

Amazing. I've been on a hunt for the perfect PM software to no avail. One construction project manager of +20 years expereince told me regarding the commercially available CM/PM packages, "None of them are very good. Some are good for certain aspects but not for other activities." He doesn't use any of them!Now I understand what I suspected all along - there is no substitute for the human element. Social, intellectual, and communications skills devilered in a caring environment lead to success. Perhaps, as I saw before in the residential resale real estate business, when faced with high volume activity, it takes two people working together - one with exceptional sales skills, the other with extreme detail orientation and follow through. Working together, the two can be a powerful and comprehensive customer service combination. Thank you for sharing your thoughts.

One of my early mentors once said “a fool with a tool is still a fool.” This has proved true in a number of circumstances during my career. The irony of this situation is that organisations that wish to implement these project management tools often find that the implementation itself goes wrong. The result is an application that is viewed as cumbersome, technical and often inaccurate unless either PM is tied to the desk updating the system. It eventually hinders the project manager from the interactive communication with the team that is the foundation of effective project management. This situation will continue to exist until organisations see project management as more that a job title but a discipline, mindset and mixture of hard and soft skills that does not come in a box.

Amen to that Greg.

Nothing can be further than this truth that using PM softwares to plan and track project progress does not guarantee project success. But rather the PM methodology used, the carefully selected processes, leadership style and approach, proactive risk management, rapport of the project manager with others and how well he/she is at "expectation management".

Keep up the good work!

Seems like you're stating the obvious - so yes, definitely agree 100%. But given our experience, companies are aware of this and as a result are spending a significant amount on business process definition ahead of their investment in project/program/portfolio management software. I'm also going to go out on a limb and suggest that the more successful companies will make this point clear to their prospects before making a sale. For us, perhaps the software-as-a-service model has made this a stringent requirement, whereby the client is married to us for the life of their agreement, but a failed implementation can give them the option of divorce without a huge expenditure in hardware and standalone software.

Gregory, excellent point. Portafolio and Project management is critical to save money for companies and organizations worldwide. Mexico, which is where I’m form, is beginning to realize that this discipline and methodology could represent a breakthrough in several industries to create an effective bridge between strategy and operation, and to create an attractive intangible value in the Mexican companies and organizations.

Unfortunately, as Project Management becomes more and more popular, most Mexican companies look at buying software solutions to do what Project, Program and Line Managers should do.

While Project and Program managers can benefit a great deal from specialized software if they keep it simple, Mexican companies and organizations are in a desperate need of PM professionals, most of them don’t know it yet though.

Great thought Greg and congratulations of a great blog. From now on, A CEO's Perspective on Project Management will be on my regular reading list.

An overt focus on software and systems is a major problem in many parts of our profession. The thing software jockeys often forget is everything to do with projects involves people and their perceptions about an uncertain future, acceptable risks and desirable outcomes.

The PMBOK® Guide 4th Edition is taking a major step forward by recognizing it is impossible to ‘control stakeholders’ and now talks about ‘managing stakeholders’. The next step is to remove the term ‘project controls’ from the vocabulary of every scheduler, PMO manager, cost engineer and senior manager. Project control tools don’t control anything! Used well they may influence people (stakeholders) to make the optimum decisions to assist in achieving the project deliverables and business objectives, but only if the message is communicated effectively to the right stakeholders be they team members of senior managers.

I had a bit to say about this in a blog last month: Good Project Management software is not enough, see: http://mosaicprojects.wordpress.com/2008/11/09/good-project-management/. It is also a theme I will be basing two papers on in 2009, one at the PMI AsiaPacific Congress in Kuala Lumpur and the second at the PMI College of Scheduling conference in Boston. It will be interesting to see how long it takes for the message that ‘it’s all about people’ to be heard and understood.

Wishing you and all at PMI a happy safe and peaceful holiday season.

Pat

You're right Gregory, businesses must beware of the Software Jockey. Unfortunately, it's these same organizations that create them. I see this all the time in my work as a management consultant in the strategic planning and project management field. HR Managers and PMO Directors sometimes feel that only software training is needed to improve the skills of their Project Managers. It's my job as their consultant/adviser to let them know that the PM methodology and thought process comes first, then the software will make more sense and be more effective for the organization.

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About Greg Balestrero

President and CEO of Project Management Institute (PMI), Gregory Balestrero travels the world inspiring business executives and government leaders. Read More

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