Project management
ortfolio, Programme and Project Management (P3M) has become
the de facto approach for delivering the right projects in the right
way, with considerable investment in methodologies, systems
and training. Unfortunately, this investment has not always resulted in
improved delivery.
However, despite 60 years of modern project management
(PM) practice development and research, projects are still failing. IT
consultancy The Standish Group reported in 20091
that “This year’s
results represent the highest failure rate in over a decade”. In the UK, a
Public Accounts Committee report from October 20092
painted a bleak
picture of the UK government’s ability to make the necessary operational
changes to deliver on critical delivery targets. There have been similar
challenges regarding its delivery of physical assets (e.g. military hardware)
and services (e.g. major IT programmes). Recent reports3
from our own
industry have also highlighted the inefficiency and high cost of delivering
major projects, particularly in rail and roads.
There is, therefore, an urgent need to look at the underlying issues
from a fresh perspective. This is being led in part through the evolving
discipline of Organisational Project Management (OPM) which is
developing leading-edge thinking through an initiative between a
business school and leading practitioners from the P3M profession,
and commercial and government bodies.
P
2. Project management offices
are increasingly being adopted
Project management offices (PMOs) allow
organisations to manage their portfolio of projects
and align outcomes with business strategy. PMOs can
be a home for templates, knowledge and support for
project teams as well as strategic support to executives.
Research (from Gartner, Accenture, Cranfield Business
School, et al) has identified what makes PMOs a
success, e.g. meeting management needs, focusing
on benefits and having clear objectives that are
understood by all – and by being designed to meet
only these aims. This will ensure that the cycle of
failure of many PMOs, which typically exist for around
3-5 years before being disbanded, is avoided by
continuously meeting management needs.
3. Project planning and estimating must improve
Transforming PM needs a resurgence in quality-oriented
thinking, as well as changing attitudes towards planning and
estimating. Despite the availability of effective methodologies, techniques
and tools, few organisations invest in planning and estimating as distinct
domains of practice and competency. Also, too few executives create
the cultures and governance environments in which sponsors, project
managers and estimators are encouraged to express realistic cost and
schedule estimates that are free of top-down pressure.
4. Proprietary methodologies must be adapted
There has been a drive to adopt ‘off the shelf’ methodologies, such
as PRINCE2®
. This is based on a belief that PM skills can be applied in
many contexts, allowing people to migrate between jobs and ultimately
spread best practice. This is partially correct, but organisations are
increasingly realising that the methodology must be designed around
their own context, i.e. the life-cycles and technical delivery cycles
particular to their type of project and organisation. Types of projects
must also be understood using Project Complexity Models to define
how, for example, the project should be organised and governed.
5. Projects should be value- not output-driven
Projects are undertaken to deliver benefits (which are often objective and
quantifiable) and value (which is often longer term and more qualitative)
based on the sponsor and key stakeholders’ perceptions of success.
The project team must view their actions as a means of delivering value
and not solely outputs, e.g. physical assets. They need to understand
the project’s justification and its fit into an organisation’s strategy but
also, more importantly, how their decisions will impact its value.
6. Projects should be considered as social enterprises
Projects are temporary organisations to which resources are assigned
to deliver beneficial change (as defined by Rodney Turner). They rely on
people engaging, communicating and working together – this requires
understanding personal motivations, fears and objectives. Project
performance is mainly linked to team effectiveness rather than the project
manager’s capabilities and teams must be developed in a planned and
supported way to ensure their commitment throughout the project’s life.
24 Construction Journal April-May 2011
The leaders of major projects are
gaining prominence and rewards
(the million dollar project manager
for the billion dollar project)
This article brings together thinking from OPM, work by leading
academic Rodney Turner among others, and practical experience from
major corporates aiming to improve their project delivery on a global
basis. Ten ways to improve project success are identified below.
1. PM must accelerate its professionalisation
PM is slowly developing as a recognised profession but for it to influence
improved delivery this must accelerate. This will be helped by PM being
increasingly perceived as being linked with reducing project uncertainty
and ambiguity rather than applying rigid systems and processes. To
support this:
• RICS continues to publish professional standards and guidance
• first and higher degrees in PM are available
• the UK’s Association for Project Management is seeking to gain
Chartered status
• the leaders of major projects are gaining prominence and rewards
(the million dollar project manager for the billion dollar project)
• organisations are including PM as a core competence and offering
career paths aligned to other professional streams.
These actions, in turn, will attract the best and brightest who want to
run large complex projects, which are akin to running a business.
A fresh PM perspective
Dr Serge Kovela and Donnie MacNicol discuss the latest thinking in project
management and how this can be used to increase successful project delivery

April-May 2011 Construction Journal 25
Project management
7. Projects must be marketed to gain maximum support
People have multiple demands on their intellect, attention and time.
As project success ultimately relies on individuals’ commitment, ways
must be identified to appeal to them that not only ensures their input
(possibly achieved by simply allocating them to the project) but also
their commitment to doing the job well.
Importantly, projects must be marketed to senior executives who
must choose between competing projects to ask for support as a
sponsor or stakeholder.
8. Associated professions must be engaged
Most projects fail because organisations are not set up to deliver
projects effectively. Functions such as HR, internal communications,
governance and finance are not aligned to project delivery. One
solution is to develop an Operations Manual which describes how each
function aligns and interfaces to project delivery. Unfortunately, PM has
sometimes not focused on engaging with non-PM functions, alienating
these with specialist interests and language and often promising ‘silver
bullets’ when none exist. As organisations encourage PM as a core
competence, more professions will gain an appreciation of the value
it can add.
9. PM must adapt to the organisational culture
Organisations are typically not aware of, and so don’t plan for, the
often inherent cultural challenges that arise from adopting, using and
sustaining P3M, and the resulting clash with long-standing protocols.
For P3M to work effectively, certain personal, team and organisational
behaviours are needed, so it is critical that an organisation’s culture and
strategic needs are considered before adapting PM to suit. One solution
is to develop a Code of Practice for Project Delivery with those who
perform and are responsible for delivery (as is being developed for a
number of major private sector organisations). Internal and external
best practice should be identified where experiences and knowledge
can be used and adapted.
10. Effective portfolio management
precedes effective PM
PM cannot deliver a good project, it can only
deliver a project well. Portfolio management can
ensure there is a sound strategic and business
rationale for an investment. It provides an objective,
benefits-focused method of assessing options,
choosing the ideal set of projects to achieve strategic
aims and demonstrate that decisions are made
objectively and openly. It is the key principle of
securing alignment between organisational strategy
and project outcomes. Portfolio management is
being increasingly adopted at an executive level as
a strategic tool, together with a PMO which helps
gather the necessary information.
The delivery world has an opportunity to build on
investments made to date in P3M by applying these
principles in a more thoughtful and informed way.
An initiative is now underway with Kingston Business School to
create educational programmes in the emerging discipline of OPM
which aim to address the above challenges by “creating the future
generation of leaders who know how to build, govern and run
complex projects, businesses and organisations”. KBS is supporting
the launch of an OPM Forum hosted by the Best Practice Club
(www.bpclub.com) whose members include infrastructure clients
and contractors. If you are interested in the Forum, please contact
the author.
Project Management – Best Practice Achieving Global Excellence is
available from www.ricsbooks.com
Related competencies include: T016, T017, T068
©iStockphoto.com/DanTero
Further information
1
The CHAOS Summary 2009 Report, www.standishgroup.com
2
Public Accounts Committee – Fourth Report: Progress with VFM savings
and lessons for cost reduction programmes, October 2010,
www.publications.parliament.uk
3
Never Waste a Good Crisis, a review of progress since Rethinking
Construction, Constructing Excellence, www.constructingexcellence.org.uk
Dr Serge Kovela is Senior Lecturer at Kingston Business School.
Donnie MacNicol is Visiting Fellow at KBS, a Director of management
consultancy Team Animation and a member of the acumen7
executive network
donnie@teamanimation.co.uk