Your Project is a Business. What Are Your Project Challenges?
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1 Your Project is a Business An Entrepreneurial Approach to Project Management Carl Rand ProjectWorld San Jose, CA What Are Your Project Challenges? Please take a moment to think of the one most challenging issue in your current project environment. Carl W. Rand ProjectWorld San Jose 1 Carl W. Rand 1
2 Entrepreneurs What makes them tick? Are entrepreneurs well suited to being PMs? Can PMs be effective entrepreneurs? Is there a common thread between them? What can we apply from the entrepreneurial mind set? Carl W. Rand ProjectWorld San Jose 2 Objective and Premise Help develop an awareness that projects should: Be aligned with corporate strategy Provide a competitive advantage Provide a positive financial contribution To enhance overall success, projects need to be approached from a business perspective. Carl W. Rand ProjectWorld San Jose 3 Carl W. Rand 2
3 The Traditional Picture Cost Time Scope Adapted from Harold Kerzner Carl W. Rand ProjectWorld San Jose 4 Current Business Context Schedule constraints Financial constraints Resource constraints Intense competition New and dynamic relationships Shorter product life cycles Uncertainty at all levels Carl W. Rand ProjectWorld San Jose 5 Carl W. Rand 3
4 A Paradigm Shift Internal External Organization Customer Micro Macro Project Business Carl W. Rand ProjectWorld San Jose 6 The New PM Role Technical expertise is assumed Instead of a project, you run a business Responsibility extends from initial proposal to successful contribution Ongoing project evaluation occurs at each phase The PM is accountable for all results Carl W. Rand ProjectWorld San Jose 7 Carl W. Rand 4
5 ProjectWorld San Jose December, 2001 The New PM Focus View executive management as you would venture partners n Have a very clear customer (stakeholder) vision n Employ PM best practices, they are still valid n Plan for post-project impact n Carl W. Rand ProjectWorld San Jose 8 The Entrepreneurial Picture Profit & Loss Business Cycle Cost Time Scope Business Opportunity Carl W. Rand Carl W. Rand ProjectWorld San Jose 9 5
6 Adapting to the Environment PMs need to understand PMBOK knowledge areas and: Economics and finance Industry and competition Organizational goals and strategies Organizational structure and processes (portfolio management) Product life cycles Carl W. Rand ProjectWorld San Jose 10 A Model for the New Project Environment Strategy setting or visioning organization Portfolio management organization Team leaders w/ customer focus Cross-functional core teams performing project work Business and development processes Carl W. Rand ProjectWorld San Jose 11 Carl W. Rand 6
7 The PM is a Customer-Focused Leader Sales Marketing Customer R & D Project Leader QA Etc. Manufacturing Adapted from Setting the PACE in Product Development Carl W. Rand ProjectWorld San Jose 12 Core Teams in the Business Context Portfolio Management Team (PMT) Business Decision Process Structured Development Process Core Teams Functional Departments Adapted from Setting the PACE in Product Development Carl W. Rand ProjectWorld San Jose 13 Carl W. Rand 7
8 Guidelines for a Business Case Executive Summary Project Description Market, Customer and Competition Cost-Benefit Analysis Sensitivity, Risks and Contingencies Definitions of Success and Failure Adapted from The Project Manager s MBA Carl W. Rand ProjectWorld San Jose 14 Some Traits of Successful Project Environments Projects are linked to strategy Influence of top management is understood A core team system is employed The enterprise is a learning organization The organization fosters project management discipline Adapted from Creating an Environment for Successful Projects Carl W. Rand ProjectWorld San Jose 15 Carl W. Rand 8
9 Introducing an Entrepreneurial Approach Can an entrepreneurial approach work in your environment? Introducing new processes or concepts is difficult because it introduces change. Be prepared for: Skepticism Resistance Hostility A well conceived plan and executive support are essential. Carl W. Rand ProjectWorld San Jose 16 The Entrepreneurial PM Roadmap Step 1 Understand the entrepreneurial mind set and educate your self in business concepts Readings: Project Manager s MBA - Cohen Intrapreneuring - Pinchot Professional Development: Courses, conferences, associations, etc. Carl W. Rand ProjectWorld San Jose 17 Carl W. Rand 9
10 The Entrepreneurial PM Roadmap Step 2 Understand your project environment and the potential for an entrepreneurial approach Readings: Building Effective Project Environments Graham and Englund Actions: Perform an environment assessment, even if informally Determine if an entrepreneurial might work Carl W. Rand ProjectWorld San Jose 18 The Entrepreneurial PM Roadmap Step 3 Pilot the entrepreneurial approach with a project Readings: Project Manager s MBA Cohen Various PM texts Actions: Build a business plan for your project Show potential benefits from a business perspective, including success criteria Execute the project using appropriate PM best practices Carl W. Rand ProjectWorld San Jose 19 Carl W. Rand 10
11 The Entrepreneurial PM Roadmap Step 4 Measure and demonstrate the results of the entrepreneurial (businessfocused) approach. Readings: Project Manager s MBA Cohen Various PM texts Actions: Validate your project s contribution to the business Demonstrate achievement of success criteria Carl W. Rand ProjectWorld San Jose 20 The Entrepreneurial PM Roadmap Step 5 Plan for and implement the entrepreneurial approach Readings: The TEAM Handbook Scholtes, Joiner & Streibel Actions: Develop and implement a process improvement plan PDCA. Document and teach what you have done. Spread the word. Carl W. Rand ProjectWorld San Jose 21 Carl W. Rand 11
12 The Essential Questions Does my project: Align with the corporate strategy? Provide a competitive advantage? Offer a positive financial contribution? Ultimately, am I willing to give up my project if it does not and pursue another venture? Carl W. Rand ProjectWorld San Jose 22 Today s Project Managers Understand their business, its strategy and vision Understand the portfolio of projects Understand their project s contribution to the business Manage their projects to maximum potential for the business Carl W. Rand ProjectWorld San Jose 23 Carl W. Rand 12
13 The Good News Is PMs know how to evolve; it is a basic trait Classic techniques still work and have value Our skills and behavior can be successfully adapted to the new environment Carl W. Rand ProjectWorld San Jose 24 Your Project is a Business Thank You for Attending Carl Rand cwrand@pacbell.net Carl W. Rand 13
14 References Please see the separate Annotated Bibliography for an extensive text listing with descriptive comments. If unavailable, contact Carl Rand at for a copy. Carl W. Rand ProjectWorld San Jose 26 Copyright Compliance Materials included in this presentation are protected by copyright law and are reproduced under the fair use provisions of the copyright act for teaching and scholarship purposes. Notwithstanding the provisions of sections 106 and 106A, the fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright. Carl W. Rand ProjectWorld San Jose 27 Carl W. Rand 14
15 Your Project is a Business Thank You for Attending Carl Rand cwrand@pacbell.net Carl W. Rand 15
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