Back From Red Blog
Businesses exist to make money. To improve operations they create various initiatives with promises of improving the bottom line. Projects, though, cost money. They do not make a profit. The dichotomy in a strapped economy to spend savings on projects to improve future profits usually results in the conservation of cash. Many an argument has been had over whether it is better to run improvement projects, burning precious cash and heading off the competition, or taking the traditional approach and wait for times with better cash flow. Subsequent to 2008's financial folly, it is well known that most companies sat on their reserves and waited. That action may have some unintended consequences that are in the midst of surfacing.
Months ago, maybe over a year, now, I was blasted for talking about innovation in the context of information technology (IT) projects. The gist of the complaint was that all IT folks think they are building some new groundbreaking, revolutionary application that requires the latest in technology's tools. I agreed with his argument, qualifying that although this seems to be a pervasive theme, IT is a discipline that needs to keep one-foot in the pioneering frontier. Regardless, I had to concede that many innovative initiatives are more about a technician playing with some new toy. Jobs like implementing ERP interfaces to manufacturing execution systems (MES) only sound new. Unfortunately, I must say, "been there done that." Most IT is neither new of innovative. To avoid squandering funds, executives must understand and direct what needs to be innovative and permeate the company's culture with that knowledge. Otherwise, the wasted time and expense will suck a company dry.
Few events start a project manager's day off worse than a yellow sticky note on his or her monitor saying, "The finance manager would like to talk to you." An email is equally as bad; however, the note at your desk means that someone actually hunted you down looking to talk about, you guessed it, finances. There must be some problem. Everyone knows the finance folks would never wander into project-land to invite you out for a friendly cup of coffee. You quickly review the project's finances. Everything seems in order. With a sigh, you contemplate whether you should walk over and see her or will a phone call be the least painful option? Yes, painful. Anytime the finance manager calls, there is going to be a lot of new work.
Leadership is more than leading the people reporting to you. Too often, you need to lead people over which you lack any authority. The absence of hierarchical advantage adds a challenge, but is ideal training on how to deal with managers, customers, and difficult people. The key is making them feel the direction chosen is theirs. One of the best methods of doing this is storytelling.
Vision, honesty, and transparency: three key traits of an organization that can guarantee project success. This was summed up in last week's interview with Tom Cox, the host of Blog Talk Radio's Tom on Leadership program. His audience, primarily from the C-Suite, is keen to understand how troubled projects are a reflection of their organization's overall health. Projects are, after all, the proverbial canaries in our organization's coalmine. Projects stop performing because there is trouble in the organization.
"I just want to be a project manager. I don't want all that responsibility." The room was silent, save a few exasperated sighs. We all looked around trying to figure out how we would handle the comment. However, there are many levels of project management maturity and only the highest levels require leadership. In fact, the prominent certification process—PMI's PMP®—has little to do with leadership until 2015. So where do we learn about leadership and how can we improve our leadership skills?
Management comes up with great plans for sweeping change, it implements the plans, and three years later the organization has reverted to the way it was before the initiative. Changing to new breakthrough systems is hard; maintaining those processes and procedure is far more difficult. The reason progressive ideas can have a successful implementation only to have the organization regress to its prior state a few years later has its roots in societal practices and human nature.
A couple weeks ago, I was in eating my pre-keynote dinner with a group of people that I had never met. Without being prompted by some general drift in the conversation, a person across that table said, to no one in particular, "Did you hear about the new app to do confessional?" Being unfamiliar with the group, how was I to know if I was sitting with a group of high-tech Catholics that would think this was great. Besides trying to determine how to react, I was trying to envision how confessing with an iPod would have the same effect as sitting down with a priest. Of course, who am I, a fringe protestant, to make any editorial comment about Catholicism's inner workings? However, I finally blurted out, "What happened to accountability?"
Recently, I surveyed a dozen or so students at three Portland area universities. Three-quarters of them replied. An adequate response, since the questions were open-ended, requiring a written answer. The students were all business majors and a majority of them in Management Information Systems (MIS). Although anonymous, I knew the group of northwest students well enough that the optimistic, upbeat tone of the responses were no wonder. The surprise was what was missing.
Friday brought news of another company outsourcing part of their IT. The details are sketchy, but it appears that all the COBOL programmers (many counting days until retirement) are going to have their jobs moved half way around the world. Soon after, it sounds like the IT infrastructure and operations will follow. Friends lamented about more jobs going overseas. I had to ask what other options management had. I did not hear any alternatives.
To the dismay of my cohorts and their potential pink slips, I am less concerned about outsourcing the administration of servers, networks, and base applications. For most companies, those are not the systems unique to their mission. These days, those functions are utilities. However, outsourcing customized systems that are at the heart of how a company does its business and distinguishes itself to its customer, is very risky. It may be the only option now; however, it could have been avoided.
More Info on Project Recovery
Rescue The Problem Project
- New PM Articles for the Week of November 9 – 15, The Practicing IT Project Manager, November 9, 2015
- The Argument for Disbanding Your PMO, Accellerated IT Success, Nov 13, 2015
- New PM Articles for the Week of September 28 – October 4, The Practicing IT Project Manager, October 4, 2015
- Episode 332: Project Sponsor Challenges and Solutions, PM Podcast, Cornelius Fichtner, September, 2015
- New PM Articles for the Week of December 1 – 7, The Practicing IT Project Manager, December 7, 2014
- How to buy Project Management Consulting Services: Service as a Product (SaaP), Guerrilla Project Management, Samad Aidane, December 2, 2014
- Episode 275: Your Project Statement of Work is Missing a Comma!, PM Podcast, Cornelius Fichtner, June 14, 2014
- State Invites 10 Firms To Shift Cover Oregon To The Federal Health Insurance Exchange, Oregonian, Portland, Nick Budnick, May 28, 2014
- Decision To Scrap Or Salvage Cover Oregon Health Insurance Exchange Poses Risks Either Way, Oregonian, Nick Budnick, Portland, April 9, 2014
- Cover Oregon Consultant: Fix For Health Insurance Exchange Could Take $40 Million, 21 Months, Oregonian, Nick Budnick, Portland, April 4, 2014
- Episode 205: Rescue The Problem Project, PM Podcast, Cornelius Fichtner, June, 2013
- Episode 206: How to Keep your Project out of Trouble, PM Podcast, Cornelius Fichtner, May, 2013
- How to identify, prevent, and recover from project failure, Accellerated IT Success,April 2, 2013
- Episode 260: The Seven Steps to Rescuing the Problem Project, PM Podcast, Cornelius Fichtner, January. 2014
- New PM Articles for the Week of August 6 – 12, The Practicing IT Project Manager, August 12, 2012
- New PM Articles for the Week of June 11 – 17, The Practicing IT Project Manager, June 17, 2012