Management by Projects — The Futureproof Approach
by Alan Patching
In recent years there's been a huge increase in the number of corporations worldwide which achieve their strategic objectives using the 'management by projects' (or enterprise project management) approach. The management by projects approach effectively converts any organisation into a number of small franchises. It takes the authority normally reserved for the senior executives of the organisation and distributes this across a range of project management practitioners. It does not take long after appropriately qualified people, with clearly defined responsibilities in the form of specific projects for which they are totally accountable, (ie have responsibility and authority to do the project) to show the entrepreneurial spirit. There is no question when this occurs, organisations benefit.
There is a difference between project management and management by projects. Project management refers to executing a project using a specific set of skills aimed at controlling costs, schedules, quality and risk etc. Perhaps the shortest and most effective definition of project management is that it is a management system that, when effectively applied, guarantees delivery of results and never excuses. Management by projects is a management philosophy by which an organisation moves beyond ad hoc projects and portfolios of projects to deliver its strategic objectives by a matrix (cross functional) approach using trained and accountable project teams.
The projects approach takes effectively trained managers (and training is a definite requirement for any project management system to work effectively within an organisation) allocates a restricted number of clearly defined responsibilities together with the resources and authority to meet those responsibilities, and gives complete control over the method by which the results are delivered to the project management team. This differs from the 'business as usual' approach where people have a comparatively larger number of tasks to deal with and usually some degree of uncertainty concerning resourcing. This latter approach can quite often lead to a management by crisis situation.
Attitude Differences
The effective project manager often demonstrates a different mentality from a 'business as usual' manager. The latter might often be characterised by spending considerable time coming up with solutions to various problems and then issuing the appropriate instructions to ensure that solutions are carried out, and then presuming that all will be well. The project manager is better characterised as the type of person who spends an equal amount of time but on a lesser number of projects and with a focus on delivering the correct solution. He or she plans in great detail but executes with the ongoing presumption that, now everything is perfect, something could go wrong. When will this happen and how will we manage it when it does? In other words, an overriding skill of effective project managers is risk management.
Futureproofing an organisation involves more than simply stating the project management approach is being adopted and then appointing project managers from among business as usual managers with little if any project management training or experience. It involves accepting a significant but not difficult to achieve adjustment in thinking about corporate structure. In the traditional vertical hierarchical structure managers tend to identify with positions. In the project management approach it is quite normal for the project managers to be appointed from among the ranks of middle or junior management. Their focus can more easily (usually) be directed to project outcomes. It is usual for most project managers thus appointed to have to report to hierarchical executives for approvals at various stages in the life of the project (in a process known as 'gate keeping').
Problems arise when project managers converted to a mentality they are responsible for the delivery of results and never excuses have to interact with hierarchal senior managers who's focus on the particular project might have changed somewhat (amid the everyday chaos of normal management) since the date of definition of a particular project management exercise. These two positional outlooks are simply not congruent. One or two things must happen in an organisation to avoid problems in this area. Either there must be some regular review and formal updating of the defined project scope or there must be an adjustment to the attitude to hierarchical structure to allow project managers to achieve their 'results and no excuses' returns. Ideally both of these would occur. Sadly, some organisations believe substantial structural change is required to achieve them.
The Two Jobs Principle
Actually the structural changes required often do not require a change in the existing physical structure but rather a change in attitude within that structure. That attitude simply requires an acceptance that everybody in the organisation, including high level executives, in fact has two roles in the management by projects philosophy. The first role is the hierarchical role which continues as it has in times past. The second role is a project role and, in this regard, to the extent that any member of the organisation can in any way impact on the results a project manager is charged to deliver, that person sits under the project manager (regardless of his or her hierarchical position) and is subordinate to that project manager in terms of input to the achievement of that specific project's objectives. Similarly a project manager charged with the control of one project may sit under another project manager as a subordinate team member in respect of the delivery of another project.
Clearly this requires no physical structural change in the organisation. Equally clearly it will require significant attitudinal change to be effective.
To expect such changes to be achieved with the issue of a memo or white paper throughout the organisation would be folly. All corporate change requires recognition by leaders of change management principles. Indeed the attitude change suggested in this instance will require a significant amount of communication of various types and might best be handled as a project management exercise itself.
This change exercise should ideally be entrusted to a project manager experienced in the management of change and knowledgeable of the tools and principles involved in any change exercise. As a minimum that project manager should be aware of the need to involve people from all levels affected by the change in the planning for the change.
Partnering
Central to effective futureproofing of any corporation is the concept of partnering. It is also central to effective management by projects. This is particularly important in a situation where management by projects is a new concept within an organisation. It gets away from the setting of any global rules and regulations and allows groups of individuals to set charters of behaviour within which they will operate as project team members and by which they will effectively interface with relevant members of the organisational hierarchy. The partnering approach identifies and emphasises common ground among people. It also identifies likely areas of conflict and sets strategies for dealing with them prior to each project commencement and before emotion blows issues out of proportion.
Management by projects incorporating an acceptance of 'two jobs' and partnering principles might just be what's required to rejuvenate your business.
In a future article we'll address essential components of a successful adoption of the management by projects approach by an organisation. These components include skills assessment, training certification and accreditation (Talent Development), and career path establishment.
For now, I hope this article has whetted your appetite and inspired you to further investigate the management by projects or enterprise project management philosophy with a view to making it a central part of your business.
Other articles and e-books on project management and a range of leadership and management topics are available at www.alanpatching.com.
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