Project management

What RP directs

First of all we associate RP with need to direct projects, but quite often we use the concept "project" illegally. Of course, the general signs of the project can be found practically in any activity, but the fact that the project is limited in time and should yield unique result, is not sufficient conditions in any way for it but only necessary^[1].

What sufficient conditions in order that to consider any activity the project in a full-fledged word sense? There is no secret any here, sufficient condition is its correct organization and selection of necessary powers of RP that in practice is executed extremely seldom.

From here it is possible to draw a conclusion that most often we (IS) play a role not of the project manager, and the administrator, a role of the supernumerary, but at the same time our KPI often depend on results of this so-called "project activity". And it is impossible to call the project the project from the methodological point of view. Most likely it is some separate pieces of operating activities.

What basic principles of project activity are most often broken in the organizations? I would select the following especially critical violations which nullify all advantages of project technology:

• the project manager has no real rights for decision making in project works;
• the project manager has no sufficient powers for resource management in the project;
• basic processes of project management, such as "management of contents", "management of cost" and "supply management", remain under the authority of functional managers;
• the most important process of project management — "risk management" — is applied extremely formally or at all is absent;
• design, methodology and control of processes of project management in the organization are not conducted.

If now to compare the functions determined by technology and responsibility of the head and administrator of the project, then it will become clear, than actually RP is engaged.

Project manager: will organize a project team, manages the project. Is responsible for achievement of goals of the project within the budget, at the scheduled time and with the quality objective.

Administrator of the project: RP performs the technical work connected with project management on instructions and orders. Is the main point of communications in the project. Is responsible for communications and documentation of the project.

The lack of conditions for project implementation leads not only to decline in quality, but also to increase in costs in the organization and as result — to dissatisfaction of the management of an upper echelon. It is expensive and inefficient to hammer with the nail monitor.

Whether should RP know data domain

I had to hear more than once that RP should know well data domain of the project in which participates. So experience in construction is required in the construction organizations, and work experience in retail — for maintaining IT projects in the trading companies. Most often you face it at employment. Many companies look for RP which work or worked in some specific field of business, and it is the main condition of acceptance of the employee to the state.

From my point of view it is wrong and not to the best characterizes "personalshchik" who do not understand an essence and cannot carry her the corresponding heads. I will try to explain the point of view.

Let's begin with the fact that project management is an independent knowledge domain which requires excellent preparation, practice and passing very uncommon examinations of the international level. Whether there is a lot of at us in the organizations of roles  /  the positions requiring confirmation of competences at the level of the international certificate? Moreover, not each Chief information officer has such education behind shoulders though I consider that CIO should have it without fail.

At the moment there is not one technique of project management. I carry PMBoK to the most popular (Project Management Body of Knowledge, the USA), AFW (AFW Wirtschaftsakademie Bad Harzburg GmbH, Germany) and PRINCE2 (Projects in Controlled Environments, Great Britain). It is sure that readers know at least one of them, and many even have certificates of different methodologies. By the way, in one of them there is no instruction on data domain in which this methodology works better or is applied more often. The project technology is not tied on data domains, i.e. can be applied to any knowledge domains — both for construction, and to IT projects, and to projects in production.

Moreover, in the concept "project" its uniqueness is put, i.e. each project is unique in itself (on the organization, on risks, on resources, on relationship) and at the exit has unique result. RP should be engaged in these aspects of the project, but not something in another. As soon as we speak about industry or in general about any typification of project activity, we pass into the field of process management where a number of constantly repeating actions can be described regulations and to recognize as the repeating process. However, for execution of process the project manager is not necessary, and the qualified contractor is necessary.

Actually we contradict ourselves: on the one hand we want to have RP which will do projects in true, broad value of this word, with another — we say that it should know data domain and is as a result limited by a framework of the knowledge. I think, not superfluous will be to remind that at business process reengineering in a project team there shall be specialists who are not representing a detailed situation. It becomes to have an opportunity to depart from the developed stereotypes and sample solutions. Actually we want they from RP are to execute the project regardless of external and internal conditions at the scheduled time and at least within the available budget. Industry experience if like that is available, understands it it the owner or not, limits professional thinking and, thus, does not allow to use all width possible solutions. Here also the question appears — you have a project or something else? Do you need RP or the administrator?

And one more moment. Analyzing projects, it is possible to make the following observation: the project is less, the requirement of that RP knew data domain is stronger. It is connected, in my opinion, only with cost efficiency and expediency. In small projects poor budgets and rapidity of works do not allow to unroll the full project, to create a full-fledged command and to conduct necessary documentation. It is accepted to save on all this. For contrast let's look at the Sochi2014 project. It is undoubtedly the project, and it had a head — as you think in what data domain he had to be a specialist?

And the last what there is a wish to pay attention to. If to enter any sections in competences IS, so most likely here it is reasonable to enter not industry classification. For example, it is possible to speak about projects on IT infrastructure, about projects on implementation of ERP, construction projects or investment projects. Then a lot of things fall into place, both the level and competences IS can be estimated not only on a total quantity of the executed projects, but also on that how many they were carried out on defined (we will tell, from above-mentioned) to the direction. Well and quantity of the industries in which RP, too a quite good indicator worked.

From everything told it is possible to draw the following conclusion: if you have really a project if in it competent RP works (which had experiment in the corresponding direction), whose powers are enough for correct maintaining the project, then knowledge of data domain is not the compulsory provision of its good work. If to paraphrase an old theatrical phrase: "At first the clever king surrounds himself with clever suite, and then the suite does the king" — that will turn out quite acceptable rule: in the beginning RP selects a competent command (and it in its direct duties), and then the command does "project".

Whether the project influences the organization?

One more myth, even not the myth, and just the delusion is connected with perception of project activity by upper managers. In this environment it is considered to be that projects are something torn off from operating activities of the organization. Respectively they do not influence neither the organization, nor the general results of its activity, and affect only result of a specific segment of activity on which the implemented project has a direct bearing. The fact that projects will often be organized in areas, either obscure to heads, or problem is explained by it. For example, if in the company profit falls, then ERP is implemented to see who how many spends … Let's look as far as it can be fair.

Speaking about projects, we indirectly speak about changes in the organization. If we speak about IT projects, then we say about how the organization with implementation of new technology will change. Change is a transition from one situation to another, change. So, the project is always changes. I will try to prove it on the example of the IT project on ERP system implementation though now it is difficult to assume that someone does not have it yet (I mean medium-sized and large enterprises).

Originally we realize a problem as such. Today we understand that so far as we have no ERP system, we cannot estimate costs on divisions and as a result — to consider product cost or works.

Then we realize a problem as a gap. At the moment we have no such opportunity, but in the future, after ERP system implementation, this opportunity will appear and we will be able to count everything. It is necessary to make the project eliminating a gap i.e. to implement the ERP system.

It is necessary to make change in the company to pass from a current status to target and to eliminate a gap.

Change (transition) will include:

• change of processes of work of employees;
• change of IT infrastructure, IT landscape and so forth.

To make these changes, the ERP system implementation project which purpose — cost accounting will be organized.

If the project is difficult, then it, perhaps, it is necessary to separate into several subprojects, for example:

• preparation of IT infrastructure;
• redesign of processes;
• change of an organization structure;
• ERP system implementation;
• iprochy subprojects.

To carry out the project ship through all banks and to execute effective objectives, RP should have extensive versatile experience and know a large number of different tools, and not just the main set of rules.

It seems to me, from told quite obviously to the fact that the most part of projects can be considered through a prism of influence on the organization what follows from that RP should be familiar with the most different data domains necessary for change project implementation. For example, with different approaches (functional, project, process, system), with psychology (work with small groups and conflictology) and other. But despite it I am sure that his skills in management as it first of all is the head who will organize work of the project should be the most important ability of RP, is responsible for result and makes timely decisions.

We do not need the RP?

One more widespread error in the organizations is in what upper managers consider, as if RP in the organization is not necessary and RP from the contractor can quite replace it.

If to look at statistics on unsuccessful implementations of information systems, then it is possible to draw an unexpected conclusion: on large enterprises of implementation more often are successful, than on small. I do not insist that it is always possible to rely on this statistics, of course I understand that there are different conditions, the different functionality and still a set of parameters is implemented it is necessary to consider for obtaining correct result. But nevertheless information is indicative.

In my opinion the reason is quite obvious: on large enterprises treat process of project organization in a different way. The culture of the big company is much closer to project management, than small. Here also the question comes out on top and whether the RP is necessary in the organization?

Of course, everything depends on organization sizes, on its structure and economic feasibility. A large number of literature is written how to define need of implementation for the organization of technology of project management both possible positive and negative effects. Let's not retell who has a desire to get acquainted with this literature, it with ease can be found in the Internet.

Pay attention that in all techniques of project management there is only one role of the project manager and one working group of the project. In our reality we often face that we in projects have RP from the customer and RP from the contractor, and what is even worse, it is two different commands: team of the contractor and team of the customer. What leads such situation to, all of us well know and to describe this perspective there is no sense.

Recently even more often information that the companies open the internal project offices appears. In my opinion it is very correct step which first of all is connected with the fact that it is more effective to do projects by forces of the internal commands, using contractors only on bottlenecks where the competence which is absent in the organization is required. As it is possible to give an example the project on reengineering of processes of the organization. It is clear, that the internal command knows opportunities and restrictions better, but at the same time a business protsessirovaniyu specialists and not hackneyed view of a situation are necessary for them.

At first sight it seems that this option is much better and more interesting, than others, but it not always so. Let's look what basic functions of office of project management consist in:

• development and setting of project management in the organization;
• training and the help to the divisions participating in projects;
• education of the internal project managers;
• help to the top management in questions of the correct creation of matrix organizational structures;
• participation in strategic planning regarding implementation in the organization of management of project portfolios;
• methodological ensuring processes of management of projects and portfolios;
• control functions in relation to projects and report generation on a status of the current projects.

If to compare this list to the list of the main violations at project organization which was presented in the first section becomes obvious that it is necessary or it is correct to do everything, providing RP and the office of project management (OPM) with necessary powers and executing all rules, or not to undertake this task in general.

It is necessary to add several words about RP place to the organizations. For a start it is necessary to be defined what role in your organization is executed by RP - it is after all RP or administrators of projects. Further it is necessary to solve whether you will use such division as OUP. If you are, then all your RP should enter it at least in terms of functional subordination. If you do not assume creation of a separate organization unit, then most likely RP will be within the functional units and to execute roles of administration of projects according to the direction them activity.

As for subordination of OUP, it can be different depending on the main objectives, solvable this division. For example, if it only creation of uniform methodology, then most likely subordination should be within the development director. If it is control functions of the specific direction, for example IT, then OUP submits to the corresponding supervising deputy (in case of IT it can be the deputy for economy and finance). And if tasks of OUP are questions of portfolio management or control of all projects of the organization, then it submits, as a rule, to the first person, i.e. the CEO. For the correct creation of an organization structure and subordination of OUP it is necessary to represent two main issues accurately:

• basic functions of division;
• main consumers of information.

Let's sum up

If you were going to be engaged in project activity in the organization, then define for yourself who is necessary to you — RP or the administrator; more simply and the cheapest way, of course, the administrator, but if you are ready to fulfill the main requirements for setting in the organization of project management, then transition to RP will become significant quantum leap.

The opinion that RP should imagine in details data domain of the project is deprived of sense, but big advantage can be the fact that RP had experience in same grew. Of course, I do not speak about data domain of management as I consider it the compulsory provision of work of RP.

It is worth to remember that practically any project influences your organization. The actions you help the company to change, so, you should be a match for the doctor with the basic principle "do not do much harm!".

What it is better, OUP or RP in each division? Probably, in it that uniqueness which is inherent in project activity just also consists. Decide, prove, plan and execute what organization should be in the future planned is and there are your project, the project of changes.

Notes