! #$%&'$(%) *$(+ #$,%) %-%& .

*' /&('$) $01 #$23 4

The Future of
Project Management
56 7('*+8 9&':$&'1 ;<3=3
Sr. Lxecuuve ulrecLor for ro[ecL ManagemenL
lnLernauonal lnsuLuLe for Learnlng, lnc.
lor more Lhan y years, pro[ecL managemenL has been
ln use buL perhaps noL on a world-wlde basls. WhaL
dlerenuaLed companles ln Lhe early years was wheLher
or noL Lhey used pro[ecL managemenL, noL how well
Lhey used lL. 1oday, almosL every company uses pro[ecL
managemenL and Lhe dlerenuauon ls wheLher Lhey are
slmply good aL pro[ecL managemenL or wheLher Lhey Lruly
excel aL pro[ecL managemenL. 1he dlerence beLween
uslng pro[ecL managemenL and belng good aL pro[ecL
managemenL ls relauvely small and mosL companles can
become good aL pro[ecL managemenL ln a relauvely shorL
ume perlod especlally lf Lhey have execuuve-level supporL.
8uL Lhe dlerence beLween belng good and excelllng aL
pro[ecL managemenL ls qulLe large.
Companles such as l8M, Mlcroso, Slemens, Pewleu-
ackard and uelolue, [usL Lo name a few, have come Lo Lhe
reallzauon LhaL Lhey musL excel aL pro[ecL managemenL.
l8M has more Lhan 300,000 employees wlLh more LhaL 70
percenL ouLslde of Lhe unlLed SLaLes. 1hls lncludes some
20,000 pro[ecL managers. Pewleu-ackard (P) has more
Lhan 8000 pro[ecL managers and 3300 Ms. P deslres
8000 pro[ecL managers and 8000 Ms.
xecunves chonqe their view of the lmportonce of
Project Monoqement
1he companles menuoned prevlously are performlng
sLraLeglc plannlng for pro[ecL managemenL and are
focuslng heavlly on Lhe fuLure. Several of Lhe Lhlngs
LhaL Lhese companles are dolng wlll be dlscussed ln Lhls
paper, beglnnlng wlLh senlor managemenL's vlslon of Lhe
fuLure. ?ears ago, senlor managemenL provlde llp servlce
Lo pro[ecL managemenL. 1oday, senlor managemenL
malnLalns a dlerenL vlew of pro[ecL managemenL as seen
ln Lhe Lable below:
xcu1lv vlw Ol PkOlc1 M4N46MN1
ro[ecL managemenL ls no longer regarded as a parL-
ume occupauon or even a career paLh posluon. lL ls now
vlewed as a sLraLeglc compeLency needed for Lhe survlval
of Lhe rm. Superlor pro[ecL managemenL capablllLy
!"# %&'( )'( %&'(
ro[ecL managemenL ls a career paLh ro[ecL managemenL ls a sLraLeglc or
core compeLency
We need our people cerLlfled as a
M
>
We need people cerLlfled ln pro[ecL
managemenL and ln buslness processes
(cerLlflcaLlon boards)
?-' Ms $&&8 %'(8)%)*$(+
organlzaLlonal behavlor Lralnlng
We need speclallzed organlzaLlonal
behavlor Lralnlng
Lxecuuves Change Lhelr vlew of
Lhe lmporLance of ro[ecL Man-
agemenL
LngagemenL ro[ecL ManagemenL
Managlng nonLradluonal ro[ecLs
new uevelopmenLs ln ro[ecL
ManagemenL
! #$%&'$(%) *$(+ #$,%) %-%& .*' /&('$) $01 #$23 @
can make Lhe dlerence beLween
wlnnlng and loslng a conLracL. 1o
lllusLraLe how lmporLanL pro[ecL ls
Lo cusLomers, conslder Lhe followlng
four requlremenLs LhaL now appear ln
requesLs for proposals (8ls):
- Show us Lhe number of Ms ln
your company and ldenufy whlch
M wlll manage Lhls conLracL
lf you are Lhe wlnner Lhrough
compeuuve blddlng
- Show us LhaL you have an
enLerprlse pro[ecL managemenL
meLhodology LhaL has a hlsLory of
provldlng repeaLed successes
- Show us Lhe maLurlLy level of
pro[ecL managemenL ln your
company and ldenufy whlch
pro[ecL managemenL maLurlLy
model you used Lo perform Lhe
assessmenL
- Show us LhaL you have a besL
pracuces llbrary for pro[ecL
managemenL and your wllllngness
Lo share Lhls knowledge wlLh us
as well as Lhe besL pracuces you
dlscover on our pro[ecL
lor more Lhan LwenLy years,
becomlng a M was seen as Lhe llghL
(% %<& &$8 *. %<& %-$$&+3 A*8(61 %<(%
has changed. 8ecomlng a M ls Lhe
llghL aL Lhe enLryway Lo Lhe Lunnel.
A<& +)0<% (% %<& &$8 *. %<& %-$$&+
may requlre muluple cerucauons.
As an example, aer becomlng a
M, a pro[ecL manager may deslre Lo
become cerued ln:
- rogram ManagemenL
B 5-,)$&,, C$(+6,%, DE)++, *' 5-,)$&,,
ManagemenL
B 5-,)$&,, ;'*2&,,&,
- Managlng Complex ro[ecLs
- Slx Slgma
- 8lsk ManagemenL
Some companles have Cerucauon
8oards whlch meeL frequenLly and
dlscuss whaL cerucauon programs
would be of value for Lhelr pro[ecL
managers. Cerucauon programs
whlch requlre speclc knowledge
of company processes or company
lnLellecLual properLy may be lnLernally
developed and LaughL by Lhe
company's own employees.
Lxecuuves have come Lo Lhe
reallzauon LhaL Lhere ls a reLurn on
lnvesLmenL on pro[ecL managemenL
educauon. As such, execuuves are
now lnvesung heavlly ln cusLomlzed
pro[ecL managemenL Lralnlng
especlally ln Lhe behavloral courses.
As an example, one execuuve
commenLed LhaL he felL LhaL
presenLauon skllls Lralnlng was
Lhe hlghesL prlorlLy for hls pro[ecL
managers. lf a pro[ecL manager makes
a hlghly pollshed presenLauon before
Lhe cllenL, Lhe cllenL belleves LhaL
Lhe pro[ecL ls belng managed Lhe
same way. lf Lhe cllenL makes a poor
presenLauon, Lhen Lhe cllenL mlghL
belleve Lhe pro[ecL ls managed Lhe
same way. CLher Lralnlng programs
LhaL execuuves feel would be
beneclal for Lhe fuLure lnclude:
- Managlng complex pro[ecLs
- LsLabllshlng key performance
lndlcaLors (kl) and dashboards
- Pow Lo perform feaslblllLy sLudles
and cosL-beneL analyses
- Pow Lo valldaLe and revalldaLe
pro[ecL assumpuons
- Pow Lo esLabllsh pro[ecL
governance
- Pow Lo manage muluple
,%(E&<*+8&',
- Pow Lo deslgn and lmplemenL
uld" or adapuve enLerprlse
pro[ecL managemenL
meLhodologles
- Pow Lo develop coplng skllls and
sLress managemenL skllls
nqoqement Project Monoqement
WlLh pro[ecL managemenL vlewed as
a sLraLeglc compeLency, lL ls naLural
for Lhese companles Lo be sLrong
bellevers ln engagemenL pro[ecL
managemenL" or engagemenL
selllng." ?ears ago, Lhe sales force
would sell a producL or servlces Lo
a cllenL, and Lhen move on Lhe nd
anoLher cllenL. 1oday, Lhe emphasls ls
on sLaylng wlLh Lhe cllenL and looklng
for addluonal work from Lhe same
2+)&$%,3
ln a marlLal conLexL, an engagemenL
can be vlewed as Lhe beglnnlng of
a llfe-long parLnershlp. 1he same
holds Lrue wlLh engagemenL pro[ecL
managemenL. Companles llke l8M
and Pewleu-ackard no longer
vlew Lhemselves as selllng producLs
or servlces. lnsLead, Lhey vlew
Lhemselves as buslness soluuon
provlders for Lhelr cllenLs, and you
cannoL remaln ln buslness as a
buslness soluuon provlder wlLhouL
havlng superlor pro[ecL managemenL
capablllLy.
As parL of engagemenL pro[ecL
managemenL, you musL convlnce
Lhe cllenL LhaL you have Lhe pro[ecL
managemenL capablllLy Lo provlde
soluuons Lo Lhelr buslness needs on a
repeuuve basls. ln exchange for Lhls,
you wanL Lhe cllenL Lo LreaL you as a
sLraLeglc parLner raLher Lhan as [usL
($*%<&' 2*$%'(2%*'3
uecades ago, Lhe sales force (and
markeung) had very llule knowledge
abouL pro[ecL managemenL. 1he
role of Lhe sales force was Lo
wln conLracLs, regardless of Lhe
concesslons LhaL had Lo be made. 1he
pro[ecL manager Lhen lnherlLed" a
pro[ecL wlLh an underfunded budgeL
and an lmposslble schedule. 1oday,
sales and markeung musL undersLand
pro[ecL managemenL and be able
Lo sell lL Lo Lhe cllenL as parL of
engagemenL selllng. 1he sales force
musL sell Lhe company's pro[ecL
managemenL meLhodology and Lhe
accompanylng besL pracuces. Sales
! #$%&'$(%) *$(+ #$,%) %-%& .*' /&('$) $01 #$23 3
*'+,-' ./010'2'/3
4-,5'63 71/10'2'/3
*'+,-' ./010'2'/3
4-,5'63 71/10'2'/3
ConLlnuous compeLlLlve
blddlng
D*+&-,*-'2& *' ,)$0+&-,*-'2&
conLracLlng (fewer suppllers
Lo deal wlLh)
F*2-, *$ $&('-Lerm value of
Lhe dellverable
locus on llfeLlme value of Lhe
dellverable
ConLracLor provldes mlnlmal
supporL for cllenL wlLh Lhelr
cusLomers
SupporL cllenL wlLh Lhelr
cusLomer value analyses
(CvA) and cusLomer value
measuremenLs (CvM)
uLlllze one lnflexlble, llnear
LM sysLem
Access Lo conLracLor's many
nonllnear sysLems
71/10&/0 8-1#&3&,/1"
4-,5'639
71/10&/0 ),/3-1#&3&,/1"
4-,5'639
Slngle person sponsorshlp Covernance by commlLLee
osslbly a slngle sLakeholder MulLlple sLakeholders
ro[ecL declslon-maklng 8oLh pro[ecL and buslness
8&2),)*$-maklng
lnflexlble pro[ecL managemenL
meLhodology
llexlble or fluld" pro[ecL
managemenL meLhodology
erlodlc reporLlng 8eal Llme reporLlng
Success ls deflned by Lhe Lrlple
2*$,%'()$%
Success ls deflned by Lhe Lrlple
consLralnL and value
kl are derlved from LvM unlque value-drlven kl
and markeung are now parL of pro[ecL
managemenL.
LngagemenL pro[ecL managemenL
beneLs boLh Lhe buyer and Lhe seller
as seen ln Lhe Lable below.
8lOk 4Nu 4l1k N646MN1
PkOlc1 M4N46MN1
1he beneLs of engagemenL pro[ecL
managemenL are clear:
- 8oLh Lhe buyer and Lhe seller save
on slgnlcanL procuremenL cosLs by
deallng wlLh slngle-source or sole-
source conLracLs wlLhouL havlng
Lo go Lhrough a formallzed blddlng
process.
- 8ecause of Lhe poLenual long-Lerm
sLraLeglc parLnershlp relauonshlp,
%<& ,&++&' ), )$%&'&,%&8 )$ %<&
llfeume value of Lhe buslness
soluuon raLher Lhan [usL Lhe value
aL Lhe end of Lhe pro[ecL.
- ?ou can provlde llfe-long supporL
Lo your cllenL as Lhey Lry Lo develop
value-drlven relauonshlps wlLh
%<&)' 2+)&$%,3
- 1he buyer wlll geL access Lo many
of Lhe pro[ecL managemenL Lools
used by Lhe seller. 1he corollary ls
(+,* %'-&3
Monoqinq Nontrodinono/ Projects
lor more Lhan Lhree decades, we have
become experLs ln how Lo manage
Lradluonal pro[ecLs. 1hese Lradluonal
pro[ecLs can be for lnLernal as well as
exLernal cllenLs. WlLh Lhese pro[ecLs,
Lhe sLaLemenL of work ls reasonably
well-dened, Lhe budgeL and schedule
are reallsuc, reasonable esumaung
Lechnlques were used, and Lhe nal
LargeL of Lhe pro[ecL ls sLauonary.
We use a pro[ecL managemenL
meLhodology LhaL has been
developed and undergone conunuous
lmprovemenLs aer use on several
pro[ecLs. 1hls Lradluonal meLhodology
focuses on llnear Lhlnklng, we follow
Lhe well-dened llfe cycle phases and
we have forms, LemplaLes, checkllsLs
and guldellnes for each phase.
now LhaL we have become good
aL Lhese Lradluonal pro[ecLs, we
are focuslng our auenuon Lo Lhe
nonLradluonal or complex pro[ecLs.
1he Lable below shows some of
Lhe dlerences beLween managlng
Lradluonal and nonLradluonal
pro[ecLs:
1k4ul1lON4L vk5u5
NON1k4ul1lON4L PkOlc15
Companles llke l8M, Pewleu-ackard,
Mlcroso and Slemens are lnvesung
heavlly Lo become soluuon provlders
and asslsL cllenLs on a world-wlde
basls ln managlng nonLradluonal,
complex pro[ecLs. Some of Lhe
dlsungulshlng characLerlsucs of
complex pro[ecLs, [usL Lo name a few,
lnclude:
- Worklng wlLh a large number
of sLakeholders and parLners,
all aL dlerenL levels of pro[ecL
managemenL maLurlLy, and many
of whom may noL even undersLand
Lhe Lechnology of Lhe pro[ecL
- ueallng wlLh muluple vlrLual Leams
locaLed across Lhe world, and
where declslons on Lhe pro[ecL may
be made ln favor of pollucs, culLure
or rellglous bellefs
- Long Lerm pro[ecLs LhaL begln
wlLh an lll-dened scope, undergo
numerous scope changes, and
where Lhe end polnL ls a movlng
raLher Lhan sLauonary LargeL
- Worklng wlLh parLners and
sLakeholders may have llmlLed
pro[ecL managemenL Lools and
anuquaLed processes LhaL are
lncompauble wlLh Lhe pro[ecL
manager's Lool klL.
New ueve/opments in Project
Monoqement
lor companles Lo be successful
aL managlng complex pro[ecLs on
a repeuuve basls and funcuon as
a soluuon provlder, Lhe pro[ecL
managemenL meLhodology and
accompanylng Lools musL be uld
or adapuve. 1hls means LhaL you
may need Lo develop a dlerenL
pro[ecL managemenL meLhodology
Lo lnLerface wlLh each sLakeholder
glven Lhe facL LhaL each sLakeholder
may have dlerenL requlremenLs and
expecLauons, and Lhe facL LhaL mosL
complex pro[ecLs have long ume
spans. 1he gure below lllusLraLes
some of Lhe new developmenLs ln
pro[ecL managemenL:
Nw uvLOPMN15 lN PkOlc1
M4N46MN1
1he ve lLems ln Lhe gure L LogeLher
when done properly.
- new Success CrlLerla: AL Lhe
lnluauon of Lhe pro[ecL, Lhe
pro[ecL manager wlll meeL wlLh Lhe
! #$%&'$(%) *$(+ #$,%) %-%& .*' /&('$) $01 #$23 G
cllenL and Lhe sLakeholders Lo come Lo a sLakeholder
agreemenL on whaL consuLuLes success on Lhls pro[ecL.
lnlually, many of Lhe sLakeholders can have Lhelr own
denluon of success, buL Lhe pro[ecL manager musL
forge an agreemenL.
- key erformance lndlcaLors: Cnce Lhe success crlLerla
are agreed upon, Lhe pro[ecL manager and Lhe pro[ecL
manager wlll work wlLh Lhe sLakeholders Lo dene
Lhe key performance lndlcaLors LhaL each sLakeholder
wlshes Lo Lrack. lL ls posslble LhaL each sLakeholder wlll
have dlerenL kl requlremenLs.
- uashboard ueslgn: Cnce Lhe kl are ldenued, Lhe
pro[ecL manager, along wlLh Lhe approprlaLe pro[ecL
Leam members, wlll deslgn a dashboard for each
sLakeholder. Some of Lhe kl ln Lhe dashboards wlll be
updaLed perlodlcally whereas oLhers may be updaLed
on a real ume basls.
- MeasuremenL: 1o updaLe Lhe dashboards and Lhe kl
requlres measuremenL. 1hls ls Lhe hardesL parL because
noL all of Lhe Leam members or sLraLeglc parLners may
have Lhe capablllLy Lo Lrack all of Lhe kl.
- Covernance: Cnce Lhe measuremenLs are made, any
declslons necessary musL be made or supervlsed by Lhe
governance board. 1he governance board can lnclude
key sLakeholders as well as sLakeholders LhaL are [usL
observers.
conc/usions
1he fuLure of pro[ecL managemenL may very well resL ln
Lhe hands of Lhe soluuon provlders. 1hese provlders wlll
cusLom-deslgn pro[ecL managemenL meLhodologles for
each cllenL and posslbly for each sLakeholder. 1hey musL
be able Lo develop pro[ecL managemenL skllls LhaL go well
beyond Lhe currenL M8Ck Culde and demonsLraLe a
wllllngness Lo make buslness declslons as well as pro[ecL
declslons. 1he fuLure of pro[ecL managemenL looks qulLe
good, buL lL wlll be a challenge.
CLher kerzner WhlLe apers:
Project neo/th checks
kecovery Project Monoqement: 1echniques
ond 1ocncs lor keversinq loi/inq Projects
1wenty common Mistokes Mode 8y New or
lnexperienced Project Monoqers