BUILDING A SUSTAINABLE PROJECT

MANAGEMENT CAPACITY IN CYPRUS

Steven J. Kelly, CPT Timm J. Esque, CPT M. Mari Novak, CPT
Anna Čermáková, CPT, PhD

The performance-driven project management program examined in this article was funded to
support a variety of technical assistance efforts designed to strengthen the performance of small
and medium enterprises in the Turkish Cypriot community in Cyprus. The customized program
combined progressive workshops with hands-on and distance coaching by local consultants,
with participants expected to apply a performance-driven project management approach
and tool set. The Performance Driven Project Management: Journal of Performance (KNO
Worldwide, 2010) documents that 12 of the 14 projects met the rigorous program requirements.

THE PERFORMANCE-DRIVEN project management
(PDPM) effort we examine here was funded in support
of the Turkish Cypriot community as an element of an
effort designed to provide support to strengthen the per-
formance of small and medium enterprises. The program
was executed by KNO Worldwide through the USAID-
funded Capacity Development Program implemented by
World Learning in 2009–2010. The effort complements
diverse international donor programs by addressing criti-
cal performance gaps that limit the capacity of Turkish
Cypriot business and nonprofit professionals to fully
participate in regional and international business affairs.
Project management is highlighted as critically important
for both the business and nongovernmental organization
sectors; it is the key capacity-building element.
The performance-based approach to project man-
agement was tailored for business and consultant par-
ticipants in a series over 9 months, with hands-on and
distance coaching by local consultants, themselves men-
tored by international performance and project man-
agement experts. Participants were expected to apply a
performance-driven project management approach and
tool set. The application of the method and use of the
tools, as well as business performance, were monitored
throughout the program. The recently published Journal
of Performance documents 12 projects (of 14) that met
the rigorous PDPM requirements. This journal was
developed as a tool to demonstrate a successful approach
to internal, administrative, and other organizational
interests and served as both an evaluation of and docu-
mentation for interested colleagues. Local consultants
have since recruited and taught their own workshop in
Turkish to 20 new participants. Eight new PDPM projects
are in progress, with plans for further education within
the professional community.
BACKGROUND
Chief among concerns of the Turkish Cypriot community
is the need to move closer to economic parity across the
two communities on the island state and foster a culture
of mutual understanding and respect. Cyprus was divided
in 1974 after political and military aggressive discord. The
southern territory is now part of the EU, while the north-
ern part remains a nonrecognized entity, primarily sup-
ported by Turkey. Cyprus, the third largest island in the
Mediterranean, is located just 40 miles south of Turkey
and 60 miles west of Syria. Greater economic parity is

Performance Improvement, vol. 51, no. 8, September 2012

©2012 International Society for Performance Improvement
Published online in Wiley Online Library (wileyonlinelibrary.com) • DOI: 10.1002/pfi.21292 5

PFI21292.indd 5 9/13/12 10:02:24 AM

 an important condition for easing reunification and for
improving both the standard of living and opportunities
on Cyprus. Turkish Cypriots are eager to move toward
alignment with EU and international standards.
Many factors are inhibiting private sector develop-
ment in the north, which is ruled by a quasi-independent
administration that is recognized only by Turkey and
has effectively been isolated from the global community.
Businesses also suffer from limited access to information
and few opportunities to learn new ideas and technolo-
gies. Basic infrastructure required for global integration,
such as telecommunications, broadband, and Internet
providers, is underdeveloped in the north. Physical infra-
structure is also unreliable, forcing many businesses to
invest in generators and water systems, driving up the
cost of their products and services. Several factors severely
limit the ability of Greek and Turkish Cypriot businesses
to form mutually beneficial business partnerships that
capitalize on the comparative advantages of their respec-
tive markets.
Despite these circumstances, the Turkish Cypriot com-
munity has realized significant economic and social
accomplishments. For the most part, there is respect for
rule of law, and northern Cyprus boasts an educated
population. Income per capita is comparable to new EU
member states, indicating a compatible level of develop-
ment with other integrating countries. However, there
is still a large gap between what has been achieved and
the potential accomplishments of Turkish Cyprus. The
PDPM capacity-building program was designed and exe-
cuted to strengthen several foundation skills in effective
management of projects (Coughlin & Kelly, 2009).
WHAT IS PERFORMANCE-DRIVEN
PROJECT MANAGEMENT?
In the early 1990s, one of the world’s most successful
and profitable companies suddenly found itself unable to
deliver on its most important new product. The project
had been monitored carefully, and the team had been
reporting that they were on track, but when the time
came to deliver, it was discovered they would need much
more time to finish the product. After many months fig-
uring out what had gone wrong, it was determined that
extreme competitive pressure, combined with increasing
uncertainty (i.e., not knowing from the start of the proj-
ect all that was needed to be known to complete it), had
led to unproductive behaviors on the part of both manag-
ers and team members.
The pressure on employees to say they were on sched-
ule was so great that nothing else mattered. Rather than
being committed to producing a great product on time,
6 www.ispi.org • DOI: 10.1002/pfi • SEPTEMBER 2012
PFI21292.indd 6
The PDPM principles
have been demonstrated
to improve project speed,
quality, and cost across many
project environments.
they were committed to not being blamed for the product
being late (Esque, 1999). This experience caused those
involved to reexamine what project management was
about. What they eventually understood was that proj-
ects are essentially a network of personal commitments
among people. No matter how brilliant a project plan is, if
the individuals on the team are not committed to deliver
what the plan requires, the project will fail.
Then the issue became how to create a project plan
made up of personal commitments. In addition, once
they had the plan, how should they monitor it in a way
that causes people to anticipate and prevent problems
rather than hiding them to stay out of trouble? No mat-
ter how skilled and knowledgeable performers are, they
will fail if they do not have crystal-clear expectations
and frequent and reliable feedback about whether their
outputs are supporting the goals of the project (Daniels,
1995; Juran, 1964). Addressing these issues required a
new perspective on managing projects. The performance
perspective focuses on organizations as systems and the
key factors important to human performance (Rummler
& Brache, 1990; Stolovitch & Keeps, 1992). This per-
formance approach has been applied more frequently
in donor-funded projects over the past decade (Kelly,
Coughlin, & Novak, 2012; Novak & Kelly, 2007, 2010).
The PDPM principles have been demonstrated to
improve project speed, quality, and cost across many
project environments (Daniels & Esque, 2006; Esque,
1999). What the participants in the PDPM program
have learned are the key stages of projects, plus perfor-
mance-driven techniques for creating a project plan,
monitoring performance to the plan, and facilitating
effective trade-off decisions throughout the project to
keep it on track.
For example, one of the tools, the “map day” tech-
nique, is a structured process for helping the entire
project team create the project plan in a way that leads
to higher commitment and better teamwork. All of the
participants who completed this program led or partici-
pated in a map day meeting for their project in order to
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FIGURE 1. PDPM—KEY DISTINCTIONS FROM A
PERFORMANCE PERSPECTIVE
initiate it as they moved it down its performance-driven
path. (See Figure 1.)
The tools for a performance-driven project also look
different from conventional project management tools.
PDPM replaces the task network diagrams and Gantt
charts with a deliverables map, a milestone chart, a deliv-
erables matrix, and a performance against commitment
(PAC) chart. The tools are designed to make sure that each
project team member has clear expectations, frequent
self-monitored feedback, and control of the resources it
requires to meet the expectations at all times.
METHOD
The design of the program included two critically impor-
tant factors (Novak & Kelly, 2007, 2010): a systemic ori-
entation customized for the Turkish Cypriot community
environment and a program executed over an extended
period of time.
Program Roles
There were four primary roles in this program: project
managers, international experts, local consultants, and a
local program manager.
The main program participants were referred to as
project managers (PMs), although the existing project
management experience of these people varied. Fourteen
PMs were selected into the program out of an applicant
pool of 20, with many program managers selecting one
project on which to focus. Each had a specific project he
or she wanted help managing to ensure success.
The program was designed and run by four interna-
tional experts who helped screen participants, designed
and taught all of the workshops, and oversaw local con-
sultants as hands-on coaches to the project managers.
Four participants were selected as local consultants, a
role deemed critical to building a capacity that would sus-
tain itself long after the program ended. The local consul-
tants, who had experience in other management coaching
areas, were assigned to specific projects. Throughout the
PFI21292.indd 7
program, they worked to provide hands-on coaching
and to interface between the project managers and the
international experts when these more experienced con-
sultants were not in country.
The fourth major role was the local program manager
who worked for the funding sponsor. By design, this per-
son was also a participant in the PDPM program, so that
over time, she would apply the PDPM principles to the
PDPM program with guidance from her local consultant
and international expert.
Project Management Competency
Consistent with the human performance perspective,
program design began with each project manager’s suc-
cess criteria: What would each PM need to produce to
demonstrate competence with this project management
based on performance principles and practices? We
expected the PMs to demonstrate that they were fol-
lowing key principles on their respective projects and
using these principles to explain the extent to which pre-
defined project goals were met. Following the principles
included proper use of specified tools, such as monitor-
ing, early warning, and feedback for documenting plans
and progress.
Part of this effort was the awarding of certifications
of project management from the International Society
for Performance Improvement (ISPI). The predefined
criteria were approved by the ISPI. The opportunity for
certification was built-in to the project from the start and
one indicator for success was the number of participants
certified.
Workshop Design
There were a series of three workshops, one held every
2 months. They were progressive in that they were
designed to build on one another and provide the PMs
with what they would need at different stages of their
projects. An important element was that workshops 2
and 3 required project managers to present the status
of their project using the PDPM tool set. This allowed
for a demonstration of competence of both knowledge
and skill transfer to the workplace. After each workshop,
site visits were conducted to help the PMs get started on
implementing the lessons that had just been taught in
the workshops. Between workshops, the local consultants
conducted coaching sessions with their assigned projects.
The international experts structured and oversaw
the coaching process, typically using distance meetings
with the local consultants before and after each coaching
session. Educational assignments (e.g., relevant articles
and questions and discussions and an online video, with
follow-up discussions) were used between workshops to
Performance Improvement • Volume 51 • Number 8 • DOI: 10.1002/pfi 7
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FIGURE 2. LEVELS OF PDPM MASTERY AND
PARTICIPANT SCORING RANGES
broaden exposure to project management and perfor-
mance concepts.
One aim of the program was to measurably increase
the competence of the participants. Specifically, this
program aimed to build participant abilities from basic
awareness to a midlevel of competence. Full compe-
tence and then mastery would require continued use of
the practices, beyond the scope of the program. Figure
2 shows a progression of competence that was used to
gauge individual PM competence.
Competency Assessment
Competence assessment was based on a combination of
pre- and posttest performance (in each workshop) and
substantial observation. Participants were informed at
the outset that one of the program requirements would
be to assist the local consultants and international
experts in documenting their respective project cases,
again using the PDPM principles and tool set. Progress
reviews and the process of documenting the case histo-
ries required the project managers to explain what was
going on in performance terms with the tool set and
allowed the international experts to assess individual
competence levels.
The primary aim of the program went beyond indi-
vidual competence to sustained capacity building. The
design was intended not only to verify that participants
were implementing the project management approach
properly, but to monitor use over an extended period
so they could see results and build performance-driven
coaching experience in the local consultants. Another
design component directed at capacity building was
assisting the local consultants in teaching PDPM in
practical workshops themselves. The local consultants
received additional education during each visit by the
8 www.ispi.org • DOI: 10.1002/pfi • SEPTEMBER 2012
PFI21292.indd 8
The primary aim of the
program went beyond
individual competence to
sustained capacity building.
international experts, and the last local consultant
workshop was a train-the-trainer session. The final ele-
ment of the program was expert observation and feed-
back on a workshop taught by the local consultants to
a completely new set of participants and in the Turkish
language.
RESULTS
A full report of results in the form of a performance
journal has been published (https://acrobat.com/app
.html#d=d951NXvaG5Hk*L0V6JH8UA). As well, sepa-
rate case descriptions of each project managed by a
PDPM-certified graduate has been published (http://tcc-
pdpm.blogspot.com/p/individual-pdpm-case-histories
.html).
Twelve of the fourteen selected PMs met the rigorous
performance-based criteria. Of the two who did not, one
left the training because of political issues within the
office, and the other dropped out early in the program.
The progress and results were documented and published
to explain and highlight the approach. Not all of the
project histories include final project outcomes because
several of the projects had a planned duration longer
than the PDPM program. However, some of the projects
were finished, and in each of those cases, tangible accom-
plishments were attributed to the effectiveness of the
performance-driven approach that the project managers
and local consultants used.
Among the highlights and measurable results were
these:
• The owner-manager of a retail furniture store who
increased sales over 100% after implementing an
operational performance improvement project.
• A manager of a language training company that was
close to going out of business exceeded a client target
acquisition by over 50% when implementing a mar-
keting campaign using PDPM.
• A nonprofit organization implementing a donor-
funded food hygiene and safety effort was successful
in getting local Turkish Cypriot engineers ServSafe
9/13/12 10:02:24 AM
 certified internationally with the highest group scores
ever recorded by the ANSI-approved institute.
• A medical and testing lab used the method to take
advantage of an EU grant to modernize its food testing
lab without having it miss the finish date for the grand
opening of a multiyear construction project.
Each project reassessed its tasks and deliverables and
then maintained a focus on completing steps toward the
agreed criteria. Several corrections and changes were easy
to make with the tools presented, ending approaches that
had been thought useful and focusing instead on what
was important to achieve milestones and the outcome
required. There was no effort wasted to calculate percent-
ages complete and explanations for late delivery: every-
thing was focused on problem solving and performance.
As well, the level of design and implementation of
projects radically improved: about 80% of the projects’
end results (deliverables, scope) were completed within
the time frame and budget. The level of understanding
was raised significantly as self-reported and in the design
of the second wave of projects by the initial group of par-
ticipants and their colleagues.
The PDPM tool set made it easy for the project teams
to capture progress snapshots throughout the work.
After conducting an inclusive project-planning meeting,
project plans were captured in a deliverables matrix (an
excerpt is in Table 1).
This software tool, working under MS Excel and
designed to ensure that the expectations of each con-
tributor are clear, documents who has committed to
deliver what, to whom, and by when. The tool was used
throughout the project to document which deliverables
were completed or not. The tool always provides a precise
status of the project.
The PDPM tool set automatically populates another
tool from the deliverables matrix as it is updated. The
performance against commitment (PAC) chart, shown
in Figure 3, tallies the cumulative number of deliver-
ables due on a week-by-week basis (see connected dots
in Figure 3). Then as progress is reviewed each week, it
tallies the cumulative number of deliverables completed
(see the bars in the figure). If the bars are meeting the
dotted line, the project team is doing what it said it
would, when it said it would. Because the chart is tally-
ing deliverables done and not done, rather than percent-
age complete, it tends to be a more reliable indicator of
actual status.
These tools were typically updated weekly by the PMs,
reviewed with their respective local consultants, and
provided to the international experts on a regular basis
throughout the program. At different times on different
projects, the charting tools made it clear that all was not
well. This is one of the strengths of the PDPM approach:
issues became apparent as soon as, or even before, they
threatened the project goals, and recommended decision

TABLE 1 EXCERPT FROM DELIVERABLES MATRIX USED TO DOCUMENT PLANS AND TRACK
PROGRESS

ITEM COMMIT QUALITY

NUMBER DELIVERABLES OWNER DATE USERS DEFINED? DONE?

Lab constructional
1 Metin Erduran 8/21/2009 Hasan Yes Yes
design

Business plan, Hasan and

2 Hasan 9/16/2009 Yes Yes
contract signed EU

Evaluation
3 Hasan 12/4/2009 Hasan Yes Yes
committee

Evaluation grid and

4 Hasan 12/5/2009 Hasan Yes Yes
tendering dossier

5 Tender is published Hasan 12/17/2009 Tenderers Yes Yes

Chamber of Hasan and

6 12/17/2009 Hasan Yes Yes
Commerce notification Cigdem

VAT exemption docu-

7 EUPSO 2/18/2010 Hasan Yes Yes
ment received

Tenderers and
8 Tenders received 1/11/2010 Hasan Yes Yes
Hasan

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PFI21292.indd 9 9/13/12 10:02:24 AM

 FIGURE 3. PERFORMANCE AGAINST COMMITMENT CHART
processes could be used to make trade-off decisions and
keep the project on track.
SUSTAINABILITY
Given the primary aim of the performance-driven proj-
ect management approach, the most important result is
the extent to which the community was able to use these
practices and accomplish more, with greater quality, and
fewer resources. Program exit interviews ascertained that
the PMs and local consultants are now involved in at least
12 projects outside the scope of this program that are
using the PDPM approach. The design of the program
allowed time for participants to apply, test, challenge, and
achieve results. Discussions on improving technique also
have led to comparative analysis of “tried and not true”
methods that they had used in the past. In cases where
the supervisor was supportive and involved, the appli-
cation and results were improved and the time frame
shortened.
It is too soon to completely assess sustainability. In our
experience, culture, both national and organizational,
can slow and sideline change, and true sustainability
can be ensured only with continued shepherding of the
approach. To this end, the program designers have sub-
mitted numerous program supports designed to help
sustain the program over time. These include a recom-
mendation that the program sponsors fund a “PDPM
Club” so that anyone involved with and interested in
PDPM has a forum to share and discuss challenges and
successes. Several of the original program participants
have signed up to participate.
10 www.ispi.org • DOI: 10.1002/pfi • SEPTEMBER 2012
PFI21292.indd 10
CONCLUSION
In a community the size of that in Turkish Cyprus, hav-
ing upwards of 25 separate project initiatives (those in the
program plus those spawned by it) within a span of less
than a year would seem to be a good start at building and
spreading capacity in performance-driven approaches.
We believe that the reason the method is spreading
quickly is due to the results: improved revenues and sales,
equipment installations on time, early warnings that
saved costs, and program events that met high-quality
standards. In addition, the managers and the local con-
sultants have become a strong force in promoting the
methods among their colleagues.
LESSONS LEARNED
A primary concern of the design team at the outset was
that the PDPM approach might be deemed overkill
by nongovernmental organizations and small family
businesses. Would these target audiences tolerate the
increased structure and public accountability of the
approach? Would either group be willing to include all of
the project contributors?
We believe that having 12 projects meet the program
requirements answers this question in the affirmative. In
a recorded and facilitated discussion between the four
local consultants, it was reported that project partici-
pants especially appreciated having greater involvement
in planning and being asked what they could and could
not commit to complete, even if it meant being held
accountable for those commitments (Novak & Kelly,
2010). In the same recording just referenced, one of the
9/13/12 10:02:24 AM
 local consultants with the most project management
experience said that after the PDPM program, he felt that
he had a complete picture of project management and
increased confidence to apply it.
At this time, what we know is that the program design
achieved competence in all of those who fully partici-
pated. These participants achieved success through the
use of the techniques and tools. The signs of sustained
capacity building remain positive as of the submission
of this article. Time and the extent of additional invest-
ment will tell whether a large enough nucleus has been
established to move toward project success throughout
the community.
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 STEVEN J. KELLY, CPT, who has 35 years of diversified experience in the human performance
improvement arena, is a founder and partner in KNO Worldwide, headquartered in Prague. In this
role, he acts as a consultant to business and government in Central Europe and the former Soviet
Union to implement institutional and staff productivity strategies. He holds a master’s degree from
Pacific Lutheran University and was awarded a BS in international relations from the University of
Houston. He serves on the board of ISPI. He may be reached at Steven.Kelly.KNO@gmail.com

TIMM J. ESQUE, CPT, a partner of Ensemble Management Consulting, has been helping high-stakes
project teams do what they say they will do for over 15 years. Before consulting, he held a variety
of positions at Intel Corporation. His book, No Surprises Project Management, describes his perfor-
mance-driven approach to projects in detail. He has authored two other books and over 40 articles
and chapters in a variety of publications. He has been presenting regularly at ISPI International and
local events since 1992. He may be reached at Tjesque@ensemblemc.com

M. MARI NOVAK, CPT, a partner in KNO Worldwide, has worked in manufacturing, utilities, finance,
health care, education, and national governments and ministries. She has presented at several inter-
national conferences, including ISPI, and has published articles in a variety of professional journals.
Based in Bratislava, Slovakia, as a systems consultant for 30 years, she has focused her work on
Central and Eastern Europe, the Caucasus, Central Asia, Asia, and the United States. She is cur-
rently writing a book on project improvement and development in a transitioning world. She may be
reached at Mari.Novak.KNO@gmail.com

ANNA ČERMÁKOVÁ, CPT, PhD, is managing director of KNO Slovensko. In her more than 20
years of practical experience in the area of performance improvement and project management,
she has worked on or overseen numerous projects to identify opportunities for improving staff per-
formance and business results in such companies as US Steel, Citibank, Citroen, Mazda, Orange,
and McDonald’s. In EU development projects, she has worked as a project manager with partner
organizations in Austria, Germany, Denmark, Spain, Portugal, Hungary, Poland, and Bulgaria. She
may be reached at Cermakova@KNO.sk

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