Tag Archives: Project Management

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When trust goes up, speed will also go up and cost will go down – Stephen M.R Covey

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Almost all of the reading material that I have seen in my career about what drives a project to success are addressing the technical aspects of project management. They speak about the importance of managing scope, or how earned value management can keep your project cost under control, or how critical it is to maintain a multi-level schedule throughout the project, or the do’s and don’ts of vendor management. They speak about how risk management keeps you on track, or how implementation methodologies like the waterfall or scrum sprint approach deliver value faster. The list goes on and on. But what you hardly read about is what I call the hidden secret to project success and that is TRUST.

I dare to say that over the years we have created a wealth of knowledge and experience about the application of technical project management methods and tools. The last decade, a lot of people qualified and certified themselves as project management professional (for example PMP). Overall, that is and has been a great step forward in getting better in managing business initiatives that drive change. But as always, there is opportunity to do more and to do better. Where in my mind we can significantly improve is on the application of softer leadership skills and the understanding of the mechanics of success drivers that are part of an organizations DNA as trust is. It is quite obvious that you will get the most thriving and performing project team when trust is high.

A few years ago I read the book ‘The Speed of Trust’ written by Stephen M.R. Covey (see www.myspeedoftrust.com). The book intrigued me and opened my eyes on aspects of leadership that can be much more influential on the project outcome than the technical aspects only. Shortly after reading it I had the pleasure to meet Covey in a workshop, where he, by using very interesting and practical examples, clarified the key message of his book: “When trust goes up, speed will also go up and cost will go down.”

What Covey says is that simply put, trust means confidence, and the opposite of trust, or distrust, is called suspicion. Covey gives an example for communication, which we all know is a critical success factor in any organization: In a high-trust relationship, you can say the wrong thing and people will still get your meaning. In a low-trust relationship, you can be very measured, even precise, and they’ll still misinterpret you.

He also speaks about the economic aspect of trust by saying that trust always affects two outcomes: speed and cost. When trust goes down, speed goes down and cost goes up. When trust goes up, speed goes up and cost goes down. He mentions that a movement in trust can either be a tax or a dividend. By demonstrating trustworthy behaviour, people, teams and organizations, earn dividend and put that in a ‘trust bank account’. In the opposite case when trust goes down, one gets taxed resulting in a draw from the account. Covey basically says that whether trust is high or low, it is a hidden driver of organizational success:

Strategy x Execution = Succes

(Strategy x Execution) x Trust = Success

A company can have an excellent strategy and a strong ability to execute; but the net result can be torpedoed by a low-trust tax or multiplied by a high-trust dividend.

For more details about the the importance of trust and how you can influence that, I happily refer to Covey’s book.

How do you recognize low-trust affecting your project?

First thing is that you need to be aware of the trust levels in your project environment. When you are aware of it, you are able to influence and potentially change it with help from executive leadership. Recognize that trust is part of relationships at individual, team, organizational and vendor level.

Second thing is that you want to observe a number of dynamics:

  1. Silo-ed behaviour of individuals, teams, departments or between client and vendor teams, is often a good indicator of a low trust culture. The impact is that the execution of tasks take more time than planned, causing schedule changes and budget overruns. It can go as far as deliverables not being delivered at all, or delivered but not with the expected quality and therefore not providing the business value. You can see the ripple effect there. As project manager, you want to continuously report on aspects that impact trust to the executive leadership. Start with doing that verbally with examples and solutions. If there is limited change over time, follow the escalation path to the executive sponsor. Keep bringing it up. Aside from the reporting part, do everything you can to influence the trust factor yourself. That often applies first to individuals in your project team as well as the vendor
  2. Ineffective decision making is one of the major, perhaps the biggest counter productive habits of project, client and vendor leadership. Among other aspects (getting people together, prepare documentation, set priority, etc) that can fairly easily be fixed, a low trust culture is the root cause of it. It is very tricky for project managers to get the right decision made at the right time with the right audience, such that once a decision has been made, it won’t circle back another time and come up as a surprise. As practical project manager you want to be very clear, crisp and concise in the decisions that must be made in order to hit your timelines. Direct communication must be a key aspect of your leadership style. What I mean is that you are able to clarify what the decision is about and what the impact is to the project and business if it is not made on-time. Report the status of the key decision to the executive leadership on a weekly basis by maintaing a log. Leverage your informal network to influence the decision making as required
  3. When ineffective communication is happening while all the means are available, it is a clear indication of a trust issue. How many times have you walked out of a meeting room where hindsight you had a completely different understanding of the outcome than the other party? A practical measure to deal with in this situation is to document the meeting real-time with all participants present. Every time you document an action item, issue, risk or decision make sure you do that in front of the participants. You can do that by projecting the document on the wall such that all participants can see what you write and document, and/or by sharing your desktop if there are participants remote available.

These 3 items are project trust indicators that you want to be aware of all the time. Items 2 and 3 are easier to deal with and have practical measures that you can immediately apply. The other item is much harder to influence and change at it often sits deep in the footprint and DNA of the organization. You definitely need executive leadership support there to install an organizational change.

I want to reiterate that it is key for a practical project manager to be aware of the impact of trust on your project. It can impact any aspect, for example: scope, schedule, budget, risk and issue management, decision making, communication, team performance, vendor performance, sustainment, etc. so be on top of it from day one.

Trust is like water, it creeps into every corner and if you don’t manage it well, it can be destructive. If you do manage it well, it can bloom your organization, project, team members, performance and output. Trust is a key differentiator in the market place.

I hope you are appreciating my posts. Feel free to comment as I do want to understand what can be improved, or what you want me to write about.

Bas de Baat

Program Manager Enterprise Applications, PMP©

 

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First comes thought; then organization of that thought, into ideas and plans; then transformation of those plans into reality. The beginning, as you will observe, is in your imagination – Napoleon Hill

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In the introduction post I mentioned the   ‘THINK – CHANGE – ACHIEVE concept’ that I developed and which will be a core element of my blog.  A core skill of the pragmatic project leader is to simplify things without losing sight of reality and quality. Simplicity leads to a better and broader understanding of the WHAT, and therefore to a higher project success rate.

Many organizations today seem to have well educated staff and therefore tremendous brainpower. At times much more than needed. At times not very well utilized.  Yet I see many organizations struggling with defining WHAT they really want to achieve in projects. As a consequence organizations tend to make things much more complex than necessary and therefore struggle to manifest ideas and business needs. In my mind, you must THINK and CHANGE, before you can ACHIEVE and reach your full potential. What I mean to say is that if you want to attract a business need, the organization must THINK intensively about WHAT that business need is without complicating it. Once that has been defined, well documented and communicated, the next step is to invoke a CHANGE process where key stakeholders commit and align to the desired end state and buy into a transformation. In my future blog posts I will speak more in detail about definition, documentation and communication of the WHAT.

These first two steps, THINK and CHANGE, must be consciously followed and can take a lot of time to complete. This is a period where the executive business leader needs to ensure that the visionary leader and pragmatic project leader collaborate and work effectively together. It is time well spent, because it makes the final step of the project called ACHIEVE much easier. Also the momentum is being created for the team to start delivering the solution. When leaders can demonstrate alignment on the outcome and can clearly articulate the vision of the end state and the path towards it, team motivation gets a boost and all signs to make it happen go green.

More about THINK, CHANGE and ACHIEVE to follow.

Bas de Baat

Bas de Baat

Program Manager Enterprise Applications, PMP©

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Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion – Jack Welch

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When people ask me what I do for work, I gladly tell them that I lead ‘IT business transformation projects’ that have the intent to deliver solutions to increase customer service levels, or to improve operational excellence, achieve cost efficiencies, or to provide a platform for future growth. Sometimes it is a combination. These kinds of projects typically have a significant impact on people, process and technology at the same time.

In most of these projects, the organization is capable of defining a vision of the end state, high level business requirements and some major business benefits, but is struggling with clarifying and communicating the underlying details to the level it is needed. In other words, organizations are often wrestling with clearly articulating what it wants, what the required change is, how it can be achieved, and in what the time line. This may have many different consequences, ranging from realizing fewer benefits than expected, to struggling with stabilizing the deployed solution, or to costly overruns and attempts to survive and stay in business after a troubled project implementation.

McKinsey and the University of Oxford found that “on average, large IT software projects with budgets larger than $15 M, run 66 percent over budget and 33 percent over time, while delivering 17 percent less value than predicted. Most companies survive the pain of cost and schedule overruns. However, 17 percent of IT projects go so bad that they can threaten the very existence of the company.” These findings are consistent across industries and were published in 2012. The researchers indicate that project performance can be improved when organizations focus more on managing strategy and stakeholders, securing talent, building excellent teams, and excelling at core project management practices.

Think about these findings for a minute. If you internalize them, it appears to me that leading IT business transformation projects is very much like playing a game on a pinball machine, where there are a lot of variables to keep an eye on. The player (project leader) purchases (budget) a number of balls (scope), and triggers them by using a plunger (kick off) into the playfield. Once the iron ball starts rolling, there are many targets to hit (deliverables) and points to score to demonstrate performance (benefits). Flippers (resources) are being used to continuously maneuver the ball across the playfield (context). At times these flippers cause the iron ball to hit an object that lights up or makes a sound (team motivation). If you do well, the machine (stakeholders) gives you free iron balls (scope change) to deliver an even higher score. If you don’t do well, the iron ball quickly finds its way down to the drain (issues and risks) and at a certain point the machine (stakeholders) tells you it is game-over. The player needs to be multi-skilled to play (deliver) a successful game. He needs to be able to keep the ball moving (plan) at a certain speed (schedule) and in a certain direction (critical path). Sometimes the iron ball rolls into a hole or saucer (delay) and the player needs to be creative (re plan) to get it back on track. Bumps by the player (escalation) against the machine are needed at times to influence the behavior of the iron ball (decisiveness). Real-time, practical answers are needed to keep the iron ball moving from target to target (commitment and alignment), and to by-pass bumpers that resist (organizational change) it from rolling in the intended direction (vision).

The reason why I make this analogy is to create the awareness and mindset at the executive level, that adequate project leadership is crucial to deliver a successful business initiative.

The next post is about what that project leadership is about. Stay tuned!

Bas de Baat

Program Manager Enterprise Applications, PMP©