New Articles posted to the Web #67

BeaverWe have been busy beavers updating the PM Knowledge Index on our website with White Papers and Articles.   Some of the more interesting uploaded during the last couple of weeks include:

And we continue to tweet a free PMI style of exam question every day for PMP, CAPM, and PMI-SP candidates: See today’s question and then click through for the answer and the Q&As from last week.

You are welcome to download and use the information under our Creative Commons licence

PMP Examination Update – 2019

PMI have announced the next update to the PMP examination will be on the 15th December 2019, based on the updated PMP RDS due for release in Q3 of 2019.

Contrary to popular belief, the Project Management Professional (PMP) exam is not based on the PMBOK® Guide, 6th edition. The content of the PMP test, is detailed in the PMP Examination Content Outline, which is a direct output from the PMP role delineation study (RDS), a job analysis of the project manager role.

PMI conduct a new RDS study every 5-7 years, independent of the PMBOK® Guide development schedule, to identify any changes to the profession and ultimately determine what content should be included in the test.

When the PMBOK® Guide is updated, PMI do align the terms used in the test with those used in the global standard to minimize confusion and we as trainers have to follow suite as well as updating references, etc in our training materials. However, during this type of update, PMI do not change the structure of the exam or the scoring model.

The update associated with a new RDS is quite different! After the new RDS is published there are likely to be changes to the design of the PMP exam reflected in the PMP Examination Content Outline and the Handbook for the PMP exam as these items relate directly to the RDS research.  These changes may affect the scoring model, the examination structure, the scope of knowledge tested, and what’s required to be successful in the exam.

The PMP Examination Content Outline and A Guide to the Project Management Body of Knowledge (PMBOK® Guide) have commonalities, and this is likely to continue, but it is important to note that those involved in the RDS study are not bound by the PMBOK® Guide. They are charged with defining the roles of individuals leading and directing projects, and using their experience and pertinent resources to help in this task.

The current edition of the PMBOK® Guide is, and will remain as one of the key references for the new PMP exam but this is only part of the overall requirements for PMP – the core document will be the updated RDS.

CAPM is the only exam PMI have that is intended to measure candidates’ understanding of the PMBOK® Guide and this examination will not be changing until the 7th edition of the PMBOK in 2 to 3 years time (see more on CAPM).

What is completely unknown at this time is what the new PMP RDS will encompass, and by definition what will be included in the new PMP examination come December 2019.  My expectation is too see far greater emphasis on communication, leadership, stakeholder engagement and ‘agility’ (‘soft skills’). Less emphasis on prescriptive tools and structured techniques but this is a guess.  Fortunately, PMI do give their training community early access to the updates so we can adapt our courses.

What does this mean for you?  My recommendation is anyone planning to become PMP certified and who is in a position to do the examination this year get stuck in and pass before December.  The current exam structure has been in place since 2015 and is well understood. Come December it may be a whole new ballpark… or not…. we just have to wait and see!

What does this mean for us? Apart from a few long weeks updating training materials this is ‘situation normal’, we have to refresh our training materials every 4 years or so to deal with the PMBOK update cycle and every 6 years or so to deal with changes in the PMP RDS.  After 20 years teaching PMP, we know what to expect.

See more on the current PMP examination and our Mentored Email training course

New Articles posted to the Web #66

BeaverWe have been busy beavers updating the PM Knowledge Index on our website with White Papers and Articles.   Some of the more interesting uploaded during the last couple of weeks include:

And we continue to tweet a free PMI style of exam question every day for PMP, CAPM, and PMI-SP candidates: See today’s question and then click through for the answer and the Q&As from last week.

You are welcome to download and use the information under our Creative Commons licence

Knowledge Management is more than Information Management

It has been a while, but a new paper: Knowledge Management is more than Information Management has been uploaded to our library of project management papers.

The term ‘knowledge management’ involves two interlinked elements that together can help organisations grow and succeed, information management and knowledge creation. People know things, knowledge is organic, adaptive and created – it exists in the minds of people. Information is recorded, it is held in systems and made accessible to people. Good information management systems contain verified information in a useful format but the information is of no value unless it is accessed and used.

This paper highlights the important fact that, knowledge management systems require the active involvement of people at every stage of the DIKW chain to contribute anything of value back to the organisation that has invested in setting up the system.

Download the full paper.

To see more on KM, visit our PMKI library: https://mosaicprojects.com.au/PMKI-PBK-010.php#Process3

The Origins of Schedule Management

FEM MagazineOur peer-reviewed paper, ‘The origins of schedule management: the concepts used in planning, allocating, visualizing and managing time in a project’ has recently published in the ‘Frontiers of Engineering Management’ at: http://journal.hep.com.cn/fem/EN/2095-7513/current.shtml

This paper brings together a number of published articles and other research we’ve undertaken in the last decade or so to present a coherent view of the evolution of project scheduling in a format that can be used by other Academics.  It is also aimed at correcting many of the commonly held misconceptions around this topic.

The concepts used for project schedule management have very deep roots; getting the right people in the right place at the right time to accomplish an objective has been a major organizational challenge for at least 3000 years! In ancient times this process seems to have been based on the scheme of arrangements being contained in the leader’s mind and instructions communicated verbally. Modern approaches to solving the twin challenges of first thinking through the ‘plan’ and then communicating the plan to the people who need to do ‘the right work, at the right time, in the right place’ use sophisticated graphics, charts, diagrams, and computations, but the problem and challenges are the same.

This paper traces the development of the concepts most project managers take for granted including bar charts and critical path schedules from their origins (which are far earlier than most people think) through to the modern day. The first section of the paper looks at the development of concepts that allow the visualization of time and other data. The second looks at the shift from static representations to dynamic modelling through the emergence of computers, dynamic calculations and integrated data from the 1950s to the present time.

You can download an augmented version of the paper from: https://mosaicprojects.com.au/PDF_Papers/P202_The_Origins_of_Schedule_Management.pdf

Effective Stakeholder Engagement is Multifaceted

An organisation’s success, reputation and long term sustainability depends on its stakeholders and how they perceive the organisation.  The way the organisation interacts (or is perceived to interact) with its stakeholders builds its reputation and its customer base.  But customers belong to communities and it’s the broader community that grants the ‘social licence’ needed for the organisation to operate long-term. And, because no one and nothing is ever perfect, things will go wrong from time to time requiring action to protect the organisation’s reputation and its social licence.

The objective of this post is to:

  • Put all (or most) of the different mechanisms used by organisations to engage with stakeholders into perspective; and
  • Emphasise the message that authentic and effective stakeholder/community engagement needs an organisation-wide coordinated approach that is governed from the very top levels of management.

The Stakeholder Engagement Spectrum

The Organisational Core

The characteristics of the organisation are always at the centre of every stakeholder relationship[1]. The way your organisation is structured, its ethics, characteristics, systems, and services, underpin how its stakeholder community will ultimately perceive the business. The key to successful stakeholder engagement is in part the way the organisation is structured and operated, and in part being authentic and realistic in the way various aspects of stakeholder communication and engagement are used. If your business is a low-cost, low service, bulk supplier don’t pretend to be an upmarket high service organisation. Many people are more than happy to shop at retail outlets such as Walmart and Aldi, attracted by price and simplicity; others prefer the higher levels of service and higher prices from more upmarket department stores. The art of stakeholder engagement is to maximise the appeal and perceptions of the organisation as it is – not to mask reality with a pretence of being something else.

However, poorly governed unethical organisations will always ultimately fail regardless of their stakeholder engagement effort; you can’t build an effective long-term relationship on unsound foundations.

Similarly, any organisation can implement these eight practices and still ignore their stakeholder community – engagement is a two-way communication process that includes listening to and understanding stakeholder’s wants, needs, issues and concerns (particularly related to the perceived or actual impact of organisational activities) allow the development of effective stakeholder relationships. Effective engagement is only possible if the organisation’s overall culture and ethical-frame is a stakeholder-centric one. This is one of the reason’s why creating the ethics and culture feature prominently in my ‘Six functions of governance‘ model.

 

The 8 Aspects of the Stakeholder Engagement Spectrum

The eight aspects of stakeholder engagement highlighted above are all well defined in various publications; the way they are used in this post is briefly set out below:

PR: Public Relations – The actions taken by an organisation to develop and maintain a favourable public image. PR is a strategic communication process that builds mutually beneficial relationships between the organisation and its stakeholders. The core element of PR is push communication; it is a proactive process controlled by the organisation, broadcasting information to a wide community to influence attitudes.

Advertising – The activity production and placing of advertisements for products or services. The purpose of each advertisement is to announce or praise a product (goods, service, concept, etc.) in some public medium of communication in order to induce people to buy, use it, or take some other action desired by the advertiser. The difference between PR and Advertising is that PR largely focuses on creating or influencing attitudes and perceptions whereas advertising focuses on some form of ‘call to action’.

CRM: Customer Relationship Management – Refers to the practices, strategies and technologies that organisations use to manage and analyse customer interactions and customer data throughout the customer lifecycle. The goal of CSR is to improve the organisation’s relationship with each customer, assisting in customer retention, and driving sales growth. Good CRM systems make it easy for people to do business with you.

Issues Management[2] – The process of identifying and resolving issues. Effective issues management needs a pre-planned process for dealing with unexpected occurrences that will negatively impact the organisation if they are not resolved. The scope of this concept ranges from ‘crisis management’ where the magnitude of the issue could destroy the organisation (and the most senior management take an active role) through to empowering staff to deal with relatively minor customer complaints. The key to effective issue management is resolving the issue to the satisfaction of the affected stakeholders. This requires effective systems and preplanning – you don’t know what the next issue will be, but you can be sure there will be one.

Stakeholder Management Initiatives[3] – this is the area where most of my work is focused; managing the expectations of, and relationships with, the stakeholder community surrounding an organisational activity, initiative, or project. Most business initiatives and projects have a high potential to affect a range of stakeholders both positively and negatively (and frequently both at different times). How these relationships are managed affects not only the ability of the organisation to deliver its initiative or project successfully but also the overall perception of the organisation in the minds of the wider stakeholder community.

Business Intelligence & Environment Scanning – BI and other forms of environmental scanning looking at attitudes, trends, behaviours, and other factors in the wider stakeholder community. They are a key emerging element in the overall approach to stakeholder engagement used by proactive organisations. This is very much the space of ‘big data’ and data mining. Much of the collection of data can be automated and ‘hidden’ from view. The challenge is making sure the information collected is legal (privacy legislation is an important consideration), accurate, relevant, and complete; then asking the ‘right questions’ using various data mining tools. As with any intelligence gathering process, obtaining the data is the easy part of the equation; the real skill lies in developing, validating and interpreting the data to create information that can be used to produce valuable insights.

Social Networks – The ubiquitous, widespread, and diverse nature of social networks ranging from Facebook to personal interaction down the pub can easily outweigh all of the organisation’s efforts to create a positive image using PR, advertising and the other ‘controlled’ functions discussed above.  The organisation’s staff and its immediate stakeholders literally have millions of connections and interconnections to other stakeholders. Most of these connections are unseen, and the environment cannot be controlled. The best any organisation can hope to achieve in this relatively new communication environment is to plant seeds and seek to have some influence. Seeding ideas and concepts into the ‘Twittersphere’ may result in a concept being taken up and ‘going viral’, more commonly the seed simply fails to germinate. Conversely identifying negative trends and issues early, particularly if they are false, is critically important and where possible these negative influences should be countered but given the nature of the environment this is a very difficult feat to achieve.  Smart organisations recognise that their staff, customers, contractors, and suppliers all engage in this space and through other effective communication channels can influence how these people respond to opportunities and issues affecting the organisation.

CSR: Corporate Social Responsibility[4] – CSR completes the circle and brings it back towards the concept of PR.  CSR contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders. ISO 26000  Guidance Standard on Social Responsibility, defines social responsibility (ie, CSR) as follows:

Social responsibility is the responsibility of an organisation for the impacts of its decisions and activities on society and the environment, through transparent and ethical behaviour that:
–  Contributes to sustainable development, including the health and the welfare of society
–  Takes into account the expectations of stakeholders
–  Is in compliance with applicable law and consistent with international norms of behaviour, and
–  Is integrated throughout the organization and practised in its relationships.

The key difference between CSR and PR is that CSR actually involves doing things both within the organisation and within the wider community, whereas PR focuses on telling people things.

 

Applying the Stakeholder Engagement Spectrum

The various aspects of stakeholder engagement spectrum combined together to create the organisation’s reputation, engage communities, build customers, and when necessary protect the organisation’s reputation. The key combinations are set out below:

Reputation Creation: The key components needed to create and maintain a desirable reputation start with CSR and work clockwise through the spectrum to CRM.

Community Engagement: The key components needed to effectively engage the wider community are focused on CSR but includes the elements moving anti-clockwise from CSR through to Issues Management.

Building Customers: The elements needed to build and retain customers start with PR and work clockwise through the spectrum to Issues Management.

Protecting Your Reputation: Finally, when something goes wrong, protecting or restoring the organisation’s reputation is focused around Issues Management, but includes elements of CRM and continues clockwise through to Environment Scanning. In addition, many of the ‘push’ elements in the spectrum may be used as tools to help manage issues and protect the reputation of the organisation including PR and advertising.

 

Conclusion

The ‘stakeholder engagement spectrum’ above is deliberately drawn in a circle surrounding the organisational core, because all of the different aspects interrelate, many overlap, and they all build on each other.  The governance challenge facing many organisations is breaking down the traditional barriers between functional areas such as advertising, PR and CRM/sales, so that the entire organisation’s approach to its stakeholders is coordinated, authentic and effective.

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[1] See more on Ed Freeman’ stakeholder theory at: https://mosaicprojects.wordpress.com/2014/07/11/understanding-stakeholder-theory/

[2] For more on issues management see: https://mosaicprojects.com.au/WhitePapers/WP1089_Issues_Management.pdf

[3] For more on stakeholder management see: https://mosaicprojects.com.au/Stakeholder_Circle.html

[4] For more on CSR see: https://mosaicprojects.wordpress.com/tag/corporate-social-responsibility/

The Evolution of Project Management

The publication of the PMBOK® Guide sixth edition at the beginning of September[1], and the decision last week by ISO committee TC258 to revise ISO standard 21500 should mark the end of an era in the development of project management. For most of the last 50 years, the dominant view of project management associations has been that project management is a generally transferable skill. This has resulted in the view that ‘project management’ can be represented by a single ‘BoK’ (Body of Knowledge), a single ‘competency baseline’ and capability can be demonstrated by passing a single credential or certification. However, whilst the PM professional associations have advocated this view, the job market has always retained a focus on different industry experience – you don’t get an IT project manager’s job without IT experience.

As outlined above, from the emergence of ‘modern project management’ in the 1960s[2] the predominant view of the professional associations and most academics and practitioners has been that ‘project management’ is a single discipline with transferrable skills. A single qualification framework is appropriate and the skills and techniques are generally applicable across all industries.  However, in the years between the 1960s and the 2000s, as different industries and disciplines progressively adopted the concept of ‘project management’ this holistic view has become increasingly stressed.

The future suggested in this post still sees project management as a single discipline focused around some high-level objectives; but rather than having a single set of generally accepted good practices applicable to most projects most time, the emerging discipline needs to be capable of embracing a range of different approaches to project management and a diverse toolbox of techniques that can be mixed and matched to optimise the creation of the project’s deliverables.

Project management literature has identified at least three key dimensions to project management:

  1. An ‘adaptive/agile’ approach -v- a disciplined structured approach.
  2. The size, scale, and difficulty associated with the work of the project.
  3. Simple relatively predictable projects -v- complex projects with emergent properties.

In addition to these parameters (mapped in the diagram above), there is also the degree of certainty associated with the work, the technical complexity of the product, and the attitude of the stakeholder community[3].

It’s time for a change.

The project management techniques needed to manage different types of project vary enormously; for example:

  • The optimum approach to managing a relatively small, simple project to upgrade a website may benefit from an adaptive/Agile approach to managing the work and should only require a ‘light touch’ to control the work;
  • Contrast this to the disciplined approach needed to design and build a new chemical plant where not only do complicated parts need to be manufactured to precise dimensions months in advance and shipped halfway around the world, but the work has to be carefully managed and the parts assembled in a precise sequence to allow all bits to be fitted together properly in a safe working environment.

Both these endeavours are projects, but the project management techniques needed for success are dramatically different. Even within the one project, some elements may benefit from an ‘agile’ approach to the work (eg, systems integration), while other elements of the work will require a very disciplined approach to achieve success – building space rockets really does require ‘rocket science’.

The challenge facing the project management profession and project management academics is first defining the common core of project management, and then adapting the approach to developing and documenting the overall project management body of knowledge in a way that recognises the core commonality of being ‘a project’ whilst allowing different approaches to the management of the work. And once these foundations are in place, flowing these concepts through into documented standards, knowledge frameworks and certifications. In the 21st century a ‘one size fits all’ approach to the management of projects is no longer appropriate.

PMI has started down this path, they have agile certifications and have included both tailorability and agile concepts into the 6th edition of the PMBOK® Guide. Developments in the ISO space are also moving towards this integrated but separated approach to managing different types of projects. ISO 21500 Guidance on Project Management, is being updated and transformed into a higher level ‘management standard’, if this development is successful, in the future a series of implementation guides can be foreseen focused on different types, sizes and phases of project development and delivery.

What’s missing at the moment is a holistic and agreed understanding precisely what a project actually is[4] (this will segregate project management from other forms of management), and then a framework for distinguishing the different types of project that exist within the overall frame of being ‘a project’, but requiring different styles of project management. Some of the multitude of factors that need to be considered include:

  • The inherent size of the project usually measured in terms of value;
  • The degree of technical difficulty in creating the output (complication) caused by the characteristics of the project’s work and its deliverables, or the time-frame the deliverables are required within;
  • The degree of uncertainty involved in the project;
  • The degree of complexity associated with the work and the stakeholder relationships;
  • The difference between client project management and contractor project management;
  • The various methodologies and strategic approaches to managing the project and developing the product (Agile, PRINCE2, etc);
  • The maturity of the environment in which the project is being delivered (developing economies/organisations -v- mature economies/organisations); and
  • The difference between project, program and portfolio management.

The common core

The core element of all projects is the intentional ‘temporariness’ of the team (organisation) set up to deliver the project. The ‘temporary organisation’ is given an objective to create a deliverable for a client and then to shut down efficiently; in addition, there is an intention on the part of most key stakeholders to treat the work as a ‘project’. This means the project has to be started (initiated), the work planned, then undertaken, and on completion the temporary organisation has to be closed – and of course, all of these activities need monitoring and controlling.

Where 21st century project management needs to diverge from the doctrines of the last century is in the way these overarching objectives are achieved – defining 44 or 49 processes as ‘generally accepted best practices’ is no longer appropriate.  The concept of ‘project management’ needs to be able to adapt to very different approaches, allow the project team to select from a toolbox of ‘useful techniques and methodologies’ and then encourage the teams to craft the processes they actually use to optimise the delivery of the project’s outputs to its clients.

Achieving this will require a different approach to developing standards, a different approach to training and qualifying practitioners and the creation of very different communities within the profession that encourages cohesion whilst embracing diversity of practice.

It will be interesting to see if our profession is up to the challenges.

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[1] PMBOK® Guide 6th Edition available in Australia: https://mosaicprojects.com.au/shop-pmbok-guide-6th-ed.php

[2] For more on the origins of ‘modern project management’ see: http://www.mosaicprojects.com.au/PDF_Papers/P050_Origins_of_Modern_PM.pdf

[3] For more on the dimensions of project management see: http://www.mosaicprojects.com.au/WhitePapers/WP1072_Project_Size.pdf

[4] For more on defining a project see: https://mosaicprojects.wordpress.com/2016/08/11/seeking-a-definition-of-a-project/