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Company Projects. In Control or Chaos?

A special report from On Time On Budget . Newsletter for Large-Scale Program Managers July 2003 . Special CIO Issue 

Large companies today face a serious challenge: keeping track of their projects. Fortune 100 companies are complex, with an array of global, matrixed, functional, and newly-invented organizational structures. Projects and project control often get lost in the fog of structure. Hence, we are seeing an increasing focus on the highlevel management and control of major projects in large organizations. Some thoughts from hard-earned experiences are presented here to help the CIO make sure he/she has IT projects under control, has visibility to major problems and risks, and knows when to intervene.

Once upon a time…in a Fortune 50 company, we needed a simple list of mission-critical projects and the person responsible for that project. Identifying the projects was not a problem, BUT, we could not identify the person responsible or accountable in over 70% of the projects.Talk about an awakening! 

Another true story: Some years ago, I interviewed senior executives in a Fortune 100 company to rate their IT organization. The two lowest IT ratings were: (1) Deliver Results Quickly, and (2) Meet Commitments. It was interesting to note that the IT organization rated itself highly on “Meet commitments.” Out of 10 categories, IT personnel rated themselves higher than their customers in every category. 

• Denial is not an option – Ask yourself five questions: 

• Do you have a current, prioritized list of all your major IT projects? 

• Does this list include one person accountable for each project’s daily performance and ultimate success? 

• Do you have a project assessment process with common metrics? 

• Do you have a list of senior, experienced resources to assess and fix projects in trouble? 

• Do you have a common, early-warning, projecttracking process? 

If you answered “YES” to all five questions, you probably have a well-managed project management office. If you answered “NO” to two or more of these questions, you need to initiate a new project to get projects under control.We call this our “Project Project.” 

The “Project Project” 

Our “Project Project” is designed to help you convert some “NO” answers to “YES” answers. There is an increasing trend in large companies to form a project management office (PMO), sometimes called a program management office. PMO’s can be at many levels of the organization and scoped to cover a variety of projects or programs. A key role of a company PMO is to address the five questions above. 

How does our “Project Project” work in a PMO context? 

Do you have a current, prioritized list of all your major IT projects? 

This list can be categorized and prioritized by cost, risk, organization, geography, and other criteria. Prioritization will help you and your organization know which projects require the closest attention. Focus on the elephants, not the mice! 

• Insure the data is easily collected and updated. Do not collect data with a short life. 

• Limit the amount of project data to be collected. Do not create an administrative nightmare requiring a large number of resources. 

• Consider collecting high-level data on key non-IT projects. These projects potentially impact available resources and cause conflicting timelines. 

• Keep your own personal priority list. Know which projects you need to track closely. 

• Proactively communicate with fellow executives the status of projects on their priority list. This is good company teamwork and a “must do.” 

Does your list include one person accountable for each project’s daily performance and ultimate success? 

Every project needs a clearly-defined individual responsible and accountable for that project. Individuals are accountable, not teams. As in the earlier example, if you cannot identify an individual accountable for each project, success will be difficult. 

• Put an “X on the head” of the person with project responsibility and accountability. Make sure that individual understands he/she is accountable. Make sure the team understands that person is accountable. 

• Provide strong support for individuals accountable for your projects. These individuals should be your best people and well compensated. 

Do you have a project assessment process with common metrics? 

Few large projects are completed without having to make adjustments. Be prepared to conduct project assessments. Evaluate and compare projects with common metrics, which is more difficult in a global organization, but necessary. 

• Create a common project assessment process and metrics. Global organizations will require a multicultural team to develop this process and metrics. Keep it short, simple and direct. Complexity will kill it. Do not skimp on rollout and training efforts. Project managers need to know thresholds that will trigger management interventions. 

• Create a common Project Report Card using defined metrics and leverage the results in performance appraisals. 

• Create a Project Stages of Excellence so Project Teams can do self-evaluations and understand where they are on the road to Best Practices. 

Do you have a list of senior, experienced resources to assess and fix projects in trouble? 

Project Managers and their teams need to know the trigger points that will cause management to step in and “help.” Individuals assigned to help need to be senior and respected. 

• Prepare the list of experienced resources before projects get into trouble. Assign them in a “shadow mode” at the start of a project. 

• Train senior resources in the assessment process and common metrics.Waiting until a project gets into trouble will be too late. 

Do you have a common, early-warning, project-tracking process? 

Your prioritized list of IT projects must have an early-warning project-tracking process. A “Red/ Yellow/Green” notification process is sufficient. Once “Yellow” or “Red” situations occur, more frequent and detailed information will be required. 

• Assign the project manager responsibility for updating you or your focal point when “Yellow” or “Red” situations are about to occur or have occurred. 

• Proactively encourage Project reporting and changes in Project status, even if it is bad news. Fire or replace anyone that fails to report changes in Project status on a timely basis. Make this well understood to everyone before starting a Project.


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