The ability to execute virtual projects – projects where the team members seldom or never meet physically – is becoming an increasingly important capability for international organizations. This presentation identifies five factors that determine the success or failure of virtual projects and discusses how to build the capability to execute virtual projects effectively, including those currently thought too small to be viable.

2. discusses how to build the capability to execute virtual projects effectively, including those currently thought too small to be viable.Nick Fryars, September 2009

3. Powerful factors driving virtual workinginclude globalization, economic crisis and climate change Competition Globalization Cost reduction VIRTUAL WORKING Economic crisis Travel reduction CO2 reduction Climate change Photo: Tandberg;WebEx screenshot: Cisco Corporation © Nick Fryars 2009 2

5. No truly coherent suites

7. Expensive technology initiatives do not deliver on business case

8. Virtual projects failMicrosoft Office suite(and clones) Images: Tandberg; Citrix Online; Cisco; Adobe; Microsoft; Sourceforge © Nick Fryars 2009 3

9. The greatest potential is in smaller projectsThe dominance of traditional approaches to managing projects in large organizations creates an unnecessary ‘cost floor’ for global projects Characteristics of Global Projects Professionalization & formalization of Project Management Cost floortypically €1.5M Minimum NPVtypically €5M Physical meetings  logistic complexity, long lead times Physical meetings,e-mail communications $€ High travel costs Minimum project office size typically 4 Cost floortypically €600k Minimum NPVtypically €2.5M Virtualization can reduce project expenses drasticallyand thus lower the ‘floor’ at which global projects are viable © Nick Fryars 2009 4

10. So why isn’t everybody doing it?Recent experiences in several major organizations suggest thatfive factors can ‘make or break’ a virtual project © Nick Fryars 2009 5

11. Clear criteria that candidate projects must meetFiltering criteria distinguish those projects that are promisingcandidates from those that need a different approach © Nick Fryars 2009 6 1

13. See others as people: photo, video, personal stuff

15. To all stakeholders

17. Confirm decisions clearly

18. Monitor conformance& intervene proactivelyTeam developmentmay not be synchronizedacross locations

20. Don’t change a good design for a trivial new feature…

21. …and if you must make a change, tell everybody what, why and whenConstraint: limitations of communication via computer screen Use tools that provide good support for on-line meetings & workshops Issue – “yet another” environment for users Tailor & structure a project environment to be intuitive and ‘idiot proof’: limit the number of functions to be learned Screen shots: Microsoft ® SharePoint, Projectplace

22. Competences to operate and supportSuccessful deployment of virtual projects requires additionsto the corporate skill set © Nick Fryars 2009 9 4

23. Paths to successDemonstration projects ‘show the way’ by giving managers ofvirtual projects examples & practices to follow © Nick Fryars 2009 10 5 Any ambitious project managerwants to succeed… …by providing lessons learned by others… Demonstration projects can help provide a clear path to success… …plus proven approaches and templates …and not crash and burn

25. Some organizations will already have some pieces in place, even if not reaping the benefit  tailoring will be required

26. Whatever the start point, building the capability is key to future successAn international organization that cannot master virtual projects is unlikely to survive long in tomorrow’s globalized, carbon-restricted and low cost world