Chapter 3 - Project Management - How do you define a Project?

1. Project Management
Chapter 3:
How do you define a Project?
Part of a series considering different aspects of Business Change
1Understanding and Supporting Business Change – by Martin Schyns/ FILE: Project Management_Chap_3_FINAL.pptx

2. IntroductionWho am I?
My headline would be…..Global Engineer Understands Transition Success Approach
Key take away is that I have been doing projects my whole career. I am an engineer at heart with a diverse
background and I recognize that all organizations, and individuals for that matter, must continually seek to
proactively change and adapt. As I am sure most organization can attest, Change is hard. I thought I would
try using this medium to collect various themes and ideas on the subject of Business Change and share my
insights.
Understanding and Support Business Change
Naturally enough, Project Management is my first theme. It is a rich and complex endeavor and it is certainly an
area where I think most organizations would acknowledge they could do better. Typically the challenge is
that if you ask five people within an organization, what needs to change, you get five different responses.
The Initial Path for this Enquiry
1. Chapter 1 – 10: Project Management – 10 questions to explore some involved situations
2. Chapter 11 > : Sustaining Business Health – physiology of a modern business
3. Chapter X > : Insights on making relevant Change happen – road map to the future
4. Chapter Y : CONCLUSIONS – reflection on the relevance / value of what we have uncovered
Approach
I thought it would be interesting to use the Socratic method to explore what can often be some
what dry material; and, because it helps me understand, a series of supporting diagrams
that, I hope, encapsulate and convey the key ideas and their context.
I would welcome any comments and alternative views to help challenge my desire to grow and
make a difference.
Thank you, Martin Schyns. 2

3. Ten common Project Management situations
that are not easily understood…why?
3
SITUATION KEY QUESTION
1. Reflection Was the Project a Success?
2. Prioritization How to make Project Portfolio Management (PPM) relevant?
3. Right Approach? How do you define a project?
4. Realism Level of confidence in the Project?
5. Sponsorship What does Project Sponsorship mean?
6. Planned results How will the Project impact Business Performance?
7. Justification What is the business case for the Project?
8. What or How? Is the business strategy working?
9. Audit Why am I not seeing results?
10. Soft value What are the lessons to take forward?
Do these questions echo you own experiences? How well do you really
understand the challenges of Project Management?
Chap. 3:

4. Chapter 3: How do you define a Project?
REF. Introduction
• So what is a Project? … ‘an individual or collaborative enterprise that is
carefully planned and designed to achieve a particular aim’
• If I asked you about your project. What would you say?..... ‘it’s a CRM
project, it’s a finance project, it’s a transformation project, it’s an IT project’
• Is defining the WHAT of a project very helpful? ….. For sure if you are involved
in its planning and execution. But does that help me understand WHY this
project, at this point in time?
• Do we get lost in Project delivery and forget about Project rationale? My
take is that organizations move quickly through the process of formulating a
solution.. ‘We need an ERP Project’, ‘we need SAP’, ‘we need a new IT system’,
‘we need better business process performance’ etc.
• Do we really understand why a project is going to be successful? This was
typically the domain of the business case….. but for whatever reason the
confidence in business cases has ebbed. Understanding why would be
valuable in better defining a Project!
4
Projects should not be solely focused on delivery; benefits are the real goal!

5. Lifecycle of Project Definition
How do you define a Project?
5
THE ABOVE IS A SIMPLE LOGIC FRAME…… TO HELP UNDERSTAND THE SPAN
OF ACTIVITES/ TIMELINE WHEN PROJECT DEFINITION CAN BE INFLUENCED
FIGURE 3A
#1. Identify and
agree a need
ARE WE TYPICALLY PROACTIVE OR REACTIVE IN IDENTIFYING NEEDED CHANGE?
#4.Develop a
business case and
seek endorsements
HOW CREDIBLE IS THE BUSINESS CASE?
#5. Project Approval /
Rejection /
Qualification
DOES THIS PROCESS IMPOSE UNREASONABLE
EXPECTATIONS ?
#6. Detailed
Project Plan &
Execution
IS THERE A MATERIAL DIFFERENCE FROM THE
INITAL WORKING ASSUMPTIONS ?
#7. Project
Results / Impact
WHAT ARE THE ACTUAL RESULTS / IMPACTS?
DO WE UNDERSTAND WHY?
ProjectDefinition/Change
#2. Formulating
the Project
ARE WE CLEAR / CONFIDENT ON THE SOLUTION LOGIC AND SUPPORTING ASSUMPTIONS?
#3. Context to
other needs /
issues & Projects
HOW WELL DO WE REALLY UNDERSTAND THE CONTEXT PICTURE?

6. Chapter 3: How do you define a Project?
REF. Fig 2A – Understanding… typically where are we?
Key Questions …. and comments
1. ARE WE TYPICALLY PROACTIVE OR REACTIVE IN IDENTIFYING NEEDED CHANGE?
……..reactive stance typically has fewer alternatives / room for flexibility
2. ARE WE CLEAR / CONFIDENT ON THE SOLUTION LOGIC AND SUPPORTING
ASSUMPTIONS? ……..logic /assumptions typically driven by project sponsor/s / owners
view point
3. HOW WELL DO WE REALLY UNDERSTAND THE CONTEXT PICTURE? ……..complexity and
sphere of control issues normally leave this question unanswered
4. HOW CREDIBLE IS THE BUSINESS CASE? ……..often framed/ undermined by #1 thru #3
5. DOES THIS PROCESS IMPOSE UNREASONABLE EXPECTATIONS ? ……..aggressive budget
/timelines are often imposed to drive efficiency or reflect limited options
6. IS THERE A MATERIAL DIFFERENCE FROM THE INITAL WORKING ASSUMPTIONS ?
……..once approved project changes are limited or are interpreted negatively as a
weakness in project management
7. WHAT ARE THE ACTUAL RESULTS / IMPACTS? DO WE UNDERSTAND WHY? ……..all too
often there is “not enough time / resources” to objectively assess realized impact;
which of course has the effect of sustaining the status quo described above.
6Key Questions and a Perspective on a typical Approach

7. ASSUMPTIONS
1. Marketing & Sales will drive 90% adherence to forecast on a weekly basis
2. Forecast will include a 6 month rolling window defining ‘Normal’ & ‘Slow’ products – on a weekly basis – with accuracy of 80%
8.
IT SYSTEM/s6.
ANATOMY OF A PROJECT/with example
7
EXAMPLE of multifaceted Project Definition – for a Supply Chain Scenario
FIGURE 3B
LOGIC TO
REALIZE
GOAL:
DELTA X
Better align
inventory to orders
> no inventory
increase + arrange
for direct ship( less
popular items) –
customer bears
delta shipping
costs
Role3
Role0
Role2
Role1
4.
Sales Sourcing Distribution
Organization 1 Organization 2Organization 0 5.
Business Management
GOAL:
DELTA X
25% reduction in
customer order
lead time + zero
cost increase
1.
Business
Process/2
Business
Process/1
2.
Data
Data
Data
3.
7.
ProjectInterface
ProjectInterface
Project Interface

8. CONTEXT OF A PROJECT ( SIMPLE)
8
Conditions/ Changes to those conditions that
may affect the logic / assumptions
FIGURE 3C
Business Management
GOAL
DELTA X
LOGIC TO
REALIZE
GOAL
DELTA X
PROJECT SINBOUND
CONDITIONS
OUTBOUND
CONDITIONS
SUPPORTING CONDITIONS
PROJECT
X
PROJECT Z
PROJECT
Y

9. Lifecycle of Project Definition
How do you define a Project?....... Practical Changes
9
THE ABOVE IS A LOGIC FRAME…… OF PRACTICAL CHANGES TO PROGRESSIVELY
IMPROVE THE PROJECT DEFINITION PROCESS
FIGURE 3D
#1. Identify and
agree a need
Adopt and maintain a single, multi year, road map >>> drives proactive behavior focused on the
future and ensures alignment to strategy
#2. Formulating
the Project
All Projects should explicitly define each of the EIGHT Project anatomical components ( FIG
2B) – with evolving formulation from a closed loop process ( steps #3, #4, #5, #6)
#3. Context to
other needs /
issues & Projects
Define Input / Output and Supporting conditions and any planned / possible
change/s (FIG 2C)
#4.Develop a
business case and
seek endorsements
Build a robust Business Case… based on ranges (
worse > median > best)
#7. Project
Results / Impact
Understand
WHAT and WHY
LESSONS
#5. Project Approval /
Rejection /
Qualification
More challenge &
rejections.. Less arbitrary
rule making
#6. Detailed
Project Plan &
Execution
Do not start
until the
conditions
are right
ProjectDefinition/Change

10. Chapter 3: How do you define a Project?
REF. Fig 2D- What Changes should we make…. and Why?
• Step #1 – Leverage and Maintain a road Map // ensures strategy is
interpreted in a common way and provides a single, cross company rationalized, time-
phased focus
• Step #2 – Project formulation via iterations // ensures full range of
perspectives effectively brought to bear
• Step #3 – Fully understand Project context // project success more
often than not is dictated by factors external to the project
• Step #4 – Business case with performance range // ensures the key
factors driving the higher levels of project result performance are really understood
• Step #5 – Project Review drives more effective challenge //
ensures the business impact/s are front and center in the deliberations
• Step #6 – Detailed Planning able to influence definition //may
well uncover holes in the current rationale or credibility of the assumptions
• Step #7 – Understand What the project did and why// true lessons
are the most powerful way to positively influence future Project definitions; based on the realities
of your specific circumstance.
10
Collection of practical changes to progressively drive improvements
in Project Definition; leading to better Project results

11. Chapter 3: How do you define a Project?
CONCLUSIONS
• Business Change and Innovation are critical capabilities to
sustain business performance in these rapidly changing times
• Projects should be the best way businesses proactively
manage business Change
• Formulating WHAT to do and WHEN should be based on clear
business rationale and a broad set of realistic assumptions
• Evolving the processes and the culture to embrace the
proposed practical changes will take time and persistence
• NOT adapting the Project Definition process continues to risk
mediocre project result performance and an under served
business imperative.
11
Its not WHAT but WHY that really matters for Projects!

12. R E F E R E N C E S
Was the Project A Success?
12

13. ANATOMY OF A PROJECT ( SIMPLE)
13
Components/Considerations in the
definition of a PROJECT
FIGURE 3E
Business Management
GOAL
DELTA X
LOGIC TO
REALIZE
GOAL
DELTA X
OUTBOUND
CONDITIONSPROJECT SINBOUND
CONDITIONS
SUPPORTINGCONDITIONS
OUTBOUND
CONDITIONSPROJECT XINBOUND
CONDITIONS
SUPPORTING CONDITIONS
OUTBOUND
CONDITIONSPROJECT YINBOUND
CONDITIONS
SUPPORTING CONDITIONS
OUTBOUND
CONDITIONSPROJECT ZINBOUND
CONDITIONS
SUPPORTING CONDITIONS

14. ANATOMY OF A PROJECT ( SIMPLE)
14
Components/Considerations in the definition of
a PROGRAM
FIGURE 3F
Business Management
GOAL
DELTA X
LOGIC TO
REALIZE
GOAL
DELTA X
PROGRAM W
-PROJECT S
-PROJECT X
-PROJECT Y
-PROJECT Z
INBOUND
CONDITIONS
OUTBOUND
CONDITIONS
SUPPORTING CONDITIONS
PROJECT
X
PROJECT Z
PROJECT
Y