the seven deadly sins of project management 2009 market survey · 2010/3/7 · termed these “the...

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Copyright, Center for Project Management®

The Seven Deadly Sins of Project Management 2009 Market Survey

This study began when seven1

1. Mistaking Half-baked Ideas for Projects

CIOs contacted us to help them pinpoint the key reasons why a number of their mission critical projects were chronically over budget and invariably behind schedule. The investigation involved an assessment of 49 different projects managed by 23 project managers. Our research revealed that the vast majority of failed projects flounder because those responsible continue to commit the same mistakes over and over. We termed these “The Seven Deadly Sins of Project Management.” They are listed here (the order does not imply relative importance):

2. Dictated Deadlines

3. Ineffective Sponsorship

4. Under Skilled Project Managers

5. Not Monitoring Project Vital Signs

6. Failing to Deploy a Sound Project Management Process

7. Not Formulating a Comprehensive Project Portfolio

Mistaking Half-Baked Ideas for Projects Traditionally, senior management is charged with conceiving and executing visions that will drive the organization towards profitability and industry leadership. Hence, there is immense pressure on managers and executives to deliver new and innovative ideas that can be turned into products and services that deliver both profit and competitive advantage. However, studies conducted by the Center show that while there is no dearth of great visions emanating from executive offices, these visions are often intertwined with a large number of half-baked, and at times, hare-brained ideas. Many of these can be attributed to the lack of clear and coherent communication between management (proponents of most projects) and project teams. Our data indicates that 75 percent of the organizations surveyed did not have well-placed filters in place to separate half-baked ideas from viable projects.

1 None of these were dotcom companies because in their case, most project failures were a conjoining of

unbridled optimism, sheer stupidity, and universal absence of project management discipline.

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Dictated Deadlines It is a well-known and accepted fact that most IT/Business projects fall badly behind schedule. A primary reason for this perpetual problem is management’s practice of specifying artificially tight deadlines. Some of the reasons for these deadlines are:

• Lack of confidence that the teams are able to develop realistic estimates.

• Management's desire to challenge the team to work harder.

• Wild goose chases induced by ill-informed customers.

Ironically, many project managers with the skills to develop realistic estimates and schedules know that their numbers will invariably cause management to cancel the proposed project, hence the proverbial “estimate-to-please.” These project managers have learned that the only way to get their projects launched is to promise low cost and early delivery – no matter how unrealistic this may be. In the recent past, the estimate-to-please behavior has become more prevalent because project teams are routinely threatened with outsourcing of projects. Project managers agree to the client's time dictates because there is more risk in providing realistic estimates than in allowing the project to run hopelessly over budget and time. The executive body is the key in this scenario and must be convinced that creating an environment in which project managers are tempted to “estimate-to-please” will only engender constant disappointment as projects come in late, over budget, lacking in functionality, of poor quality, and at times, are complete failures.

Ineffective Sponsorship The sponsor is the single most influential ingredient in a project's recipe for success. Without a competent sponsor, the project will implode and inevitably fall apart. Despite this disturbing truth, few project managers surveyed by the Center believed that their projects had effective sponsorship. The fact is IT/Business projects have such a dismal reputation for coming in late, over budget or being abandoned altogether that there is a general inclination in the upper echelons of corporate executives not to become project sponsors. Invariably, they relegate that important responsibility to available IT managers, another sure cause of failed and challenged projects. Being a project sponsor is not a spectator sport; it involves time, effort, and commitment. The responsibilities of a sponsor include:

• Understand the complexity of the project

• Empower the project manager and the team

• Provide guidance and direction for key business strategies

• Ensure timely availability of resources

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• Review milestone-based project progress

• Ensure project benefits are realized

A review of the content in the list above clearly shows that effective sponsorship requires specific skills and commitment. The project manager must be confident that the sponsor has the time, energy, and the requisite buy-in of the proposed project to fulfill his or her responsibilities. Immediate access to the sponsor by the project manager and quick decision-making by sponsors are key elements of successful project management. Our experience shows that in those instances where the sponsors fail to invest their “skin” in the game, the game is invariably lost. Project managers often complain to us that they are nothing more than “virtual sponsors.”

Two additional important points regarding project sponsors are:

• Sponsors often escape the consequences of failed projects, but do reap the rewards of successful ones; whereas project managers and teams always receive the blame for failed projects, but seldom the rewards commensurate with their achievements.

• A strong-headed manager, without the appropriate skills for effective sponsorship, can run a project train right off the cliff.

Under Skilled Project Managers Another travesty in project management today is the launch of projects with significantly under-skilled project managers. A study of 47 high-complexity projects by the Center demonstrated that whereas the overall required skill level of project managers was an estimated 3.2 (on a scale of 1 to 4), their averaged actual skill level was 2.5, a considerable gap.

The Center’s research, also shows that only 14 percent of organizations have a well-defined, well-executed skills development program in place to provide education, training and mentoring to their project managers.

Little wonder that overwhelmed project managers resort to powerful software packages they are oftentimes ill equipped to use – the equivalent of mounting afterburners on a mule.

Not Monitoring the Vital Signs Doctors, mechanics, pilots, and engineers do it – just about everyone in almost every profession monitors vital signs to track the “health” of their projects. Not so in IT/Business projects. This responsibility lies not only with the project manager, but also with the sponsor. Together, project managers and sponsors must draw up the list of vital signs to be monitored, determine the thresholds that vital signs are to be measured against, and clearly define the escalation procedures.

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At the Center, we have identified a set of project vital signs, along with their acceptable variances, and the appropriate reporting procedures. A partial list (the Center’s PPA® methodology includes 18 vital signs) of vital signs to consider:

1. Strategic Fit

2. Customer Buy In

3. Technology Viability

4. Status of Critical Path

5. Actual Cost vs. Estimated Cost

6. Unresolved Issues

Monitoring the variance thresholds of vital signs highlights any project’s “health problems” in a timely manner.

Failing to Deploy a Sound Project Management Methodology Any methodology is a collection of practices, procedures, and guidelines designed to help a practitioner of a craft or discipline to achieve desired goals in an effective and efficient manner. A primary goal of a well designed project management methodology, not to be confused with software lifecycle methodology, is to provide a common standard across an organization to ensure that projects of varying sizes and complexity, when attempted by different teams, are conducted in a consistent and disciplined manner, resulting in quality products delivered on time and within budget. To be useful, a methodology needs to be scalable – easy to tailor to fit the size and complexity of the project at hand. To us, a methodology is akin to a master recipe for a project, a collection of steps designed to help the project manager and the team “cook up” a viable solution to a business problem or need. Absence of a robust and easy to use methodology means that different teams, and at times different people on the same team, act on their whims and scurry about to figure out their next steps – the perpetual Three Stooges.

Not Formulating a Comprehensive Project Portfolio Project Portfolio Management is the process by which projects are initiated, approved, managed, and implemented throughout the enterprise. Unfortunately, project portfolio management does not exist in most organizations, resulting in duplication of effort, unnecessary delay of mission-critical projects, and internal conflict. For example, two CEOs we know asked their CIOs the following questions:

• How many project requests were in the pipeline?

• How many approved project proposals were waiting to be launched as projects?

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• How many projects were being executed?

• What was the status of various projects in execution?

• What was the capacity of the IT department, i.e., could the IT department undertake more projects?

Neither CIO was able to provide definitive answers to these questions. Even after a week’s worth of extensive inquiries, both CIOs did not have high-confidence answers to most of these questions. Obviously, neither organization was practicing project portfolio management. Project portfolio management does not have a long history in the IT/Business project management profession. Even today, a large number of CIOs and CEOs do not have an accurate accounting of all the project work in progress at any given time in their organizations. The best manifestation of a project portfolio in most organizations is a hastily put together list of the most visible projects underway. The Center’s research indicates that 20 percent of organizations represented had a well-designed project portfolio management system. The implications are staggering – a majority of CIOs and CEOs do not have a definite idea about the total number of projects under way at any given point.

1. My organization has well-placed filters in place to separate half-baked ideas

from viable projects.

24%

51%

14%

6% 5%

Definitely Disagree Somewhat Disagree Agree Mostly Agree Definitely Agree

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2. Project deadlines for most projects are realistic and achievable.

3. Project sponsors from business units clearly understand their roles and responsibilities as sponsors.

27%

32%

27%

14%


43%

38%

11%8%

0%


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4. We have a well-defined and well-executed project manager skills

development program (education, training, and mentoring).

5. My organization has a well-defined set of vital signs to monitor the progress (health) of our projects.

54%32%

8% 3% 3%

Definitely Disagree Somewhat Disagree Agree Somewhat Agree Definitely Agree

44%

24%

24%

5% 3%


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6. My organization has a well-designed project management methodology in place.

7. My organization has a well-designed Project Portfolio tracking system in place (a simple list of projects does not qualify as a Portfolio).

36%

29%

8%

12%

15%


48%

32%

14%

3% 3%


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Sin Index

At this point, take a little time to assess the Sin Index, i.e. the degree to which mistakes are being made in your organization. For each item, keeping in mind your organization’s performance, check the appropriate box in the right hand column. The value of 1 means there are no problems related to the specific item, while the value of 5 indicates the problem is very pervasive. This assessment may be best done by discussing the subject matter with three or four of your colleagues and then coming up with your assessed values.

1. Mistaking half-baked ideas for projects

My organization diligently ‘filters out’ half-baked ideas before they are pursued as projects.

5 Rarely (Less than 10%) 4 Sometimes (10%-20%) 3 Often (20%-59%) 2 Most Often (60%-79%) 1 Routinely (More than 80%)

2. Inadequate due diligence

Sponsors in my organization define realistic and achievable deadlines.


3. Ineffective sponsorship

Sponsors in my organization commit their political capital, personal time, and resources to their projects.


4. Unskilled project managers

Project managers in my organization have the skills necessary to do their jobs.


5. Failing to deploy a robust project management process

My organization uses a robust process to manage its projects.


6. Not monitoring the project vital signs

My organization monitors a set of well-defined vital signs of its projects.


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7. Lack of a comprehensive project portfolio

My organization maintains a comprehensive portfolio of projects.


Once you have checked the appropriate boxes for the seven questions, add up the represented numeric values, and divide the sum by 7. Your organization’s Sin Index is a number between 1 and 5. Based on the averaged value, our Sin Index interpretations are as follows:

Sin Index = 1 Project nirvana

Sin Index = 2 Cloud 9

Sin Index = 3 Can be saved

Sin Index = 4 Project purgatory

Sin Index = 5 Project hell

Project Nirvana: Congratulations, Applause, and High Fives! Your organization is operating at a high level of project management maturity. Completing projects successfully is a standard practice because the necessary fundamentals are in place. Your answers reveal that your organization is a cut above most organizations; Nirvana is yours. We salute you.

Cloud Nine: Your organization is highly mature because a well-designed project management process is in place. However, your answers reveal that some people are not doing the right thing. Certain sponsors, customers, project managers, and team members occasionally take the path of least resistance and sidestep the proven methods to success. Be warned that continued missteps by these people will certainly weigh the organization down and result in many challenged and some failed projects. Your mission: identify the “unenlightened” and guide them on the path to Project Nirvana. Can be Saved: Your organization is skating on thin ice and soon it is likely to fall through to Project Purgatory. Your responses illustrate that project teams experience sporadic success. Your organization faces several challenges – inadequate project management process, a lack of management support of project management discipline, insufficient education and training of the troops, and too many “non believers.” It is time to come out of the darkness. Your organization needs a swift kick in its “collective seat of knowledge.”

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Project Purgatory: The fire is hot; the good news is that you are still in the frying pan. When it comes to competent project management, your organization doesn’t have a clue. In your current environment, practically every idea, no matter how lame, becomes a project. Your project managers are experts in the art of “estimate-to-please.” Many project managers routinely don the “Velcro Suit” and customers launch scope balls2

Project Hell: Please do the profession, the stockholders, and the general public a favor--stop all project work immediately. We know your organization has more technology than it can ever use. Management has bought into ERP, CRM, ASP, B2B, A2A, palm tops, wireless, and any type of “berry” or “tooth” product available. The up side: your vendors are very happy. We are sure many sponsors routinely pronounce such mottos as: “failure is not an option,” “just do it,” “e-projects don’t need no project management” or “no project cancellations on my watch.” Does your corporate mission statement proclaim family values? The truth: many team members have not seen their families in weeks. Family picture screen savers don’t count. Bottom line: your organization’s only hope is to tie up some of the sponsors to the Mocking Post and let the fun begin.

at will. Project managers and team members receive insufficient project management training and a robust project management process is nowhere to be seen. Management’s solution is to acquire site licenses to project management software. When a project is successful, it is due to heroic performances by a few individuals, or just “dumb” luck. In short, your organization needs help. Fast.

2 Our euphemism for the scope increase (new functionality) customers insist on adding to an ongoing

project.

the seven deadly sins of project management 2009 market survey · 2010/3/7 · termed these “the...

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