Implementing project management is a difficult, complex, and confusing proposition for organizations or companies that want to institutionalize their practices. Thus, it is challenging to implement project management in a way that ensures that practices are widely accepted and consistently followed (Heerkens, 2000).
One of the main obstacles, when trying to present the idea and then implement a project office, is the culture that exists within each organization or company, since within each organizational culture there are values that have been formed and customs that have been forged over time and that presuppose a barrier to any situation that predisposes changes to the internal and external aspects of each organization.
Thus, when mentioning a restructuring or reorganization of the functions or activities to create a projected organizational model or simply a department that functions as a project office, controversy and clashes can be created, as well as negative attitudes that try to devalue the importance of a project office, excelling conformist aptitudes that claim that the way things are is fine.
Therefore, the why and how of creating a Project Office is in our hands, emphasizing that it will not be an obstacle to the development of the organization, but rather a means and instrument to streamline and standardize methodologies. and processes that develop within the organization.
Below is the result of a general diagnosis carried out on two electricity generating companies, following for this diagnosis certain basic guidelines that must be present in any organization that wishes to implement a project office.
II. OBJECTIVES
2.1. OVERALL OBJECTIVE
Carry out a comparative analysis between an organization that has a project office (COMPANY A) and an organization that lacks it (COMPANY B), to define strategic guidelines for a possible implementation in the latter.
2.2. SPECIFIC OBJECTIVES
- Carry out a general diagnosis for the implementation of a project office in COMPANY B. Carry out a diagnosis of the Project office of COMPANY A. Determine the degree of organizational maturity for the implementation of a project management office in COMPANY B. Present the guidelines for the possible installation of a Project Office in COMPANY B.
III. THEORETICAL FRAMEWORK (Based on “How to: Implement Project Management in any Organization” by Heerkens, 2000)
Most organizations already have an idea of their health status in the project management culture. The weaknesses in this culture are accompanied by warnings such as the following:
- A feeling that erroneous projects are being executed. Isolated excellence in managing projects. Project managers who are often frustrated. Excessive levels of interdepartmental conflicts. Sporadic success in projects. Project teams that must start from scratch in each new project. Lack of continuous improvement in project management methodologies Feeling that project management is more of a burden than a facilitator
3.1. HOW TO RECOGNIZE THESE SYMPTOMS
The challenge for some organizations comes in recognizing that most of these warnings can come from different sources and therefore an analysis of their origins can be difficult.
Trying to measure symptoms and then correlate them to determine cause and effect can be expensive and time consuming for some.
This is made easier for organizations that are in their early stages of implementation, where they could apply the five basic elements to the project management culture.
3.2. THE FIVE BASIC ELEMENTS TO DEVELOP THE PROJECT MANAGEMENT (AP) CULTURE
A. STANDARDIZED PROJECT METHODOLOGY
The lack of an adequate methodology creates frustration due to the inefficiency and variability in the execution of the project and its outputs.
This leads to an inhibition of continuous improvement. Ironically, when proposing standardization, people emerge trying to discredit it for reasons such as:
- Projects are variable in nature, so standardization does not make sense. People need to be creative, so standardization restricts them. The cost to develop it is usually very high.
These appear to be valid arguments, but in turn are better arguments for why standardization should be developed.
It is true that projects are unique and variable, so what will give them consistency are the processes and methods used to execute them. With the absence of consistency there is a risk of multiplying the variability.
People do need to be creative. Unfortunately, managing a project creatively runs counter to evidence of constancy of purpose, clarity, and predictability as facilitators of success.
Although it can be expensive to develop standards, costly ones can be higher without standardization for projects, as the cost of inefficiency is difficult to determine.
B. JOB DEFINITIONS AND PERFORMANCE EXPECTATIONS
Many people are managing projects without really knowing what their functions are, learning from their wits, their mistakes and observing some methods. And it is not surprising that there are people working on project teams with no understanding of the responsibilities or duties of their position, and they are not sure how to interact with the project manager.
This can create conflict between groups and make the most difficult period in the project difficult.
The solution is that people must know what is expected of them and what to do in their position through the documentation of the same.
C. INDIVIDUAL SKILLS DEVELOPMENT PROGRAMS
This point is important for the growth and development of each person involved in the project. However this also relies on the successful implementation of points 1 and 2. Only once the organization has defined what to do and how to do it can start individual skill development programs.
The term individual refers to a program that is sensitive to the different positions, responsibilities, duties and career aspirations that exist within the organization.
The term skill development is used instead of training, to describe the processes by which an individual improves his competence and aptitude. Training is only one means by which the individual learns to improve her work.
D. METRICS FOR THE EXECUTION OF THE PROJECT
Measurement of project performance is the key to continuous improvement. The secret is to recognize that it covers a wide spectrum of interpretations. It can be seen as a report of individual or personal performance, so the development of personal skills should include an assessment and analysis component.
On the other hand, it has an organizational perspective, since the entire organization would benefit from the systematic analysis of the project. Thus the measurement of project performance can be done in subcategories such as:
- Project efficiency
It measures project outputs against objectives and how efficiently they were achieved. They measure short-term success. It can lead to various organizational improvements such as:
- Development and improvement in the estimation of algorithms. Improvement of the entire project process. Identification of the optimal execution methods. Improvement of the internal design processes. It reveals the futility of unrealistic assumptions or objectives.
2. Impact on the client or user
Measure effectiveness in meeting customer requirements. It can help improve process requirements and reveal areas where certain practices can harm the process. It breaks the myth that if the objectives are met the client will be satisfied.
3. Business success
Generate profits, reduce costs, increase sales, etc; Measure the current impact of the project and confirm that the organization is achieving results.
E. AN ORGANIZATIONAL SUPPORT CULTURE
This is the most difficult element to complete, and it is in turn the one that has the most influence on the successful implementation of the project culture.
What makes it so difficult is that there are many aspects related to it, in addition many of these aspects are related to human behavior (aptitudes, beliefs, power, influence, etc.).
What makes it a frustrating point is that there is a gap between what the organization says and what it does.
3.3. WHAT IF AN ITEM IS MISSING OR DEFICIENT?
Using deficiency signals can be of great value to be correlated to each specific element, revealing the absence or deficiency.
A. IF A STANDARDIZED PROJECT METHODOLOGY IS MISSING, IT CAN BE OBSERVED THAT:
- Teams waste a lot of time on simple things. Emphasis is placed on rewarding results rather than rewarding the process. Prevailing end-of-means mentality prevails. Documentation and information management practices are random and variable.
B. IF THE DEFINITION OF POSTS AND PERFORMANCE EXPECTATIONS ARE MISSING, IT CAN BE OBSERVED THAT:
- Project managers pay close attention to their discipline and not to the entire project. Frustration or confusion by project members on how to perform their tasks. Interpersonal conflicts over project responsibilities or roles. Confusing assessment of project performance. staff ask for training and development programs.
C. IF SKILL DEVELOPMENT PROGRAMS ARE MISSING, IT CAN BE OBSERVED THAT:
- The success of the project seems to depend on the project manager. The software tools are underused. There is a cancellation of risk management methods. Lack of knowledge when making decisions. Poorly managed interpersonal relationships.
D. IF PROJECT PERFORMANCE METRICS ARE MISSING, IT CAN BE OBSERVED THAT:
- The same mistakes are repeated. Conflict in defining what constitutes the success or failure of the project. Emphasis on individual heroism and not on group work. Audits are seen as waste of time. Project staff cannot describe what aspects are valued by the organization.
E. IF SUPPORT FOR ORGANIZATIONAL CULTURE IS MISSING, IT CAN BE OBSERVED THAT:
- The managers of project waste time selling the idea of project managers belatedly AP.Los assigned to the proyecto.Se difficult process of reconciling the objectives of the team with those of the administrador.Se ignore the conduct contrary to the AP, or worse, They are rewarded. Excessive changes in the amounts of resources. Many people within the organization are unaware of the purpose, value or function of the PA. Individuals in the team do not have the feeling of belonging to the project. Teamwork is not rewarded, if not individualism. PA is not viewed as a competent core within the organization. Wrong projects are selected due to lack of priority information. Dependencies between projects are unclear.
3.4. HOW TO BUILD AN AP CULTURE?
Despite the method used to determine the absence or deficiency of an element, you can see the need to correct one or more of the five elements.
The process begins with the knowledge that there are “building blocks”, such as the following:
A. BLOCKS OF STANDARDIZED METHODOLOGIES
a.1. Project process implementation manual.
It describes the project execution processes and needs to be well distributed and understood by the project team.
a.2. Project management processes manual.
Define the methods and tools in detail, explain where and how they should be used with the implementation of processes.
a.3. Publication of expectations about processes.
Expectations to achieve consistency of processes on how and when to follow them, attached to the requirements of each position and their responsibilities.
a.4. Correctly define project performance.
Provides guidelines to help staff understand what constitutes project success. Success must be focused on using the appropriate processes and methods.
to 5. Development and use of standardized forms and procedures support.
For example, scheduling templates, and estimation algorithms.
B. WORK AND PERFORMANCE DEFINITION BLOCKS
b.1. Description of all job related functions.
Include a detailed description of job duties and competencies so that overlaps and conflicts can be avoided.
b.2. Performance expectations for each job within the project.
Often limited to statutes on technical performance, conduct and experience must also be included.
b.3. Growth media.
Refers to the creation of different skill levels within the project community.
b.4. Career means.
It is reflected in the creation of promotion opportunities within the project for the organization.
C. BLOCKS OF INDIVIDUAL SKILLS DEVELOPMENT PROGRAMS
c.1. Continuous measurement of individual skills.
The instrument for these measurements must come from the definitions of the work, it must be a 360-degree analysis.
c.2. Formal career planning process.
The means of promotion must be well defined to create opportunities for those involved in the project.
c.3. An extensive training curriculum.
This should include training courses relevant to the project.
c.4. Internal tutoring programs.
Take advantage of a team member's experience to teach others.
c.5. Internal internship programs.
Making exchanges between departments can result in advantageous growth.
c.6. Support for external development opportunities.
This includes professional partnerships and programs with universities.
D. BLOCKS OF METRICS FOR PROJECT PERFORMANCE
d.1. Correct documentation of performance.
They are closely linked to the methodologies used, including the statutes of what is desirable and what is not, the acceptable behaviors of both the team and the project manager, leaving some flexibility.
d.2. Continuous evaluation and analysis of current results.
It is imperative that project results are properly stored accurately, and team members should not be punished for achieving less than desirable.
d.3. An effective audit program.
Refers to the internal review of the project when it is in progress. The audit should not be seen as an interruption, but as a positive means.
d.4. Data collection and consultation capacity.
Procedures and systems to efficiently and effectively store the information generated in the project.
d.5.Analysis of the lessons learned.
It is primarily up to the organization to carry out this function, and to prioritize success metrics.
d.6. Continuous and periodic benchmarking.
It refers to understanding how well others execute projects, and learning performance objectives.
E. BLOCKS OF SUPPORT FOR ORGANIZATIONAL CULTURE
e.1. The Organizational Structure led to the execution of Projects.
It consists of formally accommodating how to do things to migrate to an AP culture.
e.2. An organization oriented to jobs in function of the PA.
PA within the organization must be understood and valued as something very important.
e.3. The early assignment of a Project Manager.
This allows the Project manager to participate in negotiation functions, dealing with clients, financial analysis, among others.
e.4. Maintain the authority of the project manager throughout the project life cycle.
e.5. Show respect for the Project Manager and his methodologies.
e.6. Positive reinforcement for those who follow a team orientation process (Give more importance to teamwork).
e.7. Formal assignment of project sponsors.
e.8. Support processes at the organizational level.
e.9. A formal project management office (Take place where necessary).
IV. METHODOLOGICAL ASPECTS
4.1. THEORETICAL BASE
The study methodology is mainly based on the theory raised by the author Gary R. Heerkens, in the article “How to: Implement Project Management in any Organization”, where five points are specified keys to successfully implement a project office as an integral part in the administrative development of any organization.
4.2. COLLECTION INSTRUMENT
The questionnaire used to carry out a diagnosis of the company was structured according to the guidelines or parameters mentioned in the theoretical framework (Own Preparation)
4.3. STUDY INSTITUTIONS
The Institutions under study are: COMPANY B (Does not have a PMO) and COMPANY A (Has a PMO), which function as generators and distributors of electrical energy to certain specific areas of the country. The first company does not have a specific project office, while the second company has a project planning office, which serves as a PMO.
4.4. APPLICATION OF THE QUESTIONNAIRE
The questionnaire was applied to project managers of the two institutions under study. In this case the questionnaire was done personally.
4.5. PROCESSING AND ANALYSIS OF DATA
After applying the interview, the information was processed in order to make a diagnosis based on the theoretical framework of this work. This allows to identify the main guidelines to implement a project office in COMPANY B, and at the same time take necessary measures for an improvement in the project office of COMPANY A.
V. RESULTS
The results that will be described below refer to the comparison of the information obtained from the two questionnaires that were applied to the different companies mentioned above.
5.1. BACKGROUND AND CHARACTERISTICS OF THE COMPANIES UNDER STUDY
The main backgrounds of the companies under study are described in the following table
Table 1. Characteristics of two electricity generation companies (COMPANY BY COMPANY A)
| APPEARANCE | COMPANY B | COMPANY A |
|
-– | -– |
|
Operations Department
(Executing unit) |
Planning Director |
|
34 years | 30 years |
|
|
|
|
In all | In all |
|
|
|
|
10 | 5 |
The mission and vision of each company are described in the following table:
| APPEARANCE | COMPANY B | COMPANY A |
| MISSION | Supply energy with environmental responsibility, in a timely, innovative and quality manner as a leading service company, manager of the development of the Northern Huetar Region. | We are an innovative company with social and environmental responsibility, which develops and fully provides excellent services supported by people committed to satisfying our customers and the community in general. |
| VISION | We will be recognized as the engine of development in the Northern Huetar Region, with users proud of your company | To be leaders in public services that improve the quality of life of the community in harmony with the environment. |
5.2. RELATIONSHIP OF COMPANIES WITH PROJECTS
- The company EMPRESA B, currently has three projects: El Chocosuela 1 (built on a turnkey basis) and Chocosuela 2 and 3 (which are under construction). On the other hand, COMPANY A does not specify the number of projects carried out, but they mention that they have been a large number in various fields such as: Networks, sewerage, electrical operation, all of which are supported by the master development plans. Their projects have been the following: In COMPANY B, the acquisition of land and the relationship with neighbors, and in COMPANY A, has been the confrontation with groups of adverse criteria. The methodologies that they mention to use in projects in the case of COMPANY B, are the turnkey contracts and the hiring of firms that manage and subcontract. In the case of COMPANY A,They mention the application of prefeasibility, feasibility, and environmental studies, among others. In COMPANY B, the executing unit, together with management and the financial department are in charge of projects, in COMPANY A the Project Planning Office is the in charge of this function. COMPANY A defines the Project Management Office as follows: "It is the body of the company dedicated to studying the needs of the environment and defining projects, planning and executing them." On the other hand, COMPANY B defines them as follows: "The office in charge of managing the projects in the construction stage." Among the techniques and tools used by COMPANY B are, supervision through progress reports and contracting,while COMPANY A uses as its main tool a software used for project management (PROJECT MANAGER 2000). The selection of project personnel in the two companies is based on experience and capacity, through a competition. projects is carried out through the evaluation of annual operating plans, in the case of COMPANY A, while COMPANY B controls through supervision.To measure the risk in the projects, COMPANY A uses probabilistic methods and COMPANY B is based on feasibility and sensitivity studies.Project control is carried out through the evaluation of annual operating plans, in the case of COMPANY A, while COMPANY B controls through supervision.To measure the risk in projects, COMPANY A uses probabilistic methods and COMPANY B is based on feasibility and sensitivity studies.Project control is carried out through the evaluation of annual operating plans, in the case of COMPANY A, while COMPANY B controls through supervision.To measure the risk in projects, COMPANY A uses probabilistic methods and COMPANY B is based on feasibility and sensitivity studies.
5.3. MANAGEMENT OF THE FIVE BASIC ELEMENTS FOR THE IMPLEMENTATION OF A PROJECT ADMINISTRATION OFFICE
A. STANDARDIZED PROJECT METHODOLOGIES
| APPEARANCE | COMPANY B | COMPANY A |
| A. Do you have a standardized project methodology? | NO | YES |
| B. Do work teams waste a lot of time on simple things? | THEY DO NOT KNOW | YES |
| C. Projects reward or give greater interest in results and not in processes and methodologies | YES | NO |
| D. How are the information and documentation management practices ?: | RANDOM AND VARIABLES | DEFINED PRACTICES |
B. DEFINITION OF POSTS AND PERFORMANCE EXPECTATIONS
| APPEARANCE | COMPANY B | COMPANY A |
| A. What is given more importance:? | TO THE ENTIRE PROJECT | TO THE ENTIRE PROJECT AND TO INDIVIDUAL ASPECTS |
| B. Is there confusion among project members when carrying out tasks? | NO | YES |
| C. Are there interpersonal conflicts over responsibilities? | YES | NO |
| D. Are there any criteria for evaluating project performance? | NO | YES |
| E. Do staff ask for, or is the organization lacking, training and development programs? | NO | YES |
C. SKILLS DEVELOPMENT PROGRAM
| APPEARANCE | COMPANY B | COMPANY A |
| A. Do you think that the success of the projects depend on the project director or manager? | YES | YES |
| B. What software tools do you use for projects? |
|
|
| C. Software tools are used in the best way (There are trained personnel to use it) | YES | NO |
| D. Do you think there is a need for training in the use of these software tools? | NO | YES |
| E. Is there a method for risk management? | NO | YES |
| F. Are project staff trained to make decisions? | YES | YES |
| G. Are interpersonal relationships well managed? | NO | YES |
D. PROJECT PERFORMANCE METRICS
| APPEARANCE | COMPANY B | COMPANY A |
| A. Are the same mistakes repeated in projects? | NO | NO |
| B. Is there a way to define the success or failure of the projects? | NO | YES, THROUGH THE ANNUAL OPERATIONAL PLAN |
| C. More emphasis is placed on projects | TO GROUP WORK | TO GROUP WORK |
| D. Do project staff know of the organization's assessment? | NO | YES |
| E. Are there audits on projects | YES | YES |
| F. How important are these audits ?:
to. For Management b. For staff |
FOR MANAGEMENT AND STAFF ARE VERY IMPORTANT | MANAGEMENT IS A WASTE OF TIME AND LITTLE IMPORTANT FOR PROJECT STAFF |
E. SUPPORT FOR ORGANIZATIONAL CULTURE
| APPEARANCE | COMPANY B | COMPANY A |
| A. Are project managers assigned at the right time? | YES | YES |
| B. Do these directors participate in the definition of the projects? | YES | YES |
| C. Are the objectives always endorsed by project managers? | YES | YES |
| D. Is project management seen as important and functional? | YES | YES |
| E. Do staff always feel familiar with projects? | YES | YES |
| APPEARANCE | COMPANY B | COMPANY A |
| F. Are the projects selected always the right ones? | YES | NO |
| G. What are the main criteria for selecting projects? | STRATEGIC | FINANCIAL, TECHNICAL, STRATEGIC AND LEGAL |
| H. Are the dependencies between the departments of the organization known? | YES | YES |
| I. Would you be willing to implement a Project Management Office? | YES IN ENERGY DISTRIBUTION BUT NO IN GENERATION OF THE SAME | IT ALREADY EXISTS |
| J. Who or who would make the decision to implement a Project office? | THE MANAGEMENT PRESENTS IT TO THE BOARD OF DIRECTORS | YE EXISTS BUT WITH A DIFFERENT NAME (PLANNING ADDRESS) |
SAW. CONCLUSIONS
- COMPANY B is not clear or well defined that they are project management methodologies, confusing in most cases these with studies that are carried out within the project or before the project, otherwise it occurs with COMPANY A, since in its Experience has defined a clear methodology for project management, based so far on the lessons learned and the capacity of their managers. When defining the problems that arise in projects, both institutions mainly conceive of problems as events outside the project and not as the lack of an adequate methodology that can generate problems within the project. COMPANY A has a duly identified project office within the organizational structure of the same company,while COMPANY B has not identified or defined an office of this type, involving management, the financial area and the executing unit as entities involved in project management. The idea or concept of a project office is more limited in COMPANY B, because its functions are not clear, while COMPANY A, due to the organization it has achieved, has a broader vision of the concept of project office. To measure the risk involved within each project, COMPANY B uses financial aspects as the main indicator and supervision as a control method. COMPANY A assesses the risk through probabilistic methods and as a control method is based on the provisions of the annual operating plan.Regarding the administration of information and documentation thereof, COMPANY A has defined collection and filing practices, counting on an established methodology for this, meanwhile at COMPANY B, they carry out these practices in a variable and random way. In performance expectations, both individual and group aspects are emphasized in COMPANY A, having criteria for measuring performance. In COMPANY B, greater attention is given to aspects that cover the entire project but at the same time lack aspects to measure the performance of the projects. Both companies value training as a good tool to improve the performance of personnel and therefore the Project success. Project success at COMPANY A is measured through annual operating plans,This avoids the incidence of errors. At COMPANY B there is no clear way to measure the success of the projects.On the one hand, COMPANY A sees the audits as a waste of time or not very important, while COMPANY B classifies them as important for the control of the project. Of the software tools that both companies use for their projects, the Microsoft Project, Excel, Word and Visio stand out, among others. In both organizations, support for the organizational culture is important since it is a functional way of involving staff and that become familiar with the projects. COMPANY A uses as main criteria for the elaboration of a project the results of a comprehensive study at a technical, economic, legal and strategic level,In turn, COMPANY B is mainly based on strategic criteria for the elaboration of a project. COMPANY B would only like to establish a project office in the electrical distribution part, this due to organizational reasons.
VII. RECOMMENDATIONS
Of the five essential points for the proper implementation of a project management office, COMPANY A has the five points in an acceptable way, since there have been certain variations in some aspects due to the nature of the organization. COMPANY B, within the diagnosis made, has only two of the five points mentioned, namely:
- IT HAS SKILL DEVELOPMENT PROGRAMS IT HAS SUPPORT FOR ORGANIZATIONAL CULTURE.
And within the missing points are:
- LACK OF STANDARDIZED METHODOLOGIES LACK OF A CLEAR DEFINITION OF JOBS AND EXPECTATIONS OF PERFORMANCE LACK OF PERFORMANCE METRICS
Thus, according to these weak or missing points, it is recommended for each of them:
LACK OF STANDARDIZED METHODOLOGIES
- Establish a project process implementation manual. Establish a project management process manual. Post process expectations. Define project performance.
LACK OF A CLEAR DEFINITION OF POSTS AND PERFORMANCE EXPECTATIONS
- Describe in a job manual the roles and responsibilities of each member of the organization Establish performance expectations for each type of job Stimulate opportunities for staff growth within the organization according to different skill levels
LACK OF PERFORMANCE METRICS
- Correctly document the performance of each position through the respective methodologies Practice continuous evaluation and analysis of the results obtained throughout the project Collect the data and information generated from the project appropriately to establish an effective consultation base Apply the continuous and periodic improvement through imitation of best practices from other organizations
BIBLIOGRAPHY
Heerkens, G. 2000. "How to: Implement Project Management in any Organization".
True company names are omitted in order to protect identity. However, the data is real and provided by the project managers of both organizations.
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