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| Use
Project Management as a Tool to Drive Your Entire Company Forward in
Addition to Ensuring a Successful Project!
Contractors have steered their companies through
stormy business white waters for many decades but none more turbulent than
today’s. In the past,
challenges could be met by cost reductions - either by reducing manpower,
cutting corners on quality, holding wage increases, etc.
These options aren’t effective today in a highly competitive
turbulent business environment. Businesses
must always put their best foot forward in terms of quality.
The customer demands it. Customers
have little tolerance for cutting corners on quality.
Most contractors today agree that the solution to the
majority of business issues involves better control and use of existing
resources. Contractors must
find better ways to do what they’re doing through removing
non-value-added activities and becoming more innovative in how they get
results. The answers lie inside companies with its employees.
How are the company’s activities being managed?
The project management approach is the modern method
for any company whether it’s an engineering firm, builder, hospital,
bank, or government. The
approach applies whether managing a special project or day- to -day
operations.
Some contractors create the illusion that project
management is occurring (a series of predetermined, deliberate acts) when
in fact it is just dumb luck. Some
companies are successful in projects sometimes, but are not successful as
a whole in project management consistently.
Any project can be a success through strong executive tampering and
expediting. In other words,
you can put some ambitious, energetic person in charge of a project and it
will be completed. But at
what cost to the company? At
what cost to the client? How
much of the cost is inflated because of poor coordination, duplication of
effort, poor communication and avoiding resolution of conflict?
For an organization to excel in project management,
there needs to be a steady stream of successful projects caused by a
strong top management commitment that must
be visible.
Do you have consistent project success as defined by
Harold Kerzner, Ph.D., the guru of project management? Are your projects:
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within the allocated time period
-
within the budgeted cost
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at the proper performance or specification level
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with acceptance by the customer/user
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conclude so that you can use the customer’s
name as a reference
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with minimum or mutually agreed upon scope
changes that are win-win
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without disturbing the main work flow of the
organization
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without changing the corporate culture?
If you can’t answer yes
to all of the above questions ask yourself the following -
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Is your project management process clearly defined so that
all managers and each project manager can clearly articulate it,
operationally define it, monitor and assess it as to its effectiveness and
process capability? What are
your project management costs and yield in productivity?
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Do you and your project managers use project management
software as tools – not as a substitute for effective planning or
interpersonal skills? Do you
know where your project management maturity level is in terms of the 16
points of project management maturity?
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Do you know the key success factors for each stage of your
project management process, what your current measures are of these today,
and how they impact your company’s bottom line as well as hit rate on
secured contracts?
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Can you boast in your marketing literature your company’s
project managers are set apart from the competition in that they are all
certified in project management?
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Are all of your project managers skilled in the “body of
knowledge” (a systems approach to planning, scheduling, and
controlling)?
Asking yourself these questions and finding the answers can put you above
the competition and keep you doing what you are doing – better!
(Donna K. Brown, Ph.D. is president and senior consultant of Oak Wood
Associates Ltd. located in
Grand Rapids, OH. Oak Wood
Associates Ltd., is an organization development company specializing in
business advising, strategies, and implementations that help companies do
what they do – better! They
are a partner with the National Institute of Learning, a Project
Management Institute Charter Global Registered Provider, and provide
solutions for improved management across the industries.
Oak Wood Associates Ltd. is currently working with the Ohio
Department of Transportation in Columbus and District 2 in their
“Partnering” initiative. They
have assisted Mosser Construction, Fremont, OH, in their Partnering
process and serve as a facilitator for their partnering sessions on new
projects.)
Return to Top |
| Partnering:
A Tool for Creating Successful Projects
The construction industry often faces rising
litigation costs. Many
methods have been used to resolve disputes – mediation, arbitration, and
conflict-resolution avoidance. Although
these methods have met with a variety of successes, what could contractors
save in time, money, and effort if the cause of the dispute was prevented
in the first place?
The dissatisfaction of a customer or contractor
filing a claim, in most cases, can be traced back to issues related to the
three C’s – communication, coordination, and conflict management. How can the construction industry minimize these situations?
Partnering is a management concept that attempts to
prevent these issues. It is a
planned and orchestrated effort by all stakeholders of a construction
project to commit to an organized effort of establishing an environment of
mutual trust, open communication, cooperation, and teamwork that causes
everyone to win by achieving mutually agreed upon goals and objectives.
The partnering process is not a new concept.
The stakeholders building the Empire State Building in New York in
1929 used the process and completed the project six months ahead of
schedule, often completing 4.5 stories a week!
The U.S. Army Corps of Engineers endorsed the concept in 1990
followed by solid support of the Associated General Contractors of America
in 1991. Partnering has a
track record in the construction industry in Ohio both in residential,
commercial, and as a new initiative by the Ohio Department of
Transportation.
Partnering is not just used in the construction
industry. It has been used
successfully in healthcare, manufacturing, and high-tech businesses.
Partnering can help any time people are working together to achieve
mutual goals in striving toward a successful project.
A contract deals with the technical terms of what is
to be accomplished in terms of compliance and adherence to job
specifications. The charter
in partnering deals with the way people will work together and relate to
one another in carrying out the terms and specifications of the contract.
During the partnering process, a written charter is
developed that specifies the “what’s” and “how’s” of the way
people relate to one another in working together, procedures as to how to
communicate (meetings, RFI’s, etc.), and issue dispute resolutions.
The charter is developed at a ½ day session to two-day session
(depending on the size and nature of the project). At this session, all key stakeholders attend and participate
in teambuilding, developing the charter, and dealing with potential issues
that need discussion or enhance the schedule.
Companies most successful with partnering do not just
have a one-shot partnering session to develop the charter. Successful companies embrace partnering as an attitude and
way of doing business. Besides
regular job and progress meetings, they may call other more formal
meetings as special needs arise. Companies
embracing partnering concepts view it as a way to manage.
Management drives partnering as a process.
The four basic stages of the partnering process are outlined in the
following grid.
Four
Stages in the Partnering Process
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Stages
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Who? |
Objectives
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1.
Orientation and Preplanning
Why?
To
introduce partnering concepts, benefits, and ensure stepping out on
the same page together for the project.
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Owners of the project and their key staff.
Key
staff from prime contractor or sub-contractors that have never been
involved in partnering.
|
·
Understand
what partnering is
·
Understand
benefits
·
Convey
“what’s in it for them”
·
Gain
owner’s needs and expectations
·
Define
schedule and time frames of owner
·
Gain-buy
in to attend formal session
·
Give
overview of formal partnering session agenda so they know how to
prepare and what to expect
·
Gain
feedback from owner in terms of his/her needs at the partnering
session
|
|
2.
Formal Partnering
Why?
To
begin developing a high performing
team.
|
Formal
Partnering
·
Owner
·
Contractors
·
Utilities,
railroads, cities, villages, municipalities, law enforcement,
emergency medical, and other affected stakeholders such as
businesses
|
·
Understand
what partnering is and its uses
·
Develop
a relationship that is ongoing based on trust and open communication
·
Gain
buy-in to partnering in attitude and for developing a charter
·
Develop
procedures for communication, issue resolution, and decision-making
·
Develop
and agree upon a charter for the project
·
Work
on project issues or schedule meetings for issues that can benefit
by the cross-section team being present
|
|
3.
Ongoing Meetings
Why?
To
maintain and support the partnering attitude.
|
Weekly
Job Meeting
·
Owner
·
Contractors
·
Utilities,
railroads, cities, villages, municipalities, law enforcement,
emergency medical, and other effected stakeholders such as
businesses
Intermediate/Progress
Meeting/s
These
meetings may include everyone from the original formal partnering
session as well as key players for the weekly job meetings.
The intermediate meeting/s are at periodic stages during the
course of a project.
|
·
To
assess needs and progress of project
·
To
change scope as needed
·
To
deal with current and upcoming issues
·
To
make decisions and problem-solve
·
To
communicate needed information to team members
·
To
assess how well we are working together and adhering
to the charter
|
|
4.
Close-out Meeting, Celebration, and Follow-Up
Why?
First,
to assess how well the team worked together to meet the goals of the
charter and project overall so that they can obtain feedback for
improvement for future jobs. Second,
the celebration is critical to carry out the spirit of partnering
for a job well done. Third,
the follow-up activities are just good business for being of service
for information, repairs, or any other needs the owner may have.
Plus, it maintains an ongoing relationship for future
business.
|
·
Owner
·
Contractors
·
·
Utilities,
railroads, cities, villages, municipalities, law enforcement,
emergency medical, and other affected stakeholders such as
businesses
|
·
To
assess for improvement and confirm what is done well
·
To
celebrate and show appreciation for a job well-done
·
To
follow-up for needed assistance and for maintaining business
relationships
|
What are the benefits of partnering for a contractor
and/or owner?
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Reduction in the number of construction claims and savings
associated with claims
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Reduction in the number and value of change orders
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Completion of projects on or before the contract completion
date
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Creation of a positive team culture that communicates and
solves problems effectively while maintaining positive working
relationships
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Development of relationships which result in future business
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More effective use of money, time, and resources
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Increased quality and continual improvement
Donna Brown, Ph.D., President of Oak Wood
Associates Ltd., assists companies in business advising, strategies, and
implementation to increase organizational effectiveness and efficiency. Working across the industries, she has assisted companies in
designing their partnering processes and implementation strategies.
She is currently assisting the Ohio Department of Transportation
and the Ohio Contractors Association in their partnering initiative and
works with ODOT Offices and contractors across the state.
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| Transformation:
Getting Personal by Donna Brown, Ph.D. As we begin the new millennium, it’s
a natural time to reflect on our personal lives and business activities. With Oak
Wood’s engagements being in the area of organizational transformations, it often
becomes frustrating when the client expects the organization to transform to a quality
system without personal transformations occurring.
One day when working with a senior leadership group, I made the
statement that we could not go any further in the organization, unless each one of them
personally committed to an accelerated personal transformation. The CEO turned to me and
asked, "Just what is a personal transformation? Can you define it for us?"
It was toward the end of the meeting, so fortunately, I had time to think of how I was
going to position it for the next meeting to make it as concrete as possible. From birth,
human beings have the impulse to transform and that impulse is with us through life. As
adults, our conscious efforts can accelerate our transformations. What efforts do we make?
Personal transformation is more than just pursuing our own happiness or enlightenment.
It’s about learning to live in ways that bring renewed meaning, energy, and happiness
to others and ourselves. When we attempt organizational transformations, we create
learning organizations. A learning organization becomes open to the evolutionary external
business environment in a way that gives the company continuous renewed meaning, energy,
and happiness. We have seen too often those companies whose demise came about from a lack
of transforming to the swirling changing external environment.
How do we lead? How do we approach our work? Is it in a way that brings renewal,
energy, and happiness/enlightenment to ourselves and others? Or is it just to get the job
done, check it off our list, or put in the time to collect our paycheck? Do we perform our
job with system-thinking? Do we interpret data into knowledge? Do we transform knowledge
into wisdom? As the years pass, I appreciate more and more Dr. Deming’s insight with
his system of profound knowledge.
As we enter the new millennium we each need to reflect on transformations and how they
can enrich our personal lives as well as our companies.
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| Chains of
Organizational Structure or Boundaryless Behavior: You Have a Choice We often blame new management/organizational methods on
just not being effective. Many quality, team empowerment, reengineering efforts have been
abandoned. Yet, as Oak Wood Associates Ltd. enters into companies to assess the damage, I
often find these companies have overlooked the importance of the concepts their
organization is built on which leads to the type of organizational structure that exists
for them.
Hardly anyone would disagree that what it takes to succeed today is radically different
from what it took yesterday and tomorrow’s success factors will be even more
different. Yet, we continue to base our organizations on a 17th century model (the
traditional organization chart).
The hierarchical structure is rigidly defined, provides boxes to tell you who you are
and how to relate to someone else only in terms of control, authority, and who you report
to. It also focuses on pleasing the boss, not the customer. If a part of the system breaks
down, the whole system breaks. There is little opportunity to rejuvenate itself and it can
run itself down.
To succeed in the white-water environment of today’s business, leaders need to
rethink the traditional ways that work is accomplished. Whoever has the best ideas -
whether a front-line worker, a senior leader, or a customer - needs to be encouraged to
collaborate with others and make things happen without waiting for some central authority
to give permission. How can a company turn on a dime in a hierarchical structure? The
competition can sweep it away.
The old questions of status, role, organizational level, function - all traditional
boundaries that we have used for years to define and control the way we work are much less
relevant than getting the best people possible to work effectively for the betterment of
product/service to the customer.
Some companies have attempted a structure on a piece of paper that looks more like
teams and less hierarchy. Yet, remnants of control, power, and authority by a few remain
hidden within the structure. How can we make the boundaries of our organizations more
permeable to working better together be it external boundaries (with suppliers or
customers) or internal (departmental barriers, management levels, etc.) (adapted from
Lawrence A. Bossidy ‘s foreword in Ashkenas et.al.)?
After all, do we really want to do it? This concept of boundaryless behavior sounds
threatening and risky. After all, it means transferring decision-making authority away
from the top and out to the frontline; it means listening to the customer and changing our
delivery systems to meet their needs; it means forming partnerships with suppliers rather
than just telling them what to do; it means establishing working relationships with other
departments rather than defending turf.
Taken together, it changes the role of the executive and leader from controller and
authority figure to stimulator, catalyst, cheerleader and coach. As companies move to a
more organic living structure (such as is found in self-organizing nature), a more fluid
structure that is flexible and can reorganize itself quick to adapt to the changing
environment evolves.
Dr. W. Edwards Deming’s model of a quality structure is an example of a living
self-regenerating model. The customer is always the focus. Based on the customer, the
needs are fed back into the processes and suppliers. Everyone’s job is to keep the
customer satisfied- regardless of what their job is. In fact, everyone’s job is to
keep this cycle continuously moving to improve - so that what is done today is thought
about in terms of how it can be done better tomorrow.
"Most leaders do not have the stomach for fundamentally rethinking strategy or
creating radically new organizational capabilities. It requires forgetting as well as a
capacity to learn. It requires tools for honest assessment not just leader happy talk. It
involves the process of re-examining a new organizational theory while critically
evaluating the current structure and theory. It requires great amounts of time in long
range planning while providing leadership in the day to day. But it is this process of
re-examining and re-inventing that will separate the builders (true leaders) from
caretakers and undertakers (cautious administrators and managers only)." - C.K.
Prahalad (Foreword from Ashkenas et. al.)
Are you a brave pioneer builder preparing your organization for the future?????
Ashkenas, Ron and David Ulrich, Todd Jick,
Steve Herr. The Boundaryless Organization: Breaking the Chains of
Organizational Structure, Jossey-Bass Publishers, San Francisco, CA, 1995.
Return to Top |
Consultant:
Friend or Foe?(Chapter 12 By Donna Brown)
From the Executive Nurse: Leadership for Today’s Health Care Transitions,
by Sandra Byers, Editor; Delmar Publishing, 1997.
Part I
During this and future articles, we will be covering various topics from Dr.
Brown’s chapter on working with a consultant in the nationally used leadership text
for graduate level nursing programs. Although written for healthcare, the concepts for
relationships with consultants apply to any industry. Part II will deal with when to use a
consultant and finding the right match.
Prior to approaching any consultant, be sure you and your management team have answered
the following questions for yourselves.
- Do we want the consultant to perform the task, teach us how to perform the task, or a
combination of the two?
- Do we want a consultant locally or can we afford a long-distance consultant? What are
the advantages of each? Drawbacks?
- Do we want to deal with a large consulting firm, a small firm, or a single practitioner?
What are the advantages and disadvantages of each?
- What can we afford a month, a year, or on a project basis to ensure the job is
accomplished? (Compare with what it would cost for you to do it independent of a
consultant should you have the internal expertise.)
- Would a per invoice billing versus a retainer and/or project basis best meet our
financial needs?
- Do we plan to select the consultants we feel comfortable with personality wise as well
as track-record wise prior to having them submit proposals? (Why waste your time and the
consultant’s time asking for a proposal if you don’t feel comfortable with the
consultant in the first place?)
- Do you have an end in mind with milestones leading up to it, so you know when the
consultant’s work is reaching critical milestones as well as completion?
Return to Top |
Consultant:
Friend or Foe?
(Chapter 12 By Donna Brown)
From the Executive Nurse: Leadership for Today’s Health Care Transitions,
by Sandra Byers, Editor; Delmar Publishing,
1997.
Part II
This is the second article from Dr. Brown’s chapter on working with a consultant
in the nationally used leadership text for graduate level nursing programs. Although
written for healthcare, the concepts for relationships with consultants apply to any
industry.
Part I dealt with determining if your need a consultant. This article deals with when
to use a consultant and finding the right match.
General areas which may warrant the use of a consultant include sensitive •issues,
unbiased- third party needs, facilitation needs, lack of time, lack of skills within the
organization to perform the project independently, and sounding-board advice.
There are many types of consultants. Checking the consultant’s background in terms
of prior projects and credentials is extremely important in ensuring that the
consultant’s skills and experience match the desired outcome. It is also important to
review positions held by the consultant prior to becoming a consultant. Although many may
not be consulting in the same field, their track record in gaining results in an effective
and efficient manner is important. For example, do you want a consultant coaching your
managers in coaching techniques who has never been a successful manager?
The selection process for hiring a consultant is dependent upon how widely the
consultant is going to be used and for what purpose. If the consultant is going to be a
personal sounding board for a manager, then it may be a unilateral decision of that
manager. The degree of influence of the project will determine the types of positions and
number of staff who need to be involved in the selection process.
Individually or through a group process (depending upon the representation needed), the
selection team outlines in writing each step of the selection process and procedures for
making it happen. It does not differ that much from any effective selection process. The
stages should include:
• recruiting
• screening
• interviewing
• credentials/results reviews
• references
• critique of proposal and presentation
• sample of skills through simulated activities
In Part III, we will cover 11 major questions to ask the consultant during the
interviewing process. If you need these before the next article is posted, give Oak Wood Associates Ltd. a call and we’ll be happy to send you
the list by mail or e-mail.
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| Book
Review The Five Temptations of a CEO: A Leadership
Fable
By Patrick Lencioni, Jossey-Bass Inc., San Francisco,
CA, 1998
From Oak Wood Associates Ltd.’s
experience, senior management teams can be the most difficult group to work with in terms
of leadership development. When you begin to work with them on focusing on their behavior,
mainly interpersonal, they often become extremely resistant. After all, how could they be
at the top and have been so successful all these years if there were any type of problem
with "their" behaviors?
Patrick Lencioni’s leadership fable gives any of us who dare to lead a wake-up
call. The book’s character, Andrew O’Brien is a combination of all of us as
leaders. At a very low point in his brief tenure as CEO, things get worse and he goes on a
journey with an unlikely guide. This guide dialogues with him in an often-heated debate.
The guide miraculously takes all the many leadership perils we talk about everyday and
puts them into the five temptations of leadership. These five issues evolve around
personal integrity and effectiveness in being a leader.
As stated on the book jacket, "Andrew’s story serves as a timeless and potent
reminder that success as a leader can come down to practicing a few vital behaviors -
behaviors that are painfully difficult for each of us to master."
Although the book title infers it is for CEO’s, the five temptations are for any
leaders at any level of an organization. Just a reminder, this book may be quickly and
easily purchased through amazon.com.
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