GENERAL MANAGEMENTVS

PROJECT MANAGEMENT

WHAT’S THE FOCUS OF

• RESTRUCTURING

• REENGINEERING

• REINVENTING

• REORGANISATION

• GLOBALISATION

WHAT’S THE FOCUS OF

• DOWNSIZING

• RIGHTSIZING

• OUTSOURCING

• FLATTING THE

ORGANISATION

FOCUS IS ON• CLIENT ORIENTATION

• EMPLOYEE EMPOWERMENT

• QUALITY IMPROVEMENT

• VALUE DRIVEN

MANAGEMENT

• KNOWLEDGE DRIVEN

ARE THESE THINGS HAPPENING?

Co.’s becoming smaller Co.’s employing lesser

employees Hierarchical organisations

becoming cross functional

team organisations Vertical division of work

replaced by horizontal slicing Work requires increased

learning, higher order thinking

& constant improvement

WHY ALL THESE?

SURVIVAL IN CHANGING TIME

AND

COMPETITIVE PRESSURES

AS COMPETITION MOUNTS

COMPANIES BREAK-UP

CHANGE ACCEPTED AS A WAY OF LIFE

CROSS FUNCTIONAL TEAMS EMERGE

CONTINUOUS IMPROVEMENT INITIATED

THEREFORE,

WE MUST COMMIT

OURSELVES TO

CHANGE AND WE

NEED THE TOOLS

CHANGE IS,

UNCOMFORTABLE

BUT INEVITABLE

& ESSENTIAL

TO MANAGE CHANGE

“WHAT DO YOU NEED, IN ORDER TO MOVE ON, WITHOUT

JUDGEMENT AND WITHOUT BLAME?”

CHANGES MUST BE IMPLEMENTED EFFECTIVELY

HOW DO YOU DO IT

BY MBP -

MANAGEMENT BY PROJECTS

CAN WE ADOPT MBP AND BE SUCCESSFUL?

5 QUESTIONS FOR YOU….

1. IS DOING THE RIGHT THING

PROJECT MANAGEMENT?

2. ARE PROJECTS DONE ROUTINELY?

3. IS EVERYBODY A PROJECT MANAGER?

4. IS THE PROJECT MANAGER FULLY RESPONSIBLE FOR THE PROJECT?

5. ALL PROJECTS START WITH DEFINED PARAMETERS?

WE NEED A PARADIGM SHIFT

PM STARTED IN 50’S

ONLY IN LAST 15-20 YRS

PEOPLE ARE LOOKING

AT MBP AS AN

ALTERNATIVE TO

FUNCTIONAL MANAGEMENT

IN ORGANISATIONS

GERAI’S PROPOSED ABOUT 15 YEARS AGO THAT:

“Use project management and projects to bring about change in organisation---- leading to a new project-oriented company, which

manages by project.”

“Can project managers profess this concept with a compelling

commitment?”

HANDY SAYS,

Managers become stewards

e.g. Honda: flexible,

strategy oriented

Company uses

project teams

KANTER SAYS,

1. Company work force contractual fringe Flexible labour force

2. Company work force will run the project

3. Organisation will go flat

- Junior

- Qualified

- Senior

- Partner

- Shifting teams

- Work in teams

- Partner and others are team

members

The authors who mirror and shape corporate and academic management thinking these days

• Peter F. Drucker

Managing in Turbulent times (1980)• Tom J. Peters

Thriving on chaos (1987)

Liberation Management (1992)

Reinventing Work (1999)• P.Vaill

New ideas for a world of

chaotic change (1989)• C.Handy

The age of unreason (1989)• R.Reich

The work of nations (1991)

THE FIRM WHETHER IT HAS 2 OR 22,222 EMPLOYEES HAS AN INVARIANT

COMMON DENOMINATOR;

THE PROJECT – WITH BEGINNINGS AND ENDS AND CLIENTS AND

DELIVERABLES – ARE WHAT FIRMS DO, PERIOD

REINVENTING WORK

TOM J. PETERS (1999)

MANAGEMENT REQUIRES:

• Team Working

• Cross functional

perspective

• Process orientation

• Logical progress

•Strong leadership

GENERAL MANAGEMENT VS

PROJECT MANAGEMENT

FUNCTIONALMANAGEMENT

PROJECTMANAGEMENT

QUESTION IS

WHICH IS THE NORM OF THE DAY?

PM

GM

OR GM

PM

MANAGERS & LEADERS FOR PROJECT MANAGEMENT

GOOD THINKERS SHOULD ALSO KNOW HOW TO

IMPLEMENT WELL

GOOD LEADERS SHOULD BE ALSO GOOD MANAGERS

CAN ALL THESE CHANGES BE IMPLEMENTED EFFECTIVELY BY

MBP?

HOW DO U DO IT?

BY MBP –

MANAGEMENT BY PROJECTS

CAN WE ADOPT MBP AND BE SUCCESSFUL?

MBP MEANS

MANAGING ALL WORKS IN A COMPANY AS PROJECTS

MBP IS USED IN

MULTI PROJECT

ENVIRONMENT

WELL

TQM VS MBP

TQM IS DOING

RIGHT THINGS

MBP IS DOING

THINGS RIGHT

WHAT IS TOTAL QUALITY

MANAGEMENT (TQM)?

TQM IS A SYSTEMATIC GROUPWIDE INITIATIVE IN WHICH ACTIVITIES ARE

DIRECTED TOWARDS ACHIEVING CONTINUOUS IMPROVEMENTS TO MEET AND EXCEED CUSTOMERS’

REQUIREMENTS

EXTERNAL BENEFITS

• CUSTOMER SATISFACTION

• COMPETITIVE ADVANTAGE

• INCREASED MARKET

SHARE

• IMPROVED CORPORATE

IMAGE

WHAT’S MBP

GETTING THINGS DONE

MBP IN MALAYSIA

MALAYSIAN PRIVATISATION OR CORPORATISATION POLICY – IS A FORM OF DEREGULATION

e.g.

IPP’S vs TENAGA

NASIONAL

TQM LEADS INTO MBP WITH 5 PHASES

INITIATION,

PLANNING,

EXECUTION,

CONTROL AND

CLOSE OUT

TQM AND MBP ARE LINKED

TQM NEEDS HELP FROM MBP

TQM ADOPTED

ORGANISATION IS ALWAYS IN LEARNING MODE

HOW ORGANISATION SHOULD BE STRUCTURED?

FLEXIBLE AND DYNAMIC ORGANISATION BUILT AROUND

WORK TO BE DONE WILL SURVIVE

THEY WILL EXPAND COMPARED TO FUNCTIONAL ORGANISATIONS

TQM AS A PHILOSOPHY

HOW IT COMBINES WITH BUSINESS PLANNING &

IMPLEMENTATION

(MBP)

(Chart 1)

INTEGRATING TQM AND MBP WITH COMPANY PLANNING PROCESSES

STRATEGIC PLANNING

ALL-COMPANY EMPLOYEES

(CONTINUOUS IMPROVEMENT TEAMS) QUALITY ASSURANCE QUALITY CONTROL MANAGEMENT OF EACH PROJECT

LONG TERM TASKS & ASSIGNMENTS IMPROVEMENTS IMPROVEMENTS COMPANY OPERATING PROJECTS & NEEDS VISION NEEDS ADJUSTMENTS ADJUSTMENTS SHORT-TERM IMPROVEMENTS OPERATING STRATEGIC PLAN OPERATING PLAN NEEDS (BY PRIORITIES) (BY PRIORITIES)

RESOURCE NEEDS RESOURCE AVAILABILITY

& AVAILABILITY & COMMITMENT FINANCIAL & OTHER

RESOURCE

PROJECT HISTORICAL DATA

OPERATING PLANNING

TOTAL QUALITY MANAGEMENT

(TQM)

HIST. DATA EST. STANDARDS EXPERTISE

MANAGEMENT BY PROJECTS

(MBP)

PROJECT PLANNING

PHASE

PROJECT EXEC/CONT

PHASE

PROJECT CLOSE OUT

PHASE

PROJECT INITIATION

PHASE

MBP

TQM

MBO

FAILURE 1

PC & E

EXPERIENCE WESTERN US UTILITY CO.

FAILURE 2

THOSE WHO DO NOT UNDERSTAND THESE SUFFERED – MANY

E.G.’S RECENT ONE IS IBM

Steps for Implementing MBP

Executive Briefing

Basic Seminar

Basic and Specialized Seminars

Situation Survey Adaptation Professional

To company Certification Needs International

Symposia Start-up Workshops Implementation Support

Diagnosis MBP

Program Design

Project Terms

Selected Managers and Professionals

Professionals

Managers

Directors

MBP SUPPORTS? Flat organisation Goals driven organisation Interchangeable leadership

(because cross functional) Communication Self-directed teams Empowerment of employees Accountability

Organization Seen as a Portfolio of Projects

Strategic

Objective

Goals Project 1 Project 2

Project 3

Area A

Area B

Area C

Upper Management

Project 1A

Project 1A

Project 1A

Project 1A Project 1B

Project 1B

Project 1B

Project 1B

Project 1C

Project 1C

Project 1C

Project 1C

WHAT MUST WE DO TO PROMOTE THIS CONCEPT?

Enhance image of PM to attract

functional managers Convince the gurus that PM is the

key to future business success Develop tools and methods to

support new direction Adapt the current tools to

new direction Highlight the fact that change

management required project

management to manage

SOME DRAWBACKS

1. Personal adaptation

2. Looser, less structured organisation

3. Task of developing competent project personnel

4. Overall integration of Projects

NEW PROJECT MANAGERShould have;• Full understanding of goals• Full understanding of staff needs• A good head for details• A strong commitment• Ability to manage problems• Good negotiation skills• Focus on results and profitability• Cost consciousness• Business skills• Political savvy• High tolerance for ambiguity

- David Frame, PMI, 2000

WHAT’S THE ROLE OF NEW PROJECT MANAGER?

Project managers must contribute to

continuos survival of organisation Not tied to development nature of

projects Tied to strategies and direction of

organisation Involved in business redesign projects

and organisational change projects They must transform organisation May be drawn from ranks of

- traditional project managers and

- current business managers They must become “transformers”, not

mere “implementors”

WHO SHOULD DO IT?

ORGANISATION MUST ADVOCATE THIS –

BE CHAMPION TO LINK TQM WITH MBP

PROJECT MANAGEMENT VS GENERAL MANAGEMENT

GENERAL MANAGEMENT PROJECT MANAGEMENT• FUNCTIONAL

•DO THE RIGHT THING

• ROUTINE

•REPEAT

• LACKADAISICAL

• RESOURCE DRIVEN

• STRUGGLING FOR

SOLUTION

• PROJECTISED

• DO IT RIGHT

• DEFINITE

• DONE ONLY ONCE

• URGENT

• RESULTS DRIVEN

• THE SOLUTION BUT

IGNORED

THANK YOU

- THE END -