Data Dont Lie
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MP NETWORKMAKING PROJECT MANAGEMENT INDISPENSABLE FOR BUSINESS RESULTS.
AUGUST 2013VOLUME 27, NUMBER 8
BIGDATA:
FUELING GOVERNMENT EFFICIENCY
MOBILE GAMING RACES AHEAD
OUTSOURCING PMO COMPETENCIES
KEYS TO MANAGING TOP TALENT
RECOVER FROM PROJECT FAILURE
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40The Value Proposition
Every project is differ-ent, but organizations
must look at eachthrough a shared lens:
business value.by Matt Alderton
LeaAUGUST 2013 | VOLUME 27, NUMBER 8
Elizabeth Virdin,PMP, CatholicHealth Initiatives,Englewood,Colorado, USA
PHOTO BY JESSYEL TY GONZALEZ
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FeaturesAUGUST 2013 | VOLUME 27, NUMBER 8
Data Doesnt LieBig data can help government agencies
cut costs, slash bureaucratic layers andimprove transparencyif they can get buy-in.
By Sarah Fister Gale
Run Like the Wind
DONG Energy leveraged lessons learnedto manage unexpected risks on Denmarkslargest wind farm project to date.
By Clay Dillow
Sticking PowerMoney may attract a star project manager,but it will rarely keep one around.
By Lillian Cunningham
The Future Is NowPrepare for a career move by sharpening theskills needed for tomorrows project, today.
By Cindy Waxer
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2629 July 2014 | Portland, Oregon, USA
Call for submissions openfrom 1 August 15 December 2013The conference will feature a variety of formats, including paper presentations,
symposia and poster presentations. PMI is seeking conceptual, empirical or
theoretical papers/symposia on topics including:
Works-in-progress are also welcome.
Change management
Decision making in projects and programs
Engaged scholarshipEvidence based project management
Lessons learned
New teaching cases in project management
Project management curriculum development
Risk and uncertainty
Theory building and adaptation
Submission guidelines atPMI.org/REC2014Submit
Share your insight at the
PMI Research & Education Conference
http://www.pmnetwork-digital.com/pmnetwork/201308/TrackLink.action?pageName=4&exitLink=http%3A%2F%2FPMI.org%2FREC2014Submithttp://www.pmnetwork-digital.com/pmnetwork/201308/TrackLink.action?pageName=4&exitLink=http%3A%2F%2FPMI.org%2FREC2014Submithttp://www.pmnetwork-digital.com/pmnetwork/201308/TrackLink.action?pageName=4&exitLink=http%3A%2F%2FPMI.org%2FREC2014Submit -
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DOWNLOAD THE PM NETWORK APP and read the magazine on youriPad,iPhoneoriPod Touch, or Android device.
A sAUGUST 2013 | VOLUME 27, NUMBER 8
MAKING PROJECT MANAGEMENTINDISPENSABLE FOR BUSINESS RESULTS.
THE EDGE
10 Navigating the Minefield Mining projects find a new
homeand outspokenneighborsin Latin America.
13 Anchoring Projects
to Strategy PMI-sponsored research
reveals three ways to achievestrategic alignment.
13 Smog Casts Shadow OverRailyard ProjectA skeptical public puts acontroversial rail project at risk.
15 Stalled Projects ErodePublic Trust
Three hamstrung Germanprojects highlight the need forproper planning.
16 Colombia Targets Tech Colombia invests in project
training and infrastructure todevelop its IT industry.
17 Talent No-Show BRIC needs project talentbut
has a tough time finding it.
VOICES
20 Inside Track The Game PlanKynan Woodman,Electronic Arts, Melbourne,
Australia
22 In the TrenchesCommunity Consolidation
By Daniel Messinger; Capt.Elizabeth Booth Myhre, NurseCorps, U.S. Navy; Col. JohnBulick, U.S. Air Force; andRobert Silverman
24 Project Toolkit On the Rebound
COLUMNISTS
26 Career Q&ATemp to Hire
By Lindsay Scott
27 Take the Lead Triple Threat
By Roberto Toledo, MBA, PMP,Contributing Editor
28 Inside the PMO Hired Help By Abid Mustafa
ALSO IN THIS ISSUE
7 Feedback
What word describes yourproject management style?
19 Metrics Natural gas projects are
on the riseand so aretheir risks.
61 Special AdvertisingSection
Education and training
68 MarketplaceBridging the gap between
strategy and projects71 Directory of Services Project management
resources
72 Closing Credit A project team faces a
cliffhanger.
10
17
24
28
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STAFF EXECUTIVE
President & Chief Executive OfficerMark A. Langley+1 610 356 4600,
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9/76 AUGUST 2013PM NETWORK 7
LINKEDINPMIS CAREER CENTRAL GROUP ON LINKEDIN
Volunteer State
Olga Brouckova, PMP, asks: What are the most inter-
esting volunteer activities to maintain a PMI credential?
Cynthia (Cindy) Berg, PMP, responds:Ive been a
PMI member and volunteer since 1991. I initial ly
focused on the local chapter as the vice president
of communications, education and programs.
In 1995, I volunteered on a global level by working on A Guide t o the Project
Management Body of Knowledge (PMBOK Guide).
Volunteering always has been interesting, and its a great way to become im-mersed in the discipline of project management.
VOICES ON PROJECT MANAGEMENT BLOGIn Making Earned Value More Valuable, blogger Kevin Korterud says: If a project
manager does not measure and then present earned value metrics properly to
project sponsors, the numbers can produce unpleasant mood swings, premature
celebrations and raging arguments.
Luis Berrios, PMP, adds: More and more, our project management office is being
challenged with earned value. In many cases, the expectation is that we provide
information on progress down to the US$0.00001, which can be overwhelming.
BE HEARD
Want to shareyour thoughts
on project management?Look for discussion topicsposted on PMIs Career Cen-tral LinkedIn Group by edi-tors of PMI publications. Yourresponse could be publishedin a PMI publication.
FACEBOOK
Word Play
PMI asked project practitioners: What word describes your
project management style? The most popular answers were:
Communicative25
Collaborative11
Leadership8
Facilitative5
Agile4
Proactive3
Disciplined 3
Flexible3
Integrative2
Persistent2
Progressive2
Structured2
Effective2
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8/13/2019 Data Dont Lie
10/76
RESIDENCE INNBY MARRIOTT
TOWNEPLACE SUITESBY MARRIOTT
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8/13/2019 Data Dont Lie
11/76
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8/13/2019 Data Dont Lie
12/7610 PM NETWORK AUGUST 2013 WWW.PMI.ORG
50%of global mining investments
between 2012 and 2020 will bemade in Latin America.
US$300billion
Projected Latin American mininginvestment in 2020
25%of global mining investments in
2012 were made in Latin America.
t eEdWhen the Argentine government declinedits request for tax breaks, mining companyVale SA walked away from the RioColorado potash mine (pictured below).
PHOTOCOURTESYOFAGNCIAVALE
Sources: Inter-American Mining Society,Metals Economics
Group,BNamericas
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8/13/2019 Data Dont Lie
13/76 AUGUST 2013PM NETWORK 11
Navigatingthe MinefieldThe global hunger for metals and minerals has companies heading to
Latin America. But along with all the copper and gold, theyre also dis-
covering dissent among local stakeholders.
Discovery rates for most base and precious metals have fallen to
historic lows, says Christopher Welch, a mining analyst at natural-
resources brokerage Ocean Equities in London, England. Tis has
driven resource companies to explore in new countries.
Latin America offers areas that combine moderate-to-low geopoliti-
cal and operating risk with good infrastructure and fantastic geological
prospects, says Mr. Welch.
But local stakeholders are proving a formidable risk factor, stalling
several high-profile mining projects to harvest everything from copper
to potash, an in-demand potassium-based fertilizer.
After the budget on Vale SAs Rio Colorado potash project in Argen-
tina nearly doubled to US$11 billion, the Brazilian company requested
US$2 billion in tax breaks to offset unforeseen costs stemming from
Argentinas rising inflation and exchange rates.Te project includes a potash mine, 800 kilometers (500 miles) of new
and upgraded railway, and a loading termi-
nal. Yet even with 45 percent of the project
completed, Argentina refused to grant the
companys request. So in March, Vale shut the
project down. Te next month, the Argentine
government agreed to let Vale walk away, and
announced Chinese and Indian companies had
expressed interest in the project.
Such conflicts with local governments
are one of the biggest obstacles for miningprojects, says Mr. Welch. Nationalization or
expropriation remain threats in large parts of
the Latin American region as governments
look to increase their share of the profits that
come from mining their countrys natural
resources, he says. Its the main thing that
keeps investors awake at night.
Signing a Social License
Mining projects can be a substantial revenue source for communities,
but local stakeholders are increasingly pushing back.
ge
Nationalization
or expropriationremain threatsin large partsof the LatinAmericanregion.Christopher Welch, Ocean
Equities, London, England
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Social license to operate, meaning the firms negotiations
with local communities, is becoming more difficult in countries
throughout the region, says Risa Grais-argow, an analyst
specializing in Latin America at Eurasia Group in Washington,
D.C., USA.As countries become more developed, local communities
surrounding projects have become both more concerned about
their quality of living and the environment, and better able to
mount legal challenges to mining projects, she says. Tese con-
cerns are most evident in Chile.
In May, the Chilean government officially halted the Barrick
Gold Corp.s US$8 billion Pascua-Lama mine project, which had
been temporarily suspended since April. Critics of the Canadian
companys project contend construction dust has settled on
three nearby glaciers, causing them to retreat. Stakeholders also
charge the project threatens the Estrecho River, which supplieswater to a tribe downstream.
Because more than 70 percent of Pascua-Lamas reserves lie in
Chile, a governmental ban could kill the whole project.
But it might not come to that, according to Andy Kaplowitz, an
analyst at Barclays Capital. Given that Barrick has already spent
US$4.2 billion on the project ... and construction is 40 percent com-
plete, we think there is a strong incentive for the developer to press
forward with only minimal delays, he wrote in a research note.
Barrick is making an effort to engage, releasing an 18-month
plan to meet the Chilean governments requirements for infra-
structure to prevent water pollution. Construction will not be
allowed to continue without approval from Chilean regulators.
Barrick and other mining giants must convince stakeholders
theyre looking out for the communitys interestsor else.
Where stakeholders fears cannot be allayed, there is potential
for severe reaction to planned developments, says Mr. Welch.In other words, project owners can expect more of the sameso
they may want to pull in skeptical stakeholders right from the start.
Since opposition often comes from communities that are not
originally included in negotiations but feel affected by projects,
firms can avoid conflicts by going through an extensive consulta-
tion process and including communities farther afield from the
project who may also be affected, says Ms. Grais-argow.
When Perus government requested Newmont Mining Corp.
suspend its US$5 billion Minas Conga gold and copper mining
project in November 2011, the U.S. company complied and built
new reservoirs for water from lakes displaced by the project.It was enough to convince Perus government to allow the
project to resume operations in June 2012. But it wasnt enough to
placate local stakeholders. In June 2013, locals staged a protest at
one of the lakes scheduled to be displaced, prompting Newmont
to issue a statement pledging to complete an intensive public
involvement process with neighboring communities.
Effective stakeholder outreach can be the difference between
a mining company holding onto its social license and losing
it, says Mr. Welch. And the latter, he says, can mean the
end of a projectno matter how large or high-grade it may be.
Emma Haak
D
C
B
A
Becausemore than
70percentofPascua-Lamasreserves lie inChile, a govern-mental ban couldkill the wholeproject.
heEdge
The project: Vale SAs
US$11 billion potash mine,
Rio Colorado, Argentina
The holdup:When the
Argentine government re-
fused to grant the company
US$2 billion in tax breaks,
Vale called it quits.
The project: Newmont
Mining Corp.s US$5 billion
gold and copper mine,
Minas Conga, Peru
The holdup: Newmont
temporarily suspended the
project after protesters
alleged pollution of local
waters.
MINE MAP
The project: Barrick
Gold Corp.s US$8 billion
gold mine, Pascua-Lama,
Chile
The holdup:Responding to
concerns about water pollu-
tion, the Chilean govern-
ment halted the project.
The project: Southern
Copper Corp.s planned
US$1 billion copper mine,
Arequipa, Peru
The holdup: Local activists
concerned about pollution
brought mine construction
to a standstill.
A C
B D
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ANCHORING PROJECTS
TO STRATEGYIf every project is a ship, strategy is the lighthouse that guides it to harbor. But get-
ting projects to port means making sure theyre seaworthy from the start.
We need to prioritize projects and focus on the ones that really deliver value,
says Valrio Murta, head of Latin America and CaribbeanGeo South (Brazil, Argen-
tina, Peru, Chile and Uruguay) customer delivery, MasterCard, So Paulo, Brazil.
Nearly 90 percent of organizations ranked implementing projects that
deliver strategic results as essential or very
important in Why Good Strategies Fail: Lessons
for the C-Suite, a 2013 PMI-sponsored survey
of 587 senior executives by the Economist Intel-
ligence Unit (EIU). PMIsPulse of the Profession
survey echoed the sentiment, showing that high-
performing organizations employ project, program
and portfolio management practices strategically
to reduce the risk of wasting money. On average,
90 percent of projects run by high performers meet
original goals and business intent.
Yet the EIU study also found that only 46 percent
of organizations are excellent or good at suc-
cessfully executing initiatives and projects to deliver
strategic results.
Strong executive involvement can help organizationsbridge the gap between strategy and implementation.
Involve executives who understand, or at least recognize, the importance of
change the business competencies, and how those differ from run the business
activities, says Michael Cooch, PMP, director of global portfolio and program
management services, PwC Consulting, a PMI Global Executive Council member in
London, England.
To keep projects and programs in line, organizations should take a three-
pronged approach:
1. Follow the Captains Orders
Every ship needs its captain: Executives cite leadership buy-in and sup-port as the top reason strategic initiatives succeed, according to the
EIU survey. Yet 28 percent admit that high-priority strategic initiatives
typically lack sponsorship support from senior leadership.
You need sponsors, says Orlando A. Serani S., vice president,
global business services, customer and logistics services, Johnson &
Johnson Health Care Systems Inc., Piscataway, New Jersey, USA. But
you have to be careful. Sometimes, we have a tendency to over-involve
executives, thinking their presence alone is going to add value.
Instead, Mr. Serani suggests putting the focus on meaningful
executive involvementbringing them in with a deliberate purpose
and role. Senior managers remind you what business objectives youre
Sometimes
we have atendency toover-involve
executives,thinking their
presence aloneis going to add
value.Orlando A. Serani
S., Johnson & Johnson
Health Care Systems Inc.,
Piscataway, New Jersey, USA
SMOG CASTSSHADOW OVERRAILYARD PROJECT
Its touted as the greenest railyard in the country,
but the US$500 million project is being blasted for
making the notoriously polluted air of Los Angeles,
California, USA even worse.
Supporters claim the upgrade is needed for the
ports of Long Beach and Los Angelestogether
the worlds sixth-busiest harborto remain com-
petitive when the expanded Panama Canal debuts
in 2015.
Designed to streamline transfers between
port and rail, the yard would handle up to 2.8 million
shipping containers a year by 2035, with some 5,500
trucks passing through each day. The complex is
slated to create thousands of jobs and has backing
from a wide range of business and civic organizations.
Project sponsor Burlington Northern Santa Fe
Railway is selling the ports sustainable elements,
maintaining the complex will reduce emissions by
cutting the distance trucks travel from port to rail
by 20 miles (32 kilometers). Trucks and equipment
will face strict emissions standards, and many will
run on liquefied natural gas.
But neighbors say port-induced pollution hascaused asthma and lung cancer. And theyre mak-
ing themselves heard at community meetings and
through environmental organizations, including the
Natural Resources Defense Council, which is threat-
ening to sue. Despite the detractors, the 153-acre
(61.9-hectare) facility was approved by the local
city council in May. Margaret Poe
IMAGECOURTESYOFPORTOFLOSANGELES
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trying to achieve, he says. Tey ask, Why are we
doing this? Constantly having that voice brought
back into projects is one of the healthiest things
you can do.
2. Run a Tight Ship
Executives alone cant guarantee alignment. o
ensure implementation stays in sync with strategy,
organizational processes have to be shipshape.
Value stream mapping and other standardized
methodologies make tactical workflows and com-
munications more efficient. And that can allow
resources to focus on strategic thinking and big-
picture planning.
o the degree that it commoditizes the
mechanics of running a project, standardization
creates bandwidth to have more meaningful con-
versations, Mr. Serani says.
Yet the EIU study found that only 41 percent of
organizations cite developing detailed processes for
strategy implementation as a very high or some-
what high priority.
o implement more standardized processes in
an organization, Mr. Serani recommends focusing
on value, particularly how it frees up resources to
those areas of the business that need differentiation
to be competitive.
3. Batten Down the Hatches
While the captain sets the course and the light-
house guides the way, a solid crew is needed to
steer the ship to port.
As previously noted, leadership buy-in and sup-
port is the top reason strategic initiatives succeed.
Senior executives cited skilled implementation as
the second-highest factor. Yet only 41 percent of
organizations reported having sufficiently skilled
personnel working on those initiatives.
And alignment requires more than just figuringout who has agile skills or who knows metrics.
You have to consider what the project requires
in terms of business and technical knowledge, but
also in terms of the project managers personal
characteristics, says Mr. Murta. Each project may
demand a different type of person.
o pair the right people with the right project,
Mr. Cooch recommends a standardized talent
development program. Because even if the talent is
there, it still needs to be harnessed to reach its full
potential.
heEdge
TAKE THE HELM
Source: Why Good Strategies Fail: Lessons for the C-Suite, 2013, The Economist Intelligence Unit Ltd.
9in 10
1 in4
organizations say successfully executingprojects to deliver strategic results is
essential or very important.
executivessay projects
to implementstrategy lack
senior backing.
46%of organizations are
excellent or good atexecuting strategically
aligned projects. 2 5inorganizationsreport having
sufficientlyskilled personnel
working onstrategic
initiatives.
Organizations need to understand their current talent pool, iden-
tify the gaps and then understand how they need to develop internal
candidates, use external partiesor both.
In short, strategically aligned projects keep organizations afloat.
Matt Alderton
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Stalled Projects ErodePublic TrustGermanys reputation for efficiency is being threatened by large-scale projects that demonstrate
a clear lack of it.
In the past year, three major public schemes have gained worldwide notoriety for poor manage-
ment, disastrous cost overruns and missed deadlines.
A Bumpy Ride
Te most high-profile of the three, the Berlin Brandenburg Willy Brandt Airport, was initially
heralded as a world-class global travel hub that would replace three smaller airports. Instead, its
become a symbol of inept project management.
When construction began in 2005, the airport was scheduled to open five years later. But
technical problems involving the wiring system, fire alarms and lighting caused it to miss that dead-
lineand several others. Meanwhile, costs more than doubled from 1.7 billion in the original plan
to 4.3 billion in 2012 due to scope creep that involved the addition of a shopping mall and hotel.
And theres no end in sight, as officials have refused to set a new opening date.
Its unfortunate, says Cathy Buyck, a Brussels, Belgium-based aviation industry expert and
senior editor ofAviation Weekmagazine. Tis is an important public project for Germany and the
largest airport project in Europe.
A lack of transparency on project progress has only added to its woes, Ms. Buyck says. Unaware
that key deadlines would be missed until weeks before the publicized opening in June 2012, airlines
were forced to reorganize flight schedules and individually notify passengers of airport changes on
their itineraries.
We have to work around the change of plan, which presents us with a huge challenge, former
Air Berlin CEO Hartmut Mehdorn said about the delay. It presents immense logistical problems
for all involved and will also cause additional costs which have yet to be calculated.
Better stakeholder management could have eased such conflicts, Ms. Buyck says. ransparencyand permanent cooperation is so important on these projects. When there is no trust, there can be
no cooperation.
Trouble on the Tracks
A high-speed rail project might be going off the rails. In
southern Germany, opponents have committed to blocking
the Stuttgart 21 rail-line project by hosting massive protests
that have drawn thousands of people. Te protesters believe
the plan is overpriced, diverts funds from other infrastruc-
ture initiatives and will cause too much environmental
damage, all while failing to solve the regions traffic issues.Project owners have done little to win the support of
these citizen stakeholders. In 2010, they even tried to disperse
protesters by firing water cannons at them. Small surprise:
Tat just made people angrier.
When there is no trust, therecan be no cooperation.
Cathy Buyck,Aviation Week, Brussels, Belgium
The target completion date for the Stuttgart21 rail project has been pushed back three
years, partly due to public protests.
Contract negotiationshave more thandoubled the cost ofthe Elbphilharmonieconcert hall in
Hamburg, Germany.
IMAGECOURTESY
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Meanwhile, building contracts have cost more than
expected, ballooning the project budget from 2.6 billion to
an estimated 6.8 billion. And the target completion date has
been pushed to 2022, three years later than originally planned.
Project owners can learn from the projects troubles,
said Britta Baumgarten, PhD, a research fellow at Lisbon
University Institute who has studied the publics reaction
to Stuttgart 21.
One lesson to be learned from S21 is the importance of
investing more resources to involve citizens in the decision-
making process and to discuss multiple alternative solutions,
she said in an interview with the Partnership with Africa Foundation e.V.
Out of Tune
A modern glass edifice would rise from Hamburgs waterfront, and the Elbphilharmonie con-
cert hall would become the worlds preeminent orchestra hall. Just as soon as it opened in 2010.
Fast forward to 2013, and its doors remain shut, largely due to inadequate planning. Te
government approved the original 204 million budget based on incomplete design plans.
Since then, scope creep and contract renegotiations have increased the cost to 575 million
with a new deadline of October 2016.
One of the primary conflicts has revolved around the Elbphilharmonies steel saddle
roof, which needs to support 4,000 tons. Construction company Hochtief argued the plans
it received from the architectural firm were unsafe, even though the design was certified by
both an independent safety engineer and the Hamburg building control authority.
Hochtief certainly has problems building the roof and therefore tried to place the responsi-
bility for the delay on the City of Hamburg, Karl Olaf Petters, an Elbphilharmonie spokesman
toldArch Dailyin late 2011, after construction ground to a halt while the parties worked to
resolve the dispute.In April 2013, the teams reached an agreement to place the burden of all future construc-
tion and planning risks firmly on Hochtiefs shouldersin exchange for a steep one-time
increase in costs.
Te new contract, which was approved by the Hamburg parliament in June, will
allow construction to move forward.
Political Intrigue
Public stakeholders on these types of projectsin Germany and elsewhereconsis-
tently and purposely underestimate costs early on to push the plans through, says
imo Klein, senior economist for IHS Global Insight in Frankfurt, Germany. Politi-
cians want to appear cost-conscious so they can win approval, he says.It becomes more important than assessing whether the cost and timetables are realistic.
And if problems arise later on, it is likely their successors who will have to deal with it.
But such manipulation ultimately impedes the project plan, and costs end up
higher than they might have been with proper planningand expert advice. For
instance, on the airport project, Mr. Klein notes, Berlin authorities tried to cut costs
by coordinating all of the contractors themselves, rather than hiring a project man-
agement team to oversee the work. Tey made a big mess of things by not having
sufficient expertise to make decisions.
As a result, a lot of work was done two or three times to correct mistakes that
had repercussions down the line, he says. It is always cheaper to take the time and
resources up front for planning than to fix things later on. Sarah Fister Gale
heEdge
COLOMBIATARGETSTECH
Colombia is staking its claim as an
IT project hotspot with a burst of
investment in web connectivity,
tech start-ups and training.
The country is looking to dou-
ble IT revenue between 2010 and
2014, according to BNamericas.
And to make money, its spending
money: The Colombian Ministry
of Information and Communica-
tions Technologies plans to invest
US$51.9 million on 32 local tech
projects this year.
But cash alone wont anoint
Colombia the new tech royalty.
The country also needs trained
project professionals, so its
launching education programs,
including one on agile. Another
government program is teaching
more than 21,000 Colombians
to code.
The governments cashinfusion for tech training and
infrastructure has reaped
rewards: Colombias IT market
is expected to hit COP6 trillion
in 2013, a 10.5 percent jump
over 2012, according to Business
Monitor International. Colombia
also increased its Internet con-
nections from 2.2 million to 6.2
million in the last two and a half
years, according to the WorldEconomic Forum.
The goal, according to
Colombia IT minister Diego Mo-
lano Vega, is for the country to
become internationally recog-
nized as the place where [digital]
applications for the developing
world are being developed,
he told The Atlanticearlier this
year. Thats where the money
is. Margaret Poe
Stuttgart 21sbudget hasballoonedfrom
2.6 billionto anestimated6.8 billion.
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TALENT NOSHOWThe BRIC project powerhouse of Brazil, Russia, India and China remains
strong, accounting for more than a quarter of global output last year. But the
four countries have one big Achilles heel: talent.
More than half of organizations in Brazil, Russia and India, and three of
four in China, say they currently have positions for which they cant find
qualified candidates, according to a 2013 CareerBuilder survey. And the report
says this dearth of talent hurts business performance, work quality, morale
and employee retention.
In what remains a fragile economy, theres certainly no shortage of people
looking for a job. Still, its not enough just to fill the empty seats. o be successful,
organizations need people with the right skills.
In the past, project owners could make up for poor quality labor by adding
more people, but that method no longer works, says Jeffrey A. Joerres, CEO
of multinational human resources consulting firm ManpowerGroup, Milwau-
kee, Wisconsin, USA.
As these four countries hit their stride, they need talent with the skills to
handle megaprojects laden with risk and complexity. A snapshot of some of
the current projects says it all:
nChina: Fueled by a booming population, China is making serious invest-
ments in infrastructure and energy. Te Shuangjiangkou hydropower project
on the Dadu River, for example, is a 10-year, CNY24.7 billion initiative to
construct the countrys tallest hydroelectric dam.
nIndia:Research company Gartner predicts Indias I services market will
reach US$10.2 billion this year, fueled by major initiatives such as the high-
profile unique identification program that aims to digitally document all citi-zens. Te country is also planning one of its most ambitious infrastructure
projects to date: A US$100 billion industrial corridor that would cover 555
square kilometers (214 square miles) between
New Delhi and Mumbai. Te project aims to
significantly reduce travel time between the two
cities, facilitating faster exports by 2025.
nRussia:o offset its economys heavy reli-
ance on natural resource exports, the coun-
try launched a project to build Skolkovo, a
400-hectare (988-acre) science-based city aimed
at ushering in a new era of tech-driven innova-
tion. In June, the country also unveiled a US$14
billion infrastructure program, including a high-
way and two ambitious rail upgrades.
nBrazil:Along with massive oil exploration
projects and a booming I sector, the country
is currently working on dozens of stadium and
infrastructure projects for the upcoming World
Cup and Olympics.
Brazils surge in projects as it preps to host
the two mega sporting events makes it particu-
larly difficult to find skilled project and program
managers, says Alex Julian, PMP, senior program
manager at Citibank, a Global Executive Council
member in So Paulo, Brazil.
More than two in three Brazilian leaders
reported trouble filling key positions, with engi-neers ranking among the most difficult slots to
fill, according to a 2013 ManpowerGroup survey.
Nearly 80 percent of Brazilian respondents said
the talent shortage had a high or medium impact
on their ability to meet client needs.
Companies are searching for senior project
and program managers to drive the higher priority
programs, Mr. Julian says, but there is a lack of
skilled professionals to fill these roles.
Practitioners with strong leadership, commu-
nication and conflict management skills are espe-cially hard to secure, he says.
People Plan
o minimize the damage from skills shortages
in BRIC countries, project planners should first
define their talent strategy and the related risks.
Its not enough to build a 10 percent premium
into your talent budget, Mr. Joerres says. You
have to be able to say why its 10 percent and what
happens if you cross that financial threshold. He
envisions two options:
Skolkovo, a tech city being builtoutside of Moscow, Russia, aims to
usher in a new age of innovation.
PHOTOB
YEDREEVECOURTESYOFADJAYEASSOCIATES
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heEdge
1. If a project demands highly skilled, difficult-to-source talent, team leaders should focus on offering
higher salaries, career paths toward leadership roles and training opportunities for key roles.
2. If an organization is ready and willing to accept high turnover as a talent strategy, project own-
ers should implement knowledge-sharing mechanisms to ensure information doesnt walk out
with the employee.
Both talent management approaches are viable, as long as you have a plan in place to support
them, Mr. Joerres says.
Organizations should also consider candidates who may not have all the necessary skills, but could
be developed with the proper training and mentoring. Figure out what gaps you can tolerate, he says,
then find good people who you can get up to speed.
o recruit and retain good project talent once a solid hire is made, Mr. Julian suggests organiza-
tions based in BRIC countries look beyond cold, hard cash.
Making a job look appealing isnt only about money, Mr. Julian says. It is about what the job can
offer in terms of challenging the program or project manager. When interviewing candidates, he rec-
ommends emphasizing the experience and opportunities the project or program will provide.
Whatever techniques they opt for, organizations must focus on getting the right people on the
right projects to maintain the BRIC economic juggernaut.
alent management is just as important as supply chain planning or engineering to the project
plan, but it often doesnt get as much attention, Mr. Joerres says.
Yet the rewardsand risksare real.
Tose who pay attention to talent management will gain a competitive advantage, he adds. For
those who dont, buyer beware. Sarah Fister Gale
Talentmanagement is
just as importantas supply chain
planning orengineering to the
project plan, butit often doesnt
get as muchattention.
Jeffrey A. Joerres, ManpowerGroup,
Milwaukee, Wisconsin, USA
COLLABORATION+COMMITMENT=
FLAWLESS CONSULTING
Flawless ConsultingTMfor Project Managersfrom Peter BlocksDesigned Learning helps participants develop greater collaboration among
team members, maintain commitment during the life of a project andactually have solutions implemented. This new adaptation of our powerfulFlawless Consulting Workshop allows Project Managers to apply theseproven techniques to their own unique situation.
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8/13/2019 Data Dont Lie
21/76 AUGUST 2013PM NETWORK 19
EXPANDING GASESIn the 1970s, scientists predicted an approaching drop in the supply of natural gasandan abrupt halt to natural gas projects. But the gas was there, waiting for technology thatcould find it. That technology has finally arrived.
Around the world, proven natural gas reserves have expanded rapidly:
The discovery of these vast resources has led to a boom in high-budget natural gas projects:
And the timelines for extraction projects keep
getting shorter:
Thats a big reason natural gas prices are
fallingshooting demand through the roof.
US$7.3 billionThe budget for a state-run liquefied natural gas (LNG)project in Vladivostok, Russia, expected to start operationsin 2018
US$10 billionThe budget for an LNG plant project in Hackberry, Loui-siana, USA, run by Sempra Energy, GDF Suez, Mitsubishiand Mitsui and scheduled to launch next year
Sources:Bloomberg;The Economist;The Guardian;New Technology for Old Fuels,Manhattan Institute, April 2013;Risk Management on Gas-Related Construction Projects,Navigant
Consulting, November 2012;U.S. Energy Information Administration;U.S. Department of Transportation;The Wall Street Journal
The price of naturalgas per million
British thermal unit
But the rewards still come with risks.
The most significant risks faced on suchprojects are extended delays to projectcompletion and runaway cost overruns.
Risk Management on Gas-Related ConstructionProjects , Navigant Consulting, November 2012
The average time neededto drill on a shale gas wellproject in Oklahoma, USA
2008 2013
Africa: Up 23%to 515 billion cubic feet(14.6 billion cubic meters)between 2003-2013
Middle East: Up 43%to 2,823 trillion cubic feet(80 trillion cubic meters)between 2003-2013
United States: Up 63%to 304.6 trillion cubic feet(8.6 trillion cubic meters)between 2003-2011
18monthsLength of a 2011-2012U.K. ban on hydraulic
fracturing following two drilling-induced earthquakes
93.6millionThe estimatedamount drilling
platform-operator Total lost due to
a 52-day gas leak in the North Sea
DAYS2007 2012
THE LATESTSTATISTICS, SURVEYSAND STUDIES
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22/7620 PM NETWORK AUGUST 2013 WWW.PMI.ORG
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Track
When global video game developer Electronic Arts (EA)releasedReal Racing 3in February,
it became the most-downloaded free app on Apples iOS platform in 90 countries. In just one
week, the smartphone- and tablet-optimized simulation game surpassed the total number of
downloads of the first two iterations combined.
Producing this type of blockbuster hit requires understanding how the mobile gaming
industryand the project parameters for game developersare changing, says Kynan
Woodman, development director and project manager at EA. As many titles transition
from a pay-to-play model to a free-to-play paradigm, project managers are also updating
the way they prepare a title for launch.
Tese free-to-play games, which offer in-game purchases, encourage new user growth,
but also require ongoing updates to keep users coming back for more. Understanding the
business strategy behind this shift allows project managers to deliver the most valuable
end project, says Mr. Woodman. And it helps them plan for the fact that the work no
longer ends after the games release.
Avoiding PotholesWhats the biggest challenge of managing game development projects?
Identifying what makes people play a game and making those elements a priority. Tere
are thousands of apps that arent getting played, and we dont want to be one of them. It
sounds obvious, but this is one of the hardest things to do.When youre trying to create a game that people cant resist downloading, you can
end up with an extravagant list of features. o make sure we dont push the schedule too
hard, we constantly review the features list and evaluate how long each will take to finish.
Tis means we arent able to deliver every great feature, but we deliver the most impor-
tant onesand it shows when we look at game reviews.
Free RidesHow has the transition from pay-to-play to free-to-play changed the project man-
agement process and overall business strategy?
Now thatReal Racingis free-to-play, it changes which customersand featuresyou focus on. With
a paid game, youre trying to entice new customers. With a free game, you have to build in new fea-tures for existing customers.
With pay-to-play models, we used to spend a lot of time creating features that would generate
marketing opportunities because our revenue came from new users. Te shift to free-to-play has
allowed us to be more structured with our update plan, rather than trying to catch a marketing wave.
Finish Line in SightWhat helps keep projects on target when requirements are constantly evolving?
Its one of my toughest battles. Something that has been working for us is to separate parts of the
schedule that are knowable, like creating a car or a track, from others that carry more risk, such as
new game modes. Tis ensures you have a mix of safe and riskier objectives, and it keeps the overall
risk in a safe place. PM
The Game Plan
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8/13/2019 Data Dont Lie
23/76 AUGUST 2013 PM NETWORK 21
Small Talk
Are you left- or right-brained?
I have to make more of an effort to turn proje