New Project Leadership Model : Managing Business Complexity K. HASS BAF2014 GENEVE et PARIS

THE NEW PROJECT LEADERSHIP MODEL THE PROMISE OF THE PM/BA PARTNERSHIP

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Kitty Hass, PMP Principal Consultant, Kathleen Hass & Associates, Inc. BUSINESS ANALYSIS AND PROJECT MANAGEMENT

Cell: 303.663.8655 Email: [email protected]

mailto:[email protected]

2

Kitty is the leading expert in

Strategic Business Analysis

and

Complex Project Management

She has written nine books, dozens of

influential articles, and given lectures at

corporations throughout the world. She

is a professor of Strategic PM and BA

Practices at Villanova University and a

keynote speaker at conferences around

the world.

Kitty is a Director on the IIBA Board, and

is on the BA advisory boards for Capella

University and the University of

California, Irvine.

Her ground breaking work in Project

Complexity has earned her recognition

as a recipient of the PMI’s David I.

Cleland Literature Award

The Challenge The Complex Project

Management Model

The New Leadership Model

©KHass and Associates, Inc. 3

Infrastructure

The 21st Century Challenge The Integrated Economy

Project Success still Elusive

Business Value Creation

Convergence of digital, social

and mobile spheres

Information Explosion

Innovate or Evaporate

Complexity

4

Tom Friedman, That Used to be Us Meet the Press, Sept. 4, 2011

What Does All This Mean For BAs?

5 ©KHass and Associates, Inc.

Tom Friedman, That Used to be Us Meet the Press, Sept. 4, 2011

• Traditional project jobs are changing

– BA focus: strategy, innovation, value vs. requirements management

– PM focus: complexity management vs. project management

• Companies can’t find the employees they need – critical thinkers with the ability to:

– Adapt, invent, and re-invent

– Collaborate, create, and innovate

– Leverage complexity to compete

Lead Through Connections

• Collective intelligence – Access untapped knowledge of your

• Enable growth through global teams – Instill – Align with national agendas

• Promote organizational creativity and

• Welcome the tension between – Creative disruption and – Operational efficiency


“We do not have the creative

talent needed to innovate”

Complexity

is our biggest

challenge

Creativity is the most

important

leadership quality

“We doubt our

ability to

manage

complexity”


Everyone is Creative Edward de Bono, Ph.D.

http://www.ibm.com/us/en/

Achieving Innovation

Problem / opportunity analysis

Business architecture

Experimentation

Solution assessment

Feasibility analysis

Business case analysis

Benefits management

Capitalizing on complexity

Enterprise Business Analysis

Planning

Execution

Controlling

Risk management

Conflict resolution

Issue management

Team management

Managing complexity

Complex Project

Management

Implementing the

Innovation Arriving at the Creative Decision


The Troubling Project Performance

39% of projects delivered on time, on budget, with Required functions

CHAOS Report 2013 Standish Group

Gaps in Enterprise BA and Complex PM

USD 500 billion/month globally

“If we could solve the problem of IT failure, the US could increase GDP by USD 1 trillion/yr.“ Roger Sessions, The IT Complexity Crisis: Danger and Opportunity

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80% of Projects on Time, Scope,

Budget

Innovative Solutions

Value to the Customer

Wealth to the Organization

We Need to Manage Complexity to Improve Project Performance

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1. Diagnose Project

Complexity

2. Assign Competent

Leaders

3. Select the Project

Approach

4. Manage Complexity Dimensions


Diagnose Project

Complexity


Complex Project Management Dimensions

Long-duration projects

Large, dispersed project teams

Fixed deadlines and inflexible demands

Ambiguous problems, opportunities, solutions

Volatile requirements

High visibility, strategic, multiple stakeholders

Large-scale organizational change

Risks, dependencies, external constraints

IT complexity

© K. Hass and Associates, Inc. Confidential 13

The Project Complexity Model

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Complexity

Dimensions Project Profile

Independent - Low

Complexity Project

Moderately Complex

Project Highly Complex Project

Highly Complex

Program

“Megaproject”

1. Size/Time/Cost Size: 3–4 team members Time: < 3 months Cost: < $250K

Size: 5–10 team members Time: 3–6 months Cost: $250–$1M

Size: > 10 team members Time: 6 – 12 months Cost: > $1M

Size: Multiple diverse teams

Time: Multi-year Cost: Multiple Millions

1. Team Composition and Past Performance

PM: competent, experienced

Team: internal; worked together in past

Methodology: defined, proven

PM: competent, inexperienced

Team: internal and external, worked together in past

Methodology: defined, unproven

Contracts: straightforward

Contractor Past Performance: good

PM: competent; poor/no experience with complex projects

Team: internal and external, have not worked together in past

Methodology: somewhat defined, diverse

Contracts: complex Contractor Past

Performance: unknown

PM: competent, poor/no experience with megaprojects

Team: complex structure of varying competencies and performance records (e.g., contractor, virtual, culturally diverse, outsourced teams)

Methodology: undefined, diverse Contracts: highly complex

Contractor Past Performance: poor

1. Urgency and Flexibility of Cost, Time, and Scope

Scope: minimized Milestones: small Schedule/Budget:

flexible

Scope: achievable Milestones: achievable Schedule/Budget:

minor variations

Scope: over-ambitious Milestones: over-

ambitious, firm Schedule/Budget:

inflexible

Scope: aggressive Milestones: aggressive,

urgent Schedule/Budget:

aggressive

©KHass and Associates, Inc.

http://syvea.com/_borders/Red Push Pin Logo.jpg

0

1

2

3

4Size/Time/Cost

Team Composition

and Past Performance

Urgency and

Flexibility of Cost, time, and Scope

Clarity of Problem,

Opportunity, Solution

Requirements Volatility and Risk

Strategic

Importance, Political

Implications, Stakeholders

Level of Change

Risks,

Dependencies, and External Constraints

Level of IT Complexity

Project #3 - Product Innovation

Highly Complex Project


The new Leadership Model

Assign Competent Leaders


Collaborative Leadership

Expertise

Vision Innovation


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Exploit the Synergies of Shared Leadership

PM

BA Developer

PM

BA

Business

Visionary

Lead Technologist

QA/Test Manager

Traditional

Shared

Exploit the Synergies of PM/BA Collaboration

Business Analyst

• Identify business needs

• Determine solutions

• Discover, define, and document requirements

Project Manager

• Deliver on scope, time, and cost

• Define and improve project performance

accountable for business benefits

accountable for project objectives


Differing Perspectives

The Business Analyst View of the Project

The Project Manager View of the Project

Requirements

Initiate

Design

Plan

Construct Test Deliver

Execute Monitor and Control

O & M

Close

Adapted from: Harness the Power of the PM/BA Partnership Webinar 07/29/2008, Management Concepts


Differing Views of Scope

Business Analyst

• Solution scope – Business case

– Business requirements

Project Manager

• Project scope – Project charter

– Scope statement

Source: Harness the Power of the PM/BA Partnership Webinar 07/29/2008, Management Concepts


Incomplete Views of Requirements Scope


SOURCE: PARTNERING FOR PROJECT SUCCESS: PROJECT MANAGER AND BUSINESS ANALYST COLLABORATION, CO-AUTHORED BY PMI AND IIBA

Business

Stakeholder

Solution

Transition

Overlapping Responsibilities

Scope Management

Communications and Stakeholder

Management

Risk Management

Requirements

Management


Business Domain

Business Owner

Project Domain

Project Sponsor

Project Manager

Business Analyst

SOURCE: PARTNERING FOR PROJECT SUCCESS: PROJECT MANAGER AND BUSINESS ANALYST COLLABORATION, CO-AUTHORED BY PMI AND IIBA


Business/Technology Optimized

Enterprise Level

BA Awareness

Project Level

Innovation Level

1

2

3

4

•BA Practices Informal

•BA Community of Practice Exists

•Increasing awareness of the value of BA

Moderately Complex Projects

Project Change

BABOK® Standards: • BA

Planning/Monitoring • Elicitation • Requirements

Mgt./Communication • Requirements

Analysis

Career Path to Sr. PM/ BA

IT/Business BAs

Highly Complex Programs

Business Architecture

Organizational Change

Value Management

Enterprise Analysis Solution Assessment & Validation

Strategy Execution

Complexity Management

Path to VP of PM/ BA

Architects and Consultants Enterprise Analysts

Breakthrough Innovation

Opportunities converted into Innovative Business

Solutions

Strategy translated into Breakthrough Practices

Cultural Change.

Visioning & Strategic Planning Innovation & R&D

Path to Strategic PM/BA

Business/Technology Experts Innovation Experts Change Experts

Business Needs Met / Strategy Executed

Value-Based BA Practices Traditional BA Practices

Business Requirements

Managed BA Awareness

Capability Gap

Close the Gap between Complexity and Capabilities

0

1

2

3

4

1 2 3 4 5 6

Typ

ical C

om

ple

xit

y R

ati

ng

Overall BA Practice Maturity

1.68

Ins FS IS/IT NP HC Trans1.66 1.66 1.64 1.69 1.62 1.81 BA Practice Maturity

Greatest % of Challenged Projects:

Greater Than 30% Over BSS

30% Over BSS

20% Over BSS

10% Over BSS

On Track



Use Complexity Thinking to Assign Project Leaders

Low Complexity

Projects

Moderately Complex Projects

Highly Complex

Programs

New Business

Strategy and Innovation

Highly Complex

Projects and Programs

PMs and BAs

Senior PMs and BAs

Complex Project Managers and Enterprise Business Analysts

Strategic Business Consultants

PMs increase their probability of having a successful project by 400% with an elite BA

BA Benchmark Study, 2008

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Build a Great Team

• Passionate

• Small but mighty

• Core full-time leaders

• Highly trained

• Highly practiced


• Multi-skilled

• Experienced

• Personally accountable

• Expertly coached

• Diverse

Select Adaptive Approach



Low Complexity

• Independent

• Predictable

• Routine

Moderately Complex

• Probability

• Messy

• Integration

Highly Complex

• Uncertainty

• Disorder

• Novel

• Intricate

Linear Iterative

Adaptive Extreme

Low Complexity

Projects

Linear Approaches:

The Waterfall Model

The RAD Model


When do Linear Methods Work?

• Maintenance, enhancement, continuous improvement

• Well-understood projects when:

– Business problem, opportunity, solution clear

– Requirements well understood

– No major changes expected

– We have successfully done this before


http://www.making-prsp-inclusive.org/typo3temp/pics/5d-3_WB-circle_dd3151a62a.jpg

Challenges with Linear Models

• We just aren’t that good at: – Requirements

– Change Management

– Estimating


Complex Projects

Iterative Approaches:

The Incremental Model

The Adaptive Model

The Agile Model

“…the nations and people who master the new

sciences of complexity will become the economic,

cultural, and political superpowers of the next century.” Heinz Pagels, Physicist



Linear Adaptive

Structured, orderly, disciplined Spontaneous, disorganized

Relies heavily on plans Evolves, changes

Predictable, defined, repeatable Surprising, ambiguous, unique

Unwavering stable environment Volatile, unstable environment

Proven technologies Unproven technologies

Realistic schedule Aggressive schedule, urgent

21st century projects are chaotic, unpredictable

Methods that work on small projects break down

Combine the elements of classic PM, agile, lean

Traditional Approaches are not Enough

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Adapting for Survival

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Equilibrium Chaos

• Complex systems fluctuate between states of • Equilibrium (paralysis, death) • Chaos (unable to function)

• Edge of Chaos most creative, productive state • Essential to survival • Breeds creativity

Peter Fryer, A Brief Description of Complex Adaptive Systems and Complexity Theory http://www.trojanmice.com/articles/complexadaptivesystems.htm

Why do Adaptive Methods Work?

• Iteration is the best defense against complexity

• Decompose large batches of the work into a series of small, time-boxed iterations

• Smaller batches accelerate feedback

• Produce huge benefits

– Easier mid-course correction

– Higher quality

– Greater release frequency

– Better IT/Business alignment

Source: Agile Software Requirements: Lean Requirements Practices for Teams, Programs, and the Enterprise, By Dean Leffingwell

50% faster to market

25% more productive

¼ of expected defects


http://www.informit.com/authors/bio.aspx?a=8af57023-5a3e-4f27-af2e-27cdf014448c

Challenges Using Iterative Approaches

• Reduce or eliminate interdependencies – To reduce complexity

– Feature-driven requirements

• Prototype - visualize – For understanding

– To reduce risk

– To prove a concept

• Use integrated tools – For traceability

– For integration

• Evolve the solution – Continuously validate, evolve, and improve requirements and the

solution throughout the project

– Freeze design at the last responsible moment

Core

#1 #2

#3

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Complex Models Still Emerging


Source: Center for Strategic International Studies, Organizing for a Complex World, Developing Tomorrow’s

Defense and Net-Centric Systems, 2009 39

Combining elements of existing practices ◦ Iterative learning ◦ Adapting and evolving ◦ Experimenting ◦ Delayed decision-making

Experimenting with contemporary practices ◦ Late design freeze ◦ Built-in redundancy ◦ Lots of experimentation ◦ Prototypes for

multiple parallel solutions

Challenges with Complex Models

• Knowing how long to keep your options open

• Building options into the approach without undue cost

• Bringing the right group of experts to discover, experiment, create, innovate


Questions • What is the value of business analysis?

– Small project/adaptive model • 50% faster to market • 25% more productive • ¼ defects

– Business benefits realized/reported by BA • Value to customers • Wealth to bottom line

• What to do when solution is selected before analysis begins? Re-do and validate: – Business case – Solution alternative analysis

• What about PMI? – PMI’s focus exclusively at project level on requirements – IIBA’s focus much broader, more strategic, value-based

embracing all disciplines that support business change


Principal Consultant

[email protected]

303.663.8655

IIBA Board of Directors

[email protected]



©2009 by Kathleen Hass and Associates, Inc. adapted from Managing Complex Projects: A New Model by Kathleen B. Hass

PROJECT COMPLEXITY MODEL 2.0

Complexity Dimensions

Project Profile

Independent Project Moderately Complex Project Highly Complex Project Highly Complex Program

“Megaproject”

1. Size/Time/Cost Size: 3–4 team members Time: < 3 months Cost: < $250K in labor costs

Size: 5–10 team members Time: 3–6 months Cost: $250–$1M in labor costs

Size: > 10 team members Time: 6 – 12 months Cost: $1M-$10M in labor costs

Size: Multiple diverse teams Time: Multi-year Cost: > $10M in labor costs

2. Team Composition and Past Performance

PM: competent, experienced

Team: internal; worked together in past

Methodology: defined, proven

PM: competent, inexperienced

Team: internal and external, worked together in past

Methodology: defined, unproven

Contracts: straightforward

Contractor Past Performance: good

PM: competent; poor/no experience with complex projects

Team: internal and external, have not worked together in past

Methodology: somewhat defined, diverse

Contracts: complex

Contractor Past Performance: unknown

PM: competent, poor/no experience with megaprojects

Team: complex structure of varying competencies and performance records (e.g., contractor, virtual, culturally diverse, outsourced teams)

Methodology: undefined, diverse Contracts: highly complex

Contractor Past Performance: poor

3. Urgency and Flexibility of Cost, Time, and Scope

Scope: minimized

Milestones: small

Schedule/Budget: flexible

Scope: achievable

Milestones: achievable

Schedule/Budget: minor variations

Scope: over-ambitious

Milestones: over-ambitious, firm

Schedule/Budget: inflexible

Scope: aggressive

Milestones: aggressive, urgent

Schedule/Budget: aggressive

4. Clarity of Problem, Opportunity, Solution

Objectives: defined and clear

Opportunity/Solution: easily understood

Objectives: defined, unclear

Opportunity/Solution: partially understood

Objectives: defined, ambiguous

Opportunity/Solution: ambiguous

Objectives: undefined, uncertain

Opportunity/Solution: undefined, groundbreaking, unprecedented

5. Requirements Volatility and Risk

Customer Support: strong

Requirements: understood, straightforward, stable

Functionality: straightforward

Customer Support: adequate

Requirements: understood, unstable

Functionality: moderately complex

Customer Support: unknown

Requirements: poorly understood, volatile

Functionality: highly complex

Customer Support: inadequate

Requirements: uncertain, evolving

Functionality: many complex “functions of functions”

6. Strategic Importance, Political Implications, Stakeholders

Executive Support: strong

Political Implications: none

Communications: straightforward

Stakeholder Management: straightforward

Executive Support: adequate

Political Implications: minor

Communications: challenging

Stakeholder Management: 2–3 stakeholder groups

Executive Support: inadequate

Political Implications: major, impacts core mission

Communications: complex

Stakeholder Management: multiple stakeholder groups with conflicting expectations; visible at high levels of the organization

Executive Support: unknown

Political Implications: impacts core mission of multiple programs, organizations, states, countries; success critical for competitive or physical survival

Communications: arduous

Stakeholder Management: multiple organizations, states, countries, regulatory groups; visible at high internal and external levels

©2009 by Kathleen Hass and Associates, Inc. adapted from Managing Complex Projects: A New Model by Kathleen B. Hass

Complexity Dimensions

Project Profile

Independent Project Moderately Complex Project Highly Complex Project Highly Complex Program

“Megaproject”

7. Level of Change

Organizational Change: impacts a single business unit, one familiar business process, and one IT system

Commercial Change: no changes to existing commercial practices

Organizational Change: impacts 2–3 familiar business units, processes, and IT systems

Commercial Change: enhancements to existing commercial practices

Organizational Change: impacts the enterprise, spans functional groups or agencies; shifts or transforms many business processes and IT systems

Commercial Change: new commercial and cultural practices

Organizational Change: impacts multiple organizations, states, countries; transformative new venture

Commercial Change: ground-breaking commercial and cultural practices

8. Risks, Dependencies, and External Constraints

Risk Level: low

External Constraints: no external influences

Integration: no integration issues

Potential Damages: no punitive exposure

Risk Level: moderate

External Constraints: some external factors

Integration: challenging integration effort

Potential Damages: acceptable exposure

Risk Level: high

External Constraints: key objectives depend on external factors

Integration: significant integration required

Potential Damages: significant exposure

Risk Level: very high

External Constraints: project success depends largely on multiple external organizations, states, countries, regulators

Integration: unprecedented integration effort

Potential Damages: unacceptable exposure

9. Level of IT Complexity Technology: technology is proven and well-understood

IT Complexity: application development and legacy integration easily understood

Technology: technology is proven but new to the organization

IT Complexity: application development and legacy integration largely understood

Technology: technology is likely to be immature, unproven, complex, and provided by outside vendors

IT Complexity: application development and legacy integration poorly understood

Technology: technology requires groundbreaking innovation and unprecedented engineering accomplishments

IT Complexity: multiple “systems of systems” to be developed and integrated

PROJECT COMPLEXITY FORMULA

Highly Complex Program

“Megaproject”

Highly Complex Project Moderately Complex Independent

Size: Multiple diverse teams, Time: Multi-year, Cost: Multiple Millions

Or

2 or more in the Highly Complex Program/Megaproject column

Organizational Change: impacts the enterprise, spans functional groups or agencies, shifts or transforms many business processes and IT systems

Or

3 or more categories in the Highly Complex Project column

And

No more than 1 category in the Highly Complex Program/Megaproject column

3 or more categories in the Moderately Complex Project column

Or

No more than 2 categories in the Highly Complex Project column and

No more than 2 categories in the Moderately Complex Project column

And

No categories in the Highly Complex Project or the Highly Complex Program/Megaproject column

New Project Leadership Model : Managing Business Complexity K. HASS BAF2014 GENEVE et PARIS

Presentations & Public Speaking

Transcript of New Project Leadership Model : Managing Business Complexity K. HASS BAF2014 GENEVE et PARIS