vector human resource management concept in flat styleThis is one of the ways to assign a certain task to a worker. Unfortunately, it is among the most frequent, but the least effective.

Imagine that something similar happened in a hospital. A patient who has suffered an accident and has fractured a leg comes to the emergency room. Who should care for this patient? Any doctor, who is free at the time? Or would it be better for the patient to be taken care of by a specialist in trauma and fractures?

In this example, the answer is clear. However, it is not straight forward when allocating resources and workers to projects in a company.

Allocation of resources: key to efficiency

Appropriately allocating tasks will ensure that each worker is engaged in projects for which he or she is more skilled or more experienced. By ensuring appropriate allocation, it is possible to improve the efficiency of the company, obtaining better results in less time. The result is greater profits for the company and for workers at all levels.

  • Economic benefits. The quality of the results will be greater, since the project has been executed by a specialist. In the example above, there will probably be better patient survival rates and better functional outcomes (less pain, faster recuperation, etc.) if the physician is a specialist.
  • Increased confidence. The achievement of good results is in itself an outstanding value for obtaining new clients. Returning to the example, if the patient is satisfied, he is likely to recommend the clinic to other patients who present the same problems, which, if they have the possibility, will choose the option they consider the best. Likewise, if a company satisfies its customers, they will become a source of publicity within their professional sector.
  • Temporary benefits. It is possible that a specialist and a layman in this instance will achieve the same result in the end, but it will probably take a lot longer for the layman. This additional time incurs an expense in the form of opportunity cost: the additional time dedicated to the task by the lay worker could have been used to perform another task, therefore losing both time and money. In addition, the fact that a worker who has no experience is engaged in performing a certain task, increases the risk that they will not be able to complete the work on time. This is another reason why a suitably qualified worker should be assigned to each appropriate task.
  • Benefits for workers. Focusing on tasks for which you have prior knowledge and preparation, allows you to obtain satisfactory results for yourself, which allows personal self-realization and decreases stress levels.

Assignment of tasks: aspects to consider

What aspects should be considered when assigning a task to a particular worker?

  • Skills. This is the most important thing. Does the person we are going to assign to perform this task have the necessary skills to be able to execute the project completely and successfully? If the answer is yes, there is no doubt, this is the right person for this task
  • Experience. Has the person to whom we will be assigning the project carried out similar tasks previously? If the answer is yes, you will have valuable experience that you can use in the realization of this new project. In addition, it will present less uncertainty and more confidence, since they have managed in the field previously, therefore should require less support from management and colleagues. In this instance, experience could be more important than skills. If a worker is qualified to perform a task but has no experience, he or she may still need to receive some support during their first steps, to become fully comfortable.
  • Interest. Difficult to measure but very necessary for the success of a task. A worker may have qualifications in a particular area and also have experience, but that does not mean that he is motivated. Motivation is fundamental to be able to perform a task properly and be able to respond to new problems that arise during the execution of a project. Therefore, we must talk to the workers before assigning them a project and, not only assess their training and experience, but also take into account their motivation.
  • Cost. Using overqualified workers to perform relatively simple tasks is to misuse resources and imply an unnecessary expense. Going back to the example at the beginning of the article, it would be like occupying the specialist surgeon in organizing the appointments or the programming of the operating room. They are administrative tasks that can be performed by the surgeon, but it is preferable that the management team takes care of this to allow the surgeon to utilize their skill set and experience in the most effective way. In the case of personnel with less specialized qualifications, their salary will be lower and therefore imply a lower cost.
  • Geographic location. There are more and more tasks that can be carried out remotely, allowing the most qualified or experienced personnel to be hired for a specific role, regardless of their geographical location and without having to pay transportation costs. However, there are tasks that still require the physical presence of workers. Therefore, the economic, temporary and personal cost of moving a worker to a specific place to carry out a project, or selecting another worker who is already in the location but may be less qualified must be weighed up.
  • Availability. Obviously, to assign a task to a particular worker, they must be available. However, the fact that they are available does not necessarily imply that the task has to be assigned to the first worker that is present. Checking the availability of workers should ensure that new tasks are assigned fairly, however also making sure that the workforce aren’t being either underutilized or overworked.

In order to keep track of the degree of utilization of the talent of a company or a project, it is essential to have efficient mechanisms for collecting information and reporting. The resource management module of ITM Platform allows you to check the use in a portfolio view, so that you can detect overlaps in the use of resources by different project managers.

Juan Delgado
Blogger
ITM Platform

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clock, paperwork, suitcaseFor a project-based organization, setting up a PMO is equivalent to parenthood. It’s just not enough to wake up early to go to work, eat your sandwiches diligently in front of your screen and be a loyal friend. From the moment you embark on this new ship, it’s a whole new level at which you will need to keep ahead of events, create new habits, and be always ready to respond to an emergency. For me, the key to start the process with the right foot forward is to know yourself as well as you can.

Organizations can use the wisdom of self-knowledge in smart ways. Let’s have a look at factors that are helpful indicators of maturity.

 

Know thy maturity, they say

The degree of maturity of an organization is strongly correlated to the complexity of the PMO model that it is likely to implement

According to a study published by Forrester and PMI in 2011, there a number of features and characteristics that provide insight into the maturity of a company.

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Possible signs of low maturity:

  • Lack of clear strategy. Projects are not always properly aligned with the objectives of the organization.

  • Lack of quantitative evaluation. In this scenario it's impossible to obtain clear indicators of the state of each project, identify the causes of any problems and search for areas of improvement. In addition, measures should be taken to improve the efficiency of the company.

  • Ideas, projects and business areas are not prioritized.

Companies that have a medium level maturity may show the following characteristics:

  • Ability to prioritize projects.

  • Some degree of alignment between projects and the overall objectives of the company.

  • Metrics to quantify the results of high level projects.

  • Resources are planned prior to implementing a project.

A company with a high degree of maturity has the following features:

  • Integration of the company’s work and tasks in projects and programs.

  • All work is goal oriented. Each task or project is working towards the general objectives of the company.

  • Standardized measures for the results of each project are performed. This way you can monitor both the progress and status of each project and the impact that the various risks and corrective measures may pose to each of them.

  • There are effective systems in place to allow quick and flexible communication among team members in the various tasks and projects.

  • Work systems can incorporate agile and classic methodologies that help maximize efforts.

  • Projects conform to international standards, ensuring quality and allows smooth implementation in all locations the company is present.

  • Software options combine Specific and advanced solutions with simple and direct tools so that workers can optimize the use of their time and be more productive.

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Implementing a PMO

1. Justification and initiation. Once company executives are aware of the benefits, your organization might be in a good place to start setting up a PMO.

A PMO can contribute clear objectives and compliance metrics, identify possible deviations and define corrective measures. Decide how much your PMO will take up, build your information streams and draw up a goal-driven plan.

2. Planning. What are some of the steps needed to implement the new project management policy?

  • Seamless communication with the board of directors and with customers to establish the scope, objectives of the company and therefore decide the projects to be undertaken. These communication channels should be structured and maintained throughout project implementation.

  • Choose an organization system for the company, project management methodologies and a governance model.

  • Recruit your project management staff. Your crew may combine specific project management training with an open mind that allows continuous training throughout the project to meet the needs which may arise during work.

3. Execution. Measurement and monitoring frameworks are an important component of project implementation that can easily benefit from the centralized functions and the homogenization of a PMO. Project managers position will be strongly supported with the enhanced communication between all organization stakeholders.

At ITM Platform we can help in the process of creating your PMO. With our platform, user onboarding and technological deployment are seamless: our customers start using our solution in as little as one week. You will be able to focus on what really matters: defining the internal procedures that allow you to improve your performance.

If you want to know more about how we can help, request a demo of ITM Platform or request our implementation service, which provides tailored training adapted your company’s needs.

 

Juan Delgado
Blogger ITM Platform

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delivery service process office flat 3d web isometric infographic concept vector. exterior and interior isometry rooms with people staff workers. warehouse management. creative people collection.When project after project is being completed with delays of above 20%-30% unrelated to major issues, executors complain of poor coordination and PMs report progress without a unified model, you might be in a situation that would benefit from the centralization of your governance in a Project Management Office (PMO).

PMOs are versatile: they are adaptable to the nature of the organization that creates them. Therefore, when implementing a PMO in your company, you will need to decide what the roles and responsibilities of the PMO will be. By understanding what needs to be addressed and the issues currently faced at your organization, you can shape the PMO as a response to those factors.

Internal Evaluation

The first step to determine the most appropriate type of PMO for a company is to know what the expectations of the PMO are. Ask yourself and your internal customers the following questions:

  • What are the main problems or areas of improvement within the organization? Have you detected inefficiencies in any of our processes?

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  • What is the balance between formal and informal communication flows and reporting from the company? Is the company coordinating too much work in a spontaneous and decentralized way? Does this pose a problem for the evaluation of management processes? These questions are especially important in relation to the size of the organization: while small teams can afford a high degree of informal communication, a growing the business must follow the path of standardization. It’s vital to persuade all staff to adopt new procedures and to identify the risk low adoption.

  • What is more central: operations or projects? PMOs are designed to work with projects, not operations. If the latter are predominant, you may use a PMO to frame operations in a broader scope or to integrate them with other sections of the company. However, this is a very indirect form of projectization.

  • Is the company currently achieving its main objectives? If not, why might this be?

  • What are the measures to adopt if the organization does not meet the intended objectives?

When finally implementing a PMO, you must decide what a successful PMO might entail, and how to know if it is not operating as it should.

Objectives, size, maturity and corporate culture

The structure and objectives of a PMO depend on the degree of efficiency required by the company. For example, a PMO can serve to manage both a business for profit as well as any other humanitarian purposes. However, more often than not economic profitability takes precedence when setting up a PMO.

Another aspect to consider is the size of the company: Project scope, type of product, target audience, etc. will vary. While a small business can use a less structured approach, in a larger company the number of simultaneous processes that can potentially coexist multiplies, and so does the importance of standardization and structured reporting systems.

It’s particularly important to maintain the balance between support and control. Focusing too much on control can cause discomfort among workers and increase resistance to change, while offering too much support can lead to excessive documentation and training no one will actually use.

One possible solution is to begin with less demanding PMO models with supporting functions, and gradually pivot towards controlling and directive approaches.

Selecting the most appropriate PMO for my company

Here is a list of situations where it would be advisable to choose a specific type of PMO. Although the classification of the 3 types of PMO remains orientative, it can serve as a good starting point to size the scope of the project and identify good practices.

You should choose a Supportive PMO if:

  • Your company lacks methodologies, procedures and project management tools.

  • Project Managers have not developed specific skills in project management

  • Your company lacks adequate training programs and updated project management.

You should look for a controlling PMO if:

  • There is a moderate project management culture in your company.

  • Project managers have basic knowledge in current PM standards.

  • The organization is accustomed to multidisciplinary projects.

  • Project management standards and compliance practices are implemented.

  • The supportive PMO is already implemented.

The directive PMO would be best if:

  • The company has successfully implemented the previous two types of PMO.

  • There is an established project-based mentality.

  • Schemes to monitor all processes with structured reporting systems are effectively established.

 

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hosting services developers and office staffs busy in working process Project Management Offices (PMOs) organize and economize resources by establishing protocols and documentation that normalize, consolidate and centralize project management.

When implementing a PMO it is necessary to recognize the inadequacies of current project management capabilities, what needs to change and how a PMO can bring about this change. However, there is no one recommendation to effectively manage the change. The goal of a PMO depends greatly on the context of the organization as well as various factors such as the macro economy, the size of the organization and the capacitation of project management staff.

 

Nevertheless, the most important factor will be how well the PMO responds to system failures. Naturally, every situation will be different, and therefore the solutions will have to be adapted accordingly.

Although it is risky to offer recommendations on such circumstantial cases (and to accept them!) categorizing the different forms of PMO to suit the situation can be beneficial. A classic typology of the different forms of PMO is in William Casey and Wendi Peck’s "Choosing the right PMO setup" article (2001). Casey and Peck begin by recognizing that the PMO is often used as a panacea – but there is no universal medicine.

His typology is based on three metaphors: a PMO can be a "weather station" a "control tower" or a "resource pool".

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Type 1: The "weather station" PMO

Sometimes, customers feel that they are poorly informed about the on-goings of the project. Their perception is that they are investing time, money and hope into the project without detailed information.

It’s also common for clients to have ordered several projects simultaneously and then receive differing information about the progress of each project, in different formats, with different styles and types of data. Streamlining decisions based on such heterogeneous information is rough.

The solution to this problem is to implement a PMO whose mission is to provide objective, well-structured, and comparable factual information. By providing templates for reports, information can be presented uniformly and predictably, allowing for the efficient extraction of information.

Example customer concerns that the “weather station” PMO must answer are:

  • What is the current status of the project? To what degree have the initial objectives been met?

  • What has been invested or how much has the dedicated capital contributed? Is the planned budget sufficient? How much of the total initial budget has already been spent?

  • What are the main risks or problems that may occur during project implementation?

However, this type of PMO is merely informative, which means they do not have the authority to coordinate or to make decisions. They serve purely to inform any interested party and the information may assist the Project Managers to make better decisions.

If you think it is necessary to implement a PMO that makes decisions and solves project issues, you should opt for another model.

Type 2: The "control tower" PMO

This type of PMO can be used in combination with the previous model. In fact, both may construct a suitable supplementation in which the first model identifies and monitors problems, whereby the additional functions of the PMO to ensure that the project complies with established standards.

The functions of this type of PMO are:

1. Setting standards for project management. The standards serve as a methodological reference for the project managers. They must adapt as much as possible, whilst also having a certain degree of flexibility to respond to market changes in real time. The establishment of standards also includes the following aspects:

  • Setting the desired level of risk.

  • The organization of HR that are responsible for carrying out the project.

  • The distribution of tasks.

  • Channels of communication and information that will keep the team, management as well as customers updated.

2. The choice of methodologies for the measurement and analysis of results. It must establish quantitative systems to monitor project progress in real time in order to detect any deficiencies and to take corrective action to minimize the impact on the initial plan.

3. Compliance and rising standards. The constant application of corrective measures can be adjusted in the initial plan in order to meet the established standards. Depending on the maturity of the PMO and the degree of compliance of the organization, it may also be important to review the standards from a new perspective.

Naturally, when the degree of compliance is low, it may be beneficial to review the standards "downward" to bring them to a more realistic level.

Type 3: The "resource" PMO

This third type PMO usually occurs in very large companies where a high degree of specialization is required and where it can mobilize human resources to new projects with relative ease.

For example, a project manager may be assigned to a project, but does not have the desired skill set to manage the project. In this case it is necessary to have a location where all project managers are organized as if they were products in a catalog. When you need a Project Manager who is an expert in a particular field of knowledge, you can easily search for and find specific experts that meet the requirements. This ensures that the project manager has the necessary training and experience to match the desired quality and, therefore, ensures the best managers are on the appropriate projects.

This interpretation of the PMO does not guarantee that the right projects are carried out or that they are carried out in the best way; only that the elected Project Managers are the most suitable for the project. This is a good foundation on which to maintain success, along with other factors such as good communication, and a skilled and motivated workforce, etc.

Once the appropriate project manager is selected, they must be allowed enough freedom to perform their work as they deem appropriate.

So what is the best type of PMO?

As explained previously in this article, each company and each project has different goals and aspirations. The type of PMO that will be best suited for your organization will depend on the maturity of a company, its scope and your needs. You may find different aspects from different types of PMO are what you need, and draw inspiration to tackle change freely.

 

 

This is the first of a series of articles of posts on Project Management Offices. The next three articles will focus on each of the PMO models explained above.

 

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business management meeting and brainstorming concept with people on the round table in top view

One of the most intangible tasks when managing risks is at the very beginning of the process. Not in designing procedures or planning, which is streamlined thanks to the efforts of the international community of experts in project management.

No. The most fleeting task is to define the risks and identifying threats before they are verified. For this purpose there is no definitive formula. But fear not, because the standard ISO IEC 31010: 2009 includes up to 30 techniques to identify risks which you can use for inspiration.

 

In this article we will discuss a selection of the twelve most interesting techniques. Note that the best results will depend on how you use a combination of different techniques to extract the maximum amount of valuable information. At the end of the day, it is the human talent in your organization who will be identifying, evaluating and planning all aspects related to the risks; techniques are only a shuttle to expedite the talks.

One of the techniques is the familiar SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). Although it is not a specific technique, the upside is that it is well known in any organizational environment, allowing rapid participation of people unfamiliar with the more technical aspects of risk management.

Brainstorming

It is not a specific method for identifying risks, but is commonly used in departments related to the creation and design of the product. However, it can also be applied to this area.

Allowing room for imagination, creativity and exchange of ideas can lead to discovering unidentified risks and thus taking appropriate measures before they happen.

Brainstorming can be done in different ways:

1. Structured brainstorming. Each participant works on their own and share only the ideas that seem most appropriate. A variant of this method is that each team member says his idea without having prior time to reflect on it. The main advantage of this method is that all team members have equal opportunities to contribute their ideas, regardless of their rank in the company or personality profile. The drawback may be the lack of spontaneity.

2. Free brainstorming. The meeting participants bring their ideas spontaneously. The advantage of this system is that participants can build their ideas spontaneously from the contributions of others and letting their imagination flow.

3. Silent brainstorming. In this case, post-it are used by each participant to write down their main ideas. Upon completion, post-its are placed on the board.

Checklists

Checkpoints ensure that no significant errors occur during the execution of the project.

Simplicity is their fundamental advantage. However, placing undue reliance on these lists can lead to avoiding an exhaustive analysis.

Lists are very useful for repetitive and highly standardized procedures such as manufacturing, but are deficient in innovative environments and in the context of customizable services.

SWIFT

The Structured "What-if" Technique essentially consists on an analysis method where you consider what the consequences of certain events could have for the project. The counselor of the session repeated again and again: "Should this happen, what could we do?"

SWIFT usually starts off with a brainstorming session to compile a number of risks, which are then structured in a logical sequence. Then they are analyzed in detail, taking into account their possible causes and consequences and allowing to identify interdependencies.

Situations analysis

Closely related to the method described above, however, this analysis uses different timelines or alternative contexts, which occur as the situations arise.

At the meeting, the impact that each of these scenarios would have on the project should be analysed, and the actions should be undertaken if appropriate.

Fault tree analysis

This is a useful tool to identify and analyze the causes that lead to an unwanted event. It is placed on the top of the diagram and then lines are drawn in the form of an inverted tree, identifying at successive levels the causes that led to it.

This technique could be considered as a particular type of brainstorming focused on causality. Possible causes that produce a certain event are discussed.

The emphasis of this technique in causality makes it particularly relevant when searching for solutions. Having identified the root cause of the problem, it’s easier to find ways to eradicate it and thus cancel undesired consequences.

Bow tie analysis

This analysis is characterized by an emphasis on the graphical representation of causes and consequences of a risk.

The risk is written in the center position of the diagram.

A causal tree, similar to the fault tree analysis, emerges to the left. To the right, a tree of direct and indirect consequences forms a mirror with the causes. The end result of the scheme resembles the shape of a bow tie, where the risk is the knot and the causes and consequences are each of the loops.

Direct observation

Although not a specific technique for risk identification direct observation has a prominent position. In fact, establishing a culture of lifelong care and continuing training is the best way to be prepared for any risk. The team assigned to a project is the first that can sense when something does not work in the appropriate way, making alarm ring and taking the necessary measures.

Incident Analysis

During the realization of a project, previously non identified risks are presented. Once submitted, you must perform an analysis of causality to know the reasons that have led to the occurrence and also examine the impact consequences have had on the whole project.

A register of these events and their analysis will form the basis for the detection of future risks.

Similarly, the repetition of a given risk should lead to an analysis of deeper causes on which we should act to achieve an effective solution.

Structured interviews and surveys

Structured interviews in which team members of different ranks and sections are selected allow you to obtain an overview of project status and potential risks that may arise. Despite the fact that questions are closed, face to face interaction allows to gather open feedback.

Surveys can be considered as a modified version of structured interviews, with the drawback of giving less room to open-ended questions.

However, they can result in larger samples and more representative data.

The Delphi method as an example of iterative system

The Delphi method is based on an expert consultation structured at successive levels that feed into each other, chasing progressively closer to an agreed response that can predict the future of a particular event or project.

In a second round, experts show their answers and these are elaborated in a group.

After several rounds, moderators modify the questions and seek common points that allow to reach a consensus, results are statistically analyzed and a collective response is achieved.

Applied to the identification of risks, the Delphi method is a robust and sophisticated system of consulting experts, as they are asked several times on the same subject thus getting closer and closer to a consensus among them.

Due to the repetitive nature of the consultations, the Delphi method is an iterative technique.

Monte Carlo analysis

The Monte Carlo analysis is a complex system of mathematical analysis whereby arithmetic calculations make approximations in which a precise solution cannot be obtained.

Specific software calculates the odds of different risks considered as random events, taking into account the impact each would have on the project and the likelihood of occurring. If you want to know more about this technique you can keep reading here.

 

Here are some recommended articles:

Our new Risk Assessment Matrix is online

Keys to becoming a good risk manager

Risk management… The what, the why and the what to do

 

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