Project Types -
choosing the project management method to suit the characteristics of the
project
by
Chris Dale, Btt Ltd
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The Inequality of Projects
We
regard it as self-evident that not all projects are born equal.
Obviously,
projects vary in size, costs and complexity but beyond that, the term
'project' is applied across such a wide range of activities in so many
different industries and sectors, surely there will be differences in the
way they need to be managed?
We suggest that there are indeed important
differences. Our experience is that it is critical to recognise those differences
and adapt the way each
project-type is planned, structured and managed accordingly.
We have found it
useful to categorise projects
into 3 types, each with its particular characteristics. They are: -
Attempting to manage a project according to the
rules of an inappropriate category will, we find, lead to significant
problems such as increased risk
of failure, increased costs, increased use of resources and delayed delivery. However, choosing to apply an
inappropriate category does remain popular and is frequently done.
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Here's an outline sketch of each project type:
1.
Production-type
Production-type projects are those which consist of well known tasks and are
in that sense, comparable to those you could find in a manufacturing process.
There may be some uncertainty, for example, about how the actual task
durations will compare to the planned, but there is little ultimate
uncertainty that the tasks will accomplish their intended outcomes within
acceptable variability.
Examples of production-type projects include:
-
building a ship (with established technology and techniques)
-
refurbishing a commercial aircraft
-
software development (but only where the
technologies are well understood! See
Btt example where
production-type techniques were applied to bring dependable delivery
performance to a complex environment... once the process had been stabilised)
-
some roll-outs of desktop or server software updates
-
building construction - those where there are few if any novel aspects
-
capital projects involving few unknowns (although the actual 'product'
configurations may be new to a project)
-
scheduling of laboratories (see Btt example)
Production-type projects lend themselves to PERT
and Gantt chart methods and software tools such as MS Project.
Production-type projects can be managed particularly effectively using Eli
Goldratt's Critical Chain techniques. Production-type products can be
structured to deliver results in short cycles (eg. 2-weekly cycles) as
described in this case study
more...
2. Learning
Process
For many projects in complex environments, it is
sensible to recognise from the start that there are areas of the project which
depend upon outcomes which just cannot be known with any degree of certainty.
There may be uncertainties about:
-
how new technologies will perform (eg.
the scalability of the technology, its reliability or support costs in
operation)?
-
how organisations will react to changes to working practices?
-
how customers will respond to new products?
-
whether specific techniques
will work as hoped in new situations (eg. will 'Lean' methods or 'Six Sigma'
or PRINCE2 really produce the outcomes needed)?
-
whether the demands on the project will change
unpredictably? Will the objectives suddenly change?
Complex environments and complex projects by
definition potentially entail many unpredictable interactions.
However much we
all like to believe the optimistic outlook or management demands for certainty, it is humanly impossible to
foresee how all those interactions will 'pan-out' or how changes in the
environment and changes to stakeholders requirements will
further complicate those
interactions.
The nature of a learning process project is that
at any stage, you can realise the objectives need adjusting, the requirements
need adjusting, your overall strategy or tactics may need adjusting. It
represents chaos for a conventional project. It represents reality in a fast
moving world where adjustment is a way of life.
For complex projects or projects in complex
environments, it would be wise to recognise the uncertainties and unknowns
as early as possible before the project is given the go-ahead. It is
acknowledging that answers will have to be uncovered in order to make progress
and that the project will be guided by the results of some trial-and-error or
testing. The answers just aren't known at the start. Formulated the project as
a learning process means that those charged with approving the go-ahead can make
an informed
decision, and the project and project management approach can be shaped around
managing the risks in pursuit of the rewards.
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Examples of 'Learning-Process' projects include:
-
complex systems development
-
complex systems implementation (eg. ERP
implementations)
-
business change programmes
-
business performance improvement projects
(eg. business reengineering)
-
new product development
-
construction projects where there are
novel or demanding circumstances (eg. difficult foundations or tunnelling)
-
research & development projects
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Learning-Process projects can be structured as
a series of results or
outcome deliveries. |
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In a similar way to Production-type
projects, Learning-process projects can be structured to deliver useful
results (eg. operational improvements or some other benefit) in frequent, short cycles.
We have found 2 week cycles to work well but cycles as short as 1 week are
possible.
Progress within Learning-process projects tends
to be measured in terms of improvement achieved or delivered. That may be in
measurable performance improvement in say; a business organisation, business
process or a system. Or, it may (say) be an increased level of understanding
of how, say: -
-
a business change is likely to work in
practice or,
-
how staff will respond to new working
practices or,
-
whether an IT system investment can really
return the benefits promised or,
-
how customers will react to new products or
new sales channels
... before significant implementation effort and
expenditure is undertaken.
It could also be something like getting real
measurements data on a question such as: how effective will our proposed
solution likely be in real life? Just how much of the business performance
improvement we want, are we really likely to get from the solution we have in
mind? What's its real capability? Do we need additional answers?
A method particularly suited to managing
learning-process projects is the approach championed by Tom Gilb for many
years, called Evolutionary Delivery.
Note: there
can be combinations of Production-Type and Learning-Processes stages within a
given project. For example, some stages of a project may essentially be
concerned with learning what works and what doesn't, and using the knowledge
gained to the benefit of later project stages. Those later stages may
themselves be production-style activities.
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3. PRINCE2 (or
other 'waterfall-style' methodologies)
According to the manual "Managing Successful
Projects with PRINCE2" (published by the UK government Office of Government
Commerce, OGC), PRINCE2 is a 'best practice' project management method and
recommended as appropriate to all projects.
PRINCE2 is mandated for use on UK government
projects. Many commercial organisations in the UK also stipulate it should be
used in their projects. The decision to use PRINCE2 will therefore typically
be the result of organisational policy, rather than determined by the
characteristics of the project.
Although officially deemed ubiquitous, like any other project management
method, PRINCE2 has its strengths and weaknesses and these are examined in a
separate article. PRINCE2 is a strong
choice for those stable, slow-changing environments in which:
-
requirements are accurately known clearly from the start of the project
-
requirements are very unlikely to change significantly during the life of
the project
-
the environment itself in which the project is being delivered is unchanging
or at least, slow changing in relation to the project duration
-
there are no significant uncertainties such as
new technologies and or organisational complexities involved (compare
Learning-process projects above)
-
the deliverables from the project can be awaited for a period normally
of months to years (because of its structure, PRINCE2 does not lend itself
to short cycle delivery and is not concerned with the operational use of the
project's products)
-
those paying for the project are prepared to wait for the payback on their
spend only after the project's closure in many month's or years time (rather than, for example,
expecting frequent, short-cycle delivery of results).
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The acronym 'PRINCE' stands
for PRojects In Controlled Environments (Ref:
"Managing Successful Projects with PRINCE2". 2005. p1).
A helpful
prerequisite for a PRINCE2 project to be successful is a stable, controlled environment
in which to operate;
a rare situation in many industries these days.
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Microsoft Project is a trademark of Microsoft
Corporation
Prince® and PRINCE2® are registered trade marks of the UK Office of Government
Commerce |
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The "How to find out more" Department |
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For more on the subjects covered in this
article, please use these links... About the author:
Chris Dale
Books: for more in-depth coverage of
the techniques in this article, take a look at
Production-type Projects
Learning-Process projects
PRINCE2 projects
For general background:
Btt principles
Learn more - attend a seminar or
training course: more...
To raise questions or discuss the subjects
further, please contact us at
questions.
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Projects & Programs
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