The New PMBOK - What's In The Future

March 21, 2012 01:52 PM | COMMENTS (0) | CATEGORIES: PMBOK, PMBOK training, PMP, PMP course, PMP exam prep workshop, PMP training, PMP workshop

The draft version of the next PMBOK® is out for review. As a PMP® and a company delivering the PMP® exam prep workshop we have found numerous disconnects in the "standard". The disconnects and imbalance in the loosely used term "generally accepted" makes it difficult to teach and actually makes the preparation for the exam for students daunting to the point where some say §#&¥ it. And these are very smart people who are exceptional program-project managers.

We have not yet reviewed the new PMBOK®. When it hits the news stand for purchase we will perform an in depth analysis page by page to connect the dots between chapters, acronyms, glossary, practice standards and other reference material noted to see if the PMBOK® has its act together.

Our course and direction is:

  • Is it a "standard"
  • Is it "generally accepted"
  • Does it "makes logically sense"

In Project Navigator we will bring you the chapter by chapter details of what we find and what to beware of in hopes that it will make deliverying the PMP® prep workshop better for all.

We plan on being bunt honest with our findings.

From this maybe someone on the far side of the moon will be able to see the light at the end of the tunnel.

Stay tuned.

Project Navigator: Setting the Correct Course to Reach Your Destination


Outsourcing - On Its Way Home

March 21, 2012 01:30 PM | COMMENTS (0) | CATEGORIES: business process, business sustainability, complexity, international operations, outsource, outsourcing, procurement, risk

Outsourcing - On Its Way Home
  • We know all the wrong outsourcing countries. We have dealt with them all!
  • How many outsourced people does it take to change our name on our website? 7…7?... Yes 7. It’s in the contract.
  • We’re back…!

Outsourcing - on shore or offshore - is not a walk in the park. It''s an endeavor! Yes endeavor, not a project. It lasts as long as you can stand it or have Outsourcing, offshore, onshore, teaming, partnership, business sustainabilitythe money to throw at it. Granted some outsourcing has been beneficial, it has generated improvements in third world countries and fostered the growth of the world economy. However, like everything else it has to keep moving or it dies in its own whirlwind.

Many businesses chose offshore outsourcing recommended by the top 100 consulting firms and the Gartner seminars only to learn the hard way. Many came home after loosing great sums of money [just ask Dell]; some paid much more than they envisioned and passed it on to the US consumer through astronomically  higher prices. This is not a model for business sustainability and efficiency. It is short term and short sighted.

Little attention was paid to the deeper business Risk, black swan, outsource, uncertainty, complexitycase, risk and long term justification - only short term profits. The top 100 and Gartner made money but businesses lost.

Since 2003 VBPM has advocated and advised clients on outsourcing onshore and offshore with a model that was first utilized in the late 1940s and from 15 years of international operations experience. Our roots are in business sustainability and efficiency not short term results.

The current economic environment is playing havoc with companies that have outsourced offshore. Here are some very simple reasons:


  • Fuel price increases to ship products have quadrupled
  • Demand increase has resulted in reduced quality
  • With reduced quality comes increased travel to determine and fix problems
  • Offshore salaries have risen and it is trending beyond the BRIC countries

The business risk for any of these basic reasons was not analyzed or respected. And there was no Plan B! There should always be a Plan B and more such that a business is prepared to pull the trigger on a moments notice on their terms to ensure sustainability. For the reasons above and more companies are pulling back offshore manufacturing NOW!

 

So what about the services sector?

For some of us the first word that comes to mind is Lousy! Services are hot to bring back home as well. India based companies have started opening shops in lowered salary countries to continue to keep their profits high. These countries are following the same trend that initial outsourcing "first movers" experienced - poor quality and language difficulty. Outsourcing has hit Africa so in a few years these countries may be off limits to outsourcing if the trends continue.

So what should businesses do now?

Thinking, wisdom, decision, critical decision making, solutions, leadership, business sustainability

The wisdom acquired from years of international operations indicates it is time to bring work back onshore or ensure the outsourced entity accepts greater risk for their problems. This is a leadership function. However, it just seems leaders can't pull the trigger. Some are even waiting on the politicians to provide help. Just think - a CEO making $5-10 million a year now needs political help because their hands are tied!

What would Peter Drucker say?
"No institution can possibly survive if it needs geniuses or supermen to manage it..."

The next time outsourcing a function is mentioned or though of as alternative approach, each business owner or project manager must think without boundaries and understand the long term risks to the project and the business.

Happy Projects


Business Sustainability

February 22, 2012 11:06 PM | COMMENTS (0) | CATEGORIES: business sustainability, cause & effect diagram, fishbone diagram, Ishikawa diagram, kaizen, lean, program management, root cause analysis

  • Are you really satisfied with how your business operates?
  • Do you know what your End Game is and how the final moments of your Super Bowl will be played?
  • Since Plan A and B didn’t work do you wonder if the problem will be solved by Plan Z?
  • Business Sustainability is very simple. Do those little things that build the foundation for others to learn and grow. One of the problems is:


    • Do you know what those little things are and how they need to be applied by someone else using them for the first time so they can perform to your expectations to ensure the business perpetuates itself?

    It's OK if you don't know. It may be something you were never exposed to but you built yourself a nice business anyway.

    Just about every business has rearranged their financial structure as a result of 2007. Businesses cannot continue to do this every year. Well it's time to do something different.

    Let's take defining the root cause of a problem. People usually start out with a brainstorming session,  surveys or other discovery techniques. I start out with all the stakeholders helping me develop a Fishbone diagram.

    Ishikawa-Fishbone-Cause&Effect

    What's a Fishbone? It is a tool to break down the problem into small elements to better determine the root cause of a problem. The Fishbone is also called a Cause & Effect or Ishikawa Diagram.

    Wow! Simple. Easy. Yes! But it takes more than just a picture and words to ensure you obtain the correct results for your business. That's what differentiates Business Sustainability from a simple tool - making the use of the tool sustainable value to the business.

    Try it out the next time you have a problem. One tip, don't let anyone, including yourself initially jump to conclusions or frame a gut feel resolution. Why? 85 percent of the people you engage will follow your lead and you will not find the real root cause. See a larger graphic of the tools on our website

    Best of Luck in your Business End Game


    Kaizen Program Office

    February 03, 2012 11:28 PM | COMMENTS (0) | CATEGORIES: BPM, business process, Business Process Management, certified lean office practitioner, kaizen, Lean, lean ofice, PMO, Portfolio Management Office, Program Management Office, Program Office, Project Management Office

  • Your PMO is how many hundred people?
  • We don't worry about innovation, we alwayshave great products!
  • Your all day status meetings have a greatsupply of donuts!
  • Our PMO is awesome - total authority but noaccountability!
  •  

    Over the last 10 years the program management office or PMO has been designed and developed in numerous organizations to be anything and
    everything to organizations except add value.

    Many PMOs have become kingdoms within organizations building intensive infrastructures only to eventually see that what they have built is so enormous and complex it caused the organization to slow down, did not improved project performance and added unnecessary bureaucracy eventually leading to their failure.

    Most PMOs of this type never started up again in the organization; a large loss to those corporations and personnel. In other corporations with PMOs there were several attempts to start new ones under a different name - same pig different color. These changed by watering down their governance and value from the fear of possibly failing again adding no value to the corporation.

    Years ago Kaizen was developed by the Japanese after years of learning from Dr. Deming and others. Elements of Kaizen were extracted into what is now called Lean in the American manufacturing environment. Lean is now well recognized in the manufacturing environment and surfaced a few years ago to take on the bureaucratic business process back-end office environment.

    PMOs need to take a lesson and start leaning out there organizational structure, processes, procedures and understand the true value they need to assist the corporation with innovation and improved profit.

    There is no one single blueprint for the Kaizen Program Office that will fit every type and size of organization. However, there is a basic structure that all PMOs need to follow to design, develop, implement and continuously assess their value. The structure is focused on three major foundational elements: the basic structure of the PMO to fit the organization; administration; and infrastructure and governance. 

    The Kaizen Program Office of the future must adhere to the entire Kaizen approach [and not just lean] for an optimized and ever improving structure to fit the environment, enhance innovation and to easily adapt in the future.


    Critical Decision Making: Deciding How to Decide

    December 28, 2011 05:42 PM | COMMENTS (0) |

    Years ago Peter Drucker stated, “Making good decisions is a critical skill at all levels.”

    • How do you and your team Decide How to Decide?
    • Is it by force-feeding, predetermined outcome, or paralysis by analysis?
    • Does leadership and the trip trip during critical periods on the journey?

    Organizations small and large improve their bottom line and profit through several ways. One of those is the ability or lack thereof to make critical decisions that ultimately have a negative impact on a company’s destiny.
    Products, services, jobs and lives are lost due to poor critical decision making, the lack of decision making governance and process, and the failure to follow the established governance. A few examples of past poor decision making are:Diaster, Diaster Reovery, Risk, potential problems, bias, decision, critical decision, critical decision making, risk assessment, risk analysis

    • Challenger space shuttle crash due to a failed o-ring in 1986
    • New Coke in 1985
    • Five deaths while climbing Mount Everest in 1996
    • Columbia space shuttle crash due to foam damage in 2003

    Executives and Leaders were the principle cause behind these disasters. Confirmation bias, leadership framing, sunk cost, and failure to follow the established governance were key elements that initiated the failures. A few keys points that need to be stressed when making critical decisions in order to avoid similar mistakes are:

    • Develop governance, process and a checklist
    • Remove any bias related to prior experience or leadership role
    • Eliminate the probability of group think
    • Don’t discount the outliers
    • Understand the differences between a risk and a problem
    • Develop and critically evaluate alternatives
    • Investigate the details behind ALL the numbers
    • Remove personalities or the persona of “The Smartest Guys in the Room”
    • Eliminate excessive caution or optimism
    • Enforce discipline of the process through checklists

    Critical decision making is not easy in organizations especially when adding politics and “Executive Warfare” to the mix. Leader would do well in taking some lessons from the animal world and Newton as a starter. Feel free to download and read the following two articles by our strategic partner Barra-Gwynn Enterprise: Leader of the Pack, and Leadership and Newton.
    Download our presentation delivered at several diverse associations in Southern California: Critical Decision Making: Deciding How to Decide.

    Critical decisions require much more investigation, effort and time but it is well spent to prevent a project failure or the loss of a business.
    How certain are you of the Critical Decisions on your projects or Business End Game?