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In keeping the austerity of our times, I also sent in my apologies saying that I didn't think it would be appropriate for me to go to Davos.
This blog is dedicated to improving corporate communications and incentives to help companies and projects improve productivity.
The CIPD has put together a formula to estimate the financial cost of redundancy:
(n × r) + (x × h) + (x × t) + ny (h + t) + wz (p - n)
n = number of people made redundant
r = redundancy payments
x = number of people subsequently hired
h = hiring costs
y = percentage quitting post redundancy
t = induction/training cost
y = percentage quitting post redundancy
w= average monthly staff salary
z = percentage reduction in output per worker caused by lower morale
p = number of people employed prior to redundancies
Source: CIPD
Layoffs should be the last resort, but however compelling the equation is in theory, it doesn't change the difficult reality many firms face. No one like making these types of decisions, but the decisions must be made.
The greeks measured time in two ways. Chronos, the quantitative measure of seconds, minutes, hours and days and Kairos, the separation between two moments of important opportunity or discovery.
It’s easy to measure chronos, every project schedule does that with the help of every clock. How many hours, days, weeks months will that task take?
Kairos moments of great advancement or great breakthroughs. It’s no more possible to plan that then it is to plan when you’ll meet someone and fall in love.
Do we measure chronos and hope for kairos?
A Little bit about Day Traders
In the world of financial services, day traders have existed since the first days of formalized markets. What distinguishes a day trader is that they have to close out all their positions every night. Meaning, they start with everything in cash in the morning and end with everything in cash at night.
So, if I’m a day trader and I start with $1,000,000 in the morning and after I close out all my positions I have $1,200,000, I made 20% on the day. If this happened, I would be an extraordinarily happy person.
A day trader will make thousands of trades in the course of a day. They watch what’s happening on the market and try to get a sense of the direction it is going in, and with this sense stay one step ahead of the market.
If they see a gap between the price someone wants to buy a stock at and the price someone else wants to sell a stock at, the day trader will try and fill that gap and make their profit in the process. It is a very fast moving world where one succeeds figuring out what’s happening before other people do. If you get it right, you can make a lot of money. If you get it wrong, you lose a lot of money. And every day, at the close of the day, you know the score.
What Project Managers can Learn from Day Traders
Project Managers try and makes sense of what is happening on a project. They understand where the project is supposed to go, they try and understand where the project is going, and they try to fill the gap so the project goes in the right direction.
Things to think about:
Inquiring minds want to know…
Dr. Martin Luther King used to end speechs by quoting a prayer from an old slave preacher. It’s an apt description of approaches to projects today: “Lord, we ain’t what we want to be; we ain’t what we ought to be; we ain’t what we gonna be, but, thank God, we ain’t what we was.”
On July 15 2008, PMI presented the finding of their four year, $3M study looking to see if project management added value. You can see their presentation here: PMI Presentation. What did they find? Dr. Janice Thomas and Mr Mark Mullaly found what most of us know; PM is messy, painful and immature, but what are the alternatives?
PMI, Agile and PRINCE2 all try and provide methodologies or frameworks to increase the chances of project success. This is difficult as projects often pull people from different departments together to work on a project. While that is what the project requires to be successful, what does that mean for the people pulled from the different departments? Is the project of primary importance to them or is what’s happening in their department of primary importance?
Business in Silos
When the modern corporation was formed, different departments were organized around specific functions. Accounting, Marketing, Sales, Finance, Operations and even IT all had separate requirements, required different skills and had different, recognizable purposes. These departments offered structure, communications channels and common ground which was the basis for working.
Large projects rarely fit in any of those silos. People are drawn from across the organization, often temporarily, to work on that one project. Where is the common ground or structure? Where does their loyalty lay? Can any externally supplied methodology or framework replace corporate power, communication and funding structures?
What is Project Management?
According to the PMBOK guide, “Project Management is accomplished through the application and integration of the project management processes of initiating, planning, executing, monitoring and controlling and closing.”
Whether constructing a building, making dinner or developing software; there are processes that will help one be more successful. At its core, that is project management.
Different Industries are Different
Is the process for constructing a building the same as the process for making dinner? Is it even similar to the process for developing software? No, the processes must be different. Are the skill sets required to succeed at each step similar? No, safety concerns in construction are obviously different from cleanliness concerns in cooking or complier concerns in software.
Can the Processes in One Make you Better in Another?
The roots of project management probably come from construction. The Romans realized foundations were needed before building walls and roofs. Specialized skills and the coordination between them are as appearant in the Roman Coliseum as in a modern sky scrappers.
At a very generic level, the ideas of critical paths, deadlines and dependencies may cross industries, but do the specialized skills to be successful in each area align? No. Safety concerns in construction are paramount. Cranes falling in Houston are catastrophic to that project, but not a concern to someone running a restaurant. Cleanliness hopefully is an overriding concern to the restaurant owner, but unfortunately isn’t so critical to software developers.
What is Project Management?
According to the PMBOK guide, “Project Management is accomplished through the application and integration of the project management processes of initiating, planning, executing, monitoring and controlling and closing.”
Whether constructing a building, making dinner or developing software; there are processes that will help one be more successful. At its core, that is project management.
Different Industries are Different
Is the process for constructing a building the same as the process for making dinner? Is it even similar to the process for developing software? No, the processes must be different. Are the skill sets required to succeed at each step similar? No, safety concerns in construction are obviously different from cleanliness concerns in cooking or compiler concerns in software.
Can the Processes in One Make you Better in Another?
The roots of project management probably come from construction. The Romans realized foundations were needed before building walls and roofs. Specialized skills and the coordination between them are as appearant in the Roman Coliseum as in a modern sky scrappers.
At a very generic level, the ideas of critical paths, deadlines and dependencies may cross industries, but do the specialized skills to be successful in each area align? No. Safety concerns in construction are paramount. Cranes falling in Houston are catastrophic to that project, but not a concern to someone running a restaurant. Cleanliness hopefully is an overriding concern to the restaurant owner, but unfortunately isn’t so critical to software developers.
Are the Methodologies Bunk?
History is bunk. What difference does it make how many times the ancient Greeks flew their kites? — Henry Ford (Source: NYT, October 28 1921, p. 1)
The methodologies can be a starting point, but too often its easier to focus on the methodological steps rather than thinking long and hard about what is happening on the project and the future.
Maybe they are not bunk, but rather like training wheels.
Words ought to be a little wild, for they are the assaults of thoughts on the unthinking. - John Maynard Keynes
We are living in times of great change. In two years, few of us will be where we are now. This week I will publish five posts that attempt to live up to Keynes’ advice. Please join me and be a little wild with your words. Today, let’s think about and vote on what our job title should be. Based on voting and suggestions, other options may be added. While this election may not be as captivating as the US Presidential elections, let’s make it a relevant assault on our thoughts.
Before we begin, I have a confession to make. I’m more technical architect than project manager. I’ve project managed because the PM was “asked to leave” and being the architect, political expediency dictated that I fill both rolls. If my view is jaded, it’s because I am. I also have the scars to prove I’m not unfeeling.
Experience teaches that we should beware of fancy titles. They often forewarn of responsibility without the power to execute. ‘Project Manager’ and its grandiose cousin ‘Program Manager’ are both wonderful titles, but do they accurately represent the job?
Please consider the following and vote:
Project Journalist
In an ideal world, the senior person responsible for suggesting the project and getting the budget should have their future with the company tightly linked to the success or failure of the project. If the project succeeds, they should get bonuses and recognition. If it fails, they should forfeit this year’s bonus, return the previous year’s bonus and lose 10% of their salary to recompense the company for some of the project costs.
The project sponsor would need someone who could give them an accurate picture of what is happening on the project. Where schedules are, who’s confident, who’s nervous, where are things going well, where there are problems and maybe even well thought out ways to improve. A project journalist: someone who is savvy, interested in seeing the project succeed and capable of providing an unbiased account of what’s happening and why.
Project Scapegoat
Honesty is the best policy.
Project Enzyme
Enzymes are biological catalysts, or chemicals that speed up the rate of reaction between substances without themselves being consumed in the reaction. (Source)
This would be the perfect title if it didn’t have the worst abbreviation – PE. Consider the following:
• “Oh god, you’re the PEe on my parade.”
• “Oh look, it’s the PEon.”
• “Don’t look now, but here comes the PEze Corp.”
• “Honey, I got promoted! I’m a PE!… Why are you looking at me that way…Where are you going…”
Project Manager
Voting is strictly anonymous, so no one will know the troglodytes who vote for this title.
Other
If you have other suggestions, please make them comments section. Meaningful additions will be added as options. Think of this election as being like Illinois politics- vote early, vote often, VOTE HERE. You don’t even have to pay…