Libor Bešenyi (CTO)

A few notes on projects and trends from the PM conference in Zlin (Czech Republic). Only 10% of companies can implement their corporate strategy and only 50% of projects reflect it! Existing features of project managers are already insufficient (they only take into account 1% of needs towards project success). 

Presentations

 Project Management

Need to distinguish horizontal and vertical level of company management (pyramid from top to bottom and left to right).

What is a project?

• A project is a system for creating added value of a company
• A project is a single (unrepeatable) activity – otherwise it becomes a process
• The only tool for company strategy implemetation

When do we need a project?

• Modifications of the existing processes (sources)
• Modification of the system (organization)
• A completely new system

Project management in company structure:

 Projects fail

Ignorance of project management of people:

• Only 54% of people understand how projects in organization work
• Only 12% of people understand project management perfectly

We see projects fail more frequently due to:

• Overspending
• Failure to meet project objectives
• Failure to comply with time

It mainly concerns failing on the process level:

• Poorly defined processes (people do not know what they are doing and why or who does what) - entire process must be made more transparent and explained

• Failed change management can completely stop a project:
  • Changes occur and it is necessary to know when to react (set up processes)
  • No one can tell what the project will look like in the beginning of the project (that is why changes occur during a project)
• It is also not often apparent why we do the project (follow up on company strategy)
  • McKensey says that only 10% of companies can implement their strategies (!)
  • Only 50% of projects reflect the company's strategy (this is when disillusionment arises)
  • New project objective is to understand the company's strategy (the necessity to understand the business side)
  • Corporate strategy is often not communicated (it is secret); letting the portfolio disconnected from the strategy is a huge gamble

• Project managers are not only Excel administrators

• Companies also struggle with problems with followers (these mostly come to a pre-profiled position but they do not have the experience of the history of the company and why this position was created) 

Project managers

 There are new requirements for project managers. Old requirements are not longer sufficient:

• 81% leadership skills (to convince people)
• 9% strategic and business feeling
• 9% technical skills
• 1% administration / methodology - current demands on project managers are insufficient

Finding suitable candidates for project management is a problem:

• 80% of companies have trouble finding suitable candidates for the vacant positions
  • 23% of top-managers ignore this situation
• The project manager is showing characteristics suitable for a CEO
  • It is a problem to keep them (they are ambitious)
  • It is necessary to modify salaries and career growth so that smart people do not leave the company - eg. a new senior management position is created CPO (Chief Project Officer)