Strategy Management for Project Managers (Part 2) Article

Objective signs of underperformance: lack of metrics, poor documentation, unawareness of project status

Objective signs of underperformance can be identified through various indicators such as lack of metrics, poor documentation, and unawareness of project status. These signs can be observed in both operational teams and project-based teams within an organization.

In operational teams, the presence of well-defined metrics and standards is crucial to measure performance. A low level of maturity in a team implies that there are few metrics and standards in place to establish a baseline for evaluating performance. This lack of measurement makes it difficult to determine how well the team is performing. On the other hand, a higher performing team indicates a higher level of maturity, where metrics and standards have been well-defined. These teams proactively evaluate their performance against benchmarks and have regular ongoing discussions to ensure transparency, measurability, and accountability.

Furthermore, in operational teams, the availability of data and measurements is essential. Sales operations, marketing operations, and distribution operations rely on constantly produced metrics to assess performance. If the leaders of these areas lack knowledge of their data, it is a clear objective sign that the team is underperforming. Without access to data, it becomes challenging to track turnaround times, sales funnels, conversions of customers, and other key performance indicators.

Another objective sign of underperformance in operational teams is poor documentation. Operations involve repeatable processes that are performed regularly. However, if there is little documentation regarding these processes, it becomes difficult to understand what the metrics should be or what the standard process is for achieving desired outcomes. Lack of documentation hinders the team's ability to evaluate their performance accurately and identify areas for improvement.

In project-based teams, underperformance can be identified through a lack of awareness of project status. Project managers, PMO leaders, business leaders, or IT professionals should have a comprehensive understanding of the progress and status of their projects. If they are unable to provide immediate updates on project performance, it indicates a lack of awareness and potential underperformance. This lack of awareness can be detrimental to the success of the project and may result in delays or failure to meet project objectives.

Evaluating performance in project-based teams is more complex compared to operational teams. Projects involve multiple priorities, and there are numerous variables that can impact team performance. It becomes challenging to determine whether underperformance is a result of individual team members' lack of performance or if it is due to other factors such as competing priorities or challenging project scope. To address this, project management requires a higher level of standardization, rigor, and maturity in managing projects. This allows for the isolation of performance issues and the identification of areas that require improvement.

In conclusion, objective signs of underperformance can be identified through the lack of metrics, poor documentation, and unawareness of project status. These signs can be observed in both operational teams and project-based teams. To address underperformance, organizations should prioritize the establishment of clear metrics and standards, improve documentation practices, and ensure that team members are aware of project progress. By addressing these objective signs, organizations can enhance team performance, achieve desired outcomes, and drive success in the future of work.

Leadership and team performance

Leadership plays a crucial role in team performance. A team's success or failure can often be attributed to the leadership provided by managers and executives. This is evident in the podcast transcript, where various examples illustrate how leadership can impact team performance.

In the first example, the underperformance of a scrum team is attributed to the actions of the VP of the engineering team. The VP's constant pulling of key people to solve production issues disrupts the team's velocity and leads to inconsistent performance. Despite initially assuming that there was something wrong with the team, it becomes clear that the real issue lies with the boss. This example highlights the importance of leadership in providing support and stability to teams, allowing them to perform at their best.

The second example focuses on the pressure faced by scrum teams to increase their velocity. The product owners blame the engineering leads, who in turn blame the QA team. The scrum master is caught in the middle, trying to identify the root cause of the issues. Eventually, it is determined that a combination of factors, including process definition, role clarity, and accountability, contribute to the team's struggles. This example demonstrates the need for effective leadership in setting clear expectations, defining roles and responsibilities, and holding team members accountable for their performance.

The third example highlights the impact of an underperforming executive on their team. The executive, who is relatively new and unfamiliar with the industry, creates confusion and chaos among their direct reports and their subordinates. This lack of clarity and direction hinders the team's ability to perform effectively. Eventually, the executive's departure is necessary to address the ongoing issues. This example emphasizes the importance of leadership in providing guidance, clear communication, and support to their teams.

Additionally, the podcast touches on the challenges that leaders face when transitioning from traditional waterfall methodologies to agile approaches like Scrum. The executive in the fourth example struggles to adapt to the self-organizing nature of agile teams and the lack of clear commitments on deliverables. This mismatch in expectations creates tension and hampers the team's ability to perform. It highlights the need for leaders to be open-minded, adaptable, and patient when implementing new methodologies and supporting their teams through the transition.

Overall, the examples in the podcast transcript emphasize the significant role that leadership plays in team performance. Effective leaders provide support, stability, clear expectations, and guidance to their teams. They foster a strategic mindset by aligning team goals with organizational objectives and creating an environment that encourages collaboration, innovation, and continuous improvement. By prioritizing leadership development and providing the necessary resources and support, organizations can enhance team performance and achieve their desired outcomes.

Trust empowers strategic thinking

One key theme that emerges from the podcast is the importance of trust in empowering strategic thinking. The speaker highlights that trust is the foundation for empowering teams and individual contributors to think strategically. Trust allows leaders to give their teams goals and objectives without providing specific directions on how to achieve them. This freedom allows teams to develop their own ideas, approaches, and strategies to achieve goals.

The speaker also emphasizes the need for leaders to give their teams the freedom to make mistakes and fail. By trusting their teams to learn and grow from these mistakes, leaders enable team members to develop their own problem-solving skills and think independently. This approach not only empowers teams but also helps them develop the confidence to contribute at higher levels within the organization.

However, the speaker acknowledges that many companies undermine their efforts to foster strategic thinking by punishing employees for making mistakes. This creates a fear of taking risks and stifles innovation. To truly empower strategic thinking, leaders must be willing to trust their teams and support them even when outcomes may not be ideal. By praising teams for taking risks, even if they fail, leaders can create a culture that encourages experimentation and learning.

Another important point raised in the podcast is the need for leaders to focus on their employees' strengths rather than weaknesses. The speaker suggests that leaders often spend too much time coaching and mentoring employees on their weaknesses, rather than recognizing and developing their strengths. By identifying and nurturing employees' strengths, leaders can help them become even more effective and contribute more to the organization.

In addition to trust and focusing on strengths, the podcast also highlights the importance of processes that cascade strategy throughout the organization. This includes mechanisms such as MBOs (Management by Objectives) and OKRs (Objectives and Key Results) that help employees understand how their day-to-day work aligns with the overall organizational strategy. By providing employees with a clear link between their work and the strategic objectives of the organization, leaders can foster a strategic mindset and empower employees to think strategically in their roles.

In conclusion, trust plays a crucial role in empowering strategic thinking within organizations. Leaders who trust their teams and provide them with the freedom to think, make mistakes, and develop their own strategies create an environment that fosters innovation, collaboration, and continuous improvement. By focusing on employees' strengths, cascading strategy throughout the organization, and providing the necessary support and resources, leaders can empower their teams to think strategically and contribute to the overall success of the organization.

Future of work: Projects dominate

The future of work is rapidly evolving, with projects becoming increasingly dominant in the workplace. In the early 1900s, operations were the primary focus of work, accounting for about 90% of employees' time. However, as new technologies and innovations emerged throughout the 20th century, the balance shifted. By 2020, operations and project-based work were split evenly, with employees spending about half of their time on each.

This shift towards project-based work is expected to continue and accelerate in the coming years. The rise of artificial intelligence (AI) and automation is set to automate many of the repetitive tasks involved in running a business. As a result, the time spent on operational work is projected to decrease to around 20-25% within the next decade, and potentially even lower in the long run.

Automation and AI are well-suited for operational tasks because they are often repetitive and predictable. However, projects involve implementing change and are unique in nature, making them more challenging for AI to fully replace. Therefore, companies will increasingly focus on change management, innovation, and project delivery as their human resources shift away from operational tasks.

This shift towards project-based work raises an important concern. While companies have traditionally placed more emphasis on operational leadership, project delivery leaders have often been overlooked. Project delivery has been managed as a tactical function, with limited representation in the C-suite or even at the VP level. However, as projects become a larger part of the business, the absence of a dedicated delivery-focused leader poses a significant challenge for organizations.

The role of a Chief Delivery Officer (CDO) may emerge as a counterpart to the Chief Operational Officer (COO). Just as the COO oversees operational aspects, the CDO would be responsible for ensuring successful project delivery and value creation. This shift would require heads of business units and other functions to become change agents, dedicating more time to strategic thinking and driving change throughout the organization.

In conclusion, the future of work is increasingly centered around projects. With the rise of automation and AI, operational tasks will become more streamlined and automated, allowing employees to focus on project-based work. However, organizations must also recognize the need for dedicated project delivery leaders to ensure successful implementation and value creation. By embracing change management and empowering strategic thinking, companies can adapt to the evolving nature of work and thrive in the future.

Executives need help with project delivery

Executives need help with project delivery. This is a key takeaway from a podcast transcript that explores the challenges and opportunities that executives face in effectively executing and delivering projects. The podcast highlights the assumption that executives, particularly CEOs, often believe that their expertise in their specific functional area translates into the ability to plan and execute projects optimally. However, the complexity of project delivery and the high failure rate of projects indicate that something is not working effectively.

One of the main challenges identified in the podcast is that executives are often overloaded with responsibilities. They are expected not only to manage their functional area but also to be masters of planning and execution. This expectation can be overwhelming and may lead to subpar project delivery. To address this issue, the podcast suggests the importance of having dedicated project delivery leaders who can focus on value delivery and the planning and execution of projects. This partnership between senior leaders and project delivery leaders can lead to better collaboration and more successful project outcomes.

Another challenge discussed in the podcast is the way companies are organized. Many organizations are structured based on operational functions, such as sales, product, and engineering. While this structure may be efficient for running the business, it may not be conducive to successful project delivery. The podcast suggests that companies need to start thinking across organizational boundaries and consider how different parts of the business work together to achieve project success. This shift in thinking can help break down silos and foster collaboration across departments.

The rise of automation and AI also presents both challenges and opportunities for executives and project delivery. On one hand, AI can free up employees from repetitive tasks, allowing them to focus on more strategic and value-added work. This shift in responsibilities requires a change in mindset and a focus on strategic thinking and asking the right questions. Project managers, for example, may need to transition from managing tasks and activities to becoming leaders in delivery and ensuring that teams are tracking towards business outcomes.

However, the podcast also highlights the potential short-sightedness of solely focusing on cost savings through automation and AI. While reducing headcount may result in short-term cost savings, it may hinder a company's ability to compete in the long run. Companies that retain employees and leverage their capacity for strategic activities will have a competitive advantage over those that solely rely on automation. It is crucial for companies to recognize the value of their existing workforce and invest in training and upskilling to ensure future success.

In conclusion, the future of work is increasingly centered around projects. With the rise of automation and AI, operational tasks will become more streamlined and automated, allowing employees to focus on project-based work. However, organizations must also recognize the need for dedicated project delivery leaders to ensure successful implementation and value creation. By embracing change management and empowering strategic thinking, companies can adapt to the evolving nature of work and thrive in the future.

Operations automation reduces differentiation, projects become more impactful

Operations automation, driven by advancements in technology such as artificial intelligence (AI), is revolutionizing the way businesses operate. This automation has the potential to significantly reduce differentiation across companies in terms of operational capabilities. Previously, companies could differentiate themselves based on the unique talents and experiences of their employees, allowing for variations in how operational functions were performed. However, with the widespread adoption of AI and similar technologies, operations are becoming more standardized and optimized.

As mentioned in the podcast, when everyone is using AI and similar technologies to automate operations, companies will perform at a similar level of operational performance. This means that the traditional differentiators in terms of operational capabilities will diminish. The focus will shift towards project-based work, where human involvement and various factors contribute to the successful delivery of projects.

Projects will become even more impactful to the bottom line and competitive differentiation across companies. The ability to execute change effectively will become the new competitive advantage. While operations automation may level the playing field in terms of operational capabilities, it opens up opportunities for companies to differentiate themselves through successful project delivery.

However, it is crucial for organizations to ensure that their project management offices (PMOs) are aligned with their overall strategy. The podcast highlights a study by PMI that revealed only 41% of organizations felt their enterprise PMOs were aligned with their strategy. This disconnect between strategy and project execution can hinder the successful delivery of projects and undermine the overall organizational goals.

To bridge this gap, organizations need to involve PMOs in the strategy formation process. PMO leaders should be included at the VP level and be part of the discussions around strategy. By including PMOs in these strategic conversations, companies can ensure that the projects being undertaken align with the overall strategic objectives.

Furthermore, organizations should adopt a hierarchical approach to project delivery, with initiatives, programs, and projects all aligned to support the strategic objectives. This approach allows for a clear roll-up of work and ensures that projects are executed in the context of the overall strategy. By considering the full context of what is needed to support the strategies, organizations can ensure that projects are impactful and contribute to the overall success of the company.

In conclusion, operations automation driven by AI and similar technologies will reduce differentiation in operational capabilities across companies. However, this opens up opportunities for organizations to differentiate themselves through successful project delivery. Projects will become more impactful to the bottom line and competitive differentiation than ever before. To capitalize on this, organizations need to align their PMOs with their strategy and adopt a hierarchical approach to project delivery. By embracing change management and empowering strategic thinking, companies can navigate the evolving landscape of work and thrive in the future.

Context is key for successful project implementation

The podcast transcript emphasizes the importance of understanding the context of a project for successful implementation. The speakers highlight that teams cannot simply be expected to deliver a specific outcome without understanding the business outcomes or strategy behind it. Without this understanding, teams may be misguided or unable to self-organize effectively.

The speakers stress the need for teams to be able to recognize when a project is not achieving its intended goals and make recommendations or suggestions for adjustments. They advocate for a continuous process of inspecting and adapting throughout the project, rather than waiting until the end to realize any disconnects or failures.

The podcast also discusses the evolving nature of project management and the need for organizations to address gaps in delivery. As operations continue to automate, successful project delivery becomes even more critical to a company's success. The speakers suggest that organizations must change their approach to project management and align it with their overall strategy. They propose the concept of value delivery organizations instead of traditional project management offices (PMOs) to reinforce the strategic nature of project management.

In conclusion, the podcast highlights the importance of context in project implementation. Without understanding the business outcomes and strategy behind a project, teams may struggle to deliver the desired results. By embracing change management and empowering strategic thinking, organizations can navigate the evolving landscape of work and thrive in the future. Successful project delivery will become a key differentiator for companies, and aligning project management with strategy will be essential for success.

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