Project Success - "Projects are like Chalk and Cheese"

This is the third part in my thoughts on Project Success:

• In part 1, I posed the question "How do you measure Project Success?"
• In Part 2, I explored Project Success from different perspectives and provided some links to sources that explored factors in project success and to improve the chance of success beyond serendipity.

The key points from the first two parts are:

• Project Success cannot be judged by the triple constraint.
• The triple constraint of time cost and scope only address the project efficiency dimension of success.x
• Different projects have different success measures depending on your point of view as a stakeholder
• Shenhar and Dvir identified five dimensions of success which could be used as a model to identify the success criteria for a project
• Success criteria has to be built into the project from the first step and then reflected in its plan, demonstrating how the project will deliver the outcome

I believe this evidence also points to the need for an organisation to develop its PM reward system to be based on more than just the traditional triple constraint. 

"Like Chalk and Cheese" is a saying we have in my family, it means things look like they should be the same, but underneath they are totally different.

In this post I want to explore how the organisation can increase the chances of success by understanding the "Chalk and Cheese" type of project that is being initiated, and how to adjust the project strategy, project management approach and styles to impact its chance of success.

I am pretty sure I can make this next statement. 

We know that different project types have different chances of success. We instinctively understand that more complexity, more external stakeholder increase the risk of project failure.

NTCP Framework

Based on solid research, Shenhar and Dvir in their book Reinventing Project Management have developed a Diamond Framework to help classify projects. 

NTCP Dimensions

The purpose of the NTCP framework is to help organisations and management gain a common understanding the inherent uncertainties, complexities and other variables such as time. Using the framework to assess projects and gain a common understanding of those inherent risks to success enables the organisation to make decisions on the project and consider what project management style needs to be used in order to increase the chances of success.

The four dimensions of uncertainty in the framework are defined as:

• Novelty: How new is the product of this project to your organisation or market and how clearly you can define the requirements and customer needs. 
• Technology: How the technological uncertainty impacts the design, testing and communications on the product?
• Complexity: How the scope of the project affects the project organisation and formality of project management?
• Pace: How the level of urgency will affect the project and the need for autonomy in decision making in the project.

Using the evidence and guidance in the book the authors suggest (convincingly) that different types of projects, require different project management styles. This combined with greater understanding of the dimensions of success to increase the likelihood of project success.

Novelty

This dimension represents the uncertainty of the project’s goal, the market, or both. It has three areas of uncertainty that lead to decisions being made on management decisions in planning and the marketing / release / transition strategies: 

• Reliability of marketing research / understanding of customer requirements
• The time it takes to define and freeze product requirements, and
•  Specific marketing/transition/change management strategies for the product.

The framework has three levels or types of novelty defined as follows:

• Derivative: Products are extensions and improvement of existing products. (Modifications, extensions and improvements)
•  Platform: Products are new generations of existing products lines, they form the basis for new versions of the product (i.e. a new car model or aircraft).
• Breakthrough: The products of these projects are new-to-the-world.  They transform a new concept or a new idea into a new product that customers have never seen before (i.e. the first iPad/iPhone).

Technology

It is probably more precise to describe this dimension as representing the project’s level of technological uncertainty that impacts on project approach and style for:

• Design, testing, communication and interaction, 
• timing of design freeze, and needed design cycles.
• Defines the technical competence needed by the project team

Four levels of uncertainty

• Low-tech: Projects rely on existing and well-established technologies. (Construction Projects).
• Medium-tech: Projects use mainly existing or base technologies but incorporate a new technology or new feature that did not exist on previous products. (Appliances, automobiles, or heavy equipment).
• High-tech: Most of the technologies employed are new to the firm but already exist and are available at project initiation.  (Computer and defense development).
• Super-high-tech: Based on new technologies that do not exist at project initiation.  The mission is clear, the solution is not and new technologies must be developed during the project. (Moon-landing program).

Complexity

Complexity of the product, the task, and the project organization. It is related to system scope and affects the project organization, the formality of project management, and the level of skills required by the project team including the project manager.

There are three levels of complexity defined:

• Assembly: Projects involve creating a collection of elements, components, and modules combined into a single unit performing a single function. (CD player or coffee machine, building a new organization responsible for single function, i.e. payroll).
• System: Projects involve a complex collection of interactive elements and subsystems, jointly performing multiple functions to meet a specific operational need.  (Cars, computers, buildings, or an entire business).
• Array: Projects deals with a large, widely dispersed collection of subsystems that function together to achieve a common purpose, system of systems or super-systems.  (National communication networks, a mass transit infrastructure or regional power distribution networks, or an entire corporation).

Pace

We all know how the speed at which the project needs to execute plays a major role in its success. The Urgency of the project, speaks to how much time there is to complete the job and what happens if time goals are not met.

Pace impacts the autonomy of the project team, the bureaucracy, the speed of decision making, and the intensity of the top management involvement.

There are four levels of pace defined:

• Regular: Time is not critical to immediate organizational success.
• Fast/competitive: Projects are typically conceived to address market opportunities, create a strategic positioning, or form new business lines.
• Time-critical: Projects must be completed by a specific date, which is constrained by a definitive event or a window of opportunity.  Missing the deadline means project failure.
• Blitz: These are critical projects, the most urgent, time-critical.  Solving the crisis as fast as possible is the criterion for success.

Applying the Framework

This diagram taken from the book starts to provide some thoughts on how you could use the framework to shape the project success criteria, the approach the project will take to develop its products, and the project management style

NTCP Dimensions with high level PM Style guidance

I believe one of the great aids of the using the framework is to share widely with stakeholders to gain a greater common understanding of the nature of the project. 

New Mindset

The use of the NTCP Framework together with Shenhar and Dvir's thinking on what constitutes project success (see previous blog entries) identifies the need for us to develop a new mindset, a new way of thinking to achieve better outcomes. The table below identifies the changes in thinking that will help improve the success of our projects.

NTCP Framework and Adaptive Project Management

The good thing is that this new mindset doesn't replace the traditional project management it is an evolution of it.  We can already see many of the adaptive styles in project management are moving into the mainstream to help deal with the uncertainty. This book with its level of research, provides more guidance on the rationale for adopting those styles.

In the next blog entry I will walk through thoughts on how to apply the NTCP framework as part of a project type assessment to work in Portfolio Management and selecting the project approach / method, project manager and defining contingency etc...

In June my subject matter will be the challenge of implementing Portfolio Management.