Although in this column we have typically focused on training at the execution level, that is, at the level of the folks who are out there doing the work, a new report from ESI International suggests a neglected segment of the work force: project management and the need to take a look at various aspects of job procurement and execution and subcontractors and vendor management.
ESI’s bailiwick is just that, project management, and each year it issues a report on evolving trends in this area. This year’s message is that project management is changing, and the role of project manager with it. The advice for top-level management is to be aware of these changes so companies can adapt and provide employees the training and development needed to get the job done.
From the report’s list of 10 trends for 2013, we selected those most relevant to the construction industry. Read on for: a) how these may apply to your organization, b) what to look for when you bid a job, and c) monitoring the project management climate among your vendors and subcontractors.
Project management trends to keep an eye on include these:
- Project management is not just for project managers anymore.
- Organizations should focus on strong project leaders with hard skills that include communications, negotiations, organizational change management, and customer relationships.
- Large projects pose unique challenges that are increasingly difficult to overcome, given the current climate of downsizing and outsourcing. These problems will be demonstrated in both contracting and contractor organizations.
- Vendor management practices should be a top project management priority and near the top of the list of skills represented on the project management team.
- In a climate where experts from other aspects of an organization are likely to be called upon to integrate into the project management process, organizations will need to focus on leadership as a major project management skill.
One of the report’s most interesting and far-reaching conclusions is that an important key to improving project management will be to focus on the process of management. This approach switches the emphasis away from the goal line, and how quickly and cost effectively one can get there, to processes and procedures and how they affect an organization’s bottom line. “It is clear,” says ESI International Executive Vice President J. Leroy Ward, “that it is no longer possible to just hire project managers and expect results. Project management must be an integrated process.” This process will be made necessary, says Ward, by the number of large projects companies will be biding on, and because these projects pose more complex and integrated challenges, which in turn are made more difficult in the marketplace as it currently exists. “You will get one chance, and that’s it.”
Size does matter, and when it comes to large projects, especially those beyond the scope of what your organization is typically experienced in dealing with, “the impact and interplay of downsizing, complexity, and outsourcing mean “˜one, two, three strikes and you’re out’.”
On the client side, outsourcing and downsizing means that more and more of the management of large-scale projects in construction and transportation will have to include personnel equipped with levels of technical experience and expertise necessary to interact with contractors and vendors. The challenge will be: 1) bringing these people up to speed on principles of project management, and 2) pulling them together under direct and responsible leadership. Hence, the emphasis on developing a workable process.
From contractors, subcontractors, and vendors, this means you will likely be dealing with personnel who are much more knowledgeable about the elements of a project than in the past-a trend the report suggests is a likely reaction to the design/build methodology that moved in to fill the void created by outsourcing, with the contractor rather than the client calling the shots. This dynamic will likely be most evident in areas that are currently seeing expansion, such as oil-and-gas exploration, major weapons systems development, and large transportation initiatives. As the report surmises, “Many of these projects include thousands of people as well as impressive levels of technical complexity that few companies are successful in managing.”
Another interesting trend identified in the report is the current shortage of qualified project managers. The researchers conclude that there aren’t enough project managers to go around who have the skills to be successful in today’s market. Organizations adjusting to budget cuts and loss of personnel are expanding the project manager role outward in their organizations, hoping that project management expertise in one arena (human resources, marketing, legal) will transfer over. Predictably this is an area in which management should invest some particular time. It’s clear if you’re going to be pulling in expertise from nontraditional areas, some sort of training and employee development will be required, including a review of the general elements of project management and your particular organization’s approach and goals. Another area that may need review is that of the principles of information integration and elements of group decision-making. Challenges are likely to be the most pronounced among personnel who represent high levels of technical expertise and are not used to collaborative interaction.
The report suggests that vendor management will continue to be a major challenge in today’s marketplace, given that with the shortage of actual project managers, organizations may lack the in-house skills to evaluate vendor quality and performance. Problems that are likely to occur include: contract scope creep, poor quality in delivery of goods and services, late or botched deadlines, and blown budgets. The obvious conclusion is that many issues related to difficulties in vendor management feed back into how contract requirements are written. Unclear, incomplete, and inaccurate requirements not only create uncertainty and confusion but also open the door for abuse. Abstract, incomplete, or confusing requirements make it next to impossible to hold your vendors or subcontractors accountable. Technical or product experts are not the team members who should be writing contracts, a job better that is better approached by operations with input from legal.
Aside from operating under an incorrect, incomplete, or unspecific contract, another predictable mistake companies make is the one of assigning people with the wrong skill sets to work with contractors and vendors. This will result in problems not only for the client/customer, but also for the contractor who commits to getting the job done. It is an important factor that should be identified and addressed in the initial stage of contract negotiations. In this case, effective project management means selecting expertise from other areas of your operation to consult on contract requirements and managing vendor relationships.
To adjust to these changing trends, management should look for innovation in project management-new approaches to old problems-and should hold the project management team responsible for demonstrating its value to the larger organization. Gone are the days when working by rote or a template was the name of the game. The study calls for project management audits that identify areas where the project management process can be accelerated to respond to changing conditions. Training for individuals expected to participate or interact with project management teams should include an awareness of how project management skills contribute to the overall performance of the organization, identification of key business metrics, and evaluating performance against those metrics, an approach which Ward describes as looking at project management from the standpoint of “What have you done for me lately?”
Another must-do is for management to provide members of the project management team with the resources and authority they need to do their job. ESI’s research has established that the average life span of a project management team is four years. Lack of training, management’s failure to adopt innovative processes, and unrealistic expectations are reasons for many project management failures. In a marketplace where project management means pulling team members from nontraditional areas of an organization, leadership skills are critical. The report suggests that where leadership is not innately forthcoming, training should be initiated, and that it should be in the specifics of project and program leadership, not more accessible generic leadership training.
