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Thursday, March 13, 2003
 
Notes on Obsolete Theory
People have written me in the last two weeks asking about my comments on Lauri Koskela's and Greg Howell's paper The Underlying Theory of Project Management is Obsolete. This is the paper they wrote and presented at the PMI 2002 Research Conference. Back in October I made a series of postings on the subject. I compiled those postings into a paper Notes on The Underlying Theory of Project Management is Obsolete.

People have also wondered do I say the PMI is obsolete? Absolutely not! The organization continues to attract project management practitioners for the educational opportunities and the professional affiliation.

Enjoy the paper. I made a PDF file for you as well.

 
Project Firms Need Radical Change
I've been thinking about Mark Zweig's ZweigWhite presentation at Construction Summit 2003 that I called platitudes in an earlier posting. First the definition of platitude from Merriam Webster Online
  1. the quality or state of being dull or insipid
  2. a banal, trite, or stale remark
I mis spoke. The recommendations made were quite good (IMO). However, when I did a small poll of participants, they listened to the recommendations as platitudes. When asked, they all said they would not be taking action. I'm now wondering...why?

Here are some highlights from the presentation:

  • There's a crisis in confidence in the industry characterized by flat revenues and reduced profits.
  • Money is cheap; more industry consolidation is coming; more firms are for sale & there are fewer buyers.
  • Unbridled growth will not continue.
Radical changes are required in
  1. how you do business planning & the importance placed on it
    • All employees must have input & access
    • Plan is broad & philosophical AND practical & implementable
    • No bullsh*t -- simple is better
  2. information tracked & how it's shared
    • More is not better
    • Information geared to heading off problems
    • Continuous trend analysis
  3. how you market & sell
    • It's all about market sectors
    • Build your brand
    • Teach everyone in the business to close business
  4. compensating & connecting people to the enterprise
    • Widespread ownership (numerous firms present were employee-owned)
    • Everyone connected to company profits
    • Less segregation; less perks
  5. information technology
    • All investment decisions can't be cost-justified
    • It's all about communication
    • Make it easy to support people
  6. leadership & management
    • Give up on the notion of the infallibility of leaders; false idols
    • Vision must be articulated by leaders
    • Show confidence in the firm
(Remember this is advice to the architectural, engineering, and construction industry.)

So let's say there's something for everyone on the list. Let's also say that the people in the room were at the top tier of their firms. They are in a position to take action. And like me, participants were taking good notes. What gets in the way of taking action?

Is it resignation? Is there just already so much that needs their attention that they can't see their way to initiating one (or two) more actions? Or might it be confidence? Perhaps the actions they've taken in the past have not been well-received.

I don't think it's any of that. Consider this...there's so much inertia in the market, in the industry, and in the company that the maybe above actions don't appear to make a difference. Leaders look for ways to guide (steer) their businesses. Maybe that's the real issue. Read the recommendations again. The recommendations don't have steering qualities.

Mark Zweig is saying manage the business from the bottom up. When he said radical change he meant it. He just didn't share what was behind his prescriptions.

Wednesday, March 12, 2003
 
Report from Construction Summit 2003 -- Day Three
The Construction Summit finished like it started. There was a hodge-podge of presentations. The one that kept my attention was on architectural engineering quality assurance. The presenter was from Skidmore, Owings, and Merrill, SOM. (Skip the website; it is an annoying flash animation that is very difficult to navigate). The approach recommended harkens of the days of old fashioned after-the-fact quality control. Once the drawings or specifications have been completed then a group of experts check the work. I used to think that some QA was better than none, but no longer. Architectural engineering can learn from the agile software community. Pair programming could be a very useful model for pair engineering and pair architecture. It's bound to improve the quality of the work.

Tuesday, March 11, 2003
 
Report from Construction Summit 2003 -- Day Two
The construction summit opened with the first of two presentations on the Dig Big . Dan McNichol, author of The Big Dig, facilitated the presentation with Dan Wood, Federal Highway Adminsitration. While the project is notorious for cost overruns, it will become known for its technical achievements, community responsiveness, and partnership among project participants.

Take note of this bigger than big project:

  • Adjusted for inflation the Big Dig is 30 times the cost of the Hoover Dam.
  • Twice the cost of the Panama Canal
  • At the peak of construction for 3 1/2 years 5,000 workers spending $3.5 million/day.
  • Funded from over 15 sources involving over 200 contractors
What more can we say. Take a look at the book. It is as beautiful as it is informing.

Lean Construction -- Challenging Current Project Management

As moderator it's difficult for me to say how well the panel came off. I can say the panelists did a wonderful job of answering my questions and those from the audience. They offered these lessons:

  • Like any organization, initiative needs support. Perhaps it takes keeping the torch on the fuse, or maybe just remember it's difficult starting a grass fire after a rain.
  • Be clear for the sake of what you are pursuing a lean approach. What are the issues that will make you more competitive?
  • Support people while they are learning.
  • Top management must be enrolled. Don't do anything else before getting their enrollment.
  • Place value on your time as professionals. It allows you to assess progress you make delivering value on your projects.
  • Keep the emphasis on the conversation of planning rather than the tools or artifacts of planning, e.g. schedules.
Let's see what happens. Will interest and good advice result in new users of lean approaches, or did we just entertain?

There were two other presentations. Tod Rittenhouse, Weidinger Associates, briefed us on how buildings are being designed to withstand the threats of terror. Great presentation by one of the leaders in the field.

The final presentation was by Mark Zweig an authority on construction industry management practices. While he exhorted us with platitudes of good corporate management practices, I can't say he was wrong. In short, he advised to take care of your customers, take care of your employees, invest in systems to separate you from your competitors, and share information throughout your organization. Good advice, except people are likely to walk away without taking action. That is a shame.

More tomorrow!

Sunday, March 09, 2003
 
Report from Construction Summit 2003 -- Day One
Construction Summit 2003 has begun. It's been raining here in Jacksonville, FL. (Read: no golf...yet.)

The program today was dominated by four sessions on using the internet for managing construction projects. The presentations were basic. Here's the presenters' best advice:

  • Use COTS (commercial off-the-self) applications. Construction firms are not software developers. Let the experts do what they do best.
  • Implement systems with an eye towards the specialty contractors. They represent 1/2 of all the players yet only 25% of them use email regularly in their business.
  • This industry is driven by risk. The usual practice is risk shifting rather than risk sharing.
  • Implement systems for business results. Digital technology will lead to reductions in cycle time and costs. Sharing data is the principal source of these improvements.
The presenters were unusually supportive of web-based solutions. While talking extensively of shared data they neglected to speak about how the data would be used or the day-to-day practical issues of project coordination and bottoms-up planning.

Monday's agenda is more exciting: two presentations on the Big Dig, designing terror-resistant structures, and lean construction. Stay tuned.

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