SECTION 3
ALTERNATIVE PROJECT APPLICATIONS
,
3.2 Reengineering through Project Teams
3.3 The Management of Small Projects
3.4 Self-Managed Production Teams
3.6 Managing Change by Project Management
3.1 ALTERNATIVE PROJECT TEAMS
3.1.1 Introduction
Project teams are both traditional and nontraditional. |
Alternative teams are becoming commonplace as a means to deal with the cross-functional and cross-organizational initiatives that enable the enterprise to deal with change.
The main focus of this Handbook has been to deal with the traditional project teams. In this section a paradigm will be presented that describes the general usage to which nontraditional teams can be put, as well as the areas of organizational effort in which these teams are used.
3.1.2 Characteristics of Traditional Project Teams
A traditional project team is one in which custom and usage has been demonstrated in the past, primarily from the construction and defense industries. These teams can be described in the following way:
• A substantial body of knowledge exists which describes why and how such teams can be utilized.
• Typically these project teams involve the design, development, and construction (production) of physical entities for the enterprise.
• A traditional life cycle is found in these projects.
• Substantial financial, human, and other resources have to be marshaled for the conduct of these projects.
• Construction projects are the best example of these traditional projects.
• The use of these teams has evolved from an early beginning throughout history, even though the theory of principles and processes were developed early in the 1950s.
• When people think of a team there has been a tendency to think only of project teams. But that perception is changing.
3.1.3 Characteristics of Nontraditional Project Teams
A nontraditional team has many of the characteristics of the traditional project teams. There are, however, some singular characteristics of these teams:
• The organizational element with which these teams deal is already in existence, usually in the form of organizational processes rather than physical entities.
• The teams are directed to improve the efficiency and effectiveness of an organizational process. The work of the team begins immediately in dealing with a problem and opportunity.
• Although “hardware” is involved, the teams deal principally with the identification and use of resources in meeting organizational objectives and goals.
• The deliverables of these teams usually are reports which outline recommendations for the improvement of the use of resources.
• The teams are used in many diverse enterprise purposes.
• The teams have direct vital links with the design and execution of operational and strategic initiatives in the enterprise.
• Many times the recommendations of these teams bring about significant changes in the individual and collective roles carried out by the members of the enterprise.
• The teams, and the results of their use, can have a major impact on the culture of the enterprise.
• These nontraditional teams deal with, and cause changes in the way the enterprise uses resources to support mission, objectives, and goals.
TABLE 3.1 Nontraditional Teams
Market assessment |
Competitive assessment |
Organizational strengths and weaknesses |
Benchmarking |
Establish performance standards |
Vision quest |
Stakeholder evaluation |
Market research |
Product-service-process development |
Business process reengineering |
Crisis management |
Self-managed production initiatives |
Resolution of organizational issues |
Quality improvement |
Audit processes |
Senior-level decision making |
New business development initiatives |
3.1.4 The Work of Nontraditional Teams
The work carried out by these teams is varied and important in keeping the enterprise’s processes efficient and timely. This work is summarized in Table 3.1 and is described below:
Market assessment. Discernment and development of the likely changes in the enterprise’s market.
Competitive assessment. Examining the strengths, weaknesses, and probable strategies of the competition to be melded into the organization’s competitive strategies.
Organizational strengths and weaknesses. Discovering and evaluating the competencies of the organization vis-à-vis the competition to include recommended strategies coming out of the analysis.
Benchmarking. Review of the performance of the “best in the industry” organizations to include what operational and strategic abilities enable them to perform so well.
Establish performance standards. Identification, development, and dissemination of the performance criteria by which the organization’s ability to produce results is improved.
Vision quest. Discernment of the general direction of the future of the organization in terms of what course to follow to reach a desired end.
Stakeholder evaluation. Find out who the stakeholders are and what their likely interest and capacity is to influence the organization’s competency.
Market research. Assessment of the possible and probable opportunities for improved or new products and services for the organization.
Product-Service-Process development. The simultaneous development of product, service, and organizational process initiatives for the organization to support its objectives and mission.
Business process reengineering. Used to bring about a fundamental rethinking and radical redesign of organizational processes.
Crises management. Teams that are appointed and trained to deal with real and potential organization crises.
Self-managed production initiatives. Using teams to improve manufacturing (production) operations.
Resolution of organizational issues. Ad hoc teams that are used to solve organizational problems or opportunities.
Quality improvement. Use of teams to improve and integrate quality improvements in products, services, and processes.
Audit processes. Teams that evaluate the competency of organizations, programs, projects, and organizational processes.
Senior-level decision making. Using teams of senior executives to enhance the synergies in the development and execution of organizational strategies.
New business development initiatives. Teams that are used to explore the design and development of new business ventures for the organization.
From the foregoing list, it should be clear that teams are an organizational design strategy that can deal with a wide variety of operational and strategic initiatives, and they have been successful. Fortune magazine noted that “The ability to organize employees in innovative and flexible ways and the enthusiasm with which so many American companies have deployed self-managing teams is why U.S. industry is looking so competitive.” (Rahuyl Jacob, “Corporate Reputations,” Fortune, March 6, 1995, pp. 54–64.)
3.1.5 The Personal Impact of Teams
Careers are being impacted by the growing use of both traditional and nontraditional teams. There are enhanced opportunities for more people to try their hand at management and leadership positions. People who serve on these teams will be expected to bring extraordinary knowledge, skills, and attitudes to the team, and to the organization such as:
• Have ability to work with diverse groups of stakeholders
• Have sufficient technical skills to work on the team and gain experience in the application of their skills to dealing with change in the organization
• Gain understanding of what counts for success in the organization, to include a better understanding of what is needed to be “profitable”
• Ability to leverage their knowledge, skills, and attitudes through enhanced opportunities for communication challenges, networking, building alliances, and become a contributing team member
• Recognize that being successful in a career depends less on organizational position, and more on the competencies brought to the organization.
3.1.6 Summary
In this section, the use of nontraditional project teams has been explored and examined, particularly examining the alternative uses to which teams can be put. A wide variety of organizational needs were presented along with a recommendation of how teams could help in the management of these needs. The section closed with an explanation of what service on teams can do for the career of individuals.
3.2 REENGINEERING THROUGH PROJECT TEAMS
3.2.1 Introduction
This section examines the basics of reengineering defined as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in organizational performance such as cost, quality, service, and speed. (Michael Hammer and James Champy, Reengineering the Corporation: A Manifesto for Business Revolution, Harper Business, New York, 1993, pp. 31–32.)
3.2.2 Background
Although the popularity of reengineering teams, per se, has diminished since its inception, the idea has become rooted in the theory and practice of management.
The use of a reengineering team usually centers around key organizational processes of the organization:
• Asking basic questions such as “Why do we do what we do?” and “Why do we do it the way we do?”
• Disregarding existing organizational designs, strategies, policies, and protocols and inventing new ways of doing work.
• Concentrating on organizational processes which are a collection of activities that takes input and creates an output that is of value to the organization and its customers. An order entry protocol is an example of an organizational process.
• Achieving dramatic improvements in organizational performance.
Reengineering starts by asking certain basic questions about the organization’s mission, objectives, goals, and strategies, such as the following:
1. What business are we in?
2. Why are we in this business?
3. Why are we working as we do?
4. Are there better ways to do our work?
5. What is the basic organizational documentation that guides the way that we work?
6. What can be changed to bring about enhanced performance in the organization?
7. How can our organization be examined to determine how well our organizational processes are carried out?
3.2.3 The Paradox of Reengineering
When project teams are used as the focus for reengineering strategies, enterprise work can be rearranged or even eliminated. Team members and other members of the enterprise participating in a reengineering initiative can have mixed emotions about the results of such initiative. Their jobs and the jobs of their peer groups may be reassigned or eliminated. Guidelines for dealing with this paradox include the following strategies:
• Keep the people informed about the purpose, process, and potential outcomes of the reengineering initiatives.
• Maximize the participation of the people on the reengineering teams to include both planning and execution phases.
• Ensure that people likely to be displaced or eliminated are provided assistance to deal with such uncertainties in their life.
• Communicate frequently with organization members to include careful listening to their suggestions, problems, gripes, and attitudes concerning the reengineering initiative.
• If possible, benchmark some other organizations that are engaged in reengineering and show how these organizations have fared.
• Tell people the truth, maintain open agendas, share information, and what the likely outcome of the reengineering initiatives could be.
3.2.4 Key Messages of Reengineering
Hammer and Champy have put forth some key messages regarding reengineering:
• Managers need to abandon traditional organizational paradigms, operating policies and procedures, and create new ones centered around the integration of organizational processes to do the job.
• The classical division of labor as a way of breaking work up into small units for assignment to specialists needs to be augmented with analysis of the relevant processes required to create value.
• The traditional, old ways of managing the organization do not work anymore. New paradigms are needed.
• The key to success in the modern organization is how the work processes and the people are aligned.
• Reengineering is a new journey, starting with a new road map.
• Reengineering is not continuous incremental improvement—it is major leaps in improvement.
• Organizational processes are the key to reengineering—traditional organizations focus on tasks, jobs, people, and structures.
• Reengineering requires that the following question be asked continually: “Who are our internal and external customers?”
• Reengineering is a new paradigm that goes beyond the traditional delayering, reorganizing, and flattening organizational strategies that worked in earlier days. (“The Promise of Reengineering,” Fortune, March 5, 1993, pp. 94–97. This is a book review of Michael Hammer and James Champy, Reengineering the Corporation: A Manifesto for Business Revolution, Harper Business, New York, 1993.)
3.2.5 Project Team-Driven Reengineering
Process reengineering is a project-team endeavor. Since reengineering work cuts across the functional elements of the enterprise, and even goes out to other organizations that work with the enterprise, a project team provides an appropriate organizational design to focus on the work of reengineering. Other organization teams can contribute to a successful reengineering activity:
• Project teams to design and build capital equipment and facilities.
• Concurrent engineering teams to provide the means to work through organizational processes and functions in conceptualizing, designing, manufacturing, and marketing goods and services to commercialize improved products and services sooner.
• Benchmarking teams to determine how well the organization performs compared to competitors and “best in the industry” producers.
• Self-managed production teams which can bring about dramatic improvements in the quality and output of products and services.
3.2.6 Reengineering Basics
There are a few basics about the characteristics of reengineering teams:
• Specific and measurable objectives and goals have to be established.
• The team members must be committed to the reengineering initiatives.
• The team membership should be drawn from the key functions involved in the reengineering effort, and should be easy to convene, interact with, and communicate with as a participating body of experts.
• A working philosophy should be present, which establishes how people are expected to interact, how decisions will be made, how analysis will be done, and the expectations for results.
• Authority and responsibility need to be clearly established and understood by all concerned.
3.2.7 Reengineering Life Cycle Phases
A reengineering initiative has several phases in its life cycle. Figure 3.1 suggests a flow of major events in a reengineering project. These events are described more fully later.
FIGURE 3.1 Engineering life cycle flow.
• Set the stage through the development and promulgation of a team plan.
• Make initial investigations into the reengineering targets in the enterprise.
• Develop models which reflect how and why the reengineering is to be carried out.
• Select target reengineering projects such as:
• Order entry procedures
• Product and service development
• Procurement practices
• Engineering and design of capital facilities
• Manufacturing efficiency and effectiveness
• Account receivables
• Inventory practices
• Management of projects
• Materials handling
• Marketing and sales management
• Project management practices
• Develop plans and strategies for the improvement of identified and desired organizational processes.
• Execute the plans and strategies designed to lead to reengineering models in the enterprise.
• Launch the reengineered process for the organization.
• Continually improve the reengineered process.
• Pursue continuous training and indoctrination programs to maintain the effectiveness of the reengineered process.
Reengineering initiatives can have both immediate and subsequent impact on the organization and its stakeholders.
3.2.8 The Trigger Effects of Reengineering
When reengineering is properly carried out there are important factors and forces that are touched off. These include:
• Processes are emphasized and managed.
• Disciplines, functions, and departments become primarily organizations to maintain centers of excellence that provide a focus for operational and strategic processes.
• Single-task jobs disappear and are replaced by multiskilled jobs.
• Training, retraining, and education become more critical and are success factors in improving productivity.
• People become much less dependent on their supervisors and managers; they become empowered and think and act like managers.
• The ability to produce competitive results becomes the basis for the reward system in the organization.
• Organizations have much less hierarchy, are flatter, and are more dependent on team-driven initiatives.
• Values change when people become empowered and work through teams; these values reduce provincialism and territory concerns and place a high value on creativity, innovation, and individual responsibility for results.
• The role of executives changes in part from managers to leaders, who empower, facilitate, coach, teach, and work hard at providing an environment in which people are challenged and see a relationship between their work and the output of the organization.
3.2.9 Summary
In this section, the use of project teams in a reengineering initiatives was described. A strategy for how such initiatives should be conducted, and guidance for how a project team should manage such initiatives was presented. Finally, the “trigger effects” within the organization undergoing reengineering projects was described.
3.3 THE MANAGEMENT OF SMALL PROJECTS
3.3.1 Introduction
In any organization that is in motion today, there are many small projects that are used to cope with the changes that are required to make minor adjustments in products, services, and organizational processes. Most of these small projects center around the changes in organizational processes. Project Management Institute’s A Guide to the Project Management Body of Knowledge (PMBOK® Guide) describes a small project as one whose schedule is less than 30 days. Other characteristics for a small project include a single objective, one principal decision maker, easily defined scope and definition, available funding, and a small team that performs the work on the project. A project is small if it meets the following criteria:
• Three to four months duration.
• Dollar value between $5000 and $50,000.
• Four to five members on the project team.
• The team meets daily or weekly.
• Not more than three to four cost centers involved.
• Manual methods suffice for the project information.
• The project manager is often the primary source.
Some examples of these small projects follow:
• Realignment of production line
• Reengineering of order entity protocol
• Development of information system for marketing function
• Evaluation of procurement practices
• Evaluation of existing practices for customer relationships
• Development of strategy to evaluate vendor protocol
Small projects cut across the warp and woof of an organization. |
In Table 3.2 the basic steps for managing a small project are presented and discussed.
TABLE 3.2 Management of Small Projects—Basic Steps
• Identify the need. |
• Plan the project. |
• Collect information. |
• Analyze data. |
• Develop and evaluate alternatives. |
• Present recommendations. |
3.3.2 Identify the Need
• Identify of the client/sponsor and their perception of the problem.
• Conduct an initial analysis to get an idea of what is involved in the small project.
• Be careful to separate “problems from opportunities.”
• Establish tentative objectives and goals for the project.
• Identify the funds that are available for the project.
• Find the initial documentation that describes the problem or opportunity.
• Separate “problems” from “symptoms.” A symptom is the circumstances of phenomena regarded as an indication or characteristic of a problem. A problem is a question or situation that presents uncertainty in the work of small projects. For example, a cost overrun is a symptom of an underlying problem, such as inadequate monitoring, evaluation and control systems and processes.
3.3.3 Plan the Project
Every small project needs a plan. The essentials of a small project plan are:
• A summary that can be read in a few minutes.
• A list of milestones (goals) identified in such a way that there can be no ambiguity when a goal is achieved.
• A work breakdown structure (WBS) that is sufficiently detailed to provide for the identification of all tasks associated with the project.
• An activity network that shows the sequences of the work packages and how they are related.
• Separate budgets and schedules which are consistent with the work breakdown structure.
• A description of the review process.
• A list of key project team members and associated stakeholders.
• Identify final objectives, goals, and strategies for the project.
• Identify what the client or sponsor expects by way of deliverables from the project.
• Identify and begin to seek potential answers regarding the key questions surrounding the problem and the project.
• Develop a work plan on how and by whom tasks will be performed.
• Organize the project team to include identification of individual and collective roles to be carried out by members of the team. The use of an LRC as described in Sec. 2.2 is useful here.
• Become familiar with the organization’s work authorization process through which funds are transferred for work on the project to an organizational unit within the organization or to an outside vendor.
• Prepare schedules for the work to be carried out.
• Come up with a preliminary outline of the expected final report.
3.3.4 Collect Information
• Use interviews, surveys, or other data collection mechanisms.
• Develop a bibliography of basic information regarding the problem.
• Study the background information.
• Review miscellaneous data and information regarding the problem and the surrounding circumstances or situations.
• Observe activity to discern what is going on by the people associated with the problem.
• Correlate the data and information that has been gathered.
• Use techniques such as work sampling, work flow, and individual and collective behavior by the people associated with the problem.
• As the strategies for the solution of the problem begin to emerge, conduct a preliminary test of these strategies (policies, procedures, processes, methods, techniques, rules, etc.).
3.3.5 Analyze Data
• Classify the data by some common methodology.
• Question what the data appears to be revealing.
• Count, measure, and evaluate the forces and factors that begin to emerge during the analysis of the data.
• Compare data to the objectives and goals that have been established for the project.
• Look for trends, deviations, and other distinct characteristics of the data.
• Correlate different data that has emerged on the project.
• Conduct quantitative and qualitative assessment of the data. Consider using statistical techniques to assess the data.
• Follow your instincts in terms of what the data is revealing—which elements of data are providing meaningful insight into the problem and its solution.
3.3.6 Develop and Evaluate Alternatives
• Identify a few alternatives that might solve the problem.
• Evaluate these alternatives through the use of informal “cost-benefit” analysis to select the one or two that promise a useful solution to the problem.
• Test the one or two alternatives with the client.
• Select a final alternative.
• Develop implementation strategy.
3.3.7 Present Recommendations
• Prepare report.
• Brief client and/or sponsor.
• Rework as needed.
• Submit final report.
• Send a thank-you note (e-mail) to the project team members and other stakeholders who helped bring the project to a successful conclusion.
• Work with the project team members to prepare a “lessons learned” summary of the project and forwarded to key stakeholders.
3.3.8 Some General Guidance
• A small project can be managed using a scaled-down version of most of the concepts, processes, and techniques used for large projects, except of course for the amount of the resources involved.
• Communicate with the project stakeholders at all times.
• Have regular reviews of how the project is progressing.
• Don’t surprise the client or sponsor: keep that person informed of all activities regarding the project, both good and bad.
• Keep in mind the following: If you were the client or sponsor, what would you like to know about the project, its progress, and its final “deliverable”?
3.3.9 Summary
In this section, a simple protocol was put forth on how small projects could be managed. A series of work packages of such projects were presented along with the major actions likely to be needed when managing these projects. The point was made that small projects can be managed much like large projects except for the degree of resources that are involved.
3.4 SELF-MANAGED PRODUCTION TEAMS
3.4.1 Introduction
A self-managed production team (SMPT) is a team organized and dedicated to managing and creating the goods and services that are provided by an enterprise. The term “production” is used in the generic sense in that any organization produces goods and services whether it be through a manufacturing or other “production” function. SMPTs are found in a wide variety of enterprises, including industrial, marketing, insurance, universities, retail, and construction, to mention a few. These teams, in their self-managing role, perform a wide variety of management and administrative duties in their area of work including:
• Design jobs and work methods.
• Plan the work and make job assignments.
• Control material and inventory.
• Procure their own supplies.
• Determine the personnel requirements.
• Schedule team member vacations.
• Provide backup for absentees.
• Set goals and priorities.
• Deal with customers and suppliers.
• Develop budgets.
• Participate in fund planning.
• Keep team records.
• Measure individual and team performance.
• Maintain health and safety requirements.
• Establish and monitor quality standards and measures.
• Improve communications.
• Select, train, evaluate, and release team members. (Paraphrased from David I. Cleland, Strategic Management of Teams, John Wiley & Sons, New York, 1996, p. 170.)
Some SMPTs do their own hiring and firing—of course done under the oversight of the human resources office. Team members often interview prospective new team members to gain insight into the candidate’s technical and social skills.
People can manage themselves given the opportunity and suitable guidance. |
3.4.2 Implementing SMPTs
Preparing people and the organization for the use of SMPTs is usually handled in several phases as portrayed in Fig. 3.2 and described below:
Conceptual phase—in which the idea of how teams are appointed, trained, and operated is considered. The principal work carried out during this phase includes:
• Develop a bibliography on such teams for reading by the people involved in the organization.
FIGURE 3.2 Phases of team development and utilization.
• Benchmark other organizations using such teams to learn their experiences to include successes and failures.
• Demonstrated commitment by senior managers on the use of such teams as key organizational design elements.
• Design of the training program to enhance the knowledge, skills, and attitudes of the prospective team members.
• Organization of the team to include a delineation of the overall picture of authority and responsibility that the teams are expected to assume and carry out.
Education and training phase—execution of the training programs, which typically include the following subjects:
• Technical skills
• Social and interpersonal skills
• Management processes skills
• Decision making and execution competency
• Conflict resolution
• Team building
• How the teams can function as integrated, effective organizational design for improving production capabilities
Gaining commitment phase—in which the teams are given guidance on:
• How they will operate
• How the work will be done
• How the team is expected to carry out their technical and managerial responsibilities to include:
• Build and maintain the communications networks and information systems required to do their job.
• Develop a high level of esprit de corps within the team through better understanding of how individual and collective roles can be carried out in a synergistic manner.
• Develop the policies and procedures needed to do the team’s work.
• Solidify their roles as technologists and managers in the creation of value for customers.
• Develop and propagate a cultural ambience in the team that encourages ongoing improvement of production processes through the active participation of all team members.
• Work with the first-level supervisors in helping those individuals understand how their new role departs from the traditional boss role to one of being a teacher, consultant, or mentor, whose principal purpose is to provide the resources and environment and then get out of the way of the team’s work. (David I. Cleland, Strategic Management of Teams, John Wiley & Sons, New York, 1996, pp. 165–166.)
Steady-state operations phase—in which SMPTs become a way of life in the enterprise. Activities to support this way of life include:
• The management system of the enterprise and the management system for the SMPTs have been fully integrated.
• The teams are fully committed to their work to include continuous improvement in operations.
• Performance evaluation to include merit pay raises have been fully accepted by the team members and the organization.
• Teams are fully recognized as key elements in the operational and strategic management of the organization.
The basic reason for using SMPTs is that the people doing the work know the most about how the work should be done. The use of SMPTs facilitates the development of a cultural ambience that encourages the fullest integration of knowledge, skills, and attitudes to enhance the organization’s competitive competence. Table 3.3 provides insight into how the use of teams changes the existing cultural ambience.
3.4.3 The Change Factor
The use of SMPTs causes many changes in the manner in which production work is planned, organized, and controlled. A major change impacts the role of the first-level traditional supervisor. Traditionally such a supervisor has been responsible for the following duties:
TABLE 3.3 Self-Managed Production Teams versus Traditional Production Systems
• Counseling and guiding employees
• Planning, scheduling, budgeting, and rescheduling
• Managing performance and evaluating worker performance, including merit assessments and changes in financial reward for the workers
• Ensuring product quality
• Handling safety management
• Maintaining housekeeping of the production area
• Recruiting, selecting, and training workers
• Ensuring that equipment is operational
• Monitoring and facilitating production processing and product fabrication and assembly (paraphrased from David I. Cleland, Strategic Management of Teams, John Wiley & Sons, New York, 1996, p. 173)
In contrast, in organizations that use SMPTs, the role of the first-level supervisor becomes interdependent with the operations of the teams. The key responsibilities of the first-level supervisors arising out of the interface with the SMPTs include:
• Determining training requirements and providing for the training to be carried out for those people who need it
• Facilitating team and employee development
• Facilitating team problem solving
• Coordinating communication with team and other stakeholders
• Facilitating change at the production level
• Understanding enough of the technical side of manufacturing to be able to ask the right questions and know if the right answers are being given
• Facilitating meetings
• Resolving conflicts
• Providing an environment that facilitates motivation
• Providing leadership of people in their area of responsibility
• Monitoring
• Teaching
Not all teams work well—some fail. Failure is commonly caused by lack of management commitment to the change process needed to go from traditional production organizational design to the team-driven paradigm. Some of the more common reasons for failure include:
• Inadequate information to do the work.
• Cultural resistance to the use of team: people prefer to do things the way they have always been done.
• Fear of an unknown outcome of teams in regard to the individual, the culture of the enterprise, and the ability of the enterprise to produce a product or service.
• Individuals are unable to change from the traditional style to the team way of doing things.
• Teams are perceived as a threat to existing managers since the teams are likely to undercut and devalue managerial responsibilities—with the threat of blurring authority, responsibility, and accountability.
• People believe that teams depreciate relationships between managers and subordinates.
• Unions may oppose teams since teams are likely to shift their allegiance from the unions to the organization.
• Although the concept of teams may look great, major problems will arise in execution that cannot be solved without a major loss of production performance.
• Empowered SMPTs will not work unless the managers are willing to share control—an unlikely concession on the part of most managers.
• Teams often are launched in a vacuum, with little or no training or support, no changes in the design of the work of the team members, and no new supporting systems, like e-mail, to facilitate communication. (Paraphrased from David I. Cleland, Strategic Management of Teams, John Wiley & Sons, New York, 1996, p. 174.)
3.4.4 Summary
In today’s global competitive marketplace, every advantage must be explored to increase the efficiency and effectiveness with which the production function can be carried out. The use of SMPTs has been described in this section to include how to plan for, organize, and use such teams. Included in this assessment was a brief examination of the new role of the traditional first-level supervisor in working with SMPTs. Such teams provide for an organized focus dedicated to creating and managing the goods or services that are provided by the organization.
3.5 BENCHMARKING TEAMS
3.5.1 Introduction
Benchmarking is a process carried out by an interdisciplinary team which compares the organization with competitors and “best in the industry” performers. Benchmarking carried out through an interdisciplinary team is usually of several types:
• Competitive benchmarking. In this process, the five or six most formidable competitors are evaluated to gain insight into their strengths, weaknesses, and probable competitive strategies.
• Best-in-the-industry benchmarking. The best performers in selected industries are studied and evaluated.
• Generic benchmarking. Business strategies and processes are studied that are not necessarily appropriate for just one industry. Information sources for such benchmarking can come from a wide variety of public and private sources to include organization records, site visits, periodical literature, interviews, customers, suppliers, regulatory agencies, seminars, and symposia, to name a few.
A benchmark is used as a reference point. |
3.5.2 What to Benchmark?
Virtually any area of the organization can be benchmarked. Suggested areas for benchmarking include:
• Product/service and process development strategies
• Organizational design
• Marketing
• Market penetration
• Product/service quality
• Manufacturing (production) capabilities
• Sales
• Organizational process competencies
• Financial practices
• Executive development
• Human resources
• Plant and equipment
3.5.3 Leadership of the Benchmarking Team
The benchmarking team should be organized with appropriate delegation of authority and responsibility. A benchmarking champion should be assigned to provide credence to the effort. Such a champion can provide several key benefits:
• Provide leadership within the enterprise for the planning and execution of the benchmarking initiative.
• Ensure that the benchmarking results are integrated into the operational and strategic considerations of the organization.
• Provide the required resources for the benchmarking effort including designating the authority and responsibility of the people doing the work.
• Keep other key managers informed of the progress that is being made on the benchmarking initiative, including the probable outcome and the potential use to which the information from benchmarking can be put.
After the benchmarking work is completed, take the lead in assessing the effectiveness of the work, including the lessons learned, so that future benchmarking strategies can be improved. Membership on the benchmarking should include:
• Team leader
• Functional specialists
• Customer/sponsor
• Champion
• Facilitator
• Support people, such as legal, management information systems and clerical support
3.5.4 Standard Steps in Benchmarking
The steps in benchmarking typically include those indicated in Table 3.4.
3.5.5 Benchmark Pitfalls
In general, the conduct of a benchmarking process can be carried out with minimum disruptions; however, there are a few pitfalls to be avoided:
• Inadequate charge of the team’s authority and responsibility, and neglecting performance standards, objectives, goals, and strategies
TABLE 3.4 Standard Steps in Benchmarking
Determine what areas should be benchmarked. |
Decide who the most relevant competitors are. |
Decide who the best performers in the industry are. |
Develop a benchmarking plan. |
Organize the team. |
Collect the information. |
Analyze the information. |
Determine the performance gaps. |
Disseminate the findings. |
Determine the relevancy of the findings. |
Integrate the findings into strategies. |
Prepare execution plans. |
Execute the plans. |
Maintain ongoing benchmarking. |
Continuously improve the benchmarking process. |
• Failure to link the benchmarking team’s efforts and the cooperating enterprise’s objectives, goals, and strategies
• Having too many people on the team, resulting in duplication of effort, ambiguous authority and responsibility, increased costs, and a general disenchantment with the benchmarking purpose and process
• Not keeping the client informed of progress and results
• Inability to concentrate on the performance metrics and issues to be evaluated
• Selecting the wrong cooperating organizations and/or processes to benchmark
• Collecting too much data compounded by an inability to sort through and select the relevant and important data
• Neglect of an analysis of the meaning of the quantitative data that is collected.
3.5.6 Summary
Benchmarking makes sense as a key to gain insight into organizational performance through comparing an organization with competitors and with the best-in-the-industry performers. It is integral to the management process of monitoring, evaluating, and controlling the use of resources directed to organizational purposes. Benchmarking is a process that can be used to complement many team-driven initiatives in the organization, such as total quality management, concurrent engineering, project management, self-directed manufacturing, organizational designs, business process reengineering, and new business development actions.
3.6 MANAGING CHANGE BY PROJECT MANAGEMENT
3.6.1 Introduction
Change is inevitable in organizations and change is often not managed in a structured way. Change is announced and the effects of the announcement are then managed. The results of the change are driven by reaction to external activities rather than through a planned outcome.
When change is not managed, there is typically confusion and frustration by those not included in the process, but affected by the change. This frustration and confusion results in resistance to the change and clear positioning for the status quo. Rather than being supporters of the new situation, people will tend to work against the change.
There is nothing permanent except change. |
3.6.2 Change as a Positive Move
Many people view their organization as one of constant change. This real or perceived constant change is discussed in a pejorative context as the whims of management rather than the needs of the business. Management has failed to “sell” the stakeholders on the need for change. Figure 3.3 shows the sequence for demonstrating the need for organizational change to stakeholders.
Organizations can manage the changes in a positive and constructive manner using the principles of project management. Changes must be visible and have goals that can be understood by all stakeholders. Stakeholders must be a part of the change rather than bystanders or detractors.
FIGURE 3.3 Need for organizational change.
Change should be initiated through providing the reasons for a different approach to doing business. The reasons could be expansion of an existing product line, revision of an existing product, or updating the image of the organization. The reasons must be clear to the stakeholders and perceived as needed by the organization to get their support.
3.6.3 Effecting Change in an Organization with Project Management
Every project is solving a problem for its customer. It is the design of the project that provides the solution. The first issue is to understand the problem or the need for changing from the current situation to a new state.
Selling the solution to an unknown problem is often the way we approach situations. Often, there is a unique solution that is assumed to address all problems or problems that are not well understood. The solution is presented to stakeholders and it is rejected because there is no perceived need to change. Stakeholders do not see the problem, but view change as the problem. Figure 3.4 depicts the opposition to change when one sells the solution rather than getting agreement on the problem.
Project planning can define the problem and establish goals for the outcome, to include the criteria for success. The problem must first be recognized and accepted before the solution is defined. Goals and desired outcomes can then be addressed through such devices as a schedule, a communication plan, risk plan, procurement plan, contracting plan, and a budget.
The project plan provides both the roadmap to change and visibility into the process for stakeholders. Organizational change is then a managed and supported effort rather than a solution viewed by a few key people. Organizational change can then obtain the willful support of those affected by change. Figure 3.5 depicts the minimum items that must be addressed in a successful project plan.
FIGURE 3.4 Selling solution to unrecognized problem.
FIGURE 3.5 Project planning for change.
3.6.4 Negative Reaction to Change
When organizational change is not managed in such a manner that the affected people understand the need for change and are participants in making the change, adverse emotional reactions will occur. Adverse reactions to change can delay or stop the change. Recognizing the stages that the adverse reaction takes can help in dealing with the issues.
If people are not part of the plan for change, they will at best be neutral and at the worst be obstructionists. When people are informed of the decision for change, or discover the dictated change, they are shocked that someone is changing the status quo. This triggers several stages.
Figure 3.6 shows the stages that individuals will step through if they are not a part of the solution. These individuals will lose many hours of productive effort attempting to block the change or deny the change is happening.
FIGURE 3.6 Stages of resistance.
• Disruption of work. The people are disrupted from their normal duties and struggle to understand why the change is needed. This may bring current work to a halt and most time may be spent discussing the announced change with colleagues.
• Denial of change. The people may deny the announced change as a rumor or a test. They will typically deny that the change is happening and will ignore the information being given them.
• Realization of change. A realization that there is change will often turn to anger and frustration because they do not understand why this change is affecting them without a reason for changing. They may lash out and say hurtful things to others.
• Negotiating change. Negotiating is the next stage that people seek to attempt to avoid the perceived negative consequences of the change. Denial and other reactions are set aside and the people attempt to deal with reality.
• Accepting change. A feeling of helplessness and depression may follow the negotiating. Some testing of the situation may cause greater understanding of the change and a transition to acceptance of the change. Acceptance of the change means the people work in a productive manner within the new structure and put aside the old structure.
These stages are typical of unmanaged change and the negative impacts that change can have on the organization’s workforce. Better methods of managing change can offset the lost productivity and disillusionment of the workforce while giving better results. A disciplined process for change yields better results.
3.6.5 Using Project Management as a Change Agent
Project management can provide structure to change and can provide visibility into the reasons for change as well as the process for change. The life cycle for organizational change is perhaps different from the typical product life cycle. The life cycle probably does not have the same time line because of the need for human response to situations. A project life cycle for organizational change has five phases as shown in Fig. 3.7.
• Problem identification—Identifying the problem and selling it to stakeholders. This phase could be collecting information from stakeholders to fully develop the problem statement and flesh out the root causes of affects on the organization. Stakeholders, working close to the production side of the business, should be able to provide pertinent information that redefines or confirms management’s assessment of the problem. This phase may take a considerable amount of time if the problem is complex or there are many stakeholders. Early involvement of stakeholders improves problem identification and solution buy-in.
FIGURE 3.7 Five phases to organizational change by project.
• Planning the solution—Develop a plan that solves the problem and involves stakeholders in the planning. The plan must have goals and an anticipated outcome. The details of the plan need to address each area identified by the stakeholders and provide an answer to each legitimate item submitted by stakeholders. The time line for implementation should be flexible and be able to accommodate breakthroughs with the change to people’s work and routine.
• Execution of solution—Implement the plan to effect the changes. Commitment and reinforcement is needed throughout the implementation. Stakeholders need to have the purpose and reasons for change restated as the changes occur. Short-term successes need to be celebrated and communicated to the stakeholders to reinforce that the plan is working and there is a consistent advance on the solution.
• Test the solution—Assess the solution and its positive and negative impacts on the organization. Correct any negative aspects of the change, but only adjust the planned change as absolutely required. Maintain the consistency of purpose and demonstrate the plan is working toward the solution.
• Close the project—Celebrate the completion of the change and inform all stakeholders of the successes. Stakeholders must recognize when the project has completed a milestone or the successful completion of the planned change. There should be no doubt that the solution has been achieved.
Organizational change is the start of something new and the completion and close out of a former situation. The change must supplant the former organizational activity and remove it from the “new organization.” The beginning of the change is the end of the former state.
The new beginning must be described in the project plan and identify the former activity that is being replaced. Individual stakeholders must recognize the replacement of the old with the new. Four items that can smooth the transition are:
• Be consistent in the direction that the change is taking and frequently reinforce the problem and solution. This should also clearly demonstrate progress to the new organization.
• Plan for and celebrate short-term successes. Early successes in reaching clearly identified progress by the stakeholders are examples of reinforcing that the solution is working.
• Stakeholder involvement in developing and participating in the symbolic gestures ensures better support for the change. Symbolic gestures, such as ribbon cutting or new logos, can signal the transition and reinforce the new image and the new organization.
• Completed projects of organizational change should be celebrated and the successful completion communicated to the stakeholders. This celebration signals the end of this change and the successful advance for the organization.
3.6.6 Continuous Change of the Organization
There may be a requirement to institute several changes, either in series or parallel, for an organization. These changes may be required for a product line or for alignment of the organization’s structure to better meet business opportunities. Changes of this type may be viewed by stakeholders as continuous change and instability in what management wants the organization to do.
Like a single change, the problems need to be sold to the stakeholders and obtain their acknowledgement that these are problems that dictate change. Agreement on the problems sets the scene for developing solutions. Obtaining stakeholder information on how to solve the problem is critical to the success of implementing the changes.
Change can be managed similar to phased projects or multiple projects. The problems and their respective solutions are planned for implementation. Special emphasis must be placed on communicating the problems and solutions with the anticipated changes. Communication of actions and reinforcing how each part fits into the overall organization’s improvements is essential. Always celebrate successes and highlight them as milestones on the road to a new organization.
3.6.7 Using Project Management
Project management techniques lend themselves well to managing change. Establishing firm, measurable goals and documenting the plan, start the resolution of the problem. Schedules and budgets lend themselves to providing visibility into the process and establishing a positive control over the tasks. Risk, for example, is another area that will assist in organizational change and contingency planning when adverse events occur.
Project planning allows the stakeholders to participate and feel they are a part of the solution to an organization’s change. Stakeholders provide direction through participation and know the details of change. This promotes support and eases the transition to the new organization. Stakeholders can be a part of building the new while shedding the old.
The visibility gained through project management techniques will show the openness and trust of the organization to those most affected. Gantt charts will permit everyone to track the progress and anticipate future work efforts. Communications will be enhanced through a project communication plan that describes who are the stakeholders and their interests in the change.
Linking change procedures with project management techniques will give a greater capability to successfully transition to a new state. Planning with project management tools and defining the transition eases what can be a difficult task to deal with human emotions. Facts will replace speculation when project management techniques are employed.
3.6.8 Summary
Organizational change will be disruptive and the outcome will be unpredictable if there is not a disciplined process that involves the stakeholders. Surprise changes and continuous changes will often lead to loss of productivity and disruptive influences by the stakeholders because they do not understand the problem that triggered the change.
Project management principles, concepts, techniques, and tools will assist in the change process.
Understanding the positive and negative effects of the implementation of change can lead to the use of such project management techniques as “identifying the problem,” “developing goals for the change,” “communicating the plan to stakeholders,” “involving stakeholders in developing the solutions,” and “involving stakeholders in effecting the change.”