Aarni's Blog

  • Home
  • About
  • How to succeed in internal projects

    • 16 Sep 2011
    • 0 Responses
    •  views
    • management projects
    • Edit
    • Delete
    • Tags
    • Autopost

    A company has two basic kinds of project: external and internal. External projects have a paying customer; they make money, but internal projects waste it. At least that seems to be the sentiment in many firms. People think that internal projects are less valuable and less critical.

    The truth is that internal projects require the same level of attention and dedication as external projects. They use cash generated from customer projects to strive for business results: competitive advantage, cost savings or increased revenues.

    As a management consultant I’ve helped clients in the planning and execution of internal development projects. Time after time the same issues seem to hamper initiatives. Here are some of the most typical, and my ideas on how managers could avoid them. 

    Plan steps that deliver results fast

    A long change program with results expected far in the future is not going to create a feeling of urgency and commitment. Break down a large project into manageable bits that deliver visible results fast. The more concrete and measurable the results are, the better.

    Give employees time for the project

    Few employees are lucky enough to get a full time post working on an internal project. Most workers have to take care of everyday business first; only when this is completed can they use what little time is left for the project. They cannot give their best when their minds are constantly struggling with other issues.

    You should give the employee a whole day in a week, or a week in a month when he or she can concentrate solely on the project. Offer a replacement to cover their usual role for that period, and communicate the arrangement to the employee’s colleagues and managers. Make sure to support the employee in situations when the requirements of the project and their “normal” work collide.

    Share a simple project model

    Companies have great models for customer project deliveries. Still, many companies lack basic project methodologies and practices internally.

    Practically all personnel should undertake basic project training. A company must have a simple, generic project management model and manual. Those who are going to be named project managers should receive training or mentoring before the project kicks off.

    Communicate

    The managers who initiate a project have certain goals in mind. They know why the project is necessary and why it is beneficial. Unfortunately, others can see the project as one more distraction with little or no results.

    People are more accepting of change when they understand why it is necessary and what’s in it for them. It may sound like a cliché, but bi-directional communication is a key to project success. Showing an example is a great way to communicate.

    Give credit

    A successful customer project not only brings in money, but also gets attention. The project team receives an extra bonus or other rewards. Sometimes a project is noted in the media. How often are people involved in internal initiatives awarded due credit?

    Make internal projects known in the company and reward success. That way you’ll ensure you have an even more motivated project team next time around.

    Follow up

    It is amazing to hear from time to time that companies don’t measure the effect of a project. It is no wonder people think that nothing has changed and that internal projects are a waste of time.

    Plan how to follow up on the results after the project is completed. Making these results public and discussing them is an effective way to learn and improve project performance in the future.

    Timemanagement

    Photo: iStockphoto

    • Tweet
  • Why not stop a development project gone sour?

    • 3 Jun 2011
    • 1 Response
    •  views
    • decision-making project portfolio projects
    • Edit
    • Delete
    • Tags
    • Autopost

    The National Audit Office of Finland looked at five climate and environmental development programs that were partly financed by the government. The results were quite disappointing.

    In the latest issue of a the Finnish Talouselämä magazine Olli Ainola writes about green technology development programs that got 197 million euros of government funding. It was around 50% of the program budgets. The rest of the money came from the companies involved. 

    The discrepancy between goals and actual results is staggering:

    • The programs were supposed to create 11 000 new jobs. Result –1 235.
    • The planned turnover was to be 8 billion euros. Result – 642 million.
    • The value of export was anticipated to be 6 billion euros. Result – 360 million.

    The critics of the audit point out that there was a depression going on, one of the programs is still running, and two were just completed.

    It is hard to say, based on this information alone, how well the programs were prepared, and what the level of risk analysis had been. These were, obviously, high-risk endeavors.  

    In any case one question remains. Were the financing partners at any point considering that the programs should simply be stopped? This is something that seems to be difficult to do, both in corporate and public development. If the conditions of the project have changed, and the project is going to fail miserably, why not say, “Stop!”

    Disappointment
    Photo: iStockphoto

    • Tweet
  • Managing development strategically with portfolios

    • 20 Feb 2011
    • 0 Responses
    •  views
    • ideas management projects strategy
    • Edit
    • Delete
    • Tags
    • Autopost

    How do you align development ideas and projects with your company's strategy? Portfolio management is a methodology for managing value, resources, and risks strategically.

    The model that our clients have found useful is comprised of three types of portfolios: Ideas, Project, and Assets portfolios.

    An Ideas Portfolio is an internal market for development ideas that are the seeds for possible development projects. If the idea gets enough interest, its presenter will be allowed to suggest it to the project portfolio.

    A Project Portfolio is a top-down view of proposed, on-going and completed projects.It is in a way a presentation of the company's strategy. It answers the question "are we doing the right projects?" Steering groups at different levels of the organization use project portfolios for decision making and project reviews.

    Finalized projects create strategic assets; processes, knowledge, customer relationships, technical systems, and so on. An Assets Portfolio presents the existing operational reality of the company. It shows how well the implemented strategy is performing.

    Assets require renewal and improvement in order to serve the company's strategic and customer requirements. These development needs inspire people to present new ideas. The same feedback loop is between ideas and project portfolios.

    Our product, Thinking Portfolio®, is a simple tool for implementing the portfolio management model that I've presented here. If you want to know more about it, please contact me.

    Portolios

     

    • Tweet
  • About


    28771 Views
  • Archive

    • 2012 (6)
      • May (1)
      • April (2)
      • March (2)
      • January (1)
    • 2011 (35)
      • December (2)
      • November (2)
      • September (3)
      • August (3)
      • July (1)
      • June (2)
      • May (1)
      • April (3)
      • March (3)
      • February (7)
      • January (8)
    • 2010 (19)
      • December (5)
      • November (14)

    Get Updates

    Subscribe via RSS
    TwitterLinkedIn
  • Sites I Like

    • My company
    • My other blog
    • Business Consulting Buzz
    • Thinking Portfolio