Allison stood at the front of the room, next to the LCD, wanting desperately not to be there, as the marketing VP demanded, "Don't give me 'March 15 to April 29.' I want to know when exactly this thing will ship!" Trouble was, she couldn't say exactly — things were too unpredictable, and he just didn't seem to get it. So she caved: "OK, we'll have it by April 29."
"Oh, no you don't," he replied. "We'll take the middle of your range. What's that," he turned to the director beside him, "April 5? April 5. That's it. Next case!"
So that's what they did, and Allison's team finally shipped on April 26, three weeks late. A black eye for Allison, for the team, and for the engineering group. What was going on here?
Problem-solving organizations do two kinds of work — Operations and Projects. Operations work is ongoing effort repeated often — things like manufacturing, "routine" administration, and infrastructure operations. Project work is one-of-a-kind — new product development, relocation, and reorganization. Operations are repeatable and less risky. Projects are unique and riskier. Although we usually manage Projects as if they were Operations, Projects must be managed differently. Quantum Physics can help us understand why.
In Quantum Physics some things are inherently unknowable. For example, the more precisely we know the position of a moving body, the less precisely we can know its velocity, and vice versa. Classical Physics had no such restriction.
Not both.There is an analogy in management. If we want to know cost and schedule precisely, we must reduce innovation, because innovation creates risk. If we accept risk, we must settle for less predictability of cost and schedule. Quantum Management says that you can't have precision in the context of risk.
Since our management practices originated in operations-oriented organizations, our managers don't like to hear that "we expect completion within 4-6 months." They often demand "drop dead" dates. This is Classical Management, and it's analogous to Classical Physics.
You can move your organization toward Quantum Management. As a manager:
- Ask not "When will it be ready?" Ask, "When is there a 95% probability that it will be ready?"
- Reward project managers who make estimates in 95% confidence bands.
- Require that Corporate Finance manage risk across a portfolio of projects, rather than by demanding precision at the individual project level.
As a project manager:
- Estimate best and worst case as 95% confidence bands.
- When people ask you for a drop-dead date, try to educate them in Quantum Management. You might fail — or you might make some progress.
Are your projects always (or almost always) late and over budget? Are your project teams plagued by turnover, burnout, and high defect rates? Turn your culture around. Read 52 Tips for Leaders of Project-Oriented Organizations, filled with tips and techniques for organizational leaders. Order Now!
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More articles on Project Management:
- Scheduling as Risk Management
- When we schedule a complex project, we balance logical order, resource constraints, and even politics.
Here are some techniques for using scheduling to manage risk and reduce costs.
- Nine Project Management Fallacies: I
- Most of what we know about managing projects is useful and effective, but some of what we "know"
just isn't so. Identifying the fallacies of project management reduces risk and enhances your ability
to complete projects successfully.
- The Risky Role of Hands-On Project Manager
- The hands-on project manager manages the project and performs some of the work, too. There are lots
of excellent hands-on project managers, but the job is inherently risky, and it's loaded with potential
conflicts of interest.
- Managing Risk Revision
- Prudent risk management begins by accepting the possibility that unpleasant events might actually happen.
But when organizations try to achieve goals that are a bit out of reach, they're often tempted to stretch
resources by revising or denying risks. Here's a tactic for managing risk revision.
- False Summits: I
- Mountaineers often experience "false summits," when just as they thought they were nearing
the summit, it turns out that there is much more climbing to do. So it is in project work.
See also Project Management for more related articles.
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- We commit the reification error when we assume, incorrectly, that we can treat abstract constructs as if they were real objects. It's a common error when we try to motivate people. Available here and by RSS on November 22.
- And on November 29: Manipulators Beware
- When manipulators try to manipulate others, they're attempting to unscrupulously influence their targets to decide or act in some way the manipulators prefer. But some targets manage to outwit their manipulators. Available here and by RSS on November 29.
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- Ten Project Management Fallacies: The Power of Avoiding Hazards
- Most of what we know about managing projects is useful and effective, but some of what we know "just ain't so." Identifying the fallacies of project management reduces risk and enhances your ability to complete projects successfully. Even more important, avoiding these traps can demonstrate the value and power of the project management profession in general, and your personal capabilities in particular. In this program we describe ten of these beliefs. There are almost certainly many more, but these ten are a good start. We'll explore the situations where these fallacies are most likely to expose projects to risk, and suggest techniques for avoiding them. Read more about this program. Here's a date for this program:
- The Power Affect: How We Express Our Personal Power
- Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.
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