Point Lookout: a free weekly publication of Chaco Canyon Consulting
Volume 1, Issue 7;   February 14, 2001: Quantum Management

Quantum Management

by

When we plan projects, we estimate the duration and cost of something we've never done before. Since projects are inherently risky, our chances of estimating correctly are small. Quantum Management tells us how to think about cost and schedule in new ways.
Allison presenting

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.

You get
to choose:
innovation or
predictability.
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.

Whenever you're at the front of the room being hammered for a drop-dead date, remember that accepting one doesn't change the laws of Quantum Management. Go to top Top  Next issue: Celebrate!  Next Issue

52 Tips for Leaders of Project-Oriented OrganizationsAre 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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Related articles

More articles on Project Management:

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High-performance teams have customary ways of working together that suit them, their organizations, and their work. But when emergencies happen, operating in business-as-usual mode damages teams — and the relationships between their people — permanently. To avoid this, train for emergencies.
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Communication can be problematic for any team, especially under pressure. But virtual teams face challenges that are less common in face-to-face teams. Here's Part II of a little catalog with some recommendations.
The Great Wall of China near MutianyuScope Creep and Confirmation Bias
As we've seen, some cognitive biases can contribute to the incidence of scope creep in projects and other efforts. Confirmation bias, which causes us to prefer evidence that bolsters our preconceptions, is one of these.
A street sign at Maxwell Air Force Base, AlabamaJoint Leadership Teams: OODA
Some teams, business units, or enterprises are led not by individuals, but by joint leadership teams of two or more. They face special risks that arise from the organizations that host them, from the team they lead, or from within the joint leadership team itself.
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The planning fallacy is a cognitive bias that causes us to underestimate the cost and effort involved in projects large and small. Efforts to limit its effects are more effective when they're guided by interactions with other cognitive biases.

See also Project Management for more related articles.

Forthcoming issues of Point Lookout

What most of us think of when we think of checklistsComing February 28: Checklists: Conventional or Auditable
Checklists help us remember the steps of complex procedures, and the order in which we must execute them. The simplest form is the conventional checklist. But when we need a record of what we've done, we need an auditable checklist. Available here and by RSS on February 28.
Adolf Hitler greets Neville Chamberlain at the beginning of the Bad Godesberg meeting on 24 September 1938And on March 6: Six More Insights About Workplace Bullying
Some of the lore about dealing with bullies at work isn't just wrong — it's harmful. It's harmful in the sense that applying it intensifies the bullying. Here are six insights that might help when devising strategies for dealing with bullies at work. Example: Letting yourself be bullied is not a thing. Available here and by RSS on March 6.

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