Quantum Management

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.  Top    Next Issue

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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Related articles

More articles on Project Management:

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.

Communication Traps for Virtual Teams: II

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.

Projects as Proxy Targets: II

Most projects have both supporters and detractors. When a project has been approved and execution begins, some detractors don't give up. Here's Part II of a catalog of tactics detractors use to sow chaos.

Seven Planning Pitfalls: III

We usually attribute departures from plan to poor execution, or to "poor planning." But one cause of plan ineffectiveness is the way we think when we set about devising plans. Three cognitive biases that can play roles are the so-called Magical Number 7, the Ambiguity Effect, and the Planning Fallacy.

Seven More Planning Pitfalls: II

Planning teams, like all teams, are susceptible to several patterns of interaction that can lead to counter-productive results. Three of these most relevant to planners are False Consensus, Groupthink, and Shared Information Bias.

See also Project Management for more related articles.

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Choice-supportive bias is a cognitive bias that causes us to evaluate our past choices as more fitting than they actually were. The erroneous judgments it produces can be especially costly to organizations interested in improving decision processes. Available here and by RSS on April 21.

And on April 28: The Self-Explanation Effect

In the learning context, self-explanation is the act of explaining to oneself what one is learning. Self-explanation has been shown to increase the rate of acquiring mastery. The mystery is why we don't structure knowledge work to exploit this phenomenon. Available here and by RSS on April 28.

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