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:

Icelandic currentsRestarting Projects
When a project gets off track, we sometimes cancel it. But since canceling projects takes a lot of courage, we look for ways to save them if we can. Often, things do turn out OK, and at other times they don't. There's a third choice, between pressing on with a project and canceling it. We can restart.
Damage to the Interstate 10 Twin Bridge across Lake PontchartrainManaging 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.
Rough-toothed dolphinThe Injured Teammate: I
You're a team lead, and one of the team members is very ill or has been severely injured. How do you handle it? How do you break the news? What does the team need? What do you need?
Platform supply vessels battle the fire that was consuming remnants of the Deepwater Horizon oilrig in April 2010Managing Non-Content Risks: II
When we manage risk, we usually focus on those risks most closely associated with the tasks at hand — content risks. But there are other risks, to which we pay less attention. Many of these are outside our awareness. Here's Part II of an exploration of these non-content risks, emphasizing those that relate to organizational politics.
John Frank Stevens, who conceived the design and method of construction of the Panama CanalPower Distance and Risk
Managing or responding to project risks is much easier when team culture encourages people to report problems and to question any plans they have reason to doubt. Here are five examples that show how such encouragement helps to manage risk.

See also Project Management for more related articles.

Forthcoming issues of Point Lookout

Photo of Jack Webb as Sergeant Joe Friday from the television series DragnetComing September 3: Contributions in Team Meetings: Advocating
An agenda in the form of an ordered list of topics might not provide an appropriate framework for a given meeting. For example, if A depends on B, and B depends on A, we must find a way to discuss A and B together in some orderly fashion. Here are some alternatives to linear, ordered agendas. Available here and by RSS on September 3.
A Venn Diagram of three setsAnd on September 10: Contributions in Team Meetings: Scoping
Some meetings focus on solving specific problems. We call them "working sessions." More often, we delegate problem solving to task teams, while meetings wrestle with the difficult task of identifying or "scoping" problems rather than solving them. Scoping discussions can be perilous. Available here and by RSS on September 10.

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52 Tips for Leaders of Project-Oriented OrganizationsAre your project teams plagued by turnover, burnout, and high defect rates? Turn your culture around.
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