Business Development: A Project Management Approach

Development of economies, businesses or people should be interpreted in a coordinated holistic manner where improved efficiency means more work for people, not less. Education results in improve efficiency of man and machines. However, what is required is not education in academia, but in skilled methods of production. The task is to get the workers involved in writing process theory for project management that results in incremental improvement. Project Management has to become the point of departure for management theory where the people are managed so that they can manage their work. If the business is to develop then the successful outcome of any change in the organisation can only be achieved when Business Processes and Human Behavioural Processes converge in the person of the project manager. The project lifecycles form the cornerstone of project understanding where work breakdown structures and responsibility charts take on the command and control aspect of delivering envisioned benefits

Studies of Group Dynamics clearly show that management effect workers only by helping or by hindering them in the achievement of there accepted tasks. Project organisations made up of Sponsor, Champion, Manager and worker have proven to be most effective. Technical and procedural expertise is split between the champion (technical) and manager (procedural) to manage the task on the one hand and the person performing the task on the other. Formal education must find a way to stay relevant to the skills that employer’s demand of their employees. Outcome based education endeavours to put such a system in use. This requires the input of academics and practitioners into the knowledge and skill mix to determine vocational level or competence. To accommodate this statute bodies called National Qualification Authorities put qualification frameworks in place.

Consumption of human capital in parallel with financial capital should be managed to evolve knowledge and skill. Only then can we cease to be wasteful in our expenditure of all capital.

Socialism and Capitalism, Left wing and Right wing, Business development and Social development, call them what you will, are not ether/or situations but symbionts that need one another to survive. Economic development of the 1st world is a fact of life but in 2nd and 3rd world countries it has not taken place as those economies show shortages in all four factors required to sustain economic development. Production is limited and they have become nations of consumers as population growth has continued to increase in these countries, economic growth has not. Bhattacharya A/Pangestu M, The lessons of East Asia

First world investment in the social development of lower developed countries has resulted in increased life expectancy and birth rate without creating work. While in the 1st world labour is replaced by technology the birth rate has also decreased keeping unemployment figures low. This same first world technology causes unemployment when deployed in third world economies. It would seem that in some lower developed countries once a measure of economic development is attained, social development takes on a higher priority. Increased expenditure on social development instead of on continued economic development leads to economic downfall as several developing countries have experienced recently. Ro C, Public administration and the Korean transformation.

Development of economies, businesses or people has to be seen in a coordinated holistic manner where improved efficiency means more work for people, not less. Education is of pivotal importance to improve efficiency of man and machines. However what is required is not education in academia, but in skilled methods of production. The development of business has progressed along two parallel paths for the last one hundred years. Business processes, the mechanics of the organisation, chain of command and human behavioural processes, -I think, I speak, I do- have developed equally but have never actually met.

It was not until the 1920’s that a concerted effort to study organisations formally began. The classical school attempted to create a set of rational techniques that defined one best way of doing things. The theory was founded on four pillars: Division of labour, scalar and functional processes, structure and control. (Taylor, Mooney, Reiley, Webber, Gannt, Fayol, Gilbreth and Graicunas) Scalar and functional processes are the vertical and horizontal growth of the organisational structure in which labour was specialised. Control gave way to it’s own theory of management in which we find the management functions of: Planning, organising, leading and controlling, which gave way to the behavioural school of thought on how organisations formed, functioned and grew. (Follett, Barnard, McGregor, Maslow, Herzgerg, Homans and Lewin)

Management schools have taught students to either manage the people or to manage the work they perform. As most managers are naturally task orientated in order to get things done, management of the person has become the realm of the Human Recourses Department. Rapid change brought on by technology finds the manager in a quandary of staff turnover resulting in decreased efficiency and profits. Managing this rapid change has resulted in the organisation looking towards project management for help.

American perspectives on project management also concentrate on tasks, tools and techniques to deliver the product of the project, and the co-ordination / control of many tasks performed by many organisations working on a single project. In contrast the European perspective on project management is that an organisation is made up of many small projects and the cumulative success of these projects determines the success of the organisation. Key to this concept is the management of people who perform work on many simultaneously occurring projects. The African point of view on project management is that it falls within the domain of engineering and is largely influenced by the American perspective.

Building team performance is one of the key requirements for implementing change. Using the project manager as the change agent has become essential for success. So what can we make from all of this? One thing is definite: the people who are doing the job mostly know how to get it done. The task is now to get the workers involved in writing the process theory of project management so that incremental improvement can take place. Project Management has to become the point of departure for all management theory where the people are managed so that they can manage their work.

Managing the change as a project, is the most fundamental decision that can be made and it is this avenue that should be explored. (Carnall CA, Managing change in organisations, 1990). The benefit of using project management techniques and the Project Manager as external change agent in this instance cannot be overestimated. Failure of change projects to appoint the correct person in the correct post on top of failures of the past will have catastrophic results. (Armstrong M., Personnel Management Practice, 1988,p191)

The project management of business development requires new insight into how strategy, structure, processes and projects interact with one another. The natural scientific definition of processes brings the required light to these subjects and can be used to explain the interactions. 

Strategy analysis the present position of the company and its clients as market forces exercise pressure on it. Strategic objectives are the future position where the company sees it’s self, best supplying their customers’ needs. Strategic implementation brings about change in the companies market position. Structure is the organisational layout of management and workers to command and control delivery of products that the company produces to its clients.

I find it important to not only understand what processes are, but to also understand how they are measured and controlled. Here I have found no better explanation of good scientific principles than in the Encyclopaedia of Chemical Technology by Kirk-Othmer. In order to operate a process in a safe and efficient manner, it is essential to be able to control the process at a desired state or sequence of states. This goal is usually achieved by implementing control strategies on a broad array of hardware and software. "The state of a process is characterised by specific values for a relevant set of variables, e.g. temperatures, flows, pressures."

Business processes react in exactly the same way. If workflow is increased, pressure in the work place rises increasing emotional temperature. If not controlled the process will fail. Instruments are used to measure the health of the process and to execute control. Employees use the processes to get the work done and find that incremental improvements can be made to increase efficiency. These incremental improvements are essential to the development of processes (they are the adjustments) as without them the processes will soon stop working. Improvements accepted for implementation are also solutions to problems experienced by workers and should be dealt with as projects. Thus projects deliver and implement working solutions to incrementally improve processes that drive the company towards achieving strategic objectives.

Project management as a life skill should become part of all education and all vocational skills. Project management is a foundation package on which all knowledge and skill is built. Project management is what turns vision into results. Project management brings a team of divers levels of education, social backgrounds, religions, experience, etc. together to form a coercive group that can reach the objectives put to it in an efficient and effective manner. This aspect is revealing project management as the point of departure for all management theory, where management manages the behavioural processes of people, who manage the continues incremental improvement of business processes in the organisation, through projects that guide the business process to address the change in strategic direction of the organisation.

If business development is to prove anything, it is that the successful outcome of any change in the organisation can only be achieved when Business Processes and Human Behavioural Processes converge in the person of the project manager. Adding a new dimension to the organisation reveals a cube rather than a matrix with each facet of the cube revealing the extent to which available time is used by the individual person, project and functions. Work breakdown structures are controls using responsibility charts to manage the work of a stage to a completion point before the next stage is undertaken are positioned parallel to the time axis in a cubic organisation.

Project champions (technical experts) are used to manage individual project teams to complete the work of the stage leaving the project manager (project procedural expert) to learn from multi-teams and/or projects progressing better than expected, so that guidance can be given to teams and/or projects in difficulty. To achieve this, use is made of a time control matrix to analyse actual achievement against forecasted achievement and the workload formula. From this analysis individual people and projects are identified from whom one can learn or whom one can help.

A three dimensional matrix can be used to solve an individual’s dilemma as to where he should spend his time. He would thus be able to see for himself the consequences of spending his time on either the project or the organisation. Resource histograms are useful planning tools but leave employee decisions out of the calculation. The employee chooses to spend his time where he gets the best reward. He sells his time to the activities where his skill and knowledge translates to the most effective and efficient gain of value.

The successful implementation of "management by projects" will require that managers find ways of identifying how implementation is proceeding and the extent of variance from what is expected. The underlying notion in such forms of control is that, if people are clear on what is expected of them and are provided with information that shows the extent to which these expectations are, or are not, being met, they will change their behaviour, or redirect their energies or attention, to remedy the situation." (Italics are my own words) Johnson & Scholes, Exploring Corporate Strategy

The project lifecycle is the cornerstone of project understanding to the extent that it can be seen as the first natural scientific law of projects. All projects have and go through a life cycle. The number of stages that make up the lifecycle may be in dispute but at the onset no one will argue that in order to come to grips with the projects content a minimum of four stages are required. Research of lifecycles has indeed proven that three stages of the lifecycle remain constant and that it is only the planning/design stage that is split into more stages to contain product risk.

Work performed within stages of a lifecycle naturally lends its self to contain a breakdown structure. Each stage of the lifecycle contains work to be preformed and managed. Devolving the work from a strategic level to lower and lower levels of detail keeps management focused on the strategic direction intended while the workers concentrate on the skill required to do the job.

Managers manage the people while the people manage the work.

Constructing the work breakdown structure in three levels using the ancient roman military command structure of ten reporting to one, control can be gained over one thousand tasks. Using four stages in the lifecycle control is gained of four thousand tasks. Rolling wave planning requires one to manage the detail on only the current stage of the lifecycle resulting in detail plans never exceeding the one thousand mark, and has the added benefit in that the entire project team focuses on only one stage of the lifecycle.

Using responsibility charts to ascribe people who take on ownership for performing the tasks at all levels of the work breakdown structure cements the command and control of the project. Alarm state navigation is used to proactively identify problems that may cause delays in the future. Progress meetings are used to select solutions identified by the workers for implementation resulting in real progress being made. The study has concluded that a pencil and paper approach to managing rural development projects where members of the community with different political, cultural, religious and educational standards, who are members of the project management team as well as the implementers of the project deliverables, can result in successful projects.

40 contact hours of familiarisation with project management theory and use of the system was all that was required to bring about a major change in stakeholder management and in managing people who are managing the work to bring about success in the delivery of projects even in very difficult communities where no success had been achieved before. Most importantly the use of the model has resulted in an understanding of project process dynamics across 1st, 2nd, and 3rd world components brining the project management as well as the project implementers into a new found relationship with one another, causing the projects to be delivered on time, cost, quality, scope and to customer satisfaction.

The project system has been audited on four working projects by Earnest and Young and found to be the "preferred approach to management of life critical Year 2000 compliance projects." For the South African Governments Transportation Department. Development of a step by step guide through the system explains what should be achieved at each strategic level work package contained in the project lifecycle. The guide contains a mixture of practise and theory while remaining generic. This is done to avoid becoming a recipe and lulling the user into believing he only need apply the model directly.

Guidance is given without to much detail as each project is novel and unique and no guide can give complete assistance. Care is given to not rigidly addressing the implementation stage as here the uniqueness of the project demands that the work of delivering and implementing the product that is the solution to the clients problem is delivered to the clients and stakeholders satisfaction.

In this way the user becomes skilled in his application and use of his best practise derived from using the model.

Development of the project lifecycle model and project system was achieved through application to three cases. The first case study produced a procedure manual for project management as it applied to the Operations Strategic Business Unit (SBU) of the Transmission group, in the Electricity Supply Council (ESKOM) of the Republic of South Africa (RSA).

Transmission Operations had no formal project management processes in place and it has been my task to develop these processes since May 1994. The division has adopted activity-based management as part of its business strategy and it was the similarity between this form of management and project based management that led to my appointment. The division's personnel have no formal project management knowledge and I have been educating them through a series of lectures that I have developed. ESKOM Transmission Group, Systems Operations Manager accepted the "Procedure manual for project management" as policy under instruction number ss/162. In all, 125 personnel were trained to apply the manual. During 1996 this department completed 150 projects with a total value if 100 million Rand successfully.

The second case study was based on the Electrification Project which attempted to install electrical power in 3 million homes within 5 years. At the time this case was studied the project was in its second year, overspending its budget, while not meeting the targeted number of new connections. My experience in managing multiple projects, as well as canvassing for support of my future studies in this field, resulted in ESKOM Senior Management requesting me to advise on this project. Experience has shown me that management of multiple projects have three critical areas in which things usually go wrong; organisational structure, prioritising projects and controlling project performance. An initial survey showed problems in all three aspects.

Studies of Group Dynamics done by; Kurt Lewin (1947), Chapple (1940), Bales 1950, 1979) Carter et al. (1951), White and Lippitt (1953) who studied groups from Anthropological, Sociological and Psychological perspectives, showed the effects of different kinds of leadership on group morale and productivity. This means that those who are doing the work have their efficiency affected by management. i.e. management can either help the workers to get the work done or they hinder the workers in the performing of their duties. These studies of Group Dynamics clearly showed that effective and efficient workers had two kinds of leader: a task leader (technical leader) who helps the group to do its job and a "socioemotional" leader (process leader) who helps to build and maintain good relations among group members.

The organisation used to manage projects is uniquely created for each project, but conforms to certain constraints. As some of these constraints are in themselves unique to Project management, some discussion is required here. The concept through which all projects are to be managed also makes use of four levels of involvement which are: the sponsor, champion, manager and team.

No training was given in project management generally, nor in the use of the procedure manual or the forms, but use in the relevant departments became widespread. The result was that during the FOLLOWING year annual connections in this programme rose from 250 000 to over 600 000. Other measures had also been implemented so the direct contribution of using the procedure manual cannot be established. However, two effects can be directly attributed to the use of the manual. Firstly, the absurd request by management that project proposals be 98% accurate was stopped due to the understanding of the project lifecycle and cost estimating theory that it was imposable to be this accurate this early in the project. Secondly, the practice of projects going through the Design Office up to twenty-eight times in order to improve accuracy of cost estimates, was stopped, thus reducing the work load but increasing the throughput.

The third case study is based on Gauteng Provincial Government’s re-engineering of their Corporate Informatics Department. With the change of government during 1994, the existing four provincial structures were broken up to form nine new provinces. This created the Gauteng Province incorporating most of personnel of the old Transvaal Province who then had to move their head office from Pretoria to Johannesburg. This resulted in an almost 90% turnover in staff leaving the computer support systems and staff in a position where accusations on non-delivery were made.

From this position the Premier instructed that the Corporate Informatics Department be re-engineered and that a management by projects policy be instilled in the department. At the time of my arrival strategic analysis of the department had just got under way. Though an essential part of business, BPR has failed miserably in the implementation stage of the project and although accused of being the flavour of the month in Europe, it remains of interest because of the efficiencies that can be attained. In an Arthur D Little survey published in Computer World in June 1994, 80% of executives surveyed expressed dissatisfaction with BPR efforts. In an interview with Michael Hammer published in Information Week in June 1994 three reasons directly related to BPR failure were cited, all pointing to a lack of project management understanding.

Processes exist all around and are found in nature. Processes are dynamic and change through continuous incremental improvement in business, or cease to exist through lack of improvement.. Work requests from employees are requests for internal improvements to existing processes being used. Work requests from customers are external improvements to existing processes. These work requests are the evidence of the processes being used. They are projects to improve processes.

Using the Strategic Management model from Johnsom and Scholes analysis was made of customer and supplier requests to find evidence of real processes and sub defining the specific issues in each process to identify the way ahead. The number of items relating to each identified issue was used to indicate importance that would influence the creation of an organisational structure in the next session. This resulted in a clear map of the business process for the present and future organisation. Since the initial analysis the processes identified have remained true. The staff within each process continually analysed their work to find more effective ways complying with customer demands. Ideas for improvements were put forward at monthly staff meetings and selected for implementation, resulting in continues incremental improvement of the processes.

Success achieved at Gauteng Provincial Government led to 17 other Provincial Government Departments and 4 National Government Departments accepting the procedure manual as policy and using the project lifecycle model as best practice. To date more than 200 semi state Companies have been trained in the use of the procedure manual and use the forms it contains to manage projects using lifecycles, work breakdown structures and responsibility charts as best practice.

As the pace of technological development increases, the speed at which vocations become redundant increases. The ability to have and hold a job becomes more dependant on skill and less dependent on knowledge. Formal education must find a way to stay relevant to the skills that employers demand of their employees. Outcome based education endeavours to put such a system in use. This requires the input of academics and practitioners into the knowledge and skill mix to determine vocational level or competence. To accommodate this statute bodies called National Qualification Authorities put qualification frameworks in place.

Human resource management find difficulty in dealing with multi-vocations in a centralised functional bureaucracy but as organisations evolve into distributed virtual teams, project management provides the solution. Project management as a life skill cuts across all knowledge and skill and becomes that ability to turn vision into reality. The certification of project management personnel is in operation in many important European countries. The levels that are addressed most until now are B (CPM), C (PMP) and D (PMF). Several hundred CPMs and PMPs were certificated and several hundred are in the process towards this end.

Qualification and competence programmes are a major point in the discussion of the project management associations globally for several years now. Too much emphasis is placed on tools and techniques in managing projects and with the growing use of personal computer there has been a great amount of development work on sophisticated scheduling and control systems. These have a major part to play in modern project management but one must not forget that projects involve people. It is the project manager's ability to bring together the project participants and contributors and meld them into an effective project management team that will achieve the project's objectives.

Personal characteristics necessary to fulfil the function of the project manager should be given very high priority in assessing whether a member of the Association of Project Managers can use the designation Certificated Project Manager. Many of these measures are generally accepted at present and it is intended that where relevant subjects exist in faculties of other disciplines they be incorporated into a study programme for Project Managers. This will require a Faculty of project management is to teach only those areas within Project Management, Techniques and processes not taught elsewhere.

Project Management is about getting a team of knowledgeable and skilled people together to effectively implement a solution to a problem. Nowhere should this be more effectively displayed than at the place of education

In order for any further development to take place it is imperative that Project Management be recognised as a profession. This should result in the boundaries of the subject being scientifically described and the natural laws established. Management science needs to recognise the divergence and convergences of the individual person and task being performed. If only machines have jobs how will people buy bread? Economic development can only succeed if the base is widened. One sector progressing at the expense of the other is not progress it is shifting wealth around.

Business development is a producer and social development a consumer. The only way to make real progress is for business development to produce the wealth to finance social development. Social development is bound to this equation through the effective and efficient delivery of projects placing solutions to the ills of humanity in perfect position. Creating databases of projects, sponsors, managers and champions to analyse what works and what does not could result in brining people, money and solutions together to embrace things that work and avoid those that don’t. Best practises that are solution orientated with built in repeatability and incremental improvement result in processes leading to success.

To achieve this the consumption of human capital in parallel with financial capital need to be managed to evolve knowledge and skill. Only then can we cease to be wasteful in our expenditure of all capital resulting in an increasing rate of wealth creation for all living thing to benefit from. Education in skills that employers need and a full understanding of projectised financial systems should be the focus for businesses and social development of the 21st Centuary.

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