by DharamCW | May 7, 2023 | General
The project management office (PMO) is increasingly evolving from an administrative role to one that is strategic and more closely connected with business drivers. As a result, the PMO plays an important role in generating corporate value as the pace of business rises along with the expectation of faster returns on investment.
Traditional administrative PMOs fall short of meeting this need. Therefore, a mindset change and a reinvented project delivery capability that is both commercially astute and agile are required. Furthermore, such a PMO must comprehend and implement the plan.
In this article, we’ll look at the factors driving the shift to strategic project management offices (SPMO), also known as Enterprise PMO or EPMO, the essential features of a value-adding PMO, and game changer ideas to help you alter your PMO and improve its profile in your business.
What is Strategic PMO (SPMO)?
Strategic PMO (SPMO)
A Strategic PMO is a project-centric business department that should be structured and managed like other business departments – with enterprise leadership setting goals and objectives that assist the organization in thriving. The demands of individual organizations will lead to variations in what it means in specific terms. Still, we can expect a focus on the following areas:
- Portfolio management – Generation of ideas, selection, execution, and realization of benefits. Portfolio Management is a huge area, and organizations will adapt to it as it becomes increasingly crucial.
- Financial management – The PMO, closely linked to portfolio management, must be accountable for ensuring that project investments are acceptable and fit with business goals. The PMO must also guarantee competent budget management during project execution. Furthermore, the PMO should be held accountable for monitoring and tracking the benefit realization tasks of the business units.
- Enterprise-wide project-related processes and approaches Strategic risk management (i.e., managing the portfolio’s organizational risk exposure, proactive risk selection to match organizational tolerance, and so on), integration of finance and benefits, consistent quality standards, and so on.
Focus areas of Strategic PMO
- Proactive resource management – Capacity and capability planning, skills inventory management, and so on – ensuring that the project execution functions have the appropriate people with the right skills at the right time.
- Strategic partner – This borders on cultural change, creating the PMO as an independent and impartial consultant to the organization on project execution. PMOs, like IT, must demonstrate that they are business leaders supporting the organization’s work rather than a tactical execution-only function.
Different levels of PMO strategic alignment
Within an organization, a PMO can function at three stages of ‘Strategic’ maturity:
Different levels of PMO strategic alignment
- Strategy Creation – Strategy Creation entails assisting organizations in determining which strategic options to pursue (and then translating them into projects – Strategy Delivery – and managing their success – Strategy Management). It is unusual for a PMO to achieve this level of trust and influence inside an organization. Still, it is the (possible) future for the enterprise PMO that is effectively embedded within an organization and fortunate with the right sponsorship.
- Strategy Delivery – Strategy Delivery is the process through which the PMO turns important strategy objectives into new projects to be added to the portfolio (and perhaps to remove some from the portfolio if such objectives have changed). The ‘Strategy Supervision’ capability backs up this ‘Strategy Delivery’ capability. The PMO may also take direct responsibility for the execution of large and complex programs (or projects) that are specifically critical to a key strategic effort, such as relocation activities.
- Strategy Supervision – Strategy Supervision of strategic intents through project ownership, each of which should directly or indirectly link to a strategic intention of the overall organization. ‘Strategy Supervision’ is where the PMO acts as the Executive’s governing and advisory body by:
- Validating that all projects undertaken correspond to one or more strategic initiatives.
- Monitoring the current and right alignment of projects and strategy.
- Making stall-and-kill recommendations for initiatives no longer correspond with current corporate strategic thinking.
Five Steps to Creating the Strategic Enterprise Project Management Office (SPMO)
Today’s organizations recognize that fewer and fewer initiatives are self-contained inside individual departments and increasingly straddle multiple business functions. Project management offices (PMOs) have traditionally been connected with IT, partly due to technology’s role in all projects. However, with technology increasingly transitioning to contribute to those business transformation initiatives, keeping the PMO as an IT role is ineffective.
The appropriate response to this trend is a single, enterprise-wide EPMO. Many firms using EPMOs, however, fail to perceive an increase in project execution speed. In addition, here are the five key steps to achieving long-term EPMO success:
Five Steps to Creating SPMO
- Define the company’s goal.
- Create appropriate leadership and accountability structures.
- Communicate the purpose, responsibilities, and alignment.
- Respond to measurements and outcomes.
- Create a road map for actual evolution into a business function.
The Rise of the Strategic PMO
The strategic PMO may play a crucial role as a custodian and evangelist for business benefits realization, giving important information to the Executive on which projects deliver value across the organization. In addition, the insights provided by the SPMO may help with crucial decisions like which initiatives to fund, which projects to kill, or re-prioritizing or re-balancing work portfolios to reflect changing business or market conditions.
Not all PMOs must be strategic in character. For example, a PMO embedded within a project or program might focus on the project’s day-to-day resource management and administrative needs. However, the decision to start the project should have been taken at a strategic level. From the start, the project-level PMO should have been aligned with the Strategic PMO’s reporting and governance structure. The SPMO should be able to make micro and macro business choices based on accurate and timely project data flow up into the program and, eventually, portfolio level.
The Strategic PMO plays a key role in championing and driving business value for the organization and being an effective change enabler. Here are the five major game changers that will propel the PMO and project organization to the next level.
5 Major game changers that will propel the PMO and project organization to the next level
- Demonstrating Project Leadership and Vision
- The Importance of Realistic Planning
- A Culture of Disciplined Execution
- Effective Stakeholder and Change Management
- Creating a “Value Lens” for Managing Enterprise Investment
The strategic project management office is critical to increasing project maturity and optimizing the organization’s business return on project investment. People, processes, data, and technologies must all be prioritized to achieve this objective. Project management is a multifaceted endeavor that is both an art and a science.
Leveraging the future of PMO to drive new strategic opportunities
In recent years, businesses have been subjected to a slew of external forces, the most significant of which has been Covid-19. These disruptors have caused firms to adapt, whether to work around obstacles, shift to new working methods, or adapt to Industry 4.0. All of these variables influence organizational complexity, both strategically and operationally. Businesses must not only respond proactively to all of this complexity; they must also prosper while operating in a resource-constrained environment. As a result, today, more than ever, the PMO’s ability to efficiently deliver projects and transform organizations of all kinds and across many locations is critical to achieving their goals.
Projects must be completed at scale to create transformation for a company effectively. A McKinsey & Company study of over 5000 large-scale projects discovered that 56% generated less value than planned, 45% went over budget, and 17% were so disastrous that the organization’s survival was threatened. This study highlights the need to make adequate efforts to select PMOs who can adapt to the future of work.
Historically, PMOs have been viewed as lacking a clear identity or purpose within an organization; however, the future-state PMO is an enabler of business value creation, collaborating with business leaders to provide a clear and achievable roadmap while making the best use of the organization’s limited resources.
3 Aspects that PMOs must embrace
PMOs must also adjust to the new normal and growing business demands. The three areas described below represent the fundamental features that PMOs of the present and future must embrace to manage change effectively.
- Technology & Automation
Because Covid-19 has accelerated the way we utilize technology in our daily work, technology is expected to be front and center, enabling PMOs to deliver more successfully. To effectively adapt to new methods of working and build a “single source of truth,” advanced technologies and cloud-based solutions will be required. This technology jump is critical for borderless operations in which progress and transparent communication must be readily available and updated in real-time to allow for swift decision-making.
In the future world, both artificial intelligence and machine learning will be important facilitators of automating PMO procedures, delivering superior insights, and allowing teams to spend less time on manual transactional processing and more time generating value for projects. For example, project planning is often based on data collection, industry benchmarking, and using the experience of project managers. However, according to PMI – AI Innovators, there is still a significant inefficiency in project management, with around 1/3 of traditional project management activities requiring one or more days of manually collating reports. Using IoT and big data to automate various tedious processes allows the PMO to create more realistic and effective timetables and spot potential disruptors.
However, it is unlikely that technology will completely replace project managers, with the PMI forecasting that businesses will require over 88 million project managers by 2027. As a result, PMs will be expected to improve their competencies and fully utilize the available technologies.
PMOs will be required to lead by example in their automation projects, advocating new methods of working with their collaborative organization in the future. As a result, the paradigm of efficiently providing workstreams may evolve, driving firms to become more digital.
- Agility
With an increased level of complexity for transformation and multiple stakeholders to handle, projects may need to adapt and pivot in other ways than originally planned. Changes in priorities (39%) and objectives (37%) and the inability to adapt are the two leading reasons for project failure, according to PMI.
As a result, PMOs that can be responsive to change needs continually are critical to fulfilling project milestones, which might mean the difference between being an industry leader or a laggard. An agile PMO’s guiding principles are as follows:
- Decentralization of planning and decision-making
- Agile resource allocation and reallocation
- Workflows that are effective for continuous project advancement
An agile PMO may demonstrate agility by altering priorities and reallocating resources to achieve new objectives while transitioning seamlessly from reorganization to continuous delivery. Furthermore, decisions are decentralized, allowing faster response rates for recognizing and reducing hazards. Finally, communication is critical, with fewer layers of approval, and output is assessed by how much work can be done in a particular sprint.
However, merely establishing an agile PMO will only solve some difficulties; 47% of agile projects are late, have budget overruns, or result in dissatisfied consumers. A cultural revolution is required to fully realize agile’s potential, beginning with the leadership team and spreading across the firm.
As a result, the PMO cannot only act as an intermediary but also as a business partner, working alongside the leadership team and the rest of the organization. Team members must be self-sufficient, accountable, and have complete insight into project progress and data.
- Strategy
The PMO’s role must evolve from a team offering mere assurance to becoming a strategic partner with a vested interest in aligning with the organization’s ability to carry out its plan. As a result, the team is expected to have stronger strategic oversight of all work streams to deliver value throughout the project.
PMOs will be required to go beyond task completion and monitoring to include:
- Portfolio planning entails generating ideas for the activities required to capitalize on the opportunity.
- Project prioritizing entails determining the most effective timeframe and budgeting by the company’s demands.
- Capacity planning entails assigning the appropriate skills and resources to each work team.
- Resilience planning entails anticipating future obstacles and reducing interruptions.
- The strategic partnership is a cultural transformation in management and the PMO. The PMO is viewed as a business leader and adviser with a stake in the organization’s goals.
The key to success is consistent stakeholder engagement, with the PMO and business leaders holding frequent strategic discussions to monitor and coordinate company strategy and broad strategic objectives. This consistency will build a collaborative strategic management process and a fluid communication channel to adjust quickly and efficiently.
The future PMO will be more strategic and intricate in character than conventional models, emphasizing driving decision-making, execution, and outcomes while becoming more decentralized to interact with each workstream to achieve one common goal efficiently. Finally, PMOs will be more crucial than ever in addressing the complexities that organizations are now confronting. An effective transformation will need PMOs to serve as the organization’s voice and face.
Strategic project management office’s role in strategy execution
Strategic project management office’s role in strategy execution
Identifying, implementing, and managing strategic initiatives is critical to strategy execution. The strategies are implemented by creating strategic initiatives to support strategic objectives and fill gaps in strategic measures, and the value gap is bridged. Only projects that are connected with the strategic goal should be accepted.
When defining strategic initiatives/projects, the sequence of initiative execution is crucial since all related strategic initiatives must finish and provide value. The strategic initiatives cover almost all departments and corporate shared services. As governance becomes more important in project management, portfolios and programs are defined.
- Strategic initiatives are linked to similar programs and project execution.
- The projects will be managed by program managers, project managers, and another project team.
- Connecting programs and projects creates portfolios for portfolio managers and other project governance teams.
- Project, program, and portfolio definition is an iterative process reviewed multiple times to ensure interconnectivity and value generation.
Portfolio, program, and project management are critical components of strategy execution. Hence, everything is referred to as a Strategic Project Management Office (SPMO) or Enterprise Project Management Office (EPMO).
Final Thoughts
Organizations can only thrive in a highly competitive world if they innovate. Such innovation must occur at all levels of the organization, including goods, services, business processes, and business models.
The PMO has the authority to execute the innovation at all levels. Good project management regulates and fosters innovation through projects—customer satisfaction and profit growth when consistent outcomes are predictable. Project and program management practices establish the foundation for dependable plan execution. The efficacy of the organization’s initiatives and programs will influence corporate success when such practices are implemented throughout the organization.
The project management office (PMO) is a key change management component, working with other organizational structures, such as functional units, to improve project management competencies. However, in today’s competitive environment, businesses must rely on more than just solid strategies to secure success.
To succeed, managers must build organizations capable of attaining their strategic objectives faster than their competitors. This initiative involves the creation of organizations capable of performing today’s tasks more effectively while anticipating future disruptions. Successful execution of creative and strategic concepts leads to innovation. Competitive advantage is as much about execution as it is about strategy.
Feel free to check out my discussion on this topic with Justin Buckwalter in YouTube
For any questions related to your Project Management career, training, and certifications, you can book an obligation free 15 minutes session with me by visiting http://talktodharam.com/
You can subscribe to the vCare Project Management YouTube Channel to catch future videos of our Q&A series and certification success stories: https://bit.ly/2YF0wJl
You can subscribe to and follow my podcasts and interviews with Project Management Experts on YouTube at https://bit.ly/2NDY8wd
by DharamCW | Feb 24, 2023 | General
To be successful in project management, professionals must adhere to specific values like honesty, responsibility, respect, and fairness, which are central to the project management profession and are encompassed by ethics in project management. Therefore, understanding these values and how to apply them is essential for working in project management.
Ethics is important in day-to-day interactions and behaviors in the project management world. “Ethics is about making the best possible decisions concerning people, resources, and the environment,” according to the PMI (Project Management Institute). Ethical decisions can reduce risk, advance positive outcomes, build trust, determine long-term success, and build reputations.
Ethical Decisions
Corporate leaders are responsible for ensuring that their employees practice ethics in the workplace. Failing to follow ethics might result in numerous scandals. The project manager must ensure that all projects are managed and executed efficiently and ethically. If a project manager is ethical, they can influence the project team to work ethically and ensure that all project work is done ethically.
PMI has identified four values for ethical behavior in the project management profession, which can be applied amongst project team members to maintain project loyalty and ethics.
Honesty: Be genuine in your communication and behavior
Responsibility: Take responsibility for your decisions and actions and the consequences that result from them.
Respect: Admire yourself, others, and the resources entrusted to you, such as people, money, and reputation.
Fairness: Decisions and actions should be unbiased, and behavior should be free of favoritism, self-interest, and prejudice.
Therefore, project management professionals must follow the Project Management Institute’s (PMI) Code of Ethics to ensure that all decisions taken are in the best interests of stakeholders and the project team.
Project Management Institute’s (PMI) Code of Ethics
Transparency & Integrity in Project Management
Project management transparency characterizes a team’s open communication and visibility culture. Information in project management is on a need-to-know basis and is not readily available to everyone. A lack of transparency can lead to resentment or even distrust within the team. Transparency can advance a manager’s career, but it can harm the project manager’s reputation and career if carried out improperly. Therefore, there are many facts to believe that project managers should place a high value on openness and honesty.
The project manager’s transparency can lead to:
- Better performance and accountability
- Eliminates project derailment
- Enhancing teamwork
- Make sure people understand their tasks.
- Communicate openly and explain changes
- Provide and encourage feedback
- Promote knowledge-sharing
- Increase visibility with the right tools
- Focus on project budget
Project Integrity
As a project manager, acting with integrity with other project team members entails being open and honest about their expectations, intentions, and thoughts on their work. In addition, one must have the integrity to make the project team complete the project on time, within budget, and within the project’s scope.
Here are suggestions for acting with integrity with team members:
Be Impartial:
- Be objective and fair.
- Listen to both sides of the tale and different points of view without becoming attached to one in particular due to prejudice or favoritism.
- Rather than patching problems, objective decision-making fleshes them out and allows teams to get to the bottom of them.
Be Thorough:
Complete tasks entirely and thoroughly and validate the steps against a project management methodology of choice. This action ensures that a much more comprehensive project management plan and supporting documentation are created.
Be Focused on the End Business Result:
Regardless of when team members are introduced into the team, they should confirm initial business requirements and the work requested within the scope of their project role. This process enables them to provide their input based on their subject matter expertise, increasing the likelihood of project success.
Influence is a key component of leadership
To influence means to impact other people’s behavior, opinion, and choice. Influence is not the same as power or control. Instead, it is about recognizing what motivates employee commitment and applying that knowledge to boost performance and positive outcomes. The ability to influence others is a necessary leadership trait.
A leader’s ability to influence others is founded on trust; the project manager’s influence grows directly to the level of trust in a relationship. An effective leader motivates team members to act not through coercion but by eliciting their desire and conviction in the leader’s vision and goals. A leader who positively influences others through focused and deliberate effort will gain trust and become a driving force toward excellence.
Let’s look at how leaders can effectively build trust and influence with others.
- Establish credibility
- Engage with team members and build a connection
- Clarify expectations and practice accountability
- Share process knowledge
- Be open to influence
Relationship between stakeholders and project manager to maintain trustworthiness
Communication accounts for up to 90% of a project manager’s job. Conflicts can arise, and projects can fail if there is ineffective communication within the project team. Transparency in the project requires open, two-way communication with stakeholders about the status of a campaign. It keeps clients and stakeholders informed of campaign developments and other project activities.
Why is transparency important for stakeholders?
Transparency is essential in a client-facing project for one simple reason: it fosters trust. When project leader gains the trust of their stakeholders, they are more likely to gain their cooperation and guidance. Maintaining positive stakeholder relationships requires trust, and project stakeholders’ importance cannot be overstated. The support of the stakeholders is critical for project success.
Six Tips To Increase Project Transparency With Stakeholders
Six tips to increase project transparency with stakeholders
- Create a stakeholder register to track stakeholders
- Communicate the level of transparency upfront
- Inform the stakeholders of the expectations.
- Involve them in key decisions and milestones
- Be proactive about difficult stakeholders
- Communicate consistently
Digital Transformation’s Impact on Project Management
Project managers have continued to manage project planning, acquisition, and execution, but their work is evolving with digital transformation.
Most project managers have already incorporated workflow and process automation technology in a few specific areas, like reporting and scheduling. And the majority of them are using digital platforms for project management which can help them stand separate.
How does a project manager acquire the knowledge and experience necessary to lead a digital transformation? What qualities are essential for this type of leader?
PMI’s 2018 Pulse in-depth report ‘Digital PM Skills’ survey conducted by Forrester Consulting for PMI among HR professionals and project managers and identified the top 6 digital-age skills required to get adapted in the digital transformation, like:
- Data science skills
- Innovative mindset
- Security and privacy knowledge
- Legal and regulatory compliance knowledge
- Ability to make data-driven decisions
- Collaborative leadership skills
Cybersecurity’s impact on projects
Project management and the need to establish objectives that protect information security are necessary for today’s project management world. Organizational fragility and vulnerability have increased due to digital transformation, and the proliferation of data and information has become abundant, so it is necessary to safeguard the data from getting misused. Therefore, many businesses are incorporating new elements into their projects to protect their information’s vulnerability, like:
- Security Plan: For the project’s security, a project leader must be aware of the risks to be addressed to develop a security plan. Taking them into account will help them chart the course of the plan and focus on the project’s objectives.
- Business requirements: The project manager must understand the project’s security requirements and business objectives to ensure its completion and success.
- Responsibilities: Each team member should be clear about their responsibilities in terms of security. The well-known RACI (Responsible, Accountable, Consulted, Informed) responsibility assignment matrix is used by many project managers, which aids in ensuring that project objectives are met.
- Security by design: Information security must be considered from the start of a project and throughout the process. Automating processes will improve project success and builds project security.
Pointers to incorporate cybersecurity in project management:
- Determine the project’s sensitive information.
- Evaluate the members’ responsibilities.
- Implement a level of information sensitivity.
- Understand security standards and regulations.
- Include security goals in the project’s objectives.
- Determine the company’s legal responsibilities to the information.
Technology vs. Ethics
Every facet of an organization disrupted by technology shows a possibility of gaining or losing stakeholders’ confidence and commitment. Technology advances can easily outrun the ethical standards that govern their application. Technology’s impact on project ethics is progressing similarly, with employers establishing ethical boundaries that violate employee privacy rights and limit communication abilities.
Some of the technology’s impact on project ethics
- Monitoring Team’s Communications
Project team leaders have monitored employees’ communications during working hours to keep employees focused on work tasks. In addition, because of digital technology and Internet access, there are more chances that project team members can get diverted and utilize the facilities in their personal activities.
The changing definition of the workplace impacts the ethics that underpin the traditional eight-hour work time. It is not ethical simply because technology allows project leader to access their employees and request work at any time. Increasing the working hours to nearly more than their actual hours also blurs the ethical lines in employee compensation.
Employees with restricted access to company property, such as a cell phone or personal computer, may treat it as personal property. An ethical issue may arise when an employee uses office property for non-work-related activities, such as looking for a new job or making personal calls. An employer must establish a clear policy regarding using company property loaned to an employee for business purposes only. This policy enables an employer to develop an ethical standard for using technology.
Ethical Decision Making in Project Management
Decision-making in project management is essentially a great reminder to project success. A truly accomplished project leader inspires, motivates, and builds a strong group that aids their team objectives. The concept of ethical decision-making has also been a focal point in improving project decision-making.
The ethical decision-making process and its roadmap
Every day, a project manager might make thousands of decisions and can come up with the best solution within nanoseconds of hearing about a problem. However, managers must regularly make major decisions incorporating more diligence, forethought, and collaboration with their colleagues. The failure in decision-making can create severe implications and chaos. Thus, organizational performance depends on good decision-making.
Decision-Making Process for Project Managers
Four steps that can comprise a basic framework for project managers’ decision-making process are:
1) Identify the problem
2) Generate alternatives
3) Decide on a course of action
4) Implement
Ethical Dilemmas in Project Management
The bigger the project, the greater the potential for people or businesses to compromise their moral standards to finish the project on schedule and within budget. The outcomes of project managers and other stakeholders ignoring debatable activity are disastrous, like blown budgets, legal concerns, and even criminal charges, which are too frequent in today’s project environment. Moreover, many businesses are aiming for 100% automation and implementation in the project management process. The project managers need to take charge of these initiatives, which might result in ethical dilemmas involving stakeholders, technology, or communities.
Ethical dilemmas arise when circumstances contradict the project manager’s professional standards or moral values. The project managers must ensure that a project fulfills its social responsibility and well-being commitments by keeping its long-term goals in mind.
Ethical Dilemmas in Projects
Some Ethical dilemmas in projects include
- Conflicts of interest
For project managers, conflict of interest is a major ethical concern. A conflict of interest occurs only when an individual or group has multiple interests in a project, which may hinder the integrity of the process.
- Accepting responsibility
When a project goes wrong, managers may be tempted to blame workers, supervisors, or vendors for protecting their position. The manager may also consider concealing any evidence that could implicate them in the project’s failure. However, when a project does not go as planned, project managers have an ethical responsibility to accept their failures and start focusing on finding solutions to problems and getting the project back on track.
- Maintain safety standards
Project managers who limit safety standards to save money eventually discover the high costs of not enforcing safety standards with their team. Conversely, a project manager who follows proper safety standards can save a project from incurring costs ranging from minor errors to severe injury or death.
- Favoritism and prejudice
A project leader must not “pick winners” or show bias toward team members. Project managers should choose the participants based on their abilities, not personal preferences. A project manager who shows prejudice toward workers based on race, ethnicity, religion, gender, or other criteria compromises the project’s integrity and exposes the company to a discrimination lawsuit.
- Health and Safety Concerns
Large enterprise projects have high risks and intense deadline pressure. This pressure, unfortunately, can occasionally cause stakeholders to overlook or even hide problems that could endanger the health and safety of project associates or the general public. Although these problems are more likely to occur in the manufacturing, healthcare, or construction sectors, project managers in all sectors should be ready to notify authorities whenever they spot a potentially dangerous situation.
Does project loyalty depend on the individual?
Ethical behavior is essential in all aspects of life, personal and professional. Being an ethical professional benefits everyone, both individually and on a societal and organizational level. Organizations that practice ethics can make their employees optimistic, boost their confidence, and increase their dedication. They can easily draw new clients and consumers due to their honest and ethical behavior, which can significantly improve the project’s sales and profits.
The project manager’s responsibility in Project Management is to manage projects effectively and ethically, as projects are the primary means by which organizations achieve their goals and objectives and develop new services and products. Suppose a new product development project is managed and executed with unethical decisions and actions. In that case, the product will fail to impress and attract customers, resulting in a huge failure and a significant loss in terms of time, project budget, and resources. Customers, clients, and employees value honest and ethical behavior. Thus, a project manager can ideally follow the PMI Code of Ethics and Professional Conduct, which states that they must be honest, respectful, fair, and responsible.
Feel free to check out my discussion on this topic with Thomas Walenta in YouTube
For any questions related to your Project Management career, training, and certifications, you can book an obligation free 15 minutes session with me by visiting http://talktodharam.com/
You can subscribe to the vCare Project Management YouTube Channel to catch future videos of our Q&A series and certification success stories: https://bit.ly/2YF0wJl
You can subscribe to and follow my podcasts and interviews with Project Management Experts on YouTube at https://bit.ly/2NDY8wd
by DharamCW | Dec 18, 2022 | General
Artificial Intelligence, the most common and vibrant technical term in the 21st century, has begun to rule the world stage with its intelligent functionalities. There is no doubt that AI is transforming the productivity and workflow of various industries around the world. However, there may be a constant concern about human job opportunities in the coming years. Organizations have gradually realized that Artificial Intelligence requires collaboration with human employees, and ample job opportunities are emerging.
Impacts of Artificial Intelligence on Project Management
Project management has evolved significantly in the last decades. According to an IPMA & PwC report, 56% of organizations has already digital transformation projects, including AI adoption. The current adoption of AI among project professionals is expected to move from 27% to 35% in the next three years.
The organization must consider that successfully implementing projects in the digital age necessitates new skills and different focus areas for project managers. There is a growing demand for digital literacy, critical thinking, and creativity skills, replacing traditional project management skills such as teamwork, communication, and the ability to build effective relationships.
Benefits of AI in Project Management
Benefits of AI in Project Management
Aggregating task statuses to generate weekly status reports, calculating the budget implications of increasing scope and timeline, and performing risk modeling are all functions that an AI technique in your project management software can provide. Here are a few more advantages of AI-enhanced project management:
- Employees receive personalized coaching based on their learning habits.
- Increasing project success by releasing resources from routine operational tasks.
- Observe how a project is progressing and make educated predictions about its future.
- AI can keep track of budgets and schedules.
- Capability to manage complex analytics.
- With its unique ability to monitor patterns, AI is a capable project manager’s assistant.
Digital Skills for Project Managers
Businesses are creating better products and stronger customer relationships at an unprecedented rate. They rely on a workforce with the necessary skills and experience to deal with the effects of disruptive technologies. Organizations combine those experts with data and digital tools such as artificial intelligence and machine learning that allow for agility and speed.
Digital Skills for Project Managers
Top Six digital-age skills for Project Delivery
1. Data Science Skills
Data science is the umbrella term for data management, analytics, and big data. It focuses on Project Managers’ ability to extract meaningful knowledge from available data to improve project outcomes. Data science is expected to play an increasingly important role in all stages of project development, from planning to completion.
2. Innovative Mindset
Today’s project teams are being asked to do more with less. That means that Project Managers who can think creatively and find new ways to achieve great results will be in high demand in the job market. Skills and experience are no longer sufficient. It is now critical to provide examples of one innovative mindset in the workplace.
3. Security and Privacy Knowledge
Today, most businesses and individuals are concerned about data security. In addition to the legal requirements, there is a general expectation that all personal and project data is handled securely. This skill is becoming increasingly important as more projects rely on digital information systems.
The best Project Managers contribute to the security of the projects they manage. They are aware of the requirements and collaborate closely with their IT and legal teams to ensure that data security guidelines are incorporated into each step of project delivery.
4. Legal and Regulatory Compliance Knowledge
Ensuring the project is legal and regulatory compliant is not new. Leading Project Managers are always aware of this. The difference that the digital age brings is the growing need to act as a bridge between project teams and the IT, Legal, and Data Protection teams, all of which are critical to the process but need little understanding of each other’s areas of expertise.
5. Ability to Make Data Driven Decisions
Using data to make sound business decisions is core to the best practice of project management. Today’s challenge is synthesizing the massive amount of data available to gain useful insights that propel a project forward. Data is only useful if it is appropriately interpreted. The best project managers use cutting-edge tools to make informed decisions and gain an advantage.
6. Collaborative Leadership Skills
Because of remote working, outsourcing, and cross-functional teams spread across multiple locations, Project Managers today require collaborative solid leadership skills more than ever. Their ability to establish standards and bring team members together (even if only virtually) for the sake of the project is becoming increasingly important. Project managers who can implement collaborative platforms and work management tools to improve their team’s work will outperform their competitors.
An Emotionally Intelligent Project Manager
Emotional intelligence can be referred to as our ability to recognize, control, and communicate emotions. People with high emotional intelligence understand how they feel, what their feelings imply, and how their feelings affect others. In interpersonal situations, it is also the ability to empathize with others. Emotional intelligence is about creating a positive work environment, which is critical to the success of any project.
According to a LiquidPlanner study, most project managers commit approximately 10% of their time to people-related activities. Top project managers dedicate 70% of their time to these activities. As a result, emotional intelligence is critical to project success.
EI skills that a Project Managers require
Some EI skills that project managers require are:
- Intra – Personal – Ability to know and manage yourself
- Inter–Personal – Your ability to interact and get along with others
- Adaptability – Ability to be flexible and to solve a wide range of problems
- Stress Management – – Ability to manage stress
- General Mood – Ability to be positive and in a good mood
Project Managers with Emotional Intelligence
Emotionally Intelligent Project Managers
Project managers with high emotional intelligence have a better chance of success, better physical and mental health, good work relationships, and lower stress levels. Project managers with emotional intelligence can also:
- Successfully manage difficult situations
- Express themselves clearly
- More flexible
- Solution-oriented
- Keep cool under pressure
- Motivate themselves to get things done
- Have a growth mindset
Project Leadership in “DIGITAL AGE”
Over the last decade, the project management practice has evolved from a simple guide for project managers to a deeper understanding of organizational maturity and business agility. However, to capture the true essence of organizational maturity and business agility, the project management practice needed to evolve again, this time by adapting to the needs of the digital world.
According to a PMI’s report, The Project Manager of the Future, which surveyed over 450 HR professionals, over three-quarters of these organizations recognized the importance of project managers understanding disruptive technologies. They were actively recruiting project professionals with specialized skill sets required to manage the impact of disruptive technologies. But what are these skill sets?
Skills to manage the impact of disruptive technologies
- Technology
- Mindset
- Operating Model
- Business Agility
The Digital Space and its Components
Beyond using digital transformation as a token, project managers must gain a thorough understanding of the digital space and its various components, such as the Internet of Things (IoT), Artificial Intelligence (AI), Blockchain, Virtual Reality (VR), and Mixed Reality (MR).
Qualities of a Project Leader in Digital Age
Along with that, the project leader must have these qualities in the digital age:
- A human with a “Magical wand”
- Continuous learning & fail fast attitude
- Strong affinity for novelty
- Work smarter than harder
- Breaking industry boundaries for a shared future
- Better Understanding of Innovation & Creativity
- Never consider digital as the only outcome
Digital transformation in project management is more of a collective mindset than a task that can be checked off as completed. It describes a vision that needs constant improvement and encourages future innovation and growth.
3C’s need to be followed by project leadership in the digital age
Here are the 3C’s need to be followed by project leadership in the digital age:
- Calm – Inspire more trust and better performance.
- Connect – People will forget what you said, People will forget what you did, and People will never forget how you made them feel that moment.
- Communicate – The biggest problem in communication is the illusion that it has occurred.
Challenges faced by Project leadership Teams
1. Disconnected & disengaged remote workforce
HR leaders and project managers nowadays, regardless of industry or size of business, assume that connecting with people within the organization is becoming increasingly difficult. Remote working, prompted by the pandemic, has only exacerbated the situation. But why is having a connected workforce important?
A well-connected workforce means employees and the company’s vision, mission, and values are connected. Employees who might feel isolated and disconnected from the business and its goals and objectives, regardless of where they work, are likely to feel disengaged and demotivated, which may affect productivity and efficiency at work. Here are some ideas for how businesses can manage disengagement and create a more connected workforce.
- Use technology to stay connected
- Recognize the good work
- Implement Open Culture
2. Uncertainty in decision making
Project managers strive to conform to all elements and avoid uncertainty in project management to ensure the success of their endeavor. However, no one can predict the future. Working on large, complex projects, such as those in technology, frequently entails high uncertainty in terms of time, cost, and scope, as well as uncontrollable external forces such as inflation, regulation, and financing constraints. These factors can impact a project management system’s ability to assist managers in leading and monitoring projects. Therefore, the project management must comprehend the process of applying decision analysis techniques to the practice of project management, like:
- A process that can assist project managers in improving their ability to make decisions under uncertain conditions.
- A process that can assist project managers in confronting
- Resolving the realities of the project management—uncertainty, external influences, and risk.
Challenges faced by Project Leadership Teams
3. Loss of company culture
Employee attitudes, values, beliefs, behaviors, and underlying assumptions comprise organizational culture. Furthermore, culture is important because it forms the foundation of the business logic applied to any specific decision or problem; there is a minimal chance that something will be done that violates the culture because it would mean contradicting fundamental beliefs.
An organization’s culture, which is not supportive of project management, may be perceived as an additional burden and an impediment to daily work.
4. Lack of alignment
Project success begins with good project management practices and a good team. But how do you make sure they’re in sync? Especially when alignment requirements can take many forms, such as alignment to the overall strategy, stakeholder expectations, mandated processes or policy, or delivering the right things at the right time and in the right way.
Moreover, business organizations may require precise alignment of project strategy to prevent projects from duplicating work or producing useless deliverables to reduce waste and manage costs. Strategic thinking is one way to foster the game-changing power of aligned organizational strategy to project outcomes.
5. Low morale
Employee morale is employees’ attitude, contentment, loyalty, and willingness to give their all and actively contribute to their employer’s success. It’s also about how they feel about their job and workplace.
Strategies to improve Employee Morale at your workplace
If the employee morale is low, it may reduce motivation and efficiency. Employees with low morale produce only the bare minimum of work. As a capable leader, improving workplace morale should be one of your top priorities. According to an SHRM survey, 67 percent of employers find it challenging to maintain employee morale. However, the good news is that the following strategies can help immediately improve employee morale at your workplace.
- Be prepared to manage change
- Challenge your employees
- Conduct team-building activities
- Pay attention to your employees’ physical and mental health
- Spend money on training and development
Tips to improve project performance at your organization
Revamp Project Team Performance
A combination of managerial skills and software tools are used to improve project performance. Ensure that the team understands the goal of every project, has access to open communication channels, and understands the importance of tasks. In addition, project management software can create consistent project plans and automate time tracking and billing to improve project performance. Here are some tips to improve project performance at your organization.
- Process Orientated to People Orientated
- Reactive Approach to Proactive Approach
- Binary Metrics to Holistic Analysis
- Scheduled Retros to Real-Time Pulse
- Individual Evaluation to Team Evaluation
The Five Dysfunctions of a Team
Patrick Lencioni, the author of “The Five Dysfunctions of a Team” examines why effective teams are so rare and offer specific recommendations for removing barriers that lead to dysfunctional teams. The work of Lencioni outlines the causes of team dysfunction and what can be done to overcome each one.
5 Dysfunctions of a Team
The five dysfunctions which have been compared with project management are:
- Absence of Trust – Teams that lack trust conceals flaws and mistakes, are hesitant to seek assistance, make assumptions about the intentions of others, harbor grudges, and dread meetings.
- Fear of Conflict – Fear of conflict results from a lack of trust. Most companies’ employees are more concerned with politics and personal risk management than problem-solving. As a result, meetings are frequently boring because contentious issues are avoided.
- Lack of Commitment – When teams avoid conflict, they fear failure. These teams struggle to make decisions and constantly second-guess themselves.
- Avoidance of Accountability – Second-guessing and a lack of common objectives lead to an inability to develop performance standards. Team members miss deadlines and produce mediocre results.
- Inattention to results – When teams lack focus and clear objectives, team members become stagnant, distracted, and self-centered.
High-performance teams
High-performance work teams are critical to how most organizations perform and carry out their work, resulting in superior performance and a significant competitive advantage. A high-performance team also requires the following to function effectively:
- Uplift the quality of work.
- Mentor guidance to increase productivity.
- Peer-to-Peer monitoring & building a competitive environment.
- Facilitating & enriching the team to handle emerging project delivery practices.
Nurturing the Right Culture
Building an organization’s strong project management culture opens the door to numerous benefits and improves customer service. Organizations with solid project cultures operate under a unique value system that aligns each team member with objectives and goals on a budget, time, and target. Professionals today are expected to demonstrate a wide range of skills and juggle multiple organizational tasks.
Steps to create High-Performance Culture
5 Steps Involved in Creating High-Performance Culture
- Fostering an environment to encourage innovation.
- Adapting to new and disruptive technology shifts.
- Creating a culture that views disruptive technologies as an opportunity to evolve the best practices.
- Encouraging project managers to take advantage of flexible practices that allow them to evolve project scope/requirements due to rapid technological changes.
- Expecting project managers to adapt to new opportunities and challenges to succeed in the age of digital disruption.
Conclusion
To capitalize on all opportunities created by technological disruption, the most forward-thinking organizations rely on the power of project leaders. One significant competitive advantage is where project leaders are prepared, willing, and able to assist their organizations in surviving and truly thriving in the face of massive change.
However, innovative organizations recognize that project leaders with the necessary digital-era skill sets do not appear by chance. As a result, innovators understand the importance of investing in three key areas:
- Skills, training, and development
- Tools and approaches
- Culture
Feel free to check out my discussion on this topic with Thomas Walenta in YouTube
You can subscribe and follow my podcasts and interviews with Project Management Experts on YouTube at https://bit.ly/2NDY8wd
You can subscribe to vCare Project Management YouTube Channel to catch future videos of our certification Q&A series and student success stories using the link https://bit.ly/2YF0wJl
For any questions related to Project Management career, training, and certifications, you can book an obligation free 15 minutes session with me by visiting talktodharam.com
by DharamCW | Jun 20, 2021 | Personal
Today is the day I was born again with the freshness of wellbeing and feeling the goodness of staying alive. Yet another birthday reminder set in my gadget resonates in the morning hours flashing in screen “Happy Birthday Dharam, it’s your 51st year on this beautiful earth”. Freezing my alarm bell, I sit in solitude silence with many thoughts running in my mind, “What Next, What Next, and What Next.”
After performing my daily yoga routine, I start to feel relaxed and think about sharing my experience of how I survived and thrived during this pandemic through what I call a “What Next Approach” to achieve success. As we see the historical strategies, I came across a P-R-S (Problem, Reaction, & Solution) strategy that perfectly matched our current scenario. Here the problem is the COVID-19 crisis, and we need a reaction, i.e., a call to action (What next action will we take)—finally, moving forward is the solution of surviving throughout the crisis till it ends. Surviving and thriving are synonymous with each other. Surviving is like riding a car or a bike, and thriving is the fuel. If the engine stops due to lack of fuel, that’s where the problem begins.
P-R-S strategy
The “What Next?” Approach
Oprah Winfrey Quotes, “Don’t worry about being successful but work toward being significant, and the success will naturally follow.”
“What Next” is a focused and futuristic approach by asking certain simplified questions to yourself and finding the best solutions to your problems during uncertainty. The list of questions given below varies individually, and you can frame “What Next Questions” depending upon your scenario. It is a self-consciousness assessment, where you will be the learner and solution provider for your wellbeing. It enables us to derail faulty thinking where we make decisions that our future selves so often later regret. I am trying to share a common template that could be useful for all.
Q1. What next to make my life better than it was before?
Q2. What next steps should I take to make progress in my professional career?
Q3. What next specific outcome you’re seeking?
Q4. What next critical behavioral change you want to do with?
Q5. What next set of trade-offs am I going to make both on the personal and professional front?
The “What Next?” Approach: Finding the Root-Cause Analysis
Current Self vs. Future Self
Einstein quotes, “Imagination is more important than knowledge.”
Imagination design your future self. Your current self creates a fixed mindset, content with whatever status you are in and stopping the roadmap for achievement. Future self generates a growth mindset and pushes us to move forward towards our goal. An uncertain future breaks you apart emotionally and behaviourally, which impacts your mindset. It ultimately leads you to cognitive dissonance, which refers to a situation used to create mental discomfort that results from holding two conflicting beliefs, values, or attitudes. We all need to break these silos within ourselves.
Empathy not Sympathy
Empathy not Sympathy
My caring for self is caring for other people. That’s what we need to establish in ourselves. Sympathy as a common feeling does not give us positive outcomes, but empathy bridges the negativity gap. Renowned psychologists Daniel Goleman and Paul Ekman have identified three components of empathy: Cognitive, Emotional, and Compassionate. So put it together, we can be mentally strong, emotionally stable, and compassionate towards the family and people we work with. Empathy helps us to overcome anxiety, embarrassment, regret, sadness, shame, and stress.
Forward-thinking leaders
Leaders are the pillar of strength to the foundation of an organization. The old school of leadership thoughts is diminishing and has created a “Leadership Vacuum.” This vacuum can be fulfilled only by forward-thinking leaders who think beyond growth by understanding the good and bad corporate world that is in place. These leaders are empathetic and have a transparent working model put in place. They connect, collaborate, and create a cohesive ecosystem for the employees to achieve their vision and goals. The whole world is filled with uncertainty, and there is no certainty that the desired objective can happen or not. Forward-thinking reshapes the decision-making process of uncertain events within the stipulated time, avoiding greater loss to the organization in the future.
Digital Adoption
As we have moved from industrial evolution to digital evolution, it is a fast-paced movement that professionals need to sync with adaptability. Until March 2020, being an individual traveling worldwide for my training programs, COVID-19 had checkmated my plan of action. It directly impacted my business, which forced me to rethink my business model. The change to digital transformation was imminent. We need to change our mindset to move on to adopt digitalization. My shift to online training programs paid dividends. I stress individuals be from the working class or in business, choosing the right tools and team are critical in achieving success despite testing times.
Adoption
Being Physically Active during this Pandemic
Research shows at least 150 mins of physical activity per day is required for a person to stay healthy and live longer. Most people will be spending time with exercise by going to the gym, swimming, running, be in some form of sports activities, etc. unfortunately, COVID-19 has shut down all the avenues due to social distancing. Physical activity depends on the intensity you do, and it is measured based upon it. The intensity ranges from moderate intensity to vigorous intensity, along with muscle and bone strengthening.
Division of Nutrition, Physical Activity, and Obesity, National Center for Chronic Disease Prevention and Health Promotion (CDC-DNPAO), details the Physical Activity for Particular Age Types, which I have shared here for your reference.
Types of Physical Activity
Another interesting measurement is the MET (Metabolic Equivalent of Task) which offers insight into how an individual’s variation in age, height, and body mass may influence the intensity of physical activity.
With the help of these, I am able to ascertain where I stand and plan to be more active and more productive by doing my regular physical activity routine. I got the opportunity to practice Yoga at a young age which led me to be super fit. With mudras, pranayama, and Yoga asanas, I overcame the physical disability (clubfoot) that I was born with. Gradually Yoga has made my mind, body, soul, and my entire lifestyle strong and disciplined. Yoga has created a positive synergy with extraordinary benefits both on the personal and professional front with stress-free life.
Later on, it motivated me to become a Yoga teacher to my community back in Sydney, Australia, through YiPEE (Yoga in Park for Extreme Energy) Yoga from 2011. With YiPEE Yoga, I was able to conduct free yoga sessions during the weekends to the community. In the USA, I plan to organize free community Yoga sessions once all the pandemic-related restrictions are over and people are back to normalcy. But, for now, I continue to practice Yoga indoors and record these sessions that are later shared on my Youtube Channel.
One such session that I plan to do is scheduled the day next to my birthday and during this International Yoga Day, 21st June 2021. The session is intended to communicate the true value of Yoga and realize how individuals can add quality to their mind as Yoga is all about enriching the mind and empowering the body. Yoga is the journey of the self, to the self, through the self.
Join Link: https://bit.ly/3xw4O4u
Date: Monday, 21st June 2021 [Southeast Asia & Oceania],
Sunday, 20th June 2021 [Americas]
Time: 6:00 PM – 7:00 PM (PDT) / 7:00 PM – 8:00 PM (MDT) / 8:00 PM – 9:00 PM (CDT) / 9:00 PM – 10:00 PM (EDT) / 6:30 AM – 7:30 AM (IST) / 9:00 AM – 10:00 AM (SGT/MYT) / 11:00 AM – 12:00 AM (AEST)
You can subscribe to my YouTube Channel to watch all my podcasts and interview sessions with leading project management experts, along with my yoga session videos at https://bit.ly/2NDY8wd
“The Why” and “The How” of my life
Why and How
Tracing back from a humble beginning and reaching the peak of the career path is not an easy achievement. The upward curve of my life is decided by calculated risk, a strong decision-making process, and nurturing from rightful mentors who fined tuned my path towards success. As we live in a pandemic world, and most professionals are into a midlife crisis, it is time to overcome the delusion it creates that pushes us into a panic mode. Midlife crisis is a crisis of identity at the age of 35-40 explored and researched by eminent Swiss psychiatrist Carl Jung and German-American psychologist Erik Erikson, who coined the word “Identity crisis.” On the worrying side, this delusion leads to depression and affects the biological clock of the individual.
Midlife Crisis
The solution that I adopted is clearing structuring, “The Why” and “The How” of my life. “The Why” streamlined by behavior and attitude, whereas “The How” clearly defines the stages and transition in midlife crisis.
Devising self-structured questions which purely depends on your circumstances and the yardstick you’re in. Here I am sharing one question on each subline;
- Why should I live with a standardized life course?
- How can I live with an extraordinary life course?
Simple but thought-provoking questions that every man and woman would have come across. The anxiety of aging, dissatisfaction with not achieving things, and social instability created by the surroundings take a toll on us personally and professionally. I urged myself not to quit and create an obsessive focus to live an extraordinary life with extraordinary aspirations. That obsessive focus should be on what you can control and not on things you can’t control. The critical aspect is to strike a balance between family and network. I created a cluster pool of networks during my migration to Australia, which stabilized my way of living.
Persevere
Perseverance is one of the greatest skills you can develop during this crisis. First, you have to decide to put yourself in the category you strive for, either a standardized life course or an extraordinary life course. I chased for the latter by getting out of my comfort zone as I clearly understood that success is not a comfortable procedure. I envisioned myself getting out of this crisis through better companionship with my family and kids. They are the ones who complement “The Why” and “The How of my Life.”
Organizations ignore the middle-level managers who are profoundly between the ages of 30-35 in the organizational structure. It is the right time to spearhead those people to overcome the delusion created by the midlife crisis by proper people management and engaging them with psychological counseling. Organizations need to revisit their handling of human resources by taking steps to create work-life integration rather than work-life balance. We can’t regret losing talented professionals in that time zone. “People Value” should outweigh “Profit Value.” Let’s create a “Happiness Greenhouse” and overcome this together.
At vCare Project Management, I train individuals to be resilient project-program-portfolio management professionals and achieve success in the time-intense examinations required to obtain the most elusive advanced PMI certifications, viz. the PgMP® and PfMP®. Through my systemic approach, I unleash their full potential, enabling them to turn their aspirations into reality. As on 7th June 2021, Out of 3660 PgMP®s across the globe, 330 are my students spread across 46 countries. As on 6th June 2021, out of 1106 PfMP®s across the globe, 65 are my students who have empowered me with a 100% success rate.
If I can do it, sure can you.
Inspire yourself, and Inspire your surroundings.
Let the change begin from today!!!
Working Together For Success!!!
by DharamCW | Apr 20, 2021 | General
According to the PMI (Project Management Institute), “Ethics is about making the best possible decisions concerning people, resources and the environment. Ethical choices diminish risk, advance positive results, increase trust, determine long term success, and build reputations. Leadership is dependent on ethical choices”. Ethics represent a crucial differentiator in a highly competitive market where reputation and values are highly appreciated among the Project Management Professionals.
The Time Is Always Right to Do What Is Right
Martin Luther King Jr. said, “The Time Is Always Right to Do What Is Right”. As project managers/program managers or portfolio managers, we must make critical decisions daily. Though in the evolving digital transformation world, many decisions might go unnoticed, few do get noticed, as critical ones. These decisions have a profound impact on people, resources, and the environment. Some decisions might have led to conflicts, dilemma, or the creation of new risks.
What is Ethics, and what is the Role of PMI?
Ethics is the branch of knowledge that deals with moral principles. It involves steps, including systematizing, defending, and recommending concepts of right and wrong behaviours.
Regarding ethics at PMI, in the year 1981, the PMI team formed the PMI Board of Directors on Ethics, Standards, and Accreditation. The current PMI ethics document outlines the essentials of ethics based on Vision, Responsibility, Respect, Fairness, and Honesty. PMI expects its members to adhere to these codes of ethics to uphold its values.
Essentials of Ethics
When the whole world is fighting the COVID-19 situation, and demand for digital transformation projects is at an all-time high, PMI professionals need not ask for a better time to establish high ethical standards. Let’s understand the key challenges a PMI trained professional faces in the current digital transformation world.
Digital Transformation
Digital transformation is the process of using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements.
There are four types of digital transformation: business process, business model, domain, and cultural/organizational. We often see corporations focused solely on the process or organizational transformation.
Digital Transformation
There are three essential components of a digital transformation:
- The overhaul of processes
- The overhaul of operations, and,
- The overhaul of relationships with customers.
The crucial elements that every digital transformation program needs to focus on are,
- Customer focus
- Organisational structure
- Change management
- Transformational leadership
- Technology decisions involve the whole c-suite
- Integration of data
- Internal customer experience
- Logistics and supply chain
- Data, security, and privacy
- Evolution of products, sales, and process around the delivery
- Digitisation
- Personalisation
The key aspects of the digital transformation world could have a major impact on Ethics.
Major impact on Ethics
The transformative effect of Process with Digital Technology: Award-winning Author James Moor in 1985 mentions the transformative effect Digital Transformation could create. He cites the example transformation of manual votes to Electronic Voting Machines, which might benefit from speed and accuracy. On the contrary, it could impact security, vulnerability, transparency, and trustworthiness related issues.
Projects executed in Virtual environments: Today, the projects get implemented in remote places – Home/Office/Small Office combinations. People are working from remote, and it has become the new normal. People significantly use collaboration tools and in some occasions even communicate using social media, which could be manipulative.
Blogging/Newsletters/Social Media Platforms: Professionals tend to share the experience and insights reflecting upon the work ecosystem. Either sharing happens as an experience in a newsletter or a blog post, or it could be even a Twitter thread or a simple tweet reflecting a view. This act is typically done by those who tend to be expressive even within a professional organizational setup.
Global and fast-moving digital society: Communications spread very fast, and a diverse global culture leaves very little control. Digital technology, which is supposed to help leverage, could turn dangerous. The expectation for responsiveness sometimes leaves very little room for interpretation.
Real-world pressures or Peer Competition: Today’s real-world information sharing creates unwarranted peer pressure. This pressure might develop dilemmas and force individuals towards adverse decision-making. Sometimes, due to competitive peer pressures or financial pressures, even the employees’ health and safety concerns might get overseen.
Confidentiality and data security issues: Enhanced digital transformations across the globe have made data exchange easier. In the case of a data expose, it is vital to understand what is exchanged and what is the importance of the exchanged data. Lack of understanding of the data classification at appropriate levels could become risky when the proper accountability level could not be ascertained.
Disruptive AI Tech: Disruptive AI tech such as Chatbots, Speech Recognition Systems, etc., has made the way we think of data and decision making. Too much dependence or flawed inference might have an impact.
Ethics focus on PMIs Performance Domains & Digital Transformation
When a portfolio/program/project vision is established and defined, observable outcomes between the current state and future state as part of the digital transformation must be counted in. The key components that would impact the above said performance domains would be done with re-imagination, cultural change, and cross-functionality.
Digital transformation might have changed in a newer business model, new product focus, and a more contemporary way of working. Digital transformation is about getting the technology right and building necessary support and buy-in from the people managing resistance. Business processes need to be horizontally redesigned to enable collaboration across the teams.
PMI’s Program Management Standard
PMI’s Program Management Standard defines five performance domains that can be integrated with ethics, giving a significant shift in ethics adoption, and may help in improving overall digital transformation initiatives. They are:
- Benefits Management: Benefits profile, which would be based on outcomes and measurement, has to have the ingredients of the ethics as well.
- Strategy Alignment: Strategic alignment to focus on the changing business environment and strategic targets on digital transformation must be governed through ethics.
- Governance: Governance focus and establishes control related to programs. Governance would bring discipline and ethics into the broader organizational structure.
- Stakeholder Engagement: Stakeholders to be kept well informed on the ethical aspects of getting involved whenever any changes in stakeholders.
- Program Lifecycle: Given a structure and suggested flow for a program, the ethics principle has to be adopted to address dilemmas related to circumstances of a business and initiative.
5As Decision-Making framework
PMI has recommended the 5A’ss decision-making framework outlines with Assessment-Alternatives-Analysis-Application-Action. The 5A’s assessment helps to collate all the facts about the ethical dilemma. It considers all your choices. Subsequently, decision candidates are identified and tested for their validity. Apply these principles to the candidates and make the final decision.
5As Decision-Making framework
The decision-makers, when they adopt the 5A decision-making framework, the following checklist:
Assessment
- Does it adhere to the law?
- Does it comply with PMI code of ethics ?
- Does it comply with the organization code of ethics?
- Does it comply with the professional conduct ?
- Does it comply with the ethical values and culture of ecosystem?
Alternatives
- Whether alternatives are listed ?
- For the given choices do we have pros and cons ?
Analysis
- What kind of impact it would make ? (Positive/Negative)
- Does it count in cultural differences ?
- Is this decision taken considering long term impact ?
- Is this decision taken without any external influence ?
- Were you calm and unstressed during this decision ?
Application
- Will the decision be for larger good ?
- Has the decision is without any bias ?
- Is this fair for all concerned ?
Action
- Will you take responsibility ?
- Would you be ok to make your decision public ?
- Are you ready to act ?
Benefits:
When the portfolio managers and program managers adopt the above-said approach outlined in the PMI code of ethics, it provides the following benefits:
- Elevates the profession and raises future standards
- Increases the faith and trust among peers
- Imprints on individual moral mindsets and behaviors
- Improves business relationships across the board
- Promotes fair decision making
- Reduces project risks
- Reduces anxiety and stress and ultimately turnover in projects
Conclusion
Transparency and integrity must be the core values which has to be established by the professionals. The data must be used in responsible and ethical ways during the digital transformation initiative. Data collection has to be based on the ethics principle called “Informed Consent.” The actions cannot be intrusive, manipulative, or disrespectful to others.
Trust must be established among the individuals, groups, or organizations involved in the digital transformations. This trust can be created by establishing data provenance, traceability from the source to the user interface. Program managers or portfolio managers have to act without any bias and with a high level of integrity and impartiality. The same has to be established for the clients, suppliers, and subcontractors without any favoritism and giving them an unfair advantage.
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