Projects are a business tool

Projects are a business tool
© Totally Optimized Projects, 2010-2014
Briefing
1

Projects are a business tool
- to be directed and managed by the business
Projects are how you execute your strategy and business plans, how you improve
your business and its competitiveness.
Projects are a business tool.
This simple statement challenges how must organizations think of projects.
Here we describe the common understanding of projects - if you have any of
these beliefs or attributes you need to take action - now - as they are destroying
significant business value.
© Totally Optimized Projects, 2014
2

The common understanding of projects
Few managers, executives and board members have in-depth understanding of
projects, project principles and their critical success factors.
They are, therefore, mostly dependent on what they’ve been told, seen, heard
and experienced as a participant or recipient.
This is not a strong base.
3

Through this ‘process’ managers are told that project management and methods
will deliver the goods - but that projects are complex and risky.
IE You’re reliant on the project team, but don’t get your hopes up too high.
4

Business management, therefore, largely understands its role as guiding,
supporting and enabling the project team - making decisions, allocating
resources - while accepting project-based tools, techniques, reports and
processes as ‘best practice’.
5

Delivery of poor and compromised results are common - but that’s what’s
expected.
So expectations are low and ‘not what we wanted’ results are tolerated.
6

On the basis that you can only manage what you can measure, management
insists on tight control over time and cost.
But, achievement of desired business outcomes, benefits and value CAN be
measured - separately and cumulatively
(however, this is not widely recognized or supported)
7

Meanwhile, delivery of project deliverables (outputs/capabilities) and their use
in the business remains the goal. This equates to ‘project completion’.
And, if the project is completed on time and on budget - this equals ‘success’.
8

Meanwhile, business benefits and value are expected to be delivered
automatically, are hoped for or are just not on the radar.
Or, they may be baked into future budgets to ‘guarantee’ their delivery - an
approach that only guarantees their minimization.
9

Change is a constant
Your organization will only survive if it is capable of changing continuously,
fast and effectively.
Change is achieved through projects, BUT this is where the problems begin.
The common understanding of projects is flawed and costly.
Many business executives are so frustrated with projects that they’d prefer
to do nothing or, in desperation, will do anything to get a result.
If you recognize any of the following attributes you need our help.
10

Why projects need to be managed as
a business issue
The project based mental models that underpin project delivery methods and
business’ adopted approaches are NOT benefits and value focused.
The project is seen as an end in itself.
Many of the ‘controls’ that exist are designed to protect the project team, not
maximize business value delivered.
11

a business issue
Consequently the tools, techniques and processes required to maximize value -
by reducing delivery costs and increasing value - are largely missing.
But as these value delivery tools do not impact routine project delivery they are
not missed on projects.
Meanwhile, they allow significant business value to be lost.
12

a business issue
The use of project performance measures means the resultant missed, lost and
destroyed business value and associated wastage is not tracked or measured -
the total lost value is invisible to the business.
13

a business issue
But, when made visible, this lost value has been found to be worth more than
50% of a portfolio’s potential value.
That is over 50% of the business’ potential value from project investments is
missed, lost or destroyed using orthodox project approaches.*
14
* Based on research by BCG, McKinsey, United Directions and TOP - results consistent from 1994 to 2013

Simple, effective business change
You don’t need to understand project management, project models or processes.
But you do need to know exactly what you want to achieve from your projects in
clear, specific and measurable business terms.
(And determining what these are needs a simple process that is missing in most
organizations.)
15

Your role is to direct, lead and control your projects to enable them to deliver
your desired business outcomes, value and strategic results.
NB the principal reason for commissioning projects is to deliver the desired
business outcomes, benefits and results. These dimensions therefore need to
drive the project, not be some ‘hoped for’ outcome.
16

Delivery of these outcomes, the value and results determines your business’
capability to operate and be competitive.
Delivered compromises are wasteful and expensive long-term and, therefore,
need to be avoided by being managed out of existence.
17

You need to ensure your projects deliver your desired business outcomes in full
and optimize the benefits and value.
The more value the project delivers, the less workload on the business to realize
the post-project benefits, the less the risk that these benefits will not be
realized and the more value that will be ‘banked’.
18

When all of the business outcomes, benefits and value have been fully delivered
the project investment is complete.
When this value is delivered for the minimum practical cost, this equals
‘success’.
19

Taking action - what you need to do
1
Agree that projects are a business tool and not an end in themselves.
That improving project performance is a business issue.
20

2
Agree that compromised and poorly delivered projects currently adversely
impact your business’ operations and competitiveness.
A project failure is a business failure.
Therefore, this is an important business issue.
21

3
Agree that the current poor project performance figures e.g.
“60% of projects are challenged” (Standish 2006-2013)*
are too wasteful, expensive and are, therefore, no longer acceptable.
Project performance therefore needs to improve - fast.
22
* Challenged means that the project exceeds ±10% of the time and/or budget but does not take into consideration the business value lost by the ‘successful’ projects

4
Agree that the business must regain control of its projects to ensure they
fully deliver the desired business outcomes, benefits, value and results.
Only the business can ensure these results.
23

5
Agree that the common, orthodox project-based tools, techniques and
processes will not deliver the required business changes and performance
improvements.
If they could, they would have.
24

6
Agree that business benefits and value focused tools, techniques and
processes are necessary to consistently deliver improved, high value desired
business outcomes and strategic results.
This is, after all, why you invest in projects - to deliver business results.
You need this to be your ‘norm’, not some aspirational goal.
25

The payoff is immense
Increased value delivered
Increased focus on benefits increases the business value identified, targeted,
managed and delivered.
Reduced cost of delivery
Improved clarity and specificity of the desired business outcomes reduces the
costs associated with unnecessary project work, project rework and missed
opportunities.
Reduced time to delivery
Reduced project workload and increased business ownership of the results
(minimizing resistance to change) reduces the time to deliver.
NB This increase in value can more than double the net value realized.
26

The TOP® solution
And this is where TOP® fits.
It is the only complete business benefits and value based approach to
delivering business outcomes and strategic results.
TOP equips you, the business, to manage projects as a business issue so as to
extract the optimum value from your project investments.
27

The TOP® solution
TOP has been recognized by Gartner (Cool Vendor), The Research Board
(Market leader), Business Schools (Harvard and Cranfield (UK)) and is used
worldwide.
TOP equips you to bridge the gap between strategy, value delivery and results.
Fast and now.
It is available immediately via the cloud.
Subscribe, use and reap the benefits. It really is that simple.
28

© Totally Optimized Projects, 2010-2014
TOP®
Strategy execution and value delivery
For more information visit
www.TotallyOptimizedProjects.com

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