PERFORMANCE. BOTTOM LINE. Productivity. Quality. Cost-benefit. Agility. These words are ringing loud in Human Resource circles. This demand in HR stems from a marketplace that requires high-quality, low-price products and services delivered in a speedy fashion. Because of the pressure, entire organizations have to reorient themselves to conform to the whims of the changing world. The Human Resource areas of companies, therefore, have increasingly been under the gun to show how HR contributes to the company’s bottom line. There is even a trend in some companies to apply the concept of “HR as a profit center.”
To show that organizations are becoming projectized, I ask executives the following questions during workshops and training seminars: “How much of your time is spent in strategizing, planning and implementing projects, as opposed to carrying out routine or repetitive tasks?” Invariably the participants confirm that over 50 percent—often as high as 80 percent—of their time is dedicated to projects.
Could your HR area become a profit center? Maybe you should consider the possibilities.
The next question: “How many of you have been formally trained in the application of project management techniques?” Here the answers vary (from 0 to 50 percent) depending on the company. The final query is, “Who actually uses project management practices and principles to conduct the projects that make up a major part of each day’s activities?” Here the number of hands raised is around 20 percent of the participants. This informal survey gives credence to the view that organizations need to develop more project management competence within the organization.
Project management, based on the classic triad of cost-time-quality, offers solutions the HR function can use to make the contributions that the market demands. For instance, the internal projects necessary to carry out the HR function can be managed using project management techniques. Another contribution to the company can be made through HR by developing project capability across the organization so that all areas of the company will be able to do things “faster, cheaper, better.” Project management can be applied to major organizational change projects, including projects aimed at converting the company to a more dynamic “management by projects” style, by using the principles of Enterprise Project Management. Let’s focus on these three approaches to enhancing company performance through the articulation of project management throughout the Human Resource area.
Paul C. Dinsmore, PMP, PMI Fellow, is the author of seven management books, including Winning in Business With Enterprise Project Management (Amacom, December 1998). This column is adapted from Chapter 7 of that book. He is president of Dinsmore Associates, affiliated with Management Consultants International Group, headquartered in Rio de Janeiro, Brazil, and can be reached at [email protected]. Comments about this column are invited, and may be directed to [email protected].
Improving HR performance Through Project Management. In these changing times, HR executives and managers find themselves spending more time managing projects than dealing with day-to-day management. (If that’s not the case, then the HR area needs to be reexamined quickly!) Since multiple projects are the reality in most HR settings, the types of projects vary; for instance, annual training and development programs, implementation of a new recruiting and selection approach, outsourcing part of the HR function, participation in an Enterprise Resource Planning project, and interface with projects associated with the quality program.
Here’s what is required to make project management a part of an organization’s culture: strong intent and commitment on the part of the decision-makers in HR; an educational and development program for HR people; and a project methodology suitable to the type of project under way. The methodology can be adapted from the classical project sequence, which includes: perform a situation survey; define project objectives; fix strategies; identify tasks; sequence tasks; identify resources; estimate time for tasks; establish dates; review and refine.
Developing Project Management Skills. Three factors are involved in developing project management effectiveness within an organization: (1) a methodology for managing projects that is consistent with other company practices and organizational culture; (2) on-the-job support for the people working on projects; (3) educational programs in project management. The project management methodology for the organization can be based on the classical sequence given above, or other project life cycle or body of knowledge concepts, and adapted to company policies and culture. On-the-job support to project personnel can be provided through external or internal consulting or facilitation so that the practical side of managing projects is dealt with. Educational programs in project management can vary from the fully comprehensive to those aimed only at upgrading knowledge bases and specific workshops.
The educational program needs to target everyone involved in the organization’s projects, including upper management, project directors and project managers, team members, functional managers, partners and key suppliers. Creating a common project language makes for effective communication and high productivity levels.
An effective program consists of three approaches:
Fundamentals: basic management concepts, tools and software for project control; project management basics, based on PMBOK™ Guide techniques
Interactive programs: kickoff workshops, team-building seminars, group integration between partners, clients, joint ventures, and so forth
Specific-discipline education: courses aimed at a specific type of project, such as information technology, construction, research and development or new product launch.
Companies such as ABB, IBM, 3M and Hewlett Packard have broad educational programs in project management, which include the above types of approaches.
Implementing Enterprise Project Management. Enterprise Project Management evolved from the traditional concepts of project management. The Enterprise Project Management philosophy expands these concepts to encompass the organization as a whole and views the company’s activities as a giant “portfolio of projects.” In this situation the HR function acts as a change agent to manage the following activities through project management: change in managerial philosophy; change in organizational structure; introduction of the “project office” concepts; and a broad project management educational program.
Project management’s three-pronged quality-cost-time approach represents a timely solution for HR people looking to boost productivity and make a greater contribution to the company’s goals.
Implementation of Enterprise Project Management requires a structured approach. A simplified road map for moving an organization in that direction is outlined below:
Do a size-up of the organization to evaluate the size of the task of changing the organization
Develop a plan and work breakdown structure for the “Enterprise Project Management Change Project”
Perform executive briefings for higher management
Carry out project management educational programs for middle management
Do specific educational programs for project personnel
Encourage project professionalism through programs such as PMI’s “Project Management Professional” certification
Develop a system for supporting ongoing projects through internal consultants.
AS THE MARKETPLACE DEMANDS more of all areas in an organization, the Human Resource function must make itself leaner and more productive, as well as spread productive practices throughout the organization and facilitate ongoing changes. Project management’s three-pronged quality-cost-time approach represents a timely solution for HR people looking to boost productivity and make a greater contribution to the company’s goals.
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