Project Management: The Third Dimension

We all know that the key to project management making a positive impact on our business lies in the adherence to two basic
principles: Doing the right project (portfolio management) and doing the project right (project management).

Yet often major corporates comply with both of these tenets and still deliver a white elephant. Consider this diagram below, which represents the (hypothetical) Black Bank's Portfolio Management Structure.

In the figure above the Black Bank seems to be doing everything right. Not withstanding the mechanisms by which these processes are implemented (standard software infrastructure etc), we would expect every project to add measurable value to the business.

The truth is: Maybe, maybe not. Let's assume that the appropriate project management infrastructure is in place, and examine a typical Strategic Alignment (PfMgt 3).

Corporate Goal: By 2011 the Black Bank will be the most successful retail banker in Australia.

Business Plan: Align operational expenditure with industry benchmarks.

Program: Streamline operational systems.

Projects: Business Process Review, Migration of data from four legacy systems to one new bespoke system.

Operations: Impact on operations will be in the form of a new core system and associated processes, to be integrated into the Standard Operating Environment.

A project of this scale and criticality to core operations requires more than a "maybe". We need more than the right project managed the right way, we need the right solution. This is where the often neglected third dimension of effective project management is often overlooked, and that is effective and efficient Business Analysis. The Business Analyst will identify the business needs and document the requirements of the solution (in this case, a new software system). That is: What must the solution do, and what proprieties must it have? Often treated as a project in and of itself, the documentation of solution requirements is absolutely critical in the project's production of an accepted product which meets the business needs.

Business Analysis is currently where project management was in Australia 12-15 years ago. We all know of it, we know we need it, but it is often unclear exactly what a Business Analyst (BA) does or what value they bring to the business.

Fortunately, just as the AIPM has played a key role in the promotion and progression of project management in Australia over the last 30 years, there are similar bodies emerging in the Business Analysis profession.

The International Institute of Business Analysis (IIBA) is currently finalising Version 2.0 of the Business Analysis Body of Knowledge (BABoK). The BABoK is structured into six core knowledge areas, as represented below:

© Copyright 2006 International Institute of Business Analysis

Enterprise Analysis:	Enterprise Analysis describes the Business Analysis activities that take place for organisations to: Identify business opportunities. Build their Business Architecture framework. Determine the optimum project investment path for the enterprise.
Requirements Planning and Management:	Requirements Planning and Management defines the resources and tasks associated with the planning and management of requirements gathering activities.

Programme Management

What Is Programme Management:

Whilst there is a strong link between projects and programmes it is important to understand the differences in order to correctly define Programme Management.

Programme management is strategic in nature, often deals with 'the unknown', highly cross-functional and integrates individual elements of related projects in order to achieve business value.

A Programme may need to structure a series of projects. These projects may then be managed by project managers and the programme managed by a programme manager. Programme and project management techniques are then utilised in association.

Some Of The Differences Between Programmes & Projects Include:

Programmes...

1. Normally large / complex threads of work
2. Have a vision of an end state or outcome . but no clearly defined path to get there
3. The path is discovered gradually and projects are often formed to deliver specific outputs
4. Usually major strategic level investments
5. Example: 'Productivity Improvement Program'

Projects...

1. Have a clear start, middle and end
2. Deliver specific outputs
3. Have a clear path forwards
4. Example: New HR management system

PMI (Program Management) & OGC (Programme Management) Overview:

As can be seen below there is a difference of opinion between the Project Management Institute (PMI) and the Office of Government Commerce (OGC) definitions.

OGC Managing Successful Programmes (MSP) Definition: 'The co-ordinated organisation, direction and implementation of a portfolio of projects and activities that together achieve outcomes and realise benefits that are of strategic objectives'

PMI Definitions: Program - a group of related projects managed in a coordinated way to obtain benefits and control not available to them individually. Program Management - the centralised coordinated management of a program to achieve the program's strategic benefits and objectives.

PM-Partners group Programme Management Services

PM-Partners group offer Education and Consultancy services in Programme Management. We are an APMG Accredited Training Organisation (ATO) for Managing Successful Programmes, a PMI Global Registered Education Provider, are registered assessors for the AIPM and can provide individuals and organisations with assistance in training, certification and process development.

If you require any further information or would like to speak to a consultant please call 02 9900 1400 or email info@pm-partners.com.au

Business Analysis

Business strategy execution depends upon developing and implementing the best solution. Sustainable success however, relies upon each solution being based on precise, valid and complete requirements to fully address the issue or opportunity.

According to the Standish Group poor requirements definition is one of the leading causes of project failure, the top three project success factors being:

1.	User Involvement.
2.	Executive Management Support.
3.	Clear Statement of Requirements.

PM-Partners group own research has also shown that 85% of Australian organisations consider Clear, Agreed Project Requirements to be a critical project success factor.

The PM-Partners group Business Analysis Practice is comprised of four streams:

1. Education.
2. Consultancy and Method Development.
3. Project Delivery.
4. Contracting and Recruitment.

Education

The PM-Partners group suite of Business Analyst courses form a comprehensive Learning Pathway for both the emerging and developed Business Analysts, culminating in the sought after Certified Business Analysis Professional (CBAP) accreditation, maintained by the International Institute of Business Analysis (IIBA).

We recommend that individuals seeking to enhance their Business Analysis skills undertake the comprehensive five day course Effective Requirements for Successful Projects. This is the only IIBA endorsed course in Australia which addresses the entire IIBA Requirements Management Framework. Organisations seeking to establish a capability baseline may also choose to undertake a Business Analysis Online Capability Assessment, from which a targeted and tailored training program can be developed. Please click on the diagram to the right to go straight to the relevant Course Outlines.

PM-Partners group is an IIBA Endorsed Education Provider, and every PM-Partners group Business Analysis course has been specifically endorsed by the IIBA.

Consultancy and Method Development

PM-Partners group have over 12 years experience in Business Analysis consultancy and method development. The PM-Partners group team bring expertise from every leading Business Analysis framework and methodology, tried and tested in the field by our subject matter experts. This valuable combination ensures the right mix of innovation and tried and tested techniques for consistent project delivery. Our consultancy services are designed to help an organisation improve or establish their Business Analysis Practice with advisory services, coaching, process and method development.

Project Delivery

PM-Partners group have been working with Australia's leading organisations for over 12 years to offer Project Delivery services. Click here to arrange a chat with one of our consultants, to arrange a project appraisal, project audit, or to see how else our Business Analysis team can run part or all of your project for you.

Contracting and Recruitment

A unique and refreshingly new contracting and recruitment service provided by people that understand Business Analysis and Project Management. PMPeople is the contracting and recruitment arm of PM-Partners group, dedicated solely to Business Analysis and Project Management roles. Visit the PMPeople website for further information about they can help with your next project resourcing requirement.

The PM-Partners group Business Analysis Practice maintains extensive industry involvement, including work with:

1. The IIBA.
2. Development of the IIBA CBAP Exam.
3. The Australian Business Analysis Association (ABAA).
4. The ABAA's Qualified Business Analysis Practitioner credential, and the ABAA Competency Framework development.
5. Regular speaking, sponsorship and presentations for the IIBA Australia Chapter; conferences and other industry events.

Collectively the four streams of the PM-Partners group Business Analysis Practice deliver the complete organisational development package: Education, Consultancy and Method Development, Project Delivery and Contracting and Recruitment.

Contact PM-Partners group today to work with the Business Analysis Industry Experts.

Jetstar airlines recommends project management

"One Stop Project Management Shop" Delivers Savings, Flexibility, Efficiency and Maturity

Sydney, Australia - January 20, 2009

In arguably one of the most competitive aviation environments, low fares airline Jetstar is extending its agreements with project management services firm PM-Partners group that have delivered the business project maturity and major efficiencies over the last four years. Jetstar CIO Stephen Tame says with huge challenges confronting the industry, extending Jetstar's outsourced Project Management and Project Office agreements with Australia's leading project services firm for another two years was a "no-brainer".

"We need to ensure the IT group can continue to deliver first-class services to the business without us having to maintain huge teams," says Tame.

"Moving our projects into a variable delivery model under the agreement with PM-Partners means my team can focus on core business whilst continuing to ensure projects deliver to the business." Tame says whilst Jetstar as part of the Qantas Group is in a strong position with respect to facing existing and emerging external and financial challenges, the low fares carrier still faces the universal issues of all businesses in that it must seek flexibility in both cost and delivery of business projects.

"A significant loss of world capital will challenge many business and IT projects and hit capital-intensive businesses, potentially including airlines," says Tame.

"Fortunately for Jetstar, the company has been running the leanest of shops since its inception in 2004, and today enjoys the lowest operating costs of any Australian domestic carrier and is highly competitive internationally.

"The move to extend the contract with PM-Partners is designed to assist in retaining and even growing Jetstar's cost advantage over its competitors.

"One of Jetstar's advantages is that we modelled ourselves as a lean organisation from when we first started, and we have been working with ITPM, PM-Partners' predecessor, since 2003 and prior to launch," Tame says.

Tame says PM-Partners was selected for its high levels of responsiveness and flexibility.

"Under the agreement with PM-Partners we know that on average we are going to have somewhere between two and two and a half project managers over the term," says Tame.

"However, this can be scaled up on demand. The agreement means we are able to build delivery capability as and when required and can therefore manage a large number of virtual teams."

With Jetstar's business expected to further grow rapidly over the next five years, the agreement allows for flexibility in delivering the required business projects with the avoidance of significant staff costs, and frees up the IT team to focus on running the business.

"When it comes to projects, the IT team's primary function is to act as a steering group over the delivery, and then to receive the project into the business-as-usual functions," Tame says.

"PM-Partners runs not just the Project Management Office (PMO) but the project management itself. So my small team is 95 per cent focused on running the business. The five per cent that we have left we like to use for R&D or looking at how we can innovate the business."

Virtual teams have been involved in a wide range of projects since Jetstar's inception, including the launch of the domestic and international businesses; introduction of an engineering systems solution; rollout of web check-in and airport kiosks; and the current introduction of new operations control and crewing systems. All projects were delivered on time and within budget.

"Airlines are founded on three major platforms: reservations and departure control, engineering and operations. In 2008 we upgraded two of those and implemented new systems, so these are significant business projects," Tame says.

"Our agreement with PM-Partners ensures project maturity. Project management is only an expense if it doesn't deliver an outcome. If the project management does deliver an outcome at the budgetted price, then it's not expensive."

About PM-Partners group

PM-Partners group combines the capabilities of over 65 professionals to offer project services including education, training & certification, organisational capability development, project consulting & governance services, project management, project solutions, project management recruitment & contracting, electronic project management solutions and online tools.

PM-Partners group - recognised in the BRW Fast 100 as one of the fastest growing companies in Australia with an annual growth rate of 50% over the last three years - has a combined customer list that contains Australia's most prestigious corporate and government organisations.