Innovation Project Management - NY SPIN

1 Innovation Project Management Innovation Project Management Series Global Project Management Poor Statistics on Successful Projects Failed systems projects cost more than $100 billion per year - Computerworld One out of every two projects overruns its budget by 180% or more - Computerworld Survey of 300 large companies 65% reported projects were grossly over budget, behind schedule and technology nonperforming - KPMG. 65% of companies have lost control of at least one major Project - Forrester Research 31% of 8,380 projects cancelled - while only 16%. were on schedule and on budget - Standish Group Breakthrough Technology Series Bob fannin Global Project Management 2004 by GPM. Why aren't Project Success Rates Increasing? Increasing Complexity due to need for greater Innovation 50,000 PMPs 120,000 PMI Members Growth of PM Advocates and Practitioners Demand for Innovation : Complexity Time-to-market 1990 91 92 93 94 95 96 97 98 99 2000 01 02 03 04. Innovation Project Management Competitive Innovation Series' Bob fannin Global Project Management 2004 by GPM.

2 An Innovative Project Cost Time A General Definition: Quality a significant endeavor, usually mission critical unique and unclear as to outcome limited skilled resources with extraordinary and dynamic constraints in time, cost and quality to bring about a beneficial change which may not be able to be expressed clearly Innovation Projects are Different from Traditional Projects 1. Rapid Technological Changes 2. Unclear Scope Objectives 3. Rapid Changes in the Market 4. Scarce Resource Constraints 5. Unsure of Time Estimates 6. Greater Need for Creativity 7. Knowledge Intensive New Approach for Innovation Projects 1. The Need for Portfolio Management Techniques 2. Being Scope Change Friendly 3. Planning Done on a Shorter Time Frame 4. The Need for Managing Knowledge 5. Planning for Rapid Phased Deliverables 6. Working with Scarce Resources 7. Fully Engaging Team Creativity 8. Deploying Highly Talented People Innovation Projects Innovation Portfolio Planning Align Projects to Prioritize Functionality Organizational Objectives Scope Planning Set Strategy to Organizational Planning Deliverables Objectives Define Development Phases Define Your Risk Tolerance Plan Initial Phases Execution Phase Phase N Review of Success Criteria Execution Phase Phase 3.

3 Compare Deliverable with Objective Execution Phase Phase 2 Use Success Criteria for Finalizing Execution Phase Phase 1 the Deliverable Final Approval Phase 1 Detail Plan Acquire Scarce Resources Schedule Phase Tasks Execute Review Progress for Phase 2 Plan Innovation Project Management Competitive Innovation Series' Bob fannin Global Project Management 2004 by GPM. Traditional Project Investment Profile Return on Investment Point of Diminishing Returns Breakeven Point t j ec o Pr on n f u l t i tatio e s s n ta men cc m e l e Su ple I mp Im l a yed POI De Failed Implementation Time to Market POI = Point of Implementation IPM Intensive Project Investment Profile Return on Investment an Pl t ion 2. 3. ta e e en 1. as as e m ple as Ph Ph Ph IPM Im IPM. ect IPM. oj Pr nal ditio a Tr POI for Phase 1 POI for POI for Phase 2 Phase 3. Time to Market POI = Point of Implementation Return on investment Added return due to Intensive Project Return from Traditional Project Setting the Development Plan Example: PDA Upgrade Project Aggressive High Value Low Risk Strategy Strategy Proposed Estimate Estimate Phases in Days in Days Phase Bluetooth Communication 178 Infra Red Input/Interface 54.

4 Phase One Infra Red Input/Interface 54 Larger Display 84. One Larger keypad Phase Faster Com Link 102 34. Two 154 New Exterior Design 66. Cell phone Capability Phase New Exterior Design 66 Faster Com Link 102 Two Phase Larger Display 84 Bluetooth Communication 178 Phase Three Milspec Durability 76 Milspec Durability 76 Three Larger keypad Cell phone Capability 34 154. Phase ------- ____ ___ Phase Four ___ Four ------- ____. The Traditional Approach to Innovation Innovation Cycle Time BNP. B Net Cash Flow Profit Period Recognition Phase Tb Tf Tr To Opportunity occurs Tp Opportunity perceived Time Project Phase To Tp A Ts BET Te Tb Project activity begins Tf Product definition and plans freeze Commercial Phase Tr Product is released to production Profiting Phase Ts First customers are Recognition Project Commercial Profiting Maturity satisfied Phase Phase Phase Phase Phase BET Break-Even Time Maturity Phase Te Project becomes extinct An Enhanced Innovation Life Cycle Longer Commercialization Cycle 2 Step Strategy: Earlier Project Initiation Shorter Project Execution Greater Profit 1.

5 Develop strong market Shorter Innovation Cycle intelligence Benefit: Early Project initiation B BNP +BINP. Anticipation Period due to Good Due to Improved Anticipation Increased 2. Use intensive Project Market Intelligence Net Profit investment to meet the Cash Flow Period Tb Tr earliest release date Ta Time To A BET Te This maximizes profits and improves the overall competitiveness Anticipation Project Commercial Profiting Maturity Phase Phase Phase Phase Phase An Enhanced Innovation Life Cycle Longer Profiting Cycle 2 Step Strategy: Earlier Project Initiation Shorter Project Execution Greater Profit 1. Develop strong market Shorter Innovation Cycle intelligence Benefit: Early Project initiation B BNP +BINP. Anticipation Period due to Good Due to Improved Anticipation Increased 2. Use intensive Project Market Intelligence Net Profit investment to meet the Cash Flow Period Tb Tr earliest release date Ta Time Te To A BET. This maximizes profits and improves the overall competitiveness Anticipation Project Commercial Profiting Maturity Phase Phase Phase Phase Phase Management Techniques Business - Management by Objectives 2003.

6 2004. 2005. Projects - Management by Exception Innovation Projects - Management by Transition Replan & Replan & Replan &. Phase 1 Phase 2 Phase 3 Phase N. Management by Transition Plan/Prioritize Detail Plan Execute Review of Deploy Innovation For Next First Phase First Phase 1st Phase Objectives Phase Plan Results Results Detail Plan Execute Review of Deploy For Next First Phase Second Phase 2nd Phase Phase Plan Results Results Detail Plan Execute Review of Deploy For Next First Phase Third or Final Final Phase Phase Plan Phase Results Results ! ". Managing Team Energy Managing Time Purpose Fuels Performance Rewards Fuel Performance Work is a Series of Sprints Work is a Marathon Downtime is Productive Time Downtime is Wasted Time Focus on Full Engagement Positive Thinking Innovation Project Management Competitive Innovation Series' Bob fannin Global Project Management 2004 by GPM. ). ci pl es o f APM: Basic Prin * $. ". ". + ) ". ! ". " ". " ). ". , $. # ".

7 ". ). - ". % &. ! $. ' ( . "". "" ( ! /. Source: Agile Software Development, Robert C. Martin, Prentice Hall, 2003.)