+++ Resource management and project management developments +++ The key PMO trends for 2020 and the future of project management +++
By Johann Strasser Read article in German
Let’s begin by taking a look at the latest developments in project management. We hear a lot about an economic downturn and in some German industries this is already clearly being felt. Will this have an effect on project management? In our opinion: no.
We feel that management, and especially portfolio management and multi-project management, are heavily intertwined with the corporate leadership, culture, and strategy in many companies. Established processes ensure a clear overview of the increasingly complex environment of multi-project management. This enables problems to be quickly detected, which is especially important in difficult economic times. It’s our opinion that every aspect of multi-project management will become increasingly important in these times, rather than less so.
Based on this assumption, we’ve prepared a list of what we see as the 12 key project management trends for 2020. In this article, we want to share with you our current opinions and experiences. These are based on our client projects, seminars, and discussions relating to the latest developments and forthcoming trends.
We hope these assessments and forecasts will help you choose the right strategies for your environment. You may find that this article simply confirms your ideas regarding the future of project management.
At any rate, we would be grateful if you could leave us some feedback in the comments section at the end of the article. Regardless of whether you agree or disagree, we appreciate your feedback! All feedback is important. Many thanks in advance.
Trend 1) Complete resource plans wanted
Let’s start by accepting that the problem of resource scarcity is not going to get any better. The trend toward optimizing the workloads of the available employees will continue. Those responsible will have to keep trying to make the unpredictable predictable.
To do so, they need to know what their employees are currently working on – not just in projects but also with the ongoing daily operations. Involving team leaders in the coordination between project and line management is essential. Only by consolidating the two perspectives will the resource planning be complete and therefore reliable.
To make matters worse, new demands for projects and fields of expertise appear at increasingly shorter intervals. Greater flexibility in strategic capacity planning is required.
For this reason, PMO and portfolio managers require even better support in variable scenario planning. They need to decide, based on the priorities and availabilities of the coming months and years, which new projects to launch and when.
There is a growing awareness that rough yet complete resource planning is more helpful for this purpose than precise planning for only a few projects. The rule of thumb “complete and sufficient” is increasingly acceptable.
If you are not satisfied with your resource planning, you can read more about Introducing and improving resource planning here.
If you are not satisfied with your resource planning, you can read more on the topic of introducing and improving resource planning in this article.
Trend 2) Sharing Knowledge Will Take You Further
Resource conflicts arise from not having enough suitable staff members to assign concurrently. The more similar the skill sets of the available staff members, the easier it is to assign them. This automatically minimizes the conflicts.
So, the problem is not the actual number of people available but rather the scarcity of certain skills. To counteract this, you should ensure that the experts share their knowledge at least within the individual teams. Although it may be faster to do something yourself in the short term, in the long term things go faster if you’ve shared your knowledge with others.
In agile environments, this mindset is the norm. Yet for many established traditional organizational structures, adopting this kind of thinking will be a major challenge. This is happening more and more though, especially among the younger generation.
You might also enjoy reading: Skills Management: What Skills Will Your Resources Need When?
To reduce resource conflicts, knowledge carriers will have to share their expertise. @tpg_comClick to tweet
Trend 3) Fixed teams deliver better results
Agile teams are, by definition, fixed teams that truly work together to deliver usable results. They define the feasibility and scope of the expected result and divide this into sprints. This ensures greater clarity in what can realistically be achieved and what can’t. Everyone involved knows their own capabilities, what they can depend on, and where there are doubts. In this situation, it’s much easier for team members to share their expertise within their familiar, trusted team.
The agile methodology demands that the outcome be a usable result. However, this result can deviate from the original plan if the customer agrees. Most important is that the result be useful and achievable.
In the end, those responsible are expected to keep their promise, which means that they shouldn’t make unrealistic promises in the beginning. The key to success here is the team’s continuity together with the team’s sense of responsibility.
In addition, there is the iterative collaboration of the product owner and/or project manager together with the stakeholders and frequent feedback. Whether or not this will continue to be called Agile or not is unimportant:
You can read more here Resource conflicts in projects – can agile planning reduce the risk?
The key to successful projects is having fixed teams that bear responsibility. @tpg_comClick to tweet
Trend 4) Cross-Company Projects Favor Cloud Solutions
What if your company lacks the necessary knowledge, particularly in some areas of the ubiquitous digitization? Knowledge can’t be shared if it doesn’t exist. So, the “make or buy” question will gain importance in the future.
At the same time, the choice of flexibly usable components has grown in many industries. Joint developments across companies are therefore becoming increasingly common. We believe cross-company collaboration in projects will continue to increase.
This is also an important driver that will further intensify the use of PPM software in the cloud. Cloud solutions facilitate this kind of collaboration, at least from a technical point of view. Licensing is also easy in this case, as each company involved pays its own share of the temporary licenses. Alternatively, these licenses can be invoiced in a transparent way.
Lack of expertise in the area of digitization increases cross-company collaboration in projects and leads to appropriate cloud solutions. @tpg_comClick to tweet
5) More Customer Projects with Agile Implementation
Among customers, there is great uncertainty about what and how to order in today’s VUCA world. Thus, the trend goes towards more and more agile development orders in collaboration with other departments or companies.
Learn more about the role of the PMO in our VUCA world in this article.
This is less and less about complying with a fixed specification. After all, such a specification is not yet available at the time of ordering. Increasingly, projects are about ensuring the benefit of a deliverable, as formulated by the customer, with the aid of agile methods.
This trend can be observed across many industries, even far removed from software products. Yet, the growing software component in products and solutions is a decisive driver for the dissemination of agile methods. Though this trend is not new, it is still far from its peak.
Read this article to learn which method fits your project – agile, traditional or hybrid.
The growing software component in products and solutions is an important driver for the dissemination of agile methods. @tpg_comClick to tweet
Trend 6) Traditional and agile tools are best used together
Another software tool trend for the coming years is the effort to blend traditional and agile functions. Developers of traditional systems are working to add agile functions such as kanban boards, sprints, and burn-down charts.
Those in the agile world are adding bar charts for top-level sprint planning and are making inroads into the area of portfolio management and resource management. So far, however, the efforts to blend the two have not yet really been successful.
We are often asked to depict projects using phases and milestones for external use, but with sprints for internal use. It would therefore make more sense to concurrently use tools for project management and work management together. Make sure, however, that you integrate these tools to ensure that data are shared efficiently between the diverse IT landscapes.
Integrating project management and task management tools optimizes their use and acceptance @tpg_comClick to tweet
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Trend 7) Open-ended results deliver greater benefits
The attempt to complete complex projects by a fixed deadline with what appears to be clear specifications has failed often enough. This costly learning experience, once made, increases the appreciation for the frequently discussed open-ended results that characterize agile approaches as opposed to traditional fixed goals.
The openness towards the ultimate result found in agile approaches can deliver a generally accepted result with a greater benefit than the originally intended goal would have done. This benefit is thanks to the frequent coordination discussions between the customer, project manager, and project team. These discussions provide clarity on the desired and feasible results.
Frequent coordination discussions are theoretically possible in traditional projects as well, but usually don’t happen. In agile teams, however, this is actually done.
With traditional methods, it can happen that the targeted goal doesn’t deliver the intended benefit, which means that in the end there’s less success or satisfaction. We think this insight will gain acceptance.
In projects with yet uncertain goals, it pays to push for an agile approach right from the start! You won’t miss the apparently clear goal, but rather achieve the goal that was mutually set.
The open-ended results of agile methods will end up leading to greater marksmanship. @tpg_comClick to tweet
Trend 8) Project managers, as communication experts, are accountable for the benefit
The logical implication of the above trend is that the project manager has a greater influence on the final outcome when using agile methods. After all, the goals are formulated during the course of the project.
Future project managers will therefore not only be responsible for the deliverables but also responsible for ensuring the benefit that these deliverables are supposed to provide.
The trend is increasingly toward the global procurement of ready-made hardware components from external suppliers that are then internally adapted using software. This will demand a whole new set of skills from project managers. Communication skills will become ever more essential. The teams will increasingly provide the necessary technical expertise.
All this broadens the demands placed on project managers. So, make sure that you take this trend into account when creating a training plan for future project managers.
Future project managers are jointly responsible for the benefit provided by deliverables defined in agile ways. @tpg_comClick to tweet
Trend 9) Change management concurrent to project management
In years past, project management was used primarily to produce achievable results. The projects were successful when the deliverables were received as ordered.
In today’s digital world, a project can also involve numerous organizational changes. To ensure that these projects are successful as well, it’s important to handle the organizational changes with the same respect as the contextual ones.
Ensure that the people affected by these changes are sufficiently prepared and supported. This needs to be done right from the beginning when planning the project.
Whether managing these changes is also the responsibility of the project manager depends on the scope of these changes and the number of people affected. However, it probably is a good idea to obtain the services of a change management specialist in such cases. This idea isn’t new, but nowadays it isn’t just merely discussed but also acted upon.
For more information: Change Management – Why Project Managers Need to be Change Managers as well
Projects that don’t take change management seriously are especially prone to failure. @tpg_comClick to tweet
Trend 10) PMO bears greater responsibility
Without standardized methods, processes and tools, there will be no success in multi-project management – neither with a traditional nor with an agile approach. If you are going to implement organizational changes as well, it’s important to carefully plan and manage these changes. The PMO will be held far more accountable for this than was previously the case.
Digitization has led to projects in areas that were previously handled by operations without the need for project management. By allowing the PMO to lay the groundwork, you enable this integration to go smoothly.
There is a trend to let the PMO set the pace across departments with regard to producing results in and around projects – along the company’s entire value chain. Resource management has thereby grown in importance for the PMO.
PMOs are setting the pace across departments with regard to producing results in and around projects – along the company’s entire value chain @tpg_comClick to tweet
Trend 11) Cultural change towards accepting successful failure
PMOs are bearing increasing responsibility for implementing strategic targets. However, they can only achieve this if the resource situation permits it. To this end, the PMO needs an enterprise-wide overview of the available skills. In the future, the skills will have to be assigned more dynamically to the strategically important projects.
This means that projects now deemed less viable will need to be aborted. After all, purposefully aborting a project makes staff available for projects with a higher priority. The catchphrase “Fail Cheap” is not new in this context. However, it does encourage the cultural changes needed to accept a successful failure.
What is it like at your company? Is it ok to abort a project when this is justified? Is it still viewed as the project manager’s failure? Work to ensure that the necessary cultural changes are adopted.
Maybe Peter Drucker’s observation that “Culture eats strategy for breakfast” will help you emphasize the importance in your company.
Find more detail here: How You Abort a Project – Establish a Culture of Successful Failure!
Justifiably aborting a project frees up resources when you need them for higher-priority projects. @tpg_comClick to tweet
Trend 12) Change is acceptable if you understand why it’s needed
New organizational structures, enjoyable work, and self-determination are greatly valued by many employees these days. There now more organizations than ever who use agile, modern work methods.
However, many people still prefer traditional leadership styles and there are numerous projects that can be handled more effectively using traditional methods. This is ok. After all, there’ll be a need for pioneers as well as settlers – even in the future.
However, change is a constant – always and everywhere – and sometimes there are greater changes and sometimes lesser ones. It’s helpful to understand that most of the people who reject change do so because they don’t see the sense in it. If you make it clear to them right from the start why the change is necessary, it’s later much easier to explain what changes are coming and how these will be handled.
In our opinion, “Explain, don’t demand” is the most important trend – one that will also continue to rapidly gain importance in the future for project management.
Explain to the project team right away why the changes are needed to encourage and understanding and acceptance. @tpg_comClick to tweet
Have we overlooked a key trend? Do you share our opinion? If you disagree about one of these project management trends, we’d love to hear your opinion. Please leave us a comment. Thanks!
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