Project Management / Lean Methods & Implementation / Leadership D a “… a highly pragmatic guide to project management. … lays out the way of thinking that underpins l a success… a book that everyone could benefit from.” l —Mikel J. Harry, Ph.D., co-creator of Six Sigma, national bestselling author, and consultant to the top CEOs “… provides the most significant contribution for leaders to mitigate project risks, assure sustainable growth, and guarantee survival… .” o —Carlos Alberto Briganti, general manager of Eaton Europe and Japan, 2001–2003; f vice president of Eaton South America, 2004–2007 “… one of the BEST books I have ever read on project leadership.” P —John Salazar, CIO Department of Work Force Solutions; former CIO T r of Department of Taxation & Revenue, State of New Mexico o h “… a comprehensive guide that will assist any business leader within an organization to consistently j e achieve excellent business results! A ‘must buy’—get it now!” e —Billy Billimoria, director, customer applications, BAE Systems; program director, c Lockheed Martin; project engineer, Space Shuttle and Support Equipment Design 1 t 2 Asking tough questions about the current state of project management, The 12 Pillars of Project Excellence: A Lean Approach to Improving Project Results provides groundbreaking techniques E to achieve excellence in project leadership that can result in six sigma type results or failure-free P projects. It unveils novel solutions and breakthrough concepts—including project culture analysis, x the five powers of project leadership, the power of visualization™, the science of simplicity™, c i l dynamic risk leadership, and dynamic project failures analysis—to help you chart the most efficient l e a path to the pinnacle of project leadership. l r The author provides cutting-edge methods based on decades of personal practical experience, l e s valuable lessons learned, and authoritative insights gained from leading over 300 projects to successful conclusions. Complete with a CD of powerful tools for organizational- and self- n assessment purposes, this book will not only transform your approach to project management, but c will help you develop effective leaders and consistently achieve exceptional business results. e K12221 ISBN: 978-1-4398-4912-5 90000 www.crcpress.com 9 781439 849125 www.productivitypress.com K12221 cvr mech.indd 1 9/22/11 4:41 PM The 12 Pillars of Project Excellence A Lean Approach to Improving Project Results THE 12 PILLARS OF PROJECT EXCELLENCE: A Lean Approach to Improving Project Results The 12 Pillars of Project Excellence book represents a highly pragmatic guide to project management. In this sense, it’s an experience-based “how to” book, not a collection of academic theories. Not only does the book provide the fundamental tools that leaders need to get better project results, it lays out the way of thinking that underpins success. Owing to this, the book represents a simple, manageable, actionable, repeatable and teachable body of knowledge that everyone could benefit from. — Mikel J. Harry, Ph.D., Co-Creator of Six Sigma, National Best Selling Author, Consultant to World’s Top CEOs The 12 Pillars of Project Excellence provides the most significant contribution for leaders to mitigate the project risks, assure sustainable growth and guarantee survival in a global economic scenario full of uncertainties. — Carlos Alberto Briganti, General Manager of Eaton Europe and Japan (2001–2003), Vice President of Eaton South America (2004–2007), Currently Managing Director of Power Systems Research, South America; Associated Partner of MB Consultants Very few books talk about project leaders and The 12 Pillars of Project Excellence is one of the best books I have ever read on project leadership. The book has extraordinary concepts on leading a project, which are unique and exceptional. This book reveals the facts behind project failures and the approaches to overcome those failures by leading all projects to a successful close. I highly recommend this book for all project managers and executives who are serious about building successful project leaders in their organization. — John Salazar, CIO Department of Work Force Solutions, State of New Mexico, Ex-CIO Department of Taxation & Revenue Department, State of New Mexico The 12 Pillars of Project Excellence is definitely a thought-provoking book which will accelerate an intrinsic cultural change within your business opera- tions. This book bridges the worlds of academia and business ventures. It provides a step-by-step guidance in managing programs and projects that will result in your overall business success! Leading successful innovations always comes with inherent risks and obstacles. In my 30+ years experience in Defense, Space and Academia I have observed that several great opportunities fail due to lack of proper tools and processes. Following the steps outlined in The 12 Pillars of Project Excellence will not only allow program and project leaders to overcome these challenges but also provide managers and leaders checks and balances for total business transformation. I am confident that The 12 Pillars of Project Excellence is a comprehensive guide that will assist any business leader within an organization to consistently achieve excellent business results! A Must Buy—get it Now! — Billy Billimoria, Director, Customer Applications, BAE Systems, Program Director, Lockheed Martin; Manager, Hughes Aircraft (acquired by Raytheon Corporation), Project Engineer, Space Shuttle and Support Equipment Design Buy this book! Your business is dead in the water with unfinished projects… they’re like cinderblocks tied to your feet. The 12 Pillars of Project Excellence breathes life back into your project teams. It motivates them to think BIG and then actually DELIVER. Great book, great methodology. — Karl Wadensten, President, VIBCO Vibrators, Host of the Radio Talk Show The Lean Nation on 790AM-WPRV Dalal’s The 12 Pillars of Project Excellence book is a true innovation in leadership and the human-side of project management. This book provides some simple yet extraordinary tools to help project managers and organizations understand and transform their culture. I highly recommend this book to indi- viduals who wish to be excellent leaders, organizations who wish to consistently run profitable projects and universities who wish to develop future leaders and executives. I strongly recommend this book as the “must-read and apply” for anyone desiring growth and profits through perfection in leadership and project excellence. — Professor Dr. Vijay Mahajan, John P. Harbin Centennial Chair, McCombs School of Business, University of Texas, Austin, Associate Dean of Research, Graduate School of Business, University of Texas, Austin (1991–1994); Dean of the Indian School of Business (ISB) (2002–2004) U.S.A. has lost its leadership in manufacturing to other countries because we did not heed our own words to make quality in projects the top priority, es- pecially when we design and manufacture product. The innovative approach laid out by Adil Dalal in his book The 12 Pillars of Project Excellence, which pioneers combining Lean concepts with project management, and focusing on human assets to achieve excellence, takes project leadership to its ultimate pinnacle and will result in Six Sigma type results or “zero failures” on all projects. I strongly urge all executives aspiring for top quality in manufacturing, software, service or other projects, to make The 12 Pillars of Project Excellence a mandatory workbook for all levels within their respective organizations. — Manny Chavez, President & CEO, Aristos Technologies, Inc., Former President/CEO of Harvard Technologies (HT) and former Executive at IBM, Businessman of the Year, Graduate of University of Texas, Harvard University The uniqueness of Dalal’s book, The 12 Pillars of Project Excellence, is integrating lean, strategic, and behavioral thinking into project management, so it’s a book on leadership, emphasizing projects. Once you are familiar with the tools and techniques of modern project management, this is the book to get, and to digest. And as Dalal notes, as a leader you need to practice new habits of thinking and leadership; otherwise, no book will be of much help. — Robert W. “Doc” Hall, Author of Zero Inventories (1983) and Compression (2009), One of the first examiners for the Malcolm Baldrige National Quality Award. Recipient of AME’s and SME’s lifetime achievement awards, Editor Emeritus of AME’s Target Magazine The 12 Pillars of Project Excellence is a very inspiring text of learning. Adil covers the span of the project management body of knowledge and leadership attributes that one can learn and directly apply to enhance their project management skills. This is formatted with an easy-to-read, easy-to-follow array of critical points of learning followed up with an excellence array of case studies and exercises that will give the reader reinforcement of their understanding. This is a “must read” from the novice to the skilled project leader. — Dewey Butts III, CQPA, CQA, CQE, CMQ/OE, Continuous Improvement, Senior Lean Six Sigma MBB, Harley-Davidson Motor Company, York, PA The The 12 Pillars of Project Excellence book provides a systematic coverage of project management and project leadership based on practical nuggets of over 300 successful projects by Adil Dalal. The book is comprehensive, simple and has a best practice focus. I would highly recommend this book to anyone who is serious in achieving success with their projects. — Manu K. Vora, Ph.D., MBA, ASQ CQE, and Fellow, Chairman and President, Business Excellence, Inc., Recipient of U.S. President’s Call to Service Award (2011) In my career as a professor, a manager, and a consultant, I have observed scores of leaders over the past 40 years. Adil is among the best. I observed him leading a group of professionals, all volunteers, tasked with turning around the fortunes of an organization that has been declining for years. Adil is an excellent leader: patient but firm, flexible but always headed in the direction of his vision. His humility left me unprepared for the outstanding quality of The 12 Pillars of Project Excellence. It is a must read for anyone who aspires to improve as a leader. While the book is specifically directed to project leadership, it generalizes to all types of leadership. It was so well conceived and well written that I could not put it down. Once when Dr. Deming was asked why particular stories were included in his book Out of the Crisis, he told the audience in his most emphatic voice “Be- cause I was there!” Based on my personal experience of having attended several seminars conducted by Dr. Deming I can say that Adil, like Dr. Deming, shares some great stories in his book, because Adil was also there! The analysis in Adil’s book is all the more powerful because it forms that basis of his successful leadership of over 300 projects. It is a book with lots of theory backed by Adil’s 15 years of experience as a successful leader. I strongly suggest you read it. — Brooks Carder, PhD, Author of Measurement Matters: How Effective Assessment Drives Business and Safety Performance, Consultant to the world’s largest corporations including ExxonMobil, IBM, Hewlett-Packard, Abbott Laboratories, IBM, Intel, Bayer, Monsanto Having worked in project “management” for years and seeing the carnage of leaders who have tried to do the right thing, Dalal’s book, The 12 Pillars of Project Excellence, truly summarizes the anatomy of the project “leadership” process. He then helps the reader to functionally address the issues to enable success. This innovative book in written to enable people at all levels to successfully effect project leadership. If you are serious about achieving results in your organizational teams, as a leader, an interactive member or as a sponsor, then Dalal’s The 12 Pillars of Project Excellence book will help you meet that objective. Many thanks to Adil for making this resource available to us all. — Jd Marhevko, ASQ Fellow, CMQ/OE, CQE, MBB, Chair ASQ-QMD, Principal, JQLC Inc. TThhiiss ppaaggee iinntteennttiioonnaallllyy lleefftt bbllaannkk The 12 Pillars of Project Excellence A Lean Approach to Improving Project Results Adil F. Dalal CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2012 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20111012 International Standard Book Number-13: 978-1-4398-4913-2 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. 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Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com To The pioneers of the field of project management: As we stand tall on your shoulders today, we are ever grateful for your service to the field of project management; and To All project professionals and executives of our new world: I hope this book lights the fire of undying passion and yearning for project excellence and provides a roadmap for success in your quest to be legendary and visionary leaders. TThhiiss ppaaggee iinntteennttiioonnaallllyy lleefftt bbllaannkk Contents Foreword ...............................................................................................xxi Preface .................................................................................................xxiii Acknowledgments ..............................................................................xxvii Introduction ...............................................................................................1 I.1 Origin of the Term “Project” .....................................................................2 I.2 Project Management as a Career Choice ..................................................2 I.3 Current State of Project Management .......................................................2 I.3.1 The Good News about the State of Project Management Today ..............................................................................................3 I.3.2 The Bad News about the State of Project Management Today ..............................................................................................4 I.3.3 The Ugly Truth about the State of Project Management Today ..............................................................................................4 I.4 Do Failed Projects = Failed Project Managers? .........................................5 I.5 Criticality of 12 Pillars to Future of Project Leadership ...........................6 I.5.1 The Plight of Project Managers Today ...........................................6 I.5.2 Project Leaders as Corporate Superheroes ....................................6 I.5.3 No False Claims ..............................................................................7 I.5.4 A Book about Mastering the Art of Project Leadership ................7 I.6 Use of Force Field Analysis in the 12 Pillars of Project Excellence ........8 I.6.1 How Will Organizations Benefit from the 12 Pillars? ...................8 I.6.2 What Is a Force Field Analysis? ......................................................8 I.6.3 Two Types of Force Field Analysis ................................................8 I.6.3.1 Organizational Culture Assessment ..................................9 I.6.3.2 Self-Assessment .................................................................9 I.6.4 Creating an Action Plan ..................................................................9 I.6.5 Continuous Improvement ...............................................................9 I.7 How Can Executives Maximize Profits from Projects ............................10 I.7.1 Understanding the Impact of Organizational Structure on the Performance of Project Managers ..........................................10 I.7.1.1 Functional Structure ........................................................10 I.7.1.2 Weak Matrix Structure .....................................................11 ix