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    Project management: why can't we get it right?

    Management Performance Research Societal Wellbeing Time Management
    Many years ago, when I was just a few years out of university, I heard an alarming statistic: that most projects (70% or more) were delivered late, cost more and provided less than originally planned. Some were never completed at all. I recall discussing this with my then colleagues and associates, because it seemed like an important problem that needed to be solved. My colleagues said that new systems and processes were being developed, and that this would alleviate the problem. 

    Fast forward a generation... Many systems and processes have been introduced—including MS-Project, PMP, Prince2, PMO and others—but have the expected gains been achieved? Sadly, they have not. As a recently published KPMG report indicates, most projects are still late, cost more, provide less or fail outright. On this evidence, little has changed. Much time and effort has been spent developing and promoting new systems—and millions of dollars are still being wasted.

    So, what's gone wrong, and why haven't things improved? In my view, most project management systems and processes have failed to deliver any material gains, because they do not address the vagaries of the most crucial factor: people. A more holistic approach is required. Rather than spend more effort refining systems and introducing yet more processes, attention needs to turn to the people factors. The research literature is replete with information to guide a new generation of people-focussed effort. However, until someone takes up the challenge—to deal with the motivational, behavioural and other psycho-social factors—I suspect the wastage will continue.
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    What corporate governance can learn from earthquakes

    Governance Management Performance Research Societal Wellbeing Strategy
    New Zealand endured a swarm of earthquakes earlier this week. The largest, at 6.5 on the Richter scale, caused damage and disruptions in Wellington. The CBD was 'shut down' for a day while damage was assessed and the area made safe. Thankfully, no one was seriously hurt. This morning, reports emerged that at least one heritage-listed building was too badly damaged for tenants to return. This highlights an interesting dilemma. We strive to preserve (and in some cases occupy) the past—hoping for the best—yet we need to plan for the future, lest unexpected events cause serious consequences.

    There are striking parallels between heritage buildings and corporate governance. Most directors know they are responsible for maximising company performance, yet most boards spend the majority of their time monitoring historical performance—looking backwards!
    Just as it is very difficult to drive safely if you spend most of your time looking through the rearview mirror, boards cannot hope to govern effectively if they spend the majority of their time reviewing reports and financial results. A glance to check progress should be sufficient. Directors need to take heed of this and change their focus, lest they inadvertently miss danger signs and run off the road as it were. Emerging research (including my current doctoral research, and an earlier project) suggests that time spent considering strategic options, developing strategy and making strategically important decisions—together with the executive—is time well spent.

    The earthquake event this week provided a wakeup call to building owners and occupiers in Wellington. An admiration of the past is not always the best option. Modern structures are needed to support modern society. Perhaps the experience gained through the earthquake can catalyse a change in the boardroom as well—from monitoring the past to planning for the future. Or am I hoping for too much?
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    A failure of corporate governance in local government

    Governance Management Performance Societal Wellbeing
    A tragedy unfolded in Christchurch today. The CEO of the City Council, Mr Tony Marryatt, was stood down by Mayor Bob Parker, due to ongoing problems with the issuing of building consents. The problems, which have been discussed in the public domain for some time, are due in part to the increased number of applications arising from the rebuild of Christchurch buildings post the devastating earthquakes of 2011 and 2012.

    Mayor Parker took action in because, in his own words, crucial information failed to reach the governance team. Gosh, this is serious. On the surface, the statement presents the Mayor as being decisive in response to a significant problem. However, under the surface, the statement exposes a problem relating to information flow and expectation. In the governance contexts that I am familiar with, the Board is responsible for ensuring it has all the information it needs to enable a decision to be made. Yet in this case, it appears that the Mayor (at least) expected information "to be provided".

    If the information the Mayor now describes as being crucial was not provided, then one of two things will have occurred. The CEO may have chosen not to provide it (as implied by the Mayor's comments), or the Council may have failed in its duty to ask the right questions to elicit the information. Either way, the failure of governance is laid bare. Rather than start by blaming the CEO (I'm not suggesting he is blameless), the Mayor and Councillors should reflect on their own conduct, to determine whether they have discharged their civic duty to the full extent expected under their warrants. If they have, then well and good. If not, then perhaps they too should stand down.
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    On making predictions about the future

    Phd Readings Research Societal Wellbeing
    I've been reading some back issues of The American Scholar recently, as part of my personal commitment to read widely and explore topics that I'd not normally think about. Reading widely is the side story of my quest to explain how Boards influence company performance. It provides a bit of balance to the humdrum of reading academic papers. 

    Some of the articles and books that I have read have really captured my attention and thought. One such article, originally published in the Spring 2010 issue of Scholar, summarised British philosopher A.C. Grayling's book Ideas that matter: The concepts that shape the 21st century. Grayling introduced 12 ideas that would, in his opinion, dominate public consciousness and debate during the century ahead. 

    This sounded remarkable, for the making of reliable predictions—especially longer-term predictions—is notoriously difficult. A reliance on empirical evidence can easily lead to erroneous conclusions—the White Swans Thesis is a famous case in point. Notwithstanding this, most, if not all, of Grayling's predictions are coming to pass, just three years after his thesis was published. What does this say about Grayling's ability to predict the future? Did he see something that most of us missed, or is Grayling's "long term view" actually much shorter than what readers might have assumed in reading the title? I suspect the answer lies somewhere in the middle. Call me a sceptic if you will, but I'm yet to see a robust case to suggest that the making of future predictions based on empirical historical evidence is anything more than intelligent guesswork.
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    On redefining success

    Conferences Performance Readings Societal Wellbeing
    Periodically, the topic of success appears in my musings. As recently as yesterday for example, I wrote about core purpose and values—in tandem—as being crucial to achieving high performance and, by implication, success. But what is success? How do you define it?

    For eons, most Western cultures have defined success extrinsically—by what others have, what others think about us, or what we think others might think. Money and power are the benchmarks of success in any society founded on accumulation. You know the story: the more people have the more they want—all in the name of so-called success—and so the bandwagon rolls on.

    I have long thought that extrinsic ambition is hollow and fraught with danger, because the price one has to pay to be successful in monetary or power terms only spirals one way—upward and, inevitably, out of control. Thankfully, calls to redefine success are starting to emerge. I hope such calls are heeded, lest our society simply collapses around us. And we wouldn't want that, would we? 
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    Nailing down core purpose...properly

    Governance Management Performance Readings Societal Wellbeing Strategy
    The core purpose of most organisations is to maximise its performance—whether it be a not-for-profit agency, a government department, a faith-based group, a health provider, a commercial enterprise, or any other organisation. The definition of performance differs from organisation to organisation differs, of course. NFPs measure performance in terms of services provided, whereas commercial enterprises generally measure performance in terms of wealth creation, for example.

    Notwithstanding this honourable goal of maximising performance, many organisations struggle to perform as they'd like. Often, regulatory frameworks and internal confusion (over purpose, strategy and operational priorities) divert attention and resources away from the "business" of the organisation. Why is this? I'd like to suggest that many organisations are not entirely clear about why they exist—even though they think they are.

    When I'm asked to help an organisation with its performance, one of the first things I ask about is core purpose. Sometimes a clear statement is provided, but only sometimes. More tellingly though, the underlying values and belief system—upon which behaviour is based—is generally not nailed down. Organisations are complex, socially dynamic entities, and even the best laid plans can be readily undermined by dissenting (and sometimes well meaning) individuals or groups. And therein lies a root cause. High performance is generally contingent on having a clear purpose and an agreed set of values to guide behaviour and decision-making. Just ask the CEO of any successful enterprise.