© Francis Hartman Holdings Limited and QeD Inc., 2006, Preparing the Mind for Dynamic Management… Growing beyond Traditional PM. Francis Hartman PhD FICE FCAE FEAC PEng CEng Professor and Chair Schulich School of Engineering University of Calgary Alberta, Canada

© Francis Hartman Holdings Limited and QeD Inc., 2006, Overview The Problem Background Trust Color Model How we think Linking Trust with the business environment Preparing for a better future…

© Francis Hartman Holdings Limited and QeD Inc., 2006, Preview We are always learning … and it can be humbling… Some things we do not WANT to learn Question: are we developing our PMs correctly? Easy Answer: YES Challenging Answer: NO 

© Francis Hartman Holdings Limited and QeD Inc., 2006, Instant Participation… Who is to blame? What WILL go wrong? How do we fix these? Confidence? And one more question… CEA Board – 14 Conf Board – 127 Prov. Govt - 27 PMI – 82 UoC – 155 GMIS - 77 TOTAL – 492…

© Francis Hartman Holdings Limited and QeD Inc., 2006, The Problem…  Inadequate $ & T & Optimistic Performance  Scarce or Wrong Resources.  Insufficient design development.  Poor Risk Management.  Rework.  Communication breakdown.  Scope Changes out of Control.  Priorities shift over time.  Wrong Contracting Strategy.  Problems acknowledged too late.

© Francis Hartman Holdings Limited and QeD Inc., 2006, Revisiting The Problem  $ & T & Optimism  Scarce/Wrong Resources  F E Loading  Risk Management  Rework  Comm. breakdown  Scope Control  Priorities shift  Contract Strategy  Problems ID’d late.

© Francis Hartman Holdings Limited and QeD Inc., 2006, … and a Solution?  $ & T & Optimism  Scarce/Wrong Resources  F E Loading  Risk Management  Rework  Comm. breakdown  Scope Control  Priorities shift  Contract Strategy  Problems ID’d late.  Fluff up or Lie and Hope  What can we do?  Time/money constrained  We do it!  Add QC and QA  Find out too late  Add more controls  Priorities shift  Change Contract Strategy  Lead Indicators

© Francis Hartman Holdings Limited and QeD Inc., 2006, … and another Solution?  $ & T & Optimism  Scarce/Wrong Resources  F E Loading  Risk Management  Rework  Comm. breakdown  Scope Control  Priorities shift  Contract Strategy  Problems ID’d late.  Manage to the INTENT  Enable and Engage INTENT  Intuitive Skills and INTENT  Risk Planning  Clear INTENT  Engagement Map  Trust based Business Model  Priorities Management  Engage!  Shared INTENT

© Francis Hartman Holdings Limited and QeD Inc., 2006, The INTENT Unit Production Cost Unit Product Sale Price Δ CAP Unit Production Cost Unit Product Sale Price Δ CAP CAPEX Market Price Market Price OPEX

© Francis Hartman Holdings Limited and QeD Inc., 2006, How we think Business Development Board Decision NPV Or ? Operations Business Case Project TPC Project TPC Isolation from Business Case (PM Legacy from Defense and Construction)

© Francis Hartman Holdings Limited and QeD Inc., 2006, Rationale for Dynamic Management… Business idea Exploration Completion Construction/ Implementation Detail Design Design Development Concept development Operation The project development process DG 1DG 2 DG 3DG 4 DG 0 Feasibility Strategy definition Strategy execution OPS… DG0DG1DG2DG3DG4DG? HIGH TRUST LOW TRUST

© Francis Hartman Holdings Limited and QeD Inc., 2006, TP C $1,000 Must Should Nice $1,350 ? Priority Triangle $950$1,050

© Francis Hartman Holdings Limited and QeD Inc., 2006, DPS (Dynamic Path Scheduling) A7A7 K 10 H4H4 J 10 F2F2 G7G7 C 12 D4D4 E6E6 B3B3 6/ /81/ /17 10/ /15 10/ /12 0/ /903/ /63/ /10 3/ /12 2/ /30 3/ /6

© Francis Hartman Holdings Limited and QeD Inc., 2006, Mock-e Carlo Risk Assessment P+10% L T O-10% Value (e.g.: Duration or Cost) P 100 P 85 P 50 P 0 Probability

© Francis Hartman Holdings Limited and QeD Inc., 2006, Risk Attitudes IB M DU M     Change your mind? Inconsistent Behavior? What we don’t know we don’t know? What we don’t want to know?

© Francis Hartman Holdings Limited and QeD Inc., 2006, Business today… Keep lights on today (operations) o Same old… o Continuous Improvement* o Competitive Advantage* o Responsiveness* Make sure lights are on tomorrow (strategy) o Corporate Strategy* o Marketing and Sales* o New Products and Services* o Innovation* o …and more*. *Most or all of these are PROJECTS.

© Francis Hartman Holdings Limited and QeD Inc., 2006, Breaking Through… DM not PM From PMBOK™ to SMART PM® From SMART (P)M® to Dynamic Management… o Blue level: SMART Management Principles o Yellow level: Trust, Governance and Business Context o Red Level: intuitive Skills Development (Judgment and Wisdom) o Master’s Certificates by UC Berkeley/QED.

© Francis Hartman Holdings Limited and QeD Inc., 2006, Colors of Trust Intuitive CompetenceIntegrity Subconscious Evidence basedExperiential (Two Parts!) (Stable)(Volatile) L- and R-Thinking L- ThinkingR-Thinking

© Francis Hartman Holdings Limited and QeD Inc., 2006, Trust Behavior Effective Communication Contract Relationships Finding Cost and time saving ideas Team Effectiveness Honest forecasts Trust in Leadership Effective Project Managers

© Francis Hartman Holdings Limited and QeD Inc., 2006, Context We KNOW a lot of stuff People who DO stuff are often OPTIMISTS. Lawyers, accountants, auditors and others are required to be PESSIMISTS Business, Programs and Projects continue to get harder (“MORE” stakeholders?) Communication<>Trust<>Performance<>Relationships TraditionalPost ModernDynamic Traditional PMNew PMDM RunnerRepeaterRenegade ControlLearningPredicting CompetenceIntegrityIntuition Proven TheoryEvolving TheoryNew Concepts Replication InnovationCreativity Stages 1-3Stages 4-5/6Stages 6-9

© Francis Hartman Holdings Limited and QeD Inc., 2006, Doing Better… Continuous Improvement Job Satisfaction License to improve (BIG!) Increase Confidence in PM

© Francis Hartman Holdings Limited and QeD Inc., 2006, Trust and Other Matters Competence Integrity Intuition Project Management Operations Dynamic Management* *With thanks to Per Willy Hetland – Statoil and ManageAdministerDo Direction Action Mis- trust Trust Strategy Lead

© Francis Hartman Holdings Limited and QeD Inc., 2006, More Trust Applications in the Workplace Reporting Teams: Esprit, Support, Communication Expectations Management Managing Change Supply Chain Audit requirements Record keeping Damage Control, PR, Learning, stories, leadership, expertise (e.g., doctors) … and much more …

© Francis Hartman Holdings Limited and QeD Inc., 2006, Leadership, Ambiguity and Paradox Real and Apparent Control Real and Apparent Accountability (SOX effect) Saying NO! and other leadership Skills Recognizing opportunities Trusting your Intuition (or Wisdom?)

© Francis Hartman Holdings Limited and QeD Inc., 2006, Changing the PM Curriculum? Basic PM Tools PM Processes PM Competence Executive Intuition Intuitive Skills IntegrityCompetence UC Berkeley/QED Certificates in Dynamic Management UoC PM Specialization Project Controls Project LEADERSHIP

© Francis Hartman Holdings Limited and QeD Inc., 2006, Conclusions Important to Industry Supported by Research Funding Agencies: o NSERC o SSHRC o Organization for Project Advancement and Leadership (OPAL) o Canadian Project Forum (CPF) Expect to change some basic ideas on how to be successful in the future... DM and ongoing work with UC Berkeley…

© Francis Hartman Holdings Limited and QeD Inc., 2006,