ME2018 Leading temporary organizations and projects Course introduction

Who am I? Johann Packendorff Associate professor of project management and operations management at KTH since 2001 Member of the Swedish Project Academy Research on project management, entrepreneurship and leadership

Operations Management – Basic Principles All types of enterprise have an operations function, even if it isn’t called ‘operations. Most operations produce both products and services. Materials Products and services Information Customers Operations management is concerned with producing and delivering products and services

That is: Operations are – if organized in the right fashion – a source of competitiveness and survival for the firm!

The strategic role of operations can be defined by its aspirations (Hayes and Wheelwright) Give an Operations Advantage Externally supportive Internally supportive Externally neutral Internally neutral The ability to Implement Link Strategy With Operations Adopt best Practice Correct the Worst Problems Increasing contribution of operations STAGE 1STAGE 2STAGE 3STAGE 4 The ability to Drive strategy Stop holding the organization back Be as good as competitors Be clearly the best in the industry Redefine the industry’s expectations The ability to support Strategy

An operation contributes to business strategy by achieving five "Performance Objectives" CHANGING what you do a FLEXIBILITY advantage Gives Doing things CHEAPLY a COST advantage Gives Doing things ON TIME a DEPENDABILITY advantage Gives Doing things FAST a SPEED advantage Gives Doing things RIGHT a QUALITY advantage Gives

VolumeLow High VolumeLow High Variety Low High Variety Low High Project Jobbing Batch Mass Contin- -uous Professional service Service shop Mass service Service process types Manufacturing process types

Development trends Management Line-based operations Projects Line-based operations Project-based operations Line-based operations Industrialized Project operations Projects ?

Towards project portfolio management Mass manufacturing Project management MTM Toyota system TQM Lean manufacturing Scientific management Gantt schedules MBO Network planning Matrix organizations Critical chain PMBOK Certifications Project portfolio management OPM3 PM as core competence Lean eng. Stage-gate models Risk management PM offices

Project dependence in Swedish industry Project-based exports (Svensson, 1996) –The total of project-based operations amounted to 193 billion SEK, about 50% of total Swedish exports R&D intensity(SCB, 2002) –Amounts to 5% of GNP, but in some firms about 20-30% of total sales (development projects) The character of fast-growing industry segments (SCB, 2002) –IT, drugs, consultancy Big-firm depencence (ISA, 1999) –A large share of our most important multinationals are project-based firms (e.g. Ericsson, ABB and Skanska)

Types of projects Delivery projects Development projects Change projects Jonas Söderlund

Delivery projectsDevelopment projectsChange projects AimDeliver and implement complex solutions/systems to customers and/or end users. Develop new technologies, products or services for manufacturing and/or sale to mass market or for use in the firm’s delivery projects. Change organizational routines in order to improve everyday performance and/or improve the firm’s delivery or development projects. Guiding parameter ContractsTechnologyOrganization Competence problem Integration of knowledge between customer and provider. Integration of knowledge between different technical disciplines and organizational parts. Change of competence structure and integration of organizational knowledge. Managerial focus Customer dialogue, customer interaction, negotiation. Specifications, technical solutions, integration of technical solutions. Change resistance, internal marketing, managerial hierarchies. Success criteria Profitability Customer satisfaction Profitability Risk spread Strategic marketing considerations Realized improvement potential Management/sponsor satisfaction

Project management as a core competence ABB –Project Support, World Class Training Ericsson –Project Office, EPMI, PROPS AstraZeneca –PMSO, Global Project Directors/Managers Tetra Pak –Core Values Volvo PV –Project Director, Project Management ”The ability to successfully carry out projects.”

Project-level improvement: THE “STAGE-GATE” PROCESS IN R&D What is the “Stage-Gate” Process? Increasing Demands on Resources Increasing Level of Scrutiny “Ideation” Preliminary Analysis Build a Business Case “Go/Kill”? Development “Go/Kill”? Testing Launch Stage Gate The basic idea is that each “stage” has a set of deliverables. If these are not produced (or if the findings are not favorable), the project gets killed at the following “gate”. Legend:

Company-level improvement: OPM3

Remaining problem Focus on certification - Individual (PMP, IPMA levels) - Organizational (OPM3) Focus on procedures developed from traditional project management thinking Neglecting inspiration from the dominating Operations Management movement: Lean Manufacturing! Neglecting inspiration from current organizational research Calls for a philosophical re-orientation, not only more rules, procedures and standardisation

…therefore, a course…

Course goals The aim of the course is to develop advanced in-depth knowledge on leading different forms of temporary organizations, departing from several contemporary perspectives in operations management and project management research.

Learning outcomes The student shall be able to: Describe the connections, similarities and differences between project management and general operations management. Describe, analyse and solve managerial problems in different forms of dispersed and/or network-based projects Use bibliographical databases for continuous learning and development within the fields of project management and operations management. Apply contemporary research perspectives for the practical solving of managerial problems in project-based operations.

ME2018 Lectures Individual task (IJPM) Group (2-5 pers) tasks – five thematical reports Seminar series – plenary discussion seminars Tentamen

Reviewing a project management research article – individual term paper task  Term paper 1:  Each student shall indiviually select an article from a leading project management journal and write a paper of maximum 10 pages.  The first half of the report is a summary of the article, whereafter the second half is spent analysing and criticizing its assumptions, contents and conclusions. The analysis and critique should make use of the course literature and own experiences. IJPM is electronically available as an E-journal through the KTH library, Preferably, issues from 1995 onwards should be used. The report is submitted in paper format – including a printout of the article – no later than April 15th,

Five themes 1.Lean project management 2.Project management across borders 3.Leadership in projects 4.Innovative and entrepreneurial projects 5.Critical project studies

For each theme Introductory lecture, ended by a set of discussion questions Set of articles published at the course homepage or handed out in paper format Hand-in of group report, containing (1) literature review, (2) group’s opinions/answers to discussion questions Plenary discussion seminar, all groups expected to be able to make short presentations and participate actively

Course literature ”Virtual” list of readings updated regularly at course homepage Own literature searches

Exams ME2018: Tentamen (50%), group reports (25%), article review (25%)