1. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 1 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

2. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 2 Overview The Problem Background Trust Color Model How we think Linking Trust with the business environment Preparing for a better future…

3. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 3 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 

4. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 4 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…

5. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 5 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.

6. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 6 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.

7. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 7 … 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

8. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 8 … 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

9. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 9 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

10. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 10 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)

11. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 11 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

12. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 12 TP C $1,000 Must Should Nice $1,350 ? Priority Triangle $950$1,050

13. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 13 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

14. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 14 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

15. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 15 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?

16. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 16 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.

17. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 17 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.

18. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 18 Colors of Trust Intuitive CompetenceIntegrity Subconscious Evidence basedExperiential (Two Parts!) (Stable)(Volatile) L- and R-Thinking L- ThinkingR-Thinking

19. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 19 Trust Behavior Effective Communication Contract Relationships Finding Cost and time saving ideas Team Effectiveness Honest forecasts Trust in Leadership Effective Project Managers

20. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 20 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

21. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 21 Doing Better… Continuous Improvement Job Satisfaction License to improve (BIG!) Increase Confidence in PM

22. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 22 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

23. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 23 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 …

24. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 24 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?)

25. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 25 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

26. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 26 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…

27. © Francis Hartman Holdings Limited and QeD Inc., 2006, 2007 27