Human Capital Management

Ever since I started my career twenty five years back, in the engineering services field, I have been constantly stumbling on one issue – “finding the right person for the job.” The reasons for this stumbling block were many, few said that I should have planned well in advance so that I could get the resource for delivering the task, few others told me that the task was complex and therefore it is not possible to find the right resource easily, and there were just too many views on why I could never find the right person for the job. However one common theme in all these views, is the fact that we do not have infinite competent resources in any organization. The resources in any organization big or small, global or local, are always scarce and the best resources are always in short supply. If this echoes well with you then you will also relate to what I am going to share next….

Managing human resource has never been an easy task organization and the complexity has just evolved over the years. In todays world, if the challenge in managing the human resource is in the form of social media, and the remoteness of international teams then a few years back, the challenge was the lack of effective communication means.. Of the many challenges faced by the human resource managers in an organization, the top 3 challenges are Change Management, Leadership development and Organizational effectiveness. Which in my view had existed Yesterday, exist Today and will continue to exist Tomorrow.. it only has evolved and will continue to evolve over the period of time.

Change management – Given the fact that it was never easy to find the right individual for the job, I was either forced to ask someone to do something over and beyond their skillset (by coaching / training) or I myself have developed the knowledge and skill to deliver certain task (I am sure you would have done that too). When I reflect on those situations, I clearly remember the initial resistance to change but in all the successful transitions I clearly recall either being coached and supported or having provided coaching and support to my team member. In today’s fast paced world an intensified focus on training, coaching and support will be needed to manage changes. In tomorrow’s context – Change management must be designed to provide a structured approach for supporting the individuals in an organization to move from their own current states to their own future states.

Leadership development – Leadership skills and management practices have evolved over the period of time. Traditional Command -and – Control leadership styles are now changing to effective collaboration with cross functional teams, as the organizations become more flatter through technological advances and agile processes and  traditional hierarchical structure for running an organization is becoming outdated. The manager/employee relationship has become more of a business partnership than supervisor- and-subordinate execution of ideas and strategy. Today’s managers are becoming more intimately involved in the details of projects as facilitators and coaches while individuals are becoming more autonomous self-leaders, creating a partnership to achieve business results. Organizations of tomorrow should strategically address the needs of the changing workforce by evolving their approach to leadership development through a natural shift in mindset by building a common leadership philosophy across the organization. Move away from Transactional to transformational leadership styles, where leaders inspire and help develop their team members to become self-leaders or step up to leadership when necessary.

Organizational Effectiveness – Organizations always attempted to be as effective as possible within the available means. It goes without saying that to achieve effectiveness, organizations have constantly adapted themselves to the dynamic external environment and to develop sustainable and manageable policies. We have seen a shift from a complex hierarchical organizational model to a lean and efficient matrix organization. We have also seen a shifting ideology from hiring people to attracting and retaining talent. Going forward the focus will continue to be on leveraging  Human, Financial and Technological resources for creating competitive advantage in an Ethical and Compliant manner.

Clearly, managing human capital is an ongoing challenge, especially as social, political and economic events take their toll. Strategies must continually be redefined to deliver improved return on investment in human capital. As HR professionals work within their own organizations, they must also cope with good and bad economies, new technology, and the social issues – global, regional and national – affecting their organizations. Organizations need to focus on “developing supervisors into ‘people managers,’ not just technical specialists,” To meet this challenge focus should be on “leaders developing leaders”

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Idea

Welcome to the world of Project Management. The reason you are here shows that you are in search of information to broaden your knowledge around project management. The one best thing about this subject is that there is always something new to learn. Project Management is vast subject and every reader would look for a specific content to suit their learning needs. Historically, Project Management has been used in some shape or form since early civilization. The Project Management that we know about started somewhere in 1950s, where techniques such as CPM and PERT were invented and applied in manufacturing and defense sectors. Since then it has become popular and wide spread in construction industry, information technology, energy and more recently into banking, entertainment, product launches and event management.

Over the past few years, I have been trying to share my knowledge and perspective around this topic with readers like you, through various forums such as my blogs, replies to posts on sites, emails etc. While I feel satisfied, for the fact that I have been able to answer the queries of a wide spectrum of project management “Learners”. At the same time feel that there are a number of learners, who may not ask the question but would still seek to learn. There may be many learners who have not yet found the right answer to their question and those who feel that they would like to dig deeper into the detail. I am therefore planning to curate content for helping Students, who are looking at some real life perspective to broaden their understanding of the concepts. And for Front line practitioners, who wish to understand a particular aspect of the subject or simply keep up to date with knowledge.

I am planning to develop a short video series and a e-book to cover the topics around project management, over the coming months, which will be available to readers like you absolutely Free !!

In order to do this – I am reaching out to readers like you to seek some inputs that I could use to shape the content or any other suggestion that I should consider. I would also request you to share this link with the like minded learners in your networks.. Alternatively I could be reached by email or you could leave a comment below.

Project Management in Context

Project Management is the process by which projects are defined, planned, monitored, controlled and delivered.

Many methodologies are widely practiced in various organizations to deliver the project. From Traditional methods such as Waterfall, PERT & Critical Path Method (CPM) followed by Process Based Methodologies like LEAN, Six Sigma to more recent Agile methodology, all of these methodologies help the Project  Manager to deliver the Change in the most efficient and effective way.

Top 5 Project Management Techniques That Work for Software Development
Project Management Methodologies 

pic courtesy – medium.com

As per the Project Management Institute (PMI) the project management includes the following 5 stages, which are widely embraced by the project management community :

  • Initiating -To identify and define the goal of the project
  • Planning – To develop the roadmap for the project
  • Executing – To build the deliverables.
  • Controlling – To measure project performance in terms of Safety, Cost, Schedule, Quality
  • Closing – Project is completed, handed over to operations and lessons learnt.

Project Managment Cycle
Project Lifecycle

Project Management process provides a single point of integrative responsibility i.e. the Project Manager. The Project Manager is the one who steers the Project team during the course of the project. However, the project management expertise is typically spread across the Project Team and delivery of the successful project can never be attributed to a single person but is always a team effort.

Essentially, through effective Project Management we would achieve the following :

  • understand the need, problem or opportunity that the project will address.
  • determine the success criteria and benefits of the proposed project.
  • defining what will be delivered in terms of scope, cost, quality and schedule.
  • planning and executing the deliverables.
  • utilizing the resources in an efficient and optimum manner.
  • delivering the benefit to the project sponsor.

A large project may be divided into sub projects with their own deliverables that will contribute to the overall project deliverable. Such projects are brought together under a programme and managed using programme management.

Project Program and Portfolio relationship
Portfolio of Projects

 

Project background, Aim of the project, Problem definition, Project justification and Scope of project.

Millions of dollars are spent year after year by organizations and governments around the world on projects. Implementation of projects helps organizations to achieve their business objective for eg. Introduce a new product, improve the profitability etc. Governments around the world spend huge sums every year to improve / provide facilities such as roads, schools, defense establishments etc., for the benefit of its citizens. As projects are capital intensive they require rigorous review, approval and implementation process which normally spread over several years and involve changing personnel at various roles. Well written project description covering the project justification (Why), aim of the project (the What) and scope of the project (How), not only helps the project sponsors make the investments but also helps the Project Manager to make important decisions regarding the viability / profitability of the project in the changing Socio-Economic and Political situations, over a period of time.

Before we get into the details of project documentation, let us understand the difference between project background, project scope, problem definition, project justification and aim of the project. For this let us consider a simple scenario of constructing a direct road between two towns A & B, 50 Kilometer long. In the current scenario, the approach road is via town C, which is a total of 200 Kilometers i.e. 150 Kilometers extra. Now let us try to frame the following (the values used below are only for illustration purposes):

  1. Project Background – Project background is simple and short statement of the project, quantifying the problem / benefit that can be addressed / realized once the project has been implemented successfully. The project background is the “why” of the project. In this case the project background could be something like… in recent years there has been increase in the commodity trading activity between towns A & B, with a volume of approximately 5 Million USD per annum. On an average 20% of this value (1 Million USD) is being spent on logistics, which is almost double the industry standard for similar trade.
  2. Aim of the project – The aim of the project is the “what” and defines the overall intention of the project. In this case, we could say that the project aims in minimizing the logistics costs by providing a direct 50 Kilometer access road connecting the two towns A & B.
  3. Problem Definition – A problem definition should include brief description of the problem, exact locations, time frames, size and magnitude. One should not under-write the problem definition as it will not help in getting the required approvals from the sponsors. For eg. in the absence of a direct access road between towns A & B all conveyance are via town C, which leads to the increase in the travel time by 6 hours for travelling an additional distance of 150 KMs. This causes several delays in trade and results in increased logistics cost to the tune of 0.5 Million USD per annum, as compared to the industry standard for similar trade.
  4. Project Justification – Project justification is written to explain and convince the sponsors to commit the funds required for the project. Graphs and charts can be used to illustrate the facts. In this case the project justification could be something like…construction of a direct 50 Kilometer access road between towns A & B will cost 2 Million USD and would have a pay back in a period of 5 years, through the toll tax collections. This will also reduce the logistics costs in commodity trading to 0.75 Million USD initial 5 years and to 0.5 Million USD thereafter, thereby meeting the industry standard for similar trade.
  5. Project Scope –The scope of the project can also be called as objectives of the project – and it defines what the project will deliver. It is therefore important to write a precise and concise scope as it forms the basis of the project execution. This is one of the most important document once the project is approved; any change in scope could potentially mean additional cost and time therefore – needs to be approved by the sponsor. Now let us examine two different scopes for the given scenario (a) Construct a single lane road connecting towns A & B. (b) Construct a four lane highway connecting the towns A & B. In both the cases the aim of the project is being met, however the construction cost and time would be different. Let us presume that the project proposal for constructing a single lane road gets approved and during execution, a need is felt to add another lane to make it a dual carriageway – to satisfy the local requirement – change in project scope. This situation is not uncommon in any project – if this change is not implemented then the project will face a risk of not being approved by the local authorities, we do not have sufficient budget approvals to go ahead with the additional scope. How do we avoid such situations ? This is what we will discuss in the next blog.

 

Project and Project Management defined

Project can be defined as a set of interrelated tasks, which is bound by scope, time & resources and is intended to achieve a goal / deliverable. Interrelated tasks, Scope, Time, Resource, and Cost Constraint to deliver the end goal are the characteristics of a project. Projects are different from routine operations and to understand this, let’s look at the case of operation of a large super market and consider the aspect of the supermarket business that we are all familiar with – the merchandise area. For running this area – new products need to be ordered and displayed, old products need to be removed and disposed, display area needs to be made attractive, items need to be coded for ease in billing etc. The different tasks are interrelated, they consume time, manpower, cost and are done to deliver a goal, which is to have good sales. Would this store operation be classed as a Project? The answer is NO. We would class this as a routine operation, for the reasons listed below in the table that summarizes the characteristics of a project, with an attempt to distinguish it from routine operations.

  Project Routine Operation
Goal To introduce change to increase revenue. To optimize revenue by optimizing the existing processes.
Scope of work Changes from stage to stage. Unique in every project, with uncertainty at every stage. Standardized. Fixed routines. Limited uncertainty.
Resources Vary in terms of numbers and competency depending on the activity being performed at a given stage during a project. Steady resource requirement, with defined set of competencies.
Money Normally funded in a phased and planned manner through capital funding. Funded through yearly operational funding and remains more or less constant during the year.
Time Mostly a constraint, which gets amplified due to the uncertain nature of project activities and most often has a negative impact on cost. Fixed work schedules for fixed routines.
Nature of facilities The infrastructure is temporary is only for lifetime of the project. Equipment, Manpower, facilities etc. are set up only for the duration of the project. Requires permanent infrastructure that is required for the designed life of the facility.

 

Project management is an art of planning, scheduling, executing, monitoring and controlling the interrelated tasks in a project within the time, resource and cost constraints, in order to achieve a desired goal / outcome.

Effective Project Management the need of the hour

With the fast evolving technology, growing population and ever increasing needs, the future of the construction industry will definitely be a interesting and challenging one. Number of mega capital projects are kicked off every year across the globe, which offer huge opportunities for development at the same time can pose enormous risks in terms of meeting the project objectives of time, cost, quality and in some cases risks to environment and the community.  The bulk of these Mega projects are in remote and challenging locations which may pose additional challenges in terms of logistics, political risks etc. Experience has also shown that the Construction industry is critically short of competent Project Managers, Project Engineers, Design Engineers, Competent construction workforce to name a few.  Effective project management, right from the moment the project idea is conceived is therefore the need of the hour. A number of case studies on projects are available from which we can learn the secrets of success and the pitfalls of failure.  This blog post aims at outlining some of the basics of Project management.  My aim is to drive the content based on the feedback received from you. I hope you find this blog interesting !!

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