Transformational projects
Something needs to change
This is usually the motto for transformational projects, i.e. projects that bring about major change. They are usually triggered by a sudden opportunity (business potential, external pressure or the emergence of a new technology), which is located at the urgent-accurate end of the Eisenhower matrix. Their purpose is to improve the performance of the organisation and to create new capabilities and value that will be reflected in the organisation’s performance.
These changes are usually initiated by senior management, and although the concepts of urgent and important are often used in connection with such projects, excessive haste can be detrimental. For example, it is advisable to wait until a new, immature and expensive technology becomes more affordable. It is also important that the company sees change as an opportunity, driven by internal motivation rather than external circumstances.
Risks and challenges
As with all change, transformation projects carry a number of risks and challenges, so these 3 areas need to be addressed from the start!
Clarify priorities
One of the main challenges that companies face when undertaking this type of project is the proper prioritisation and clear communication of these priorities to employees. The project often runs alongside general activities, and as a result, companies face difficulties in allocating resources appropriately. Setting the right priorities can help to ensure that transformation projects do not disrupt the day-to-day running of the company and ensure that resources are allocated to the most important tasks.
Supporting change management
Everyone is afraid of change, especially when it is major. Members of the organisation may fear losing their position, their job or that their responsibilities will change significantly. Such fears can significantly hamper projects, so change management is essential to success. Proper communication and opportunities for participation will reduce the fears of the employees concerned.
Complexity
The third challenge is the complexity of the project. Transformation projects can involve many professional aspects, organisations and stakeholders. This technical complexity can cause problems in managing projects, especially if the company does not have the right resources and expertise.
The secret of a successful transformation project
It lies in communication. At the start of a project, or even before the project is launched, management needs to plan its communication strategy carefully. It is a good idea to involve a change manager from step zero, who can start preparing colleagues for the transformation in good time and support them along the way.
A key factor is to communicate messages appropriately and at the right time. Messages should be clear and convey the project’s objectives, benefits and new workflows. The communication plan should be tailored to each team and colleague, taking into account employees with different backgrounds, expertise and ideas. Communication is important not only at the first milestone, but throughout the project. Messages need to be clear and it is essential that they really reach people.
Change management is another key part of project management. Change can easily cause employees to worry about their future, so project management needs to ensure continuity and stability of work. When introducing new workflows and systems, it is important to be clear about expectations for employees and to clarify exactly what changes the project will bring to the lives of individual colleagues.
Change management needs to include processes to ensure employee involvement and to help with the transition. It is important that the project management pays attention to individual needs and supports employees with the changes.
Transformational actors
The success and effectiveness of transformation projects depend on a number of factors, including the roles and responsibilities of the people involved in the project. The actors and roles in this type of project can vary depending on the nature of the project, the size of the organisation involved and the culture of the organisation. However, in general, actors need to work in concert with each other for the project to be successful.
The first and most important actor is the customer, who is the initiator of the transformation project and who defines its objectives. The client is usually part of the top management and expects the project to be successful and to contribute to the goals of the organisation.
Also a key player is the project sponsor, who is the person or group supporting the project. The sponsor is responsible for ensuring that the project is tailored to the needs of the organisation and provides the necessary resources to complete the project successfully. The sponsor is of paramount importance in the initial phase of the project, when the objectives and expected results are defined.
The project team is the group that implements the project. The project manager leads the team, oversees the project and coordinates activities. The project manager’s tasks include drawing up the project plan, meeting deadlines and supervising the team’s work. Project team members are usually professionals with different skills needed to deliver the project, such as developers, designers, analysts and data analysts.
The communication team is also a key actor in the transformation project, responsible for developing and implementing the communication strategy and for informing and liaising with stakeholders. The role of the communications team is to ensure the support and commitment necessary for the successful completion of the project and the effectiveness of communications throughout the organisation.
Employees are also essential actors in the transformation project, whose role is to contribute to the success of the project. Employees need to understand the project’s objectives and outcomes and be willing to change and move to new ways of working. Employee involvement and commitment is critical to the success of the project.
The role of influencers, who are located at different levels of the organisational hierarchy and have a strong influence on their colleagues, is also cardinal in the transformation project. Influencers can help to convince employees of the importance and benefits of the project and help to smooth the introduction of new ways of working.
Structure of a transformation project
Structure of a transformation project
The first step is to clarify the reasons for implementing the transformation project and get the decision-makers to accept them.
The second step is to understand the project and clarify where the company wants to go from where.
The third step is to break down this journey, identifying the individual steps in the business needs from which each project can be derived.
The fourth step is the implementation of the project, based on the methodologies used by the company.
The fifth and final step is to carry out the back-testing, i.e. the summarisation of the project results using both tangible and intangible indicators.
You can listen the 1st episode on the below platforms in Hungarian:
Spotify:
Apple Podcast:Click Here!
Google Podcast: Click here!
Why project portfolio management is so important for successful businesses?The importance of project portfolio management (PPM) with business added value is being recognised by more and more companies, which is why its use is increasing in Hungary, furthermore in our opinion is PPM is indispensable in the life of successful companies. And we would like to support this with the latest episode of our PMO Klub Podcast, where we talked to Daniel Molnár, portfolio manager consultant at MVM Group, about the importance of project portfolio management, its operation and areas of application. And now we summarize the most important lessons for you!
It is not enough to do projects well
You also need to know how to do projects well. To do this, it is essential to have a good PPM system and a PMO (project management office) within a company. But what exactly do these systems need?
- An increasingly relevant management expectation is to create a single place where project information can be accessed on time and with the quality expected.
- Coordinate the implementation of projects and programmes.
- Untruthful and inaccurate information must be filtered out, for example from a decision support document.
- Management must be able to intervene immediately if neccessary
- It must be possible to filter out projects that are not in line with the strategy.
The solution to these needs can be project portfolio management, which provides high-level coordination of projects and follows them through from planning to measurement. The PPM system thus ensures informed management decision-making, enabling the efficient allocation and use of development resources in the organisation.
To use Dani’s forest analogy, if the project is the tree, then the portfolio is the forest and the PPM is the forest manager who conscientiously looks after the forest.
And what is the relationship between PMO and PPM? In general, the PMO is part of the PPM. And the PMO may also deal with project management, resource management and many other disciplines in addition to project portfolio management.
And what is the relationship between PMO and PPM? In general, the PMO is part of the PPM. And the PMO may also deal with project management, resource management and many other disciplines in addition to project portfolio management.
Does your company already need it?
If you want (or if anyone in management wants) to get a better view of investment spending and projects, it’s already worth getting a designated person or even an organisation to get the PMO up and running. For a few tens of projects, it may be justified to implement a PPM system in an organisation, but for 50-100 projects it may be necessary.
Do the loudest projects usually win resources in your company?
The PMO can help you in this case too in the following ways:
First, by introducing control points in the project lifecycle that both bring transparency to the management of projects and prevent the loudest project owner from winning resources.
A common set of concepts and terms can be applied to the management of development activities in the organisation.
It may be helpful to have a common set of planning and reporting principles, expectations and forms for all project activities and to require users to use them. In addition, it is also important that the management of the portfolio and the central coordination of project resources is a function that the PMO itself should take on.
In addition, it may be possible to outsource the control of the use of project resources to a separate senior management body, including the most vocal project owner or even the most silent. The point is to involve several managers who are independent of the project, so that transparent decisions can be made.
Managing projects and programmes and mapping the processes in a single IT system is a good way to ensure that projects are managed according to a common methodology.
A multi-level authorisation framework for the use of project resources, including a multi-gate resource allocation system, should be established.
Excel excluded
Although we often hear that Excel is now the world’s silver bullet, if we look at it as a portfolio management tool, we have to admit that it is no longer a ball-breaker for a project portfolio of tens of hundreds of projects. But then, what level of tool is needed for good portfolio management?
The Danis had just launched their new professional PPM IT application on the day of the interview, and the innovation had been preceded by extensive research, during which they had observed that while there are good opportunities for custom development, the really good solutions are in the boxed product area, so anyone who is about to implement PPM or is thinking of replacing an existing system should look at the boxed product market.In a process that takes roughly three to four months, we can tailor such a system to our own organisational needs and then start the subsequent implementation and training.
It is important that the organisation accepts the new system for reporting and measurement. Also, it is essential for these IT applications that the business application host is PM itself, and that we impose a uniform mandatory management of this at the enterprise level, to ensure that we can manage our portfolio in a transparent way.
While any change can be difficult, in the long run it is definitely worth implementing a professional PPM IT application, as it is a great way to measure progress and budget variances in projects. This makes it much easier to spot any slippage.
The actors of a well-functioning PMO system
It is important to have clearly defined actors in the PMO system. For example, the project manager, the claim manager, the business claim manager, the project sponsor, are all indispensable actors in a well-functioning PMO system.
It is also essential to have dedicated functions in the central PMO, such as portfolio coordinators who liaise with and collect information from the claim holders or project managers. There are also project analysts, who examine the portfolio, carry out analyses, filter out data inconsistencies and, not least, produce nice reports for management.
I could mention a lot of other roles, the PMO application manager responsible for IT support, or if the PMO is also responsible for preparing and managing projects, business analysts, project controllers. Everyone has an important role to play in the life of a well-functioning PMO. Other participants are for example project sponsors or senior management forum participants. If one is trying to run a resource management, the resource owners, resource managers, dedicated schedulers, cost estimators, or project procurement people are the ones who still help projects to move forward.
Give it time!
The extent to which an organisation supports a project culture depends mostly on the PMO, who is responsible for ensuring that the organisation’s culture supports portfolio management. Rules and definitions are easy to create and put in place, but it takes time to get them accepted by the organisation.
In this process, we need to support the organisation on an ongoing basis, for example by organising various forums where we present our process, the way our own organisation works and give concrete examples to those involved, which will give them a better understanding of how we work and where they fit into the whole of project management.
For example, Dani and his team managed to introduce and embed this kind of organisational functioning in two or three years and have been developing their project culture ever since:
“Support from senior management is important, but we also need to make sure that we are accepted in the organisation and that we can become more integrated into the life of the organisation as we do more essential tasks.”
Did you find the above information useful and want to delve deeper into the world of project portfolio management? Then listen to the full conversation in the latest episode of the PMO Club Podcast, where Dani also reveals how they control the 1,100 projects they run each year, what criteria they use to prioritise them, and what he finds the biggest challenges in setting up, building and running a portfolio management organisation!
You can listen the podcast episode on belwo platforms in Hungarian:
Spotify:
Apple Podcast: Click Here!
Google Podcast: Click Here!
Reason or Emotion?
One of the biggest misconceptions is that success relies solely on rational factors. Just because a project is numerically successful does not guarantee that team members feel successful.
We often discuss how various techniques increase a project’s effectiveness. Alongside portfolio management [https://pmoklub.profexec.com/poscast/miert-nelkulozhetetlen-a-projektportfolio-menedzsment-a-sikeres-cegek-eleteben/] and transformational projects [https://pmoklub.profexec.com/poscast/a-sikeres-valtozas-titka-transzformacios-projektek-es-a-kulcsfontossagu-lepesek/], it is important to address an unfairly neglected topic: emotional intelligence. EQ is a crucial factor in the life of an organization.
What exactly is EQ (emotional intelligence)?
An emotionally stable person can maintain their mental balance even amidst the greatest problems and difficulties. They do not waver or collapse. The EQ model, a product of the positive psychology movement, provides a toolkit for this.
How is the EQ model structured?
First and foremost, we focus on self-awareness. Self-reflective existence is about reevaluating our own thinking patterns. (How do we experience situations? Do we trust ourselves? How much do we love ourselves?)
Self-love is not about selfishness but self-acceptance. It’s about being okay with who we are. This is the foundation of emotional intelligence and empathy. We cannot be empathetic until we are at peace with ourselves.
What does empathy really mean?
“If someone is sad, it is not empathy to tell them not to be sad!”
Empathy does not mean copying the other person’s feelings but being able to place oneself in their emotional state without losing one’s own balance. It’s about accepting and understanding their problem and then helping them rise above it.
The Role of Emotional Self-Control
There are situations where we act instinctively, like pressing a button and immediately exploding. These automatic reactions are linked to low EQ levels.
A hallmark of high emotional intelligence is having control over our actions. We act consciously and practice emotional self-control, curbing instinctive reactions without suppressing our emotions. Even in anger, it’s possible to express it appropriately.
In Every Moment, It’s Decided Whether I’m Part of the Solution or the Problem
Most people are extremely annoyed when they do not receive the respect they deserve, or when their performance is undervalued in a personal manner during work. At high EQ levels, we can remain professional even in such situations.
In response to an unfair, personal performance review, an emotionally intelligent person would react not by banishing their superior to a warmer climate but by saying:
“Sir, let’s maintain mutual respect. I respect your position. Please do the same. On this platform, we can discuss any objections you have regarding my work. If I made a mistake, I will correct it, but we cannot communicate in this manner.”
Models and Methods Supporting Emotional Intelligence
Analysis Instead of Brooding Over the Past
The most energy-consuming organ in the human body is our brain. Brooding over the past and worrying about the future are typical energy-draining and nerve-wracking activities.
There are two constructive ways to process past experiences and events:
ANALYSIS
Analyzing past events to learn from them and to understand what can be done to avoid negative events in the future.
FORECASTING
Examining how past trends, dynamics, and correlations project into the future. With a good forecast, we can prepare for future problems based on our previous experiences.
Personality Type Analysis
Even the ancient Greeks dealt with the topic of personality types. They distinguished four types, characterized as follows in a work environment:
- The sanguine has a cheerful nature and knows no impossibility.
- The choleric becomes angry when faced with unexpected difficulties and tries to remove obstacles at all costs.
- The melancholic sadly acknowledges the problem and thoroughly thinks through their plans and possibilities.
- The phlegmatic avoids conflicts at all costs, using significant detours to sidestep problems.
A more modern approach is associated with Carl Gustav Jung, who examined how people function under high stress and emotionally unstable situations based on personality dimensions. His method does not pass judgment on any type but rather descriptively shows both the advantages and disadvantages of people.
Introvert-Extrovert Model
Most analyses are based on a two-dimensional model showing where an individual gains their energy from.
Accordingly, there are two types of people:
INTROVERT (inward-looking): Gains energy by introspecting, thinking through events, and meditating.
EXTROVERT (outward-looking): Gains energy through interactions and connections with people.
Often, a work role requires behavior opposite to our instinctive behavior. The good news is that this can be developed. A quieter, inward-looking person can become a good speaker, and a loud type can also be capable of deep work.
Mastering Project Management – Traits of a Successful Team
The more diverse a team is, the better its performance. An ideal team includes people of various ages and personality types. This way, there will be someone who knows the answer to any arising problem.
How Should We Relate to Each Other?
Extroverted people typically respond immediately to a question. In a highly extroverted team, the norm will be a shower of ideas, questions, and answers.
An introverted person, on the other hand, likes to delve into and think through their response to a question. Therefore, it is worth giving them time. In return, they will come up with a well-founded, complex solution.
Pareto Principle – Who Are the Key People?
Eighty percent of organizational value is created by 20% of the employees. These are the “key employees.” From an HR perspective, their retention should be prioritized. When such key people leave the organization, it is usually due to inappropriate style and managerial communication.
Loyalty is less influenced by salary than by how a manager communicates with subordinates. Don’t become the leader people leave the organization because of!
Success-Oriented vs. Failure-Avoiding Behavior
Healthy functioning is success-oriented. When I take on tasks to see the result and the value I have created, this process brings joy. Success-oriented people take on tasks with risks but which are not impossible to achieve. They know what depends on them and what makes a project successful. They draw conclusions from failures and can learn from them.
In contrast, failure-avoiding behavior is motivated by fear. Such a person looks for ways to avoid being seen as unsuccessful, often deferring decisions and commitments. Failure avoidance develops where mistakes are not allowed. In a good corporate culture, it is necessary – even obligatory – to make mistakes.
What Is an Emotionally Mature Project Leader Like?
A boss with high emotional intelligence leads the team in a way that team members are success-oriented, dare to ask questions, and share ideas. They support rather than undermine each other.
If all this is achieved, success and a good atmosphere are guaranteed. Moreover, there is no struggle with labor shortages because people are happy to stay long-term in such an environment.
An emotionally mature leader:
- Is at peace with themselves.
- Is optimistic and success-oriented.
- Sets a good example with their manners, which team members automatically emulate.
During a project, it is worth focusing on developing soft skills, as emotional intelligence has a greater influence on performance than one might initially think.
Experiences from the Unique Triple Bank MergeChallenges and Solutions in the Bank Merger: The Birth of MBH Bank
In the PMO Club podcast, we have previously discussed many interesting topics, including portfolio management [https://pmoklub.profexec.com/poscast/miert-nelkulozhetetlen-a-projektportfolio-menedzsment-a-sikeres-cegek-eleteben/], transformational projects [https://pmoklub.profexec.com/poscast/a-sikeres-valtozas-titka-transzformacios-projektek-es-a-kulcsfontossagu-lepesek/], and emotional intelligence [https://pmoklub.profexec.com/poscast/ne-valjunk-azza-a-vezetove-aki-miatt-elmennek-az-emberek-az-erzelmi-intelligencia-szerepe-a-ceges-kulturaban/]. This time, however, we would like to showcase the possibilities, challenges, and solutions in executing a unique global project through a concrete example.
Recently, the largest merger in the banking history of the region took place, resulting in the creation of MBH Bank. Our recent guest, Patrícia Seprődi, Managing Director of MBH Bank, played a key role in this. She is also the head of the Integration Management Office and the Center of Excellence, following the unique triple bank merger process closely and proactively from start to finish. The nearly three-year process successfully concluded on May 1, 2023, resulting in the establishment of Hungary’s second-largest, purely Hungarian-owned financial institution.
What is this merger?
On April 1, 2022, Budapest Bank and MKB Bank merged, followed by the merger of Takarékbank with the then MKB Bank on May 1 of this year, creating MBH Bank Plc. thanks to a name/brand change.
Project Milestones
Strategic Planning
The first step in the process was the creation of Magyar Bankholding, which facilitated the merger of the three member banks, providing the legal background necessary to execute the merger steps. “After the first step, we had to develop the medium- and long-term strategy of Magyar Bankholding. This strategy outlined the processes and goals for the next two years, guiding us significantly, as we had to follow the milestones of this strategy.”
Time Factor
When building a strategy, many factors must be considered, one of the most important being time. There are two approaches to a project’s temporal execution:
- A rapid merger, executing planning for all major strategic points as quickly as possible.
- A slower, much more detailed, thoroughly planned process.
For MBH, creating and establishing unified banking operations as quickly as possible was a fundamental aspect, which early on defined the strategic path. Later, other considerations were aligned with this strategy, the most important being human factors, technological tasks, business challenges, customer perspectives, legal and other operational tasks, and program management.
Aligning Cultures
There’s a famous saying that culture eats strategy for breakfast. MBH leadership recognized this early on and began implementing specific action plans to build the new corporate culture. Fortunately, neither culture was chosen exclusively. Instead, under the leadership of the HR team, many workshops were held to interpret cultures and define values, where lengthy discussions took place about the type of workplace they wanted to create.
Risk Management
For a project of this magnitude, it is advisable to involve external experts who have done similar work before and have more experience than we do. MBH Bank also sought the help of major consulting firms, which supported the merger and risk minimization through various training sessions.
Human Factors
Human factors are one of the most prominent elements in any project. Identifying key personnel is crucial in a project of this caliber, which should be examined from two perspectives:
- Who are the individuals with key roles in the project?
- Who are those who play a significant role in maintaining business continuity?
Celebrating Successes/Milestones
To maintain motivation during a project, it is important to highlight intermediate results. We Hungarians are not particularly good at this, yet it is a crucial element. One of the most important leadership responsibilities is to recognize achievements, pause for a moment, and celebrate them.
Managing Burnout
When an organization executes a large-scale program, everyone focuses on achieving the goal. After such a significant performance, an emotional vacuum naturally develops among people. It is therefore worth preparing for what happens after the project is completed. Post-project tasks can be very helpful, but it is important to make organization members aware that they have reached the starting point of a new chapter, with many useful tasks still ahead.
Not Fearing Unexpected Situations
The preparatory work for the MBH merger began virtually simultaneously with the onset of COVID-19. The company found itself in the online space overnight, initially a challenge, but later to their advantage.
Why? Every project manager knows that one of the most challenging tasks is booking meeting rooms that can accommodate everyone and provide the necessary tools. Moreover, this involves travel, which takes up a lot of time. Therefore, managing a project in the online space can also be beneficial.
Summary
The MBH Bank merger serves as an example of the peculiarities of managing a large-scale project, affecting smaller groups organizationally, and highlighting the importance of human factors in such a complex, large project.
How you imagine yourself as a project managerThe Dynamic Evolution of the IT Sector in Corporate Project Portfolios
It’s probably no surprise that the IT sector is currently one of the most dynamically developing areas in corporate project portfolios. Today, information technology is becoming increasingly important and significant in many places. Companies now rely more on IT systems and digital tools than they did a few years ago. In this article, we’ll provide a brief overview of how the IT sector can perform in a large multinational, international company. If you’re curious about what has happened in this area over the past few years, how IT can currently work with other sectors within a company, or what experts envision for the future, it’s definitely worth reading this post or listening to the latest episode of the PMO Club podcast, where Zoltán Sándor, CEO of Profexec Services, interviews Miklós Gondolovics, head of the IT Project Office at Richter Gedeon, about this topic.
EXPERIENCES FROM RECENT YEARS
Over the past 6-7 years, the role of IT in companies and projects has gradually increased. The most dynamic growth occurred in 2022 and 2023, and now this area is almost unavoidable. At Richter, software solutions are most needed in the investment program, and in building engineering and technology.
Five years ago, the international pharmaceutical company operated in isolated silos, but this system has been restructured during its development.
A WELL-FUNCTIONING SYSTEM
At the Richter Gedeon IT Project Office, the established practice is to act as a service provider within the company’s network. The initiative always comes from Richter and is then channeled to IT. Who becomes the main driver of a given project depends on many factors. Typically, the company handles the preparation, and IT takes over the driver role during implementation.
Interestingly, they think in terms of an eight-year corporate strategy, which has four pillars. This strategy significantly impacts IT, as tasks related to these pillars are ranked in their system and prioritized accordingly. This ranking rarely changes. Instead, the portfolio composition can shift, with projects potentially being added or removed, even those not mentioned during the annual planning. In such cases, a swap solution is implemented, considering current capacities.
THE CURRENT STATE OF IT PROJECT MANAGEMENT
The role of IT project management has also changed in recent years. Four years ago, the pharmaceutical company operated in a dual mode, but now IT project managers (PMs) work more on the business side, as there is generally no project management there. This change naturally required PMs to adapt to the new area’s specifics to be accepted on the business side. However, the qualities needed for this role have not changed. These remain essential soft skills, good communication abilities, high-level English proficiency, and flexible handling of cultural differences.
When a manager is involved in a project varies by company. At Richter, PMs are brought in from the tender phase, leading the process and even participating in evaluating offers. This approach has many advantages. Once the project starts, the manager knows exactly who they will work with and what budget they will have, resulting in better-developed risk management than if the PM were involved later.
Finally, it’s essential to highlight what generally distinguishes an IT project manager from a non-IT project manager. It’s beneficial to understand networks and system development, but these are not the main criteria. The most important is to understand organizational operations and fit into them. A good IT project manager is not rigid, is flexible, quickly adapts to different situations, and is persistent since it takes at least a year for a new PM to start a project. It’s a highly diverse and complex role, but once a manager understands the processes, they will be a successful IT project manager.
RESOURCE MANAGEMENT AND SPONSORS
In projects, IT resources are not the bottleneck, as this has been properly scaled over the years. The first step is to estimate the necessary resources from the business side at the project’s start, requiring sponsor approval. The project manager’s task is to control these resources. If any problems arise, an escalation process begins, and the project’s deadline may be postponed.
The head of the Richter IT Project Office has also observed positive changes in resource management, with fewer projects launched in recent years, avoiding capacity issues.
IT projects generally have high-level sponsorship. Typically, there are multiple sponsors from different areas, and projects usually align with their strategies. The standard is to have both IT and business sponsors for a project, but there are more complex compositions, making communication between parties crucial.
WHAT THE FUTURE MAY BRING
The role of the IT sector is likely to continue growing at the same pace in the coming years. For most companies, a clear goal for 2024 is to introduce and use AI and robotic operations. At Richter, they are already examining how these new technologies can be utilized in various areas, with some processes already automated in their systems.
Artifical Intelligence in Project Management – Real life examples from an industry expertIt’s likely everyone agrees that the biggest hype today surrounds artificial intelligence (AI). It’s not just making waves in the workplace, but also increasingly permeating our daily lives. Naturally, AI can already be utilized in project management, though trust in this new technology is still developing. In the latest episode of the PMO podcast, Zoltán Sándor, CEO of Profexec Services, talks with Billal Ben-Redouane, who has extensive experience in global IT business operations and infrastructures, and profound expertise in analysis, planning, and executing initiatives in complex environments.
Billal shares a wealth of practical advice during the episode, which we now elaborate on in detail in the following post.
ARE AI SOFTWARES REALLY USEFUL IN PROJECT MANAGEMENT?
The first and perhaps most important question is whether AI truly aids in work. Anyone who has delved into this topic has likely encountered numerous tools, software, or even chatbots. With hundreds of options available, it’s easy to get lost. However, those who find the 2-3 truly useful tools can automate up to 30% of their work with AI.
But let’s get to the point and examine how these tools assist in project management.
Based on current experiences, there are very few areas where AI is not useful. It’s important to think of AI as a tool; it won’t solve problems or make decisions for you. Instead, it acts as an assistant throughout tasks. It can take over burdensome tasks like filling out documents, writing meeting minutes, automating email content, or creating presentations. Nowadays, even larger companies can benefit from using AI software. For example, Collaborations encompasses collaboration tools. Its core idea is combining a large language model with various spreadsheet or presentation software. Such a tool can filter out the essential data from a 30-40 page presentation. If we’re searching for something in a larger document, this tool can quickly find and highlight the relevant parts and even create a new presentation from them.
In summary, AI tools are currently well-suited for focusing and data analysis in project management.
At this point, a legitimate question arises: can AI take our jobs? Those who have worked with AI know that while it is artificial, it’s far from truly intelligent. Therefore, it cannot replace the human element in processes. However, it must be emphasized that project managers who do not keep pace and learn to use these tools may find themselves at a disadvantage in the job market.
HOW TO CHOOSE THE BEST?
As mentioned earlier, with hundreds of software available, it’s challenging to single out one. This is why PMI developed a new chatbot specifically to assist in project management. The simplest way to describe it is as a ChatGPT that has learned the entire PMI knowledge base. PMI Infinity is familiar with historical data, proprietary documentation, and the history of project management, enabling it to provide specific answers. This software is completely free for PMI members.
Before using PMI Infinity, we recommend consulting the organization’s guide on prompting, which details the instructions and questions project managers should give to the software to get the appropriate answers.
In a corporate environment, it’s a significant challenge to use secure and reliable software that, for instance, does not share our data with third parties. Nowadays, all serious programs have solutions for this, such as Microsoft systems, which are entirely closed. If we still have doubts, we should always thoroughly research the tool and continuously monitor updates, as these software are constantly evolving.
THE FUTURE OF ARTIFICIAL INTELLIGENCE IN PROJECT MANAGEMENT
Based on current experiences, the use of AI will naturally become a regular part of our work. In project management, AI is already playing an increasingly active and significant role, mostly in the form of software. In the future, it will likely take over repetitive tasks, which is good news as it will allow project managers to focus on what currently receives little attention: communication. Using AI tools can reduce the time spent on administration, allowing PMs to spend more time with the team and create a more enjoyable work environment.
GETTING STARTED
And now, here are the three most important points to take the first steps:
- Prompting: Fortunately, many useful courses are available on this topic. Start with these!
- Appropriate Software: Select the two or three programs you will learn thoroughly and use in the future.
- Stay Open-Minded: While it sounds simple, it is extremely important. Besides learning to use the tools, you’ll need an external advisor for further development, such as through training.
EVERYTHING YOU WANTED TO KNOW ABOUT PROMPTING
The courses mentioned above mainly focus on how to ask good questions and identify less appropriate ones. Here are a few tips for formulating effective prompts:
- Encourage the model to ask follow-up questions.
- One question is not a question.
- Always provide as much detail as possible.
- Use examples.
- Be very patient.
- Consider having the process reviewed at the end.
- Use a very specific persona or perspective.
- Write as if you are conversing with a person.
For those who want to delve deeper into the topic, the PMI website offers numerous additional guides and courses, all of which are completely free.
Assessing the Maturity of the PMO System – Here’s How!In the latest episode of the PMO Club Podcast, Zoltán Sándor, the CEO of Profexec Services and the host of the show, discusses with his guest the importance for every company to understand the level of project culture within their organization. The question is whether they are aware of this and if they know how to assess and develop it based on the results.
The guest for this episode was Kálmán Kovács, a long-time member of the Profexec team responsible for the PMO and Consulting division within the company. Kálmán holds a degree in finance and has nearly 30 years of experience working in multinational financial (banking and investment services) environments, as well as five years in the Hungarian SME sector. He has gained 23 years of experience as a member of executive teams in various organizations, leading finance and back-office operations, organizing institutions, managing organizational development areas, and overseeing project and portfolio management. Zoltán asked Kálmán how to assess the maturity of the PMO within a company and why it is important.
STARTING FROM THE BASICS
Firstly, it is essential to clarify what a PMO (Project Management Office) is and its role within a company. A PMO is an organizational unit responsible for project management and development, encompassing the project management culture within an organization. It is a key tool for implementing strategy. The appropriate system is one where the strategy is translated into projects, which are then integrated into a portfolio. The PMO is responsible for this, providing the framework and managing the projects.
There can be other frameworks and different PMOs. Essentially, project-based thinking started in the IT sector, where there was a significant need for structured requests from the business side. From there, the PMO evolved to higher levels, supporting the entire system at an enterprise level. Large companies typically use this toolkit and organizational unit. For SMEs, it requires additional investment, which they generally do not apply, although it would be beneficial.
Based on methodology, three types of PMOs can be distinguished:
- Supportive PMO: Establishes rules, mentors project managers, and provides guidelines.
- Controlling PMO: Has authority and influence to enforce compliance among project managers.
- Directive PMO: Allocates human and financial resources, directly managing projects.
STRUCTURING THE ASSESSMENT
Kálmán has long worked in consultancy roles and realized there wasn’t an appropriate, objective tool to compare PMO systems. Assessing PMO maturity involves examining three dimensions: strategic, operational, and tactical services. Here’s what you need to know about these dimensions:
- Strategic: Involves top management responsible for strategy execution and monitoring, often encompassing portfolio management.
- Tactical: Provides services to specific roles, such as business analysts, including training and development programs processed by project leaders.
- Operational: Directly targets project managers, focusing on specific, actionable items.
CURRENT STATE AND INSIGHTS
According to Kálmán, building and developing a project management culture is challenging everywhere. However, it is important to note that Hungarian PMO systems have proven to be quite advanced internationally.
Benchmarking and gap analysis are useful to see how organizations compare to more developed counterparts, which is not a problem, as each organization focuses on its unique developments. The most common issue is that project managers often lack the necessary authority to execute projects effectively. The aforementioned questionnaire addresses these issues, examining authorization levels, participation in financial planning, resource management, competencies, training, mentoring, project leader support, and regulatory systems.
OVERCOMING CHALLENGES
The biggest challenge and obstacle to development is usually if top management does not provide enough space. Therefore, project managers should first win over the leadership before proceeding to other departments.
Typically, these assessments are conducted in large companies, primarily within IT departments. The assessment can be further developed upon request, as it currently focuses mainly on PMO project and portfolio management. However, it can delve into more detailed aspects of project management, such as human resource management, where there is growing demand for development and analysis.
CONCLUSION
Overall, assessing and developing project management culture within organizations is crucial, and understanding the current state and areas for improvement can lead to more effective project execution and strategic alignment.