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The secret of a successful change: Transformational Projects and their key steps
The secret of a successful change: Transformational Projects and their key steps

 

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!

Don’t Become the Leader People Leave Because Of! – The Role of Emotional Intelligence in Corporate Culture

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 Merge

Challenges 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:

  1. A rapid merger, executing planning for all major strategic points as quickly as possible.
  2. 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:

  1. Who are the individuals with key roles in the project?
  2. 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 manager

The IPMA and PMI Certification Systems

The Growing Demand for Project Managers

With current growth trends, there will be a need for approximately 16 million more project managers internationally by 2030. The importance of this role cannot be overstated, as high-quality project management is essential for maintaining production levels in any factory or plant. Project management is a multifaceted profession, and significant differences can exist between project managers. Therefore, a well-established certification system is necessary to differentiate various levels of expertise.

Recent Podcast Episode: A Detailed Analysis

In the latest episode of the PMO Club podcast, we thoroughly examined two such certification systems. The guests were András Vikár and András Luczay.

  • András Vikár is the Operations Director at SAP Hungary and an IPMACERT examiner. He holds the highest IPMA certification and has over 25 years of experience in project management. He has led complex projects and programs, served in corporate PMO and IT leadership roles, and is currently part of the SAP team.
  • András Luczay is the Head of the Training Division at Profexec Services and a PMP exam preparation trainer. He has extensive experience in both multinational and project environments. Before his current role, he led projects and programs in large organizations and was responsible for project managers. He also leads psychodrama self-awareness training groups.

Both guests are experts in their fields, and the following discussion highlights the insights from the podcast.

Why Certification is Worthwhile

If you are a project manager, your first and most important question is likely why you should invest time and energy into these two certification systems. From an employer’s perspective, these certification systems represent a mindset, experience, and knowledge, making them a valuable first filter in the selection process. Additionally, certification requirements can also come from the supplier side. Notably, there can be a 15-30% salary difference between those with and without PMP certification.

The IPMA Certification System

Numbers

As of 2022, there were 380,000 active IPMA certifications worldwide. In Hungary, there are currently 247 certified project managers, with nearly half having completed the D level certification.

Structure

The International Project Management Association (IPMA) defines the certifications. Within IPMA, the Certification Board is responsible for defining the standards and processes for certifications. Additionally, the ICR (International Certification Regulations) and ICB (Individual Competence Baseline) are essential, as they define the certification processes and competence base evaluated during certification.

Certifications

The IPMA certification system has four levels and three domains:

  • A Level: Director level for program, project, and portfolio management based on the three domains.
  • B Level: Senior level for program, project, and portfolio management based on the three domains.
  • C Level: Project manager certification.
  • D Level: Project expert certification.

Exam

IPMA exams do not primarily assess theoretical knowledge. They measure how well project managers can apply the tools they have learned in practice. Three competencies are always evaluated:

  1. People Management: Leadership, teamwork, communication, and negotiation skills.
  2. Practical Project Management: Resource management and risk handling.
  3. Perspective: Long-term strategic operations and internal culture of a project.

Expectations and examination methods vary by level. Unlike PMI exams, IPMA exams include multiple-choice questions supplemented by essays and interviews.

To take the IPMA D level exam, no specific prerequisites are required beyond a resume and self-assessment. For the C level, project experience must be demonstrated, including a project list and references. Levels B and A require five years of experience. Certifications are valid for five years, and renewal requires retaking the exam and proving the last five years’ projects. Upgrades are not currently possible; only existing expired certifications can be renewed.

The PMI Certification System

Numbers

There are currently 16.5 million project managers globally, with 680,000 registered PMI members. The PMP (Project Management Professional) certification, held by 1.4-1.5 million project managers, is the clear star of the PMI certifications. About 15% of the total project management market holds PMI and IPMA certifications. The market has grown steadily over the past few years, with over two million participants annually, and this trend is expected to continue.

Certifications

PMI offers eight core certifications and four additional ones. The PMP certification, one of the top 10 business certifications internationally, is the most prominent. The system also includes sub-certifications and a recently developed certification based on agile methodology.

Certifications can model career paths and are aligned with specific fields, such as business analysis and program and portfolio management.

Exams

PMI exams also aim to assess practical knowledge. The exams are typically test-based, with multiple-choice questions focused on project situations. People management competencies make up 42% of PMI exams.

To take the PMP exam, a project manager needs 36 months of project management experience and 35 contact hours of preparation or a university course in project management. While official preparation is available, it is not mandatory.

The PMP certification is valid for three years, during which participants must collect PDUs (Professional Development Units) by attending additional courses and webinars.

Conclusion

A good project manager should inherently have strong organizational and analytical skills. Nowadays, social competencies are even more crucial than in the past. Certification is not everything, as the right attitude is also indispensable. One can be adept at overseeing and managing a system without formal certification. However, the certifications obtained from PMI and IPMA have several positive aspects that can be beneficial.

The two certification systems are distinct and assess different competencies. They are not rivals but rather complementary to each other.

Successfull Project Management in the Business Service sector

More and more international companies are establishing Business Service Centers (BSC) in Hungary, leading to a growing demand for project managers in this sector. An innovative company today is constantly expanding, and it is now a basic requirement that individuals with the right competencies be placed in the right positions. However, finding all the necessary resources on time amidst dynamic environmental changes is not always possible. This is where engaging external project managers becomes worthwhile.

Adrian Pop works as Invoice Automation Lead and Global Supplier Enablement Lead, and has also held positions such as Service and Process Management and Operations & Engagement Manager. In the latest podcast episode of PMO Klub, Adrian shared insights about the future of project management and detailed his experiences working with external project managers. If you’re curious about his report, listen to the episode in English or continue reading our article on the topic.

Let’s Get to the Point

Let’s start with when and why it’s necessary to involve external resources for the successful completion of a project. Companies employing external project managers already hire people with a wide range of competencies. There may be a unique project within a company that requires specific skills even before the project starts, making it clear that external resources are necessary in such cases.

However, it’s also common to face obstacles during the process, where an external perspective can be beneficial in pushing the team forward. In such cases, an external project manager who can provide fresh insights can be valuable.

Such individuals can be engaged for short-term or long-term periods, ranging from a few months to even half a year.

Qualities of a Good Project Manager

Essentially, an ideal project manager should be capable of leading various types of projects without any issues, just as in the BSC sector. However, what sets a BSC project manager apart is the ability to communicate the same issue in two or three different ways, as they must be aware of cultural differences among the audience.

They must also identify the time frames that allow current messages to reach the right individuals. Therefore, the methodology used is the same as any project manager in this field. The difference lies in soft skills. If these skills are present, a project manager can be successful in the BSC sector as well.

The most important competencies include good communication, handling and involving stakeholders, and selecting and using the ideal methodology.

When selecting an external project manager, perhaps the most important factor is their ability to identify with the company’s values, and to manage the participants they will interact with during the project. Technical and methodological abilities are important, but communication skills are paramount.

At this point, it’s worth mentioning that today, human interaction is no longer necessary during task completion. Following the COVID period, it is entirely natural for colleagues to be separated by hundreds or thousands of kilometers. Numerous examples and much experience show that work can still be seamless. This can also be an important consideration when selecting an external person.

Making Collaboration Smooth

To ensure effective collaboration with an external project manager, only a few simple things are needed. First, it’s important to treat them like an internal colleague, to be aware of shared goals and directions. It’s important that everyone within the team is treated equally.

Furthermore, it will be decisive how comprehensive the company’s presentation is. It is very important that, over at least one and a half to two days, everything is thoroughly explained to the external party. The corporate culture, work methods, and all the parties involved, along with their job roles.

We also need to consider having similar personalities within the team, who we know will get along well with each other. This is also true for an external project manager. They also need at least one person from within the company they can rely on and ask questions of. In addition, the leader is just as important a person, and it is essential that they focus on integration. The project will only be successful if the external person has all the necessary tools and support.

The Future Project Manager

Today’s project managers are much more qualified and flexible than they were ten years ago. A perfect example of this is the dominance of agile methodology. As the project management sector began to spread, it quickly became clear that those who did not keep pace with this “wave” would be buried under it. Therefore, it was necessary to begin learning, implementing, and embracing agile methodologies. Since then, numerous similar methodologies have been implemented in the project management field. In the future, it will be particularly important for employees in this sector to be flexible and adaptable to rapidly changing trends.


*We include all functions and jobs that support business processes, assist with customer communication, or are essential for ensuring our internal operations.

IT Portfolio and Program Management- Interview with an expert

IT Portfolio and Program Management: An Intricate and Complex System within a Company

In a company, IT portfolio and program management is a highly intricate and complex system. Projects, portfolios, or programs can span different areas and sectors of the company. Zoltán Tordai, the head of the MOL Group IT Strategic Program Planning team, started as an IT project manager eight years ago and also served as the Corporate ERP portfolio manager for a long time. Therefore, he has comprehensive insight into project, portfolio, and program management. Below, you can read excerpts from the interview with him. The full interview can be heard in the latest episode of the PMO Club Podcast. This episode is particularly recommended for those interested in practical examples related to the topic from the head of the MOL Group IT Strategic Program Planning team and the host, Zoltán Sándor, CEO of Profexec Services.

LET’S START FROM THE BEGINNING

To understand the processes and connections, let’s define the following:

PROJECT: Any work that takes more than five days to complete and may require external resources qualifies as a project, which is always specialized in solving a problem. A budget request and approval are always necessary for a project to commence. There are smaller or “mini” projects that can be completed within 100 days. A company can launch hundreds of unique projects in a year. Projects are typically composed of a project team led by a project manager. Projects are created during the business need development phase.

PORTFOLIO: These are formed along business lines and areas. A portfolio can encompass multiple areas simultaneously. It involves prioritizing tasks, scheduling, managing dependencies, resource budget management, resource allocation, and more. Portfolios are usually very complex and intricate. A portfolio manager can be involved in up to 100-120 projects in a year.

PROGRAM: Created to achieve a strategic goal. It defines which projects need to be executed to meet the set goal within two to three years. Planning usually starts with creating a roadmap. Program management includes checking the impact of projects on each other, typically on a monthly basis.

Projects, portfolios, and programs are constantly interconnected and influence each other. A simple example is if a problem arises in a project, it can delay the entire program. Therefore, continuous monitoring of projects is essential to ensure everything progresses properly.

THE STRUCTURE OF A PROGRAM

Essentially, a project, program, or portfolio starts not from the project but from the strategy. Every program’s planning begins with a defined strategic direction or goal, which is then broken down. The inclusion and criteria for projects in a program depend on many factors. It’s crucial to see that in a program, almost every project is interrelated, and often one project’s outcome affects another within the same program.

One critical aspect of project planning and prioritization is that all projects within a program must finish simultaneously since the goal needs to be achieved at the same time.

Additionally, the grouping of projects can be determined by the competencies of the employees.

MANAGEMENT QUALITIES

The risk factor is the most defining difference among the three management levels. The uncertainty factor is lowest at the project management level. In this position, the answers are clearer as the next steps are more foreseeable. A project manager has a good overview of the entire project schedule and also handles many administrative tasks.

In contrast, at the program management level, even with a high-level map, the direction can change frequently. This is natural as many factors may arise over time. Organizational or market environments can also change, restructuring the entire program. It is essential for a program manager to handle these changes appropriately and effectively.

A portfolio manager needs to have an overall view. They must continuously monitor whether projects are progressing properly. If prioritization within an area is challenging, they need to assist. Thus, this role involves more stakeholder management compared to project management, and the tasks differ significantly from those of a program manager.

Interestingly, within the MOL Group, they have solved communication between areas by using a large central system. All data needed by different areas can be extracted from this database.

PRIORITIZING PROJECTS

There are many projects, and prioritizing them is not simple. Typically, projects are prioritized based on the following factors:

  • Simplicity in complexity
  • Higher profitability
  • No need to involve external labor or hire new staff
  • Low operational costs

This order can change continuously throughout the year and usually does. Projects are reviewed quarterly, and if necessary, re-prioritized.

AND WHERE IT ALL STARTS

The defined business strategy is the basis for breaking down goals across different areas. In some places, this is fully given and defined, while in others, a complete plan needs to be created to achieve the desired goal. If this is not fully defined, joint brainstorming sessions lasting weeks may be necessary to develop the steps. At MOL Group, every in-house IT roadmap must support business needs. These can also change over time as they pertain to long-term plans.

Stay and learn with us in both current and future episodes of the PMO Club Podcast!

For more useful professional content, follow our podcast and visit our website: https://profexec.com/

“The Dominance of IT in Corporate Project Portfolios – A Discussion with Miklós Gondolovics, Head of IT Project Office at Richter Gedeon”

The 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 expert

It’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:

  1. Prompting: Fortunately, many useful courses are available on this topic. Start with these!
  2. Appropriate Software: Select the two or three programs you will learn thoroughly and use in the future.
  3. 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:

  1. Supportive PMO: Establishes rules, mentors project managers, and provides guidelines.
  2. Controlling PMO: Has authority and influence to enforce compliance among project managers.
  3. 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.

Fel
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