Change: Here to Stay

Posted by Rob Newbold in Business, Change Management, Critical Chain, Earned Value Management, Project Management on April 18th, 2010.

Change is in the air. In much the same way that constraint-related concepts have become standard in manufacturing, critical chain-related concepts continue to gain popularity in the project world. Even if “Critical Chain” doesn’t become standard practice, its important elements will.

For example, consider project buffers: protection time added after project endpoints to protect project deliveries against uncertainty. This concept is known in non-Critical Chain circles as schedule margin or schedule reserve. A few years ago this was not a popular concept, but that has changed. For example, we typically regard government “best practices” as lagging indicators, but NASA (see, for example, p.44) talks a great deal about schedule margin, and the U.S. Government Accountability Office (p. 223) calls schedule reserve a “best practice.” More and more, buffering is being recognized as essential to good management.

Where are these kinds of changes leading? First, I think people will have to pay more attention to the individual concepts like buffers, resource leveling, or task gating than to the overall categories they’re put into, such as Critical Chain or Earned Value Management (EVM). Whether (for example) buffers become part of EVM, or analysis of work completed becomes part of Critical Chain, the concepts that make sense will eventually rise to the top with or without the labels. This is good news.

Second, groups of concepts that together can be applied in the real world to get practical results – methodologies – will continue to be put together into new buckets and given both old and new names. That’s inevitable: we label things, and we like to use popular labels. But it will also serve to create more confusion. Practitioners must understand what practices people refer to when they use a particular label; whether the label is CPM, Critical Chain, EVM, or Monte Carlo. A holistic view of how the methodology fits together to get results will be more and more essential.

Third, project management will continue to improve. Why do I say “continue,” when organizations like the Standish Group “continue” to tell us how poor project results are? Because, on the whole, our ability to manage projects is clearly improving. Project complexity is increasing dramatically year after year: drug development and approval, chip design, and software are far more complex than they were 20 years ago. Meanwhile, new products must hit the market more and more quickly. While project successes across industries may not be at a level we’d like or know to be possible, in a world of increasing complexity and speed, holding steady implies that improvements are going on.

Last, companies and their methodologies will have to become more and more adaptable. That’s because new ideas are going to be tried and integrated, the best will eventually float to the top, and competition will require their adoption. The best new ideas will be more and more essential, both for companies that need to complete their projects more reliably and quickly, and for vendors like ProChain that need to provide that competitive advantage. Your organization should have in place a process for ongoing project management evaluation and improvement.

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Checkmate

Posted by Rob Newbold in Business, Change Management, Project Management on March 4th, 2010.

I just finished reading The Checklist Manifesto by Dr. Atul Gawande (New York: Metropolitan Books, 2009). It’s a well-written, entertaining book that promotes the use of checklists to make sure that important steps are followed. He uses examples from areas as diverse as health care (he’s a surgeon), finance, and aviation to demonstrate that checklists can have a tremendous impact. He especially stressed their value for two things: making sure simple requirements aren’t overlooked, and promoting (even forcing) communication at key times.

Working with the World Health Organization, Dr. Gawande conducted a trial of a surgical checklist with eight hospitals in countries as diverse as Jordan, Tanzania, and the U.K. The results were dramatic and highly statistically significant: a 36% reduction in surgical complications and a 47% reduction in deaths. Furthermore, the checklist demonstrated value in hospitals across the economic spectrum.

Of course, many were skeptical, especially at first. Before implementation, his team monitored the omission of key steps in these hospitals, and errors were alarmingly common. Even after people saw these results, it was sometimes necessary to drag them through the process so they could see the value for themselves. Dr. Gawande makes a number of suggestions that can help make checklists easier and more effective, for example: keep them simple and unambiguous, put in only the most leveraged items, and encourage people to tailor them to accommodate local practices.

I’m a strong advocate of well-constructed checklists. We have employed them in ProChain implementations for years and have found them to be very useful in establishing culture change. They can help to make sure that people learn to communicate in the new ways. However, we’ve also found the same kinds of resistance that Dr. Gawande saw: people are openly skeptical, or they say “yes” and act “no.” Checklists can appear harder to justify for project improvements, when people’s lives don’t seem to be on the line. But consider this: if a crucial new product reaches the market earlier, that really can save lives, and it really can save jobs. Missing opportunities to gain that month could have a tremendous human impact.

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Welcome to the ProChain Blog!!

Posted by Rob Newbold in Business, Critical Chain, Project Management on February 23rd, 2010.

Welcome to the ProChain Solutions blog site! We will post articles that are of interest regarding project management, critical chain, and related topics. We have started with some selected entries from existing blogs of Rob Newbold and Andreas Scherer.

Please post comments or send them to us so that we can make this a great tool for the entire ProChain community.

Rob Newbold, CEO, ProChain Solutions, Inc.
Andreas Scherer, General Manager, ProChain Solutions, Inc.

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Critical Chain in the Life Sciences – Upcoming Conferences

Posted by Andreas Scherer in Business, Medical Devices, Pharma, Project Management on February 6th, 2010.

Just in case you were wondering how to find out who is using Critical Chain in the life science industry, here are three events in the first half of this year helping you to tap into the learnings of current practitioners of this methodology. These conferences represent interesting opportunities to learn more about Critical Chain and network with experts in this field.

PMI Pharmaceutical SIG Conference: “Innovative Project Management to Succeed in the Dynamic Biopharmaceutical Environment”. The event will take place in Philadelphia, PA on March 15-17 2010. There will be a three hour tutorial on Critical Chain co-hosted by Jason Bork, Eli Lilly and Andreas Scherer, Prochain. Click here for more information.

BiopharmaPM Conference: “7th Annual Project Management Conference for the Drug and Device Industry” in Orlando, FL, April 12-14 2010. Andreas Scherer will hold a presentation with the title “Reducing Cycle Times in the Pharma R&D Process”. Click here for more information.

Drug Information Association (DIA): 47th Annual Meeting in Washington DC, June 13 – June 17 2010. At this event Andreas Scherer has the privilege to host a session on Critical Chain. There will be three speakers from companies such as Abbott Labs, Johnson and Johnson and Eli Lilly covering various aspects of implementing Critical Chain in their respective environments. Please click here for more information.

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