Sportsfolio Management: What Project Executives Can Learn From the Draft

Rich Hill is one of my favorite Twitter sports follows — @PP_Rich_Hill — though I only now realized I hadn’t been following via @crossderry until recently. He does a great job of melding a fan’s perspective with his analysis. The result is well-reasoned, yet approachable opinions and projections of football drafts, rosters, and of course, game performance. He’s also a Pats fan, so he must be a man of honor and distinction!

I like to use non-traditional examples to illuminate our more mundane dilemmas. Rich’s recent post on the allocation of NFL Draft capital got me thinking. Draft picks are indeed capital. They are assets that can be traded. Also, just like your production line, SAP ERP installation, or facility, the players selected provide capabilities to their organizations over time.

Value — expressed as capabilities over time — drives the worth of the assets or initiatives in a portfolio. And as you can imagine, the trick is to pick the most valuable asset available during your draft turn. How should you approach the problem? Rich breaks it down the essence of the choice:

The question with the draft is asking how a team can best game the talent in order to maximize the value of their draft picks, or draft capital. A simple breakdown is by position, where there are clear premiums for, say, a quarterback versus a punter. Taking the best quarterback in the league in the 1st round is way better value than taking the best punter in the 1st.

And of course, draft position by round, and within rounds, matters as well. You shouldn’t expect a 100th pick to be as valuable as a first pick. So position — both on the field and in the draft — drives relative value. Therefore, to value one’s options for a particular draft pick, one must, as Rich says: “look at a position’s expected value compared to others in the draft.”

He gives a couple of examples in his post — which has some clear graphs — so read the whole thing. Here’s one quick quote about how expected and relative value works. In this example, analysis uncovers interior offensive linemens’ expected value doesn’t decline evenly through the draft rounds.

What this means is that a player selected in the top 40 would have an expected value of an All Pro caliber player. Players selected 40th-90th have an expected value of a top tier starter. By the shape of the graph, interior offensive linemen selected from 90th through the end of the draft all have roughly the same expected value, that of a rotational depth player.

So if the Patriots are interested in an All Pro guard, they would likely have to use their first round pick to increase their odds. But if they would be fine with a top level guard, they could use their third round picks in the 90s to receive roughly the same expectation as if they took the player 50th overall.

This “lumpiness” allows for differentiated draft tactics. And differentiation is the heart of breakthrough strategy.

But this is just the foundation: choosing among alternatives of the same type of capability. We portfolio and initiative leaders must, of course, select alternatives across capability types. In my next post, I’ll leverage more of Rich’s work to illustrate how to approach that problem.

Find Your Best Project Leaders

My last post noted that filling gaps, improving skill mastery, and driving behavior change are the improvements that organizations need. But how can you design these objectives into your talent improvement program? If you have had a program in place, how do you know you have the right mix? And how do you  measure its impact on the organization?

Who are the truly competent initiative leaders in your organization? And how do you know?

Any competency improvement plan starts with identifying what the “truly competent” project or program manager looks like for the particular organization. We intuitively know that more competence pays for itself. And there is strong evidence for that intuition: it’s in our Building Project Manager Competency white paper (request here). But lasting improvement will only come from a structured and sustained competency improvement program. That structure has to begin with an assessment of the existing competency. Furthermore, the program must include clear measures of business value, so that every improvement in competence can be linked to improvements in key business measures.

My experience with such programs is that PMO and talent management groups approach the process in a way that muddles cause and effect. For example, a training program is often paired with PMO set-up. Fair enough. However, if the training design is put into place without a baseline of the current competence of your initiative leaders, then that design may perpetuate key skill or behavior gaps among your staff.  You may hit the target, but a scattershot strategy leans heavily on luck.

In addition, this approach will leave you guessing about which part of your training had business impact. You may see better business outcomes, but not have any better idea about which improved skills and behaviors drove them. Even worse, if your “hope-based” design and delivery is followed by little improvement, then your own initiative may well be doomed.

So how should you fix your program, or get it right from the start? We at PM College lay out a structured, five-step process for working through your competency improvement program.

  1. Define Roles and Competencies
  2. Assess Competencies
  3. Establish a Professional Development Program with Career Paths
  4. Execute Training Program
  5. Measure Competency and Project Delivery Outcomes Before and After Training

These steps were very useful for structuring my thinking, but they’re more of a checklist than a plan. For example, my PMOs almost always had something to work with in Steps 1 and 3. Even if I didn’t directly own roles and career paths, I had credibility and influence with my colleagues in human resources.  However, the condition of the training program was more of a mixed bag. Sometimes I would have something in place, sometimes I was starting “greenfield.”

The current state of the training program informs how I look at these steps.

  • Training program in place: My approach is to jump straight to Step 5, and drive for a competency and outcome assessment based on what went before.  I assume steps 1-4 as completed – even if not explicitly – and position the assessment as something that validates the effectiveness of what came before. In other words, this strategy is a forcing function that stresses the whole competence program, without starting anew.
  • No training program in place: I use the formal assessment to drive change. As PMO head I have been able to use its results to explicitly drive the training program’s design. More significantly, these results are proof points driving better role and career path designs, even if HR formally owns those choices.

PM College has a unique and holistic competency assessment methodology that looks at and assesses the knowledge, behaviors, and job performance across the project management roles in your organization. As always, if your organization would like discuss our approach, and how it drives improved project and business outcomes, please contact me or use the contact form below. We’d love to hear from you.

FYI: For more reading on competency-based management, check out Optimizing Human Capital with A Strategic Project Office.

Now THIS Is What I Mean By “Advanced” Training

We’ve had a ton of discussions with clients after the Project Management Institute (PMI)announcement that it would soon demand business and leadership training from its certification holders. Some organizations wanted just the facts – who, what, where, when, why, and how — then were on their way. A few weren’t interested for personal reasons: their organizations don’t require or reward PMI certification.

The most interesting talks, however, were with customers who didn’t really focus on the requirements at all. The original blog post or email had merely crystallized needs that they already had. We heard it again and again: “We’ve already had the basics, we’ve already put everyone through the curriculum. How do we get better, how do we advance?”

These kinds of conversations are music to my ears, because it means that we’re going to talk about building new and differentiated capabilities. In other words, these clients aren’t just thinking about industry standards and compliance. They now think strategically about how their staff’s strengths and weaknesses match up to their organization’s opportunities and threats.

So how does this play out in practice? Each firm or agency is different, but we believe there a few useful questions that help focus on the learning that your organization needs to advance.

  1. Knowledge and Skill Gaps: These are items that were simply missed in previous training or need formal reinforcement. Example course topics that address gaps:  How to Lead a Team;  How to Model, Analyze, and Improve Business Processes.
  2. Knowledge and Skill Mastery: Here’s where one truly goes beyond the basics and gets command of a subject. Courses like Project Cost & Schedule Management; Project Risk Management; Strategies for Effective Stakeholder Engagement; and  Vendor Relationship Management take one to the next level.
  3. Behavior Change: Here’s the real opportunity to breakthrough performance: ensuring that skills manifest themselves in behavior. Our simulations — for example, Managing by Project; Managing by Project: Construction; and Leadership in High-Performance Teams — move participants from mere understanding of skills to application of these skills back in the working world.

As always, if your organization would like discuss these ideas and how it will impact your project management training curriculum, please use the contact form below. We are happy to review your current curriculum, your upcoming learning plans, and make recommendations.

PM Skills Benchmark Study

PM Solutions and PM College are pleased to announce our latest research initiative: The Project Manager Skills Benchmark Study. This study is designed to help us understand current skill levels of project managers in the areas of project management, leadership, and business. What skills do project managers have, and how do these skills impact project and organizational success?

This survey should take about 10 minutes of your time. Complete survey results (which includes the full data and cross tabulations) will be sent to all those who finish the survey.

TakeSurveyNow

The Biotech IT PMO 2.0

As a CIO, you have either made – or heard – recommendations to create an IT project management office. Perhaps you have implemented one, and your department is reaping the benefits of project planning, monitoring, and controlling. IT delivers its projects on time, on budget, and to spec. Congratulations! You and your IT PMO have put the foundation of consistent innovation in place.

Nevertheless, it is no more than a foundation. A PMO must…

For more, see the full article at CIO Review.

PMI Requires Business and Leadership Training

NOTE: My colleagues at PM College passed along the news that PMI is changing its PDU requirements. This post is adapted from our email to our customers.

Well, it’s now official: the Project Management Institute (PMI) demands strategy, business, and leadership skills from its certification holders. Its change to Professional Development Unit (PDU) requirements formalizes the shift away from the “project managers just need to know project management” mentality that used to pervade the profession. As we’ve noted: people skills and domain knowledge are essential to initiatives’ success.

If you or your staff are pursuing or renewing your PMP – or your organization wants to develop well-rounded, competent project talent — you will need to understand how these changes affect you.  Why?

As the global business environment and project management profession evolves, the [certification] program must adapt to provide development of new employer-desired skills…. The ideal skill set — the PMI Talent Triangle — is a combination of technical, leadership, and strategic and business management expertise. (PMI 2015 Continuing Certification Requirements (CCR) Program Updates)

Feedback from high-performing organizations drove three changes to certification requirements that PMO, learning, and talent leaders should be aware of:

The technical, business, and leadership juggler.

The original technical, business, and leadership juggler.

  1. The education professional development unit (PDU) requirement has changed. 60% of the PDUs must come from education (e.g., PMPs must have 35 of their 60 PDUs come from education )
  2. A new requirement is that certification holders must get education in all three skill areas:  Technical Project Management, Leadership, Strategic and Business Management.
  3. Additionally, a minimum of eight (8) PDU’s must be earned in each of the three skill areas; the remaining eleven (11) can come from any area.

PM College proactively recognized this need, and designed its course offerings to align to the three skill areas, so you and your staff can earn the PDUs required in each skill area. For example, among our most popular offerings:

If your organization would like to schedule time to discuss these changes and how it will impact your project management training curriculum, please use the contact form below. We are happy to review your current curriculum, your upcoming learning plans, and make recommendations.

 

“Train as we work” — National Disaster Medical System

It seems like simulation and practice is in the air these days. Not just from my posts (McKinsey on simulation, Football-on-Football on practice), but now in the Facebook feed of one of my friends, Lee Turpen. Lee is a thought leader in the EMS community and attends the annual Gathering of Eagles, which is the nickname of the EMS State of the Sciences Conference.

TraumaTrainingSure enough, simulation and realistic practice came up on day one. Lee pointed me to a presentation from Andrew Garrett of the Health and Human Services Department. He gave an update on the National Disaster Medical System.

In case you needed more nudging, check out slides 7 and 8: “Full Context, Full Speed Training” and “Train as we Fight (Work).” That says it all.

Follow

Get every new post delivered to your Inbox.

Join 11,004 other followers

%d bloggers like this: