Rudolf Melik, CEO

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Rudolf Melik, CEO
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Agenda

• What is flattening the world?
• How does the flat world impact you and your
  projects?
• How to manage and govern your projects in todays
  world?

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The Rise of the Project Workforce

• First book to explore the disciplines and tools
  required to operate in a flat world
• Preview at www.projectworkforcebook.com
• This is a must read for anyone looking for a
  framework to manage complex projects where speed,
  quality and managing diverse competencies are
  critical success components of the project.
• Rich LaBarbera
• President and CEO Kintera
• (Former President of Niku Corporation)

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The project workforce in a flat world

• In the new world
• A call center in the Philippines answers support
  questions from a distributor in England for
  software that was designed in California, coded
  in India and tested in Ireland.
• Your competition can be a company that has no
  physical offices, very low fixed costs, even no
  full time employees just a network of
  individuals across the globe who collaborate 24/7
  and can execute any project

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The project workforce in a flat world

• In the new world
• These new players are stepping onto the playing
  field legacy free, meaning that many of them were
  so far behind they can leap right into the new
  technologies without having to worry about all
  the sunken costs of old systems. The World is
  Flat
• Your competition can be at home, in a basement
  thousands of miles away.
• From vertical (command and control)
  value-creation model to an increasingly
  horizontal (connect and collaborate) creation
  model - The World is Flat

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The flat world

• Forces that flattened the world
• Globalization
• Workflow tools
• Outsourcing, in-sourcing
• Off-shoring
• The net, search engines

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The project workforce in a flat world

• Work is now
• Done anywhere - globalization
• By anyone who does it better, cheaper, faster -
  outsourcing
• Atomized into components - fragmentation
• Differentiated work - projectization
• Managed horizontally - empowerment
• Time compressed - speed

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The project workforce in a flat world

• The individual
• Work and career is a succession of discrete
  projects strung together in consecutive stages
  of advancement and accomplishment -Tom Peters
• The company, Hollywood model
• Quickly assemble teams of geographically
  dispersed, highly specialized professionals (the
  Project Workforce) to execute specific
  projects. These teams are formed for varying
  durations depending on the nature of each
  project, and are dismantled just as quickly as
  initiatives are completed.

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Trends that drive the project workforce
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Project management, corporate governance and
regulatory compliance.
Sarbanes Oxley Effective Internal Controls
Labor Compliance Family and Medical Leave Act
(FMLA)
Fair Labor Standards Act (FLSA)
Financial Accounting Standards Board (FASB)

• GAAP (Generally Accepted Accounting Principles)
  Revenue Recognition, GAAP SOP 98, Cost Accounting
  Defense Contract Audit Agency (DCAA), Research
  Development Tax Incentive Programs

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The spreadsheet problem

• Anecdotal evidence suggests that 20 to 40 of
  spreadsheets have errors, but recent audits of 54
  spreadsheets found that 49 (or 91) had errors,
  according to research by Raymond R. Panko, a
  professor at the University of Hawaii. The
  Journal of Property Management on July, 2002
  stated, 30 to 90 of all spreadsheets suffer
  from at least one major user error. The range in
  error rates depends on the complexity of the
  spreadsheet being tested. None of the tests
  included spreadsheets with more than 200 line
  items where the probability of error approaches
  100 percent. Perform an online search for
  spreadsheet errors or spreadsheet audit, and you
  will find a number of major failures attributed
  to spreadsheet inaccuracies that hit the press in
  the past year alone. - May 24, 2004 issue of
  Computer World
• The Use of Spreadsheets Considerations for
  Section 404 of the Sarbanes-Oxley Act

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Zombie projects

• Outright failures of projects have declined from
  40 to 23 during the past five years, but
  challenged projects swelled from 33 to 49 in
  the same period. Thats bad because challenged
  projects often are more painful than projects
  that simply fail. And they are often just
  failures-in-waiting, dallying dismally until the
  patience (or the money) for getting them right
  runs out. - CIO Magazine
• The most commonly cited issues for challenged
  projects
• Lack of executive support
• Lack of stakeholder input
• Incomplete or changing requirements,
  specifications and objectives
• Unrealistic expectations

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Project- and service- driven businesses run on
processes
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Project- and service- driven businesses run on
processes
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Project workforce management

• Projects and people should not be managed in
  islands
• Today HR, product teams, IT, sales, have their
  own tribe chiefs and their own systems

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Disconnected systems the project, workforce,
financial management gap

• Enterprise software investments
• Accounting/ERP, CRM
• Project management, Time and attendance
• Document management, Business process management
• Systems today
• Multiple disconnected applications, databases
• Duplicated often inconsistent data
• Gaps filled with spreadsheets or custom
  applications

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Project workforce management
Workflow
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Integration
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Summary

• What to Do?
• Be a flat world company
• Strike the right balance between enforcement and
  empowerment
• Choose speed, agility and innovation over old
  ways
• Know how much every project/resource group is
  costing you
• Outsource if it makes sense
• Use compliance as a positive to drive internal
  processes and system improvements
• Define project- and process- based roles not
  rigid job titles

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Summary

• What to Do?
• Be a flat world company
• Use 21st century tools to collaborate
• Reduce Meetings Email Spreadsheets MESS!
• Think Projects and Processes (Workflows)
• Leverage existing enterprise investments using
  Web Services
• Connect Projects to your Talent and Financials
• Global visibility, local empowerment
• Empower your distributed workforce to make fast
  local decisions

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Summary

• What to Do?
• Be a flat world person
• Commit to projects
• Understand how to de-commoditize your job
• Develop highly specialized skills
• Learn to leverage other highly specialized
  individuals
• Keep on top of the latest innovations in your
  specialized area
• Use 21st century tools to do your job and to
  collaborate

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Now My Questions

• What is meant by the statement the world is flat?
  How did it get flat?
• What is the Hollywood model?
• What is the difference between the project
  workforce and a traditional workforce?
• Why are decentralized disconnected systems a
  disadvantage in a flat world?
• How is project workforce management different
  from project management?
• How is project workforce management different
  from workforce management?
• Why should you look to model your business as
  cross functional enterprise-wide visual
  processes?
• What is the difference between matrix-based
  versus workflow management?

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