Criterion 2: Organizational Stakeholders


The second project dimension that will help you determine the applicability of agile concepts is your type of organizational stakeholders. Specifically, do they include customers, partners, and subcontractors? The agile PM concepts in this book revolve largely around how the organization applies its project management efforts. In addition to addressing specific tools and processes, agile PM is concerned with organizational dynamics and attitudes. In concrete terms, what this means is that agile PM concepts have the best chance of success when the project operates under, more or less, a single organizational umbrella (see Figure 2-4.)

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Figure 2-4: Agile PM is more applicable when there are fewer organizational stakeholders.

The Single Organization

An early-stage technology development project may have widespread potential applications but no specific external customer. The only real customer of the project is the business that is sponsoring it. This project is likely to be undertaken in its entirety within the company, perhaps only within R&D, and thus there are no partners or subcontractors on the team. In essence, there is a single organizational umbrella under which the project resides and, hopefully, there are common project objectives for the team. By operating under a single organizational umbrella, you will have a much better chance of creating an agile project environment in which to operate than if you had multiple stakeholder organizations to deal with.

Multiple Organizations

At the other extreme is the project that spans multiple, distinct organizations. While it is not impossible to create a successful agile environment across multiple organizations, it will be significantly more challenging. At this end of the spectrum, classic PM techniques are often more appropriate because they do a good job of setting expectations for multiple stakeholders, which include all of the distinct, external customers, partners, and subcontractors (see Figure 2-5). Since projects are, by definition, of finite duration, it often doesn't make sense to try to create an agile PM environment across multiple corporate cultures. The time and effort required to create the agile culture may not have time to pay off, depending on the length of the project. Additionally, when many different companies are involved, it is unlikely that they will all have the common objectives required for ultimate project success within the agile paradigm. The chief reason for this is money. Everyone will be working to ensure that they get paid their fair share, as they should. Under a single organization, it is easier to justify sacrifices in one area for the good of the overall project. However, it is unlikely that one subcontractor will agree to work significantly more than originally planned without additional compensation for the benefit of the other subcontractors or even for the overall project.

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Figure 2-5: Classic PM is more applicable when there are multiple organizational stakeholders.

start example

Agile project management cuts across organizational boundaries to confront and constructively address complex interactions and interfaces.

end example

This does not mean that agile concepts are totally inapplicable in this type of project situation. You should just be judicious in deciding which concepts to use. You should be aware of the challenges of driving environmental change across multiple organizations. For multiyear projects, or for situations where there is a strong, prime contractor that can drive organizational change across subcontractors, agile PM may be a powerful tool you can use to gain a competitive advantage.

Single Company, Multiple Organizations

The in-between case is when a project operates within a single corporate umbrella, but where the divisions or functional areas involved operate as, more or less, autonomous organizations with their own objectives (see Figure 2-6). Depending on how the leaders of these organizations are motivated, it could be easy (or difficult) to introduce agile PM concepts. This is where most technology projects that can benefit from agile PM reside, and thus, it is an area with a strong potential return.

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Figure 2-6: Both agile and classic PM may be applicable when there are multiple organizations within a single company.

Since projects are a very visible mechanism that cut across multiple organizations, they also have the unique ability to influence organizational effectiveness across the entire business. Projects bring out the organizational dynamics that are not seen when one looks at the business from a strictly operational view. Nonstandard interfaces and complex interactions surface. How the organization learns to deal with these situations can determine the long-term success or failure of the business itself. Agile project management identifies these organizational complexities and confronts them constructively within the project management paradigm. While the immediate goal is enhanced project performance, the ultimate objective of agile PM is increased organizational performance.

Deciding to employ agile PM is not a simple, black-and-white question. As you read this book, you will see that there are several areas that affect, and are affected by, agile PM concepts. Some of these areas will be very applicable to your unique situation and others will not. Agile PM is about new perspectives and techniques around project management. It is a culture-changing concept that may take patience to employ, but it will be worth the effort.

This chapter has provided some guidelines to help you understand how well agile PM may apply to your project situations by looking at two key project dimensions—the type of project environment and the organizational stakeholders. Figure 2-7 will help you quickly identify whether agile PM is suitable for your situation.

start figure

Multiple, External Stakeholders

Multiple, Internal Stakeholders

Single Organization

Operational Projects

Classic

Classic

Classic

Product/Process Development Projects

Classic/Agile

Classic/Agile

Agile

Technology/Platform Development Projects

Classic/Agile

Agile

Agile

end figure

Figure 2-7: Applicability of agile PM, based on project type and organizational stakeholders.




Agile Project Management(c) How to Succeed in the Face of Changing Project Requirements
Agile Project Management: How to Succeed in the Face of Changing Project Requirements
ISBN: 0814471765
EAN: 2147483647
Year: 2006
Pages: 96
Authors: Gary Chin

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