Strategy with Methodologies

For any company to be world class, the strategy is clear survey the entire landscape and then put the objectives the what into a game plan the how. In negative economic times, always remember that what comes down must come up. If you have formulated the right strategy and can execute (i.e., project management/development methodology), you will most likely succeed at improving the bottom line. Remember that many executives look at whether you are adding to or taking cash from the company coffers.

For example, assume a fixed price project has been awarded to Company ABC, which could possibly bring in about $1 million in revenue. Unfortunately, Company ABC doesnt adhere to any formal PM methodology, and instead relies on the project managers experience to meet project objectives. However, the project is soon bombarded by constant change and new requirements by the client, and Company ABC realizes after a few weeks that it is losing dollars that it wouldnt have if the project manager had adhered to a PM methodology using the appropriate project templates in the concept or design phases.

In addition to having the best product or service, companies need to think about deploying innovative concepts to get their products and services to market more quickly than their competitors can. A delivery methodology is the key. Look at some examples of strategies where companies used project/ development methodologies:

You are able to go to Morpheus or Kazaa Web sites and download or purchase single music MP3 files instead of going to the local music store, where you have to purchase a complete CD with multiple music tracks that you may not want.

You can both order and customize your Dell computer directly online through Dell Direct instead of purchasing directly from a supplier. Their flexible product lines and ease of use gives Dell a huge competitive edge.

Virgin One has a dynamic Web experience where you can bank directly using their Virgin One Account. You need only one account instead of multiple accounts for checking, savings, mortgage, credit, and so on. Virgin has proven that it can save 8 out of10 people thousands of pounds sterling and reduce paperwork through this innovative strategy. Virgin is setting the benchmark standard for banking.

Boeing is redefining its strategy from commodity-driven (aircraft engines) to service-driven. Boeing Company monitors aircraft (flight hours) and its engines in the air, literally extending this concept into multiyear contracts with British Airlines, USAir, and Southwest.

Project/development methodologies are not just about focusing on product life cycles, but also about shortening any strategic life cycles a company may have. No matter how efficient your company is, you need to adapt and you need to do so constantly.

Bill Gates has stated, Microsoft is always two years away from failure. Hes really saying that Microsoft needs to understand the reality of competition. The bottom line is How are you going to make the jump? Whatever your industry be it IT or not trends have shown that it will likely take a total newcomer with a radical approach to show you how quickly you should move. Just look at the example of how Richard Bransons Virgin group got into banking. It wasnt their immediate field of expertise, music, but they had the innovation and ability to break into an industry, which used formal heavyweight methodologies. Try extending this same concept to your own industry and identify newer ways of doing business. Do you think theres an outdated methodology or something missing that you would change?

For a clear, concise snapshot of my point, review Figure 1.5. It illustrates the macro view of how Company ABC in the center is driven by an effective strategy (A) and then proceeds putting the strategy into tactical perspective by first having a project management framework (B) in place, which is fueled by its supportive processes (B1) and project skills training (B2). After this is in place, a core project management methodology is needed (C). Additionally, this is dependent on the development needed (C1) and the technology (C2) you will be using, as well as the project templates (C3) that are thought helpful. When completed, the company is free to proceed to deliver its products and services (D) to the marketplace before any of its competitors (E) do.

Figure 1.5: Strategy for selecting a methodology.

Project Framework versus Development Methodology

There is a distinct difference between a project framework and a project methodology. The framework has always meant the various segments of the project and the development methodology are the means of getting from segment to segment. The following metaphor helps solve this subtle difference: If the project framework is seen as the skeleton of a building, the floors are seen as the different development methodologies allowing you to get through the building. Some get you there more quickly than others would.

Projects vary widely, depending on the size of the company, the size of the solution, the number of project staff assigned to the project, whether the testing is conducted in-house or in test labs, and so on. The question then arises as to what exactly project methodologies should offer us? Table 1.4 lists some of the most beneficial offerings of a good project methodology.

Table 1.4: Benefits offered by a project methodology

In other words, after identifying and selecting the correct methodology, it may be the best defense if you want to: