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THE CASE FOR A CHIEF PROJECT OFFICER IN THE C-SUITE
INNOVATIONS AND INSIGHTS
THE CASE FOR A CHIEF PROJECT OFFICER IN THE C-SUITE
ROB MCMARTIN IS CONCERNED THAT PROJECT MANAGEMENT HAS EVOLVED, YET THE REPORTING FUNCTION HASN’T. ISN’T PROJECT MANAGEMENT IMPORTANT ENOUGH TO HAVE THE FULL ATTENTION OF THE BOARD?
The 2021 AIPM/KPMG Project Management Survey Report told us that ‘’71% of respondents reported that project complexity is increasing”. Where once there were simple projects, now there are complicated projects, complex projects, and ‘megaprojects’, all of which can be entwined with wicked problems. No longer is a copy of the PMBoK Guide and a willing attitude enough to manage a project (not that it ever really was).
This has led to the development of new project management styles; new types, new methodologies, new technologies and new techniques, but the one thing that hasn’t changed is the attitudes of most organisations to project management.
While the project management profession has noticed the changes, most organisations have not. Even though most organisations are now involved in projects of some form, whether they are internally, or externally delivered products or services, the ongoing march to the ‘projectification’ (Projectification of the Western World, Andreas Wald, IRNOP Conference, 2017) of the world continues.
PROJECT DELIVERY ISSUES
While projects and project management has been evolving and learning new techniques and adapting to the new types of projects, the business practices have remained in a steady state.
Revisiting the AIPM/KPMG Project Management Survey Report, we find the following:
• 73% of projects completed “on time”
• 73% of projects completed “on budget”
• 81% of projects “in line with original goals and business intent”
• 82% of projects completed “with stakeholder satisfaction”.
Businesses accept that out of 100 projects, 27 of them will be over budget and late. 19 of these projects will fail to deliver the reason for their creation, while 18 of these projects will not meet stakeholder satisfaction.
According to the survey, only 36% of the respondents say that their organisation does enough to improve project management skills and capability.
Nearly all businesses involved in project delivery will have a director of projects role (guidance) and possibly a PMO (governance), and expect the projects to be delivered. But when the guidance and governance fail to improve project delivery, and the organisations have created centralised and decentralised, PMO and EPMOs, and every other new trend (Agile) spouted by ‘advisors and consultants’ and still nothing is improved, where does the problem actually lay?
WHERE DO PROJECTS FIT IN THE ORGANISATIONAL HIERARCHY?
Depending on the size of the organisation, the director of projects may report to a managing director, or they may report to a board of directors. In looking at boards only, we see a major disconnect.
This failure of alignment of project delivery and management in an organisation, rests with the board of directors (often referred to the C-Suite), who are responsible for the long-term strategy and direction of the organisation.
The most common examples of C-Suite members include:
• chief executive officer (CEO)
• chief operating officer (COO)
• chief financial officer (CFO)
• chief technology officer (CTO)
• chief information officer (CIO).
So where does project management sit within the C-Suite? It doesn’t. Very few organisations have a chief project officer. Project management often sits under another function such as operations, engineering, marketing, information technology, finance or even administration.
If they do, it will be in an advisory capacity through an independent, or non-executive director.
PROJECT EXPERTISE IN THE C-SUITE
A board is made up of people with a broad mix of skills, knowledge, and experience often with different skills and backgrounds, the goal is to ensure that board members have a range of skills that can work as a well-rounded team that can lead and direct the longterm needs and strategy of the organisation. Project management is becoming too important not to have the full attention of the board. Projects that are a part of another business function and have the wrong person responsible for project management and delivery will always be destined to have a continued high failure rate.
Each year the requirements to manage projects increases with the creep of complexity, or with more projects bordering megaproject status. Where once a project worth a billion dollars were few and far between, they are now becoming more frequent, with almost an inverse proportion of skills to manage them.
It is now necessary to align business direction and strategy from the highest level with the governance, and guidance.
It is not just direction and strategy; it is ensuring that the voice of the projects is heard at the highest level, that when project directors, PMO managers and project managers are calling out for training or additional resources, or improved risk management techniques that the organisation can act quickly.
Look within your own organisations; how much of the business is derived from projects? Can your company cope with 73% on time and on budget, or only 81% of projects delivering on original goals and intent, or worse 18% of your customers unhappy doing business with you? Ask the question “Where does project management sit within your organisation?”.
Author: Rob McMartin MAIPM is an experienced PMO and program manager with expertise in program, project, general, facilities and contract management across a variety of projects from aviation, finance, utilities, property, events, logistics, public transport, environment, software development, defence and aerospace industries. Rob is also Co-Chair of the International Centre for Complex Project Management (ICCPM), Managing Risk in Complexity (MRC), and Special Interest Group (SIG).
