Wednesday, March 7, 2012

Lean Project Management: A Q&A with author Larry Leach

Lean Project Management: Eight Principles For Success by Larry Leach takes you through all of the steps to plan and execute projects using the exciting new Lean and Critical Chain Project Management (CCPM) methods. I recently had a chance to connect with Larry and ask him a few questions about his latest book.

Thanks Larry for taking the time from your busy schedule to address these questions.

 

Q: One of the goals of Lean Project Management (LPM) is to eliminate waste in projects and as you note in your book, one of the biggest wastes is initiating projects that produce goods/services that do not meet customer needs. Along those lines I have rarely encountered organizations that follow a formal process to review in-flight projects and were willing to kill projects that were not on the path to meeting customer needs. Why do you think organizations are unwilling to kill in-flight project and how should we address this issue?

A: My direct experience isn't with product development projects where this issue predominates although I have run into cases where projects shouldn't have started in the first place. The problem with unwillingness to kill projects may relate to some well-known psychological phenomena called the "Sunk Cost Fallacy" and the "Endowment Effect". One way I can see to overcome it is with periodic reviews to specific criteria by people who have no history with the projects and an explicit evaluation method that only allows them to assess the project as if it were a new investment to start at the time of the evaluation.

Jon's Note: I recommend reading Dan Ariely's book Predictably Irrational: The Hidden Forces That Shape Our Decisions. In particular Chapter 8: The High Price of Ownership explains why we tend to over value what we own.

Q: Many Project Management (PM) practitioners express concerns that LPM advocates skipping critical project management practices and activities. My interpretation is that you are advocating ‘right-sizing’ PM processes and documentation as opposed to skipping them entirely. Would you agree with my interpretation and how do you respond to these concerns?

A: I agree fully. I equate seeking to do everything in the Project Management Body of Knowledge for every project as the equivalent of trying to eat everything on the menu in a Chinese restaurant. It will cost you a lot of time and money and your tummy won't feel good when you are done.

Q: Can you briefly explain the Theory of Constraints (TOC) and why it is so critical for organizations to understand this theory?

A: The Theory of Constraints, propounded by the late Dr. Eliyahu Goldratt, states that the flow through a system (e.g. your project delivery system) is limited by a constraint. He consequently recommends five steps to apply this theory to system improvement: 1. Identify the constraint, 2. Exploit the constraint, 3. Subordinate other things in the system to the constraint, 4. Elevate the constraint capacity, and 5. Do it over again (don't let inertia stop your improvement). Dr. Goldratt has a PhD in physics and based all his developments on sound logic. He developed many specific applications of his theory and wrote many books, most of them business novels, showing it in operation. The Goal is most popular. Critical Chain applies directly to Project Management.

Q: Are there any particular Lean Project Management concepts that organizations are reluctant to embrace or find most difficult to embrace?

A: The two most frequent challenges many organizations face are limiting the WIP (Work In Progress) on projects and controlling interruptions from non-project work. Most organizations have far too many projects in progress. They need to stop some so they can finish more. They can then reintroduce projects as they finish some. The net result will be far more projects completed per unit time (increased Throughput), improved project quality, and greatly reduced project duration. They also need a firm policy on when non-project work tasks can take priority over project tasks and a firm policy to not multitask: complete whichever task you are working on before starting the next project or non-project task (with rare emergency exceptions, of course).

Q: How can readers learn more about your work and Lean Project Management?

A: View my WEB site and linked blog: www.Advanced-projects.com, and of course read my newest book Lean Project Management available on Amazon.

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