Why are projects a 'creep'y story?

Steve L Fahrenkrog, VP, Regional Development from PMI (Project Management Institute), a global project management membership association founded in 1969, that facilitates sharing of project management theories, best practices and experiences, was in India recently. As he met up with Pratima Harigunani of CyberMedia News he cleared the fog on many current issues like Scope-Creep, IT industry's deftness degree, the changing face of projects in a slowdown and much more. Excerpts:

Talking in particular of the IT industry, where projects are inherent part of the service model, why are we still witnessing creeps on scope, time, costs etc with examples like the not-so-successful NHS project?

Yes, we have seen a dramatic increase in the IT genre of organizations coming to us for assistance. It's because they are having trouble with the basics. Look at the construction industry, they got the basics clear much early. IT has recently started moving to those basics.

But the environment in which IT work is dramatically different form other industries, since in a building construction, requirements are well defined, while in IT mostly customers have a fuzzy concept and as you go into the project, the requirements keep changing and expanding. So yes, scope creep makes delivery a different issue.

Are there any solutions to the 'creep' problem?

The really successful companies are recognizing the importance of requirement identification. The key is to plan twice as much as you execute. Requirement definition at the very onset of planning is important. And now companies are merging planning and execution, the two different parts, well.

Any cross-industry lessons or practices on projects that IT companies can gain from?

Getting the basics right, managing cost, schedule and performance well and paying emphasis on scope is very important. The company buying the services should understand that change costs and the provider on the other side should be more imaginative and deliver without any drastic impacts. It's possible when both in a partnership mode, rather than an adversary mode.

Proactive stakeholder management and communication become significant here. Another area that we are observing is the issue of 'fit'. Project management should be as per a company's culture, size and environment.

Too much or too fast project management in a wrong organization can cost you as well. Instead of firefighting, there should be structured approach with processes and standards.

How helpful or different can project management be in the global crisis that companies are grappling with now?

Companies should realize that all projects are not of equal value and that should guide them in re-allocation which becomes important from the perspective of resource constraints.

They should apply portfolio management smartly here and stop the projects that don't fit anymore. Then allocate, apportion and re-allocate resources accordingly. Project management, in turn, can be used to re-plan the project, re-cost and reschedule it.

How do you reckon Indian IT companies on project management maturity?

They are amongst the best in the world. Companies like Infosys, that have Leadership Institutes, know that in tough personnel markets, looking after an employee's personal and professional development is the key to retention.

How has Project Management evolved over the years vis-à-vis Portfolio Management?

Between portfolio management and results, there stands a strategic curve. Project management is closest to delivery of projects. That's how you bridge the gap. If you compare the first set of research results with CEOs back in 1998 to what they say today, we see that even today they find execution difficult. The gap exists at execution.