The Development Project Management Problem and Solution

Capital Development Project Management is one of the top 10 problems of 20^th century management

20^th century management cannot plan, manage, or repay capital development projects

We have unsolvable problems in 20^th century capital development project planning, management, and return on the project investment, so we cannot:

• Plan and manage operations and development as an integrated continuum that is part of the business
• Itemize, plan, and achieve specific benefits from development projects
• Clearly and systemically understand what we must be implementing from projects as part of the business for ongoing management and return on investment
• Planning the output results to be produced from the project in specific capital items to be implemented and utilized by the business
• Utilizing users and administrative staff in proper roles in the project
• Utilizing contractors and consultants as solutions in an enterprise-managed project
• Documenting and recording the project so that all capital developed is fully documented and that knowledge required for use is created
• Managing the capital to be consumed in the project
• Managing the capital development project as part of the business
• Recording accurate development costs by capital item developed
• Implementing project results as capital items for direct utilization by the business
• Measuring the actual return of capital development investments

The unsolvable 20^th century management problems hamper project management, particularly for enterprise internal capital development and management improvement.

R-pM plans, manages, and repays projects by separate management of results and performance

Result-performance Management (R-pM) provides new breakthroughs for planning and managing enterprise capital development and planning and managing the capital development project.

Capital development develops two things:

• The capital to be utilized as performance solutions that incur costs
• The results to be produced by the developed capital to provide benefit and return

When we plan and manage a capital development project, we must plan and manage two things:

• The results to be produced by project performance
• The capital to be consumed and performance solutions to be utilized to perform the project

R-pM provides the methods to do both. Review the R-pM Downloads “How to manage Business Change” and “How to Manage Projects in the 21^st Century” from Result-performance-Management.com to save significant time and wasted effort on your next capital development project.

The Project Management Problem

20^th century projects are planned and managed to implement capital, not to provide business benefits

Most capital development projects under 20^th century management are separated from the business, often executed in isolation by contractors or consultants. Internally managed projects have management problems as well. Most of our projects seek to achieve an objective and there is some estimate of the benefit of achieving the objective. We itemize the known costs we expect to incur in the project, but we have no way to itemize costs against specific capital items or to itemize the benefits.

Projects are managed to produce performance, rather than results

Projects are planned and managed through such entities as activities, tasks, events, milestones, objective, etc. Project costs normally come from a schedule of known costs for time and material. Projects often utilize and develop “intangible assets”, which are not planned and managed.

We have no systematic method to manage what we are producing throughout the project, the full cost we are incurring in a project, the costs of specific tangible and intangible capital items being developed, and the benefits that we are developing through the project. Capital developed in the project is implemented in new structures that are laid over the business, rather than as capital to be utilized as part of the business. Utilization of implemented capital is often resisted by users, who have not been involved in the project properly.

The Project Management Solution

Result-performance Management (R-pM) is the conventional method to organize and manage the 21^st century enterprise. R-pM is the only method to effectively plan or manage business change or capital development projects. R-pM has three dimensions results, performance, and management of change over time. All three dimensions must be managed for successful projects. All capital development projects are part of the business and are under enterprise result and performance and management responsibility. With R-pM the objective of all projects is to add value-added to enterprise results. All projects follow the result-performance development methods and organization as one operation-development-operation continuum.

Project value and benefits are created in new and improved results

The objective of the project is laid out in specific new or improved results, where value is to be created to itemize the benefits of the project, and all the new or improved tangible or intangible performance solutions to be developed are itemized to show the costs of development. All projects follow results-performance development to analyze result symptoms to determine the value, benefits, and requirements of development and performance problems to determine the cost and specifications for solutions to be developed. Result value-added without the project and with the project are calculated and compared to provide a manageable added value-added return on investment.

Projects are organized to develop results and performance

All projects are organized with a project business structure that produce enterprise investment management results such as planned project, closed project, and repaid project. Economic output results to be produced by the project are defined to develop and implement specific business performance solutions to produce specific business results.

The project business structure organizes the results from the project and the external and internal performance solutions deployed to produce specific project results. Contractors and consultants are organized to provide specific solutions to produce specific results in an enterprise-managed project. Human capital solutions are organized though result teams and responsibilities to involve users properly and to gain acceptance of new result goals and through performance teams to develop and implement solutions and accept new performance expectations. All participants in the project have specific results to produce and performance solutions to provide.

Projects are managed to produce investment results

The project itself is managed as part of enterprise operations to produce specific investment management results period by period over the duration of the project. The project has its own business structure to utilize project solutions to produce project results. The project is managed the same as a small business enterprise. All performance costs in the project are captured by period against the performance solutions developed as project results. Full development costs, documentation, and utilization knowledge is produced for each solution developed.

Before the project is closed, project results are implemented as performance solutions with specific development costs to be utilized to produce specific result value. The project results continue to be managed after the project to measure the return on investment in added result value-added to produce the repaid project result.

R-pM eliminates 20^th century project management problems in capital development

R-pM makes 20^th century development methods obsolete through one method for capital investment analysis, capital development, and project management. With R-pM, the 21^st century enterprise can systematically create the value and control the cost of development.

Full guidance and instructions for 21^st Century Project Management is provided in The R-pM Toolkit, your 21^st Century Management Manual. The R-pM Toolkit, is available today and is under continual development to expand and refine 21^st Century Management. Get your R-pM Toolkit, and future updates, at result-performance-management.com.

This entry was posted on Friday, February 8th, 2008 at 00:10 and is filed under:
Forums: Capital Development Plans and Projects, Business Change Methods, Top Ten 20th Century Problems
Topics: Business Change Methodologies, Change Management, Benefiting from Business Change, Solution Implementation, Business Transformation, Financial Management, Project Management
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