Could Project Reviews Have Prevented the Credit Crunch ?

Feedback As a Way of Learning and Driving Successful Development

A recent city article about project management, "Why do projects never benefit from lessons learned", paints a bleak picture of project management in the city (presumably London ?). It shows a stark dearth of understanding that a more experienced project manager accustomed to project review could bring to city projects. Worse, the article commits the very sin it complains of, as it is made in a comment free environment, preventing valuable feedback which would better inform its content.

I voted "against" the article, BTW, as I feel it misses the point entirely. Why ?

Now we all know city culture is short term, and too many other UK businesses outside London also don't do project review. (I sincerely hope New York is better). So the question to ask is what are the benefits of project review ?

Knowledge Retention Saves Money ! Not Sexy, But Definitely a Wow !

Retaining project knowledge means projects are done progressively better. That means saving time and money. Yep, I'll repeat that, in case it's too hard to believe. Project Review saves time and hard earned money. But it's not sexy, and therein lies the problem. Got this job done, don't bother tidying up afterwards, just get on to the next job. Who cleans up the mess ? Who steers the next initiatives away from the rocks ? All typical city I'm afraid.

Plan B - Employ Project Managers Who Have Learned About Project Management

So if city short-termism is so endemic, plan B is to get in project managers who know how to run projects and carry the knowledge and skills around with them. The article suggests that apparently this "never" happens in the City. Answer, bring in project knowledge from outside the city. (and I know this doesn't happen, when most job specs ask for 10 years technical experience.) An experienced project manager will ensure that requirements don't run out of control, that estimates are more accurate, and can improvise and negotiate scoping issues as they arise. The city still hasn't learned what PWC and Gartner have been saying for years, that projects succeed not because of technical knowledge, but because of great leadership and a built-in supportive infrastructure.

Projects can and do run to time and budget, but as the article notes, mostly outside the city. Perhaps the city is the primary contributor to the shockingly low 50% success rate attributed to project delivery ?

Six Sigma - World Class Business Delivery

As ever, people assume that project management is simply running a project. Try instead looking at project management as a continuing process that's every bit as important as marketing and accounts, takes just as much skill, and has a focus on joining silos together not optimising them in isolation. Something that embeds innovation into an organisation's very fabric.

There are just as many textbooks on project management as there are on any other subject you care to mention. A case in point is "sexily" described as Six Sigma, which talks about world class business delivery through a process of continous business improvement. This is in stark contrast to the city model described of continuing and repeated blunders. The sexily-titled Black Belts charged with orchestrating world class delivery are all Project Managers, who work with nominated team members in the organisation, labelled Green Belts.

If this seems just pie in the sky, Jack Welch, retired CEO of General Electric, is quoted to have been highly committed to implementing Six Sigma across his organisation. Quite some business, one with excellent credentials, where results really do speak for themselves. Not something to be ignored, even when working in the city.

The Cause of the Credit Crunch ?

From the scenario described, it isn't hard to see why the credit crunch took place.

As ever, constructive views are welcome.