The Holderbank Group, like many global companies, has been running a growing number of larger, more interdisciplinary projects. Consider these facts: More and more of Holderbank’s 40 000 employees world-wide are spending time on projects. Group projects have reached a significant order of magnitude, and the number of large, global projects has been increasing: in the year 2000, around 230 Holderbank projects had expenditures greater than CHF 1.0 million. More than ever before, these projects cut across disciplines and involve the whole value chain. Last year, Holderbank invested more than CHF 1.7 billion in plant, property and equipment – and this means nothing more than projects. Yet, fewer resources – less personnel, tighter budgets, less time – are available to carry them out. Holderbank people are moving on to new assignments faster than ever. With all this growth and complexity, meeting agreed deliverables – time, budget, and specifications – is more difficult than ever. Competition has long reached the boiling point: Holderbank needs to respond «faster» to competitive pressure, and get things done «right» the first time.
The PMA as an Enabler of Faster Learning
In 1996, Holderbank’s Executive Committee saw a large potential for performance improvement in running projects more efficiently. It was recognized that applying group-wide principles of project management would vastly improve Holderbank’s performance. Project management was identified as a major Group learning need. In 1997, Holderbank Management and Consulting (HMC) was asked to develop a single, Holderbank-specific management approach. The idea was to get people to speak the same language, share knowledge and lessons learned, and use specific procedures and checklists to avoid missing any steps in managing projects. The result was the Holderbank Project Management Approach (PMA).
PMA Phase I: Project Definition
The PMA is a process that helps members of the Group approach each new project systematically by asking explicitly what has been learned in previous projects and how to apply this knowledge the next time, and by scrutinizing every aspect of the project before embarking on large capital expenditures typical of project. The PMA breaks a project into five phases and puts special emphasis on Phase I and Phase V, where we ask for lessons learned in similar projects (Phase I) and distill lessons learned for projects to come (Phase V). At each phase, a number of clearly-defined steps help a project team through its project in a systematic way, so that every important step is considered. At Holder-bank, we equate the steps in PMA with a pilot’s flight check. A pilot flies his jet every day, and knows every process and maneuver by heart. But he would never take off without going through a meticulous checklist to make sure he hasn’t missed anything. Likewise, at Holderbank, detailed procedures, tools, templates and review questions support each step of the PMA
PMA Phase I: Project Definition
The aim of Phase I is to reach an agreement with the client (step 9, phase 1) on deliverables, time, and cost. The first eight steps form the basis for the contractual agreement. In this project definition phase, the project team builds a relationship with the client and gathers enough information to ensure that the team can realize the project, as defined, and in the way that best suits the client expectations – be it the internal or external client. During this phase, both parties define precisely what the project will and will not entail. The client and project team address their assumptions openly. Depending on how big the project is, there will be several meetings with the client to agree on all necessary details.
Steps in Project Definition
Phase II leads to the most complete description possible of the way to work through the coming phases of the project. It includes the tasks to be planned for, costs involved, formation of the team, a description of the way of working, and a communication plan. Since the project team must be able to start delivering the defined product or service at the end of this phase, everybody has to be committed to it. All involved need to know how communication and reviews will be handled, where documents will be stored, what tasks are necessary to reach the milestones, and who is responsible for each task.
Steps in Project Planning
The purpose of Phase III is to ensure delivery of the defined product or service in accordance with the project definition. Here, a sharp focus on cost control, quality, and time use is necessary. To deliver the product or service, the team and the client discuss all issues openly in regular meetings. Changes in the definition of the project (deliverables, time, or cost) have to be made with the client. To generate the necessary input for phase V, it is paramount to capture knowledge during the realization of the project.
Steps in Project Realization
By the end of Phase IV, the client accepts and takes ownership of the product or service; the project team can be discharged of its responsibility to deliver. The focus here is on handing over the product or service that was agreed in Phase I. It must be made absolutely clear that after the completion of the project, the client organization is fully responsible for sustaining and maintaining the product or service that the project team delivered. Any further actions within the responsibility of the project team (beyond activities in Phase V) will have to be explicitly documented and agreed upon in an action list.
Steps in Project Completion
During Phase V, lessons learned from the current project are captured for future projects. Project teams first run an «after action review». With knowledge transfer in mind, they then distill the lessons learned during the project. Learning can come from various aspects, such as the contents of the project (e.g., technical matters) or the process itself (way of working). The «after action review» focuses on the way of working. Content-related findings should have been sufficiently captured during Phase III. Both the output of knowledge gained during the realization and the output of the «after action review» will be integrated into the learning summary.
Steps in Project Evaluation and Transfer
Holderbank Management and Consulting has identified three principles for putting the PMA in practice:
The Four Key Deliverables for Sustainable Implementation
In practical terms, to put the PMA system in place in a Group company – and to ensure sustainability – four key deliverables were defined:
People Development
To make sure people understand and use the PMA properly, Holderbank uses coaches and trainers – one coach per Group company, and trainers for each location. To further help Group companies with the PMA, HMC has created support materials for coaches, trainers and other users, including a PMA reference handbook, templates and training guidelines. Special materials are also available for coaches and trainers. PMA training material is available in all official Holderbank languages: English, Spanish, French, and German. More than 100 trainers throughout Holderbank have attended a «Train the Trainer» session. HMC publishes regular news on the progress of roll-outs, any significant changes in the approach, and new ideas that improve the process.
A System for Making All Projects Visible
HMC sees compliance as «checking on whether the PMA principles are actually being applied.» There are, therefore, two checks on the system. First, we always ask, «Do we apply the PMA?» (refer to «Compliance System»). And second, we ask, «What is the status of the project?» Regarding the status, projects are reported on (made «visible») when they reach Phase III. To this end, PMA has a standardized status report for all projects. HMC has designed a database (easy to install in all local IT networks) that allows local managers to gain a quick, one-page overview of the status of ongoing projects. It shows both the progress of each pending project and the status of all projects in a Group company.
A Compliance System
To check on compliance, the so-called PMA Arrow (a modified form of the five-phases figure above) helps users visualize the use of PMA. Essentially a system for attaining sustainability, the arrow is available on HolderSpace (the «Holderbank» Intranet) or as a stand alone application. In the Arrow, each step of the five-phase system goes with a series of questions (three to four) that can be answered in three ways: fully in place, partially in place, not in place. Three colors – green, red, and yellow – indicate the level of compliance.
A PMA Website
The PMA Website is the focal point for all PMA users (refer to figure 2). It is one of the first sites in four languages, and also one of the most frequently visited sites on HolderSpace. The PMA Website has general information on PMA implementation (GENERAL INFO). The PM CLUB, a discussion forum, offers suggestions for improvement. The PM ARROW provides a compliance check. Visitors can click on SUPPORT MATERIAL for the most recent versions of all training materials.
A Senior Manager Reports
Project management is, of course, nothing new at Holderbank. Many years before the PMA, Holderbank Group companies typically set budgets, used bar charts or critical paths. Projects were organized and responsibilities defined. There was follow-up on time and budgets, and more or less formal handovers. Still, certain aspects of project management often got short shrift: complete problem scenarios, project definitions, kick-off and «kick-out» meetings, official handovers, formal evaluation, and transfer of knowledge. The PMA, however, remedies these weaknesses. With the PM Approach, we now have clear project definitions that involve all stakeholders. Project teams are committed by a «contract». Main project goals are clearly defined and well-known. There is an official start and an official end, with a hand-over («certificate») and formal evaluation and transfer of knowledge.
Users agree that the real secrets to gaining the benefits of PMA lie in Phase I (Definition) and Phase V (Evaluation and Transfer). Why is this? Because Phase I demands an unusually profound analysis of the problems and needs of the clients, along with clear definitions of the global objectives of the project, the product, and the finish date. This first phase emphasizes stakeholder analysis, by asking questions like: Who is directly involved or affected? Whom do we need in order to push the project ahead? Who or what could hinder the project? What could occur? Phase V, at the other end of the project, puts a premium on learning from previous mistakes, one’s own and others. It accentuates the transfer of knowledge by analyzing the project at the close – honing in on mistakes and opportunities for learning.
The PMA is a simple tool that allows companies to tackle complex situations and solve difficult problems involving different areas and parties. Because it is simple, it is easy to adapt. The detailed checklists make it systematic, tangible, and applicable to all projects, technical and non-technical. It involves people, fosters teamwork and bolsters commitment. It defines issues and goals clearly, evaluates progress and results, transfers knowledge, and disseminates experience. It saves trouble and it saves money. Ask any Holderbank Group company manager or project member: PMA works.
The PMA as an Enabler of Faster Learning
In 1996, Holderbank’s Executive Committee saw a large potential for performance improvement in running projects more efficiently. It was recognized that applying group-wide principles of project management would vastly improve Holderbank’s performance. Project management was identified as a major Group learning need. In 1997, Holderbank Management and Consulting (HMC) was asked to develop a single, Holderbank-specific management approach. The idea was to get people to speak the same language, share knowledge and lessons learned, and use specific procedures and checklists to avoid missing any steps in managing projects. The result was the Holderbank Project Management Approach (PMA).
PMA Phase I: Project Definition
The PMA is a process that helps members of the Group approach each new project systematically by asking explicitly what has been learned in previous projects and how to apply this knowledge the next time, and by scrutinizing every aspect of the project before embarking on large capital expenditures typical of project. The PMA breaks a project into five phases and puts special emphasis on Phase I and Phase V, where we ask for lessons learned in similar projects (Phase I) and distill lessons learned for projects to come (Phase V). At each phase, a number of clearly-defined steps help a project team through its project in a systematic way, so that every important step is considered. At Holder-bank, we equate the steps in PMA with a pilot’s flight check. A pilot flies his jet every day, and knows every process and maneuver by heart. But he would never take off without going through a meticulous checklist to make sure he hasn’t missed anything. Likewise, at Holderbank, detailed procedures, tools, templates and review questions support each step of the PMA
PMA Phase I: Project Definition
The aim of Phase I is to reach an agreement with the client (step 9, phase 1) on deliverables, time, and cost. The first eight steps form the basis for the contractual agreement. In this project definition phase, the project team builds a relationship with the client and gathers enough information to ensure that the team can realize the project, as defined, and in the way that best suits the client expectations – be it the internal or external client. During this phase, both parties define precisely what the project will and will not entail. The client and project team address their assumptions openly. Depending on how big the project is, there will be several meetings with the client to agree on all necessary details.
Steps in Project Definition
- Assessment of initial situation
- Stakeholder analysis
- Search for lessons learned.
- Definition of product or service
- Milestone schedule
- Outline project organization
- Estimation of project costs
- Risks identification & evaluation
- Agreement with the client
Phase II leads to the most complete description possible of the way to work through the coming phases of the project. It includes the tasks to be planned for, costs involved, formation of the team, a description of the way of working, and a communication plan. Since the project team must be able to start delivering the defined product or service at the end of this phase, everybody has to be committed to it. All involved need to know how communication and reviews will be handled, where documents will be stored, what tasks are necessary to reach the milestones, and who is responsible for each task.
Steps in Project Planning
- Project team set-up
- Project schedule
- Communication plan
- Project budget
- Project kick-off
The purpose of Phase III is to ensure delivery of the defined product or service in accordance with the project definition. Here, a sharp focus on cost control, quality, and time use is necessary. To deliver the product or service, the team and the client discuss all issues openly in regular meetings. Changes in the definition of the project (deliverables, time, or cost) have to be made with the client. To generate the necessary input for phase V, it is paramount to capture knowledge during the realization of the project.
Steps in Project Realization
- Activity list
- Project review
- Capturing knowledge
- Project status report
- Steering group review
By the end of Phase IV, the client accepts and takes ownership of the product or service; the project team can be discharged of its responsibility to deliver. The focus here is on handing over the product or service that was agreed in Phase I. It must be made absolutely clear that after the completion of the project, the client organization is fully responsible for sustaining and maintaining the product or service that the project team delivered. Any further actions within the responsibility of the project team (beyond activities in Phase V) will have to be explicitly documented and agreed upon in an action list.
Steps in Project Completion
- Hand-over
- Final report
- Final meeting
During Phase V, lessons learned from the current project are captured for future projects. Project teams first run an «after action review». With knowledge transfer in mind, they then distill the lessons learned during the project. Learning can come from various aspects, such as the contents of the project (e.g., technical matters) or the process itself (way of working). The «after action review» focuses on the way of working. Content-related findings should have been sufficiently captured during Phase III. Both the output of knowledge gained during the realization and the output of the «after action review» will be integrated into the learning summary.
Steps in Project Evaluation and Transfer
- After action review
- Learning summary
- Knowledge transfer
Holderbank Management and Consulting has identified three principles for putting the PMA in practice:
- Action Learning: From the first minute, project teams work on real projects: the focus is not only on theory, but on immediate application. They learn while working on these projects, using PMA
- Client Involvement: Project teams work closely with clients (internal or external) during the definition and the ongoing life-cycle of their project.
- Local Multiplication: PMA applies a train-the-trainer approach for local spread («multiplication») and sustainability.
The Four Key Deliverables for Sustainable Implementation
In practical terms, to put the PMA system in place in a Group company – and to ensure sustainability – four key deliverables were defined:
- People development
- A system for making all projects visible
- A compliance system
- A PMA Website
People Development
To make sure people understand and use the PMA properly, Holderbank uses coaches and trainers – one coach per Group company, and trainers for each location. To further help Group companies with the PMA, HMC has created support materials for coaches, trainers and other users, including a PMA reference handbook, templates and training guidelines. Special materials are also available for coaches and trainers. PMA training material is available in all official Holderbank languages: English, Spanish, French, and German. More than 100 trainers throughout Holderbank have attended a «Train the Trainer» session. HMC publishes regular news on the progress of roll-outs, any significant changes in the approach, and new ideas that improve the process.
A System for Making All Projects Visible
HMC sees compliance as «checking on whether the PMA principles are actually being applied.» There are, therefore, two checks on the system. First, we always ask, «Do we apply the PMA?» (refer to «Compliance System»). And second, we ask, «What is the status of the project?» Regarding the status, projects are reported on (made «visible») when they reach Phase III. To this end, PMA has a standardized status report for all projects. HMC has designed a database (easy to install in all local IT networks) that allows local managers to gain a quick, one-page overview of the status of ongoing projects. It shows both the progress of each pending project and the status of all projects in a Group company.
A Compliance System
To check on compliance, the so-called PMA Arrow (a modified form of the five-phases figure above) helps users visualize the use of PMA. Essentially a system for attaining sustainability, the arrow is available on HolderSpace (the «Holderbank» Intranet) or as a stand alone application. In the Arrow, each step of the five-phase system goes with a series of questions (three to four) that can be answered in three ways: fully in place, partially in place, not in place. Three colors – green, red, and yellow – indicate the level of compliance.
A PMA Website
The PMA Website is the focal point for all PMA users (refer to figure 2). It is one of the first sites in four languages, and also one of the most frequently visited sites on HolderSpace. The PMA Website has general information on PMA implementation (GENERAL INFO). The PM CLUB, a discussion forum, offers suggestions for improvement. The PM ARROW provides a compliance check. Visitors can click on SUPPORT MATERIAL for the most recent versions of all training materials.
A Senior Manager Reports
Project management is, of course, nothing new at Holderbank. Many years before the PMA, Holderbank Group companies typically set budgets, used bar charts or critical paths. Projects were organized and responsibilities defined. There was follow-up on time and budgets, and more or less formal handovers. Still, certain aspects of project management often got short shrift: complete problem scenarios, project definitions, kick-off and «kick-out» meetings, official handovers, formal evaluation, and transfer of knowledge. The PMA, however, remedies these weaknesses. With the PM Approach, we now have clear project definitions that involve all stakeholders. Project teams are committed by a «contract». Main project goals are clearly defined and well-known. There is an official start and an official end, with a hand-over («certificate») and formal evaluation and transfer of knowledge.
Users agree that the real secrets to gaining the benefits of PMA lie in Phase I (Definition) and Phase V (Evaluation and Transfer). Why is this? Because Phase I demands an unusually profound analysis of the problems and needs of the clients, along with clear definitions of the global objectives of the project, the product, and the finish date. This first phase emphasizes stakeholder analysis, by asking questions like: Who is directly involved or affected? Whom do we need in order to push the project ahead? Who or what could hinder the project? What could occur? Phase V, at the other end of the project, puts a premium on learning from previous mistakes, one’s own and others. It accentuates the transfer of knowledge by analyzing the project at the close – honing in on mistakes and opportunities for learning.
The PMA is a simple tool that allows companies to tackle complex situations and solve difficult problems involving different areas and parties. Because it is simple, it is easy to adapt. The detailed checklists make it systematic, tangible, and applicable to all projects, technical and non-technical. It involves people, fosters teamwork and bolsters commitment. It defines issues and goals clearly, evaluates progress and results, transfers knowledge, and disseminates experience. It saves trouble and it saves money. Ask any Holderbank Group company manager or project member: PMA works.
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