Even organizations with high program management maturity can waste a tremendous amount of
resources on these initiatives due to poor planning,
lack of communication and delivery inefficiencies.
Consider this: The U.S. Department of Defense’s
96 largest engineering programs saw an accumulated cost overrun of nearly US$300 billion and
an average schedule overrun of close to two years,
according to the guide.
Alarmingly, this level of waste is not uncommon on major defense programs, says Bohdan
Oppenheim, PhD, professor of systems engineering
at Loyola Marymount University, Los Angeles, California, USA, and an author of the study. Programs
are rife with inefficiencies stemming from poorly
managed acquisitions systems, a lack of clear roles
and the practice of selecting contractors before
program requirements are properly prepared. “Such
programs tend to be unmanageable,” he argues.
The defense industry is not alone in its inefficient
program management results. “Studies show that
critical activities are idling on programs upwards
of 65 percent of the time,” Dr. Oehmen says. “And
even within the activities being executed, there is up
to 60 percent waste.”
“Studies show that critical activities are idling on programs
upwards of 65 percent of the time. And even within the
activities being executed, there is up to 60 percent waste.”
By taking a lean approach to program planning,
stakeholder management and project implementation, much of this waste can be eliminated, says
Eric Norman, PMP, PgMP, managing partner at
Norman & Norman Consulting, Atlanta, Georgia,
USA. “A lot of organizations use lean tools at the
staff level, but they are rarely incorporated into
project and program leadership and governance
practice,” he says. “That’s where there are huge
opportunities.”
—Josef Oehmen, PhD
Lean enablers can be mapped to specific metrics,
which helps teams validate their choices and defend
their projects, Ms. Giraud adds. “Adoption of lean
enablers provides support to management’s decision
by providing clear data to ensure that the most critical
and strategic programs are delivered according to expectations.”
PEOPLE FIRST
Respect for people and culture is another key theme in the guide and is considered the most critical enabler by many participants, including Prasanna
Chilukamarri, industrial systems engineer for storage-solutions supplier Warehouse One Incorporated, Kansas City, Missouri, USA. “All change takes time,
and you have to show your respect for people if you want them to move with
you,” he says.
