The Project Lifecycle and Project Strategy

For a project strategy course I'm taking, we read an interesting case study concerning the traditional project lifecycle graphic (some form of Initiation/Planning/Execution/Termination). Authored by Daniel R. Heiser and Bin Jiang, The Eye Diagram is an expanded model that not only shows the amount of effort and/or budget required for each stage, but also looks at the project as part of a larger system, and highlights the changing set of requirements that each stage creates. Here's a few thoughts on where the traditional model falls short, and some of the benefits that an Eye Diagram-type approach offers the PM.

As I mentioned, the traditional project lifecycle model shows the amount of effort required for each phase, and how those phases overlap. This type of illustration, along with other charts such as percentage of work completed and cumulative budget spent graphs, tend to show the project lifecycle as a function of time or resources. However, these charts are really more of a project performance measure, or a simple planning tool, than they are a strategic model for project management. Two key things are absent from these traditional models – first, the environment that the project is being conducted in isn’t taken into account; and second, the changing perspective that PM’s must have to effectively manage each stage of a project is ignored. Each of these factors is critical to implementing a successful project strategy, and effectively managing the project through each stage of the lifecycle. For this post, I’m going to concentrate on the first issue and how it relates to project strategy.

Relying strictly on the types of charts mentioned above can cause the vacuum effect – where the PM ignores the project supra-system (i.e. the organization, the competitive market, the economy). Because the traditional graphics focus on time, resources and costs, they lock PM’s into a world that considers only project constraints and internal forces. It can fool inexperienced project managers into thinking that operational concerns and time/cost/schedule trade-offs are the keys to success, when in reality they are only supporting elements and performance measures. In fact, no project operates in a vacuum, and the real keys to success aren’t even identified in these models.

To be successful, a project needs to have a strategy that is aligned with the overarching corporate strategy. This strategy also needs to have certain elements to it, such as a business need or an opportunity that is driving the project, and a focus on environmental factors as well as internal ones. It needs to be “client-centric”, with a focus on delivering a satisfactory product to the client, but still must balance the requirements of all stakeholders to maximize value. The strategy also needs to be fluid – that is, it must be regularly evaluated and updated as the project situation changes.

If you go back to the traditional lifecycle, you’ll see that none of these topics are illustrated or dealt with. As I pointed out before, the traditional lifecycle is focused on constraints and performance measurement. A project manager needs to go beyond this model, identify external forces, and focus on the flow of each stage in relation to those forces. The Eye Diagram is one useful tool to do just that, and it also helps the PM focus their efforts as they move through each stage of the lifecycle.

Ultimately, for value realization and stakeholder satisfaction, PM’s require a methodology to help them create and execute the strategic plan; something that does more than simply account for resource usage or percentage of project completed. It should identify and account for the strategic issues that will affect eventual project success. Things such as the external environment, the parent organization and even critical success factors should be identified and illustrated, right from the start. As the project progresses through the lifecycle, the focus of the PM’s strategic efforts needs to shift, so they can better understand what factors will impact decisions and therefore require the most attention.