Adopting Project Management Methodology: PMBOK Vs. PRINCE 2

Proposed Methodology for Organization A

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Organization A is into manufacturing of memory chips and is based in USA. 2100 people work for the company. The mission of the organization is to keep growing and it is looking for establishing its markets in North America and South America. The organization currently uses CMMI methodology to delivered its projects. The company is already into the growing stage and is getting orders from the new markets. However, to e able to execute those projects, a more formalize an targeted approach is required to be taken. For this, the company as decided to adopt a formal project management methodology. However, in the process it is likely to face several challenges that have to be overcome (Karaman & Kurt, 2015). 

As the company is already CMMI certified, it would need a project methodology that can easily blend in. Also, the methodology should be complementing CMMI and provide an easy implementation. Adoption of new project management framework should not result into any conflicts in the system. PMBOK methodology is a guideline rather than a framework and thus, it is not very rigid in its structure and thus, can easily be integrated with any other existing methodologies companies may be using including CMMI. The company can still use the templates and reporting structured defined by CMMI and begin adapting to the new framework. PRINCE 2 framework would be more stringent in adoption although it does provide a tailoring option. It would require company staff to have an extensive training on the framework if it has to integrate well with the existing system. Thus, PMBOK is chosen for the organization A  (Measey, 2014).

PMBOK implementation would need the teams in the organization to understand its knowledge areas and the processes defined in the guidelines. For this, the project manager would arrange for the trainings where the staff would be given guidance on how the methodology can be adopted. Post training, there would be discussions made between project manager and his team with an aim to identify specific activities that would be required for integrating the methodology in the sytem that is already using CMMI framework. An external consultant may be hired to guide the teams during implementation so that cases of conflicts between two methodologies can be avoided or handled  (Williams, 2014).

The challenges that the company would face while adopting PMBOK and integrating the same with CMMI include:

• PMBOK methodology is a very exhaustive methodology that contains 10 knowledge areas and 47 processes; Understanding and adopting them could be very time and resource consuming. To overcome this difficulty, the company is recommended to take a phase wise approach such that parts of the guide are adopted one by one and as the company progresses, the changes keep happening. This would reduce the pressure on the team to understand the full methodology before it can be used.
• Commitment would neede from the top management as without it the company would not be able to smoothly embrace the new methodology as the adoption would require high degree of coordination among staff which ca n only be brought about with roper intervention from the top management. Thus, the project manager has to seek buy-in from the top management before implementing the new methodology. It would also help in establishing control over project activities (Valek, 2014).
• A large number of new documents and templates have to be created while the new methodology is used that can consume a lot of resources and their time. Thus, there is a possibility that employees would resist the adoption. The project manager should take the lead in this time and explain the staff how this adoption is going to help them in the long run to get their buy-in(Rowley, 2013).
• AS the company would have two methodologies working together, there are chances that conflicts may arise between them if the team did not understand how the integration can be made successful. Thus, an external project management consultant can be hired to guide the team in the process of integration between PMBOK and CMMI to get best results(Business Solutions, Inc., 2015).
• Both PMBOK and CMMI guides have different metrics that can be used for measuring project progress and its performance. This can be confusing as well as time intensive for the people. Thus, project manager needs to find a way to align the two performance management systems so that unified metrics are used(Ghosh, et al., 2012).
• If the infrastructure is not able to fulfil the needs of new system then it can fail the adoption. The organization would need a supportive infrastructure to be able to use both methodology in tandem.
• Adoption of new methodology can be confusing for those involved in the process as it is different from their earlier structure and may demand different responsibilities to be taken which can be confusing. The company needs to have clearly defined roles and responsibilities for implementation to avoid any confusions in action(Fritzsche & Keil, 2007).

Implementation for Organization A

PMBOK adoption would bring in following benefits to the organization:

• Project management processes would become more standardized and organized such that tracking progress of project would become easier.
• Organized and planned way of project management would bring in improvements in the performance of projects and there could be more projects completed within budget and within scheduled timelines.
• PMBOK would make the processes very transparent with high level of documentation of all the activities and would also serve as a knowledge base for the company in the long run so that the company can keep on improving itself
• Sound monitoring systems can be established for tracking project progress so that deviations can be identified and prevented on projects
• The drawbacks of CMMI would be overcome with the benefits that are provided with the PMBOK framework which would make improvements in the way projects are managed by the organization (Tutorialspoint, 2015)

Organization B is into construction of public infrastructure projects in the Europe. It has 300 permanent employees working for it while independent contract workers are hired on the third party payrolls for specific projects. The company has its headquarters in Paris, France. The company is in the process of expansion and want to take more projects from other regions. However, for every new project , the Director is expecting the get a business case presented which would help him take appropriate decision to choose the projects that would be beneficial for the organization. The company uses Euro codes as the foundation for managing projects. However, for this to happen, the organization would need a formal project management processes and thus, the company is looking for adoption of a project management framework. The new framework would be able to help the organization plan, execute, and control government projects in an organized way  (Karaman & Kurt, 2015).

The organization does not have any formal process used for managing projects and thus, the decisions are completely taken by project managers on how to manage government infrastructure projects. The organization thus needs a framework which is easy to understand and can be adopted fast by the staff without having a need to conduct an extensive training before the process of implementation begins.  PMBOOK provides clear and easy guidelines to follow and it can be adopted in phases even with minimal training required. On the other side, PRINCE 2 is  a highly formalised methodology that needs experts to intervene if the adoption of the framework has to be made smooth. Thus, PMBOK is the methodology recommended for the Organization B (PMI, 2010).

PMBOK is a guide and not a proper framework and thus, it provides flexibility in steps of adoption. The company can thus used a phased approach to its implementation and can be selective in the processes that it would be adopting in the first phase. The company need not embrace all 47 processes but can be selective. Thus, the implementation process would begin with the identification of the needs for project management framework in specific processes and selection of appropriate processes for adoption

Figure 3: PMBOK Processes (Vargas, 2015)

An inventory of various process management processes would be available in the framework with clear identification of which of them to be used in which stage of a project implementation including initiating, planning, execution, monitoring, control and closure. 9 knowledge areas would be referred to which can again be chosen from depending on the needs of the project (Wojnar, 2015).  

Understanding and Addressing Challenges for Organization A

Organization would face certain challenges while adopting new methodology and they would be overcome in the following ways:

• Project managers usually have a tendency to adopt to the complete framework while implementing a new framework in a company. However, with the exhaustive methodology like PMBOK, this can be time coming. Thus, the company can take a decision to only embrace selected processes and adopt them in phases so that projects can start taking the benefits of the methodology and the company makes a gradual change.
• Project managers would want to improve their current processes but it may not always be necessary that all the processes that are identified in the framework can improve the current process. The company may already have certain processes that are efficiency and need not be changed. Thus, making any attempt to change them would not be beneficial for the company and would thus, face resistance from the staff. This challenge can be overcome by involving staff in discussions to select only those processes that are important to adapt while others may continue to use old methods (Ghosh, et al., 2012).
• Making decisions on what processes would be useful while which processes can be skipped need an expert view which may not available inside as people are not used to making use f any formal methodology for managing projects and thus, lack experience. The challenge can however be addressed by involving a third party consultant who would be helping the team take the right decisions (Vargas, 2015).
• As the implementation of PMBOK framework would nee a lot of change to be made in the way people work and thus, the company is likely to face some resistance. Thus, the project manager must involved staff in planning the implementation as well as implementing the methodology giving them insights at the same time on how the adoption would help them improve their productivity in the long run and benefit the organization(Siegelaub, 2009).

With adoption of PMBOK, the company B would have following benefits:

• The project management processes would  be more organized and formalized which would make it easier for the company to deal with the government processes.
• With proper documentation of everything, the company would be able to track the progress of projects and identify any problems proactively so that they can be resolved before affecting the projects significantly
• The knowledge base that would be created as a result of documentation would be useful for the company in the long run as it would serve as recorded lessons for the future projects that company would be taking
• Standardization and documentation would bring in transparency on how projects are managed by the company
• Formalized communication management would help project teams coordinate better which would enhance their cooperation and productivity(Jarocki, 2014).

Orgnization C is a 11 year old organization that provides financial services to companies in Asutralia and it is operated by  around 800 people across the nation. The company is mature in thee industry and uses formal processes for delivering its projects. However, the company still feels the need to improve its proejct delivery for which it is looking for adopting a new project management framework that is more formalized and effective in managing projets. The company is currently using regulator performance framework of Australian Prudential Regulation Authority. The company has a structure in which a projects manager is at the heart of any projects and thus, have complete freedom to take decisions on how to manage the project.  (Court, 2006).

The company is currently using an age old framework for managing its projects but to be able to enhance its project delivery capabilities, a new framework may be chosen from the two most common project management methodologies including PMBOK and PRINCE 2. PRINCE 2 can provide best practices for improvement and can be adopted fast with involvement of expertise people while PMBOK is more exhaustive methodology that can take time adopt completely. Considering the level of maturity company already has an the rich experience of the project manager, PRINCE 2 framework could be adopted here as it would help already mature company further improve its processes through the use of its principles  (Ferguson, 2011).

The methodology would further strengthen the management processes and reduce complexities with defined stage wise approach to projects management. It would involve proper planning and documentation that the company would use to monitor its projects (Turley, 2012). The PRINCE 2 framework devices projects into stages with specific boundaries that ate to be controlled and managed independently till the last part of the project and that is closure. The lessons learned would be recorded for the company to make use of in the future projects  (Hinde, 2012).

The top management involvement in the process of implementation is required for PRINCE 2 adoption as it would need to staff to change its working culture and learn to adopt a lot of new processes for management of the projects. The company ‘s top officials include CEO, CFO, COO, and VP who would be involved in taking decisions about the adoption and project management. For implementation, the company employees would be trained on the methodology with some given proper certification to ensure that they have all the required knowledge about the framework. An external consultant would be hired to guide them through training as well as adoption. The team members who would be participating in initial stages of adoption of PRINCE 2 framework would include operations manager, project manager, IT manager, pre-sales manager, sales manager, and procurement manager. After completing the training, the PRINCE 2 framework would be officially adopted and all processes used for managing projects would be used for tailoring the methodology to suit the organization (Kirwan, et al., 2008).

Benefits for Organization A

The PRINCE 2 adoption does not have specific steps to follow but a few principles to adhere to and these include:

• Development of a business case that would justify the project strategically so that the director can take a decision on whether to proceed with the project or not.
• The lessons that are learned from any project are recorded as lessons learned document and would be used for guiding future projects(Saad, et al., 2012)
• Project activities are required to be divided into stages with defined and manageable boundaries such that they can be assessed periodically for improvement(Siegelaub, 2009)
• The staff should be made accountable for the projects deliverables in order to establish a better control over the projects (Murray, 2009).
• The projects management methodology has to be tailored according to the needs of the organization considering its structure and existing processes that already deliver results(Siegelaub, 2009).

PRINCE 2 adoption would bring certain challenges for the company that have to be overcome in following ways:

• Tailoring needs to be done carefully as any errors can impact the project performance and the company would not be able to achieve its objectives sufficiently. An expert may thus, be needed to guide the team into efficient adoption. The company would thus, hire an external projects management consultant to guide the team through the implementation process (Valek, 2014).
• The work culture of the company would have to be changed to some extent if the methodology has to be fully embraced which could bring resistance from people who are used to working in old ways. To overcome this resistance, the company can involve the employees from the beginning of adoption planning and provide them insights into the improvements that company would have with the new adoption in order to get their buy-in.
• The methodology implementation would need a high level of coordination among people which makes buy-in of employees important as well as push the need for cooperation from top management to keep the employees on track. However, this can be a challenging task and thus, it is recommended that top management must be involved in the planning process and buy-in is sought before the methodology could be implemented.
• The company has not used any similar methodology for the management of it projects in past and thus, its employees would need an extensive guidance on the methodology. For this, the company can provide them training and certification on the framework so that they are able to serve the needs sufficiently(Turley, 2012)
• Methodology does not define processes in some areas like procurement and knowledge management which if needed by the company, the company would need to add them to the methodology in tailoring process (Saad, et al., 2012).

PRINCE 2 methodology adoption would bring following benefits to the organisation C:

• Being a highly flexible methodology, the company would be able to tailor it as per its requirements and take the opportunity to improve its processes.
• The lessons learned would be recorded which would form a knowledge base that can be used in the near future
• With certified professionals involved, the effectiveness of project management practices can be enhanced so that the company can achieve better results (Measey, 2014).

Conclusion

This paper had the objectives to compare PMBOK and PRINCE 2 prjoect management methodlogy considering specific cases of companies in which they can be adopted. For each case, the two methodologies were evaluated with background of the company in considered and a selection was mode on which methodology would be more suited for respective companies. The report also explained how the processes would be implemented, identified challenges that would faced by the company in the process and presented solutions for the same. Several benefits would be achieved in each company with this adoption which is highlighted in very case in the report. Some  common challenges discovered were requirement for training, resistance from employees, and introduction of complexity. Solutions recommended were hiring of an expert consultant, proper training of employees, phase wise adoption in cases of PMBOK, and tailoring of the methodologies to suit the needs of the organization.

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