Method
This section Method introduces the new dedicated method for project suppliers to manage project objectives effectively within their organisation and its project execution practice, to close the gap between project and organisational success at the project supplier, to provide the most possible benefit for its organisation, to secure its future.
SPOM Model and Process
SPOM Model
As first part of the final step towards a project objectives management method for the project supplier – from here on called supplier project objectives management, abbreviated SPOM – the generic supplier project objectives (section Generic objectives) are merged with the supplier perspective on project objectives (section Supplier perspective). The resulting SPOM Model structures its key elements (supplier project objective actions, supplier project objectives, supplier organisational benefits and supplier goal) alongside execution of the project and delivering the project result to the customer (the supplier project actions), and defines the generic supplier project objectives, the primary interface between the project (team) and the organisation. (Figure 1)
Figure 1 SPOM Model ©
For these supplier project objective actions, the following is important:
- the active action, to actively change potential supplier organisational benefits into actual realised supplier organisational benefits by embedding them within the organisation;
- and the responsible party (project team or organisation) for these actions.
According to T.J. Cooke-Davies, benefits are not delivered or realised by the project manager and project team, they require the actions of operations management. [1] This calls for a close co-operation between the project team on the one hand and the 'sponsor' or 'customer' on the other. This fact is elevated to his ninth critical factor for project success: the existence of an effective benefits delivery and management process that involves the mutual co-operation of project management and line management functions.
SPOM Process
As second part of the final step towards a project objectives management method for the project supplier, the elements of the method's model are captured in an implementation and execution process within the organisation.
The main principles of effective project objectives management at the project supplier are centred around:
- Creating incentives to subordinate the project to its organisation and its goal.
- Transforming passive results of supplier project actions at the project supplier into pro-actively managed supplier project objective actions to achieve specific supplier project objectives (passive supplier project actions act as catalyst for active supplier project objective actions).
- And pro-actively embed potential supplier organisational benefits as actual realised supplier organisational benefits within the organisation.
Note that the project objectives connect and align activities of the project team with those of the organisation, acting on the interface between project and organisation. According to Cooke-Davies [1], business or organisational benefits, as opposed to project objectives, are not delivered or realised by the project manager and project team, they require the actions of operations management. This is elevated to his ninth critical factor for project success: the existence of an effective benefits delivery and management process that involves the mutual co-operation of project management and line management functions. A major challenge is and remains that certain objectives contradict each other or compete for available sources, which has to be managed (balanced), always with the organisation's goal to secure its own future as guidance.
Supplier project objectives management is implemented within the supplier's organisation by six repetitive organisational and project team process activities:
- organisational definition of organisational objectives;
- project definition of specific objectives;
- planning of objective actions;
- execution of objective actions;
- measurement and control of objective actions;
- and finally embedding of organisational benefits.
These process activities are interlinked by a process flow from one project to the next via its organisation, managed by the project team and the organisation (management and staff departments) (Figure 2).
According to Oxford Dictionaries, strategy is 'a plan of action designed to achieve a long-term or overall aim'. Organisational definition is the strategic level of the method, executed by the organisation. [2] Planning, implementation, measurement and control, and embedding is the succeeding execution level of the method. Within the execution level, Planning, implementation and measurement and control is executed by each project; Embedding is again executed by the organisation and is finally feeding back to the organisation's Organisational definition.
Figure 2 SPOM Process ©
The process consists of the following activities:
- Organisational start – The process starts with implementation of SPOM within the organisation, onwards to the first choice within the process.
- First time organisational definition? – Flowing from the project start, or back from a completed organisational and project cycle, the first-choice checks if this is the first time for the organisation to conduct the organisational process activity of Organisational definition or not? If yes, the process flows directly to that first organisational activity, if not, the process initially by-passes this first activity, however, flows via another choice, Re-definition necessary?.
- Organisational definition – This first and organisational process activity of the method allows for tailoring (definition) 'generic' into 'organisational' supplier project objectives specific for its own organisation, executed by the organisation (management and staff departments). In addition, the organisational objectives are prioritised based on the organisation's core philosophy and vision. These organisational supplier project objectives form the basis, and the input for the remainder of the method's process by the project team and the organisation.
- Re-definition of organisational objectives necessary? – This choice checks if re-definition of the 'organisational' supplier project objectives is necessary or not, flowing from the choice if it concerns a First-time organisational definition? If yes, the process does flow back to this first organisational process activity. If not, the process does finally by-pass this first activity and flows on to project start.
- Project start – From organisational definition, the process flows on to the start of the project, where the project team start the project related process activities of the method, based on the input from the Organisational definition process activity. The process flows on to the first the first project team process activity of the method, Project definition.
- Project definition – The first project team process activity of the method consists again of tailoring (definition), but now of 'organisational' into 'project specific' supplier project objectives relevant or suitable for the project, executed by the project team and approved by the organisation (management), based on the organisational supplier project objectives defined by the organisation. From Project definition, the process flows on to Planning.
- Planning – The next project team process activity consists of planning of supplier project objective actions to achieve the project specific supplier project objectives, executed by the project team and approved by the organisation (management). From Planning, and also from the control loop from the process activity Measurement and control, the process flows to on to Execution.
- Execution – The main project team process activity during the project execution phase is the execution of supplier project objective actions to achieve the project specific supplier project objectives, executed by the project team. From the Execution process activity, the process can flow in different directions; back into the control loop via the 'measurement and control' process activity; to the finish of the project, after having flowed through various control loops of Execution and Measurement and control; or directly to the next and organisational process activity, during the project execution (intermediate) prior to project finish.
- Measurement and control – The control loop of Execution is conducted by measurement and control of the supplier project objective actions, executed by the project team and reported to the organisation (management). This control loop is flows various cycles until the finish of the project.
- Re-definition of project specific objectives necessary? – Another process flow into this project team process activity of project definition flows from a choice which checks if e-definition of project specific supplier project objectives is necessary or not, flowing from the Measurement and control process activity.
- Project finish – From Execution, the process flows on to Embedding directly, or via project finish.
- Embedding – Directly from the project following Execution or after project finish, the process flows to the organisational process activity Embedding, where supplier organisational benefits are embedded (made available by turning potential into actual realised organisational benefits) within the organisation, executed by the organisation (management and staff departments). After Embedding, the process flows back to the first choice which checks if this is the first time for the organisation to conduct the organisational process activity of Organisational definition or not?
Each process activity and re-definition choice is further introduced in the next chapter.
Supplier project objectives management (SPOM) is the management of the active elements of the SPOM Model (actions, objectives and organisational benefits) by the management of the six repetitive organisational and project team process activities of the SPOM Process (definition, planning, implementation, measurement and control, and embedding). The method revolves around the supplier project objectives, to be achieved by implementation of planned objective actions through project execution (executing the project and delivering the project result). The achieved supplier project objectives are potential supplier organisational benefits that turn into actual realised supplier organisational benefits by embedding as changes within the supplier's organisation, that take it closer to its goal, to secure the future of the organisation.
Footnotes (see section References)
[1] Cooke-Davies, 2002.
[2] Oxford, 2020.