PM ADVISORY:

A steep learning curve…
How Operationally Oriented Organisations can become more Project Oriented

By John Lugg

Moorhouse Consulting
UK

It’s a fact that operationally focused organisations don’t do programme and project management (PPM) well.  But with the Office of Government Commerce (OGC) demanding tighter focus and more value for money from public sector projects, the pressure is on large service providers to change how they manage and run their major change programmes.  Read on to discover why operationally led companies traditionally struggle with PPM, but what they can gain from adopting the basic principles …

The background of operational organisations

Operationally focused companies are those who earn the majority of their revenue by providing an operational service such as IT outsourcing, telecommunications services, banking, or retail, as opposed to those who do so by delivering projects and programmes such as construction companies.

The former see projects as a subsidiary activity; the latter see them as the very way they make money. The result of this cultural difference is that projects in operational companies have a much greater tendency to go wrong, and there are a number of reasons why…

• Operationally focused companies are designed for the steady state, not for change

Operational organisations run their business to cope with the ‘steady state’, in which multiple small daily issues are punctuated by a monthly reporting cycle. Planning is generally simple and repeated regularly, and people are familiar with their roles, where their information is and who they need to interact with to obtain it. These organisations are not designed for change and projects.

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About the Author John Lugg Author John Lugg is a Manager with Moorhouse Consulting and has over twenty years of business and leadership experience. He has both led and supported a variety of projects and programmes in areas ranging from IT software development and infrastructure deployment, to corporate acquisitions. John has worked with clients such as BT, Connecting for Health (CfH), BAE Systems, Vodafone, Telia, Xerox, Halfords and General Motors.  He joined Moorhouse Consulting after eight years with KPMG Consulting and Atos Consulting. John has a passion for solving business problems and understands the challenges of implementing change in large, complex organisations. John particularly enjoys working in close-knit, joint delivery teams.  John can be contacted at johnlugg@moorhouseconsulting.com Moorhouse Consulting is a management consultancy firm that specialises in programme and project management (PPM) advisory services. In November 2008 it was named as the Association of Project Management’s ‘Project Management Company of the Year.”  Clients include Transport for London, Nuclear Decommissioning Authority, National College for School Leadership, Department for Transport, Crossrail, BT and the NHS.  To learn more about Moorhouse Consulting, visit www.moorhouseconsulting.com.