Our group of companies LANIT is very large-scale, and those 40+ organizations that are included in it are scattered throughout the country. Such a scale requires a constant change of approaches, a revision of values. Of course, not in every company, but definitely in many projects. And as you know, the values ahead of the rest - Japan.
This article is intended for those interested in project management, practitioners and theorists. It will allow you to familiarize yourself with the Japanese P2M methodology (Project & Program Management for Enterprise Innovation), which differs from the usual Western approaches, including an orientation toward creating additional values for the company and a direct correlation between the changes in business and the enterprise’s mission.
A sourceIn our time, the problems of governance in a developed industrial society are complex. Project management theory can only provide basic knowledge of how to partially solve such problems. Thus, program management, based on managing several projects, first tries to divide complex problems into several simple ones, denoting a separate project for solving each one, and only then they are combined into a single whole to achieve a common mission. The first standard using this approach was P2M (Project & Program Management for Enterprise Innovation), developed by Japanese experts based on the generally accepted knowledge described in PMI PMBOK and on the experience gained by generations of managers of the “land of the rising sun”. This project management standard was the first published outside of the West.
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Japan has always developed and develops, primarily based on accumulated knowledge and new research, and is one of the leading centers of innovation throughout the world. Now, companies in the high-tech sector of the economy have to change their approach to production to survive. They need to revise the procurement policy, training policy and the refusal of unprofitable parts of the business, creating new products. At the same time, the society still wants to receive more life values and an innovative and convenient technique for life. Taking into account these needs of the business, P2M was created, the essence of which is the creation of a basic basis for innovation, and in the long term, a new organizational structure of the enterprise, while strengthening its corporate values.
A sourceManagement by P2M methodology differs from simple administrative management in that it sets deadlines in accordance with company missions and solutions to identified problems. The whole idea of P2M is based on project management, program management, individual management and general management skills. So, Japanese experts in the field of project management distinguish three generations of project management.
- First generation. The basic concept was to set goals for cost, time, quality and content to achieve consistently high results.
- Second generation In addition to project activities, emphasis was placed on operational activities in order to obtain expected results that would satisfy all interested parties.
- Third generation Unlike the other two generations, which focus on the internal environment of the project, there is an emphasis on changing the project environment and finding solutions to complex missions to increase company values, as well as using the best sides of the project teams involved. P2M belongs to this generation.
To understand more deeply the difference between P2M and popular Western project management methodologies, consider the standard definitions of project management in its context.
- Project: is a value creation activity, the main purpose of which is to fulfill a special mission in a certain period of time (marked by the beginning and the end) under certain restrictions (resources, circumstances).
- Project management: organizing the work of the project team to fulfill the stated mission and obtain clear results through effective organization of the project activity by acceptable, justified means.
- Program projects: a set of tasks that require implementation. Programs are a combination of several projects that carry out a common mission. The main features of the programs are shown in the table below.
- Program Management: The focus is on external changes regarding the program and adapting to their flexible management, increasing the company's overall values, streamlining relationship management and combining projects to achieve the overall program mission. For effective management, the necessary program attributes such as mission, values, society, architecture and management skills necessary for it must be identified.
At the same time, in the understanding of P2M, a short program management plan will look like this:
- first step (description): adaptation to external changes and the implementation of a common mission;
- second step (general idea): understanding the elements specific to the programs being implemented;
- the third step (general principles): setting the main goal of program management;
- Fourth step (integration management): creating company values and general management optimization in it.
Like the other project methodologies and standards, P2M divides the management of programs and projects into several components with which you can achieve the success of your mission. Consider them below.
- Project strategy management: defines the relationship between corporate strategies and projects, and also sets the direction for the effective implementation of project activities in accordance with corporate values;
- financial management of the project: creates and prepares the basis for the mobilization of funds necessary for projects;
- management of project organization: determines the possibilities of organizing activities for a quick and flexible response to indirect changes in the external environment of the project;
- project goal management: defines a plan for achieving project goals, so that project managers and project teams can plan project execution processes until the end of the program, taking into account all constraints (including contract conditions and limited resources) and carry out project work in a balanced manner;
- project resource management: identifies the resources required for the project and properly provides them (including materials, people, information and financial resources, intellectual resources);
- information management: determines the technology for preparing most of the information during the project;
- risk management: implementation of control and response to each risk;
- relationship management: operational activities that determine the principles and methods of managing relationships between stakeholders involved in a project;
- value management: collects knowledge, experience and sources that provide values (such as typical corporate or project activities) for projects;
- communication management: determines the basic principles and methods of communication on the basis of previous experience, taking into account intercultural communications;
- system project management: allows you to avoid ambiguous and unexpected issues during project execution.
If you look deep into P2M, you can see that it is developed on the basis of a standard approach to program management. At the same time, extending as a whole to the company, its main focus is on improving corporate interaction in work processes, creating and developing the strategic basis for such interaction in the project management of the company. At the same time, management seeks to learn from the whole team what corporate values exist and to create a new business model for managing the company based on this.
Typical P2M management steps in a company are:
- definition and creation of values;
- expansion of areas of influence of projects in the company and beyond;
- using accumulated national wisdom;
- conducting three-level certification of professionals whose main task is to create new basic foundations of business processes;
- creating a hybrid of knowledge and capabilities;
- adoption of the main models of project management: "scheme", "system" and "service";
- transition from the art of individual management by PMBOK to the management of P2M programs;
- creating an understanding (general concepts and vision) of the PMBOK project manager;
- expansion of individual management, taking into account each of the elements of management: strategy, finance, systems, resources, relationships, values.
The highlights of P2M have been described above. Summing up, we can say that this methodology is significantly different from its Western counterparts. The use of experience gained by generations, and, first of all, the focus on improving business processes and achieving the company's mission is different from the generally accepted goals of projects - making a profit. Looking at the experience of implementing projects in the “Land of the Rising Sun”, one can see that a large number of companies manage projects according to western or proprietary methodology, while obtaining excellent results, and at the same time, the largest companies (for example, energy companies), working with complex and creative tasks, successfully solve them using the P2M software approach, which goes beyond the Western management style and at the same time corresponds to Japanese culture.
A sourceWithout a doubt, in such a rapidly developing century of innovation, the P2M standard will soon be popular all over the world, and not only Japanese companies will use it. In the recent past, the Ukrainian government attracted P2M specialists to train its civil servants in order to effectively solve innovative tasks and missions.
Of course, it is difficult to apply the entire “from” and “to” methodology, but you can implement individual ideas and principles that will allow you to carry the spirit of kaizen in your projects.
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