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Digital transformation for chiefs and owners. Volume 2. Systems thinking
Digital transformation for chiefs and owners. Volume 2. Systems thinking
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Digital transformation for chiefs and owners. Volume 2. Systems thinking


– PMBOK from PMI

– ISO 21500 from ISO is a summary of PMBOK (100 pages instead of 500+)

– P2M from PMAJ – both pro and pro projects. Focused on the values that should get by the end of implementation.

– Prince2, developed by the authors of ITIL, a standard for the management of IT services.

There is also Agile as a set of principles and tools aimed at flexibility in the face of uncertainty and the need to test hypotheses, with a powerful psychological basis within.

If simplified, the approaches to the implementation of projects can be divided into:

– Waterfall model;

Cascade approach to project implementation – delivery of project product at the end of implementation

– hybrid;

Example of a hybrid approach with iterations at the requirement collection / initiation and design / project planning stage

– Agile.

An example of a flexible approach to project implementation

In turn, flexible approaches can also be decomposed into 3 types: iterative, incremental, iterative-incremental.

3 subtypes of a flexible approach to project implementation

At the same time, according to various studies, in life mostly (60—70%) used hybrid methods. Pure approach is very little, and it is normal, because it is impossible to create a universal tool for all occasions.

How to choose the right approach?

Before going through the basic approaches, I want to share one, essentially, key tool that allows you to understand at an early stage which project is in front of you, which standard or hybrid is more appropriate to apply.

It is a Kenevin model (Cynefin framework) that distinguishes five types of systems: Simple (Simple), Complex (Complicated), Confusing (Complex), Chaotic (Chaotic) and Random (Disorder).

Kenevin model

1. Simple system

Characteristic: Causal relationships are clear and unambiguous.

What we do, we get the best practices.

Order of Action: Understand – Classify – React.

Examples: repetitive and relatively simple projects, such as paving the sidewalk in the yard, webinar.

You can use any «cascade» standard. The main thing – not to be seduced by simplicity and do not neglect planning and points of control.

2. Complex system

Characteristic: Causal relationships exist but are not always obvious.

What we do: we use good practices and standards. There is no single «best practice», but there are many «good practices».

Action Sequence: Understand – Analyze – React.

Examples: ERP system implementation, production line reconstruction.

Here you need to comply with the requirements of PMBOK, Prince2, P2M, work with stakeholders and risks.

The «flexible» methodologies could lead to unreasonable budget overruns and delay. However, they can be used as part of a «hybrid» approach.

3. Complicated system

Characteristic: Cause-effect relationships are not clear. Similar actions lead to different results due to external factors.

What we’re doing is, there’s a field for hypotheses and experiments. In such systems, it is difficult to rely on historical information and individual observed facts. It is necessary to invent the practice of achieving results.

The order of action in this environment: Explore – Understand – React.

Examples: developing a new mobile app, entering a new foreign market, creating a bill in the field of artificial intelligence.

This is the territory of Agile and Scrum. Clear technical tasks do not fit here. Flexibility and awareness of risks, deviation from strict requirements are needed.

It will be a lot to communicate with the customer. As a rule, he himself does not fully understand what he needs. The final product may differ significantly from the original plan.

This is one of the reasons for the problem of IT implementation in large companies. Everything is done on paper, with budget restrictions. As a result, they come to uncomfortable and expensive in content and no budget for improvement, which is explained by the following points:

– Made according to the original requirements, which means the project can be considered successful. What other investments can be made?

– In bureaucratic organizations, it is almost impossible to grasp the fallacy of original desires or of understanding what is really needed. And when the mistake is finally revealed, they look for the culprit to punish.

– The limitations of budgetary rules. Who has faced this, understands what the problem is and how much it consumes time.

4. Chaotic environment (crisis, innovation)

Characteristic: No causal relationships. This is a transient short-term state, either to simple or complex systems (by means of strict restrictions) or to a confusing environment (by means of point measures).

The order of actions in this environment: Act – Understand – React.

What we do: The first step in chaos is action. The goal is to reduce chaos. Then it is necessary to feel the result of this action and to react in order to transfer the system from a chaotic state to a confusing or ordered one. There’s just no time to test hypotheses, and chaotic systems are incredibly fast.

The result depends on the literacy, courage and innovation of the thinking of particular managers.

5. Disorderly environment

It is particularly difficult to recognize because of the many competing options. The recommendation is to divide it into parts and to determine the context in which each of the parts relates.