IPPM - The Integrated Process and Project Management Organization

IPPM Organization®
Integrated Process and Project Management Organization

Stefan Hagen, © startup euregio Management GmbH

Major challenges of
today‘s business environment
„Only the fittest will survive.“ → strategic AND operational excellence is
needed, high performance organizations
intensity of competition is increasing – price pressure, innovation
Globalization & pressure, quality pressure, time pressure...
effectiveness AND efficiency
Competition
company‘s culture, strategy, processes, and structures have to be
aligned to the radical change
etc.

complexity is rising – time for action is declining
radical technological innovations, innovation pressure
changes and trends are hardly predictable
Complexity and cross-functional collaboration and communication is more and more
discontinuity important
high risk projects, increasing uncertainty
etc.

War for Talents, Human Resource Management as a major challenge
inter-cultural management
Rising importance long-term business relationships are based on trust and personal
of „soft facts“ networks
etc.

© startup euregio Management GmbH, 2001-2008 2

That‘s how most
organizations work today...


... and thats how they should work!


We need fast, innovative
and adaptive organizations!


The Roots of Modern
Organizational Theories

Taylorism („Fordism“)


And today? Taylorism still dominates!


Conclusion


The use of good theory...

„Even for practical purposes theory generally turns out
the most important thing in the end.”
Oliver Wendell Holmes, Writer, 1809-1894

„Everything should be made as simple as possible, but
not simpler.”
Albert Einstein, Physicist, 1879-1955

„It is beyond a doubt that all our knowledge that begins
with experience.”
„Experience without theory is blind, but theory without
experience is mere intellectual play.“
Immanuel Kant, German Philosopher, 1724-1804


The heart of IPPM


Some Core Values of the IPPM

Keep things simple To lead means
in a complex world to serve!

Vertical AND

* also see Tom Peters (2003) Re-Imagine. Business Excellence in a Disruptive Age
horizontal view
Smaller, flexible
and adaptive units

Professional
Service Firms (PSF)*
Real customer
orientation
Self-organization,
entrepreneurship

WOW Projects*
Improvise!
ACT!
Accept nothing but
excellence and quality
Stagnation means
Regression →
Question everything!


Helicopter Perspective


The IPPM Organization®

FUNCTIONAL MANAGERS

Business Process A
Customer Requirements

Customer SUCCESS
MANAGERS
PROCESS

Business Process B

Business Process C
PROGRAM &

Program XY
MANAGERS
PROJECT

Project A
Project B
Project C
Project D

Support Support Support Support
Process A Process B Process C Process D

VALUE DRIVER LEVEL

The Integrated Process and Project
Management Organization® ...
• •
... in an integrated management ... combines the vertical
model to effectively and (departments, line management,
effeciently design, lead, and functions) and horizontal
continuesly renew organizations, (processes, projects) view of an
organization,
• ... is a new management
•
paradigm, ... allows to balance out customer,
employee, and business
• ... is based on a systemic and
requirements continuously
cybernetic understanding of
•
organization and management, ... is based on the following
general principles: simplicity,
• ... is a stable framework for
efficiency & productivity,
developing high performance
effectiveness & performance, top
organizations,
quality, real customer orientation,
• bias for action, speed, self-
... is a field-tested organizational
organization & entrepreneurship,
approch based on proven
continuous individual &
management concepts and
organizational learning
theories


Organizational Units within IPPM
ORG. UNIT ROLE & RESPONSIBILITIES
General Management ensure competitiveness and long-term survivability
normative and strategic management
business development
strategic change management
strategic human resource management
Functional Managers maximize business value, profits
strategic development of the function (effectiveness) → human
resource management, knowledge management
operative leadership of the function (efficiency) → management by
objectives
resource management and alignment
Process Managers maximize customer value (internal, external)
strategic process design and development
operational process leadership and coordination
Program & Project maximize customer value (internal, external)
Managers leadership of project teams
ensure program / project sucess (on scope – on budget – on time)
cross-functional knowledge management


Value Driver Level

• Professional Tension Management
• Strategic and operational Management & Leadership
• Human Resource Management
• Knowledge Management
• Change Management, Management of Change
• Ensure Business Excellence


Value Creation Level

• Input: Customer Requirements
• Transformation: efficient and effective creation of values
• Output / Outcome: Customer Success!


Support Processes

• necessary for effective value creation
• outsource (if possible)! → concentrate on own core
competencies

• Examples:
– IT Support
– operative Marketing, Advertisement
– Facility Management
– Call Center Management
– Legal Issues
– ...


Professional Tension Management

It‘s not EITHER ... OR
It‘s BOTH ... AND


Between the poles -
Management of Tensions and Extremes
Maximize Customer Value Maximize Business Value
vs.
Exceed customer expectations Profitability, cost savings

Flexibility, Dynamics Stability, Repeatability
vs.
Projects, Team Work, Innovation Operations, Functions, Routine Processes

Cross-Functional Managers, Line Managers, Functional Managers
Generalists Specialists
vs.
Process Manager, Project Manager, Engineers, Production Experts, Technicians...
Program Manager

Simplicity Complexity, Variety
vs.
KISS: „Keep it simple, stupid.“ „Only variety can destroy variety.“

Horizontal View Vertical View
vs.
Processes, Projects, Programs Lines, Functions, Departments


Professional Tension Management

CONFLICTING GOALS, CONTRADICTION

Overcoming through

COOPERATION CONFLICT


Professional Tension Management in the
IPPM Organization®
• Professional Tension Management requires a corporate culture
which is dominated by openess, mutual trust, and the ability to deal
with conflicts and disagreements.
• Managers must demonstrate and also claim professional tention
management from „top down“.
• „Good“ decisions are rationally AND emotionally right.
• There is no right or wrong – no black or white any more. It‘s about
taking the right decisions for the moment, it‘s about taking chances
and proactively fighting risks. What was right yesterday can be
wrong tomorrow.
• Constructive criticism is required and asked for. Destructive
criticism is prohibited.
• Areas of tensions and disagreements: Human vs. Human, Issue
vs. Human, Human vs. Issue, within humans


IPPM Success Formula

+

Excellent People & Culture Excellent Strategy, Processes, and Structure

SUCCESS
=


Coordination and Collaboration in the
IPPM Organization
• Core competencies and specialist know-how
are concentrated in vertical functions and
departments.
• Personal ressources are normally assigned to
the functional managers.
• Values are solely created in business processes,
programs, and projects.
• Process managers, program managers and
project managers coordinate and manage the
creation of values in cross-functional process
or project teams.
• Conflicting goals are solved through a
professional tention management (vertical vs.
horizontal goals).


The Goal: High Performance Organization

High Performance
Organization =
Intensity: Leadership / Culture

BUSINESS
EXCELLENCE

Integriertes Qualitätsmanagement: Seghezzi u.a. (2007)
Integration of Sub-Systems


Just do it! Start today!

„I've learned that mistakes can often be as good a teacher
as success.”
Jack Welch, CEO of General Electric from 1981-2001


Academic Foundation
of the IPPM Organization®
Organizational Learning / Change Management

NM
OT / OB
IMS
Normative,
Organizational
Value-Based
BPM Integrated
Theory (OT),
Management
Management
Organizational
Systems
Behaviour (OB)
Business Process
Management
SGMK
SM
Info-M
St. Galler
Strategic
PM Information Management
Management
Management Konzept
QM
IM Project Management,
WFM
Program Management,
OM
Project Portfolio Quality
Innovation Workflow-
Management Management
Management Management,
Operative
Logistics
Management
Systems Approach, Management Cybernetics, VSM

Sources
BLEICHER, Knut (1994): Normatives Management. Politik, Verfassung und Philosophie des Unternehmens. St. Galler
Management-Konzept Band 5. Campus Verlag. Frankfurt/New York.

HAAS EDERSHEIM, Elizabeth (2007): Peter F. Drucker - Alles über Management. Redline Wirtschaftsverlag.
Heidelberg.

HEIMBOLD, Roman (2005): Alles im grünen Bereich. Projektmanagement für jedermann (1. Aufl.). mitp-Verlag. Bonn.

MALIK, Fredmund (2005): Führen, Leisten, Leben. Wirksames Management für eine neue Zeit. Heyne-Verlag.
München.

MALIK, Fredmund (2003): Systemisches Management, Evolution, Selbstorganisation. Grundprobleme,
Funktionsmechanismen und Lösungsansätze für komplexe Systeme (4. Aufl.). Haupt Verlag.
Bern/Stuttgart/Wien.

MINTZBERG, Henry (1989): Mintzberg on Management: In our strange world of organizations. Free Press. New York.

PETERS, Tom (2007): Re-imagine. Spitzenleistungen in chaotischen Zeiten. Gabal Management Verlag. Offenbach.

PETERS, Tom/WATERMAN (1988), In Search of Excellence: Lessons from Americas Best Run Companies: Lessons
from America's Best-Run Companies. Time Warner International.

SCHWANINGER, Markus (1994): Managementsysteme. St. Galler Management-Konzept Band 4. Campus Verlag.
Frankfurt/New York.

SEGHEZZI, Hans Dieter (2007): Integriertes Qualitätsmanagement. Der St. Galler Ansatz (3. Aufl.). Carl Hanser
Verlag. München.

WUNDERER, Rolf (1997): Führung und Zusammenarbeit. Beiträge zu einer unternehmerischen Führungslehre (2.
Aufl.). Schäfer-Pöschel Verlag. Stuttgart.


Contact

startup euregio Management GmbH
Stefan Hagen
Rheinstrasse 26-27
6890 Lustenau
AUSTRIA

Phone: +43 (0)5577 87118
Web: www.startupeuregio.com
e-Mail: hagen@startupeuregio.com

Free Project Management Know-How (in German):
www.PM-Handbuch.com
www.PM-Blog.com


IPPM - The Integrated Process and Project Management Organization

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