Projects and Operations
Projects and Operations are very unique pattern of activity that, when confused
with one another, can cause quite a bit complication with the management
of both the project and the operations. They have distinct requirements for
resources, require unique styles of management and have completely different
goals. Projects are constrained by time and bring about change. Operations are
ongoing efforts and suffer from changes that occur, frequently, to them.
This article is an examination of the descriptions, definitions, and
characteristics of each groups of functions with some conclusory
recommendations in order to avoid the worst fates of "projerations".
Project Management
Most approaches for project management define a project with terms such as:
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a series of related tasks,
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with a specific target or end status, and
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having specified start and completion dates.
Operations are frequently described in terms of business processes and business
activities or functions. Business functions are those sets of skills necessary
for successful functioning of the organization. They can be broken down into
business efforts that are frequently, but not always, experienced
exclusively within an functional organizational unit. For example, management
of human resources is partly held by the Human Resources Department.
Business processes describe how the organization adds value. They are caused by
outside interactions to the organization and conclude with the business
delivering something of value.
The two most common charts for these views are the org-chart and process
maps.
Operations Management
We can broadly say that all other activities are operations; incremental
improvement or upkeep activities. Three key indicators identify when a set of
activities is not a project (i.e. is related, instead, to operations) are:
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if the activities don't have a completion date, or
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if there is no commitment to move ahead, or
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if the group of activities does not have a measurable goal.
Projects are defined by their scope, the requirements they need to meet
and the resources required to attain these goals. They have a stakeholders,
milestones, a budget, deadlines, steering groups, and communication and change
plans.
They are initiated, planned, executed and finished. They add value for the
stakeholders, who may or may not be outside the organization.
The most common diagrams to help describe projects are: a
Gantt chart for resource allocation, and
PERT chart for critical path analysis.
Characteristics of Projects and Operations
Activities grouped to form Projects or Operations are easily identifiable as
each has its own set of characteristics. Generally speaking they are mutually
exclusive though this is not always the case. The table below outlines these in
a comparative manner so that, in the first instance, the distinction can be
made.
Operations
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Security and Predictability
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Continuous
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Deals with the Present
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Stable resources
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Evolutionary change
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Repetitive
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Equilibrium
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Roles
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Suffer change
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Pre-defined objectives
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Stability
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Efficiency
Projects
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Initiate change
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Unique
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Transient resources
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Revolutionary change
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Objective to be defined
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Effectiveness
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Deals with the Future
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Risk and Uncertainty
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Flexibility
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Goals
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Disequilibrium
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Finite
From the lists above, if a project is not actively seeking to initiate change
in operations, then it is, in effect, a set of operational activities;
improving the situation incrementally.
Operational activities do not, in general, cause disequilibrium. Operational
activities, on the other hand, are destabilized by projects rather than the
other way round. While there are plenty of examples of operations destabilizing
projects, this is due to a resistance to change rather than the initiation of
change.
There is, however, a link between the two. Successful projects need to have
this made explicit. Let's use "change" as an example. Projects are change
efforts. However, change management is part of an operational manager's
responsibility. Projects identify the change necessary to move operations
forward. Operational management then manage the introduction of those
changes into their domains so that the new operational practices are different
from those before the project.
Problems with mixing Projects and Operations:
If a project begins to have characteristics that resemble those of operations,
it is probably a good idea to bring it to an end. And ensure the handover in a
timely and professional manner.
Equally, if a project has within its plan elements that involve operations, it
is probably better to take them out. Otherwise there is a risk that operational
management falls to the
project manager.
So we need to be wary of "projects" that are:
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Uniquely repetitive,
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Continuously finite,
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Projecting the present into the future,
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Evolutionary rather than revolutionary,
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Are stable, efficient and role based, and
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Secure.
None of these bear the characteristics of a project. Rather they are a mixture
of both. They become "projerations", and are generally unsatisfying for
everyone working on them.
Overcoming the Mixing:
One way to overcome the mixing of projects and operations is to ensure that
operational activities are properly resourced. The absence of correct
operational resourcing often leads to projects being "loaded-up" with
operational tasks such as report generation, cube building, process mapping,
etc.
The people working on the projects know this and react, causing tension with
their operational activities.
The solution? Ensure that operational activities are correctly resourced. And,
as often as possible, don't move unresourced operational activities into
projects.
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