• Using Knowledge Management to Create Competitive Advantage and Measuring its Success
• Mumbai Meeting Calls for Project Management to be a Cornerstone to Nation Building
• Project Management Drove Global Expansion for China Oil and Gas Business

• PMI Australian Chapters Participate in Major Australian Defence Conference
• PMI Pune-Deccan India Chapter on Influencing Across Personality and Cultural Differences

• New 2008 PMI Component Award for Top Volunteer in Asia Pacific
• Coming in 2008: Two New Specialty Credentials for Project Risk Management and Project Scheduling

Using Knowledge Management to Create Competitive Advantage and Measuring its Success

Wisdom from PMI Global Congress 2007—Asia Pacific:

In the last issue of Asia Pacific e-link, we shared information from a presentation by Paul Ritchie, PMP, and Kenneth Jorgensen, CPM, PMP, on how Project Management Knowledge Management (PMKM) can turn information into knowledge. Find out how to use knowledge management to create competitive advantage and how SAP — a global business solutions company — measures PMKM’s success.

Use knowledge management to create competitive advantage. You can use what you know to change the way you do things. As you move away from traditional management principles, processes and practices, you can develop new ways to organise, lead and coordinate work activities.

One example of creating competitive advantage is by the use of knowledge management to change the balance between the “sense” to “nonsense” ratio within and between organisations.

• Increasing “uncommon sense” is to identify and create correct ideas and/or ways of doing things. This allows the business to move ahead of its competition.
  
  
• Decreasing “uncommon nonsense” is to reduce incorrect ideas and/or mistakes in how things are done. This reduction will allow the business to improve and also build on the advantage created by increasing “uncommon sense”.

Mr. Ritchie and Mr. Jorgensen presented on their experience of managing knowledge in SAP. They shared the illustration above at PMI's last Asia Pacific congress, to depict how business improved in SAP when the sense to nonsense ratio was changed using knowledge management.

Measuring PMKM Success
The ultimate measure of PMKM success is business impact, as opposed to simple production statistics like documents created.  In this case, SAP monitors customer satisfaction and project profitability.

• Customer satisfaction can be measured in the number of customer-focused success stories.
  
  
• Project profitability can be measured by combining the two metrics of project escalation costs and maturity levels. Reduced project cost is linked to maturity improvement in the projects. As projects improve, project costs go down and result in higher overall profits.

SAP has linked improved customer satisfaction and project profitability to its use of PMKM.

Download the full paper for details.

Paul Ritchie, PMP, head of Global Project Management Operations, SAP AG, can be contacted at paul.ritchie@sap.com.

Kenneth Jorgensen, CPM, PMP, director, Global Project Management Operations, SAP AG, can be reached at kenneth.jorgensen@sap.com.

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Mumbai Meeting Gathers Business and PMI Leaders
PMI CEO Calls Project Management a Cornerstone to Nation Building

In September, Team India, the informal coalition of PMI chapter leaders in the country, held a meeting with business executives in Mumbai that was attended by PMI CEO Gregory Balestrero and PMI Board of Directors Chair Linda Vella, PMP. They discussed the challenges to businesses in this rapidly growing nation, the challenges in project management, and how PMI can help.

Attending were representatives of Satyam Computer Services, Reliance, ABN Amro, Affinity, i2M, KPIT Cummins, Indian Institute of Technology and Welingkar Institute of Management. Most participants were from the information technology sector.

Mr. Balestrero said, “All of the leaders that I met helped me realise that project management in India is not only about productivity and profitability, but it is about nation building. Project management is one of the most critically needed professions in India to ensure that its future can be achieved … Project management in India is not merely an important profession; it is a cornerstone to building the future of a nation.”

Organisations in India are experiencing a lack of qualified project managers and a need to develop and retain project managers. Leaders see the need for increased focus on the benefits of project management.

Mr. Balestrero presented an overview of project management and how it is addressing global challenges. Prior to the meeting in Mumbai, he had been in New Delhi to introduce PMI to government and association officials there.

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Project Management Drove Global Expansion for China Oil and Gas Business

China National Oil and Gas Exploration and Development Corporation (CNODC), a subsidiary of China National Petroleum Corporation (CNPC), is in charge of the corporation’s overseas expansion and operation. According to Guo Chengzhu, Chief HSE Officer and Vice Chief Engineer, CNODC, “Entering the international market was a key business strategy for us and project management helped us get there.”

In order to expand into the international market, CNODC needs to ensure that its Health Safety and Environment Management System (HSEMS) is compliant with international standards.

Figure: China National Oil and Gas Exploration and Development Corporation’s Health Safety and Environment Management System Functioning Structure

In 2004, CNODC applied project management principles to establish its HSEMS that is built on the principles of being people oriented, putting safety and environment first, and that all accidents can be controlled or prevented with a good management system.

The project management pattern of "plan, do, check and action" is used to establish the key elements of the corporation’s HSEMS structure.

The HSEMS earned the ISO 14001 for Environmental Management, and the OHSAS 18001 Occupational Health and Safety Standard. These certifications gave CNODC entry into the international market. Now, CNODC has 69 overseas investment projects in 26 countries.

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PMI Australian Chapters Participate in Major Australian Defence Conference for the first time

PMI participated for the first time in Australia’s premier Defence and Industry Conference that was held on 21–24 August with over 1,800 attendees. The conference is organised by the Defence Material Organisation (DMO), which is responsible for defence procurement. The DMO will spend AU$100 billion on equipment and services in the next decade.

PMI arranged for the appearance of three conference speakers who presented on areas critical to defence: Scheduling, by Patrick Weaver, PMP; Earned Scheduling, by Walt Lipke; and Earned Value, by Wayne Abba.

From left; Patrick Weaver, PMP, conference speaker; Walt Lipke, conference speaker; Rina Brettell, PMI Canberra, Australia Chapter, events director; Steven Mitchell, PMP, PMI Canberra, Australia Chapter president; and Kym Henderson, PMI Sydney, Australia Chapter, past education director

Led by the PMI Canberra, Australia Chapter, this collaborative effort involved the PMI Australian Chapters, PMI and the PMI Asia Pacific Service Centre.

Participants gave PMI positive feedback for bringing an international perspective to the event.

Steven Mitchell, PMP
Chapter President
PMI Canberra, Australia Chapter

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PMI Pune-Deccan India Chapter on Influencing Across Personality and Cultural Differences

Dr. Viola spoke to PMI Pune-Deccan chapter on influencing across personality and cultural differences.

Mary Adams Viola, PhD, associate director of the Gordon Institute, Tufts University, Massachusetts, USA, presented on Influencing Across Personality and Cultural Differences at the PMI Pune-Deccan Chapter annual general meeting and monthly seminar on 11 August.

Dr. Viola spoke about influence tactics using the Cohen-Bradford Influence without Authority Model, which is based on the Law of Reciprocity. According to this law, you will usually get what you want if you are able to give others what they need.

Highlights of her remarks to the audience:

You are holding on to a resource if you have what others need. You can influence others because you have what they value. If you understand someone’s personality and cultural background, you can identify what is important to him or her, and offer what she or he needs. When you do so, you are influencing across personality and cultural differences.

Shantanu Bhamare, PMP
Chapter Marketing & Communications Director
PMI Pune-Deccan India Chapter

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New 2008 PMI Component Award for Top Volunteer in Asia Pacific

The PMI Regional Component Award for Volunteer of the Year in Asia Pacific honours dedicated volunteers who are the core of PMI.

The award recognises volunteers who undertake key responsibilities in their components—chapters, specific interest groups and/or colleges—in order to provide value to fellow PMI members and practitioners.

The award recipient is the volunteer who best demonstrates exemplary commitment and leadership in supporting the programmes, projects and activities executed by his or her component. Volunteers help write standards, advise staff and take on many responsibilities that make them essential to PMI.

Component leaders and members are invited to nominate their most deserving volunteer. Self-nomination is not permitted. Application closes by Monday, 31 December 2007.

For additional information on this award and application process, please e-mail Anne Jenemann, PMI component & community relations coordinator. Your region’s component mentor and Tarnbir Kaur, Asia Pacific component relations liaison are also available for assistance.

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Coming in 2008: Two New Specialty Credentials for Project Risk Management and Project Scheduling

PMI’s family of credentials continues to grow. Following the launch of the Program Management Professional (PgMP)^SM credential on 1 October, PMI will introduce two new specialty credentials — for project risk management and project scheduling, in 2008.

Introduction of the specialty credentials is a response to market demand for more specialised roles on project teams. Projects are getting bigger, more complex and more globally diverse, and risk management and scheduling are two key aspects of projects.

In developing the credentials, PMI worked with project risk management and project scheduling experts in order to reach a consensus on eligibility requirements and exam specification for each credential.

Please watch PMI’s publications and PMI.org for more information about these new specialty credentials. For questions or inquiries, please contact customercare@pmi.org.

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