Sunday, July 12, 2009

Crisis Management vs. Project Management Part 2

PM best practices demand that any projects should have well defined mission and objectives. In fact during project initiation stage the main task is to clarify and lay out clearly what the project wants to achieve in the end. For companies in the commercial sector, the objectives are usually tied to financial performance, customer satisfaction or company reputation. An example is a bank revamping its customer service center to improve customer experience, which in turn leads to higher customer satisfaction and hopefully more business. So revamping customer service center is a well-defined objective, and the mission is better customer satisfaction.

For public or non-profit organizations, a project’s mission is usually related to some social needs. For example a social enterprise organization in Hong Kong launches a project to help under-privileged youth establish their business that is self-sustainable. This is the project’s mission. The objective of the project may be to launch a barber shop or a car maintenance service. Regardless of what it is, it has to be defined clearly in the beginning.

To handle a crisis, however, the key objectives may not be always well defined, though its mission is clear. Take the recent H1N1 pandemic as an example. The mission is quite simple – To minimize its impact to public health. The objectives and their implied course of action may change from time to time. In Hong Kong, for instance, the original objective was to prevent H1N1 from coming into the city. With this objective came those high-handed strategies like locking up a hotel for 7 days, or mandatory isolation for patients who were tested positive for the flu. Later when signs showed that the flu was spreading domestically, the objective shifted to ensuring sufficient clinical facilities for treating patients, and preventing massive outbreak among the most vulnerable groups such as young students. This demonstrates the elusive nature of a crisis. A crisis is simply too complicated for any crisis team to define clear objectives in the very beginning.

The next major differences between managing a project and a crisis is the tradeoffs among key constraints, namely, scope, schedule, cost, risk, resources and quality. For projects, best practices dictate that a balance should be achieved among them. It may depend on project stakeholders but few would tell a project manager “you have to meet the original schedule at all cost.” Some projects may favour on-time delivery, some on the exact features and functions to be delivered, and some on controlling cost budget. But the job of a project manager is really to balance these constraints so that the objectives of the project can be met, to the satisfaction of customers and stakeholders.

On the other hand, the key mission of tackling a crisis has to be accomplished regardless of costs or resources involved. Think about how the Obama government dealt with the bank crisis last year, the Hong Kong government currently handles H1N1, you begin the understand what we mean here. A crisis simply has to be resolved within a particular time frame, usually at the expenses of cost, resources and risk.

To be continued...

Copyright © 2009 Knowledge Century Limited.

Sunday, July 5, 2009

Crisis Management vs. Project Management

Due to my recent involvement with the medical community in Hong Kong, I had the chance to speak to clinical and nursing staff of several hospitals. One frequent question raised during those occasions is whether project management skills can be applied to crisis situation, such as that they are facing right now in the form of H1N1.

My short answer is no. It is true crisis management is closer to project management than to operation management, and some attributes of a good project manager are directly applicable to the situation of a crisis. However there are some characteristics of a crisis that are substantially different from those of a project.

Let’s look at the following table:

Crisis

Project

Operation

Unique mission but key objectives may change

Unique and well defined mission and objectives

Well defined objectives that are slow changing, if at all

Accomplish key objectives at all costs

Trade-off among scope, cost, time, quality & risk

Cost is usually the no. 1 objective

Dynamic team structure and resources

Heterogeneous & well defined team structure

Homogeneous and steady team

No definite end date – sometimes fluid schedule

Definite start and end dates – well defined time schedule

Ongoing with no specific end date


A lot have been said about the differences between project and operation so we are not going to repeat here. Let’s just focus on crisis management and project management.

To be continued...

Copyright © 2009 Knowledge Century Limited.