The requirement of innovation on projects is influenced by the nature of the project. Some projects are chartered to develop a solution to a problem, and innovation is a central ingredient of project success. A project to develop a vaccine in response to a recent flu outbreak is an example of a project where innovation is important to achieving the purpose of the project.
Innovation is also important to developing methods of lowering costs or shortening the schedule. Traditional project management thinking provides a trade-off between cost, quality, and schedule. A project sponsor can typically shorten the project schedule with an investment of more money or a lowering of quality. Finding innovative solutions can sometimes lower costs while also saving time and maintaining the quality.
Innovation on a Steel Plant Project
On a project to design and build a plant to make steel using new technology, the project leadership was committed to generating cost savings on the project that would allow needed technical modifications later on during the project. The project was in the early design phase, and the project leadership established a goal for generating $1 million in cost saving suggestions. The goal was established in early fall, and the project manager declared that he would swim the lake on the day of the project review in February if the project met its goal.
A process was established to track cost saving ideas using highly visible green paper for documenting ideas, and a chart was placed on the project communication wall recognizing people and teams that submitted ideas. Each team was allocated a specific cost savings goal, and a team lunch was provided when the goals were met. The project manager created a balance between the message that this is a serious goal and that the project will have some fun with the process.
On one occasion, the project manager talked with the electrical engineering lead to understand why no suggestions were emerging from the electrical design team. The electrical design team was struggling to maintain the project schedule and did not have time to focus on project contests. The project manager emphasized that the project had several goals, and generating the cost savings for the client was an important project goal.
The electrical engineering lead gathered some senior electrical engineers into a small conference room, and for the next three hours, this impromptu team reviewed electrical drawings and concepts and began to generate ideas on how to accomplish the design specifications and cut costs. The electrical engineering lead maintained a flip chart in the front of the conference room, and as soon as the team found enough savings to meet the electrical target, the team disbanded and went back to working on the electrical design.
The team exceeded the goal prior to the February project review. The project manager swam the lake during an enjoyable project celebration.
Innovation is a creative process that requires both fun and focus. Fun reduces the amount of stress on the project. Stress is a biological reaction to perceived threats. Stress, at appropriate levels, can make the work environment interesting and even challenging. Many people working on projects enjoy a high-stress, exciting environment. When the stress level is too high, the biological reaction increases blood flow to the emotional parts of the brain and decreases the blood flow to the creative parts of the brain, making creative problem solving more difficult. Project managers recognize the benefits of balancing the stress level on the project with the need to create an atmosphere that enables creative thought.
Stress Managed on Steel Project
The electrical lead engineer on the steel project was able to create the environment for the electrical team to focus on the electrical design and explore alternative designs that could generate cost savings. The electrical lead also saw the investment in creating cost savings as an addition to the job. The electrical team stopped to contribute to the project goal and went back to the design work once the electrical cost-saving target was met.
Exploring opportunities to create savings takes an investment of time and energy, and on a time-sensitive project, the project manager must create the motivation and the opportunity for creative thinking.
KEY TAKEAWAYS
- Project culture is developed by communicating priority, status, and the alignment of official and operational rules. It is enforced through use of symbols, storytelling, rituals, rewards or punishments, and taboos.
- Differences in culture between stakeholders can affect communications, negotiations, and decision making.
- Innovation can be the main focus of the project, or it can be used to achieve improvement in goals that are usually mutually exclusive, such as lowering costs and shortening schedule.
EXERCISES
- The project is developed by communicating what is important, communicating what gives status, and aligning operational and official rules.
- How can innovation achieve improvement in goals?
Internalize your learning experience by preparing to discuss the following.
Describe a team project with which you are familiar where the objective was to find an innovative solution. What was the level of stress and how was it managed to support an innovative atmosphere?
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