P2M - THE JAPANESE VERSION OF COMPLEX PROJECT MANAGEMENT FOR ENTERPRISE INNOVATION IN TURBULENT ENVIRONMENT

SHIGENOBU OHARA (Chiba Institute of Technology) 1. A TRI-LEMMA MISSING LINK Project management has been widely used in research, engineering and construction of artificial super-structures. After 90s, IT software gave it a way to expanded opportunity for its effective uses. Today, challenges are being triggered to apply it to the methodology for enterprise innovation. If challenged to the topics, the context embraces philosophy of multi dimensional values and peoples jump into a jungle multiple purposes. P2M gave a consistent way to labyrinth by two Ps concepts of project and program to standard guidebook developed in Japan. [1,2, Ohara 2001,] Complexity is an accent for the area, which needs to deal with demystifying context[3, H.Tasaka 1997 4, Sherman and Schultz,1998,] hidden behind idea holders. Ideas spring out every layers from the top to the bottom in organizations. The clearer the idea is explainable, more adaptable chances exist for its acceptance to bear the fruits. However, if it is unique enough beyond the level of conventional thinking, it is most likely that precious idea is hardly utilized. Everybody agrees that idea is a mother of innovation, but resistance is also strong in reality. What is critical in business lies in opening the new way of thinking to pick up shining ideas linking to value creation. The front edge idea shall be noted, supported, and followed in any form or by any chance in the organization to put that creativity to business value. Asimo a Honda walking robot had been a informal hidden team incubated by a person who noted its future market value. Analogy comes something like jewelers who never overlook precious stones in the soil to convert it to valuable outcome. A set of complexity, value and resistance is a tri-lemma missing link for building new framework of P2M. The more complex issue is in context, the more value contains with perils to overcome, and the less people could understand to be resistant. Despite puzzle of the iron triangle, reference of solution formula has been observed in Japan.

Complexity

Value
FIGURE1, TRI-LEMMA MISSING LINK

@Resistance

2. WHAT IS THE ESSENCE OF P2M ? COMPLEXITY TO HYBRID PROJECT MODELS The essence of P2M is focused on profiling idea of "complexity to implementation" in business field. The guidebook consists of entry, program management, project management, and eleven discrete types of management Highlighted by the core philosophy of "solution to complex issue" demanded in Japan, it is penetrating widely in academy, government, community, and business society. Any project or program starts from mission and not from goals or objectives. Mission is full of ambiguity, multiplicity, and interfaces to cross-disciplinary areas. Kenichi Ohmae, a management consultant says, New business springs out of crossing spaces among heterogeneity. To get rid of ambiguity, mission shall be written in clear plural scenarios from which context, objectives, and goals are illustrated in semantic network relationship. Some general tools of KJ, ISM, Dematel, Kepner & Trigoe, and cognitive frame method are availed [5,Kawakita, 1970, 6,Saaty1979, 7,Warfield 1977,8, Minsky1886], but stronger one shall be developed undoubtedly. Subsequently in general or simultaneously, strategy is undergone to select the best out of scenario options. Needless to reiterate, the selected scenario must be essentially readable, highly feasible, and potentially innovative. In case the scenario is evolved to realization, major components of projects are explored and identified. A group of these inter-linked projects shall be depicted in program lifecycle. Putting scenario to practice, program architecture is indispensable in designing structural, functional, and operative connectivity configuration. "The word of architecture is originated from building design, and its framework is applied to information engineering.[9, Scheer 1997]. In the complex hybrid projects, the project modeling is imperative to identify and put them in order,[10,Shibata, 1995, 11, 8, Bernus, Rathwell,]before phased planning is implemented. In the turbulent environment today, which needs flexibility to changes, quick decision support system is mandatory. At least, peoples have to recognize distinction by deliverable types to classify scheme, system and service project models.[ Ohara, 2001 refer to 1,2]

Complex Issue

Scenarios

Program

Project Model

Profiling mission

Strategic decision

Apply architecture

FIGURE 2, P2M THINKING FROM COMPLEX ISSUE TO PROJECT MODELS 3. HUMAN TALENTS AND PLATFORM The rationality of this idea lies in looking into vital views for human talents and changes. In long years, it has debated that leadership of project manager and teamwork of its members are keys for success or failure. The truth is solid today, but its meaning is getting heavier as project work expands cross boarders. Everybody at projects works by exchanging messages, sharing jobs, but by different worlds of geographical and professional lifestyle. Conflicts rise in routine more frequently by biases of cultural "context". Any conflicts if left unsolved aside cast dark shadows of disharmony and morale drop over the project process. "Platform" is a new way to conflict solution and attracting base for professional experts on the other hand. In Japan, platform or Ba in Japanese [12, Itami and Nonaka 1998 ]has meant a specific place, where teamwork is highly encouraged and their wisdom is crystallized. A leader of the project team or Toryo a head of classic castle builders, knew its value for management. He coached a crew to implant a package of professional disciplines, terminology, and work-style. The strength of teamwork is originated in the spirit, habitudes and heritage piled in Japanese architecture history. The asset seems disappearing, but it is worth of reviving by a concept of platform management as outlined in figure 3. Today, network penetrates broadly in e-collaboration transforming society, community, business, and even projects. It facilitates speed of transactions and executions simultaneously. Nevertheless, the invisible asset of intellect is scarcely systematized. Platform is social and intelligent space specially designed for achieving specific mission. It helps to safeguard basic rights of safety, fairness, and equality for intelligent experts. The modern intellectual society has to warrant personal respect for interests, rewards, and a way of thinking without prejudices under minimum rules. It is really a key to dig out potentials by integrating talent, information, and knowledge on common space globally, mentally and digitally.

Context Platform Protocol Collaboration

Culture, Discipline Rules, Language Face to Face Space Virtual Space

TABLE 3, PLATFORM CONCEPT OF P2M 4. PROGRAM INTEGRATION MANAGEMENT As explained, it is now apparent that the success or failure of program depends on mission profiling, strategic decision, architecture, and platform of program. What is an issue of integration? An interpretation is a coordination and control of project process, in particular trade-off elements or changes across the entire project.[13,Duncan 1996] It hits the point in a single project, but expand the definition in complex project. For arriving at integration framework, it is yet deficient of relationship in systemic risk to changes and its impacts to valuation. Systemic risk involves paralysis of the basic philosophy and system. Valuation means the measurement of value and proactive maintenance. At the financial bubbles in Asia, the constructions of billion dollars projects were continued on going regardless of external changes, and virtually collapsed with huge piles of loss. If any program manager play a role of coordinating, redesigning, and reediting it by substitute of any of scheme, system and service projects models, the loss could be mitigated and minimized much smaller. What are lessons learned? Critical pitfalls of managing complex project are disconnection between project models, inflexible adaptation to drastic changes. If categorize and perceived by modular project package models, stop or go decision is more flexibly adapted in terms of program value perspective. Since nobody could predict discontinuity of environment, program shall be divided into connected models before phases to be substituted by options to changes. Today, real option tool offers a way to decision-makers. [14, Amram and Kulatilaka, 1999, 15, Taketomi and Ohara 2001]. In ordinary project, a project manager concentrates how to deliver product or service in time within the budget, and tends to be lacking of interests in happenings outside its boundary. So, their options are limited only at work level, and valuation is also constrained within framework of earned value indicators. However, coming to valuation of project owner, it explains a little, but not all. Owner, for example, has to mitigate risk and create program value in handling creativity, instability, emergency, and breadth of interfaces. His or her role- playing is something like piloting

jumbo aircraft in cockpit. Likewise in complex project, more value indicators are needed for efficiency for goals, process, stakeholders, and ill-defined issues across the industries. P2M adopted balanced score card [16, Kaplan and Norton 1996] for project valuation. Once again, it is worth to note a motherland that the core idea of project and program management is a value creation, and integration is the heaviest part of management framework. Dr. Lynn Crawford plays leadership role of standardization and global forum to clarify commonality and distinctions of guides of project management in the world. Her comments are encouraging and expressing the essence that P2M is potentially the most significant advance towards genuine integration, and it heralds a revival of intellectual depth to the field that has been in the process of codification of knowledge and practices. [17, Crawford 2002].

Profiling ideas to complex issue for scenarios Formulating strategic options for feasibility Create architecture of the best to hybrid projects Design platforms for open digital collaboration Build program life cycle and adapt to changes Install assessment system for program value
FIGURE 4, THE ESSENCE OF PROGRAM INTEGRATION MANAGEMENT IN P2M 5. EMERGENCE OF SUPER MANUFACTURING COMPANY Revolution is rising in manufacturing from small pioneers to giant enterprises. They renew and revive the old paradigm to service hybrid manufacturing by implanting zero base idea[18, Upton and Mcafee 1997]. It express unique philosophy, implies novel system, and provides quality services. In short, P2M style of enterprise innovation is overlapping the view, profile, strategy and architecture. P2M was actually designed on interview survey of top executives. The first impression was agreeable to Quinns theory that innovation is happening on interface between manufacturing and service [19, Quinn 1997]. Incidentally, the author was fortunate to follow it in Japan and Asian countries [20, Ohara 1999]. Lately, big survey was done by the third party incidentally. Quantity Research, a consulting company picked up 58 highest performers in terms of innovation, rapid growth and profitability among 2613 companies at stock market in 2002 . What attracts surprise is 40 % of the highest performers are clustered by service interface holding industries like IT software, entertainment, consultations, and education. It made a sharp contrast to hard oriented industry distribution like materials, construction and machinery industry. Here, super manufacturing company or SMC shall satisfy three basic requirements. Corporate vision is a front runner in the niche and growing domain. The complex project management is recognized and implemented partially or totally More than 50% of value is generated by intellectual service. Service is dealt digitally by IT Business id open globally If classified, SMC is similar to something like virtual factory or virtual corporation . Though uniform recipe does not exist, most of manufacturing companies had been networked internally and externally. Despite the advancement, more than 50% companies misguided that virtual factory means digital manufacturing. The example shows how P2M is important and penetrated. The threshold to SMC depends on paradigm change to value framework, by which operational viability could be warranted. Seinelectronics is a venturing company of LSI, but has no factory outsourcing its manufacturing to foundries in Korea and Taiwan. The product is broadly applicable, but highly customized and specific use like ASSP semi-conductors. Ibiden was a middle class producer of print circuit board in stiff competition. It applied complex project management to develop the advance multi-layer PCB than any competitors. Within a decade, sales turnover has doubled, and profit increased ten times. Emplas Company was a tiny company of producing plastic gear parts, but grew the nano-level precision gears, and optical electronics parts. Numerous stories of emerging SMC may be disclosed for readers interests if spaces could be permitted. The Internet can provide tool of instant connectivity and bilateral interaction to anyone in the world. Software is available to digitally design, outsource or produce any deliverables for specific purposes. Nevertheless, it is essential to note that contents are made of knowledge, know-how and ideas. Needless to say, the depth and viability of architecture rely largely on intellectual asset of wisdom, experience and know-how. Those who design enterprise innovation have to observe deliberately the framework how project value chain is linked and to what level the model contributes. Figure 5 shows simple smiling curve in blue color, which represents service hybrid manufacturing project value chain in networked knowledge economy, while the red curve of conventional manufacturing contrasts downward adversely to the blue.

Value
@ O P @@ W @@ U @@ S @@ Q @@0

Scheme Model Wisdom value

Service Model Know-how value

System Model
Manufacturing or assembly value

Upper stream

Middle stream

Down stream

FIGURE 5, PROJECT MODEL OF V ALUE POSITIONING 6. EXPERIMENTS OF P2M -WHAT ARE THE DRIVING MOTIV ATIONS OF LEARNING ? Panasonic of Matsushita is famous for its multi-national giant globally competing as producer of electric appliances, mobile phone, and electronic communication. The new CEO Mr. Nakamura envisioned corporate belief of destruction and creation. By destruction of classic paradigm, the company intends transition and transformation to adapt service hybrid manufacturing. P2M training course has been introduced three times at Matsushita, and provided for senior managers in expanded curriculum. In the light of more than 20 lectures experiences of SMC cases interpretation by P2M paradigm, the driving motivations are fairly increasing, and its learning incentives are classified into five level of economy rationales pointed by executives and four program advantages proposed by senior managers. These are summarized as follows: Motivations by executives. Rationale of open linkage economy Internet has been changing rules of competition like capital size, geological locations, and channels. SMC adapts flexibly by linkage in open economy. Rational of e-trade economy SMC is rebuilding value chain by converting physical to virtual process complying with rules of e-trade economy. Rationale of speed economy Time to market is a strategy to survive and grow. SMC succeeds to design and build agility by integrating CAE/CAD/CAM/CALS. Total- climate flexibility-Rationale of economy of scope SMC uses versatile package tools to make good use of services from concurrent engineering to enterprise resource planning to control interfaces expanding scope. SMC deploys flexible use of its creative competence at any climate. Innovative culture -Rationale of knowledge-based-economy SMC trains mindset and transform the culture innovative in knowledge-based-economy. Learning organization belongs to this type in which members knows a way of collaboration by constant manipulation of software and network. Motivations by senior managers Idea Generator type leadership A proactive entrepreneur breakthroughs to replace a heavy closed system by to a light digital system. Most of the manufacturing companies have a set of heavy line to develop, design, buy, and manufacture in a single organization connected by a jungle of delivery channels. Commitment is consistent in reform of value building reform. The idea generator type of leadership is a core of this innovation process and organizational competence. Networking capability for sophisticated products Networking capability is useful in the complex project management to achieve the shortest delivery cycle for developing sophisticated products in market. . Program job is increasing Complex mission profiling is more significant than the individual control by metrics. Intellectual jobs are increasing and occupy a large share in the program type of works like solution business, marketing planning, risky venturing, and/or research development.. Sophistication- value creation system by project Sophistication is the core pillar of value creation system. It is an engine of generating value that an ordinary firm can neither imitate nor fabricate the same. The mode of sophistication is derived of intellectual capital of leadership, management style, organizational capability and technology for which P2M delivers logical thinking with systematic knowledge.

7. CONCLUSION P2M is an innovative framework of program and project management developed by Japan. Most of modern problems involve with complexity for solutions, which needs profiling of the mission to be virtually hybrid themes. In order to achieve mission, program shall be formulated, and implemented in strategic fashion. In line of this thought, P2M coverage has been expanded to up and down stream, Rationality exists in the integration in the three types of such models as scheme, system and service backed by architecture level attributes. P2M has consistent value creation perspective in management. The contemporary methodologies are also included in the pictures to make the program viable. Penetration is increasing rapidly in government, community, university education and company training. 8. ACKNOWLEDGEMENTS The participation to IPMA Moscow Congress is invited by Professor Vladimir V oropajev the leader of the congress, and sponsored by PMCC. Project Management Certification Center. Deep appreciation is also extended to Professor Lynn Crawford and Professor Christophe Bredillet for precious comments on P2M and encouragement. The author deeply thanks their supports. 9. REFERENCE 1. Shigenobu Ohara Project Management and Japanese Qualification System Proceedings of IPMC 2001, A Key Note Speech at International Project Management Congress (IPMC 2001Tokyo) A summary pp6-7 with its full text of 16 pages in CD-R Proceedings November Tokyo 2001. The Program Management and P2M framework was written and edited by Ohara and P2Mof 400 pages was published by ENAA for the first time in November 2000 together with "interim translation" of 90 pages for participants to IPMC 2001 Tokyo. 2. Shigenobu Ohara, Summary Translation of Project and Program Translation for Enterprise Innovation Revision 1 issued on August edited and revised by PMCC Tokyo 2002. 3. Hiroshi Tasaka, Fukuzatukei no Keiei- Management to Complexity Issue Toyo Keizai, Tokyo 1997 4. Howard Sherman and Ron Schultz Open Boundaries-Creating business innovation through complexity pp2-38 Santa Fe Center for Emergent Strategy, Perseus Books Massachussettes 1999. Santa Fe researchers give suggestions to approaches of complexity issues to the field of business innovation. 5. Kawkita Jiro A heuristic Method of Abduction from Field Data( 8th International Congress of Anthropological and Ethnological Sciences in English), Japanese version "Hasso-ho" 6. T.L.Saaty The Anaalytic Hierachy Process, McGraw-Hill,1980, and A Scaling Method for Priorities in Hierachical Structures Journal of Mathematical Psychology 15, oo234-281, 1979 7. J.N.Warfield, Toward Interpretation of Complex Structural Models IEEE.SMC-4 No.5 pp405-417, 1974 "Crossing Theory and Hierachy Mapping" IEEE. SMC-7, No.7 505-523, 1977 8. Marvin Minsky The Society of Mind 1985 Simon &Schuster New York, Japanese Translation 1986 Sadanori Yokoyama and Syouji Yasuda" Corporate Architecture" Diamond Publishing, Tokyo 1992 9. August- Wilhelm ScheerARIS-Business Process Frameworks Springer-Verlag Berlin Heidelberg 1998. Japanese Translation in 1999 10. Takahiro Fujimoto, Akira Tateishi, e al.Business Architecture Yuuhikaku, Tokyo 2001 11. Yusaku Shibata, "A Framework for Business Renovation: toward an intellectual infrastructure for the extended enterprise" Chapter 6 pp88-101, in the book of"Modelling and Methodologies for Enterprise Integration listed in 9. 12. Peter Bernus and Laszlo Nemes Modelling and Methodologies for Enterprise Integration edited by November 1995. 13. Ikujiro Nonaka and Itami Dynamics of Ba Platform Toyo Kiezai Sinpo Sya 1998 14. William Duncan A Guide to the Project Management Body of Knowledge pp39, 1996 14,Martha Amram and Nalin Kulatilaka, Real Options Harvard Business Schools, Boston Massachussettes, 1999, Japanese version translated by Masayuki Ishihara et al and published by Toyo Keizai Shinpohsa in 2001. 15. Robert Kaplan and D.P .Norton TheBalanced Scorecard Harvard Business Press, Masachussettes Boston1996, 16. Tametsugu Taketomi and Shigenobu Ohara Project Uncertainty and Investment Assessment by Real Option MethodologyQuality Management Journal V 53. No.6 pp30-37 Nippon Kagaku Gijutu Renmei( Japan Science Federation)June 2002 ol 17. Lynn Drawford World PM Trends and the Position of P2M in the Global Community at Project Management Workshop held in Osaka and Tokyo by ENAA, and PMCC 2002 18. Upton. D,. McAfee.A,.The Real Virtual Factory, pp 123-133 Harvard Business Review.,1996 19. Quinn.James Brian, Intelligent Enterprise Free Press, New York 1992 and Innovation Explosion. Free Press, New York pp89-92, 1997 20. Shigenobu Ohara Interface between Manufacturing and Service Asian Productivity Organizations.