What CEOs must demand to compete and Collaborate in 2005: Unleashing the full power of Project Management in the Internet Age
AbstractThis paper is intended to provide chief executive officers (CEOs) and other senior executives with the understanding of what they must demand regarding project management within their organizations, today and in coming years, to compete and collaborate effectively within the realities of the Internet Age. It is also intended for use by project management professionals at all levels to communicatewith their senior managers and convey to them the direction that the development of the project management discipline should be headed. The need is explored to simultaneously compete and collaborate in response to the challenges posed by the phenomena of the Internet and World Wide Web, together with ways that are open to the CEO to unleash the full power of project management to satisfy thatneed. The important linkage is illustrated between the organization's mission, its business strategies, and the execution of those strategies through effective management of both the project portfolios and individual programs and projects. The underlying principles and practices of modern, integrated project management are presented in a manner that hopefully makes sense to CEOs and other seniorexecutives, and the performance level that can be demanded for each of these principles and practices is presented as bench marks for the CEO to measure against.
Challenges of the Internet
The advent of the Internet in recent years is posing serious challenges to industry, business and government. CEOs are recognizing the threats and opportunities of the Internet, as shown in Table 1. 1. 2. 3. 4.5. Changes in type and level of competition Impact of the Internet Industry consolidation Downward pressure on prices Skill shortages 41% 38% 37% 33% 32%
Table 1. CEOs of 506 Companies With Sales Over $5 Billion List Their Greatest Challenges for 2001  Most executives in business and government today have had some direct experience with the Internet and the World Wide Webóbut most of us stilldo not fully comprehend what these revolutionary developments really are and what their full impact on our world will be. Although we are learning something new every day about these unprecedented phenomena, a 1999 (prior to the dot com meltdown in 2000) survey of 600 top-ranking executives found that • 92% said the Internet will reshape the world marketplace by 2001 • 37% expected seriouscompetition from start-ups • 16% expected competition from their own customers
• 86% said the Internet would force significant changes in organizational structure. The evolution envisioned by some from our traditional vertically integrated companies to the "internetworked enterprise" is shown in Figure 1-1. The intermediate transitional organization form has been termed the "virtualcorporation", operating through an integrated network that connects the company employees, suppliers, distributors, retailers and customers. Prior to the advent of the Internet a number of companies (including, for example, Chrysler Corporation and Hewlett-Packard) developed their own "intranets" using electronic data interchange and client/server computing technologies. The Internet has now made at...