A Custom Project Management Roadmap for the New Normal
in Manufacturing and Distribution
By Erin Koss,
CPA is an Andersen Business Consulting Alumni (1993-1999),
and CEO of Syte Consulting Group, Inc.
Scaling
up is hard without a project engine in place. Despite funding and ambition,
many manufacturing and distribution leaders hit hurdles when they’re trying to
transform strategy into reality. Gaps in expertise, inadequate systems or
unclear roles could put the brakes on even your most well-intended growth
plans.
Make
no mistake, all growth initiatives are projects.
With
the right project coordination model in place, you can create momentum and turn
today’s objectives into tomorrow’s achievements. You can build structures and
standards that are tailored to accelerate the initiatives that matter most
while honoring your culture and evolving team.
This
guide — the first in our project management series — explores how to pave the
way for scalability by replacing ad hoc efforts with intentional project
performance.
The
Biggest Signs You Might Have a Project Management Problem
Do
you have a project management problem? How can you tell? Let’s first explore
common challenges that indicate a bigger project management issue might be
happening.
Here
are some signs that your manufacturing company needs better systems and
structures to manage projects:
● Your
teams seem to lack the right skills and staffing to successfully execute
projects. You
have key talent gaps in project management that cause delays and quality
issues.
● Customers
and leadership are frustrated with the outcomes of recent projects. Deadlines are missed,
scopes creep and budgets are overrun.
● Vendors
and partners are driving your projects more than your own teams. You feel like don’t have
enough visibility or control.
● Accountability
is unclear. You
don't have the right insights to understand who is responsible for different
aspects of project performance.
●
Cross-functional
alignment is lacking.
Silos mean execution is suffering, because your teams lack clarity on goals and
decision-making.
Perhaps
your project managers struggle because they have other competing priorities,
too. Relying on functional managers to lead projects might be causing some of
these problems.
If
these challenges sound familiar, you’re losing time, money and competitive
advantage. Without better project management, this lack of accountability and
coordination will continue holding you back.
The
good news is there are proven solutions available. Keep reading to get options
that can get your projects and teams aligned for success.
How
Large-Scale Transformation Projects Expose Project Management Weaknesses — and
What to Do About It
As manufacturing and
distribution companies pursue growth objectives and set the stage for scaling,
they often embark on large, transformational projects that inevitably highlight
challenges to seamless delivery. This can include problems with expertise,
capacity and systems. While project management issues can impact initiatives of
any size, manufacturers tend to see the effects amplified during these complex,
far-reaching undertakings.
At Syte, we often see
this in the context of ERP implementation projects. ERP is often the first
project of this size, complexity and magnitude that an organization has ever
taken on. Up to this point, manufacturing companies may have completed other
large capital projects, but those tend to be fairly isolated to a single
department. In contrast, ERP implementations have a widespread,
cross-functional impact that exacerbates project management issues.
This
is exactly why we encourage manufacturing and distribution leaders to
proactively assess project management maturity early in the ERP
planning process. The complex nature of ERP implementations means your teams
are often stretched thin during deployment. But the project strain doesn't end
after you go live. You can face even more hurdles in the critical 3-6 month
period following deployment.
Here
are some common struggles we see after an ERP implementation — but these
equally apply to almost any transformational change project:
● Resource
constraints to tackle phase two items: The talent that guided your ERP deployment
gets pulled back into daily operations. Few can dedicate time to optimization
for you.
● Ongoing
triage and firefighting: Daily
disruptions make it hard for you to step back and optimize new ERP features.
Your teams get stuck in reactive mode.
● Knowledge
gaps around the new ERP within your ranks: Shortcuts were
taken during end-user training during the go-live
crunch. Your existing teams have limited ability to leverage new capabilities.
● Lack
of clarity around your post-go-live priorities: With competing demands,
what should your teams focus on first? Lack of planning creates confusion.
● Mission
creep with additional requests:
New questions and potential projects flood in from your business teams. But
without governance, your teams struggle to balance ERP stabilization with new
demands.
By
putting the right project management structures in place during and after a
large project like ERP implementation, you can avoid these pitfalls. A
dedicated team can drive ongoing adoption beyond the go-live for your
organization, and ensure that ROI targets
for the large ERP investment can be met sooner rather than later.
Project
Management Roles: Selecting Your Cast With Care
As
you’re creating the project management structure, you also need to think about
project management roles. You may face problems if you’re asking people
to take on project leadership roles they are not equipped for.
By
trying to turn subject matter experts or operations leads into project managers
without the proper capabilities or capacity, you set them up for frustration
and failure. It can also end up costing your company a lot more and delay
getting strategic initiatives over the finish line.
By
developing intentional project management structures and capacity, you ensure
roles match the capabilities needed to drive success. This lifts the burden
away from individual contributors who are in over their heads, while also
resolving systemic issues.
What
Is a PMO, and How Can It Help?
So
what’s the answer to these common project management problems in manufacturing
and distribution companies? The answer might surprise you, because it’s rarely
discussed in discussed in emerging and mid-sized manufacturing circles …
It’s
a project management organization (PMO).
A
PMO is a team that provides centralized oversight to coordinate and align
projects, resources and standards across an organization.
This
coordinating group has a broad mission to deliver clarity, oversight and
effectiveness across your strategic initiatives. A PMO can (and should) fully
embody your culture, business objectives and operating model.
At
a high level, the key responsibilities of the PMO include:
● Defining and upholding
expectations for how projects and resources are managed.
● Curating documentation,
measurements and historical insights to ensure consistency.
●
Driving
on-time, in-budget delivery of your most critical initiatives.
Structurally,
a PMO usually consists of a director overseeing one or more project managers.
It also incorporates business analysts who handle translation between IT and
key user groups to keep development aligned with business objectives. Then
functional subject matter experts can be pulled in to support specific
initiatives as needed and on a finite basis, knowing they can return to their
day jobs when the project is complete.
How
Syte’s PMO Approach Is Different
When
you hear the term “PMO,” do you envision unnecessary bureaucracy and rigid
rules that feel out of step with your culture? If so, you’re not alone — that’s
a common reaction from manufacturing companies.
Syte
Consulting Group’s approach to building a PMO is fundamentally different.
We
emphasize flexibility rather than a one-size-fits-all template. We take the
time to understand your unique needs and build a structure tailored to your
business. With our “crawl, walk, run” philosophy, we help develop the right
foundation for managing critical initiatives and fueling growth at a pace that
serves you best.
This
includes matching roles with the right talent, mentoring emerging project
leaders and strategically leveraging outside experts. The goal is driving
efficiency, effectiveness and cost-savings through a more intentional look at
capabilities and capacity — not creating bureaucracy for its own sake.
With
Syte guiding your PMO setup and evolution, you gain a partner that truly
understands the needs of manufacturers. We have configurable frameworks that
help you scale and optimize operations through disciplined project delivery
that is tailored to how you work.
Project Management Models
Designed for Manufacturers and Distributors
A
PMO provides the systems and talent needed for executing complex initiatives
for manufacturing companies — and a PMO can absolutely use a flexible,
customized approach that allows you to optimize operations without compromising
culture.
If
concerns around staffing constraints, mismatched roles or lack of project
management standards resonate with you, the time is now to explore solutions.
With targeted PMO implementation services, Syte Consulting Group partners with
you long-term to alleviate growing pains. We provide objective insights around
resource gaps and have a network of project talent to propel your specific
growth journey.
Reach out to start a conversation around
assessing current project management practices and structuring roles for
scalability. Our team brings an approach shaped by decades of lessons
learned across manufacturing and distribution implementations. Discover what
intentional support looks like when it’s purpose-built for businesses like
yours.