A Hybrid Methodology combining the speed and flexibility of Agile and the structure of Waterfall is feasible and practical. I base my opinion on the research I have done. I recently presented a Webinar to Project Management Institute (PMI) members on how to merge Agile and Waterfall to achieve a Hybrid methodology. The focus of this paper is to address the greatest risk to a company in implementing the new methodology i.e., acceptance of it. I addressed how to accomplish the merger to achieve a Hybrid method in a paper I wrote and posted on LinkedIn in May.
Definitions
Before I get into the major subject of company acceptance of the new method, I need to define some key project management terms that are key to explaining the Hybrid risk.
Work Breakdown Structure (WBS)
Breaks work (scope) into smaller tasks to make the work more manageable and approachable. It singlehandedly integrates scope, cost and schedule baselines ensuring that project plans are in alignment. It is the most important project document.
Integrated Master Schedule (IMS)
An Integrated Master Schedule is a way of showing the tasks in a project. The reason for having an integrated master schedule is so that everyone on the team has one single, consistent tool for executing the work and seeing progress against the schedule.
Performance Measurement Baseline (PMB)
Tracking the progress and performance of a project is essential to a successful project. This is done by establishing a performance measurement baseline (PMB) that provides the yardstick for the performance of a project and its components. A PMB is also required for Earned Value Management (EVM).
Earned Value Management (EVMS)
Earned Value Management (EVM) is a project performance management methodology that integrates cost, schedule, technical scope, and risk to assess progress against the PMB. It is used to identify problems early providing maximum time to solve it. EVM can forecast cost and schedule at completion based on project data.
Objectives and Key Results (OKR)
OKRs originated at INTEL during the early 1980s. The OKRs framework brings into practice some of the essential elements missing from Agile Scrum. One of them is lack of measurable results. Scrum and OKRs complement each other. OKRs are how you track progress around measurable goals. An Objective is what is to be achieved which is usually the product the project is delivering. Key results define how you get to the objective. The OKR key results are specific, have a timeline, budget and yet are measurable and verifiable.
Examples Of Company Resistance
These comments came from PMI members. The comments provide evidence that companies (and probably many of them) have not implemented the basic project management processes some of which are defined above and therefore do not use them. In this case, implementing a Hybrid methodology involves not only new concepts such as the OKR but also proven basic elements of project management. This situation will require a culture change to overcome company resistance to the new methodology.
Number 1
On many projects, my company bypasses the Work Breakdown Structure (WBS) and goes directly to the Integrated Master Schedule (IMS).
This approach dramatically increases the risk of missing tasks that will show up later in the project but there is no budget or schedule time for them resulting in an adverse impact to the project budget and schedule. For the Hybrid methodology to work, a WBS is essential. If your company refuses to accept this fact then how will they accept the Hybrid method?
Number 2
Finance in my company will not assign a unique charge number for each OKR.
For the Hybrid methodology to work, it is essential that a charge number be assigned to each OKR so finance can collect the actuals needed for Earned Value Management (EVM) If the company will not accept this concept, then the Hybrid methodology will not work.
Number 3
Please explain why only 1 cost type can be included in an OKR.
You do not want to mix cost types because each one has a different overhead mark up and the resulting cost numbers would be erroneous. This comment tells me his/her company does not use Earned Value Management (EVM). If they did, it would be known that only one cost type per WP or OKR).
How To Change a Company’s Culture to Reduce the Risk of Acceptance of the Hybrid Methodology
To explain what it will take to change the culture, I am going to share my story of cultural change I was involved in. The Hybrid method will require a similar process in my view.
I worked for a large defense company who wanted to implement Six Sigma into the company. Six Sigma is a set of techniques and tools for process improvement. It started with Motorola in the late 1980’s to improve production yields. Today company’s use it to improve every process in the company. It works.
The company hired a new CEO that had recently completed successful implementation of Six Sigma in another good size company. This meant, the CEO had culture change experience, believed in Six Sigma and believed in the process. The company had the right CEO but they made one big mistake. For two years they tried implementing Six Sigma using their standard roll out process for new systems. It did not work. The working level of the company made fun of it and did not accept it. The company then hired about 150 Six Sigma black belt experts from outside the company to help implement it. They started a level 1 and educated and trained employees at that level. One VP was not accepting the new process and had to be replaced. This is part of the cultural change. After level I, level 2 was next and then level 3 and so on until all employees had been education and trained on Six Sigma. The other essential step they took was to establish certification programs whereby each employee had to earn a certificate in Six Sigma as a specialist, expert, or black belt. It was mandatory for all employees. The company assigned you to a project, gave you the time off from your regular duties to enable you to get your certificate.
I was certified as a Six Sigma specialist. My project was the sheet metal shop. The current status is their yield was 60%. The vision was 90%. I spent 1 week in a conference room defining the problem and the action plan to reach the vision. It took 1 year to complete the project and the yield did rise to 90%. Six Sigma works.
It took 5 years and hundreds of millions of dollars to change the culture. It would have taken 3 years and less money to accomplish if the company did not spend 2 years with a false start. Today Six Sigma is a way of life. All employees accept it.
I think changing the culture to accept the new Hybrid methodology would follow a similar process.
Summary
Implementing a new Hybrid project management methodology into a company if done well is practical and feasible in my opinion. The benefit of it is delivering the product to the customer in a less costly, faster, more efficient, and higher quality manner. This paper describes an implementation process that will reduce the acceptance risk for the Hybrid methodology.
The biggest challenge to achieve this goal is changing the company culture to accept the new methodology. It is essential for the company to implement the basic project management processes, some of which have been defined in this paper, unless they already have done so and are using it. Implementing OKRs is probably new to most companies in which case educating employees and training them on how to use them will also be a critical step during the cultural change.
Like my company did with Six Sigma, companies implementing the Hybrid methodology should consider bring in outside experts. Expect a lot of resistance from employees at all levels. Keep in mind it will take 2-3 years (my estimate) for companies that currently use the basic project management process and longer for those company’s that do not to implement the Hybrid methodology. Also expect to spend hundreds of millions of dollars to make it successful.
BIO
Currently John Ayers is an author, writer, and consultant. He authored a book entitled Project Risk Management. It went on sale on Amazon in August 2019. He authored a second book entitled How to Get a Project Management Job: Future of Work. It is on sale on Amazon. The first is a text book that includes all of the technical information you will need to become a Project Manager (PM). The second book shows you how to get a PM job. Between the two, you have the secret sauce to succeed. There are links to both books on his website. https://projectriskmanagement.info/He has presented numerous Webinars on project risk management to PMI. He writes columns on project risk management for CERM (certified enterprise risk management). John also writes blogs for Association for Project Management (APM) in the UK. He has conducted a podcast on project risk management. John has published numerous papers on project risk management and project management on LinkedIn. John also hosts the Project Manager Coach club on clubhouse.com.
John earned a BS in Mechanical Engineering and MS in Engineering Management from Northeastern University. He has extensive experience with commercial and U.S. DOD companies. He is a member of the Project Management Institute (PMI. John has managed numerous large high technical development programs worth in excessive of $100M. He has extensive subcontract management experience domestically and foreign. John has held a number of positions over his career including: Director of Programs; Director of Operations; Program Manager; Project Engineer; Engineering Manager; and Design Engineer. He has experience with: design; manufacturing; test; integration; subcontract management; contracts; project management; risk management; and quality control. John is a certified six sigma specialist, and certified to level 2 Earned Value Management (EVM).
Go to his website above to find links to his books on Amazon and dozens of articles he has written on project and project risk management.