Summary

Mastering Mega-Projects: Practical Insights from Seasoned Project Leaders in Finance

In this episode, we delve into the world of large-scale project management with two seasoned project leaders, Walter Kosak and Franz Gutmann. They share their experiences from a major core banking system project (dubbed "Chor") at a leading Austrian bank, offering valuable lessons for project management leaders in the financial sector.

Setting the Stage: The Chor Project

Walter Kosak, the project lead for Chor, describes it as a highly strategic project with direct access to top management. The goal was to replace an aging core banking system that had reached the end of its life. The project involved a team of 80-90 people at its peak and an estimated 200 person-years of effort, with a budget of approximately 190 million Schilling (equivalent to a similar amount in Euros today).

Franz Gutmann served as the Project Office Manager, playing a crucial role in supporting the project lead and ensuring smooth operations.

From Autodidacts to Project Leaders: A Journey of Experience

Both Walter and Franz took unconventional paths to project management. Walter, with a background in informatics, learned project management on the job. He emphasizes that the organization functioned project-wise even before formally adopting project management methodologies. Franz, initially trained as a shoemaker and then working in surgery, transitioned to IT and discovered a natural aptitude for programming and process management.

Walter sought formal project management training before taking on the Chor project, but his request was initially denied. This highlights a key takeaway: project management is often learned through experience and practical application, not just theoretical knowledge.

Key Success Factors: Leadership, Communication, and Teamwork

The success of the Chor project can be attributed to several factors:

• Strong Leadership: Walter's leadership style, characterized by a calm demeanor and a focus on collaboration, fostered a positive and productive team environment.
• Effective Communication: Open communication channels and regular team meetings ensured that everyone was aligned and informed. Franz's role in managing communication and facilitating decision-making was critical.
• Dedicated Project Office: The Project Office provided essential administrative support, freeing up the project lead to focus on strategic issues.
• Supportive Sponsor: A strong project sponsor at the executive level championed the project's goals and secured the necessary resources.

The Sponsor's Role: Vision, Funding, and Empowerment

Walter emphasizes the importance of a project sponsor who stands behind the project lead's requirements, even when they don't fully understand the technical details. A good sponsor provides:

• Vision: A clear articulation of the project's goals and objectives.
• Funding: Securing the necessary financial resources to support the project.
• Empowerment: Granting the project lead the authority to make decisions and drive progress.
• Protection: Shielding the project team from interference from other parts of the organization.
• Decision-Making: Facilitating timely decisions to keep the project on track.

The Power of a Dedicated Project Office

Franz's role as the Project Office Manager highlights the value of a dedicated project office. He was responsible for:

• Managing steering committee meetings
• Creating presentations for stakeholders
• Maintaining project documentation
• Tracking progress and identifying potential issues
• Boosting team morale through social events

Franz estimates that the project management overhead, including his salary, the salaries of other project office staff, and the cost of team events, accounted for 10-15% of the total project budget. While this may seem like a significant investment, it was essential for ensuring the project's success.

The Human Element: Motivation and Team Building

Walter and Franz recognized the importance of fostering a positive and motivated team environment. They organized regular team breakfasts, social events, and even go-karting outings. These activities helped to build camaraderie, improve communication, and boost morale.

The Aftermath: A Missed Opportunity

Despite the project's success, the integration of the Chor team into the larger bank organization was not handled effectively. The new leadership dismantled the team and distributed its members across different departments. This was a missed opportunity to leverage the team's expertise and experience for future projects.

Lessons Learned for Project Management Leaders

The Chor project offers several valuable lessons for project management leaders in the financial sector:

• Embrace experience: Value practical experience over theoretical knowledge.
• Build strong teams: Foster a collaborative and supportive team environment.
• Communicate effectively: Keep stakeholders informed and aligned.
• Secure strong sponsorship: Obtain the support of a powerful executive sponsor.
• Invest in project management: Recognize the value of a dedicated project office.

Conclusion

The Chor project stands as a testament to the power of strong leadership, effective communication, and dedicated teamwork. By embracing these principles, project management leaders in the financial sector can increase their chances of success in delivering complex and challenging projects.