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Improving Project Management capability in GlaxoSmithKline
GlaxoSmithKline Logo
 

Background

Leading pharmaceutical company GlaxoSmithKline (GSK) has a very clear mission: to improve the quality of human life by enabling people to do more, feel better and live longer. For GSK and its 100,000 employees around the world, turning this mission into a reality requires the management of many large-scale medicine discovery and development projects—projects that can typically run the course of a decade, include a broad range of business units and consume vast amounts of resources.

In 2006, GSK Research and Development (R&D) launched its iPlan initiative, a global programme sponsored at the highest levels of management. The initiative sought to improve people capabilities, processes, enabling technologies and support services to deliver integrated project and portfolio planning. Key aspects of the approach include—

  • Defining the planning process, responsibilities and key practices
  • Live piloting the new processes, practices, work breakdown structures and IT enablers within various medicine development teams to learn, refine and confirm the effectiveness of the changes
  • Extensive project management education and development
  • Selecting and validating an enterprise project management system
  • Integrating project and clinical development planning
  • A targeted communication strategy to engage and build momentum for the change programme

To make this ambitious initiative a success, and to roll it out effectively throughout such an expansive organisation, GSK leaders knew they would need help from experts in the delivery of large-scale performance improvement training in project management.

Strategy

One of the several performance improvement providers that GSK turned to for assistance with iPlan was ESI International. ESI, who has worked extensively with GSK since 2002, was chosen for this new initiative because of its impressive experience and its proven ability to meet tight deadlines and tailor its programmes and services to meet client needs.

Jacqui Alexander, Director of Project Management Learning & Change Management summarises the main reason for selecting ESI as follows: "Having forged a strong and collaborative relationship with ESI over a number of years, it was clear that ESI would be our ‘partner of choice’ in further extending our professional project management development programme."

After meeting with ESI representatives, it became clear that tailoring, cooperation and internal support would be keys to GSK’s strategy. In order to ensure relevance of content for its employees, GSK asked ESI to not only customise its courses to cover specific GSK topics, but to allow GSK experts to work along side the ESI instructors to co-teach the courses

Along with relevance, GSK leaders also understood that internal support was vital to the success of the iPlan programme. The company alreadyhad executive support; however, to ensure support among its employees throughout the organisation, GSK took to recruiting internal line champions from various business units. These champions were tasked with assuring that the course material was relevant and, equally as important, that it generated awareness and enthusiasm for the overall training initiative. To date, the company has 40 active line champion.

Tactics

GSK and ESI worked together to craft a number of courses for GSK employees, including an introductory course that defines the roles within a project team and how to be an effective team member, as well as a more advanced course that focuses on project planning for project team members. ESI also delivered courses on accountability and practical risk management, which helped participants understand the risks and opportunities that are inherent in drug development projects.

For the delivery of courses, GSK chose to take advantage primarily of ESI’s on-site training ability, which sent instructors directly to GSK locations to teach courses.

Results

With more than 1,000 GSK employees trained to date—and many more currently queuing up for courses—the company has managed to change individual behaviour, particularly regarding risk management. Project team members now use a common language in identifying the risks on their projects and approach risk management in a more consistent way, which is having an effect throughout the entire organisation. There is a clear mandate from senior management in place that all new projects must come with a detailed risk plan to be reviewed before that project is given the green light for large-scale development.

Speaking of the partnership with ESI, Karl Donn, Vice President of Global Project & Portfolio Management said, "This has been a great partnership between ESI and GSK. ESI brought both content knowledge and training skills to complement the knowledge in GSK R&D on how to apply the ESI capabilities to obtain maximum benefit. The joint efforts have allowed us to derive benefit immediately after the training programmes have been completed across the organisation."

This has been a great partnership between ESI and GSK. ESI brought both content knowledge and training skills to complement the knowledge in GSK R&D on how to apply the ESI capabilities to obtain maximum benefit. The joint efforts have allowed us to derive benefit immediately after the training programmes have been completed across the organisation.

Karl Donn
Vice President of Global Project & Portfolio Management
GlaxoSmithKline

Next Steps

GSK's commitment to performance improvement through training shows no signs of relenting anytime soon. The company has now begun working on the development of a center for project management resources for the entire R&D organisation. In addition, GSK leaders plan to continue reviewing employee feedback regarding individual training courses, measure progress against its many performance benchmarks and build a 2008 programme of training that will take project management to the next level of maturity within the R&D enterprise.

iPlan

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Several years ago, HP Services realised that to stay competitive in a relentlessly competitive marketplace, changes were in order. The companys business was becoming more project-focused, and HP Services recognised the need to standardise its project management practices.

HP Services implemented a performance improvement plan for its project managers worldwide. The objectives were clear: reduce the number of troubled projects, increase operating margins and provide for a flexible project workforce.

After a thorough needs analysis, HP determined that an outside training provider was needed to deliver the kind of comprehensive project management training required.

Standardising Projects Worldwide

Ron Kempf, Director, HP Services Project Management Competency Development and Certification, explains: As we reviewed projects, it became clear that we needed to train our project managers in fundamental project management practices, but we also needed to provide them with a pragmatic approach for executing projects. We wanted an approach supported by proven tools and techniques, so our project managers would have a common frame of reference, allowing them to form new teams or join existing teams anywhere in the world and immediately go to work.

HP Services selected ESI as its training vendor in 1996 because the company exceeded all the criteria HP Services requiredtraining based on the Project Management Body of Knowledge (PMBOK), public classes in addition to on-site delivery, highly qualified instructors and an international reputation.

We needed a training partner with established international experience, Kempf says. ESI told us of their experiences in international training, especially with respect to cultural considerations, and that was important to us. It was clear that ESI had the experience we needed. No one even came in a close second.

Designing a Comprehensive Programme

With HP Services, ESI developed an integrated programme that would meet the needs of the original 1,200 project managers through training in fundamental project management practices. (The number has since grown to more than 2,500 project managers in 160 countries and even more project support staff.)

Through the ESI programme, HP Services is able to offer its project managers a series of courses based on a standardised and universally accepted set of project management practices, the PMBOK. The programme leads to a Masters Certificate in Project Management from The George Washington University, ESIs academic partner for more than 20 years.

This well-rounded course of study prepares HP Services project managers for certification as Project Management Professionals (PMP®) by the Project Management Institute (PMI).

Being able to develop PMPs is critical to us, Kempf says. Increasingly, offering PMPs has become a key evaluation factor in the bid process, and now its essential to winning new business. HP Services had 12 PMPs in 1997; today, it has more than 1,000.

Case Study Overview

The Issues

- Lack of standardised PM practices on a local and global level

- Need to reduce number of troubled projects to ensure competitiveness

- Need to increase the operating margins on projects.

The ESI Solution

- Establish a large-scale integrated global programme of on-site and public courses

- Develop PMBOK aligned training to facilitate consistent practices in HP services

- Create solid career development paths leading to PMP® certification

The Result

- 70% projects now running at or better than budget

- PMPs have become a key differentiating factor to winning new business

- Project Managers are more business savvy to realising their profit and loss responsibilities

- Higher staff retention rate due to HP Services commitment to career development

ESI continues to expand its curriculum, so HP Services is now able to offer relevant advanced courses to accommodate the growing number of programme graduates, who require a higher level of training. We offer 250 course sessions annually around the world, and ESI's delivery capability and curriculum are major contributing factors to the success of the programme. ESI has brought significant expertise and guidance in helping us design, develop and deliver our project management training programme, Kempf says. Since ESI offers its training in public classroom sessions, onsite sessions and online, HP Services project managers all receive consistent content, tools and techniques.

Understanding the Business of Projects

Before we had ESI training in place, we conducted project reviews in business units around the world, and we found that in some cases, our project managers did not fully appreciate or implement risk management practices, change control or financial management. They understood they needed to bring a project in on time and they knew they had to satisfy the customer, but they didnt realise they had profit and loss responsibility for their projects. Yet they were on the front lines of managing our business, Kempf explains.

HP Services complements its project management training in areas such as risk and contract management with training in selected business competencies, such as conducting effective negotiations, delivering presentations and managing financial aspects of a project. Not only are we developing more effective project managers, we are strengthening their business competencies as well, Kempf says.

As a result of this two-pronged approach to training its project managers, HP Services has seen a marked increase in project management knowledge, skills and abilities being applied in its business units worldwide. ESIs training programme has helped HP Services reduce the number of troubled projects and heightened its project managers awareness of managing towards increased margins. Kempf says that this performance improvement initiative has resulted in 70% of their projects running at or better than budget (well above the industry average of 50%) and has increased margins by as much as 50% in some cases.

ESIs training earns high praise on post-course evaluations, Kempf says. A clear majority of course attendees indicate that the training is directly relevant to their work and assert that the knowledge and skills acquired were a contributing factor in their efficiency and productivity.

Another result of the training has been a new confidence in the managers abilities to perform complex project activities, Kempf says. Project managers are more open to taking over troubled or leaderless projects. Because our project managers are now using a consistent approach to project management, assuming control midstream of a troubled project is less of a problem than it might have been in the past, he says.

Other, less-tangible benefits have come about as part of the HP/ESI partnership. Our employees recognise and appreciate that they have significant career-development opportunities here and, as a result, they are highly motivated. HP Services commitment to career development has given us a long-term advantage because we save hundreds of thousands of dollars each year on training, recruitment and orientation.

Having well-trained project professionals on the job every day gives us a competitive edge in the marketplace, and ESI's project management training programme has helped us to achieve that.

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