Introduction | Different Strokes for Different Folks
Ad Hoc versus Systematic Project Categorization 
Proposed Matrix for Systematic Categorization of Projects | PART 2

Proposed Matrix for Systematic Categorization of Projects

One useful and practical way to initiate such a systematic approach is to construct a two dimensional matrix consisting of the purposes on one axis and the methods (based on specific categorization criteria) on the other axis. Figure 3 illustrates such a matrix. In developing this matrix it is proposed that the purposes be refined and prioritized, while at the same time examining various categorization methods (project characteristics and attributes to be used to define the categories.) Those methods that appear to be the most useful for the highest priority purposes would then be given more rigorous examination and systematic design.

Figure 3: Purposes/methods matrix for project categorization (draft illustration)

Explanation of the Project Categorization Matrix

The sample matrix shown in Figure 1 displays, on the vertical axis, a suggested list of organizational divisions of project categorization (in all-caps) followed by corresponding uses for each. Potential methods for doing so are shown on the horizontal scale, with an "X" to show whether or not the method is applicable.

The uses of the various organizational divisions are further explained below, together with indications of the potential benefits to be derived.

Strategic Project Management: The most effective method of categorizing projects for these strategic management purposes will not be the same as the best categorization method for operational project management purposes. These strategic purposes include:

• Project selection: Determining which potential projects are to be funded and executed.
• Prioritize selected projects: Determining the relative importance of selected projects to assist in allocating scarce resources.
• Define Portfolios: Determining the most effective way of grouping projects within specifically defined project portfolios.
• Manage project portfolios: Designing, implementing, and operating the project portfolio management process of the organization.
• Allocate resources to portfolios and projects within portfolios: Deciding the best deployment of money and other limited resources across all project portfolios and among the projects within each portfolio.
• Other: No doubt other strategic PM uses can be identified.

Operational Project Management: This area of use focuses on the specific practices, systems and methods of authorizing, planning, and controlling projects and multi-project programs. The method used for categorizing projects for these purposes will no doubt be very different from those used for strategic and other purposes. These operational PM purposes include:

• Select/assign project managers: Matching the background and experience of available project managers with specific projects is greatly facilitated when the projects are appropriately categorized.
• Design/select best project life-span models: Determining which of the many currently used project life-span models is best for each project demands that each project must be identified within a defined project category.
• Select/improve project planning, scheduling, executing, and controlling methods: The 'best practice' for each of these basic PM functions varies considerably for different project categories.
• Select/develop PM software applications: The strengths and weaknesses of currently available PM software application packages will vary according to the specific project category. One package that is very strong in the procurement area, important to the 'facilities design/procure/construct' category, may not be very useful to a project in the 'software new product development' category, for example.
• Build knowledge base of best practices: As indicated above, what is 'best practice' within one project category is not necessarily the 'best practice' in another category.
• Improve risk management methods: At a general level risk management is very much the same across all project categories. However, as one moves into the details significant differences in the sources of risk and methods for mitigating them emerge. The greatest improvements will be made in these detailed areas of risk management.
• Evaluate organizational PM maturity: It is obvious from an examination of the PM literature that there are great differences in the basic maturity of the PM discipline itself when one compares one basic project category with another. The maturity of any organization will likewise vary considerably between one category and another. To assign an overall maturity rating to any organization without specifying which project category is involved has little practical significance. Current research in this area includes a test being conducted in Brazil (a country of 180 million people with significant high technology industries and 17 PMI chapters) of the Prado/MMGP maturity model (see http://www.indg.com.br/projetos/maturidade.asp - in Portuguese) using the category list shown later in the table in Figure 9. See http://www.maturityresearch.com/# for details of this research. Information on the largest chapter in Sao Paulo can be obtained at http://www.pmisp.org.br/home.asp.
• Link success and failure factors: The factors that are important to success or failure in one project category are, in many cases, very different from those in another project category.
• Select tools and approach: The PM 'toolbox' is very large and varied. No-one will try to apply each and every PM tool, technique, 'best practice,' method, or system to each and every project for which they hold responsibility. An effective method for categorizing projects, and then classifying them within those categories, will be of great value in deciding which tools and techniques to apply to which projects.
• Other: Additional purposes and uses of effective project categorization can surely be identified.

Project Management Education and Training: PM education and training is a very big business throughout the world. However, many of the courses and programs are ineffective in actually developing skilled project managers for specific types or categories of projects. Use of practical project categorization methods in this area include:

• Improve/focus educational and training courses: It is obvious that, if the arguments given above are valid, more specific educational and training courses for defined project categories will result in the wider use of 'best practices' developed for those categories.
• Develop specialized case studies: Case studies related to each of the agreed project categories will be more effective in the focused educational and training courses and programs.
• Organize speaker tracks at congresses: One of the major problems for participants in large congresses on PM is how to choose which speaker track to attend. With tracks focused on specific project categories, this problem will be reduced significantly.
• Other: Further investigation will assuredly uncover other important purposes related to PM education and training.

People Development In Project Management: Some of the uses for systematic definition of project categories in this area include:

• Develop specialized certification of project managers: The most popular current PM certification programs (PMI and IPMA) purport to certify individuals in some aspects of PM without regard for any specific project categories.
• Develop specialized certification of PM support positions: Certification of project estimators and schedulers, as examples, for large engineering design and construction projects will require proof of very different knowledge, skills and capabilities than the equivalent support positions in research and development, new product development, or software development projects.
• Develop PM career paths for individuals: Career planning and development of PM career paths differ widely for many of the basic project categories that can be identified.
• Other: Certainly there will be other purposes and uses related to people development of a systematic definition of project categories.

Other Uses: Beyond strategic PM, operational PM, PM education and training, and people development in PM, other purposes and uses will emerge for various methods of categorizing projects and programs.

Observations

Each organizational division will benefit from examining the various purposes and uses that are important to them, and determining which purposes are the most important for their strategic growth. Then they can determine which of the several methods of categorization make the most sense within their political, business and economic environment.

However, rather than elaborating and making the list of purposes and uses longer and more complex, it is recommended that efforts be directed to consolidating and simplifying them as much as possible.

Part 2

In Part 2 of this paper, I will discuss Project Categorization Methods, Multi-dimensional Classification of Projects, and Classifying Projects within Categories and Sub-Categories.

Ad Hoc versus Systematic Project Categorization

PART 2

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