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If Only Id Known
Over their careers, seasoned project practitioners gain hard-won insight. Now theyre
passing it on. We asked eight experienced
project practitioners, When you were starting out, what do you wish you had known?
By Jake Malooley
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JANUARY 2015 | VOLUME 29, NUMBER 1
PMNetwork
THE EDGE
6 Banking on Digitization
U.S. and European banks try to
meet demand for projects
bringing front and back offices
into the 21st century.
7 Turn on a Dime
Strong executive support and
governance drive next-gen
banking projects.
8 Ticket to Ride
Experts call for large-scale
projects to cure the chronic
overcrowding in London,
Englands train system.
12
10 Letting Go of GMO
As the U.S. appetite for nonGMO foods grows, product
teams race to keep it sated.
11 Heal Thyself
The U.S. government launches
an ambitious program to help
veterans get medical relief
through tiny chips.
24
12 Water Waves
A new water-use modeling
tool could be a boon for future
infrastructure projects.
20 Career Q&A
Foundational Strength
By Lindsay Scott
VOICES
16 Inside Track
Staying the PMO Course
Linda Honour, project
management office (PMO) lead,
technology and operations unit,
Allstate, Northbrook, Illinois,
USA
18 Project Toolkit
The Mentor Advantage
22 In the Trenches
Delivering Bad News
By Meredith Zehnder, PMP
26 In the Trenches
Crisis Mode
By Joan Landry, PMP
70 In the Trenches
Meeting with a Mission
By Antoine Gerschel and
Lawrence Polsky
12 1 Challenge, 3 Projects
Up, up and away
14 Metrics
Electronic health records are
rapidly becoming the
new norm.
72
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theEd
Banking on
Digitization
The future of banking is digital. Yet despite the rapidly growing demand for online products and services, many U.S. and European retail banks have struggled
to fund the projects necessary to modernize all front- and back-office operations.
Its not just about digitizing loan applications to speed up the approval process.
Transitioning from legacy systems at individual bank branches to one digital
system spanning the entire organization has proven especially difficult.
Across Europe, banks have digitized only 20 to 40 percent of their processes,
focusing mostly on basic customer transactions, according
to McKinsey. Ninety percent of European banks invest less
than 0.5 percent of annual spending on digital projects.
U.S. banks are even further behind, says Mike Baxter,
head, Americas financial services practice, Bain & Co., New
York, New York, USA. Asian banks are the furthest ahead,
followed by European banks, and the U.S. banks have been
the slowest to adapt, says Mr. Baxter. He attributes the slow
rate of digitization to factors including the recent financial
crisis, mergers and acquisitions across the industry, and
fears about the cost and complexity of projects.
Funding for digitization projects at retail banks is often
crowded out by back-office technology operations, which
account for roughly 45 percent of banks IT spending,
according to Bain. Banks that have recently grown through
a merger or acquisition, for example, must execute costly
projects to integrate new brick-and-mortar assets into the
existing technology infrastructure. Thats an expensive process, Mr. Baxter says.
Worldwide, just 5 percent to 10 percent of banks IT
spending is focused on deploying technology projects
Mike Baxter, Bain & Co.,
New York, New York, USA designed to change the way customers interact with their
bank. If banks want to stay relevant, thats got to change,
says Mr. Baxter: In the banks that are most advanced on
digital, the balance of IT resource allocation is radically shifting.
For example, Royal Bank of Scotland last June announced 1 billion in
digital technology investments in response to research forecasting that
Asian
banks are
the furthest
ahead,
followed by
European
banks, and
the U.S.
banks have
been the
slowest to
adapt.
5-10%
20-40%
Portion of processes European
banks have digitized
50%
ge
Capital Ones 360 Cafe in
San Francisco, California, USA
TURN ON A DIME
When Capital One was planning its R&D lab to
support innovative banking projects, the organization wanted a place where end users would
literally have a place at the table.
A two-story caf was built in San Francisco,
California, USA to act as a testing ground for
the projects in progress. The caf is where
stakeholders test-drive early versions of their
apps. The teams then incorporate feedback into
later iterations of the project plan.
We built a little prototype that we affectionately called Rewardly, in the lab and tested
it out, senior director of technology innovation
Joshua Greenough told Fast Company. It really
brings that customer to the forefront of the
pilots and the incubation of
the innovation that were
doing.
By bringing an early version to stakeholders, project
teams are able to adapt
and iterate swiftly. Just as
important as that direct line
to the end user is a clear
governance structure and
a strong connection to the
top, said Skip Potter, Capital
Ones vice president of engineering.
Mr. Potter, the chief innovation officer and
the COO meet monthly. When you have that
level of commitment at a senior level, going I
want to see what is going well, I want to see
what you are delivering, thats pretty awesome. M. Wright
By bringing an
early version to
stakeholders,
project teams
are able to
adapt and
iterate swiftly.
theEdge
TICKET
TO RIDE
Each morning, about 90,000
passengers pass through
Victoria Tube Station, one
of the busiest yet smallest
train stations in London,
England. Infrastructure
projects spanning more than
10 years and 700 million
have helped enlarge ticket
halls and redirect passenger
tunnels. But transit sector
experts warn more projects
are sorely neededand fast.
British rail operator Network
Rail estimates that by 2031
the capacity shortfall at one
station alone is likely to be
the equivalent of leaving 20
trainloads of people stranded
per hour.
Many people just wont
be able to get into or onto
many of our transport networks at peak times unless
new infrastructure projects
are green-lit soon, the citys
transport commissioner, Sir
Peter Hendy, told The Guardian. When Crossrail opens,
within months it will be full;
the population will go on
towards 10 million and youll
soon need Crossrail 2. You
wont be able to do without
it. In central London, the
overcrowding will grow to be
overwhelming.
The Crossrail projectone
potential salve to the surging
crowdsis a 14.8 billion,
73-mile (117-kilometer)
railway line currently under
construction to create a new
east-west route across the
metropolitan area.
M. Wright
All-Digital Competition
Meanwhile, new all-digital
organizations dont have
to spend money on bringing legacy infrastructure
into the 21st century. New
The Royal Bank of Scotland
banks by definition dont
will invest 1 billion in digital
have legacy systems, so
technology projects.
we can work with all the
best-of-breed software currently available, says Keith
Aird, head of information
security, Atom, Durham,
England. A lot of the large banks have mainframe systems and multiple
platforms that make it difficult and very expensive to do any new projects.
Set to become the U.K.s first online-only bank in 2015, Atom relies
entirely on software-as-a-service, or cloud-based, solutions. That has
dramatically lowered Atoms cost of entry to the market, which in turn
allows it to develop cutting-edge customer interfaces that use biometrics
for face and voice recognition. The security of a cloud-based banking
system doesnt concern the new organization. There are many layers of
authorization and protection, Mr. Aird says. In at least one way, Atom
will be more secure than a brick-and-mortar bank branch: Nothing can
be walked away with.
Thats not to say all-digital banks face no project risks, says Edward
Twiddy, chief operating and innovation officer, Atom. They have to prove
themselves to customers and regulators with flawless interfaces and rigorous security. To that end, Atom works closely with its technology suppliers to ensure everyone is committed to meeting the quality and security
goals of each project, as well as all regulatory requirements.
Good project management is fundamental to this process, Mr. Twiddy
says. That includes good governance to ensure all projects are running
smoothly in tandem. Weve got to get the customer experience correct,
while keeping regulators happy and maintaining respect for the data.
Weve got
to get the
customer
experience
correct, while
keeping
regulators
happy and
maintaining
respect for
the data.
Edward Twiddy, Atom,
Durham, England
Nissans third
manufacturing
plant in Mexico
opened in 2013.
For older retail banks with brick-and-mortar branches, transitioning to the digital future will be far
more difficult. The vast majority has begun creating a digital customer experience, allowing accounts to be
accessed online and through mobile devices. But the transition is slow-going because bigger digitization
projects to overhaul core infrastructure tend to have a lot of risks and a long projected return on investment.
If banks are
willing to
rebuild their
business
through the
smart use
of digital
technologies,
they will
emerge even
stronger.
Mike Baxter
theEdge
Letting Go of GMO
The U.S. appetite for food free of genetically modified organisms (GMOs) has
gone from a growing fad to a trend. Sales of non-GMO-labeled products grew
28 percent in 2013 to about US$3 billion, according to market research firm
Nielsen. The project teams tasked with shepherding these products to market
must negotiate a tricky, time-consuming process of securingand verifying
the right ingredients.
Currently, 64 countries, including Australia, China and the entire European
Union, require GMO labeling. While the United States is not one of them, that
could soon change.
As U.S. consumers have become increasingly concerned about the rising
number of genetically modified ingredients in their foods, both government
and industry have taken noticeand taken action. The state of Vermont
passed a mandatory GMO-labeling law in April, and major food companies,
including Ben & Jerrys and General Mills, have launched projects to reformulate products to be GMO-free.
We felt like this was something Ben & Jerrys ought to be a leader on, Chris
Miller, Ben & Jerrys activism manager, told the Burlington Free Press.
When Whole Foods, the leading U.S. retailer of natural and organic foods,
declared it would require all GMO-containing products to be labeled as of 2018,
it marked a tipping point for many food manufacturers.
Thats when we decided that we were going to make all of our products
GMO-free, says Daniel Nicholson, CEO of NadaMoo, a coconut milk ice
cream manufacturer based in Austin, Texas, USA. Whole Foods is a trailblazer in the grocery industry, and it dictates future trends.
Food distributors believe that, of all product claims over the next three
8 %
US$800
billion
37%
of U.S. residents
used non-GMO
products in 2012
53%
of U.S. residents
used non-GMO
products in 2013
US$400
billion
20,000 products
10
1,350
2013
2012
8%
2017
Percentage of
global food and
beverage sales
15%
Sources: Natural Marketing Institute, The Organic & Non-GMO Report, Packaged Facts, The Wall Street Journal, NPR
Consumer
interest in
transparency
around what
they are
eating has
been steadily
growing.
HEAL
THYSELF
The U.S. Defense Advanced
Research Projects Agency
(DARPA) is pushing wearable
technology into a new frontier:
Its announced the launch of
a five-year, US$78.9 million
research program to develop
new, minimally invasive neurotechnologies that will increase
the ability of the body and
brain to induce healing.
Electrical Prescriptions,
or ElectRx, as the program is
known, could create new computer chips that help regulate
the nervous systems of U.S.
troops and veteransminimizing the impacts of conditions
including post-traumatic stress
and arthritis.
Instead of relying only
on medication, we envision
a closed-loop system that
would work in concept like a
tiny, intelligent pacemaker,
program manager Doug Weber,
PhD, told The Washington
Post. It would continually
assess conditions and provide
stimulus patterns tailored to
help maintain healthy organ
function, helping patients get
healthy and stay healthy using
their bodys own systems.
Before the program can
accomplish its big ambitions,
though, it has to develop
project deliverables capable of
being itty-bitty: Most implantable devices in use today are
about the size of a deck of
cards and require surgical implantation. DARPA has tasked
the program with developing
ultraminiaturized devices
that could be inserted through
needle injection. M. Wright
11
theEdge
WATER
WAVES
12
1 CHALLENGE 3 PROJECTS
Standing By
For England-based Virgin Atlantic, Google Glass
provided the possibility of radically personalized
customer service. In February, the organization
launched a pilot project to test the theory. It equipped
customer service agents in the Upper Class Wing in
London Heathrow Airport with Google Glass headsets
to check in passengers and access flight and destination information.
We decided running the trial in this area would
allow us to learn the most about wearable technolA Virgin Atlantic customer
ogy and also allow us to gauge the reaction of our
service agent wears a
customers firsthand, says Tim Graham, technology
Google Glass headset.
innovation and development manager in Crawley,
England. The two-month pilot, which ended in March,
generated valuable lessons learned, including project modifications to account for poor 3G
connectivity and the low battery life of the headsets.
With the successful pilot complete, Virgin is now considering extending the service, and its
reachsuch as tracking customers culinary preferences in future trials.
Project managers in
sanitation, transportation, energy and
irrigation, take note.
The Inter-American
Development Bank and
PepsiCo have partnered on a productdevelopment project
to help communities
and organizations
better understand
how proposed projects
could affect freshwater
supplies.
The resulting
water-resource
data-management and
modeling tool, called
Hydro-BID, allows
project practitioners
and planners to generate water availability
projections based on
variables ranging from
population to rainfall
to land-use scenarios.
As it worked to
develop the tool, the
project team incorporated extensive data
sets, hydrologic modeling, simulation systems
and a comprehensive
navigation feature. Yet
the open-source water
modeling system runs
like an app, making it
flexible and intuitive
for the end user. Pilot
projects to test the
tool are underway in
Argentina, Brazil, Haiti
and Peru. M. Wright
An illustration of a
message provided by
American Airlines
iBeacon technology
The project can help us understand what products and services in the
lounge are popular, how people use the space and their general sentiment
toward Qantas in an organic way. That understanding informs future
decision-making about how we design and manage our lounges.
Jo Boundy, Qantas Airways, Sydney, Australia
Message Received
Consumers with a complaint might send a social media message
directly to an organizations Twitter handle. But travelers who are
enjoying themselves are more likely to broadcast a chipper message
to their social networkmaking that positive feedback more difficult
Qantas
to capture and analyze.
lounge in
Hong Kong
To help solve that paradox, Australia-based Qantas Airways
partnered with Local Measure on a pilot project to track social media
messages generated in the airport lounges.
The project can help us understand what products and services
in the lounge are popular, how people use the space and their general sentiment toward Qantas in an organic way,
says Jo Boundy, Sydney, Australia-based head of digital and entertainment at the airline. That understanding informs future decision-making about how we design and manage our lounges.
Because of the large volume of data being collected and analyzed, a key project challenge is ensuring the information is shared with relevant parties consistently. In addition to the team members in the Qantas head office who
manage social media channels, the project team built a mobile app to make the data more accessible. That allows
on-site staff to handle pressing feedback as its generated.
The pilot project, which began in July 2013, has sparked projects this year to launch similar services in all premium
Qantas lounges, from Hong Kong to Los Angeles, California, USA. Rekha Radhakrishnan
13
THE LATEST
STATISTICS, SURVEYS
AND STUDIES
DIGITAL DOCTOR
Electronic health records are rapidly becoming the new norm
around the globewith IT development projects racing to
meet that growing demand. By Emma Haak
RECORD GROWTH
$25
BILLIONS
$19
US$22.3
billion
US$18.8
billion
$13
$7
$1
2012
2015
5.5%
NORTH AMERICA
US$10.1
billion
SOUTH AMERICA
US$1
billion
14
US$7.1
billion
ASIA-PACIFIC
US$4
billion
NEW JERSEY
21%
USA
US$9.3
billion
59%
Percentage of
hospitals with at least
a basic EHR system in
place in 2013
532%
333%
9,000
US$515 million
Brazil
BRASILIA
17
2.5 million
Number of city
residents given smart cards containing their healthcare system
ID and personal electronic patient record data
R$100 million
US$400 million
9.7%
Japan
US$1.4 billion
Projected value of EHR market
by the end of 2015
2018
80%
Sources: Accenture, Healthcare Information and Management Systems Society, Office of the National Coordinator for Health Information Technology, InterSystems, EHR Intelligence
15
Voices
INSIDE TRACK
16
17
Small Talk
Well, its not for the faint of heart. Driving change in a large organization is
always much harder than you think. It took a good
18, 24 months before we started seeing real signs
of change. Youve got to persevere and keep hoping
things will pay off, because they do. PM
18
The
Mentor
Advantage
Whether youre an aspiring or seasoned practitioner, having a mentor can
provide support by teaching, troubleshooting or helping take your career to
the next level. We asked practitioners:
Shared Tools
Earlier in my career, I was mentored
by a highly experienced senior project
manager who had a PhD in the subject
matter. He helped me formulate my communication plan, become organized and really implement
a work breakdown structure. It was a great benefit
Teachable Moments
Vote of Confidence
Sometimes, no book or manual can
guide you in resolving a crisis. But if you
can confidently reach out to your mentor, he or she can help guide you.
I am fortunate to have a mentor who, if he isnt
sure how to resolve my issue himself, turns to his
peers for expertise. I once got an opportunity to
take on a complex project to replace an existing
system with a modern one for a South American
customer. A major challenge was the language
barrier because most of the customer team spoke
only Spanish. A lot of time would have to be
invested in translation, with the success of the
project depending on it. I wasnt sure whether
to take the project on or pass on it. My mentor
encouraged me to take on this assignment with
confidence. Throughout the project, he guided me
New Paths
During my last university years, I started
to work for an electronics
engineering company with a mentor. It
was his point of view and opinion that put me on
the project manager path.
Although I didnt face any big issues
when dealing with the very technical tasks,
Mentor in Action
he very quickly noticed some projectLooking for your own mentor?
oriented characteristics in my work. After
Need advice for managing your
some talks and very assertive orientation,
mentee? Visit Career Central
I decided to invest in it by taking courses
at PMI.org for more on building
related to project management, investing in
mentor relationships, plus tips
some practical tools and methodologies and
and tricks for the next steps of
your project management career.
getting an MBA in project management.
I feel very grateful for the mentorship,
which encouraged me to take the first step
toward the project management world.
Thiago Presser, MBA, project manager and project team
coordinator, NextSoft, So Paulo, Brazil
19
CAREER Q&A
FOUNDATIONAL
STRENGTH
From taking a first career step
to fortifying a skill set, stability
starts with a strong foundation.
BY LINDSAY SCOTT
Q: Im trying to get into my first project management role, and Im not sure where to start.
Should I consider working for free at first?
A: Getting your first break in a formal project
management position can be tough, especially if
you are entering the employment market for the
first time. Project management, as you have
probably realized, sees experience as king. So how
do you gain experience in the first place?
The mistake many people make when looking
to get their first break in project management is
assuming that their first role will be as a project
manager. If you speak to project managers, you will
quickly realize that 99.9 percent of them worked
in different positions before actually becoming a
project manager.
It is crucial to understand what employers mean
when they talk about experience. There are two
types of experiences you should be interested in
gaining: experience associated with the industry
sector or area of business you are interested in and
experience associated with the delivery of projects.
For example, if you are interested in working as
a project manager in an investment bank, understanding how that sector works is going to be beneficial to your future career plans. You will want to
know how that business operates, what the culture
is like, what expectations it has of its project managers and, more important, what the expectations
of a project manager typically are.
For an entry-level post, you should concentrate
on positions that will expose you to experiences
that will build great project management skills.
Coordinators, analysts, planners and controllers
20
Consider
Your Career
Dont travel down
your career path
alone. Find advice
and direction here.
Send job questions
to pmnetwork@
imaginepub.com.
21
Delivering
Bad News
When and how to tell a client about
internal problems on the project.
By Meredith Zehnder, PMP
WHY DIDNT YOU TELL ME SOONER?
Every project manager I know has been asked this
question, either by an internal or external client.
Many things can go wrong behind the scenes of
a project, and usually its best to keep them behind
the scenes. Your client doesnt need to know you
dont like your co-worker or that one member of
your team is notoriously late. Unearthing every
internal issue can easily cause a rocky client
relationshipand project.
Sometimes, however, internal issues should be
shared. Heres advice on whenand howto do it.
22
and walk the client through it. This will demonstrate you are behaving proactively and are able to
recognize and mitigate risk.
If you have a more collaborative client, you can
go into the conversation with some suggestions for
how you would like to handle this moving forward.
It will allow you to openly work on mitigating the
risk by coming up with an alternative, and the client will feel more comfortable by having a voice in
how the issue is handled.
Another common problem faced by project managers today is being handed a project that wasnt
budgeted appropriately. This is a tough position
that, unfortunately, is sometimes left for the project manager to handle. In this case, bring it up as
soon as possible, but have your thoughts very well
organized. Convey the issues to the client (preferably in a private phone call rather than a group
setting, like a kickoff call) with an explanation of
what you believe is not accounted for in the current scope and budget of the project, and how you
would like to handle it (one suggestion would be to
go through a formal reconciliation process).
There is
one critical
element to
delivering bad
news: Bring
the client
solutions,
not problems.
23
A WINDING
ROAD
Perfecting portfolio management
is a journey, not a destination.
24
TRAVEL PARTNERS
Other resources in our travels have been organizations that willingly shared their expertise and
checked in occasionally to make sure we were still
heading in the right direction. These may be businesses that we contract with for services, but very
often this same expertise can be found through
webinars, books, white papers and conversations.
Ive found great value in all of these, as they offer
the experience of many other organizations, often
have research to support their conclusions and the
authors demonstrate a passion for assisting others
in their journey.
Ive learned that the most important partner in
this journey hasnt necessarily been our executive
leadership or external consulting partners. While
both are valuable, the most important partners
are those who share their experiences, ideas, education, time and energy on a regular basisthe
project managers and team members at the core
of what the organization aims to accomplish.
These people have been the true partners that I
have come to rely on to inspire and challenge me.
Theyre with me every step along the way with
encouragement, support and appreciation. PM
INNOVATION Center
25
Crisis Mode
How preparation and innovative thinking can save projects during an emergency.
By Joan Landry, PMP
ABBOTTS CRISIS MANAGEMENT TEAM monitored Typhoon Haiyan in 2013 just as we had any
other hurricane or typhoon. We followed its intensity and path. We reached out to our employees in
the Philippines to ensure everyone was prepared.
The country is hit by many typhoons each year;
people seemed ready.
But then the storm, known locally as Yolanda,
intensified as it bore down on the Luzon region.
Although the area was prepared for a typhoon,
no one was prepared for the Category 5 super
typhoon and the devastation it brought.
As a project manager, what can you do to prepare for crisis events?
First, use your professional planning and risk
management skills to help prepare yourself and
your family for a possible crisis. Many government
websites provide guidelines; in the United States,
www.ready.gov is an excellent resource. Common
elements of preparation include:
An emergency kit (three days of food, water and
other emergency supplies)
A family communication plan (contact information, where to assemble if you cannot reach each
other by phone or text)
Second, you need to consider risk and contingencies for your
project plan. If
Typhoon Haiyan, which devastated parts of the Philippines in 2013,
a risk to project
was one of the biggest typhoons to ever hit land.
activity has a
high likelihood of
occurring and a
high impact if it
does occur, you
may want to look
at contingency
planning for that
activity.
In the
Aftermath
After a devastat-
26
Knowledge is Power.
Build your knowledge and prepare for CAPM success.
Studying for the CAPM exam? Boost your knowledge (and your confidence)
with PMI eLearning courses to prepare you:
CAPM Edge: Your Guide to Mastering the Certified Associate in
Project Management Exam
Essentials of Project Management
Fundamentals of Project Management
CAPM Practice Test: 385 Questions to prepare for success
Choose the style thats right for you, and learn on your
schedule. Get the knowledge you need to succeed direct from PMI and see where the CAPM takes you.
GLOBAL
REPORT
2015
30
AUSTRALIA
NEW
YEAR
NEW
GOALS
31
NEW
YEAR
NEW
GOALS
To continue to deliver
world-class construction management
services to Dallas Water
Utilities and other clients while expanding to
new clients. In order to
deliver world-class construction management
services, I need the best
people, and to attract
the best people I need
to have the best projects and environment
for them to work in. Ill
have a simple plan with
metrics and milestones
to keep me and the
team focused while
delivering results.
JD
Harrison,
PMI-RMP,
PMP,
PgMP,
regional
construction manager,
CH2M HILL, a PMI Global
Executive Council member,
Dallas, Texas, USA
32
BRAZIL
CAREER IN ACTION
I started as a mechanical
design engineer in the oil
industry in Saudi Arabia.
After I came to Ambitech Engineering as a
project engineer in 2007, I started to lay the
groundwork to become a project manager.
Its a big leap because project managers
often have to lead multicultural teams and
are on the hook for successes and failures.
I worked to earn the respect of my
co-workers and manager. I took on more
responsibility and expanded my project
management knowledge base by reading
and by attending PMI seminars. I reached
out to other practitioners in the sector and
learned from them.
I also made myself more useful to the
company, going beyond managing the
triple constraints to improve team dynamics and workflow processes. We handled
oil-refinery shutdown projects in the range
of US$100 million, and brought costs
down by using shared resources and doing
some tasks in parallel that traditionally
were done one after the other.
I was fortunate to have a good mentor,
a vice president at the company. I let him
know what my limits were and he was able
to guide me with technical experience as
well as soft skills, like dealing with clients
and work-related stress.
In 2011, I made the formal leap from
project engineer to project manager, which
came with a salary hike. Now Im leading
teams and handling projects that range
from US$1 million to US$100 million.
I also got the PMP credential, which
shows you take project management
seriously. It provided a strong foundation,
helping me extend my knowledge and
delve deeper into the discipline.
In your career, things dont just happen.
You have to look for opportunities, strategize and then work hard to achieve them.
Imtiaz Javed, PMP, project manager,
Ambitech Engineering, Chicago, Illinois, USA
33
CHINA
A Slowed Expansion
With about 8.1 million practitioner roles opening through 2020, China
is home to a greater expansion in project management than any other
Economic
country. Project management employment in China will increase by more
Outlook:
than 33 percent, according to PMIs 2013 Project Management Talent
2015 GDP Growth
Gap Report.
Forecast: 7.3%
While Chinas economic growth is expected to dip from 7.4 percent in 2014
Median Project
to 7.3 percent in 2015, according to the Organisation for Economic Co-operPractitioner Salary:
ation and Development (OECD), the countrys labor market remains strong.
US$27,156
The demand for project managers must be filled with skilled practitioSector to Watch:
ners, says Richard Gelders, PMP, co-founder and managing director, KMR
manufacturing
Oriental Group, Shanghai, China. There are many job opportunities for
project managers in China and not enough qualified project managers to
fulfill the demand, he says. Many companies are growing and developing
fast, and most industries need project managers.
Manufacturing (such as the automotive industry) and digital commerce have a particularly high
demand, he says.
Project management in China has greatly matured, Mr. Gelders notes. I feel positive about the
changes in project management in China, he says. A lot of companies have recognized project management as a key skill. More will follow.
AT A GLANCE
NEW
YEAR
NEW
GOALS
An automobile factory
welding assembly line
in China
34
INDIA
CAREER IN ACTION
Help Wanted
AT A GLANCE
35
MEXICO
Growing
Maturity
NEW
YEAR
NEW
GOALS
NIGERIA
Diversified
Opportunities
After a decade of sustained growth, Africas most populous nation boasts the continents largest
GDP, thanks in part to its increasingly diversified economy.
NigeriaAfricas biggest oil producerwill continue to grow as it repairs major oil pipelines
and expands production in non-oil sectors, according to the International Monetary Fund. The
key non-oil sectors are agriculture, which employs about 70 percent of the labor force, IT, trade
and services.
36
NEW
YEAR
NEW
GOALS
With many projects launching, the country needs project managers with strong planning skills, says Deji West, finance director,
Economic
Afren, Lagos, Nigeria.
Outlook:
For project practitioners looking for work in Nigeria, Mr. West
2015 GDP Growth
says
the outlook is positive, adding that theres a clear way to
Forecast: 6.5%
get ahead: attaining the PMP credential. The research backs him
Median Project Practitioup: Nigerian project practitioners with the PMP credential earn
ner Salary: US$35,707
about 22 percent more than others, according to PMIs 2013 SalSectors to Watch: Oil, IT,
ary Survey.
agriculture
While Mr. West finds that the Nigerian government would
benefit from a greater use of project management standards
and practices, multinational organizations have embraced project management and use it constantly, he says. This is creating a better experience base in Nigeria.
AT A GLANCE
37
CAREER IN ACTION
UNITED KINGDOM
I joined the R&D project
management team of Lucent
Technologies in the Netherlands in 1996, working on software
development projects. My first project was
an on-time delivery.
Around 2000, Lucent was having trouble.
They had about 250 project managers, but
there were layoffs. By 2007, only about 30
were leftI was one of them.
I was doing sales projects, which were
profitable, but our sales were going down.
Still, I felt if I got fired I could find another
job because I was confident in my capabilitiesand the PMP credential gave me
confidence.
Because of the economy, people thought,
I should stay where I have a job. But I
thought, I can wait until someone else
changes my environment, or I can change my
own environment. That is what I did at the
end of 2007 when I left Lucent.
I wanted to do something different, and
Telstra, the telecom operator in Australia,
asked me to join them as a project director
overseeing a major transition of their network.
I signed the contract, and planned to move
my wife and three children to Australia. But
in January 2008, the Australian regulator
decided not to allow Telstra to continue its
project, so we changed our plans again.
Surging
Forward
The U.K. economy has been speeding up since
2012and looks to keep up the pace in 2015,
Economic
according to PwC. Last year, not only did the
Outlook:
U.K. unemployment rate hit its lowest level in
2015 GDP Growth
six years, but the rate of employment equaled
Forecast: 2.7%
the record set in 2005.
Median Project
Thats good news for project practitioners
Practitioner Salary:
in the United Kingdom, which is seeing a
US$90,666
demand for almost 1 million project managers
Sectors to Watch: IT,
through 2020.
construction
The tech industry has been a particular beneficiary of the economic upswing, KPMG reports.
More than two-fifths of all U.K. tech companies plan to hire by mid-2015.
Project managers will need to handle the changes typical of the tech industry.
Change management skills are being asked for more and more, says Paul Yeomans, managing director, Manifestly Important, York, England. Project managers who are strong in this area will be well placed to advance. The construction
sector also will see an expanding need for project managers, he adds.
The outlook is positive, with the jobs picture for project managers continuing
to improve in line with the economic recovery, Mr. Yeomans says.
However, that also comes with an uptick in job competition, which Mr. Yeomans sees as the main challenge for job seekers. It is becoming increasingly
important for individuals to differentiate themselves with extra knowledge, skills
and qualifications, he says.
AT A GLANCE
38
UNITED STATES
Firmer Ground
After an unsteady recovery from the global recession, the worlds largest economy now stands on firmer ground. The United States should see
Economic
growth of about 3 percent in 2015 and 2016which would be its fastest
Outlook:
within the past decade, according to the International Monetary Fund.
2015 GDP Growth
Project managers are feeling that growth spurt, too. The U.S. demand
Forecast: 3.5%
for project practitioners is expanding by more than 12 percent, resulting in
Median Project
almost 6.2 million jobs in 2020, according to PMIs 2013 Talent Gap Report.
Practitioner Salary:
US$108,000
In 2014, U.S. employment levels finally approached their pre-recession
highs, according to a Deloitte report. Employers now intend to hire at their
Sectors to Watch: Finance,
construction, healthcare
strongest rate in over six years, ManpowerGroup reports. Between 2012 and
2022, U.S. employment should increase by almost 11 percent, with healthcare
accounting for almost one-third of new jobsmore than any other sector.
Project managers in the United Stateswhose median salary ranks third in the world after Australia and
Switzerlandwill benefit from a hiring push in project-rich sectors.
As companies look to gain efficiencies and improve their bottom line, the awareness of project management as a valuable skill and the demand for skilled project managers have definitely increased in the United
States, says Ruth Stevens, PMP, director, Grant Thornton LLP, New York, New York, USA. Ms. Stevens
says she has noticed an increasing number of job listings indicating that a PMP credential is either a definite plus or required.
In addition to healthcare, Ms. Stevens says, financial services and insurance are among the largest, most
visible sectors with a project manager demand. With construction jobs up to 6 million in June 2014 (up
from 5.4 million in January 2011), that sector is also in need: A January 2014 survey of Associated General
Contractors of America members shows that almost half (48 percent) were having trouble filling project
manager/supervisor roles. PM
AT A GLANCE:
NEW
YEAR
NEW
GOALS
39
40
2014 PMI
Project
Year
FINALIST
of the
Healthy
ROI
41
he U.S. Affordable Care Acts mandate is simple: provide access to health insurance to uninsured residents. But delivering on the legislations promise proved
incredibly complex.
Only 16 states and Washington, D.C., opted to build online healthcare marketplaces, rather than use the federal exchange. The Access Health Connecticut
(AHCT) team did more than just meet that challenge. Despite an immovable
deadline, fluctuating requirements and a radically compressed schedule, the
project team exceeded federal enrollment goals and became a model for future
projects across the United States.
PROJECT PROGNOSIS
From the beginning, the AHCT project faced formidable obstacles: Though the
team was formed in mid-2012, it didnt receive federal approval to start work
until December 2012. Despite that six-month delay, the federally mandated
deadline remained fixed at 1 October 2013.
If you look at similar projects in the public sector, theyre all taking three
years, says Jim Wadleigh, interim AHCT CEO, in Hartford, Connecticut, USA.
Instead, AHCT had just 10 months to deliver.
I met with our federal regulators, recalls Kevin Counihan, CEO of AHCT
during the project and now CEO of Healthcare.gov, the federal governments
healthcare marketplace. They heard all my plans,
and they said, Thats so exciting, but we just want
you to know we frankly dont think youre going to
make it.
The doubts could be forgiven, given the work
that lay ahead: The health exchange had to allow
Connecticuts roughly 365,000 uninsured residents
to compare and purchase health insurance plans.
Beyond state residents, the project had dozens of
Jim Wadleigh
state and federal stakeholder groups, ranging from
the U.S. Department of Health and Human Services to Connecticuts Department of Revenue Services, Department of Motor
Vehicles and Department of Public Health.
We had consumers, we had the federal government, we had state agencies,
If you look at
similar projects
in the public
sector, theyre
all taking three
years.
42
Project Lifeline
n
we had our state government, we had insurance carriersall were individual players, Mr. Wadleigh says.
Each one needed individual communications to make
sure they understood the progress.
THE DOCTOR IS IN
43
At the federal and state level, executive sponsor Lt. Gov. Nancy Wymans role
was absolutely critical, says Peter B. Nichol, PMP, interim CIO. She shepherded some key things through for us at pivotal times, he says.
She showed support for us in the eyes of the federal regulators, says Mr.
Counihan. She was the first lieutenant governor to
visit the Centers for Medicare and Medicaid Services during our final design review meeting. It sent
a very strong message.
Yet the project wasnt just tasked with building
and launching an exchangeit also had to ensure
that the uninsured would be able to use the site.
Realizing that a one-size-fits-all approach to reaching myriad end users wouldnt work, the project team
set aside US$19 million to fund stakeholder outreach
efforts. Newspaper, radio, billboard and TV advertising
was supplemented with targeted campaigns to reach
Spanish speakers, small businesses and young adults. Team members canvassed
Connecticut beaches, supermarkets, festivals and music concerts. As the project
live date approached, senior leaders went into communities on a weekly basis. We
44
Jim Wadleigh
vernment, we had state agencies, we had our state government, we had insurance
ne needed individual communications to make sure they understood the progress.
called them health chats, says Mr. Wadleigh. Many constituents showed up to ask
questions, and we were able to answer a lot of their concerns.
RX FOR SUCCESS
Requirements gathering may be an early step for most project teams, but for
AHCT it was an ongoing issue: Project work began before all of the federal
requirements were locked down. With the scope constantly in flux, project
leaders decided in December that theyd have to make some hard decisions to
separate the must-haves from the nice-to-haves.
They identified 19 core business functions that had to be addressed by
launch. If it didnt fall within one of those 19 functions, we didnt focus on it,
Mr. Nichol says. In the end, in February they reduced the scope by 30 percent,
delaying or eliminating features such as mobile device support and advanced
reporting capabilities.
Rather than discourage the team, the scope reduction fueled its focus, says
Mr. Wadleigh. We knew the date could not move, so wed have to make some
hard decisions around scope along the way. But that immovable date helped us
quantify what was the most critical item to deliver in the project.
In April, team leaders made the tough decision to tell the federal govern-
45
I think that in
the next 50 years,
there is probably
not going to be
another project
that has this much
social change.
46
5%
Zero
IT glitches or
stakeholder
uproars
200,000+
It was also successful: The project came in 5 percent under budget and on
schedule. When the site went live, there were zero IT glitches or stakeholder
uproars. And, as of March 2014, more than 200,000 residents signed up, exceeding federal enrollment targets by a whopping 245 percent.
I think that in the next 50 years, there is probably not going to be another
project that has this much social change, says Mr. Nichol.
The amount of work involved in actually implementing and communicating
this type of change in such a short period of time is unprecedented, says Mr.
Counihan. This shows what a highly focused and disciplined group of people
can do with an unrealistic time frame. It can succeed. PM
residents
signed up,
as of March
2014
47
48
49
Things Can Go
Wrongand Will.
My younger self would have definitely benefited from putting more
effort into risk management. When
starting an exciting project, it can be difficult to focus on all the things that could go
wrong when youre wanting everything to
go right. Being overconfident that nothing
bad will happen can make you suffer later.
On the flip side, having a risk register
ready can help you focus on keeping the
project moving in the face of adversity,
rather than difficulties forcing you into
reactive mode. I wish I had had a risk register at the ready on some of my first jobs,
as I remember spending lots of energy and
tears saving some of those projects from
the sudden absence of team members. It
was effort and emotion that could have
been better spent.
50
When starting an
exciting project, it can
be difficult to focus on
all the things that could
go wrong when youre
wanting everything to go
right. Being overconfident
that nothing bad will
happen can make you
suffer later.
Jan Mandrup, PMI-RMP, PMP
51
Andy Barnitz, PMP, PMO leadertalent acquisition, Allstate, Chicago, Illinois, USA, has been a practitioner for more
than 15 years.
52
People Trump Pr
Throughout your
project management
career, you will need to
constantly sharpen your
communication skills in
order to succeed.
Diego Mota, PMP
ocess.
red tape so that trust replaces contract
as the primary way to accomplish tasks.
Too often, managers see their title as
the ultimate acknowledgement of professional expertise, a view that could
lead to complacency, arrogance and
indifference to the fact that a manager
is primarily a figure who exists to serve
the teamnot the other way around.
To that end, a manager must practice
servant leadership to create efficiencies
for the team so that the team can focus
on its core objectives and become a
high-performing unit.
Theyre Called
Stakeholders
for a Reason.
When I was starting out, I wish I had
known that stakeholder
management is crucial, and the
project manager should be dedicated to it. From the very beginning of any project, be aware of
Roberto L.C. Gattoni,
and take note of the stakeholdPMP, corporate PMO supervisor, Fiat/Chrysler Latin ers requirements, expectations,
impressions, perceptionsand
America, Belo Horizonte,
Brazil, has been a project
even those pesky unknown
manager for 17 years.
demands. These factors change
in intensity constantly along the
project life cycle. The continuous challenge for you as a proactive project manager is to know how to listen to the winds, so
to speakto notice breaking expectations, to detect the small
problems that can quickly turn into crises.
Be ready also to manage influential and powerful personalities that may have been left out of the agreements made during
the project. In my experience, even if the project manager is
an expert in communication management, its not enough to
entirely avoid setbacks. You just have to realize stakeholders are
human, with their own opinions, expectations and concerns.
53
54
O AR
M
P YE
4
1
E T
0
H
2
T L IS
F
O INA
F
Charting
the Course
In a time of turmoil, the Central Bank of the Dominican Republic looked to its project management office to help stabilize the economy.
BY TEGAN JONES n PORTRAITS BY ROBERTO MUOZ
tability sets the stage for prosperity. Without reliable prices and a stable currency, a
countrys economy will be stunted by skittish investors and consumers. Even before
the recent global recession, the Dominican
Republics economy was mired in chaos. The
annual inflation rate soared as high as 49
percent. Interest rates on Central Bank of the
Dominican Republic (CBDR) bonds hit 35
percent. And the Dominican pesos exchange
rate fluctuated wildly, rarely to the benefit of the countrys consumers.
To fulfill its mission of delivering financial stability to businesses and the
countrys 10 million residents, the CBDR created a four-year strategic plan
in 2006. Chief among its goals: lower inflation and bolster the value of the
peso to protect Dominican consumers purchasing power.
But a plan is only as good as its execution. Convinced that the banks
performance hinged on choosing projects aligned to the strategy and then
executing them through standardized processes, CBDR leaders approved
the creation of a project management office (PMO).
55
Being nominated
is recognition
of the Central
Banks effort over
the last eight
years. This has
involved a lot of
people, a lot of
hard work and a
lot of discussion
internally. It
has involved
the whole
institution.
Joel Tejeda, on being named a
PMO of the Year finalist
First there was the plan. Then came the PMO, to guarantee the plan was
carried out, says Eunice Duran, PMP, PMO lead and technical consultant, planning and budget department, CBDR, Santo Domingo, Dominican Republic.
After 60 years of doing things the same way, however, the hierarchical organization was resistant to change. When the PMO launched in January 2007
with control over the banks entire project portfolio, its first challenge was to
persuade each department to adopt standards that would allow the PMO to
systematize how it planned, executed and documented projects.
In very big and old organizations, departments tend to be like islands, says
Fabiola Herrera, director, payments systems department, CBDR. So the PMO
has had a hard time trying to make everybody understand that a project does
not belong to one specific department, but to the organization as a whole.
To secure stakeholder support throughout the bank, the PMO drew heavily
on practitioner expertise to research and recommend policies and regulations.
By 2010, Dominicans were seeing stable prices at the supermarket, investors
were buoyed by a lower interest rate and stronger peso, and the countrys
economy was on a growth trajectory.
56
Once the top management is convinced that this is important, its easier
for the rest of the institution to absorb, says Joel Tejeda, deputy manager,
monetary, financial and exchange rate policies, CBDR.
With executive sponsorship secure, the PMO team began encouraging
adoption of project management practices across the organization. The banks
leadership was especially keen on having the PMO implement processes that
would help the CBDR identify problems early on, make necessary adjustments
and ensure projects were in sync with strategy.
By forging strong partnerships with project managers across the institution
and positioning them as best practice facilitators rather than auditors, the
PMO was able to change mindsand increase strategic alignmentacross
the banks departments, Mr. Tejeda says.
The most important way to know if the PMO has been successful is the rate
of compliance, he says. From 2006 to 2009, 57 percent of projects were not
related to the strategic plan. Now, only 11 percent of projects are not related.
Having the entire portfolio under the PMOs management has also allowed
the team to reduce redundancy, which has freed up resources to support projects that deliver greater value, Ms. Duran says.
Resources are scarce, she says. So the PMO has guided the whole institution in the way that it prioritizes, assigns and balances resources according to
the organizational strategy.
The PMOs robust management practices enable us to only implement
priority projects and execute them within the
approved constraints of scope, cost and schedule,
Ms. Duran says.
One high-profile example was a 2008-2011
project to integrate the real-time gross settlement systems of the Dominican Republic and five
neighboring nations. By increasing the speed at
which money and securities are transferred (or
settled) between banks, it promised to make the
regional economy more efficient.
While its partnersGuatemala, Costa Rica,
Honduras, Nicaragua and El Salvadorwere
all on board, the PMO team knew that logistical complexities of working across borders could
prove difficult. To avoid delays, the PMO gave the
project consortium standardized processes that
streamlined communications and helped each
country move toward the shared goal. Defining the
Fabiola Herrera
projects objectives and then using the same forms,
reporting tools and success measures throughout
execution kept disparate teams on the same page, Ms. Herrera says.
The PMO helped by giving us standards, she says. It helped us speak the
same project language.
The PMO
helped by
giving us
standards.
It helped us
speak the
same project
language.
N G SS
I
K
BA NSU CCE
OPNMOs Evolution
A
57
performance, says Luis Jos Bourget, director, planning and budget department, CBDR.
Two years after the PMO was founded, we started assessing our work and
looking for outside information regarding our performance, he says.
PMIs Organizational Project Management Maturity Model (OPM3) helped
identify and fill gaps in the PMOs processesand fueled even more progress.
Increasing our project management maturity has helped us achieve strategic objectives at the institution at a much faster pace, Mr. Bourget says.
Using OPM3, the PMO has uncovered new opportunities to improve its
performance year after year. An internal benchmark drawn from OPM3
showed the team significantly increased its maturity. And the improvement
process continues, Ms. Duran says.
Each year after the evaluation, we note the processes we lack, those that
would be useful and those we are ready to implement, she says.
Improving documentation has been a central part of the PMOs maturation.
The move not only helps the PMO team identify relationships among projects
and avoid redundancy within the portfolio, it also means teams arent doomed
to repeat history.
Prior to the PMO, important projects were executed without leaving a paper
trail, robbing future project teams of valuable lessons learned. Thats very sad,
from an institutional point of view, Mr. Bourget says.
With in-depth project recordkeeping now the norm, the
CBDR has improved project planning across the institution
and allowed the PMO to deliver better results.
With the project management methodology now in
place, we have full documentation for over 400 projects
that have been successful all along the way, Mr. Bourget
says. And we have lessons learned and experiences to
share with the community and with the future generations
of central bankers.
Increasing
our project
management
maturity
has helped
us achieve
strategic
objectives at
the institution
at a much
faster pace.
Since its launch, the PMO has not only improved the
banks project performance, it has helped deliver macroeconomic stability during a period of global financial turLuis Jos Bourget
moil and evolve the Dominican Republics financial system.
Now a check can clear the next day, Ms. Herrera says.
Thats a huge achievement for a country where check-clearing used to take
two weeks.
Other CBDR projects have made it easier for people in rural areas to open
bank accounts. By supporting the departments that created a regulatory
58
First there
was the plan.
Then came
the PMO, to
guarantee
the plan was
carried out.
Eunice Duran, PMP
framework for smaller, sub-agency banks, the PMO indirectly helped individuals who never had a savings account get access to financial services. Another
project the PMO helped with standardized accounts so that customers from
different banks can transfer money in real time. Taken together, these initiatives are advancing the countrys economy.
We give the national financial system the stability it needs in order to bring
international investments here and improve the way the banks work, Ms.
Herrera says. The PMO is working for the greater good.
The PMO also supports economic development by fostering a culture of
project management in both the public and private sector.
Here in the Dominican Republic, businesses are paying a lot more attention
to the project management specialization for their workers, Mr. Bourget says.
Team members have also shared project management experiences at
regional conferences and assessed the implementation of PMOs at other
financial institutions.
By fostering the project management community, were improving not just
the enterprises but society as a whole, he says. PM
59
When
AGILE
12/19/14 4:03 PM
Meets
AU DITOR
61
12/19/14 4:03 PM
n a relatively
short span, agile
approaches
have gone from
the margins of
project
management
to decisively in
the mainstream.
But even within IT and software development,
theres one area in which agile still has to fight for
a foothold. Regulated industriesfinancial services,
pharmaceuticals, healthcare and the likehave
proven to be less receptive to agile, even as more
fields beyond IT take the plunge.
To be fair, regulated environments seem ill-suited
for agile at first glance. Its iterative approach seems
at odds with the rigorous validation, documentation
and assessment requirements that projects in such
industries must meet. Couple that with the increased
consequences of failurewhere a software failure
can crash not just a computer but an entire financial
networkand the reluctance to move away from the
waterfall model is understandable.
Agile methods are focused on delivering a
large amount of business value to the customer,
says Denise Canty, PMI-RMP, PMP, senior IT
project manager at Cenden Company, Washington, D.C., USA. Regulated industries are more
focused on safety first and may not be the best
candidates for agility.
62
92
approachand recognizing that sometimes waterfall really is the best way to go.
63
64
Several members of
senior management are
interested in trying agile
approaches, but theyre
stuck in the mindset
of having full feature
sets delivered by a
predetermined date.
65
LEARNING TO COMPROMISE
The need for substantive (if not substantial) documentation likely precludes the use of nonhybrid
agile in regulated environments. Theres no getting
around the fact that traditional waterfall approaches
will have to be integrated into any iterative process.
For example, Mr. Mallavajhala knows his team
members will have to submit a certain amount
of documentation and receive formal approval of
plans, tests and systems throughout the project life
cycle. But that doesnt mean they sit around waiting for sign-off before moving to the next stage.
Instead, they update their regulatory documentation throughout the sprints, and get sign-off just
before the formal testing. This way, the method
avoids formal change management and approvals of specifications during development and thus
enables better productivity and turnaround time,
he says.
66
As a project
manager you
need to recruit
agile champions
among your senior
management
and key project
stakeholders.
Ultimately, each
business unit that
has deliverables on
a project must be
operating on the
same cadence.
Bryan Berthot, PMI-ACP, PMP
67
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CLOSING
Credit
PROJECT: Inner Harbor Water Wheel
LOCATION: Baltimore, Maryland, USA
BUDGET: US$800,000
GOAL: make the Inner Harbor
swimmable by 2020
72
Baltimores Inner Harbor doesnt only host aquatic lifeits awash in empty bottles, bags
and wrappers. That debris eventually floats into the Atlantic Ocean, where it wreaks environmental havoc.
To prevent waste from emptying into the harbor and then the ocean, the project team
decided early on it wanted a largely self-sufficient solution. That meant marrying new
technologies with old designs. During the 19th century, waterwheels powered mills along
the citys waterways. The team adapted the hydro-powered waterwheel design, adding
solar panels that generate enough electricity to keep conveyor belts running even when
there isnt enough river current.
The potentially scalable clean-up project can collect 25 tons of debris every day. Completed in May 2014, the waterwheel removed 63 tons of trash from the water in its first
seven weeks of operation.
Perhaps equally of note, the project that garnered little public attention during execution has become a sightseeing destination for local stakeholders. The interest could spark
support for future projects. None of us should ignore what it means for this many people
to be paying attention to this issue, Michael Hankin, chairman of the Waterfront Partnership, told Baltimore Magazine.
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