In project management, there is the concept of MILESTONES.
An under-appreciated fact: they're not only useful to manage the project.
They're there to protect the project manager too.
If he knows about it.
(thread, 1/N)
An under-appreciated fact: they're not only useful to manage the project.
They're there to protect the project manager too.
If he knows about it.
(thread, 1/N)
2/ Milestones are the idea that the project is divided into stages, often separated by objectives such as "build a working prototype" or "get 500 users".
Milestones are usually a moment to stop, look at the bigger picture, decide whether to continue, reorganize the team, etc.
Milestones are usually a moment to stop, look at the bigger picture, decide whether to continue, reorganize the team, etc.
3/ Some companies rightfully so use milestones as a defensive tactic to reduce downside.
For example, by saying "we will release additional budget after the milestone is hit".
With the implicit idea that, this way, they cap the initial investment and thus the downside.
For example, by saying "we will release additional budget after the milestone is hit".
With the implicit idea that, this way, they cap the initial investment and thus the downside.
4/ Experienced managers leading a project know that, in some industries, milestones are a personal danger.
There is the chance that after the milestone is hit, the project gets reorganized and they lose ownership.
There is the chance that after the milestone is hit, the project gets reorganized and they lose ownership.
5/ Therefore, experienced project owners in some industries proactively set and negotiate milestones as two-way arrangements:
- They cap downside (so the project is more likely to get started)
- They get a call option on additional ownership / resources if milestone is hit.
Eg:
- They cap downside (so the project is more likely to get started)
- They get a call option on additional ownership / resources if milestone is hit.
Eg:
6/ An example of the first point:
- instead of asking directly for a full budget to lead a new project that they personally find promising, skilled project owners ask for an initial smaller budget to reduce downside risk and making the "okay" more likely.
- instead of asking directly for a full budget to lead a new project that they personally find promising, skilled project owners ask for an initial smaller budget to reduce downside risk and making the "okay" more likely.
7/ As Sam Altman repeatedly pointed out, ambitious project are sometimes easier because they recruit the help of more ambitious and skilled people.
Milestones allow for a project to be ambitious AND have a reduced downside.
Milestones allow for a project to be ambitious AND have a reduced downside.
8/ Example of the second point:
- Just asking for a small pilot project carries the risk that, if successful, the full-fledged project will be assigned to someone else. Or that by the time it ends, top management will have changed priorities and it won't confirm additional budget
- Just asking for a small pilot project carries the risk that, if successful, the full-fledged project will be assigned to someone else. Or that by the time it ends, top management will have changed priorities and it won't confirm additional budget
9/ By setting a two-ways milestone ("for now, you commit to X, but if I hit the milestone, you commit to additional XXX"), skilled project owners reduce downside risk for both parties and align incentives much better than otherwise.
10/ By the way, the same applies to milestones set with external clients in some industries.
11/ This is particularly true for some roles in some startups in which people are hired for their competence at a given stage of growth with the express idea of replacing them 1-2 stages later. Perhaps more than any other, B2B sales roles.
12/ 👇 goes both ways: there are some project owners who end up stuck in their project for longer than they wished.
Milestones are an opportunity to say "I'm here in this role until this goal is reached, then I move on" in a way which guarantees the wish.
Milestones are an opportunity to say "I'm here in this role until this goal is reached, then I move on" in a way which guarantees the wish.
13/ To conclude: project owners, milestones are a tool not only for your company or for the project, but for you as well.
Take the time to set them properly, and they will make everything easier.
Neglect them during project setting, and you might bite your hands later.
Take the time to set them properly, and they will make everything easier.
Neglect them during project setting, and you might bite your hands later.
