As a PM, I can make project management trustworthy

Blockchain, the cryptocurrency underlying technology, is starting to change the way we do business, and will soon change the way we manage projects. Project management Blockchain applications will not be just for paying subcontractors with digital money.

Chances are Project Management Information System (PMIS) tools start with Blockchain by using features known as smart contracts to extend transaction logic with programmed logic. This will make project management more trustworthy by automating transactions related to subcontractors’ terms and conditions, registering project work performance data and project status reports.

Reliable project status reports can make stakeholders trust project management:

  • Stakeholders will trust project management if they have access to reliable periodic status reports.
  • Stakeholders will not trust project management if, for instance, everything is “green” on week 11, and everything is “red” on week 12; or even worse, if now we say that week 11 was already “red” but we said “green” in the first place.
  • They have access to reliable periodic status reports.
  • Consider this Indian NGO to help kids with vision problems. How many additional donations could they get only if they periodically reported the project global status, issues, risks, schedule and costs variances, etc.? How many donations would be canceled if any stakeholder finds these reports deceptive?

Think of a non-professional project management, who manages the project just by tracking tasks. How is he different from a professional one? The main distinction is that the project management professional reports periodically to a project steering committee. While reporting about the project, this professional is also involving key stakeholders in the problems and seeking the solutions with them. For example: What activities should we compress to save a 2-week delay? What activities should we reduce costs on, to avoid 10,000 USD over cost, before the project ends?

Periodic project reporting brings two main benefits:

  • Project managers are more effective if they know there are vigilant eyes watching the project status at each review date.
  • Stakeholders will trust the PM if they satisfy their communication needs with project status reports.

The story of a project can be summarized throughout its status reports.

Project stakeholders can easily understand project status report terminology:

  • Projects have 4 states: initiating, if not approved yet; planning, if it is approved but not started, and effort is devoted to planning but no cost is spent; executing, if the project is using effort and costing money; and closing, if all deliverables have been accepted.
  • Data dates: At each review date, stakeholders need to know planned or actual start and finish dates. Published project status will be referred to a review date.
  • Synthetic data: Each project status report contains global and detailed, qualitative, and quantitative information. Above all, stakeholders appreciate traffic lights: Green color meaning “on-track”; amber meaning “action required to get back on-track”; read meaning “off-plan”.

Let’s set an example of a project story summarized in these 5 snapshots:

  • Snapshot #1: As of today, the project is not approved yet. It is an initiating state. There is an estimate for start and finish.
  • Snapshot #2: Today, the project is in planning state. We cannot use resources nor spend money on it. We will start soon. Review dates are planned.
  • Snapshot #3: Today, the project is in execution state. We can submit timesheets and expenses. It started recently. No project status is reported yet.
  • Snapshot #4: Today, the project is still in its executing state. Project status date is previous, but there is no published status report for the status date. Stakeholders can review one status report at the beginning, with some information but no traffic light was reported (white). A second status report stated the project was on-track (green).
  • Snapshot #5: As of today, all technical work is accepted. The project is in closed state. We can review 5 status reports during the project lifecycle. One review date has no report associated. The last 3 showed issues but we closed on time, eventually.

To make periodic project status reports trustable, that is, impossible to face, the unique feasible technological solution is to publish project status reports files in Blockchain. In PMPeople, the organization owner can set the “reliable organization seal”, allowing status reports to have a certified copy in Blockchain.

In reliable organizations, any project manager can publish project status reports in Ethereum, at a cost of 0.10€ each.

Four states are possible for any project status report:

  • Private: Project status has not been stored on Blockchain.
  • Public: Project manager has stored project status on Blockchain.
  • Verified: At least one stakeholder has checked that the stored project status matches the information in the PMPeople tool.
  • Invalidated: At least one stakeholder has checked that the stored project status does not match the information in PMPeople tool.

Imagine a project as of September 21st. Project status report has been published in Blockchain. At that time, the project is on track:

  • Users granted to access project status reports in PMPeople can see that dates August 17th and 24th are not been published.
  • August 31st report is published but nobody has verified it yet
  • September 7th and 21st reports are verified indeed.
  • September 14th report has been changed in PMPeople and does not match Blockchain record.
  • Project manager can always publish August 17th and 24th.
  • Project manager can also “unpublish” September 14th and set it to public again—PMPeople will call a new Blockchain transaction that will be secured in a new block.

In reliable organizations, stakeholders and project managers know that project status reports are kept in Blockchain. PMPeople hides technical details, though.

See this state diagram with the possible transitions:

  • Initial State: Project status report is not published in Blockchain, it is “private”.
  • Publish: Project manager, or other management role, publishes the project status report in Blockchain. Status report state name is “published”. The organization’s balance is decremented $ 0.10 USD —if the organization’s balance is totally spent, then the seal is removed.
  • Verify: Any project stakeholder clicks the report icon. This calls an internal process to compare all published data against data stored in PMPeople. If all data match, then the status report state is changed to “verified”.
  • Invalidate: Any project stakeholder clicks the report icon. This calls an internal process to compare all published data against data stored in PMPeople. If some data do not match, then the status report state is changed to “invalidated”.
  • Unpublish: Any time, the project manager, or other management role, can make public reports get back to “private”.

In reliable organizations, the project manager (PM), or other management role (PMA, PMO, PfM, PgM), can publish or un publish a project status report at CONTROL > Status Reports:

Unlike ordinary organizations, reliable organizations show this data:

  • Reliable state icon: Indicates if report is private, public, verified, or invalidated. Project manager can click this icon to change project status report state to “published”.
  • Ethereum Transaction: Public code of the Ethereum transaction containing status report file. This is not the real file, but the IPFS hash. Anyone can go to Eherscan, enter this code, and see the real Ethereum transaction. An Ethereum transaction can never be changed. The transaction data field contains the encrypted IPFS hash. This hash would allow anyone to get the actual file stored in IPFS.
  • IPFS File: Anyone can go to ipfs.io, enter this hash, and see the actual project status report file stored in IPFS.
  • Ethereum Fee: The cumulated amount in euro for publishing this project status report one or more times in Blockchain.

Watch this video explaining blockchain implementation in PMPeople.

Frequently Asked Questions
What is the benefit of using Blockchain in project management?

Blockchain ensures project status reports are immutable, verifiable, and transparent—making stakeholders trust the information and the project manager.

Who can publish project status reports to Blockchain?

Any project manager or authorized role (PMO, PMA, PgM, PfM) in a reliable organization can publish or unpublish status reports from the Blockchain.

What does it mean if a report is “verified” or “invalidated”?

A “verified” report exactly matches what’s stored in PMPeople. An “invalidated” one indicates a mismatch, suggesting the report has been altered after publication.

How much does publishing to Blockchain cost?

Each report publication to Ethereum costs approximately €0.10, which is deducted from the organization’s Blockchain balance in PMPeople.

Can Blockchain reports be edited?

No. Blockchain records are immutable. If a report is changed, the PM must re-publish it, creating a new Ethereum transaction and IPFS hash.