Hello and welcome to today’s live webinar: 3 organizational Paradigms managers Need to Ensure project success.We want to welcome attendees from both the CAI and Gantthead communities.Today’s webinar was developed by CAI. CAI, a global IT services and outsourcing firm, is a world leader in IT metrics and productivity.CAI has active engagements with over 100 fortune 1000 companies and government agencies around the world. We are delighted to present today’s webinar and we are looking forward to a productive and informative ½ hour.
In this live webinar, you will learn how to obtain the three paradigms managers need to ensure project success Visibility, Control, and OptimizationProject success depends on manager’s ability to retain visibility and control of the work force to optimize projects for success. We will touch on how:Managers can clearly communicate what needs to be done You can spot early warning signs before projects failManagers can ensure best practices are followed and critical steps are not overlooked
Management by Walking Around (MBWA) is a popular technique to observe and address problems that may exist in the project teams as well as with the stakeholders and project owners. With on-point visibility across the entire organization, managers can uncover and address problems before they become catastrophic. The bi-directional communication that results when this technique is employed in a systemic approach ensures project success from initiation through implementation.
MoralePeople feel like someone is listening to them – but too much of a good thing is a bad thing
Time on TaskPeople know they are being watched – the Hawthorne Effect is in full effect
PerformancePerformance becomes increasingly standard as expectations are communicated and re-enforced more often
The Standish Group reports that roughly two out of three IT projects are considered to be failures (suffering from total failure, cost overruns, time overruns, or a rollout with fewer features or functions than promised).Lets quickly look at the details behind these infamous failures…<Click>
In February 1988, hardware problems caused the Bank of America (BofA) to lose control of several billion dollars of trust accounts. All the money was eventually found in the system, but all 255 people—i.e., the entire Trust Department—were fired, as all the depositors withdrew their money. This is a classic case study on the need for risk assessment, including people, process, and technology-related risk. BofA spent $60M to fix the $20M project before deciding to abandon it altogether. BofA fell from being the largest bank in the world to No. 29.<Source: http://sunset.usc.edu/classes/cs510_2001/notes/masternet.pdf. >
Overnight on March 4, 2007, the US Airways and America West computer reservation systems merged. US Airways, which previously used the Sabre airline computer system, switched to the new QIK system, an overlay for the SHARES system, that had been used by America West. A few of the features from the Sabre system were incorporated into the new joint system, with the most prominent being the continued utilization of the Sabre ramp partition "DECS" for all computer functions related to weight and balance, aircraft loading and technical flight tracking within the company.
These examples have highlighted the value that MBWA could have provided if it were done.The practicality just wasn’t there to do MBWASO, WHY ARE WE NOT THERE TODAY?<Talk to slide>
So how can we do MBWA in today's complex and challenging world?By “Managing by (Virtually) Walking Around”.
The soft and hard data behind the dashboards. This is an example of the virtual MBWA data collected.We can look at this by project, organization, portfolio of projects…… all the way down to the person.
Return control back to Pete at end of slide___________________________________________-PETE:Thanks Dave,We do have a few questions. We have time for one or two.What have you found is people’s willingness to answer your electronic questions?DAVE:When first implemented adoption rate is low. As a few weeks go by the percentage goes up quite a bit. We see response rates in the 80% range.For statistical accuracy we only need 30+ percent response.Key to the success is that there is senior management backing of this technique.PETE:Thanks Dave….Next question.I see how the dashboards can show the alerts of something wrong. But won’t the people tell you what you want to hear, making your dashboards invalid?DAVE:That’s a great question and one that many people ask.People can certainly try to “game” the system.But, your responses are compared to other people’s responses.The likelihood that everyone is gaming the system the same way is very low.Chances are you will be found out.You may try to twist the truth if you are having a hallway conversation but it is less likely with formal electronic reportingPETE:That's all the time we have for questions. If we didn’t get to your question you can send me a note and I will get back to you with a personal response.
Thank you Dave.And thank you everyone for attending.For questions about today’s webinarthe tools CAI uses, or to learn more about CAI, or for a copy of today’s presentation…please contact myself, Pete Lechner, via phone or e-mail. My contact information is on the screen.…To learn more about the tools Visit us on the web at www.CAIBuzz.comThank you once again.This concludes today’s webinar.
Today’s WebinarThree paradigms managers need to ensure project success – Visibility, – Control, and – OptimizationKey points 1. Managers can clearly communicate what needs to be done 2. You can spot early warning signs before projects fail 3. Managers can ensure best practices are followed and critical steps are not overlooked
Visibility, Control & Optimization by“Management by Walking Around” Why did we ever do this? Can we still manage to do this? Can we do it virtually?
Effects of MBWA - ManagersHP saw that managers who more frequently engaged their teams were also re- evaluating decisions and reprioritizing risks/issues earlier in the projectManagers are in the loop, gaining multiple perspectives all the time
One Thing Remains True:Projects Must Succeed1988: Bank of America loses $2.6 Billion in trust accounts when migrating enterprise systems1997: Oxford Health Plan’s shares fall 62% when executives realize their automatic billing system has a 15 month backlog for claims processing2007: US Airways attempts to implement a new booking system – resulting in 1,220 delayed/cancelled flights (the most since 9/11, not counting volcanic ash)
Bank of America Project reviews were submitted by team leads weekly Estimates vs. Actuals were always good Finished primary development and moved to test ahead of scheduleTest cases (particularly for load) were missing – A surpriseto management, but not development BofA loses $2.6 Billion in trust accounts when migrating enterprise systems Project lacked Visibility, Control, and Optimization
Oxford Christmas, 1996 - Delivered new “Pulse” processing system on time Big-Bang style move took place on New Year’s, with the Financial Times labeling automated billing a “breakthrough success”When subpoenaed, staff from all four developmentteams indicate that they had no confidence the newsystem could manage the load, but were never asked Oxford Health Plan’s shares fall 62% when executives realize their automatic billing system has a 15 month backlog for claims processing Project lacked Visibility, Control, and Optimization
US Airways From close of business Friday night to start of business Saturday morning, implementation teams report successful installation of new booking system at 100% of US sites One of their biggest IT successes everWhen he appeared at the hearing that followed, thehead of resources and infrastructure said “No one everasked me about the move.” US Airways experiences 1,220 delayed/cancelled flights (the most since 9/11, not counting volcanic ash) Project lacked Visibility, Control, and Optimization
CAI We pride ourselves on delivering projects on-time at a fixed price Based on our estimating methodology, our track record is very strongEventually a project came along that was managedto the letter, but we found out close to delivery timethat we had problems – our SMEs were aware, but ourproject manager did not have access to them We were beginning to make mistakes. We quickly needed to get a communications, visibility, and enforcement system in place Project lacked Visibility, Control, and Optimization
Why Aren’t We There Today?(Management Challenges) Various Data Sources Large teams of people Spreadsheets with distributed authority E-mail Management Project planning tools Project teams Portfolio management tools Business management Etc. Outside experts Technology Consultants PMO Most tools are not really oversight Review boards Tools focused on where you have Etc. been /where you are. . . Not where you will be Communications Process Status meetings Phone calls Best practices are still maturing Presentations Priority is to complete projects. . . Not to improve the Management Etc. process
Ever Have Surgery?Does each doctor andnurse decide how toperform a procedure? HAS Visibility, Control, and Optimization
Ever Fly in a Plane?Does every pilot decide what is the best procedure to takeoff and land? HAS Visibility, Control, and Optimization
Ever Buy a House? Do you take the sellers word for it? HAS Visibility, Control, and Optimization
Decomposing MBWAWhat makes our best PMs that good?They know the standards we expectThey know what to trackThey know what questions to ask
Take Away #1Clearly communicate what needs to be done Ask appropriate questions: – By type of project – By phase of project – By role responsibility – On schedule Put it into a tool that is accessible anywhere Capture performance expectations
How We Communicate WhatNeeds to be DoneRole basedRule BasedElectronic checklistsWeekly assessments
Take Away #2Spot early warning signs before projects fail The best managers can understand what they see/hear Codify the experience of the best managers Understand how they interpret data
How We Spot Early Warning Signs of Failure Predictive analytics Based on published IT industry studies of project performance research – Leon Kappelman – Mary Sumner – Robert Glass – Mark Keil Four Key Measures: – RPL – Rework Prevention Level – SMART – Clarity of Task Assignments (Specific, Measurable, Accountable, Relevant, Timely) – SMPL – Senior Management Participation Level – PAL – Process Adherence Level
Take Away #3Ensure best practices are followed and critical steps are not overlooked Collect data on the behavior you want to be followed Report on compliance Make this behavior visible Take action on what you see
How We Ensure Best Practices are Followedand Critical Steps are Not OverlookedVia our Automated Project Office we ensure that theproject’s cost, scope, schedule and risk profile are fullydeveloped, documented and agreed upon by allstakeholders. We verify that the project plan is feasiblefrom the point of view of the team charged with the work. Stage Gating Weekly assessments Predictive Analytics Dashboard drill-down Scorecards Earned Value
SummaryParadigms needed to ensure success 1. Visibility, 2. Control, and 3. Optimization Project success depends on a manager’s ability to retain visibility and control of the work force to optimize projects for success. Benefits Three take-aways: • Early operational insight 1. Clearly communicate to enable risk mitigation what needs to be done 2. Spot early warning signs • Effective control and before projects fail governance 3. Ensure best practices are • Increase likeliness of followed and critical steps success are not overlooked
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