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Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
Graphical project reporting-v1-0
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Graphical project reporting-v1-0

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using graphics to improve pm understanding, communication , awareness, stakeholder sharing,...eye catching.

using graphics to improve pm understanding, communication , awareness, stakeholder sharing,...eye catching.

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  • 1. Juni 03-23-05 2011 BVBAproject – programme – portfolio management – view on reportingPresented by Jan BietsJan_biets@hotmail.com +32(0)477 32 90 11 Mechelen - Belgium page 1 • view on reporting
  • 2. Project management – view on reporting • What is the purpose: – Increase success rate of -strategically- projects; – Decrease failure rate of -strategically- projects – Improve - visual- reporting data; – Improve baseline information to take decision upon; – Improve communication, also to „non project management‟-skilled audience , i.e. top management; – Increase effort in strategically supportive projects; define metrics for measuring progress/success/quality of balanced scorecards; – Order (go / kill ) strategically important projects; • Very often lack of right information to be used by stakeholders to have a clear understanding of the project status, progress , and „forecast‟. • Reason to take drastic, but un-rightful decisions, which can endanger outcome of organisation‟s strategy; note: •It is not the author’s intention to be aligned with whatever existing methodology, nor framework; •„projects‟– in this presentation, „projects‟ can mean projects, programme, or portfolioProject management – view on reporting Juni 2011 page 2 • View on Reporting BVBA
  • 3. Project management – view on reporting • it does not matter who takes up the initiative to implement „View on Reporting‟ in your Organisation: – Project manager – PMO – (executive) Management – Stakeholder(-s) – Project board ( steering committee ) – Or other Abbreviations: PMO - project management officeProject management – view on reporting Juni 2011 page 3 • View on Reporting BVBA
  • 4. Project management – view on reporting • Remarkable observations (after + 20 years of professional project experiences): – Quality of project planning is very poor. – Project planning is a specialty! – Reporting and PM-„understanding‟ is very poor; – Risk management: • less loss of effort; • Less loss of time; • Less loss of money; • Less loss of missed deadlines; • Less loss of window opportunities; • Improve awareness of ECV of project; – Aligning (more) all initiatives (programmes, projects): • Compose a roadmap with all required investment data Abbreviations: ECV - expected commercial valueProject management – view on reporting Juni 2011 page 4 • View on Reporting BVBA
  • 5. Project management – view on reporting • Improving the planning quality; • Reducing the risks, or at least identify the potential risk for organisation‟s strategy; • Improving the resource capacity management (aligning); • Improving the reporting (aligning); • Improving alignment of projects & master plan; • Aligning „initiatives‟ / projects according the pre-set strategy, thus avoiding loss of effort , focus, money and business opportunities (window of opportunity);Project management – view on reporting Juni 2011 page 5 • View on Reporting BVBA
  • 6. Project management – view on reporting • Inform all stakeholders (e.g. operations, management, team leads, pm‟s, business, PMO,…); • Obtain better mutual understanding of „needs‟: – business leads the projects, IT is a service provider!; • Planning: – approach & policy; – naming conventions, other; – capacity (specialised staff) – quality; – tool; • Project process flow – use of PM-tool, or „manual‟- processes?; • Information / instructions: – written instructions, information, education; • And lots of “Good-willing”.Project management – view on reporting Juni 2011 page 6 • View on Reporting BVBA
  • 7. Project management – view on reporting • Reports , on progress, risks, resources (next skills); • Updated project planning; • Alignment of programmes / projects; • Alignment of planning approach: – Planning policy, – Avoid typical errors of planning; • Alignment of reports, EVA (earned value analysis), finance; • Improvement of Business & ICT project performances. • Aligning all kind of efforts , to enable the strategy , market position; – Harvesting all initiatives, projects – Based on business case , (financials, and strategic fit/match, ROI , „what if we not?”-assessment (reference to balanced scorecard „product selection‟); – Compose order of importance (necessity of good outcome per projectProject management – view on reporting Juni 2011 page 7 • View on Reporting BVBA
  • 8. Project management – view on reporting : SET UP BSC •Measuring is knowing; •Define what information is required to be able to assess your project on „total project quality management‟?; •A „best‟ tool is Balanced Scorecards (Kaplan/Norton); •Good defined BSC allows a in-depth view on the projects, thus: •Increasing organisation‟s benefits of outcome of project (application); •Increasing lessons learned for other project initiatives; your organisation will improve project-ability behaviours; •Decreasing failure rates of projects, and consequently , negative impact on organisation‟s strategy; Reference to „Project Management Dynamics” @ SLIDESHARE.net Abbreviations: BSC - Balanced Scorecards (Kaplan & Norton)Project management – view on reporting Juni 2011 page 8 • View on Reporting BVBA
  • 9. view on reporting – some interesting PM criteria criteria that constantly emerge (1/2) : • There is a lot of –valuable - information available when executing a project, but some interesting data has to be excavated, you have to know where to find it, and what to do with; – Time: • Schedule (overall, per phase;) • Schedule performance index [SPI] – Finance • How are we going against budget; • Cost performance index [CPI]; • Earned value analysis [EVA/-M]; • Return on investment [ROI]; • Net present value [NPV]; • Expected commercial value [ECV]; Abbreviations: SPI - schedule performance index CPI - cost performance indexProject management – view on reporting Juni 2011 page 9 • View on Reporting BVBA
  • 10. view on reporting – some interesting PM criteria criteria that constantly emerge (2/2) : • There is a lot of –valuable - information available when executing a project, but some interesting data has to be excavated, and you have to know where to find it; – Resources • How much time are we spending on the project, • How many resources we need (globally, per IT department, roles); • Do we use the available resources; – Scope: Is the scope [creep] in line with expectations (?)/ (!); – Quality (total quality project management – TQPM) • Is the plan realistically built-up; • Number of issues reported; • Are we reviewing and fixing quality problems; note: An organisation with project tradition, has advantages when building up a project minded attitude and a benchmark data-warehouse to assess the projects and improve the project‟s success rate, thus organisation‟s strategy outcome.Project management – view on reporting Juni 2011 page 10 • View on Reporting BVBA
  • 11. view on reporting - TIME Time: How are we going against schedule; – Progress on schedule; – Number of tasks late started; – Number of tasks overdue (not closed); – Number of open tasks; – Metrics & status : traffic light – Define : (these are default values) • number : 1 – 2 : orange • number : 2+ : red – Explain reason: • E.g. technology, resources, errors, training, managementProject management – view on reporting Juni 2011 page 11 • View on Reporting BVBA
  • 12. view on reporting – Finance & COST Cost: How are we going against budget schedule – Earned value management (and assessment) – Progress on schedule (€); – Cash flow; – ROI , pay-back time; – ECV; – Metrics & status : traffic light – % : orange – %+ : red – Define reason to understand Abbreviations: ECV - expected commercial value ROI - return on investment NPV - net present valueProject management – view on reporting Juni 2011 page 12 • View on Reporting BVBA
  • 13. view on reporting – SCHEDULE : SPI “How is schedule against schedule” • Indication for quality of schedule / planning delta CPI % CPI & SPI delta SPI % 10 SPI = BCWP / BCWS 5 • Metrics & status : variance CPI 0 -25 -15 -5 5 15 25 SPI value should be 1 -5 SPI <1 means project is behind schedule -10 -15 variance SPI index of 1.0 or greater is on/above target and considered satisfactory • Define reason (e.g. over-/ Note: under-estimated tasks, wrong schedule techniques, Figure is a combined graphic, both CPI and SPI Abbreviations: SPI - schedule performance index BCWP - budgeted cost of work performed BCWS - budgeted cost of work scheduledProject management – view on reporting Juni 2011 page 13 • View on Reporting BVBA
  • 14. view on reporting – EVA - COST : CPI “How is cost against cost” • The CPI shows the ratio of budgeted (or baseline) costs of work performed to actual costs of work performed, up to the project status date or todays date. delta CPI % CPI & SPI CPI = BCWP / ACWP delta SPI % 10 5 • Metrics & status : variance CPI 0 CPI value should be 1 -25 -15 -5 5 15 25 Variances: -5 CPI < 1 means project is over -10 budget -15 variance SPI index of 1.0 or greater is on/above target and considered satisfactory • identify reason(-s) (e.g. over-/ under-estimated costs, wrong cost expenditure techniques, Abbreviations: EVA - earned value analysis CPI - cost performance index BCWP - budgeted cost of work performed ACWP - actual cost of work performedProject management – view on reporting Juni 2011 page 14 • View on Reporting BVBA
  • 15. view on reporting – EVA - COST & SCHEDULE “How is cost against cost” • The CSI shows the ratio of budgeted (or baseline) costs of work performed to actual costs of work performed, up to the project status date or todays date. delta CPI % CPI & SPI CSI = CPI x SPI delta SPI % 10 5 • Metrics & status : variance CPI 0 CSI value should be 1 -25 -15 -5 5 15 25 -5 -10 -15 variance SPI Variances: index of 1.0 or greater is on/above target and considered satisfactory CSI <> 1 means project is less likely to be „recoverable‟ Abbreviations: EVA - earned value analysis CSI - cost schedule index BCWP - budgeted cost of work performed ACWP - actual cost of work performedProject management – view on reporting Juni 2011 page 15 • View on Reporting BVBA
  • 16. view on reporting – budget milestones (or phases) Every milestone (or phase) has a budget (baseline), vs actual budget (€ , man-days) Milestones budget tracking 3000 100% 90% 2500 Rationale: 80% 70% •quality check of budget planning; 2000 60% % variance ManDays Explanation: 1500 50% 97% •close follow up of milestone planned manhrs 40% 1000 budget, planned (baseline) vs spent mandhrs 30% actuals variance 20% 500 •A possible understanding why 10% 0% 0% 9% (when) project budget has 0 0% deviations vs baseline Initiate Define Design Build Implement Close Phase / Milestone •Explanation: a prognosis of total budget spent (at completion) note: phases - typical naming by Prince 2Project management – view on reporting Juni 2011 page 16 • View on Reporting BVBA
  • 17. view on reporting – budget man-days vs man-days Baseline planned man-days vs actual man-days project progress : mandays 10 number staff 5 project progress : mandays 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 reporting cycle % baseline (abs) 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Rationale: baseline (abs) reporting cycle actual (abs) •quality check of planning: most realistic plannings have a specific wave-profile: •Explanation: unrealistic growth (variations) of staff on project •A possible understanding why project has deviations vs baseline •Explanation: planned resources vs actual resources •Identifies reason of „late‟ of project : not enough man-hours „produced‟ •Reason of deviations have to be identified and explainedProject management – view on reporting Juni 2011 page 17 • View on Reporting BVBA
  • 18. view on reporting – budget man-days vs man-days Baseline planned man-days vs actual man-days project progress : mandays 10 Planned (Man Hrs / week) 450 number staff 400 5 350 Planned (Man Hrs) 300 Manhrs Week 250 0 200 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 150 baseline (abs) reporting cycle 100 50 0 2 5 8 33 36 39 42 45 48 51 11 14 17 20 23 26 29 32 35 38 41 44 47 50 Rationale: •quality check of planning: most realistic plannings have a specific wave-profile: •Explanation: unrealistic growth (variations) of staff on project •A possible understanding why project has deviations vs baseline •Explanation: planned resources vs actual resources •Identifies reason of „late‟ of project : not enough man-hours „produced‟ •Reason of deviations have to be identified and explainedProject management – view on reporting Juni 2011 page 18 • View on Reporting BVBA
  • 19. view on reporting – budget milestones (or phases) Baseline budget (€ or man-days) vs actual value (cumulated , %) project progress : mandays (cumulative) 100 90 80 70 60 % 50 40 30 20 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 baseline reporting cycle actual Rationale: Tracking of progress (man-days, % complete, €, and other) vs baseline Explanation: visual follow up, easy to understand, and to communicate; A possible understanding why project has deviations vs baseline Explanation: using other tools, understand why project has deviationsProject management – view on reporting Juni 2011 page 19 • View on Reporting BVBA
  • 20. Metric – cost / schedule variance trends Cost / schedule variance trends €Project management – view on reporting Juni 2011 page 20 • View on Reporting BVBA
  • 21. Metric – total quality project management: open tasks Follow up the planned activities vs the actual started activities; Follow up open / non finished tasks, time that these tasks stays un-finished/ open; Description: activities started • Activities too early started (according baseline actual this w eek schedule); activities 0 5 10 15 20 25 • Activities started, prior to closing predecessor started tasks; • Activities started but unfinished (stays “open”/ <100% work complete) Open tasks Graphical view on number of tasks 10 started on time, late, or still open after due date (according planning) 8 Rationale: # open tasks (late) 6 closed (ETC=0) quality check of project open (0<actuals>100%) progress and project 4 not started (late) management 2 Explanation: 0 typically, in a troubled project, mrt/11 apr/11 mei/11 jun/11 jul/11 aug/11 sep/11 okt/11 tasks start, without finishing reporting cycle predecessor / prior tasks;Project management – view on reporting Juni 2011 page 21 • View on Reporting BVBA
  • 22. Metric – EVA : budget at completion project progress : budget [€] & mandays 250 10 baseline [€] 200 actual [€] baseline budget 150 baseline [md] actuals [md] 5 reserved budget 100 50 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 reporting cycle Rationale: •Visual quality status check of project progress (man-days and €) •Explanation: in an eye blink, a status report to communicate; •A projection of estimated budget at completion is available; •Additionally, contingency (both € and man-days) can be added on chart; and if used, it can be shown as a decreasing line.Project management – view on reporting Juni 2011 page 22 • View on Reporting BVBA
  • 23. TQPM – staffing management pm developper staff: capacity vs scheduled business analyst tester 1500 business representative developper (scheduled) business analyst (scheduled) tester (scheduled) business representative (scheduled) pm (scheduled) 1000 monthly hours 500 0 jan/00 jan/00 jan/00 jan/00 jan/00 jan/00 jan/00 jan/00 Rationale: reporting cycle •quality check of resources planning •Explanation: based on available resources , vs assigned resources; the number of „man-days‟ available and the number of man-days assigned , and planned. This should be done per role or function; “too many/ not enough staff (specific role) for a certain project , or certain timeframe” •Resources management: •When well managed, in combination of the project plans (and roadmap) an early warning system for hiring / firing staff; •Upfront check if sufficient resources according the scheduled needs.Project management – view on reporting Juni 2011 page 23 • View on Reporting BVBA
  • 24. TQPM – staffing management (per role / function) staff: capacity vs scheduled 1500Level:•Project 1000 monthly hours•Programme•portfolio 500 0 mrt/11 apr/11 mei/11 jun/11 jul/11 aug/11 sep/11 okt/11 reporting cycle Rationale: Resources planning: •Explanation: based on pipeline (projection) a clear view on expected variances on resources (function) for the next phases (in time). •Better „serieux‟ of overall planning; •Better ratio on successful outcome of project (assigned staff) , and outcome of programme / strategy; •Better understanding of cashflow (actual fiscal year) , cash reservation (for next fiscal year);Project management – view on reporting Juni 2011 page 24 • View on Reporting BVBA
  • 25. TQPM – meeting functional requirements What is the scope of the project?! What is quality / success rate of the project? What is to be assessed during the project review meetings/process? Rationale: An important project quality success indication is the number of met requirements. This can be: Functional requirements , tangible and intangible, operations, up-time , availability, mean time between failures, matching with technology policy, … •Define clear user requirements •Identify , quantify , ‘name it ! ‘ •List requirements; •Build metrics; •Test or assess during review meetings; •Report; •Validate the met requirements versus the requirements defined; •Prioritise the application / project outcome; •PDCA (plan-do-check-act); •Set up improvement project.Project management – view on reporting Juni 2011 page 25 • View on Reporting BVBA
  • 26. TPQM – meeting competency models What is the applied or to be technology of the project / organisation?! What is the competency level of our staff / organisation? How measuring? Certificates rate? Number of staff certificated? Rationale: An important organisation’s quality success indication is the number of skilled / trained staff to meet the required technology skills ? This can be: Technology, skills, tangible or intangible, … •Define clear skills requirements (technology, other skills), based on defined strategy; •Identify , quantify , ‘name it ! ‘ •List requirements; •Build metrics; •Test or assess during review meetings; •Report; •Validate the met requirements versus the requirements defined; •Prioritise the training initiatives (or hire the required skills); •PDCA (plan-do-check-act); •Set up improvement programme.Project management – view on reporting Juni 2011 page 26 • View on Reporting BVBA
  • 27. view on reporting – ‘Logic’ - diagram logic planning compositionRationale: Critical Path method (elapsed time)•quality check of planningExplanation:•optimising or reducing elapsed timeby logically flow of milestones.Abbreviations:CPM – Critical Path MethodFQT – final qualification testingFAT – factory acceptance testPOC – proof of conceptProject management – view on reporting Juni 2011 page 27 • View on Reporting BVBA
  • 28. Metrics: progress (cumulative) • Schedule: How is actual against baseline (cumulative) • Metrics & status : indication how actuals are evolving against baseline ; • % variance (+ / - ) project progress : mandays (cumulative) 100 90 80 70 60 % 50 % 40 behind 30 20 # cycles late 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 baseline reporting cycle actual Period late or early; Indication of % deviation, or better, time of deviation (ahead or late vs baseline schedule); Use other diagrams to examine reason (e.g. over-/ under-estimated tasks, insufficient # staff,…Project management – view on reporting Juni 2011 page 28 • View on Reporting BVBA
  • 29. Metrics: progress (cumulative) • Schedule: How is actual against baseline (cumulative) • Metrics & status : indication how actuals are evolving against baseline ; project progress : mandays 10 # manday / reporting cycle 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 baseline (abs) reporting cycle actual (abs) „late‟ due to insufficient # of man-days „produced‟. Use other diagrams to examine reason : lack of staff staff (not assigned , illness,…)Project management – view on reporting Juni 2011 page 29 • View on Reporting BVBA
  • 30. Metrics: progress (cumulative) • Schedule: How is actual against baseline (cumulative) • Metrics & status : indication how actuals are evolving against baseline ; project progress : development - mandays 10 # manday / reporting cycle 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 baseline (abs) reporting cycle actuals development staff „late‟ due to insufficient # of man-days „produced‟ : development staff. Use other diagrams to examine reason : lack of staff staff (not assigned , illness,…)Project management – view on reporting Juni 2011 page 30 • View on Reporting BVBA
  • 31. Metrics: progress (cumulative) • Schedule: How is actual against baseline (cumulative) • Metrics & status : indication how actuals are evolving against baseline ; staff: capacity vs scheduled 300 8 7 250 6 200 monthly hours 5 development (planned work) 150 4 development (assigned staff - max 3 100 manhours) development actuals (manhours/week) 2 50 developpment ( # assigned staff) 1 0 0 mrt/11 apr/11 mei/11 jun/11 jul/11 aug/11 sep/11 okt/11 reporting cycle • 3 given data involved: work to be done (scheduled), # available/assigned resources, realised work by the assigned resources (actuals)= NEED TO BE BALANCED • „late‟ due to insufficient # of man-days „produced‟ : development staff. • Use other diagrams to examine reason : lack of staff staff (not assigned , illness,…)Project management – view on reporting Juni 2011 page 31 • View on Reporting BVBA
  • 32. Metrics: progress (cumulative) • Schedule: How is actual against baseline (cumulative) • Metrics & status : indication how actuals are evolving against baseline ; project progress : functional analyst - mandays 10 # manday / reporting cycle 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 baseline (abs) reporting cycle actuals functional analyst staff „late‟ due to insufficient # of mandays „produced‟ : functional analyst. Use other diagrams to examine reason : lack of staff staff (not assigned , illness,…)Project management – view on reporting Juni 2011 page 32 • View on Reporting BVBA
  • 33. Metrics: progress (cumulative) project progress : mandays • Schedule: How is actual against baseline (cumulative) 100 90 • Metrics & status : indication 80 how actuals are evolving 70 60 against baseline ; % 50 40 • % variance (+ / - ) 30 • Period late or early; 20 10 baseline actual – Indication of % 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 deviation, or better, time reporting cycle of deviation (ahead or late vs schedule); • Use other diagrams to examine reason (e.g. over-/ under-estimated tasks, wrong schedule techniques, EVA Rationale: •quality check of project progress and project management •Explanation: typically, in a troubled project, tasks start, without finishing predecessor / prior tasks; •Reporting of progress to „all‟ stakeholders , eventually with coloured „deliverables‟;Project management – view on reporting Juni 2011 page 33 • View on Reporting BVBA
  • 34. TQPM – Finance / ROI Rationale: •Quality check of project ROI •Important to be defined in „project charter‟ (financial feasibility). •Calculating the ROI , based on assumptions when defining the project charter (project investments , and operational costs (maintenance, and evolving maintenance) [forecast cash flows] Return on Investment (2011 - 2014) 4000000 cost & benefit prognosis 3000000 2000000 costs (assued) 1000000 benefits (assumed) 0 initial 2011 2011 2012 2012 2013 2013 2014 2014 - Q2 - Q4 - Q2 - Q4 - Q2 - Q4 - Q2 - Q4 Project / Application Life CycleProject management – view on reporting Juni 2011 page 34 • View on Reporting BVBA
  • 35. TQPM – Finance / ROI Rationale: •quality check of project ROI •Could be of importance when „re-assessing‟ the desirability of the project outcome , by the stakeholder(-s). Stop of go decision Return on Investment (2011 - 2014) 4000000 cost & benefit prognosis 3000000 2000000 costs (assued) 1000000 benefits (assumed) benefits (actual) 0 costs (actual) initial 2011 2011 2012 2012 2013 2013 2014 2014 Lineair (benefits (actual)) - Q2 - Q4 - Q2 - Q4 - Q2 Lineair (costs Q2 - Q4 - (actual)) - Q4 -1000000 Project / Application Life CycleProject management – view on reporting Juni 2011 page 35 • View on Reporting BVBA
  • 36. TQPM – Metrics: Finance / NPV scoreboard using NPV to rank and prioritise project selection project PV Development Commercialisation NPV Ranking decision (present cost cost (net based on value of present NPV future value) earnings) alpha 30 3 5 22 4 hold beta 64 5 2 57 2 go gamma 9 2 1 6 5 hold delta 3 1 0,5 1,5 6 hold echo 50 5 3 42 3 hold foxtrot 66 10 2 58 1 goProject management – view on reporting Juni 2011 page 36 • View on Reporting BVBA
  • 37. TQPM – Metrics: Finance / NPV scoreboard ranking projects according to the NPV-based productivity index project NPV development Productivity index = Sum of decision cost NPV / development development cost costs beta 57 5 11,4 5 hold echo 42 5 8,4 10 hold alpha 22 3 7,3 13 hold Limit reached* foxtrot 58 10 5,8 23 drop gamma 6 2 3 25 drop delta 1,5 1 1,5 26 drop * : productivity index is used to rank projects until out of resources (€ 15 m) in development costs is reached. * : value of the portfolio is NPV = € 121m from these 3 projects.Project management – view on reporting Juni 2011 page 37 • View on Reporting BVBA
  • 38. TQPM – Metrics: Finance / ECV – determining the expected commercial value of a project Abbreviations: ECV – Expected Commercial ValueProject management – view on reporting Juni 2011 page 38 • View on Reporting BVBA
  • 39. TQPM – Metrics: Finance / ECV - Determination of Expected Commercial Value (ECV) of Project – Use Decision Tree Analysis Commercial Success € PV Technical P cs Yes Success Launch Pts €C No € ECV Development Yes €D Commercial No Failure Technical Failure ECV = [(PV x P - C cs ) x Pts- D] € ECV = expected Commercial Value of project P ts = probability of technical success P cs = probability of commercial success (given technical success) €D = development costs remaining in the project €C = commercialisation (launch) costs (if not into project budget) € PV = present value of project‟s future earnings (discounted to today)Project management – view on reporting Juni 2011 page 39 • View on Reporting BVBA
  • 40. METRICS : overall budget versus spent versus spent ‘reserved-’budget project progress : budget [€] & mandays 100 80 60% 40 20 baseline [€] 0 actual [md] 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 baseline budget reporting cycle baseline [md]Project management – view on reporting Juni 2011 page 40 • View on Reporting BVBA
  • 41. METRICS : financial - EVA What? • Measure of project progress; • Forecast completion date and final cost; • Provide schedule and budget variances: • By integrating 3 measurements, EVA provides consistent, numerical indicator with which you can evaluate and compare projects. Key: • Where are we on schedule? • Where are we on budget? • Where are we on work accomplished? Abbreviations: EVA – Earned Value AnalysisProject management – view on reporting Juni 2011 page 41 • View on Reporting BVBA
  • 42. METRICS : financial - EVA How? • It compares the „planned‟ amount of work with what has actually been completed, to determine if COST , SCHEDULE, and WORK ACCOMPLISHED are progressing as planned • Work is „EARNED‟ as it is … 100% completed EVA gives a uniform unit of measure: € or man-days EVA provides an „EARLY WARNING” for prompt corrective actions Example: 30% time spent 30% € spent Equals 30% work performed ? Not necessarily ! Abbreviations: EVA – Earned Value AnalysisProject management – view on reporting Juni 2011 page 42 • View on Reporting BVBA
  • 43. METRICS : financial - EVA Abbreviations: EVA – Earned Value Analysis BCWS – budgeted cost of work performed planned cost of the total amount of work scheduled to be performed by milestone date ACWP – actual cost of work performed cost incurred to accomplish the work that has bee done to date BCWP – budgeted cost of work performed planned (not actual) cost to complete the work that has been doneProject management – view on reporting Juni 2011 page 43 • View on Reporting BVBA
  • 44. METRICS : financial - EVA Some more abbreviations: SV - Schedule Variance (BCWP – BCWS) comparison of amount of work performed during a given period of time to what was scheduled to be performed Negative variance means that the project is behind schedule CV – Cost Variance (BCWP – ACWP) comparison of the budgeted cost of work performed with actual cost negative variance means that the project is over budget Example: Schedule Variance = BCWP – BCWS Cost Variance = BCWP - ACWPProject management – view on reporting Juni 2011 page 44 • View on Reporting BVBA
  • 45. Total Quality Project Management : schedule sanity check “How realistic is the schedule” Indication for quality of project progress : mandays schedule; 10 • Slope is sinusoidal: • Increase and decrease of number staff number of team members in 5 project is controlled manner; 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 baseline (abs) reporting cycle project progress : mandays 10 Rationale: „Very‟ Early warning number staff Explanation 5 A quality check for a realistic schedule. For example a project schedule with this curve is doomed to fail. The number of mandays is equal for both 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 schedules. baseline (abs) reporting cycleProject management – view on reporting Juni 2011 page 45 • View on Reporting BVBA
  • 46. Total Quality Project Management : Milestone chart (Deliverables Chart) Deliverables Chart Purpose: sep/11 •Management communication jul/11 Deliverables dates •Interdependencies communication jun/11 apr/11 Business Requirements Functional Design feb/11 Coding & Testing Launch jan/11 nov/10 baseline 28/02/2011 31/03/2011 30/04/2011 31/05/2011 reporting cycle Rationale: Early warning Explanation When a (first) milestone has been missed, very probably, following milestones will be delayed too. Inclusive the closure milestone. This chart will help to show and understand the moving milestones (pushed away in time) and indicates a new „closure‟ date.Project management – view on reporting Juni 2011 page 46 • View on Reporting BVBA
  • 47. Total Quality Project Management : average costs of project team members , evolutive Purpose: •Follow up of average costs of IT profiles; Average day •Influence contract negotiations of –external- IT staff ; rate (€) per month. •Control of budget. Totaal 910 900 890 Astitel 880 Totaal 870 860 850 840 Rationale: 707 708 709 710 711 712 801 802 803 804 cost improvement Explanation Follow up of contract costs of IT staff, and potentially re-negociate contracts; In case of increasing contract costs, it could have impact on project budget; This chart will help to show and understand the evolution of average hiring costs of IT staff.Project management – view on reporting Juni 2011 page 47 • View on Reporting BVBA
  • 48. Total Quality Project Management : number of external project team members , evolutive Purpose: internal versus external project staff •Follow up of number of external 15 project staff; •Influence contract negotiations of –external- IT staff ; 10 # project staff •Optimising of available staff 5 internal staff (#) external staff (#) 0 baseline apr/11 jun/11 aug/11 okt/11 dec/11 Project Life Cycle Rationale: cost improvement Explanation Follow up of contract costs of IT staff, and potentially re-negociate contracts; In case of increasing contract costs, it could have impact on project budget; This chart will help to show and understand the evolution of number of external staff, the hiring costs of IT staff. And more important , it could help to optimising resources, when done on programme/portfolio level: future needs of external staffProject management – view on reporting Juni 2011 page 48 • View on Reporting BVBA
  • 49. Total Quality IT / asset Management : TCO of applications, infrastructure, and maintenance related costs (existing IT-infrastructure) Not entirely in scope of this presentation , but…. Purpose: •Management decisions •Optimising of portfolio, and asset management. •Strategic IT management •TCO (total cost of ownership) •Technology follow up (don‟t stay behind the competition) Rationale: knowing when to make a technology switch („warning‟) Explanation Assessing the existing technology applied in IT infrastructure (hardware and software); List the known expenses for each of the configuration item; Controlling the total cost of ownership of each configuration item; Knowing at the right moment when to switch to other technology; Plan(-ned) investment: less unlucky surprises; Add to roadmap: know what resources will be needed (fiscal year, staffing, priority);Project management – view on reporting Juni 2011 page 49 • View on Reporting BVBA
  • 50. TQPM : Balanced scorecard (new product project selection) • Factor 1: strategic fit and importance • Factor 2: product and competitive advantage • Factor 3: market attractiveness • Factor 4: core competencies leverage • Factor 5: technical feasibility • Factor 6: financial reward versus riskProject management – view on reporting Juni 2011 page 50 • View on Reporting BVBA
  • 51. TQPM : Balanced scorecard (new product project selection) • Factor 1: Strategic fit and importance – Alignment of project with business‟s strategy – Importance of project to the strategy – Impact on the businessProject management – view on reporting Juni 2011 page 51 • View on Reporting BVBA
  • 52. TQPM : Balanced scorecard (new product project selection) • Factor 2: product and competitive advantage – Product delivers unique customer or user benefits – Product offers customer / user excellent value for money – Competitive rationale for project – Positive customer / user feedback on product concept (concept test results) Driver: ECV – expected commercial value ROI – return on investmentProject management – view on reporting Juni 2011 page 52 • View on Reporting BVBA
  • 53. TQPM : Balanced scorecard (new product project selection) • Factor 3: Market attractiveness – Market size – Market growth and future potential – Margins earned by players in this market – Competitiveness – how tough and intense competition is • Factor 4: core competencies leverage – Project leverages our core competencies and strengths in: • Technology • Production / operations • Marketing • Distribution / sales forceProject management – view on reporting Juni 2011 page 53 • View on Reporting BVBA
  • 54. TQPM : Balanced scorecard (new product project selection) • Factor 5: Technical feasibility – Size of technical gap – Familiarity of technology to our business – Newness of technology (base to embryonic) – Technical complexity – Technical results to date (proof of concept) • Factor 6: financial reward versus risk – Size of financial opportunity – Financial return (npv , ecv) – Productivity index – Certainty of financial estimates – Level of risk and ability to address risks Abbreviations: NPV – net present value ECV – expected commercial valueProject management – view on reporting Juni 2011 page 54 • View on Reporting BVBA
  • 55. TQPM : Balanced scorecard (new product project selection) Some „play-‟rules: • Projects are scored by the gatekeepers (senior management) at the gate meeting using these six factors on a scorecard (0-10 scales); • The scores are tallied, averaged across the evaluators, and displayed for discussion; • The project attractiveness score (PAS) is the weighted or un- weighted addition of the scores, taken out of 100; • A PAS score of 60/100 is usually required for a go decision.Project management – view on reporting Juni 2011 page 55 • View on Reporting BVBA
  • 56. TQPM : Balanced scorecard (new product project selection) Some „play-‟rules: • Projects are scored by the gatekeepers (senior management) at the gate meeting using these six factors on a scorecard (0-10 scales); • The scores are tallied, averaged across the evaluators, and displayed for discussion; • The project attractiveness score (PAS) is the weighted or unweighted addition of the scores, taken out of 100; • A PAS score of 60/100 is usually required for a go decision.Project management – view on reporting Juni 2011 page 56 • View on Reporting BVBA
  • 57. What is needed , what is to understand • For all the shown graphical support tools, a proper planning is required, according to some applied planning guidelines; • For all the shown graphical support tools, a proper follow up (progress capturing, man-days, financial data) is required; • And proper project management (skills); BUT: • It is not necessary to have all these graphical analysis tools, use what is needed to execute your project, programme, portfolio.Project management – view on reporting Juni 2011 page 57 • View on Reporting BVBA
  • 58. Time is up. Much more to talk about this interesting topic…. Questions ? ? ? ?? ??? ? ? Linkedin Jan Biets - Jan_biets@hotmail.com - +32(0)477 329011Project management – view on reporting Juni 2011 page 58 • View on Reporting BVBA

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