Your SlideShare is downloading. ×
0
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Presentation
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Presentation

391

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
391
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
22
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Notes to Presenter: This presentation includes: An introduction to HIPAA legislation An overview of Keane’s HIPAA solutions A description of Keane’s HIPAA thought leadership A sampling of Keane’s healthcare industry and HIPAA clients Benefits achieved by working with Keane to manage a HIPAA compliance program The presentation can be used to introduce Keane’s HIPAA service to your existing clients. If presenting to a new account, you may want to add a Keane overview. Feel free to contact Marketing for assistance with additional slides. Developed by: Keane’s Marketing Department March 2002
  • Notes to Presenter: This presentation includes: An introduction to HIPAA legislation An overview of Keane’s HIPAA solutions A description of Keane’s HIPAA thought leadership A sampling of Keane’s healthcare industry and HIPAA clients Benefits achieved by working with Keane to manage a HIPAA compliance program The presentation can be used to introduce Keane’s HIPAA service to your existing clients. If presenting to a new account, you may want to add a Keane overview. Feel free to contact Marketing for assistance with additional slides. Developed by: Keane’s Marketing Department March 2002
  • Notes to Presenter: This presentation includes: An introduction to HIPAA legislation An overview of Keane’s HIPAA solutions A description of Keane’s HIPAA thought leadership A sampling of Keane’s healthcare industry and HIPAA clients Benefits achieved by working with Keane to manage a HIPAA compliance program The presentation can be used to introduce Keane’s HIPAA service to your existing clients. If presenting to a new account, you may want to add a Keane overview. Feel free to contact Marketing for assistance with additional slides. Developed by: Keane’s Marketing Department March 2002
  • Notes to Presenter: This presentation includes: An introduction to HIPAA legislation An overview of Keane’s HIPAA solutions A description of Keane’s HIPAA thought leadership A sampling of Keane’s healthcare industry and HIPAA clients Benefits achieved by working with Keane to manage a HIPAA compliance program The presentation can be used to introduce Keane’s HIPAA service to your existing clients. If presenting to a new account, you may want to add a Keane overview. Feel free to contact Marketing for assistance with additional slides. Developed by: Keane’s Marketing Department March 2002
  • Transcript

    1. Fixed Price Project – Friend or Foe Frank Mooney, PMP President Mooney Consulting Group, Inc. Office: (727) 938-0067 Mooney Consulting Group, Inc. M “ Let Our Management Experience Work For You!”
    2. “ Fixed Price projects are like jumping from a plane without a parachute… both have little chance of success .” Comment made at a roundtable discussion
    3. Introduction <ul><li>Project Management For Over 23 Years </li></ul><ul><li>Director For An IT Consulting Firm For 12 Years </li></ul><ul><li>Enterprise Technology Partners – Director, Management Consulting </li></ul><ul><li>Work With Hundreds Of Companies </li></ul><ul><ul><li>Good, Bad and the Ugly </li></ul></ul><ul><li>Very Mature Best Practice Repository </li></ul>
    4. Agenda <ul><li>Quick Facts </li></ul><ul><li>Pricing – The Reality </li></ul><ul><li>Fixed Price Strategy </li></ul><ul><li>Summary </li></ul><ul><li>Questions And Answers </li></ul>
    5. Quick Facts… Projects Overall <ul><li>9 Out Of 10 Projects Fail To Deliver Expected Results </li></ul><ul><li>4 Out Of 10 Fail To Deliver ANY Results </li></ul><ul><li>Cost Of Business In Terms Of Time, Wasted Resources And Money… Enormous!!! </li></ul><ul><li>Most Projects Optimistically Report Being On Time And On Budget – Until Reality Set In </li></ul><ul><li>REALITY: Magnified For Fixed Price Projects!!! </li></ul>
    6. Time and Materials vs. Fixed Price <ul><li>Time and Materials (T&M) </li></ul><ul><ul><li>Buyer agrees to pay a rate for time spent by the vendor to complete and deliver a set of products </li></ul></ul><ul><ul><li>More likely well-defined… More successful </li></ul></ul><ul><ul><li>Buyer has incentive to control scope… costs </li></ul></ul><ul><li>Fixed Price </li></ul><ul><ul><li>Vendor and buyer agree on a price the buyer will pay for a set of products that the vendor will produce and deliver </li></ul></ul><ul><ul><li>Shift risk management to vendor… comes with a price!!! </li></ul></ul><ul><ul><li>Little incentive to buyer to finish project </li></ul></ul><ul><ul><li>Emphasis on cost not functionality </li></ul></ul>
    7. Top Reasons and Reality <ul><li>Unsure of Requirements </li></ul><ul><ul><li>How can you fix price what you do not know????? </li></ul></ul><ul><ul><li>Fix Price requirements… first step </li></ul></ul><ul><li>Unload Responsibility </li></ul><ul><ul><li>Comes with a price </li></ul></ul><ul><li>Predict Costs </li></ul><ul><ul><li>What about Quality??? </li></ul></ul><ul><ul><li>Vendor worse case scenario </li></ul></ul>
    8. Typical Fixed Price Project Pricing Model <ul><li>Consists of Three Parts: </li></ul><ul><ul><li>Estimate </li></ul></ul><ul><ul><ul><li>Hours per resource per deliverable plus margin </li></ul></ul></ul><ul><ul><li>Fixed Price Premium </li></ul></ul><ul><ul><ul><li>Cost of taking responsibility… Don’t Know What I Don’t Know!!!! </li></ul></ul></ul><ul><ul><ul><li>Average 25% </li></ul></ul></ul><ul><ul><ul><li>NOT A CHANGE BUDGET… when to stop </li></ul></ul></ul><ul><ul><li>Assumptions/Risks </li></ul></ul><ul><ul><ul><li>Costs of potential risk to the project </li></ul></ul></ul><ul><ul><ul><li>Priced individually </li></ul></ul></ul><ul><ul><ul><li>Average (15%) </li></ul></ul></ul>SUMMARY… WORSE CASE SCENARIO!!!
    9. Potential Project Risks <ul><li>1. Overall </li></ul><ul><ul><li>• New Technology </li></ul></ul><ul><ul><li>• Functional Complexity </li></ul></ul><ul><ul><li>• New vs. Replacement </li></ul></ul><ul><ul><li>• Leverage on Company </li></ul></ul><ul><ul><li>• Intensity of Business Need </li></ul></ul><ul><ul><li>• Interface Existing Applications </li></ul></ul><ul><ul><li>• Number of User Departments </li></ul></ul><ul><li>2. People </li></ul><ul><ul><li>• Staff Availability </li></ul></ul><ul><ul><li>• Commitment of Team </li></ul></ul><ul><ul><li>• Team Morale </li></ul></ul><ul><ul><li>• Applications Knowledge </li></ul></ul><ul><ul><li>• Client IS Knowledge </li></ul></ul><ul><ul><li>• Technical Skills Availability </li></ul></ul><ul><ul><li>• Staff Conflicts </li></ul></ul><ul><ul><li>• Senior Management Commitment </li></ul></ul><ul><ul><li>• Project Manager Experience </li></ul></ul><ul><li>3. Estimate Time & Costs </li></ul><ul><ul><li>• Quality of Information Available </li></ul></ul><ul><ul><li>• Dependability on other projects </li></ul></ul><ul><ul><li>• Conversion Difficulty </li></ul></ul><ul><ul><li>• End-date Dictate </li></ul></ul><ul><ul><li>• Conflict Resolution Mechanism </li></ul></ul><ul><ul><li>• Continued Budget Availability </li></ul></ul><ul><ul><li>• Project Standards Used </li></ul></ul><ul><li>4. Break the Job Down </li></ul><ul><ul><li>• Large/Small Project </li></ul></ul><ul><ul><li>• Size of Team </li></ul></ul><ul><ul><li>• Geographic Dispersion </li></ul></ul><ul><ul><li>• Reliability of Personnel </li></ul></ul><ul><ul><li>• Availability of Support Organization </li></ul></ul><ul><ul><li>• Availability of Champion </li></ul></ul><ul><ul><li>• Project Manager Availability </li></ul></ul><ul><li>5. Change Procedure </li></ul><ul><ul><li>• Vulnerability to Change </li></ul></ul><ul><ul><li>• Stability of Business Area </li></ul></ul><ul><ul><li>• Organizational Impact </li></ul></ul><ul><ul><li>• Tight Time Frame </li></ul></ul><ul><ul><li>• Turnover of Key People </li></ul></ul><ul><ul><li>• Change Budget Accepted </li></ul></ul><ul><ul><li>• Change Process Accepted </li></ul></ul><ul><ul><li>• Charge Back System </li></ul></ul><ul><ul><li>• Accountability for Change </li></ul></ul><ul><li>6. Acceptance Criteria </li></ul><ul><ul><li>• Level of Client Commitment </li></ul></ul><ul><ul><li>• Client Attitude toward IS </li></ul></ul><ul><ul><li>• Readiness for Takeover </li></ul></ul><ul><ul><li>• Client Design Participation </li></ul></ul><ul><ul><li>• Client Participation in Acceptance </li></ul></ul><ul><ul><li>• Client Proximity to IS </li></ul></ul><ul><ul><li>• Acceptance Process </li></ul></ul>
    10. Typical Fixed Price Project Pricing Model - Example GOAL: Reduce Fixed Price and Risk Premiums
    11. Fixed Price Strategy Flow Definition Discovery Start-up Execution Closure Supporting Processes/Templates RFP Template RFP Checklist Fixed Price Checklist Vendor Evaluation Checklist Discovery Report Template Management for: Schedule Communication Issues Risks Change Acceptance Quality Metrics Template Project Status Summary Template Monthly Project Review Agenda Mini-Audit Checklist Full-Audit Checklist Post Project Review Report Template Phases
    12. Fixed Price Strategy Flow Definition Discovery Start-up Execution Closure Supporting Processes/Templates RFP Template RFP Checklist Fixed Price Checklist Vendor Evaluation Checklist Discovery Report Template Management for: Schedule Communication Issues Risks Change Acceptance Quality Metrics Template Project Status Summary Template Monthly Project Review Agenda Mini-Audit Checklist Full-Audit Checklist Post Project Review Report Template Phases
    13. Definition Plan for Fixed Price Discovery Phase AND Request Fixed Price Bid for Overall Project Definitive Enough (FP Checklist) Create and Approve RFP No Yes Define Fixed Price Project More Definition Available No Yes Identify and Distribute RFP to Vendors Develop Evaluation Criteria Vendor Questions And Answers Receive And Evaluate Responses Select Vendor(s)
    14. Fixed Price Strategy Flow Definition Discovery Start-up Execution Closure Supporting Processes/Templates RFP Template RFP Checklist Fixed Price Checklist Vendor Evaluation Checklist Discovery Report Template Management for: Schedule Communication Issues Risks Change Acceptance Quality Metrics Template Project Status Summary Template Monthly Project Review Agenda Mini-Audit Checklist Full-Audit Checklist Post Project Review Report Template Phases
    15. Discovery <ul><li>PEEL BACK THE ONION… Give the vendor an opportunity to address Risks/Assumptions/Concerns… </li></ul><ul><li>Three Sessions </li></ul><ul><ul><li>Management Sessions </li></ul></ul><ul><ul><ul><li>Identify and confirm the Organization, Management Approach, Scope of Effort, Critical Success Factors </li></ul></ul></ul><ul><ul><li>Operational Sessions </li></ul></ul><ul><ul><ul><li>Designed to help the Vendor understand how all the pieces fit together… big picture </li></ul></ul></ul><ul><ul><ul><li>Understand the technical characteristics of the environment </li></ul></ul></ul><ul><ul><li>User Sessions </li></ul></ul><ul><ul><ul><li>Confirm the information provided by IS and highlight any discrepancies for clarification and discussion </li></ul></ul></ul><ul><ul><ul><li>Define business expectations and requirements </li></ul></ul></ul><ul><ul><ul><li>Understand the interfaces between the business and IS groups </li></ul></ul></ul>
    16. Discovery (continued) <ul><li>Wrap-up Sessions And Deliverables </li></ul><ul><ul><li>Revised Fixed Price Proposal </li></ul></ul><ul><ul><ul><li>Fully defined in/out of Scope </li></ul></ul></ul><ul><ul><ul><li>Defined Critical Success Factors </li></ul></ul></ul><ul><ul><ul><li>Technical Approach </li></ul></ul></ul><ul><ul><li>Revised Schedule </li></ul></ul><ul><li>Benefit… Evaluating Your Comfort Level </li></ul><ul><li>Decision Time </li></ul><ul><ul><li>Move forward or re-bid </li></ul></ul>
    17. Fixed Price Strategy Flow Definition Discovery Start-up Execution Closure Supporting Processes/Templates RFP Template RFP Checklist Fixed Price Checklist Vendor Evaluation Checklist Discovery Report Template Management for: Schedule Communication Issues Risks Change Acceptance Quality Metrics Template Project Status Summary Template Monthly Project Review Agenda Mini-Audit Checklist Full-Audit Checklist Post Project Review Report Template Phases
    18. The Traditional Project Triangle Schedule Cost Scope
    19. Start-up… Defining The Box WHO HOW WHEN WHAT Roles and Responsibility Scope and Critical Success Factors Schedule Technical And Management Approach Statement of Work
    20. Start-up… Schedule Management <ul><li>Best Practice: 90 Day Projects </li></ul><ul><li>Project Plans Often Do Not Reflect Deliverables </li></ul><ul><ul><li>Fixed Price Projects are tied to deliverables </li></ul></ul><ul><ul><li>Everything should roll-up to a deliverable </li></ul></ul><ul><ul><li>Create Deliverable Based Project Plans </li></ul></ul><ul><li>Percent Complete </li></ul><ul><ul><li>90/10 rule: First 90% of project on track… last 10% takes forever </li></ul></ul><ul><ul><li>Don’t use as driver of status </li></ul></ul><ul><li>Estimate to Complete </li></ul><ul><ul><li>Estimate remainder of each task each week </li></ul></ul><ul><ul><li>Information can raise potential problems with Basis of Estimate (BOE) </li></ul></ul><ul><ul><li>Always have an accurate snapshot </li></ul></ul>
    21. Start-up… Communications Management <ul><li>Details ALL Regularly Scheduled Reports And Meetings </li></ul><ul><li>Should Include The Following: </li></ul><ul><ul><li>Document/Report name </li></ul></ul><ul><ul><li>Recipient </li></ul></ul><ul><ul><li>Purpose/Description </li></ul></ul><ul><ul><li>Process </li></ul></ul><ul><ul><li>Person responsible </li></ul></ul><ul><ul><li>Frequency </li></ul></ul><ul><li>Story </li></ul>
    22. Start-up… Issue vs. Risk <ul><li>The Difference </li></ul><ul><ul><li>Issue… already impacting the cost, time or quality </li></ul></ul><ul><ul><li>Risk… POTENTIAL negative impact to project </li></ul></ul><ul><li>Reality… Very little Time Spent On Risk!!! </li></ul>
    23. Start-up… Issue Management <ul><li>Anyone Can Raise An Issue </li></ul><ul><li>Issue log Should Include: </li></ul><ul><ul><li>Description </li></ul></ul><ul><ul><li>Impact </li></ul></ul><ul><ul><li>Initiator </li></ul></ul><ul><ul><li>Date Originated </li></ul></ul><ul><ul><li>OWNER </li></ul></ul><ul><ul><li>Updates </li></ul></ul><ul><ul><li>Final Resolution </li></ul></ul><ul><li>Review Log Weekly </li></ul><ul><li>Closed Only After Initiator is Comfortable With Resolution </li></ul>
    24. Start-up… Risk Management <ul><li>Best Practice… Communicate Known Risks Early </li></ul><ul><li>Four Steps </li></ul><ul><ul><li>Identify Risk </li></ul></ul><ul><ul><li>Prioritize Risk </li></ul></ul><ul><ul><ul><li>Probability of risk happening </li></ul></ul></ul><ul><ul><ul><li>Impact of risk </li></ul></ul></ul><ul><ul><ul><li>Focus… most likely to happen with biggest impact </li></ul></ul></ul><ul><ul><li>Define proactive mitigation strategies/actions </li></ul></ul><ul><ul><li>Monitor progress of the mitigation actions weekly </li></ul></ul><ul><li>Result: Active Management of Shared Risks by ALL Parties </li></ul>
    25. Start-up… Change Management <ul><li>Three Kinds of Change Request </li></ul><ul><ul><li>Compliance </li></ul></ul><ul><ul><ul><li>Change to something approved… the “Box” </li></ul></ul></ul><ul><ul><ul><li>Example: Additional requirements </li></ul></ul></ul><ul><ul><li>Non-Compliance </li></ul></ul><ul><ul><ul><li>Something did not happen as planned </li></ul></ul></ul><ul><ul><ul><li>Example: SME’s not available as planned </li></ul></ul></ul><ul><ul><li>Informational </li></ul></ul><ul><ul><ul><li>Reset or change… no impact to schedules/cost </li></ul></ul></ul><ul><ul><ul><li>Example: Organizational change </li></ul></ul></ul>
    26. Start-up… Change Management (continued) <ul><li>Reality… Change Will Happen </li></ul><ul><ul><li>Recommend Change Budget (20%) </li></ul></ul><ul><li>Common Mistakes </li></ul><ul><ul><li>Can not have change without a foundation… scope creep </li></ul></ul><ul><ul><li>No CONSISTENT process on how to handle </li></ul></ul><ul><li>Process Should: </li></ul><ul><ul><li>Identify who can initiate… anyone!!! </li></ul></ul><ul><ul><li>Define approval authorization </li></ul></ul><ul><ul><li>Define timely decision-making </li></ul></ul><ul><ul><li>Define escalation </li></ul></ul><ul><ul><li>Make clear that NO WORK UNTIL APPROVED!!!! </li></ul></ul>
    27. Start-up… Acceptance Management <ul><li>Defined Deliverables… Building Blocks That Move Project Forward </li></ul><ul><li>Key Components: </li></ul><ul><ul><li>Define acceptance criteria… pictures are worth 1,000 words </li></ul></ul><ul><ul><li>Define approval authority </li></ul></ul><ul><ul><li>Written approval only… no verbal </li></ul></ul><ul><ul><li>Define acceptance process </li></ul></ul><ul><ul><ul><li>Review, walkthrough, etc </li></ul></ul></ul><ul><ul><li>Define rejection process </li></ul></ul><ul><ul><li>Define timely decision-making </li></ul></ul><ul><ul><li>Define escalation </li></ul></ul><ul><ul><li>EARNED VALUE… Goal of 80% (no more then 20% at risk) </li></ul></ul>
    28. The Box is Defined WHO HOW WHEN WHAT Roles and Responsibility Schedule Technical And Management Approach Statement of Work Scope and Critical Success Factors
    29. “ Once I know where I am to finish, I then know where to start .” Walt Disney Author Unknown “ Once all the facts are known… decision making is easy .”
    30. Fixed Price Strategy Flow Definition Discovery Start-up Execution Closure Supporting Processes/Templates RFP Template RFP Checklist Fixed Price Checklist Vendor Evaluation Checklist Discovery Report Template Management for: Schedule Communication Issues Risks Change Acceptance Quality Metrics Template Project Status Summary Template Monthly Project Review Agenda Mini-Audit Checklist Full-Audit Checklist Post Project Review Report Template Phases
    31. Execution… Project Control and Risk Planning <ul><li>Can’t Get Better Until You Accurately Know Where You Are!!! </li></ul><ul><li>Metrics </li></ul><ul><ul><li>Keep very simple and start small </li></ul></ul><ul><ul><li>Rule of thumb: If a collection method must be created… don’t use THE Metric </li></ul></ul><ul><ul><li>Evaluate Trends </li></ul></ul><ul><li>Gather The Facts And Look For Potential Issues… Continuously </li></ul><ul><ul><li>Weekly reporting </li></ul></ul><ul><ul><li>Audits </li></ul></ul><ul><li>Identify Projects That: </li></ul><ul><ul><li>Exhibit poor project performance data </li></ul></ul><ul><ul><li>Exhibit conditions that may lead to dissatisfaction </li></ul></ul><ul><ul><li>Have significant risk </li></ul></ul>
    32. Execution… Quality Management <ul><li>Three Types </li></ul><ul><ul><li>Initial-Audit </li></ul></ul><ul><ul><ul><li>Within first 30 days </li></ul></ul></ul><ul><ul><ul><li>Review project planning </li></ul></ul></ul><ul><ul><ul><li>Ensures things are done correctly from the beginning </li></ul></ul></ul><ul><ul><li>Mini-Audit </li></ul></ul><ul><ul><ul><li>Ensure project is operating according to standards </li></ul></ul></ul><ul><ul><ul><li>Quarterly throughout project </li></ul></ul></ul>
    33. Execution… Quality Management (continued) <ul><li>Three Types (continued) </li></ul><ul><ul><li>Full-Audit </li></ul></ul><ul><ul><ul><li>Provide extensive review of project to determine </li></ul></ul></ul><ul><ul><ul><ul><li>What is being done well </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Identify real or potential problems </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Suggest specific corrective actions </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Once a year </li></ul></ul></ul></ul>
    34. Fixed Price Strategy Flow Definition Discovery Start-up Execution Closure Supporting Processes/Templates RFP Template RFP Checklist Fixed Price Checklist Vendor Evaluation Checklist Discovery Report Template Management for: Schedule Communication Issues Risks Change Acceptance Quality Metrics Template Project Status Summary Template Monthly Project Review Agenda Mini-Audit Checklist Full-Audit Checklist Post Project Review Report Template Phases
    35. Closure <ul><li>Achieve Final Sign-off </li></ul><ul><li>Post Project Audit </li></ul><ul><ul><li>Identify what went well and areas of improvement </li></ul></ul><ul><ul><li>Verify all deliverables and Change Control documents officially accepted </li></ul></ul><ul><ul><li>Should be final activity within Project Plan </li></ul></ul>
    36. Summary <ul><li>Fixed Price Strategy Can Work IF… </li></ul><ul><ul><li>The “Box” is fully defined… everyone on the same page </li></ul></ul><ul><ul><li>Disciplined, Proactive Approach is Practiced </li></ul></ul><ul><ul><li>Willingness to hear and react to both good and bad news </li></ul></ul><ul><ul><li>Communication, Communication, Communication!!! </li></ul></ul><ul><li>Don’t Need A Title To Be A Leader… </li></ul><ul><ul><li>Management… Power OVER people </li></ul></ul><ul><ul><li>Leadership… Power WITH people </li></ul></ul>
    37. QUESTIONS [email_address] Office: (727) 938-0067 Mooney Consulting Group, Inc. M “ Let Our Management Experience Work For You!”

    ×