5 Keys to Successful Project ManagementWayne Brantley, MS. Ed, PMP, ITIL, CPLP, CRP Senior Director of Professional Education Villanova University www.VillanovaU.com 1-800-571-4953
Overview Baseline data Project performance Why projects fail The five keys to project success
Can you predict the future?
The future isnt as scary if you know the past Do you baseline project performance?
Why do projects fail? What determines project failure? What determines project success? What are the commonalities in successful projects?
Create Best Practices Lessons learned databases Create a Center of Excellence Develop best practices Executive buy-in
The Five Keys to Successful Project Management1. Obtain Good Requirements2. Perform Detailed Project Planning3. Do Risk Management4. Lead the Project Team5. Create an Organizational Culture that Supports Project Management
The Five Keys to Successful Project Management1. Obtain Good Requirements
The Five Keys to Successful Project Management• What do requirements establish in a project?• What are some signs that thorough requirements were not acquired?
Improved Requirements Gathering “How the customer explained it” 11
Improved Requirements Gathering“How the Project Leader understood it” 12
Improved Requirements Gathering “How the Analyst designed it” 13
Improved Requirements Gathering “How the Programmer wrote it” 14
Improved Requirements Gathering“How the Business Consultant described it” 15
Improved Requirements Gathering “How the project was documented” 16
Improved Requirements Gathering “How the customer was billed” 18
Improved Requirements Gathering “How it was supported” 19
Improved Requirements Gathering “What the customer really needed” 20
Obtain Good Requirements Needs analysis – Where do needs arise from? Market demands Laws Technology evolution Others? Evolution of a need Emergence – “Change is the generator of needs” Recognition – Must be a conscious effort Articulation – See what it means to all stakeholders
Obtain Good Requirements Articulate the Needs – See what it means to all stakeholders Step 1 – Ask those that have the need to define it as clearly as possible Step 2 – Ask a full set of questions about the need Step 3 – Carry out whatever research is necessary to enable you to understand the need better Step 4 – Formulate the need as best as you can Step 5 – Have customer/stakeholder review, and revise accordingly
Obtain Good Requirements How do you obtain good requirements? 1. Take time to do it 2. Ask the right people the right questions 3. Draw a picture 4. Build a model 5. Build a little 6. Check and re-check 7. Sign off C = Cover Y = Your A = Activities
The Five Keys to Successful Project Management2. Perform Detailed Project Planning
Detailed Project Planning What is done in planning? Develop the project management plan Requirements Scope WBS Schedule Estimate durations Estimate costs Quality Human resources Communications Risk management Procurement
Detailed Project Planning Documentation that is developed when we started Statement of Work Contracts Project requirements documents Project Charter When is the project manager assigned? When should the PM be assigned?
Detailed Project Planning• The WBS• Project scope and the WBS• The WBS and the work• The WBS and project management
Detailed Project Planning• Uses of the WBS – Planning – Estimating • Schedules • Budgets • Resources – Change Control – Project Control
Detailed Project Planning Get good estimates Know how good +/- some variance Order of Magnitude (also known as a SWAG) +75/-25% Budget Estimate +25/-10% Definitive Estimate -25% +75% -10% +25% +10/-5% -5% +10% Think of optimistic, most likely, and pessimistic PERT = O + 4 (ML) + P / 6 Don’t pad Don’t be the martyr
Detailed Project Planning Develop duration estimates Where do your estimates come from? Who has the most valid estimate? Develop estimating techniques PERT estimates = Optimistic + 4 (Most Likely) + Pessimistic / 6 EX: O = 3 days ML = 5 days P = 9 days • Answer = 5.33 days
The Five Keys to Successful Project Management3. Do Risk Management
Do Risk Management Project team member number 1 – Murphy Risk management planning – Do it! Identifying risk Evaluating risks Contingency planning Continuous risk management
Who is Murphy?• He shows up to every project• He is on your team• He can be the difference between a successful and a failed project• Murphy’s Law – “If something can go wrong, it will” 35
This is Murphy’s Shadow 36
Risk Management Planning Risk Planning – How much Risk Management do you apply to your project? $500k - $5M - $500M - $5B project differences 1 month – 6 month – 1 year – 2 year – 5 year project differences 2 person – 6 person – 12 person – 20 person project differences Your project – boss’s project – CEO’s project differences Life or death project differences 37
Do Risk Management Risk Identification Any possible risk should be identified Do not exclude even the ridiculous Use all stakeholders Techniques used to identify risks Brainstorming Nominal Group Technique Delphi Techniques
Risk Management Identification• Techniques used to identify risks – Brainstorming • Open discussion • No discussion on discussion • Comfortable environment • Use note takers • Get all to participate 39
Risk Management Identification• Techniques used to identify risks – Expert Interviews • Identify knowledgeable resources inside the company • Identify knowledgeable resources outside the company 40
Risk Management Identification• Techniques used to identify risks – Delphi Techniques • Use experts anonymously • Get their response • Iteratively and anonymously feed back to them • Get them to collaborate without them knowing 41
Risk Grid LOW IMPACT MED IMPACT HIGH IMPACT H HIGH PROBABILITY HIGH PROBABILITY HIGH PROBABILITYPR 3 2 1OB LOW IMPACT MED IMPACT HIGH IMPACTAB M MED PROBABILITY MED PROBABILITY MED PROBABILITYIL 4 2 2ITY LOW IMPACT MED IMPACT HIGH IMPACT L LOW PROBABILITY LOW PROBABILITY LOW PROBABILITY 4 4 3 L M H IMPACT
PIE Method All risks have an Event, a Probability, and an Impact An Event is the Risk that we identify Probability is the likelihood that it can occur Impact is the amount that it would cost us E=PxI Example: Risk 1 has a 70% probability and a $50,000 impact = $35k Risk 2 has a 40% probability and a $150,000 impact = $60k Risk 3 has a 20% probability and a $250,000 impact = $50k Which risk would be your first concern? 44
Risk Management Identification• Top Project Risks (Student Response) – Over commitment of resources – Stakeholder involvement – Incomplete Identification of risks – Contingency planning not done – SMART Goals (not used very often anymore) 45
Risk Management Identification• Top Project Risks (Student Response) – Command change out, so project no longer has priority – Higher directives changed negating the need for the product, and thus the project – Schedule change, forcing personnel to sea earlier than expected, thus dwindling down team members – Loss of funding, due to repair requirements elsewhere – Unexpected Loss of personnel/team members 46
Risk Management Identification• Top Project Risks (Student Response) – Missing deliverables from customer – Missing deliverables from project teams – Resources not available when needed – Miscommunications – Murphy (hes a stalker) - unforeseen risk that materializes at the worst timeEmail me your top risks at Wayne.Brantley@VillanovaU.com 47
The Five Keys to Successful Project Management4. Lead the Project Team
Leading the Project Team Development Project manager or project leader People Teams Personalities Skills
Leading the Project Team Development Challenges Geographical locations Cultural differences Language differences Spoken Technical Organization alignment
Situational LeadershipKen Blanchard identified different leadership styles based on: The situation Matching your leadership style to the developmental level of the workerLeadership styles are based on directive and supportive behaviors Leadership styles are; Directive, Coaching, Supportive, and DelegatingThe worker’s developmental level is based on competence andcommitment behaviors Worker’s developmental levels are; Enthusiastic Beginner, Disillusioned Learner, Reluctant Contributor, Peak Performer
Situational LeadershipH S U P Supportive Coaching P O R T I Delegating Directive V E DIRECTIVEL H
The Project Sandbox –“Can’t we all just get along?”
The Project Sandbox Sales Engineering
Top 10 Ways to Motivate Today’s Employees 1. Provide personal 6. Involve employees thanks 7. Reward high 2. Make times for performers employees 8. Develop a sense of 3. Provide specific ownership feedback 9. Give chances to grow 4. Create an open and learn environment 10. Celebrate successes 5. Provide information Bob Nelson; Motivating Today’s Employees, 1996
The Five Keys to Successful Project Management5. Create an Organizational Culture that Supports Project Management
An Organizational Culture that Supports Project Management How do you get an organization to support project management?
An Organizational Culture that Supports Project Management Project Management Maturity Models Project management is free! ROI for Project Management
An Organizational Culture that Supports Project Management Project Management Maturity Models Why are the needed?
An Organizational Culture that Supports Project Management Maturity Models A place to start Common language Common methodology Best practices Continuous improvement
An Organizational Culture that Supports Project Management Maturity Models Capability Maturity Models (CMM) Software Engineering Institute (SEI) Carnegie Mellon University Additional Project Management Maturity Model
CMM Business Benefits• Reduction in system integration and test time• Extend SW-CMM benefits to the total project• Leverage previous process improvement investments• Increased focus and consistency in: – Requirements development and management – System design and development – System integration – Risk Management 65
CMM Benefits• Improved schedule and budget predictability• Improved cycle time• Increased productivity• Improved quality• Increased customer satisfaction• Improved employee morale• Increased return on investment• Decreased cost of quality 66
Maturity Models CMMI – SEI/Carnegie Mellon Level 1 – Performed Process unpredictable, poorly controlled, and reactive Level 2 – Managed Process characterized for projects and is often reactive Level 3 – Defined Process characterized for the organization and is proactive Level 4 – Quantitatively managed Process managed and controlled Level 5 - Optimizing Focus on continuous process improvement 67
Project Management Maturity Models Harold Kerzner’s Project Management Maturity Model Level 5 – Continuous Improvement Level 4 – Benchmarking Level 3 – Singular Methodology Level 2 – Common Processes Level 1 – Common Language 68
Project Management Maturity Models Project Management Maturity Model (PMMM) – J. Kent Crawford, 2002 Level 1 – Initial process Ad hoc Management awareness Level 2 – Structure Process and Standards Basic processes Management support Experts and generic tools Project centric 69
Project Management Maturity Models Project Management Maturity Model (PMMM) – J. Kent Crawford, 2002 Level 3 – Organizational Standards and Institutionalized Process Standardized processes Repeatable processes Actual data collected Industry standards or organizational specifics Organizational focus 70
Project Management Maturity Models Project Management Maturity Model (PMMM) – J. Kent Crawford, 2002 Level 4 – Managed Process Processes integrated with corporate processes Management mandates Project performance analyzed Organization specifics on estimates Data used 71
PMI OPM3 Benefits• Advance organization’s goals through the use of PM• Establishes organizational best practices for PM• Allows an organization to identify where it needs to improve• Identifies priorities for improving and helps with planning 74
CMMI Kerzner Crawford PMIPerformed Common Initial Standardizing Language ProcessManaged Common Structure Process Process and StandardsDefined Singular Organizational Measuring Methodology Standards and Institutionalized processQuantitatively Benchmarking Managed ControllingManaged ProcessesOptimizing Continuous Optimizing Continuously Improvement Processes Improving
Project Management is Free! What is the cost of project management? What is the benefit of project management?
An Organizational Culture that Supports Project Management ROI of Project Management What would be the costs? What benefits would we see?
An Organizational Culture that Supports Project Management ROI Process – Jack Phillips methodology (www.roiinstitute.net) Determines the return you get on your investment We have to show the value of PM Executive support Resources Methodology Systems ROI Methodology 6 levels of value 1. Reaction 2. Learning 3. Application 4. Impact 5. ROI 6. Intangibles
An Organizational Culture that Supports Project Management ROI Process – Jack Phillips methodology (www.roiinstitute.net) 10 steps: Develop objectives for program evaluation Develop evaluation plans Data collection during program implementation Data collection after program implementation Isolate the effects of the solution Convert data to monetary value Identify intangibles Capture costs Calculate ROI (Net Program Benefits/Program Costs x 100) Develop report and communicate results
Example of Converting Data Using Baseline Data Cost of project delay•Delay from pastproject performance = 25% late•Estimated12 month project = 15 month delivered•Salary for PMO (8 personnel) = $700,000 annual salary•Benefit of project = $1M / month•Benefit of PM = 3 months saved @ $1M per month = $3M
Summary Baseline data Project performance Why projects fail The five keys to project success