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  • DON’T PUT OFF BAD NEWSMakes Them Think You’re Hiding Something Or Being Deliberately Devious or Deceitful

York.melba York.melba Presentation Transcript

  • PM ChallengeFebruary 2011
    The Good
    The Bad
    The Ugly
  • The Good
    Good performance is a multi-variable dependent on good people, good tools/processes, good management, good customer relationships
    Good communication (horizontal and vertical)
    Understanding organizational structure, goals, and expectations
    Understanding the Project/Program requirements
    Contract type
    Some contract types are much more susceptible to impacts from cost or schedule problems
    Fixed price, IDIQ task order, fixed rate
    Good risk management practices:
    Early identification (proactive vs reactive)
    Honest diagnosis
    Reasonable, coordinated, aggressive mitigations
    Follow-through
    Hiring good qualified people is a given
    Knowing what skills you need
    Technical, right experience for right job, customer skills, soft skills
  • February 2009
    Melba York: 2009 PM Challenge
    3
    Trust is Everything
    Good relationships are built on trust
    Integrity
    Honesty
    Openness
    Dependability
    Reliability
    Mutual goals
    View slide
  • February 2009
    Melba York: 2009 PM Challenge
    4
    Customers Want to Work With People They Trust
    Want us to share their vision
    Want us and them to succeed
    Want a “friendly” working relationship
    “All things being equal, I would rather do business with my friends than with my enemies.” - Unknown
    View slide
  • The Bad
    Limited Communication
    Customers are surprised
    No or minimal forewarning
    Reactive mode
    “I can fix it” mentality
    Potential Cost and Schedule Overruns
    Early indicators, early warnings
    Impacts to profits
    Impacts to people
    IMPACTS CREDIBILITY WITH YOUR CUSTOMER
  • The Bad
    Why is this happening?
    Poor planning
    Lack of risk management and risk mitigation techniques
    Performance metrics may not be adequate
    Does data tell you what you really need to know?
    Does it provide enough granularity to permit early warning so you can anticipate potential problem areas?
    Don’t Put off Bad News
  • The Ugly
    Impacts of Budget & Schedule Mis-Management
    Damaged customer relationships
    Impacts to future business
    Reputation/image
    Not meeting customer expectations
    Poor performance scores
    Examples:
    GAO Report: NASA projects need more disciplined oversight and management to address key challenges, dated March 5, 2009
    1990 GAO designated NASA’s contract management as high risk in view of persistence cost growth and schedule slippage in the majority of its major projects
  • The Ugly
    Bottom Line
    Non-profitable
    Loss of Customer base
    Bad reputation with customers and employees
    Loss of business
    Out of business!
  • How do you avoid the "ugly”
    Implementing an earned value system
    Integrates cost/schedule together
    Provided early warning systems
    Allows scenario analysis to evaluate cost/schedule trade-off if one component (cost, technical, schedule) suddenly gets higher priority
    Provides ability to forecast cashflow
    Allows management to know when money is needed
    Highlights resource needs
    Provides input into hiring needs or resource leveling
    Helps management assess changes (movement of tasks/resources) to provide same work more consistently over time without spikes/drops in the workforce
  • What Does It Take?
    Proper planning is key
    Detailed requirements, estimates and schedules are a must!
    Frequent analysis of actuals against plan are imperative
    Don’t hide bad news
    Communicate with customers frequently
    Make a plan, stick to the plan; if changes are necessary, develop new plan with customers
  • Data Integration
    Project Schedule
    P3 / MS Project
    PRISM Project
    Estimator
    Material Unit Costs
    Material Quantities
    Schedule Activities and Resources
    Detailed Project Estimate
    Procurement &
    Materials Management
    Modules
    Schedule Interface
    Module
    Baseline Estimate
    Module
    Baseline Estimate
    Module
    Budget Estimate
    Commitments
    WBS Coding
    Engineering Systems
    Cost & Progress
    Module
    Control Accounts
    Engineering
    Progress
    Module
    Contracts/P.O.
    Administration
    Module
    Engineering
    Progress
    Contract/PO
    Progress
    Engineering
    Progress
    Deliverable Status
    Risk Activities
    Actual Costs
    Document
    Control
    Module
    PRISM RISK
    Manager
    Accounting Data
    SAP, Oracle, etc.
  • Proprietary Data is Hidden
  • Proprietary Data is Hidden
  • Proprietary Data is Hidden
  • Proprietary Data is Hidden
  • Proprietary Data is Hidden
  • Proprietary Data is Hidden
  • Proprietary Data is Hidden
  • FY08 PI&C Integrated Baseline Review
    WBS 6.1 & 6.2 & 6.3 & 6.4 & 6.6 & 6.7 -Task Order 343
    Proprietary Data is Hidden
    ARES Proprietary
  • Your Reputation Is On The Line:What Do YOU Want To Be?
    • The Good
    • The Bad
    • The Ugly
  • Conclusion
    When it comes to a “show-down”, customers want to work with companies who deliver:
    Superior quality products
    On-time
    Within budget
    Don’t leave results to chance!
    Use systems and tools to help you navigate project complexities AND
    Don’t Put off Bad News