2. 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
3. February 2009 Melba York: 2009 PM Challenge 3 Trust is Everything Good relationships are built on trust Integrity Honesty Openness Dependability Reliability Mutual goals
4. 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
5. 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
6. 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
7. 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
8. The Ugly Bottom Line Non-profitable Loss of Customer base Bad reputation with customers and employees Loss of business Out of business!
9. 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
10. 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
11. 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.
