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Project Management
(Usually…)Everyone is on the same side—OURSEveryone is bound by the success of the projectEveryone has to continue to work...
On the field of battle, the spoken word doesnot carry far enough, hence the institution ofgongs and drums. Nor can ordinar...
1. What is a Project?• All projects have a beginning, a middle and an end.Beginning Middle End
Beginning Middle End• A definition:• “A temporary endeavor undertaken toaccomplish a unique purpose”
Projects have a common set of characteristics whichcan also be defined by what they are notA targetoutcomeA defined lifesp...
Projects have a common set of characteristicswhich can also be defined by what they are notA targetoutcomeA defined lifesp...
ExplorationsGo onindefinitelyOne team orone personworking aloneCreating thesame thingmultiple timesNo constraintson time, ...
ExplorationsGo onindefinitelyOne team orone personworking aloneCreating thesame thingmultiple timesNo constraintson time, ...
Process Groups• All projects typically go through these fiveprocessesPlanMonitor &ControlImplementCloseInitiate
Assignment: In what stage of the processare the projects now?10 minutesPlanMonitor &ControlImplementCloseInitiate
• A process is a series of actions directedtowards a particular result.Step 1 Step 2 Step 3 Resultactivityinputs outputs
Figure 1.1 Project Life Cycle(Gray & Larson, 2006, p6)
The Triple ConstraintAlso known as the IRON TRIANGLETimeScope Cost
QualityThe Quadruple Constraint• Warning: Quality has many definitionsTimeScope Cost
QualityAssignment: check the 4 scopes and apply it onthe projectsTimeScope Cost10 minutes
What is Project Management?Advantages of Project Management:• Better control of financial, physical,and human resources• I...
PerformingOrganisationProject ManagerClient - SponsorProject Teamstakeholdersstakeholdersstakeholdersstakeholders
Project Management FrameworkIntegrationManagementTimeManagementCostManagementScopeManagementQualityManagementHRManagementR...
Figure 1.2 Project Management Framework(Schwalbe, 2006, p9)
Time ManagementIntegrationManagementTimeManagementCostManagementScopeManagementQualityManagementHRManagementRiskManagement...
Cost managementIntegrationManagementTimeManagementCostManagementScopeManagementQualityManagementHRManagementRiskManagement...
Scope ManagementIntegrationManagementTimeManagementCostManagementScopeManagementQualityManagementHRManagementRiskManagemen...
Quality ManagementIntegrationManagementTimeManagementCostManagementScopeManagementQualityManagementHRManagementRiskManagem...
Remember this?• The first four knowledge areas are• Core Functions
• The next four knowledge areas are FacilitatingProcessesIntegrationManagementTimeManagementCostManagementScopeManagementQ...
Integration Management – pulling it all togetherIntegrationManagementTimeManagementCostManagementScopeManagementQualityMan...
Strategic Planning
Strategic Planning1. What is strategy?2. How do projects relate to strategy?
The strategy is simple, I think.The strategy is to have a practice, and what itmeans to have a practice is to regularly an...
5 Forces analysisSupplierpowerCustomerpowerThreat ofNew EntrantsSubstitutesIntensity ofcompetitionMichael Porter’s ‘5 Forc...
business model templateVALUEPROPOSITIONCOSTSTRUCTURECUSTOMERRELATIONSHIPTARGETCUSTOMERDISTRIBUTIONCHANNELVALUECONFIGURATIO...
ProcessefficiencyScorecardCustomersatisfactionFinancialLearning andinnovationBalanced ScorecardKaplan & Norton (1994?) HBR
• Strategic Management Overview– Involves determining long-term objectives, predictingfuture trends, and projecting the ne...
Set (SMART) GoalsReview MissionDevelop StrategiesImplement Strategies through projectsAlign Strategies to goals
SWOT = SITUATIONAL ANALYSISWhere are we now?
STWO
STWOPositive Negative
STWOInternalExternal
STWOInternalExternalPositive Negative
Assignment: take one of your own projectsfrom the project wall and apply the SWOTanalysis.10 minutes
Set (SMART) GoalsReview MissionDevelop StrategiesImplement Strategies through projectsAlign Strategies to goals
http://en.wikipedia.org/wiki/SMART_(project_management)S SpecificM MeasurableA AchievableR RelevantT Time-bound
Letter Major Term Minor TermsS Specific Significant[3], Stretching[3], SimpleM Measurable Meaningful[3], Motivational[3], ...
Assignment: take one of your own projectsfrom the project wall and apply SMART.S SpecificM MeasurableA AchievableR Relevan...
Set (SMART) GoalsReview MissionDevelop StrategiesImplement Strategies through projectsAlign Strategies to goals
Assignment: take the model of Porter and applyit to the project.
Set (SMART) GoalsReview MissionDevelop StrategiesImplement Strategies through projectsAlign Strategies to goals
Set (SMART) GoalsReview MissionDevelop StrategiesImplement Strategies through projectsAlign Strategies to goals
projects
projectsprojectsprojectsprojects
projectsprojectsprojectsprojects projectsprojectsprojectsprojectsprojectsprojectsprojectsprojects
Not all project proposals make it toinitiation
Every project idea isn’t progressed.Why?
TimeMoneyFocus
Financial Analysis$$$Net Present ValuePayback modelReturn onInvestment(there are more)
Net Present ValueNet Present Value (NPV) ModelUses management’s minimum desired rate-of-return (discount rate) to compute ...
Payback modelFigure 4.1 Charting the Payback Period(Schwalbe, 2006, p129)Measures the time it will take to recoverthe proj...
Return onInvestmentReturn on Investment (ROI)Calculated by subtracting projectcosts from the benefits and thendividing by ...
Non-financial Analysis$$$Weighted scoringmodelBalancedScorecard
$$$Weighted scoringmodelA weighted scoring model is a tool that provides asystematic process for selecting projects based ...
$$$BalancedScorecard•Balanced Scorecard– Robert Kaplan and David Norton developed thisapproach to help select and manage p...
“The reasons for the increase in successfulprojects vary. First, the average cost of a projecthas been more than cut in ha...
“The reasons for the increase in successfulprojects vary. First, the average cost of a projecthas been more than cut in ha...
BetterSelectionPortfolioMgtStrategicAlignmentMore recently
Things youshould have(if you want to succeed)1. Executive support2. User involvement3. Experienced project manager4. Clear...
20 minute break
What is projectpartnering?
Project Partnering is a process oftransforming contractual arrangementsinto a cohesive, collaborative team thatdeals with ...
Assumptions1. the traditional adversarial relationship between the owner and contractoris ineffective and self-defeating2....
Reduced administrative costsBetter resource useImproved communicationImproved performanceAdvantages
Existence of commongoalsHigh costs of theadversarial approachShared benefits of thecollaborative approachThese things help
These things don’tConflicting goalsLack of trustHighly formalrelationshipPushing people beforethey are ready
Types of Contracts
Types of ContractsFixed Price Cost PlusAKALump SumAKATime and Materials
Cross Cultural Factors
Culture is a systemof shared norms,beliefs, values,and customs thatbind peopletogether, creatingshared meaningand a unique...
You (and I) need tomake adjustmentswhen dealing withpeople from othercultures.
Relativity of time andpunctualityCulture-relatedethical differencesPersonal andprofessionalrelationshipsAttitudes towardwo...
Culture ShockThe naturalpsychologicaldisorientation thatpeople sufferwhen they moveinto a differentculture
Successful partner relationships begin withthe search.
And just like you have to develop a team,you have to develop partner relationships.
SelectingTeambuilding ProjectmanagersProjectstakeholdersExpand the partnershipcommitment to includeother key managers ands...
Good people are hard to find.So are good business partners.
If you find goodpartners you wantto stick with them
Establish a “we” asopposed to “us and them”attitude toward the projectCo-location: employees fromdifferent organizations w...
Problem resolutionContinuous improvementJoint evaluationPersistent leadership
It is important to Celebrate Success
At major milestones and the ended of the projectConduct a jointly review of accomplishments and disappointments.Hold a cel...
It’s about reinforcingpositive behaviour
Partnershipsfail regularly.
Seniormanagement don’tsupport you
Cultural differences are forgotten or ignored
The wrong measurementsare applied
The wrongincentives are inplace
Negotiation: Art or science?
Principled Negotiationscall forSeparating the peoplefrom the problemFocusing on interests,not positionsInventing options f...
If pushed, don’t push backAsk questions instead ofmaking statementsUse silence as a responseto unreasonable demandsAsk for...
Your goal is a happycustomer
So what makes a customer happy?
The negative effect ofdissatisfied customersis far greater thanpositive effect ofsatisfied customers(Richins 1983)
The negative effect ofdissatisfied customers is fargreater than positive effect ofsatisfied customers(Richins 1983)In toda...
Every customer hasperformanceexpectations andperceptions(Parasuraman1991)
Satisfaction is aperceptualrelationship!Perceived performanceExpected performance
Project managers must beskilled at managing bothcustomer expectations andperceptions
Your checklist; Don’t oversell the project; better to undersell Develop a well-defined project scope statement Share si...
The strategy is simple, I think.The strategy is to have a practice, and what itmeans to have a practice is to regularly an...
@pieterspinderHaarlem, 19th May 2013
Project managmentkm2013
Project managmentkm2013
Project managmentkm2013
Project managmentkm2013
Project managmentkm2013
Project managmentkm2013
Project managmentkm2013
Project managmentkm2013
Project managmentkm2013
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Transcript of "Project managmentkm2013"

  1. 1. Project Management
  2. 2. (Usually…)Everyone is on the same side—OURSEveryone is bound by the success of the projectEveryone has to continue to work togetherProject management is NOT a contest.
  3. 3. On the field of battle, the spoken word doesnot carry far enough, hence the institution ofgongs and drums. Nor can ordinary objects beseen clearly enough: hence the institution ofbanners and flags.Ancient Chinese Book of Army Management.
  4. 4. 1. What is a Project?• All projects have a beginning, a middle and an end.Beginning Middle End
  5. 5. Beginning Middle End• A definition:• “A temporary endeavor undertaken toaccomplish a unique purpose”
  6. 6. Projects have a common set of characteristics whichcan also be defined by what they are notA targetoutcomeA defined lifespanCrossorganisational participationNew oruniqueTime, Costandperformancerequirements
  7. 7. Projects have a common set of characteristicswhich can also be defined by what they are notA targetoutcomeA defined lifespanCrossorganisationalparticipationNew or uniqueTime, Cost andperformancerequirements
  8. 8. ExplorationsGo onindefinitelyOne team orone personworking aloneCreating thesame thingmultiple timesNo constraintson time, costorperformanceWhat a project isn’t
  9. 9. ExplorationsGo onindefinitelyOne team orone personworking aloneCreating thesame thingmultiple timesNo constraintson time, costorperformanceAssignment: analyse theProject sheets from theproject wall or NQ projectconcerning:10 minutes.
  10. 10. Process Groups• All projects typically go through these fiveprocessesPlanMonitor &ControlImplementCloseInitiate
  11. 11. Assignment: In what stage of the processare the projects now?10 minutesPlanMonitor &ControlImplementCloseInitiate
  12. 12. • A process is a series of actions directedtowards a particular result.Step 1 Step 2 Step 3 Resultactivityinputs outputs
  13. 13. Figure 1.1 Project Life Cycle(Gray & Larson, 2006, p6)
  14. 14. The Triple ConstraintAlso known as the IRON TRIANGLETimeScope Cost
  15. 15. QualityThe Quadruple Constraint• Warning: Quality has many definitionsTimeScope Cost
  16. 16. QualityAssignment: check the 4 scopes and apply it onthe projectsTimeScope Cost10 minutes
  17. 17. What is Project Management?Advantages of Project Management:• Better control of financial, physical,and human resources• Improved customer relations• Shorter development times• Lower costs• Higher quality and increasedreliability• Higher profit margins• Improved productivity• Better internal coordination
  18. 18. PerformingOrganisationProject ManagerClient - SponsorProject Teamstakeholdersstakeholdersstakeholdersstakeholders
  19. 19. Project Management FrameworkIntegrationManagementTimeManagementCostManagementScopeManagementQualityManagementHRManagementRiskManagementCommunicationManagementProcurementManagement
  20. 20. Figure 1.2 Project Management Framework(Schwalbe, 2006, p9)
  21. 21. Time ManagementIntegrationManagementTimeManagementCostManagementScopeManagementQualityManagementHRManagementRiskManagementCommunicationManagementProcurementManagement
  22. 22. Cost managementIntegrationManagementTimeManagementCostManagementScopeManagementQualityManagementHRManagementRiskManagementCommunicationManagementProcurementManagement
  23. 23. Scope ManagementIntegrationManagementTimeManagementCostManagementScopeManagementQualityManagementHRManagementRiskManagementCommunicationManagementProcurementManagement
  24. 24. Quality ManagementIntegrationManagementTimeManagementCostManagementScopeManagementQualityManagementHRManagementRiskManagementCommunicationManagementProcurementManagement
  25. 25. Remember this?• The first four knowledge areas are• Core Functions
  26. 26. • The next four knowledge areas are FacilitatingProcessesIntegrationManagementTimeManagementCostManagementScopeManagementQualityManagementHRManagementRiskManagementCommunicationManagementProcurementManagement
  27. 27. Integration Management – pulling it all togetherIntegrationManagementTimeManagementCostManagementScopeManagementQualityManagementHRManagementRiskManagementCommunicationManagementProcurementManagement
  28. 28. Strategic Planning
  29. 29. Strategic Planning1. What is strategy?2. How do projects relate to strategy?
  30. 30. The strategy is simple, I think.The strategy is to have a practice, and what itmeans to have a practice is to regularly andreliably do the work in a habitual way.Seth Godin.
  31. 31. 5 Forces analysisSupplierpowerCustomerpowerThreat ofNew EntrantsSubstitutesIntensity ofcompetitionMichael Porter’s ‘5 Forces’ – 1980’s
  32. 32. business model templateVALUEPROPOSITIONCOSTSTRUCTURECUSTOMERRELATIONSHIPTARGETCUSTOMERDISTRIBUTIONCHANNELVALUECONFIGURATIONCORECAPABILITIESPARTNERNETWORKREVENUESTREAMSINFRASTRUCTURE CUSTOMEROFFERFINANCEOsterwalder’s Business Model framework 2006http://business-model-design.blogspot.com
  33. 33. ProcessefficiencyScorecardCustomersatisfactionFinancialLearning andinnovationBalanced ScorecardKaplan & Norton (1994?) HBR
  34. 34. • Strategic Management Overview– Involves determining long-term objectives, predictingfuture trends, and projecting the need for new productsand services– Provides the theme and focus of the future direction forthe firm• respond to change• allocating scarce resources– Requires strong links among mission, goals, objectives,strategy, and implementation
  35. 35. Set (SMART) GoalsReview MissionDevelop StrategiesImplement Strategies through projectsAlign Strategies to goals
  36. 36. SWOT = SITUATIONAL ANALYSISWhere are we now?
  37. 37. STWO
  38. 38. STWOPositive Negative
  39. 39. STWOInternalExternal
  40. 40. STWOInternalExternalPositive Negative
  41. 41. Assignment: take one of your own projectsfrom the project wall and apply the SWOTanalysis.10 minutes
  42. 42. Set (SMART) GoalsReview MissionDevelop StrategiesImplement Strategies through projectsAlign Strategies to goals
  43. 43. http://en.wikipedia.org/wiki/SMART_(project_management)S SpecificM MeasurableA AchievableR RelevantT Time-bound
  44. 44. Letter Major Term Minor TermsS Specific Significant[3], Stretching[3], SimpleM Measurable Meaningful[3], Motivational[3], ManageableA AchievableAgreed, Attainable[6], Assignable[2], Appropriate,Actionable, Action-oriented[3]R RelevantRealistic[2], Results/Results-focused/Results-oriented[6],Resourced[7], Rewarding[3]T Time-boundTime framed[2], Timed, Time-based, Timeboxed,Timely[6][5], Timebound, Time-Specific, Timetabled,TrackableE[1] Exciting, Evaluated, EthicalR[1] Recorded, Rewarding, Reviewed[8]http://en.wikipedia.org/wiki/SMART_(project_management)
  45. 45. Assignment: take one of your own projectsfrom the project wall and apply SMART.S SpecificM MeasurableA AchievableR RelevantT Time-bound10 minutes.
  46. 46. Set (SMART) GoalsReview MissionDevelop StrategiesImplement Strategies through projectsAlign Strategies to goals
  47. 47. Assignment: take the model of Porter and applyit to the project.
  48. 48. Set (SMART) GoalsReview MissionDevelop StrategiesImplement Strategies through projectsAlign Strategies to goals
  49. 49. Set (SMART) GoalsReview MissionDevelop StrategiesImplement Strategies through projectsAlign Strategies to goals
  50. 50. projects
  51. 51. projectsprojectsprojectsprojects
  52. 52. projectsprojectsprojectsprojects projectsprojectsprojectsprojectsprojectsprojectsprojectsprojects
  53. 53. Not all project proposals make it toinitiation
  54. 54. Every project idea isn’t progressed.Why?
  55. 55. TimeMoneyFocus
  56. 56. Financial Analysis$$$Net Present ValuePayback modelReturn onInvestment(there are more)
  57. 57. Net Present ValueNet Present Value (NPV) ModelUses management’s minimum desired rate-of-return (discount rate) to compute thepresent value of all net cash inflowspositive NPV: the project meets theminimum desired rate of return and iseligible for further considerationnegative NPV: project is rejectedNet Present Value (NPV) Model cont’d…NPV Calculationsdetermine estimated costs / benefits forthe life of the project and products itproducesdetermine discount rate (askorganization)calculate the NPVsome organizations consider theinvestment year as year 0, othersconsider it year 1some organizations enter costs asnegative numbers, others do not (askorganization)Example: CP829_Lecture_Week2_NPV.xlsTime toStopand turn to anewpresentationpack
  58. 58. Payback modelFigure 4.1 Charting the Payback Period(Schwalbe, 2006, p129)Measures the time it will take to recoverthe project investmentShorter paybacks are more desirablePayback occurs when cumulativediscounted benefits and costs aregreater than zeroLimitations of payback:• ignores the time value of money• assumes cash inflows for investmentperiod only• does not consider profitability
  59. 59. Return onInvestmentReturn on Investment (ROI)Calculated by subtracting projectcosts from the benefits and thendividing by the costsFormula:ROI = (total discountedbenefits –total discounted costs) /discounted costsHigher the ROI, the better. Manyorganizations have a set orminimum rate of return oninvestment projects(total discounted benefits –total discounted costs)discounted costs
  60. 60. Non-financial Analysis$$$Weighted scoringmodelBalancedScorecard
  61. 61. $$$Weighted scoringmodelA weighted scoring model is a tool that provides asystematic process for selecting projects based onmany criteria– Steps in identifying a weighted scoring model:• identify criteria for project selection• assign weights (%) to criteria add up to (100%)• assign scores to each criteria for each project• multiply scores by weights to get total scores– The higher the weighted score, the better $$$
  62. 62. $$$BalancedScorecard•Balanced Scorecard– Robert Kaplan and David Norton developed thisapproach to help select and manage projects that alignwith business strategy– Methodology that converts an organization’s valuedrivers, such as customer service, innovation,efficiency, and financial performance, to a series ofdefined metrics– See http://www.balancedscorecard.org for moreinformation$$$
  63. 63. “The reasons for the increase in successfulprojects vary. First, the average cost of a projecthas been more than cut in half. Better tools havebeen created to monitor and control progressand better skilled project managers with bettermanagement processes are being used. The factthat there are processes is significant in itself.”(Standish Group cited in Schwalbe, 2004, p13)
  64. 64. “The reasons for the increase in successfulprojects vary. First, the average cost of a projecthas been more than cut in half. Better tools havebeen created to monitor and control progressand better skilled project managers with bettermanagement processes are being used. The factthat there are processes is significant in itself.”(Standish Group cited in Schwalbe, 2004, p13)SmallerprojectsBettertoolsBettertraining
  65. 65. BetterSelectionPortfolioMgtStrategicAlignmentMore recently
  66. 66. Things youshould have(if you want to succeed)1. Executive support2. User involvement3. Experienced project manager4. Clear business objectives5. Minimized scope6. Standard softwareinfrastructure7. Firm basic requirements8. Formal methodology9. Reliable estimates10. Other criteria, such as smallmilestones, proper planning,competent staff, and ownership
  67. 67. 20 minute break
  68. 68. What is projectpartnering?
  69. 69. Project Partnering is a process oftransforming contractual arrangementsinto a cohesive, collaborative team thatdeals with issues and problemsencountered to meet a customer’s needs
  70. 70. Assumptions1. the traditional adversarial relationship between the owner and contractoris ineffective and self-defeating2. that both parties share common goals and will mutually benefit
  71. 71. Reduced administrative costsBetter resource useImproved communicationImproved performanceAdvantages
  72. 72. Existence of commongoalsHigh costs of theadversarial approachShared benefits of thecollaborative approachThese things help
  73. 73. These things don’tConflicting goalsLack of trustHighly formalrelationshipPushing people beforethey are ready
  74. 74. Types of Contracts
  75. 75. Types of ContractsFixed Price Cost PlusAKALump SumAKATime and Materials
  76. 76. Cross Cultural Factors
  77. 77. Culture is a systemof shared norms,beliefs, values,and customs thatbind peopletogether, creatingshared meaningand a uniqueidentity
  78. 78. You (and I) need tomake adjustmentswhen dealing withpeople from othercultures.
  79. 79. Relativity of time andpunctualityCulture-relatedethical differencesPersonal andprofessionalrelationshipsAttitudes towardwork and life
  80. 80. Culture ShockThe naturalpsychologicaldisorientation thatpeople sufferwhen they moveinto a differentculture
  81. 81. Successful partner relationships begin withthe search.
  82. 82. And just like you have to develop a team,you have to develop partner relationships.
  83. 83. SelectingTeambuilding ProjectmanagersProjectstakeholdersExpand the partnershipcommitment to includeother key managers andspecialistsBuild a collaborativerelationship amongthe project managers.Voluntary, experienced,willing, with committedtop management.
  84. 84. Good people are hard to find.So are good business partners.
  85. 85. If you find goodpartners you wantto stick with them
  86. 86. Establish a “we” asopposed to “us and them”attitude toward the projectCo-location: employees fromdifferent organizations worktogether in same locationEstablish mechanisms that willensure the relationshipwithstands problems
  87. 87. Problem resolutionContinuous improvementJoint evaluationPersistent leadership
  88. 88. It is important to Celebrate Success
  89. 89. At major milestones and the ended of the projectConduct a jointly review of accomplishments and disappointments.Hold a celebration for all project participants.Recognize special contributions
  90. 90. It’s about reinforcingpositive behaviour
  91. 91. Partnershipsfail regularly.
  92. 92. Seniormanagement don’tsupport you
  93. 93. Cultural differences are forgotten or ignored
  94. 94. The wrong measurementsare applied
  95. 95. The wrongincentives are inplace
  96. 96. Negotiation: Art or science?
  97. 97. Principled Negotiationscall forSeparating the peoplefrom the problemFocusing on interests,not positionsInventing options formutual gainAnd whenever possible,use objective criteria tohelp you achieve yourgoals
  98. 98. If pushed, don’t push backAsk questions instead ofmaking statementsUse silence as a responseto unreasonable demandsAsk for advice andencourage others tocriticize your ideas andpositionswork toward a win/winscenarioWarnings for dealing withUnreasonable People
  99. 99. Your goal is a happycustomer
  100. 100. So what makes a customer happy?
  101. 101. The negative effect ofdissatisfied customersis far greater thanpositive effect ofsatisfied customers(Richins 1983)
  102. 102. The negative effect ofdissatisfied customers is fargreater than positive effect ofsatisfied customers(Richins 1983)In today’s moderncommunications environmentthat message can travel fasterand wider(Hoch, 2006)
  103. 103. Every customer hasperformanceexpectations andperceptions(Parasuraman1991)
  104. 104. Satisfaction is aperceptualrelationship!Perceived performanceExpected performance
  105. 105. Project managers must beskilled at managing bothcustomer expectations andperceptions
  106. 106. Your checklist; Don’t oversell the project; better to undersell Develop a well-defined project scope statement Share significant problems and risks Keep everyone informed about the project’s progress Involve customers early on decisions about project developmentchanges Handle customer relationships and problems in an expeditious,competent, and professional manner Speak with one voice Speak the language of the customer
  107. 107. The strategy is simple, I think.The strategy is to have a practice, and what itmeans to have a practice is to regularly andreliably do the work in a habitual way.Seth Godin.
  108. 108. @pieterspinderHaarlem, 19th May 2013
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