Project Management Best Practices Jerry Helms, MS, PMP January, 2009

What is a project? A temporary endeavor undertaken to create a unique product or service. Definite beginning and definite end Each product or service is different Focused on specific deliverables. Needs to be aligned with organizational objectives.

A temporary endeavor undertaken to create a unique product or service.

Definite beginning and definite end

Each product or service is different

Focused on specific deliverables.

Needs to be aligned with organizational objectives.

Tip: What is a “project” for your organization? Quantify metrics for an “official project” versus just something that needs to get done Not all work activities need all of the project management best practices Example: “A project is any new endeavor which requires more than $10,000 of out of pocket expenses or more than 100 hours of internal effort Efforts meeting this threshold have a minimum standard set of deliverables that each project manager must provide (as defined by your organization). Efforts falling below this threshold can pick and use the best practices that will help the effort to be successful

Quantify metrics for an “official project” versus just something that needs to get done

Not all work activities need all of the project management best practices

Example: “A project is any new endeavor which requires more than $10,000 of out of pocket expenses or more than 100 hours of internal effort

Efforts meeting this threshold have a minimum standard set of deliverables that each project manager must provide (as defined by your organization).

Efforts falling below this threshold can pick and use the best practices that will help the effort to be successful

What is a Program? A group of related projects managed in a coordinated way Usually include an element of ongoing work.

A group of related projects managed in a coordinated way

Usually include an element of ongoing work.

Question If we are successful in improving how we manage projects, what are some of the expected benefits?

If we are successful in improving how we manage projects, what are some of the expected benefits?

Possible Benefits Improved profitability Faster time to market on new products Saving money (expenses) More efficient use of existing resources Reduced stress level Better time management Eliminate mistakes Reduced risk Enhanced work environment Improved teamwork Better estimating Accountability Shortened schedules Late projects create cascading delays Better focus on goals Faster reaction to market changes Closer working relationship with customers Allows more research to find new products (proactive) No sacrifice of scope or quality

Improved profitability

Faster time to market on new products

Saving money (expenses)

More efficient use of existing resources

Reduced stress level

Better time management

Eliminate mistakes

Reduced risk

Enhanced work environment

Improved teamwork

Better estimating

Accountability

Shortened schedules

Late projects create cascading delays

Better focus on goals

Faster reaction to market changes

Closer working relationship with customers

Allows more research to find new products (proactive)

No sacrifice of scope or quality

Question What are the challenges that you (we) face in managing projects?

What are the challenges that you (we) face in managing projects?

Challenges Projects are often late and over budget Projects do not deliver what is really needed Unexpected events occur that may or may not be involved with the project Project prioritization Working on multiple projects at the same time Lose time when test failures occur Unrealistic timelines – no slack in schedule Project manage is often the primary “doer” – creates project slippage Learning how to use Microsoft Project Time reporting methods Hard to control outside resources

Projects are often late and over budget

Projects do not deliver what is really needed

Unexpected events occur that may or may not be involved with the project

Project prioritization

Working on multiple projects at the same time

Lose time when test failures occur

Unrealistic timelines – no slack in schedule

Project manage is often the primary “doer” – creates project slippage

Learning how to use Microsoft Project

Time reporting methods

Hard to control outside resources

Driving Forces for Project Management Improving profitability Increasing sales Reducing expenses Meeting customer expectations Executive understanding Faster new product development Efficiency and effectiveness Creating high performance teams

Improving profitability

Increasing sales

Reducing expenses

Meeting customer expectations

Executive understanding

Faster new product development

Efficiency and effectiveness

Creating high performance teams

Session Objectives Provide an overview of project management best practices which will lead to enhanced organizational performance Basic principles of project management Sample of specific tools and techniques

Provide an overview of project management best practices which will lead to enhanced organizational performance

Basic principles of project management

Sample of specific tools and techniques

Project Management The application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Accomplished through the use of the processes such as: initiate, plan, execute, control, and close.

The application of knowledge, skills, tools, and techniques to project activities to meet project requirements.

Accomplished through the use of the processes such as: initiate, plan, execute, control, and close.

Tool: Project Portfolio You will always have more potential projects than resources to do all of them at the same time Prioritize projects against your business needs Do not allow too many simultaneous projects Use the list for brainstorming potential new projects and put them into a separate section so that they will not be forgotten

You will always have more potential projects than resources to do all of them at the same time

Prioritize projects against your business needs

Do not allow too many simultaneous projects

Use the list for brainstorming potential new projects and put them into a separate section so that they will not be forgotten

Tool: Project Portfolio

Project Phases Each project is unique and involves a degree of uncertainty. Projects are divided into phases to improve management control. Planned periods of evaluation and decision making. Implement project course corrections. Determine future scope and cost. Collectively, the project phases are known as the project life cycle. Each phase is a collection of logically related project activities, usually culminating in the completion of a major deliverable. Generally a sequential logic.

Each project is unique and involves a degree of uncertainty.

Projects are divided into phases to improve management control.

Planned periods of evaluation and decision making.

Implement project course corrections.

Determine future scope and cost.

Collectively, the project phases are known as the project life cycle.

Each phase is a collection of logically related project activities, usually culminating in the completion of a major deliverable.

Generally a sequential logic.

Project Phases Conclusion of a phase is marked by a review of key deliverables and project performance, to Determine if project should continue into its next phase Detect and correct errors as soon as possible, minimizing expensive rework costs Different project types will have a different set of phases Large projects can be divided into multiple phases and sub-phases.

Conclusion of a phase is marked by a review of key deliverables and project performance, to

Determine if project should continue into its next phase

Detect and correct errors as soon as possible, minimizing expensive rework costs

Different project types will have a different set of phases

Large projects can be divided into multiple phases and sub-phases.

Project Phases/Relationships Initiate Plan Control Execute Close

Project Management Life-Cycle Processes Deliverable validation Project turnover After-action review Archival of workbook Project controls: Scope Quality Risk Cost Schedule Team development Product development Quality assurance Status reporting Deliverable approval Statement of work WBS Schedule Budget Baseline plan Risk plan Resource needs Change plan Customer Approval Scope Objectives Constraint Matrix Project Charter Customer Approval Closing Controlling Executing Planning Initiating

Deliverable validation

Project turnover

After-action review

Archival of workbook

Project controls:

Scope

Quality

Risk

Cost

Schedule

Team development

Product development

Quality assurance

Status reporting

Deliverable approval

Statement of work

WBS

Schedule

Budget

Baseline plan

Risk plan

Resource needs

Change plan

Customer Approval

Scope

Objectives

Constraint Matrix

Project Charter

Customer Approval

Initiate Phase Deliverables Objectives of the project are agreed to Scope and approach are established Initial constraints and assumptions defined Project organization with roles and responsibilities High-level risk assessment General business requirements Project completion criteria Initial work plan Work Breakdown Structure Definition of phases with proposed decision checkpoints Projected milestones High-level cost assessment Assessment of resource requirements Project Charter Project Control Book Customer Approval

Objectives of the project are agreed to

Scope and approach are established

Initial constraints and assumptions defined

Project organization with roles and responsibilities

High-level risk assessment

General business requirements

Project completion criteria

Initial work plan

Work Breakdown Structure

Definition of phases with proposed decision checkpoints

Projected milestones

High-level cost assessment

Assessment of resource requirements

Project Charter

Project Control Book

Customer Approval

Initiate Phase Characteristics More planning needed Detailed requirements are unknown Resource assignments are not firm Dates and costs are inaccurate Estimates are fuzzy Stakeholders are initially unknown Owners of the business process must be involved Stakeholders are defined and agreed to during this phase

More planning needed

Detailed requirements are unknown

Resource assignments are not firm

Dates and costs are inaccurate

Estimates are fuzzy

Stakeholders are initially unknown

Owners of the business process must be involved

Stakeholders are defined and agreed to during this phase

Tool: Project Charter A document that formally authorizes a project Documents the business need the project is addressing High level costs and benefits Project deliverables – what is in the scope of the project and what is excluded from the project scope Functional requirements Project sponsor – person ultimately responsible for the success of the project Project manager – person tasked with day to day management of the project Constraints, Assumptions, Risks

A document that formally authorizes a project

Documents the business need the project is addressing

High level costs and benefits

Project deliverables – what is in the scope of the project and what is excluded from the project scope

Functional requirements

Project sponsor – person ultimately responsible for the success of the project

Project manager – person tasked with day to day management of the project

Constraints, Assumptions, Risks

Plan Phase Deliverables Detailed requirements Business process definition Detailed system architecture High-level test cases Data analysis Prototyping Enhanced Work Breakdown Structure Schedule and budget validated Risk Plan Communications Plan Issues tracking Training Plan Quality Plan Change Management Plan Change request form Change log Confirmed Resource Assignments Customer Approval

Detailed requirements

Business process definition

Detailed system architecture

High-level test cases

Data analysis

Prototyping

Enhanced Work Breakdown Structure

Schedule and budget validated

Risk Plan

Communications Plan

Issues tracking

Training Plan

Quality Plan

Change Management Plan

Change request form

Change log

Confirmed Resource Assignments

Customer Approval

Plan Phase Characteristics Repeat many of the same planning processes completed in the Initiate Phase, but to a greater level of detail. Validate the proposed solution. Prototype whenever possible. Proposed decision checkpoints will vary depending on the project profile (e.g. make versus buy). When planning phase is done, all work activities have been defined for the proposed solution and the team is confident in the ability to implement the proposed solution.

Repeat many of the same planning processes completed in the Initiate Phase, but to a greater level of detail.

Validate the proposed solution. Prototype whenever possible.

Proposed decision checkpoints will vary depending on the project profile (e.g. make versus buy).

When planning phase is done, all work activities have been defined for the proposed solution and the team is confident in the ability to implement the proposed solution.

Tool: Work Breakdown Structure A deliverable-oriented grouping of project elements that organizes and defines the total work scope of the project. Each descending level represents an increasingly detailed definition of the project work.

A deliverable-oriented grouping of project elements that organizes and defines the total work scope of the project. Each descending level represents an increasingly detailed definition of the project work.

Deliverables and Activities Deliverable – what must be produced (a noun). Activity – what work needs to be done to create the deliverable (a verb).

Deliverable – what must be produced (a noun).

Activity – what work needs to be done to create the deliverable (a verb).

Work Breakdown Structure

WBS Objectives Break the project into manageable pieces Build team commitment Basis for cost accounting system Improve estimating, scheduling, and risk management Facilitate clear responsibility assignments Define a baseline for performance management and control Create reusable templates for future projects

Break the project into manageable pieces

Build team commitment

Basis for cost accounting system

Improve estimating, scheduling, and risk management

Facilitate clear responsibility assignments

Define a baseline for performance management and control

Create reusable templates for future projects

WBS Defines Project Scope If it’s not in the WBS, it’s not part of the project. Be sure to add project management time to the WBS Startup activities General PM management Risk and contingency Closing activities

If it’s not in the WBS, it’s not part of the project.

Be sure to add project management time to the WBS

Startup activities

General PM management

Risk and contingency

Closing activities

Tool: Project Scheduling Use the Work Breakdown Structure to identify every project deliverable and activity Create a precedence network of dependencies Estimate tasks Add project buffer and feeding buffers Analyze critical path

Use the Work Breakdown Structure to identify every project deliverable and activity

Create a precedence network of dependencies

Estimate tasks

Add project buffer and feeding buffers

Analyze critical path

Critical Path Scheduling Use the WBS to estimate the amount of effort required to complete each deliverable. Connect each task in the sequence in which they must be accomplished (precedence network). Assign people resources to each task. The critical path are the sequence of events that will dictate how long it will take to finish the project.

Use the WBS to estimate the amount of effort required to complete each deliverable.

Connect each task in the sequence in which they must be accomplished (precedence network).

Assign people resources to each task.

The critical path are the sequence of events that will dictate how long it will take to finish the project.

Critical Chain Project Management Introduced in 1997 by Dr. Eli Goldratt, based on the Theory of Constraints Problems with traditional project management and scheduling Bad multi-tasking – especially in a multi-project environment Student syndrome – waiting until the last minute Parkinson’s law – work expands to fill time available Pessimistic estimating for every task in the project plan

Introduced in 1997 by Dr. Eli Goldratt, based on the Theory of Constraints

Problems with traditional project management and scheduling

Bad multi-tasking – especially in a multi-project environment

Student syndrome – waiting until the last minute

Parkinson’s law – work expands to fill time available

Pessimistic estimating for every task in the project plan

Critical Chain Project Management The weak link or constraint in the project chain is the resource that is at capacity taking multiple projects into consideration. High level solutions Restrict the number of simultaneous projects underway to get more work done Estimate each task “optimistically” as opposed to putting buffer into every task Create an overall project buffer Identify the resource constraints and develop strategies to reduce workloads Develop feeding buffers between tasks and projects Focus on project progress as opposed to task progress

The weak link or constraint in the project chain is the resource that is at capacity taking multiple projects into consideration.

High level solutions

Restrict the number of simultaneous projects underway to get more work done

Estimate each task “optimistically” as opposed to putting buffer into every task

Create an overall project buffer

Identify the resource constraints and develop strategies to reduce workloads

Develop feeding buffers between tasks and projects

Focus on project progress as opposed to task progress

Tool: Risk Management Every project has risk factors jeopardize the success of the project Problems with vendor deliverables Changes in Customer expectations Changes in the marketplace Government regulations Risk management assesses the probability of occurrence and impact on the project Develop mitigation strategies for the risks that you believe are highly probable

Every project has risk factors jeopardize the success of the project

Problems with vendor deliverables

Changes in Customer expectations

Changes in the marketplace

Government regulations

Risk management assesses the probability of occurrence and impact on the project

Develop mitigation strategies for the risks that you believe are highly probable

Tool: Change Management Scope changes to projects are inevitable Document every change and assess whether or not it should be implemented Re-assess impact of project time line Formal signature approval process

Scope changes to projects are inevitable

Document every change and assess whether or not it should be implemented

Re-assess impact of project time line

Formal signature approval process

Tool: Communication Plan How is your team going to communicate with each other and others in organization? Regular meetings Written notes Change log Risk management log Requirements documentation Status reporting

How is your team going to communicate with each other and others in organization?

Regular meetings

Written notes

Change log

Risk management log

Requirements documentation

Status reporting

Execute/Control Phase Deliverables Execute the plan Technology Projects Code Unit test System test Final acceptance test Data migration Hardware deployment Training Documentation Project Management Measure performance Change management Risk management Issue management Quality management Communications management

Execute the plan

Technology Projects

Code

Unit test

System test

Final acceptance test

Data migration

Hardware deployment

Training

Documentation

Project Management

Measure performance

Change management

Risk management

Issue management

Quality management

Communications management

Execute/Control Phase Characteristics Additional details are discovered which were not found during the plan phase. Potential for scope creep. Projects with no change control mechanisms slip out of control. Defects become more expensive to fix as the project progresses. Sometimes hard to define intermediate deliverables to ensure project is on schedule

Additional details are discovered which were not found during the plan phase.

Potential for scope creep.

Projects with no change control mechanisms slip out of control.

Defects become more expensive to fix as the project progresses.

Sometimes hard to define intermediate deliverables to ensure project is on schedule

Close Phase Deliverables Final user acceptance test approval Contract Closeout Administrative Closure Archived Documentation Lessons Learned Project Turnover to Support Customer Signoff

Final user acceptance test approval

Contract Closeout

Administrative Closure

Archived Documentation

Lessons Learned

Project Turnover to Support

Customer Signoff

Close Phase Characteristics Staff are rapidly assigned to other projects. In a hurry to get everything finished Tendency to overlook documentation Vendor wants to turnover system. Last minute scope changes are not properly approved or documented. The project change management process may have identified some features or functionality that have been deferred to the future. Ongoing support, if they are relatively easy to implement New project may be initiated for more expensive items

Staff are rapidly assigned to other projects.

In a hurry to get everything finished

Tendency to overlook documentation

Vendor wants to turnover system.

Last minute scope changes are not properly approved or documented.

The project change management process may have identified some features or functionality that have been deferred to the future.

Ongoing support, if they are relatively easy to implement

New project may be initiated for more expensive items

Management Expectations Project sponsor is ultimately responsible for accomplishing the project deliverables, target dates, and budget Resolve road blocks Get needed help Communicate quickly when issues arise Every project needs to have a project schedule and budget Next phase deliverable date should be pretty accurate Each project should save the planned baseline dates to compare actual versus baseline performance Dates need to be realistic, but aggressive Project charters Need to know target dates for project Need to know a target budget of anticipated expenses

Project sponsor is ultimately responsible for accomplishing the project deliverables, target dates, and budget

Resolve road blocks

Get needed help

Communicate quickly when issues arise

Every project needs to have a project schedule and budget

Next phase deliverable date should be pretty accurate

Each project should save the planned baseline dates to compare actual versus baseline performance

Dates need to be realistic, but aggressive

Project charters

Need to know target dates for project

Need to know a target budget of anticipated expenses

Management Expectations Monthly Reports Monthly written project status report Immediately identifies project issues and problems – fewer last minute surprises A report with “no change” in project status translates to “I could have stayed at home - nothing was done this month”

Monthly Reports

Monthly written project status report

Immediately identifies project issues and problems – fewer last minute surprises

A report with “no change” in project status translates to “I could have stayed at home - nothing was done this month”

Tool: Lessons Learned Regular assessment of project track record throughout the life of the project What did we do well? What could we have done better?

Regular assessment of project track record throughout the life of the project

What did we do well?

What could we have done better?

Resources Project Management Institute www.pmi.org “Project Management Body of Knowledge” Local universities Other web resources

Project Management Institute

www.pmi.org

“Project Management Body of Knowledge”

Local universities

Other web resources