Project Management


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These are the slides to my project management introductory course.

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Project Management

  1. 1. Project Management Seminar Mark Roman, B.Math, M.B.A., P.M.P. Chief Information Officer University of Victoria
  2. 2. 2 Agenda Summary Project Governance Project Management Knowledge areas:  Scope  Schedule  Estimating  Cost  Documentation  Quality  Resources  Communications  Risk  Procurement Project Management Methodology Project Management Fundamentals Introductions
  3. 3. 3 Introductions  Who are you?  Favourite project  Worst project  Expectations from the seminar  Preferred focus
  4. 4. Project Management Fundamentals  What is a project?  What is project management?  Why manage projects?  Where do projects come from?  Project process model  How to improve the project management process  Project management knowledge areas
  5. 5. 5 What is a Project?  A project is a temporary endeavor undertaken to create a unique product or service • Temporary = Definite beginning & end • Unique = product or service is different in some way from existing products or service  A means to respond to requests that cannot be addressed through an organization’s normal operational limits  A funded ephemeral event that delivers value  The way work gets done in a growing number of companies including ABB, Hewlett- Packard, US West, Motorola, etc.  Building blocks in the design and execution of an organization’s strategies
  6. 6. 6 What is Project Management?  Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements  Managing the work of projects:  Competing demands for:  Scope  Time  Cost  Risk  Quality  Stakeholders with different needs and expectations  Project management is a process  When you have a standard process, you can continuously improve it
  7. 7. 7 Why Project Management?  Imagine running your institution without financial accounting management …  No documented processes  No understanding of processes  No common language  No standards  No data collection or reporting  No knowledge management  No educational requirements … no success  Running projects without project management leads to the same result
  8. 8. 8 Why Project Management?  PM Solutions, “Value of Project Management Survey,” Value of Project Management 66% 32% 53% 79% 58% 37% 55% 0% 20% 40% 60% 80% 100% Profitability Time to market Alignment to business strategy Meeting delivery dates & budgets Product quality Resource productivity Customer satisfaction
  9. 9. 9 Where do Projects Come From? Processes Projects Organizations only do two things … Ongoing day-to-day operational work. Activities with a fixed start and finish. … organizations use projects to execute change.
  10. 10. 10 Project Process Model Initiation Defining objectives, and authorizing and funding the project Planning Defining course of action to achieve the objectives Executing Coordinating resources to carry-out the plan Controlling Monitoring progress and acting on variances Closing Formalizing acceptance and bring it to an end
  11. 11. 11 Project Process Activity Levels  Processes overlap  Not discrete  Variations in activity level over time  All project managers do these processes – knowingly or not. They may do them well or they may do them wretchedly, but they always do them.
  12. 12. 12 Project Management Maturity Model Time Maturity Level 1: Initial Level 2: Repeatable Level 3: Defined Level 4: Managed Level 5: Optimized • PM awareness but no effective usage • Ad hoc and chaotic PM process • Success requires heroes • Simple PM processes established to track cost, schedule, & functionality • Process discipline in place to repeat earlier success • Project management process documented, standardized, & integrated • All projects use a standard process for project management • Detailed measures of process and quality collected • Project management process quantitatively understood and controlled • Continuous process improvement based on quantitative feedback • Piloting innovation • Integration with institutional systems
  13. 13. 13 Processes, Standards, & Methodologies Project Management Methodology Other Methodologies Product Development Lifecycle Methodology Business Process Analysis Methodology Systems Development Methodology Templates Lessons Learned Best Practices Process Models Standardization Quality Audits Benchmarking Industry guides
  14. 14. 14 Project Characteristics by Organisation Organisation Type Functional Weak Matrix Balanced Strong Matrix Projectized Project Character Project Manager’s Authority Minimal Limited Moderate High Total Full Time Staff Assigned to Projects None 25% 50% 75% 100% Project Manager’s Role Part time Part time Full time Full time Full time Common Project Manager Labels Project Coordinator Project Leader Project Manager Project Manager / Program Manager Project Manager / Program Manager PM Admin Staff Part time Part time Part time Full time Full time
  15. 15. 15 Key Roles in Projects Executive Sponsor • Enterprise-wide influence • Spearheads systemic organization change • Owns the results of strategy Steering Committee • Funding decisions • Selects, prioritizes, & evaluates the corporate project portfolio • Escalation for strategic project issues • Responsible to ensure promised benefits are realised PMO Director • Pan-organizational project oversight • Corporate-wide resource allocation • Ensures project management processes are executed consistently • Process owner and resource manager Project Manager • Individual project management • Execute projects that are closely coupled with corporate & departmental goals • Manages the day-to-day tasks necessary to move the project through all its phases Project Team • Executing the day-to-day tasks necessary to move the project through all its phases • “Help the crowd stand out, rather than stand out in a crowd” • Focus on the project customer • Transcend functional specialty and silos
  16. 16. 16 Project management knowledge areas Scope What are we going to do? Time When is it going to get done? Cost How much is it worth to the sponsor? Quality Did we do what we said we would do? Human Resources Who is going to do it? Communications What do we say to who at what time? Risk What can we do to avoid failure? Procurement How do we work with outsiders? Integration How will we work together?
  17. 17. 17 The Art & Science of Project Management  The art of project management  Leadership  Negotiation  Motivation  Team-building  Facilitation  Innovation  The science of project management  Planning  Scheduling  Cost control  Administration  Detailed technical tasks
  18. 18. 18 Breakout 1: Identify Potential Projects  What are some good ideas for projects?  Brainstorm potential projects  Reasonable  Do-able  Valuable
  19. 19. 19 Ownership of Projects  Who owns the project?  Project manager?  Users?  Project staff?  Sponsors?  The secret to great project management is to never own the project  As a project manager, you are the conduit through which the dreams of your sponsor(s) and stakeholders flow
  20. 20. 20 Project Management Methodology  Should all organizations manage projects the same way?  Can project management be applied to aerospace, pharmaceuticals, and marketing the same way?  Value in consistently applying same principles, as long as those principles make sense
  21. 21. Control Mechanisms Steering Committee Role Project Flow Portfolio assessment • Priorities • Risk • Strategic fit Status reporting Fiscal budget Risk plan Scope Resource plan Schedule Quality plan Communication plan Vendor management Base budget Support resources Benefit measures Project Life Cycle Initiation Planning Execution Closure Asset Maintenance Reject Approval Not Needed Review Charter Cancel Not Successful Monitor Status Approval Continue Execution Not Accepted Accepted Review Deliverable Reject Not Sufficient Review Plan Approval Plan Project Document Implement Plan Revisions Progress Shutdown Project Final Product Maintain Asset Initiate Next Phase New Project Work Support Work Benefit Realization Issue log Change control Develop Project Charter Document Needs
  22. 22. Project Charters  Why write a project charter?  Content (template)  Evaluation criteria  Steering committee process
  23. 23. 23 Why Write a Project Charter?  Project charter is required for new projects  Purpose of project charter  Business case to justify the project  Document project parameters  Guide project development  Acquire formal authorization to proceed to the next step in the project  Authorize the use of resources to develop detailed project plan  Sufficient information to help the steering committee make their decision  Standard template  Generally brief: 3 to 5 pages
  24. 24. 24 Contents of a Project Charter  Purpose of project  Benefits  Project owners  In scope  Out of scope  Constraints  Assumptions  Options  Resourcing  Milestones  Work breakdown structure  Person days needs  Users  Risks  Costs
  25. 25. 25 Project Charter Evaluation Criteria New Project Undergrad Studies Strategy: Enhance the student university experience Positive transition from high school to university Establish first year coordinator in SASC Hurdle1: Doestheprojectmeettheuniversity’sgoals? Criteria Description Yes/No Expenses Lower the cost to operate the university. Velocity Deliver products & services faster Capacity Handle more work with same resources Satisfaction Improve customer service and satisfaction NPV Positive net present value of costs & benefits Decisioning Improves ability to make more collaborative and timely decisions Leverage Maximize use of existing assets MarketShare Grow volume profitably Innovation Increase innovation & improve learning processes. Passed Project Hurdle2: Howwelldoestheprojectmeettheuniversity’sgoals? Risk Lower risks of running the university Mandated Non-negotiable operational requirement or legislative demand. Appoint first year coordinator in FASS Implement academic advising plan Integrate Campus Life & Career Services into SASC Increase co-ops and placements Strategy: Continually improve the quality of the student body Set appropriate enrolment targets in programs & faculties Raise high school entrance averages relative to province Increase proportion of high achieving students Set appropriate targets for internation- al students Review articulation agreements Strategy: Improve retention and graduation rates Grad Studies Strategy: Enhance university’s activity & profile in grad studies & research Increase student volume & improve student quality Use grad funding to improve student quality Grow external funds for research, infrastruct- ure, awards Define strategic research areas Assist in develop- ment of student recruitment plans Grow circulation & use of research results Grow internation- al character of research work & partners Support for Teaching and Learning Strategy: Strengthen teaching & learning support Grow EDC: orientation and instruction in pedagogy Improve Library: access to info and resources Reward achieve- ment in instruction, pedagogic- al research Emphasize teaching achieve- ments for tenure/ promos Faculty and Staff Strategy: Recruit and retain highest quality staff Congenial, supportive, equitable work environ- ment Multi-year schedule for hiring faculty and staff Promote collabora- tion with employee groups Advancement Strategy: Strengthen university’s position regionally, nationally, and internationally Develop integrated plan for all Advance- ment units Develop diverse and equitable institutional image Community Strategy: Foster identification & attachment to Carleton Promote community of learning Develop university- wide events Promote diversity and civility Develop university organized culture events on campus Infrastructure and Financial Management Strategy: Improve the physical plant and campus infrastructure Refine and develop Campus Master Plan Improve physical appearance & cleanliness of campus Create comfortable spaces Continue install and upgrade of campus network Address deferred mainten- ance backlog Continue to implement new admin system Strategy: Maintain financial viability of the university Improve and modify global budgeting system Reduce accumulat- ed deficit Maximize external funding of projects 9/22/2003Generic model Banner Steering Committee Project Evaluation Criteria Continue university retention committee Monitor impact of new rules on retention & update Implement clear & uniformly applicable rules Correct courses with high no-credit rates Support mission of CIE  Two project hurdles:  Does the project meet any of the institution’s strategic goals?  If yes, how well does it meet those goals?
  26. 26. 26 Steering Committee Project Charter Review  Submitted a few days before meeting to all members  Author(s) attend meeting to answer questions (not present contents)  Steering committee will decide one of the following: Approval to plan: Approval to spend the resources necessary to develop a detailed project plan (large, complex projects) Approval to execute: Approval to proceed with project execution (small, inexpensive, quick projects) Approval in principle: Approval in principle to proceed with the project subject to certain conditions. These conditions require follow-up with the steering committee before proceeding with project plan development or project execution. On hold: Approval in principle with the project concept, but further work is put on hold until certain conditions are met. No work is to proceed on the project until steering committee judges needed criteria are met. Rejection: The project charter does not meet the project evaluation criteria and all work will halt on the project.
  27. 27. 27 Change Request or Project? Submit new request by functional area Review request by project office Schedule request by project office Start work by team Review of project charter by steering Hold request Review of project charter by steering No additional resources required Additional resources required Low priority and less than 20 days and low impact and not complex High priority, or more than 20 days, or high impact, or complex Resources available Resources not available Develop project plan Cancel project or revise charter Approval Rejection Cancel project or revise charter Review of charter by budget committee Develop project plan Cancel project or revise charter Approval Rejection Approval Rejection
  28. 28. 28 Breakout 2: Write a Project Charter  Develop a project charter  Sell your idea  Justify project  Convince others  Steering committee is the other members of the seminar
  29. 29. 29 Project Prioritization  Linking projects to strategy  When you have more projects than money and resources, how do you choose?  Dimensions of the problem:  Strategic priority  Return  Risk  Fit, utility, and balance
  30. 30. 30 Project Management & Strategy Strategy ProjectManagement Project A Project B Project C Purpose Benefit Initiative 1 Purpose Benefit Project F Project D Project E Initiative 2
  31. 31. 31 Project Portfolio  Plot risk and priority Risk High Medium Low High • Decommission of CP6 • Internal Summary Reporting • Automate Portfolio Requirements • Class Scheduling • Interface Purchase Requisitions • Electronic Gradebook • Interface Library and A/R • Interface Campus Card with OC Transpo Priority Medium • Fixed Assets and Capital Budgeting • Investment Management • Remote Cheque Requisition • OUAC Upgrades • Accept Payment for Tuition over the Web • Automated Average Calculation for 105 Applicants • Direct Deposit for Student Refunds • Enhancing Student Service over the Web • Transfer Articulation in DARS • Automated Equivalency and Load into DARS • Document Imaging for FAST Reporting • Direct Deposit for Travel Expenses • Document Finance Processes • Remote Access • eCommerce (e.g. application fees) • Remote PO Requisitions • Intranet for Banner Finance • Test Environment for Millennium • Registration Enhancements • Electronically Import OSAP Data Low • Automated Travel Expense Claims • Admissions through Web and eCommerce • Receiving EDI Transcripts • Document Management + Imaging • Workflow • Offline Database & Query Facility • Banner Parking Management • Archiving Solutions • Connect Single Sign-on • User Friendly JV Form • Force Password Change • System to Support Paul Menton Centre • Benchmark Other Institutions • Link Web Audit to Course Calendar & Registration • Banner Web for Alumni Research & Implement
  32. 32. Project Plans  What is a project plan?  Scope planning  Schedule planning  Budget planning  Quality definition  Resource allocation  Communications strategy  Risk management  Vendor relationship Fail to plan and you plan to fail.
  33. 33. 33 What is a Project Plan?  Document used to used to:  Guide project execution and control  Document project planning assumptions  Facilitate communication amongst stakeholders  Define key management review activities  Provide a baseline for project measurement and control  Second stage of approval process for steering committee  Changes over time as project circumstances dictate  Scaleable  Sufficient level of detail for:  Steering committee to commit resources  Project manager to run the project
  34. 34. Scope  All the work required, and only the work required, to complete the project successfully  Major project scope management processes:  Planning: written scope statement  Definition: dividing deliverables into smaller, manageable components  Verification: formalizing acceptance of the project scope  Change Control: managing changes to project scope
  35. 35. 35 Scope Planning  What is a WBS?  Identifies all the tasks in a project  Each task is one measurable unit of work  Once you can schedule, budget, and assign resources for each task in the list, you have defined the total scope of the project  Understand the whole project by understanding its parts  Used to develop and confirm common understanding of project scope  How do you get there?  Hierarchical decomposition  Start at the top level of project deliverables  Continuously sub-divide deliverables into smaller more manageable components  Stop when you can assign adequate cost and time estimates  The definition of adequate changes as the project progresses  Engage SME’s in the development through facilitated sessions
  36. 36. 36 Scope Planning  Sample work breakdown structure (WBS), U.S. Department of Defense
  37. 37. 37 Scope Planning  Sample work breakdown structure (WBS), software development
  38. 38. 38 Scope Planning  Rules of thumb for adequate level of detail  8/80 rule  No task should be less than 8 hours or more than 80 hours (1 to 10 days)  Reporting period rule  No task should be longer than the time between 2 status reporting dates  Smaller is better  Smaller tasks are more certain, so estimates are more accurate  Smaller tasks can be assigned to less people, improving accountability  Smaller tasks are easier to track progress  Why develop a WBS?  Detailed understanding of scope of work  Basis for monitoring progress  Facilitates accurate cost and schedule estimates  Clarifies work assignments
  39. 39. 39 Scope Change Control  Changes are inevitable  Requires management process:  Document every change request  Description  Why requested  Who requested, who will do  Action taken  Assess impact of change  Formally approve/reject  Communicate cost, time, resource effects  Track all activity in change log
  40. 40. 40 Breakout 3: Develop WBS  Develop a work breakdown structure for your project  Do at least the first three levels  Is it understandable?  Can you explain the key work elements to others?  Is It useful for dividing the work load across project team members?
  41. 41. Schedule  Ensure the project is completed on time  Major scheduling processes:  Definition: activities to be performed  Sequencing: dependencies amongst activities  Duration: time needed to do activities  Schedule Development: create the schedule by analyzing activity sequences, durations, and resource needs  Schedule Control: managing schedule changes
  42. 42. 42 Schedule Planning  Using tasks from WBS:  Identify dependencies amongst tasks  Develop sequence or order of precedence that the tasks must follow  Mandatory dependencies  Hard logic that forces a particular series of steps to be followed in order  Discretionary dependencies  Preferred logic that suggests a desired series of steps to be followed  External dependencies  Relationships between project activities and non-project activities  Milestones  Checkpoints where a series of dependent tasks converge and terminate  As you structure your WBS tasks into a sequence of steps, you will prefer to diagram their relationships  Don’t worry about time or resources yet  Regardless of resources, the tasks must be executed in the same order
  43. 43. 43 Schedule Planning  Four types of scheduling dependencies:  Finish-to-start  Initiation of successor depends on completion of predecessor  Normal sequence of events  Finish-to-finish  Completion of successor depends on completion of predecessor  Sometimes tasks must be co-terminus  Start-to-start  Initiation of one task depends on initiation of another task  Sometimes tasks need to start at the same time  Start-to-finish  Completion of one task is dependent on initiation of another task S F S F S F S F S F S F S F S F
  44. 44. 44  Arrow Diagramming Method: Precedence Diagrams  Activity On Node diagram:
  45. 45. 45 Schedule Planning  Once you have logically sequenced your tasks you can estimate cost and duration of each task  For each task develop:  Schedule estimate:  The time needed or full duration required to complete the task. For example, it may take two days to paint the room, but 5 days to decide on the color – so the duration is 7 days.  Evaluate human resources available to do the job. If two people are available, and if the work can be evenly divided, then it would take 1 day to paint the room and the task duration declines to 6 days.  Cost estimate:  Total labour required to complete the task  Equipment use (crane needed for 4 hours at $x per hour)  Materials needed by the task (200 bricks needed to build wall)
  46. 46. 46 Schedule Planning  What path gives you have zero flexibility?  If tasks D, E, and F have no slack time, they are called the critical path  Critical path is:  Longest duration path through the network  Minimum amount of time the project can take  Becomes managerial focus
  47. 47. 47 Schedule Planning  Precedence diagram and tasks durations work together to build initial schedule  You know the order of tasks and how long they will take Start Task A 2 days Task B 4 days Task C 4 days Task E 12 days Task D 1 days Finish
  48. 48. 48 Schedule Planning  Start at the beginning and calculate the earliest start and earliest finish for each task  The earliest finish date for the whole project is 16 days ES=1 EF=2 ES=1 EF=4 ES=5 EF=8 ES=5 EF=16 ES=9 EF=9 Start Task A 2 days Task B 4 days Task C 4 days Task E 12 days Task D 1 days Finish
  49. 49. 49  Now you know the earliest possible finish is after 16 days  Work backwards from is latest possible finish date, calculating latest start and latest finish dates Schedule Planning ES=1 EF=2 ES=1 EF=4 ES=5 EF=8 ES=5 EF=16 ES=9 EF=9 Start Task A 2 days Task B 4 days Task C 4 days Task E 12 days Task D 1 days Finish LS=10 LF=11 LS=12 LF=15 LS=16 LF=16 LS=1 LF=4 LS=5 LF=16
  50. 50. 50  How much flexibility do you have in each task? Subtracting the earliest start from the latest start tells you how much “float”, or slack, you have in the schedule  Task D can start as early as day 9 or as late as day 16 Schedule Planning ES=1 EF=2 ES=1 EF=4 ES=5 EF=8 ES=5 EF=16 ES=9 EF=9 Start Task A 2 days Task B 4 days Task C 4 days Task E 12 days Task D 1 days Finish LS=10 LF=11 Float=9 LS=12 LF=15 Float=7 LS=16 LF=16 Float=7 LS=1 LF=4 Float=0 LS=5 LF=16 Float=0
  51. 51. 51 Schedule Planning  Next step is to assign resources  Adjust the schedule to the reality of limited resources and optimise use of staff  Adjust the schedule to keep staff busy at a reasonable rate  Over-allocation:  Too many concurrent tasks for staff available  Specialists particularly limited  Under-allocation  Too many resources for concurrent tasks to be done  Re-assignment to other projects with resultant knowledge loss  Process  Forecast resources based on initial schedule  Identify resource peaks: where are resources working more than 40 hours/week  During peak periods, delay non-critical tasks (ones with float) to periods where there are valleys  Not all peaks may be eliminated, so re-evaluate work  Consider overtime, adding resources, splitting task into smaller parts to spread out load across staff (add budget)  Review completion dates (add time)
  52. 52. 52 Schedule Planning  Sample project network diagram
  53. 53. 53 Schedule Planning  Sample Gantt chart OUAC HSA EMAS Letter generation Transfer artic. DARS Interfaces e-Visions ESIS/UAR UGAFA June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.
  54. 54. 54 Schedule Monitoring  Once the project is started and a baseline is created, you need to focus on where you are going, not where you’ve been  An up-to-date project schedule serves as a radar screen for potential problems  Critical path issues created by missed deadlines  Resource allocation conflicts created by workload estimation variances from actuals
  55. 55. 55 Schedule Monitoring  Updated Gantt chart OUAC HSA EMAS Letter generation Transfer artic. DARS Interfaces e-Visions ESIS/UAR UGAFA June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Feb. 24
  56. 56. 56 Breakout 4: Build project schedule  Build the schedule for your project  Draw a Gantt chart for your WBS showing:  Tasks  Durations  Dependencies  Is it reasonable?  Does it clarify milestones and deadlines?  Can project team members use it to plan their work?
  57. 57. Documentation
  58. 58. 58 Project Administration  Library of all project documents/knowledge  Web site  Database  File directory  Continual update & access by all team members  Need a central person to coordinate, prune, and publish  Key components  Project charter  Plan  Statuses  Schedule  Budget  Risk plan  Issue log  Scope documents
  59. 59. 59 Project Portfolio
  60. 60. 60 Project Status
  61. 61. 61 Project Tasks
  62. 62. 62 Project Description
  63. 63. 63 Project Metrics
  64. 64. 64 Project Resources
  65. 65. 65 Program Summary
  66. 66. 66 Issue Log
  67. 67. 67 Issue Actions
  68. 68. 68 Project Risks
  69. 69. 69 Closure Process “While most project management groups are good at capturing lessons learned and storing them in some way, the step where knowledge management fails is in the transfer of that knowledge to future projects.” From research paper presented to International PM Association Capture (75%) Store (62%) Retrieve (55%) Apply (25%)
  70. 70. Estimating  Techniques used to develop approximate plan values
  71. 71. 71 Estimating Challenges  Need to create realistic time & cost estimates  Every project is unique, so there is no way to build an exact estimation  New staff = unknown productivity  New product = unknown activities & complexities  New technology = learning curve and unpredictable reliability  At the beginning of a project it is difficult to foresee the volume and degree of changes  Business cases tend to over-sell the benefits and under-estimate the costs for the sake of being approved, create reality-expectation gap  Accurate estimates are most critical at the beginning of the project when mistakes are most easily corrected, but …  Accuracy improves over the life of the project as experience grows Accuracy Time Overestimates Underestimates
  72. 72. 72 Estimating Techniques  Analogous estimating  Top down, using the actual costs of previous, similar projects from internal lessons learned databases or commercial databases  Parametric estimating  Use a rule of thumb, for example a 2,000 sq.ft. house will cost $200k to build so your 3,000 sq.ft. project home will cost $300k  Bottom-up estimating  Develop a separate estimate for each activity and roll them up  Most effort & most accurate  Rolling wave (phased gate) estimates  Detailed estimate for current project phase and rough estimates for future phases  Expert judgment  Leverage experience of others who have worked on similar projects  Vendor bid analysis  Send out a request for proposal and compare bids (allow for profit margin)  In all cases, the staff doing the work need to develop the estimate  Build understanding & commitment
  73. 73. 73 Estimating  During project start-up, there will be pressure to cut estimates  Once the scope is developed and , schedule and cost are estimated there will be continuous and inevitable pressure to:  Increase scope  Reaction: increase cost and/or schedule  Shorten schedule  Reaction: increase cost and/or decrease scope  Lower cost  Reaction: decrease scope  At some point, these constraints will be squeezed to their limits (law of diminishing marginal returns)  “The first casualty in war is truth” …  “The last casualty in projects is quality …” ScopeTime Cost Quality ScopeTime Cost
  74. 74. Cost  Ensure that the project is completed within the approved budget
  75. 75. 75 Budget and Cost Management  Manage projects like a start-up business  Structured budget into functional accounts  For example, allowed tracking by sub-projects or by vendors  Create accounts that are meaningful for tracking purposes  Regularly develop forecast based on actual-to-budget variance trends  Regular reporting  Report monthly on actuals against budget and forecast  Review financial data monthly to identify variances and act if necessary
  76. 76. 76 Earned Value Analysis  Project management has traditional tools for managing schedule (e.g. Gantt charts) and budget (e.g. spreadsheets)  How do you relate budget performance to schedule progress?  Earned Value Analysis attempts to do it  A little tricky to understand and difficult to communicate to stakeholders  Uses 3 measures:  Planned value:  The part of the approved cost estimate you planned to spend on the scheduled activity during the period  What you planned to spend at this point in time  Actual cost:  The real costs incurred in accomplishing the scheduled activity during the period  What you actually spent on the work completed  Earned value:  The value of the actual work completed during the period based on estimate from original plan  What you planned to spend for the work completed
  77. 77. 77 Earned Value Analysis Schedule Variance Cost Variance
  78. 78. 78 Breakout 5: Estimate budget  Create a budget for your project  Use estimating techniques to predict project costs  Account for timelines in schedule  Use meaningful account names  Identify key project cost elements  Where is the bulk of funding required?  Where will you source the funding?
  79. 79. Quality  Ensure that the project will satisfy the needs it was intended to meet  Major project quality management processes:  Quality Planning: identifying quality standards and how to satisfy them  Quality Assurance: evaluating if project will satisfy quality standards  Quality Control: monitoring project results for compliance and eliminating problems
  80. 80. 80 Quality Planning  Quality policy  Formal definition of quality to the organization and project  Conformance to requirements: project produces what it said it would produce  Fitness for use: product or service satisfies real needs  Prevention over inspection  Management responsible for providing resources necessary to succeed  Plan-do-check-act … plan for variances, measure them, and do something about them
  81. 81. 81 Quality Planning  How to develop quality policy  Product definition: expectation of what the project will produce  Standards & regulations: industry standards  Cost/benefit: how much are you willing to spend for a desired level of quality  Benchmarking: comparison of quality practices  Experiments: statistical sampling  Cause & effect diagramming: map out interactions that drive defects
  82. 82. 82 Quality Planning  Quality management plan:  A system designed to manage project quality  “the organisational structure, responsibilities, procedures, processes, and resources needed to implement quality management” ISO 9000
  83. 83. 83 Breakout 6: Quality Statement  Develop a quality statement for your project  What overarching quality principles do want to apply?  Do you have a plan for testing?  How much quality do you want?  Are there any quality tradeoffs?
  84. 84. Resources  Make the most effective use of the people involved with the project  Major processes:  Organizational Planning: roles, responsibilities, reporting relationships  Staff Acquisition: getting the human resources needed  Team Development: developing individual and group competencies to enhance project performance
  85. 85. 85 Human Resources  Nothing unusual about project management human resources  Use standard HR practices management practices  Organizational planning  Staff management plan: when and how resources will enter and leave project  Organizational Breakdown Structure (OBS): which organizational units are assigned which work packages – mapping people to the WBS  Responsibility assignment matrix: specific roles by project phase  Collocation is the #1 team building best practice for projects
  86. 86. 86 Staff Enhancement  Continuous intellectual capital growth is the only sustainable competitive advantage  Exceptional educational opportunities (training, certification)  Assigning work becomes a balance between the needs of the staff and the needs of the organization  Continuous feedback based on immediate assignment completion Pool of project staff and SME’s Resource Manager Project Manager Project Manager Project Manager Functional Partner Functional Partner Functional Partner Project Organization  Separating the management of work from the management of people focuses attention on staffing issues
  87. 87. Communications  Generation, collection, dissemination, and storage of project information  Links people, ideas, and information  Major processes:  Communications Planning: who needs what, when, and how  Information Distribution: making needed information available  Performance Reporting: status, progress, and forecasting  Administrative Closure: information to formalize completion
  88. 88. 88 Communications Strategy  Who needs what information, when will they need it, how will it be given to them, and by whom  Review stakeholder’s information needs and develop a plan to satisfy those needs  Communications plan  Procedures for collecting, filing, and disseminating project information  Distribution structure to whom what info will flow (e.g. who gets status reports)  Description of the information to be distributed: format, context, level of detail, and conventions  Timetable for each type of communication  Methods of access for “pull” information  Plan for updating the communications plan
  89. 89. 89 Project Status Reporting  Weekly status of project formally documented  Written report  Simple focus on progress, issues, and next steps  Encourage realistic reporting  Bullet list for quick scanning  Results  Awareness creates greater confidence in project  No surprises  No secrets  No silver bullets  Meeting minutes are not status reports
  90. 90. 90 Weekly Management Review  Project manager reviews accomplishments, issues, and plans  Forum for:  Discussing issues  Creates shared awareness of status of all project activity  Opportunity to question anything  Debate on approach to any project activities  Identify issues requiring escalation to steering committee  Policy  Funding  Diplomatic support
  91. 91. 91 Communication Messaging  Consistent key messaging  Demonstrate, don’t speculate  Match expectations with reality  No “rah-rah” messages  Its better to say nothing until you have something to show
  92. 92. 92 Breakout 7: Staff & Communications Plans  Develop a resourcing plan for your project  What skills do you need?  When do you need them?  Do you expect any resource acquisition issues?  Develop a communications plan  Who are your target audiences?  What messages do you wish to convey?  Timing of messages?
  93. 93. Risk  Events that may happen in the future that could impact project objectives
  94. 94. 94 Continuity plans • Triggers & symptoms • Escalation process • Action plans • Redundancy/fail-over technology Risk options • Avoidance • Transference • Mitigation • Acceptance Business Continuity Risk assessment • Probability of occurrence • Impact of potential loss • Tolerance Environmental assessment • Ice storms and power outages • Increasingly powerful viruses • Terror threats
  95. 95. 95 Risk Management Process  Perform risk assessment  Step 1 - Risk management plan developed  Step 2 - Risk assessment team assembled  Step 3 - Risk generation process executed  Step 4 - Risk list rationalized  Step 5 - Risks ranked and prioritized  Step 6 - Response plans written  Step 7 - Risk review process established and running monthly  Institutionalize ongoing risk assessment  Ongoing risk reviews  Execution of risk response plans if necessary
  96. 96. 96 Risk Management Process  Step 1 - Risk Management Plan  Described how you will implement risk management  Specific contents  Risk management methodology  Approach  Roles  Timing  Reporting  Risk categories  Risk definitions  Response planning  Monitoring & control Approve Approach Brainstorm Risks Review List Characterize Risks Prioritize Risks Response Planning Monitor & Control
  97. 97. 97 Risk Management Process  Step 2 - Risk Assessment Team  Key project leaders  Project SME’s  Risk managers  Internal auditors  External risk experts (consultants)
  98. 98. 98 Risk Management Process  Step 3 - Risk Generation Process  Hold brainstorming sessions with full team  Use standard risk categories to generate ideas  E.g. Technology, Quality, Assumption, Schedule, etc.  Raw risks generated through these sessions
  99. 99. 99 Risk Management Process  Step 4 - Rationalized Risk List  Remove redundant risks  Some risks are really issues  Some risks are symptoms of larger problems  Create summary risk list
  100. 100. 100 Risk Management Process  Step 5 - Ranked Risks  Team voting by:  Impact of the potential loss  Probability of occurrence Degree of impact Financial estimate Numerical value Low Less than $250,000 1 Medium $250,000 to $1,000,000 4 High $1,000,000 to $3,000,000 16 Very High $3,000,000 and over 32 Degree of probability Probability estimate Numerical value Low 1– 25% (unlikely) 1 Medium 26–50% (possible) 2 High 51–75% (more likely than not) 3 Very High 75-100% (quite probable) 4
  101. 101. 101 Risk Management Process  Step 5 - Ranked Risks (Continued)  Review by steering committee  Apply common sense to adjust unusual risks Score Grade 0 – 10 E 10 – 20 D 20 – 30 C 30 – 40 B 40 – 60 A
  102. 102. 102 Risk Management Process  Step 6 - Response Plans  Write response plans for each of the risks:  Name  Description  Initiation  Triggers  Symptoms  Options  Avoidance  Transference  Mitigation  Acceptance  Action plan  Secondary risks
  103. 103. 103 Risk Management Process  Step 7 - Risk Review Process  Regular review of each risk by project team  Review of risk list with steering committee  New risks can be added  Fully resolved risks can be removed  Ranking of individual risks may change
  104. 104. 104 Breakout 8: Risk Management Plan  Create a risk management plan your project  Identify key risks  Probability of occurrence?  Degree of impact?
  105. 105. Procurement  Acquire goods and services from an outside organization  Major processes:  Procurement Planning: determining what to buy  Solicitation Planning: documenting requirements and sources  Solicitation: obtaining quotations, bids, offers, or proposals  Source Selection: choosing a vendor  Contract Administration: managing the relationship  Contract Closeout: completion of the contract
  106. 106. 106 Vendor Management  Outsource anything that is not a core competency  Some projects are entirely implemented through contracts  Process:  Statement of work: clear detailed specification of what you want contractor to do  Solicitation document:  Bid or quotation for price based decisions  Procurement document for proposals  IFB: Invitation For Bid  RFP: Request For Proposal  RFQ: Request For Quotation  Set evaluation criteria:  Understanding your requirements  Full lifecycle costing  Technical capability  Financial capability  Managerial strength
  107. 107. 107 Vendor Management  Process (continued):  Distribute solicitation document:  Qualified seller lists  Bidder conferences: meeting to clarify proposal  Advertising  Merx  Select a contractor:  Concurrent negotiations with short listed vendors  Weighting system: quantify evaluation criteria  Screening system: minimal requirement threshold  Independent estimates: external cross-check of pricing  Develop contract  Implement contract change control system
  108. 108. 108 Vendor Relationships  Pay your bills  Focused on developing long term relationships  Today’s negotiation creates setting for the next negotiation  You have to live with the vendor for the life of the project  Be honest  Everything you learned in Kindergarten applies here  Most projects have multiple vendors  Some projects exist only to coordinate multiple vendors
  109. 109. Governance  Decision making and leadership
  110. 110. 110 Project Governance Steering Committee Projects exist to realize the aspirations of their stakeholders Focus • Sharing information (“Open the kimono”) • Education of issues (before resolving issues) • Mutuality-of-interest problem solving Role • Approve/request policy • Authorize funding • Monitor progress and metrics • Realize benefits Mandate • To govern the selection, development, & implementation of projects • To continually improve the governance process • To resolve institution-wide project issues • To generate strategic change initiatives
  111. 111. 111 Leadership  Most important project manager leadership characteristics (PM Network): Soft skills 69% Strategic vision 19% Technical knowledge 6% Industry experience 6%
  112. 112. 112 Leadership  Typically, project managers have no one reporting to them through traditional hierarchy  Key leadership levers are:  Influence  Reporting level  Expertise  Budget control
  113. 113. 113 Enterprise Systems Maturity Model  Implementing: developing, integrating, and installing the system  Post Go-Live: managing the environment immediately after implementation  Stabilizing: improving control and management processes  Leveraging: realizing productivity and other benefits of the system Time SystemMaturity Implementing Post Go-Live Stabilizing Leveraging Time SystemMaturity Implementing Post Go-Live Stabilizing Leveraging
  114. 114. 114 Maturity & Productivity Time SystemMaturity Implementing Post Go-Live Stabilizing Leveraging Time SystemMaturity Implementing Post Go-Live Stabilizing Leveraging Productivity Go Live Date Project Shock Zone Project Benefit Zone Productivity Baseline
  115. 115. 115 Maturity & Morale Time SystemMaturity Post Go-Live Stabilizing Time SystemMaturity Implementing Post Go-Live Leveraging Morale Reality Trough Recognition Go Live Date Kick off
  116. 116. 116 Maturity & Cost Cost Time SystemMaturity Implementing Post Go-Live Stabilizing Leveraging Time SystemMaturity Implementing Post Go-Live Stabilizing Leveraging
  117. 117. 117 Maturity & Value Time SystemMaturity Implementing Post Go-Live Stabilizing Leveraging Time SystemMaturity Implementing Post Go-Live Stabilizing Leveraging StrategicValue
  118. 118. 118 Why Are Enterprise Projects Hard to Do? Time SystemMaturity Implementing Post Go-Live Stabilizing Leveraging Time SystemMaturity Implementing Post Go-Live Stabilizing Leveraging
  119. 119. Summary  Thank you  Course evaluations
  120. 120. 120 Transition Planning  Planning for staff transition back to original departments  Who goes where and when do they go there?  Culture shock to go back to your old process/operational job
  121. 121. 121 Project Rules (with apologies to Einstein)  If we knew what it was we were doing, it would not be called a project, would it?  The most incomprehensible thing about projects is that they are comprehensible.  Anyone who has never made a mistake on a project has never tried anything new.  Try not to deliver a successful project but rather try to deliver a valuable project.  You do not really understand a project issue unless you can explain it to your grandmother.  Sometimes one pays most for the project solutions one gets for nothing.
  122. 122. 122 Recommended Reading Title Author Comments Project Management Harold Kerzner Textbook A Guide to the Project Management Body of Knowledge Project Management Institute Roadmap The Fast Forward MBA in Project Management Eric Verzuh Easy read Radical Project Management Rob Thomsett Pragamatic