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These are the slides to my project management introductory course.

These are the slides to my project management introductory course.

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    Project Management Project Management Presentation Transcript

    • Project Management Seminar Mark Roman, B.Math, M.B.A., P.M.P. Chief Information Officer University of Victoria
    • 2 Agenda Introductions Project Management Fundamentals Project Management Methodology Project Management Knowledge areas:  Scope  Schedule  Estimating  Cost  Documentation  Quality  Resources  Communications  Risk  Procurement Project Governance Summary
    • 3 Introductions  Who are you?  Favourite project  Worst project  Expectations from the seminar  Preferred focus
    • 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 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 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 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 Why Project Management?  PM Solutions, “Value of Project Management Survey,” Value of Project Management Customer satisfaction 55% Resource productivity 37% Product quality 58% Meeting delivery dates & budgets 79% Alignment to business strategy 53% Time to market 32% Profitability 66% 0% 20% 40% 60% 80% 100%
    • 9 Where do Projects Come From? Organizations only do two things … Processes Projects Ongoing day-to-day Activities with a fixed operational work. start and finish. … organizations use projects to execute change.
    • 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 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 Project Management Maturity Model • Continuous process improvement based on quantitative feedback Level 5: Optimized • Piloting innovation • Integration with institutional systems • Detailed measures of process and quality collected Level 4: Managed • Project management process quantitatively understood and controlled Maturity • Project management process documented, standardized, & integrated Level 3: Defined • All projects use a standard process for project management • Simple PM processes established to track cost, schedule, & functionality Level 2: Repeatable • Process discipline in place to repeat earlier success • PM awareness but no effective usage Level 1: Initial • Ad hoc and chaotic PM process • Success requires heroes Time
    • 13 Processes, Standards, & Methodologies Project Management Methodology Business Product Systems Process Development Other Development Analysis Lifecycle Methodologies Methodology Methodology Methodology Templates Best Practices Standardization Benchmarking Lessons Learned Process Models Quality Audits Industry guides
    • 14 Project Characteristics by Organisation Organisation Type Functional Weak Matrix Balanced Strong Matrix Projectized Project Project Manager’s Minimal Limited Moderate High Total Character Authority Full Time Staff None 25% 50% 75% 100% Assigned to Projects Project Manager’s Part time Part time Full time Full time Full time Role Common Project Project Project Project Project Project Manager Labels Coordinator Leader Manager Manager / Manager / Program Program Manager Manager PM Admin Staff Part time Part time Part time Full time Full time
    • 15 Key Roles in Projects Executive • Enterprise-wide influence • Spearheads systemic organization change Sponsor • Owns the results of strategy • Funding decisions Steering • Selects, prioritizes, & evaluates the corporate project portfolio Committee • Escalation for strategic project issues • Responsible to ensure promised benefits are realised • Pan-organizational project oversight PMO • Corporate-wide resource allocation Director • Ensures project management processes are executed consistently • Process owner and resource manager • Individual project management Project • Execute projects that are closely coupled with corporate & departmental goals Manager • Manages the day-to-day tasks necessary to move the project through all its phases • Executing the day-to-day tasks necessary to move the project through all its phases Project • “Help the crowd stand out, rather than stand out in a crowd” Team • Focus on the project customer • Transcend functional specialty and silos
    • 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 The Art & Science of Project Management  The science of project management  Planning  Scheduling  Cost control  Administration  Detailed technical tasks  The art of project management  Leadership  Negotiation  Motivation  Team-building  Facilitation  Innovation
    • 18 Breakout 1: Identify Potential Projects  What are some good ideas for projects?  Brainstorm potential projects  Reasonable  Do-able  Valuable
    • 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 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
    • Project Life Cycle Initiation Planning Execution Closure Asset Maintenance Revisions Project Needs Develop Implement Plan Shutdown Maintain Project Flow Charter Project Plan Project Asset Document Document Progress Final Product Support Work Approval Approval Approval Steering Review Review Monitor Review Benefit Committee Charter Plan Status Deliverable Realization Accepted Role New Project Not Needed Not Sufficient Not Successful Not Accepted Work Continue Initiate Reject Reject Cancel Execution Next Phase Status reporting Portfolio assessment Fiscal budget Base budget • Priorities Risk plan • Risk Scope Support resources • Strategic fit Control Resource plan Schedule Benefit measures Mechanisms Quality plan Communication plan Vendor management Issue log Change control
    • Project Charters  Why write a project charter?  Content (template)  Evaluation criteria  Steering committee process
    • 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 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 Project Charter Evaluation Criteria  Two project hurdles:  Does the project meet any of the institution’s strategic goals?  If yes, how well does it meet those goals? Project Evaluation Criteria Generic model 9/22/2003 Banner Steering Committee Support for Teaching and Learning Strategy: Strengthen teaching & learning support Grow EDC: Reward Emphasize Improve orientation achieve- teaching Library: and ment in achieve- access to instruction instruction, ments for info and in pedagogic- tenure/ resources pedagogy al research promos Criteria Description Yes/No Grad Studies Lower the cost to operate Expenses the university. Strategy: Enhance university’s activity & profile in grad studies & research Increase Grow Assist in Grow Use grad Grow student external Define develop- internation- funding to circulation volume & funds for strategic ment of al character improve & use of Deliver products & services improve research, research student of research Velocity student research faster student infrastruct- areas recruitment work & quality results quality ure, awards plans partners Handle more work with Undergrad Studies Capacity same resources Strategy: Enhance the student university experience Strategy: Continually improve the quality of the student body Strategy: Improve retention and graduation rates Integrate Set Raise high Positive Increase Set Monitor Implement Correct How well does the project meet the university’s goals? Establish Appoint first Implement Campus appropriate school Continue transition Increase proportion appropriate Review impact of clear & courses Support Improve customer service from high first year year academic Life & co-ops and enrolment entrance of high targets for articulation university new rules uniformly with high mission of Satisfaction and satisfaction Does the project meet the university’s goals? coordinator coordinator advising Career targets in averages retention school to placements achieving internation- agreements on retention applicable no-credit CIE in SASC in FASS plan Services programs & relative to committee university students al students & update rules rates into SASC faculties province Positive net present value NPV of costs & benefits Faculty and Staff Strategy: Recruit and retain highest quality staff Hurdle 1: Hurdle 2: New Congenial, Passed Improves ability to make supportive, Multi-year Promote Decisioning Project equitable schedule collabora- Project more collaborative and for hiring tion with timely decisions work faculty and employee environ- staff groups ment Maximize use of existing Leverage assets Advancement Strategy: Strengthen university’s position regionally, nationally, and internationally MarketShare Grow volume profitably Develop Develop integrated diverse and plan for all equitable Advance- institutional Lower risks of running the ment units image Risk university Community Innovation Increase innovation & Strategy: Foster identification & attachment to Carleton improve learning Develop processes. university Promote Develop Promote organized community university- diversity culture Mandated Non-negotiable operational of learning wide events and civility events on requirement or legislative campus demand. Infrastructure and Financial Management Strategy: Improve the physical plant and campus infrastructure Strategy: Maintain financial viability of the university Improve Refine and Continue Address Improve physical Continue to Maximize develop Create install and deferred and modify Reduce appearance implement external Campus comfortable upgrade of mainten- global accumulat- & new admin funding of Master spaces campus ance budgeting ed deficit cleanliness system projects Plan network backlog system of campus
    • 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 Change Request or Project? Resources available Low priority and less Start work than 20 days and low by team impact and not complex Schedule request by project office Hold request No additional Resources not resources required Review available request by project office Approval Develop project plan Review of project High priority, or more charter by than 20 days, or high steering Cancel impact, or complex project or Submit new Rejection revise request by charter functional area Approval Develop project plan Review of Approval charter by budget committee Cancel project or Review of Rejection revise project charter charter by Additional resources steering required Cancel project or Rejection revise charter
    • 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 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 Project Management & Strategy Strategy Project Management Purpose Purpose Benefit Benefit Initiative 1 Initiative 2 Project C Project E Project B Project D Project A Project F
    • 31 Project Portfolio  Plot risk and priority Risk High Medium Low High • Decommission of CP6 • Internal Summary Reporting • Interface Purchase Requisitions • Automate Portfolio Requirements • Electronic Gradebook • Class Scheduling • Interface Library and A/R • Interface Campus Card with OC Transpo Medium • Fixed Assets and Capital Budgeting • Direct Deposit for Student Refunds • Document Imaging for FAST Reporting • Investment Management • Enhancing Student Service over the • Direct Deposit for Travel Expenses • Remote Cheque Requisition Web • Document Finance Processes • OUAC Upgrades • Transfer Articulation in DARS • Remote Access Priority • Accept Payment for Tuition over the • Automated Equivalency and Load into DARS • eCommerce (e.g. application fees) Web • Remote PO Requisitions • Automated Average Calculation for 105 • Intranet for Banner Finance Applicants • Test Environment for Millennium • Registration Enhancements • Electronically Import OSAP Data Low • Automated Travel Expense Claims • Banner Parking Management • Connect Single Sign-on • Admissions through Web and • Archiving Solutions • User Friendly JV Form eCommerce • Force Password Change • Receiving EDI Transcripts • System to Support Paul Menton Centre • Document Management + Imaging • Benchmark Other Institutions • Workflow • Link Web Audit to Course Calendar & • Offline Database & Query Facility Registration • Banner Web for Alumni Research & Implement
    • Project Plans  What is a project plan?  Scope planning  Schedule planning Fail to plan  Budget planning and  Quality definition you plan to fail.  Resource allocation  Communications strategy  Risk management  Vendor relationship
    • 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
    • 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 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 Scope Planning  Sample work breakdown structure (WBS), U.S. Department of Defense
    • 37 Scope Planning  Sample work breakdown structure (WBS), software development
    • 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 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 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?
    • 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 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 Schedule Planning  Four types of scheduling dependencies:  Finish-to-start S F  Initiation of successor depends on completion of predecessor S F  Normal sequence of events  Finish-to-finish S F  Completion of successor depends on completion of predecessor S F  Sometimes tasks must be co-terminus  Start-to-start S F  Initiation of one task depends on initiation of another task  Sometimes tasks need to start at the same time S F  Start-to-finish S F  Completion of one task is dependent on initiation of another task S F
    • 44 Precedence Diagrams  Activity On Node diagram:  Arrow Diagramming Method:
    • 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 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 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 Task A Task C Task D 2 days 4 days 1 days Start Finish Task B Task E 4 days 12 days
    • 48 Schedule Planning  Start at the beginning and calculate the earliest start and earliest finish for each task ES=1 EF=2 ES=5 EF=8 ES=9 EF=9 Task A Task C Task D 2 days 4 days 1 days Start Finish ES=1 EF=4 ES=5 EF=16 Task B Task E 4 days 12 days  The earliest finish date for the whole project is 16 days
    • 49 Schedule Planning  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 ES=1 EF=2 ES=5 EF=8 ES=9 EF=9 Task A Task C Task D 2 days 4 days 1 days LS=10 LF=11 LS=12 LF=15 LS=16 LF=16 Start Finish ES=1 EF=4 ES=5 EF=16 Task B Task E 4 days 12 days LS=1 LF=4 LS=5 LF=16
    • 50 Schedule Planning  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 ES=1 EF=2 ES=5 EF=8 ES=9 EF=9 Task A Task C Task D 2 days 4 days 1 days LS=10 LF=11 LS=12 LF=15 LS=16 LF=16 Float=9 Float=7 Float=7 Start Finish ES=1 EF=4 ES=5 EF=16 Task B Task E 4 days 12 days LS=1 LF=4 LS=5 LF=16 Float=0 Float=0  Task D can start as early as day 9 or as late as day 16
    • 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 Schedule Planning  Sample project network diagram
    • 53 Schedule Planning  Sample Gantt chart Sept. Sept. Dec. Aug. Nov. Mar. Nov. Aug. Oct. June June May Oct. Feb. July Apr. Jan. July OUAC HSA EMAS Letter generation Transfer artic. DARS Interfaces e-Visions ESIS/UAR UGAFA
    • 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 Schedule Monitoring  Updated Gantt chart Feb. 24 Sept. Sept. Dec. Aug. Nov. Mar. Nov. Aug. Oct. June June May Oct. Feb. July Apr. Jan. July OUAC HSA EMAS Letter generation Transfer artic. DARS Interfaces e-Visions ESIS/UAR UGAFA
    • 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?
    • Documentation
    • 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 Project Portfolio
    • 60 Project Status
    • 61 Project Tasks
    • 62 Project Description
    • 63 Project Metrics
    • 64 Project Resources
    • 65 Program Summary
    • 66 Issue Log
    • 67 Issue Actions
    • 68 Project Risks
    • 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 Store Retrieve Apply (75%) (62%) (55%) (25%)
    • Estimating  Techniques used to develop approximate plan values
    • 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 Overestimates Time Underestimates
    • 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 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 Time Scope  Reaction: increase cost and/or schedule  Shorten schedule  Reaction: increase cost and/or decrease scope Cost  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” … Time Scope  “The last casualty in projects is quality …” Quality Cost
    • Cost  Ensure that the project is completed within the approved budget
    • 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 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 Earned Value Analysis Cost Variance Schedule Variance
    • 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?
    • 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 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 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 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 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?
    • 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 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 Staff Enhancement  Continuous intellectual  Separating the management of work from the capital growth is the only management of people focuses attention on sustainable competitive staffing issues advantage  Exceptional educational Functional Functional Functional opportunities (training, Partner Partner Partner certification)  Assigning work becomes a balance between the needs Project Project Project Project Organization of the staff and the needs Manager Manager Manager of the organization  Continuous feedback based on immediate Resource Pool of project staff and SME’s assignment completion Manager
    • 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 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 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 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 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 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?
    • Risk  Events that may happen in the future that could impact project objectives
    • 94 Business Continuity Environmental assessment • Ice storms and power outages • Increasingly powerful viruses • Terror threats Risk assessment Risk options • Probability of occurrence • Avoidance • Impact of potential loss • Transference • Tolerance • Mitigation • Acceptance Continuity plans • Triggers & symptoms • Escalation process • Action plans • Redundancy/fail-over technology
    • 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 Risk Management Process Approve Approach  Step 1 - Risk Management Plan  Described how you will implement risk management Brainstorm  Specific contents Risks  Risk management methodology  Approach Review List  Roles  Timing Characterize  Reporting Risks  Risk categories  Risk definitions Prioritize Risks  Response planning  Monitoring & control Response Planning Monitor & Control
    • 97 Risk Management Process  Step 2 - Risk Assessment Team  Key project leaders  Project SME’s  Risk managers  Internal auditors  External risk experts (consultants)
    • 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 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 Risk Management Process  Step 5 - Ranked Risks  Team voting by:  Impact of the potential loss 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  Probability of occurrence Degree of Probability estimate Numerical probability 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 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 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 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 Breakout 8: Risk Management Plan  Create a risk management plan your project  Identify key risks  Probability of occurrence?  Degree of impact?
    • 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 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 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 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
    • Governance  Decision making and leadership
    • 110 Project Governance Focus Role • Sharing information (“Open the kimono”) • Approve/request policy • Education of issues (before resolving issues) • Authorize funding • Mutuality-of-interest problem solving • Monitor progress and metrics • Realize benefits Steering Committee Projects exist to realize the aspirations of their stakeholders 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 Leadership  Most important project manager leadership characteristics (PM Network): Industry experience 6% Technical knowledge 6% Strategic vision 19% Soft skills 69%
    • 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 Enterprise Systems Maturity Model Leveraging System Maturity Stabilizing Post Go-Live Implementing Time  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
    • 114 Maturity & Productivity Leveraging Productivity System Maturity Stabilizing Project Post Go-Live Benefit Zone Productivity Project Baseline Shock Implementing Zone Go Time Live Date
    • 115 Maturity & Morale Leveraging System Maturity Recognition Stabilizing Morale Reality Post Go-Live Trough Implementing Kick off Go Time Live Date
    • 116 Maturity & Cost Leveraging System Maturity Stabilizing Cost Post Go-Live Implementing Time
    • 117 Maturity & Value Leveraging Strategic Value System Maturity Stabilizing Post Go-Live Implementing Time
    • 118 Why Are Enterprise Projects Hard to Do? Leveraging System Maturity Stabilizing Post Go-Live Implementing Time
    • Summary  Thank you  Course evaluations
    • 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 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 Recommended Reading Title Author Comments Project Management Harold Kerzner Textbook A Guide to the Project Management Body Project Management Roadmap of Knowledge Institute The Fast Forward MBA in Project Eric Verzuh Easy read Management Radical Project Management Rob Thomsett Pragamatic