Why do projects fail - the project execution maturity model - basic collaboration

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Why Do Projects Succeed or Fail?

Discover What Really Makes a Difference

Hello Mark,

For too long, project managers have believed that the right planning leads to the right results.

Yet time after time, independent research shows that the current approach to project management fails to produce the outcomes managers expect – and clients want.

It’s clear the traditional solutions to project management are not working. The key to improving project performance is not planning, but execution – creating and sustaining processes and behaviors that deliver consistent, quantifiable results.

Fortunately, the processes and behaviors to deliver consistent execution results are well defined and quantified. These form the Project Execution Maturity Model.

This identifies the elements that drive effective project execution excellence, giving you a measurable means to assess your status, to target areas of improvement, and to make meaningful progress in the way you deliver projects.

You'll learn:

What processes and behaviors lead to lower operating costs, increased throughput, and significant gains in on-time delivery performance

How to confidently identify and work on the right elements to change

Why achieving greater project execution maturity drives increases to your organization's financial performance

How to replicate success, project after project, by learning how to move your organization from ad hoc project management to control of projects, portfolios and continuous strategic improvement

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  • Less tha
  • 25 June 2014
  • Business capabilities: ability to mobilize and deploy resources in combination or copresent with other resources and capabilities
  • 30: Cooke-Davies 2002: 16)
    Als Klasse von Kompetenzobjekten wird ein spezifischer
    Realweltausschnitt betrachtet, f¨ur den allgemeing¨ultige Qualit¨atskriterien vorhanden sind.
    Ein Kompetenzobjekt ist im Kontext dieser Arbeit also eine konkrete Aufgabe des Projektmanagements.
    Kompetenzmodelle und Reifegradmodelle werden in der Praxis oft als Synonyme benutzt.
    Ein Kompetenzmodell muss jedoch nicht notwendigerweise eine Unterteilung in Reifegrade
    beinhalten (vgl. Ahlemann et al., 2005, S. 12 ff.).
  • PricewaterhouseCooper. Insights and Trends: Current Portfolio, Programme, and Project Management Practices: http://www.pwc.com/en_US/us/public-sector/assets/pwc-global-project-management-report-2012.pdf

    From December 2011 through January 2012, 1,524 participants responded to the survey from 34 industries, across 38 countries.

    Key Performance Indicators for a Project Implementing the Typical Organisations Approach to PM

    As previously noted, a systematic and organised set of processes brings order and efficiency to project management.

    Therefore, the existence of well-defined project management processes – often grouped into a project management methodology - differentiates those companies that are able to consistently deliver high project results from those that do not.

    Our key findings in this area include the following: standardisation and institutionalisation of project management processes; prioritisation of projects and application of a standard project life cycle; utilisation of project portfolio techniques; utilisation of methodologies in project management, portfolio management and Agile project management; leveraging communication management best practices; and emphasis on project management certifications.
  • Together= as a team
    Achieve = accomplishment
    Goals = the same thing

    As a practical matter, this means the right people are doing the right work at the right time.
  • Accura
  • – no elaboration
  • Project priorities are reconciled regularly among the affected stakeholders.
    There is a clear escalation process in place to resolve priority conflicts
    There is a person accountable to manage project and task priority
  • Business capabilities: ability to mobilize and deploy resources in combination or copresent with other resources and capabilities
  • Why do projects fail - the project execution maturity model - basic collaboration

    1. 1. Why do projects succeed or fail? Part 1 – Basic Collaboration The Behaviors that Make a Difference
    2. 2. What I want to share: 2 The Premise of the Solution Project Execution Maturity Model – 3 Levels Understanding Basic Collaboration
    3. 3. What does “failure” mean? Scope ̶ Did the project deliver all the features? Quality ̶ Did the outcome function as it should have? Business Benefit ̶ Did the project deliver the results? Budget ̶ Did it cost as much as it was supposed to? Schedule ̶ Was it done when we wanted it to? 3
    4. 4. Most Managers Struggle with Schedule and Budget 0% 10% 20% 30% 40% 50% 60% 70% 80% Scope Quality Business Benefit Budget Schedule Project Success Rates & Length of Time Using a PMO PMO >= 6 yrs PMO <= 5 yrs No PMO 4
    5. 5. Successful projects are NOT the result of successful planning 7 Successful projects are the result of skillful execution.
    6. 6. Performance Is a Function of Capability Project Management Capabilities Ability Behavior Result 8 Project Management Maturity Project Performance Business Performance
    7. 7. Purpose of “Best Practice” Models  Quantify capabilities that deliver the desired results  Facilitate comparison to your practices ̶ Determine what is and what isn’t working ̶ Establish a case for action ̶ Develop a plan for improvement 9
    8. 8. Many Project Management Maturity Models Over 30 different models, based on various paradigms Seem to be useful ̶ Widely adopted ̶ Many organizations report advancements in maturity 10
    9. 9. What Do We Want in a Model? 12 The principles for delivering on time and on budget Clear relationship between principles and desired effects Behaviors that exemplify those principles A path to maturity Level 5 Optimizing Level 4 Managed Level 3 Org. Focus Level 2 Basic PM Level 1 Initial
    10. 10. Project Execution Maturity Model – Principles for Execution & On Time Delivery 13 Date Mgmnt. Schedule Risk Delivery Promising Managing Bottlenecks Remote Collaboration Priority Control Collaborative Execution Control WIP Functional Alignment Probabilistic Planning Subcontractor Management Capacity Management More Mature Less Mature
    11. 11. Basic Collaboration 14 Emphasize Velocity The work before you The team before you Near term More Mature Less Mature Priority Control Collaborative Execution Control WIP Functional Alignment
    12. 12. Improved Coordination 15  Inclusion of remote teams  Emphasize On Time Delivery  Inclusion of schedule risk in execution decisions  Medium Term More Mature Less Mature Date Mgmnt. Schedule Risk Delivery Promising Managing Bottlenecks Remote Collaboration
    13. 13. Integrated Planning & Execution 16 Closed Loop planning & execution Probabilistic scheduling Finite resource planning Life of project, full portfolio Probabilistic Planning Subcontractor Management Capacity Management More Mature Less Mature
    14. 14. Basic Collaboration 17 Increase Velocity Priority Control Collaborative Execution Control WIP Functional Alignment
    15. 15. Basic Collaboration Solves: 18 Lack of direction Unclear accountabilities for results Slow progress Answers the most basic questions: ̶ What is the status of the work? ̶ Are we making progress? ̶ What do we need to do to move forward? ̶ Who is going to do it?
    16. 16. Collaborative Execution 19 Priority Control Collaborative Execution Control WIP Functional Alignment
    17. 17. Collaborative Execution Working together to achieve shared goals. 20
    18. 18. Informed Collaboration  Individuals and teams see beyond their own tasks to the overall direction of the project  Agreement on the situation  Roles and accountabilities of each team member are clear  Focusing on what needs to be done today, rather than the past 21
    19. 19. Collaborative Execution What if I don’t? Slow response to project problems Slow progress Increased project lead- times 22
    20. 20. Building Collaboration Accurate / shared assessment of the situation Accountability for results Plan-Do-Check-Act 23
    21. 21. The Situation Must Be Made Obvious Accuracy – Where are we now? Shared – Do we agree on it?
    22. 22. Purposeful Collaboration  Focus on what is slowing or halting progress  Only investigate the issues ̶ “What are the red issues?”  Ask what we need, not who to blame or why ̶ “How does it hurt the project due date?”  Try to identify next steps, not resolve the issue ̶ “Let’s have a separate meeting to figure this out”  Actionable!  Keep it short!
    23. 23. Collaborative Execution What if I do? Quick response to project problems Increased completion velocity Reduced project lead- times 26
    24. 24. Functional Alignment 27 Priority Control Collaborative Execution Control WIP Functional Alignment
    25. 25. Functional Alignment The project team shares ̶ A common goal ̶ Agreement on the rules of the game Subordination of individual to team objectives 28
    26. 26. Functional Alignment What if they aren’t? Reduced velocity ̶ Time to clarify accountabilities ̶ Difficulty obtaining resources ̶ Low team engagement Poor resource productivity ̶ Misallocation of skills ̶ Response delays 29
    27. 27. Metrics Align Behavior & Purpose 30
    28. 28. 0 10 20 30 40 50 60 70 80 90 100 Totaltasksbycategory Blue Green Yellow Red (Complete) (In Progress) (Minor Issue) Results Trending Based on Behavior
    29. 29. 0 5 10 15 20 25 NumberofIssues ResolvedBefore NeedingEscalation
    30. 30. 0 1 2 3 4 5 6 7 8 9 #ofIssuesnotidentified untilescalationrequired Short Notice Issues
    31. 31. Functional Alignment What if they are?  Increased task completion velocity ̶ Clear accountabilities ̶ Resources allocated as needed ̶ High team engagement  Improved resource productivity ̶ The right people working the problems ̶ Quick response to problems 34
    32. 32. Priority Control 35 Priority Control Collaborative Execution Control WIP Functional Alignment
    33. 33. Priority Control 36 A unified work prioritization system which reflect the global priorities Used for all projects and supporting tasks.
    34. 34. What/Who Controls Priorities? 37 Priority??Operations Project Managers Product Planners SAP P6 My Buddy
    35. 35. Priority Control What if we don’t? Work performed out of sequence Plenty of task switching (multitasking) ̶ Delays ̶ Longer completion times Reduced productivity 38
    36. 36. Setting the Priority  Establish the criteria (delivery date?)  Who controls them?  What if there is disagreement or confusion?  Quality problems or delay – does this change?  What about emergencies? 39
    37. 37. Priority Control What if we do? The right work at the right time Much less task switching (multitasking) ̶ Increased velocity ̶ Shorter completion times Increased productivity 40
    38. 38. Manage the Flow 41 Priority Control Collaborative Execution Control WIP Functional Alignment
    39. 39. Control Work in Progress Managers control the release of work into the system based on the capacity of the constraint Managers promote policies that reduce multi-tasking – ̶ Clean Start ̶ Clear Priorities 42
    40. 40. Controlling Work in Progress What if we don’t?  Increased complexity of task management ̶ Increased management effort (meetings!) ̶ Work performed out of sequence ̶ Plenty of task switching  Increased project lead times  Delays in task completions  Task rework.  Task over-processing  Reduced productivity 43
    41. 41. WIP controls the release of new projects 45 must be limited. Project XX Estimate (WIP = 4)WIP Controls: 1. Limiting work 2. Release at the rate of consumption
    42. 42. The Clean Start Queue 46 TBR (To be released) It is a prioritized queue of work that needs to be done when resources are available. The work has met the defined “clean start” requirements
    43. 43. Controlling Work in Progress What if we do?  Simplification of task management  Reduced project lead times  Tasks can be quickly completed without delay  Rework reduced  Task over-processing is eliminated  Improved productivity 47
    44. 44. Basic Collaboration - Summary 48 Collaborative Execution Working together to achieve shared goals Functional Alignment Each team member subordinates to the overall objectives of the project Priority Control Local work priorities reflect global priorities Control WIP Work is released into the system as it is consumed. Clean Start
    45. 45. Improved Coordination 49 Date Mgmnt. Schedule Risk Delivery Promising Managing Bottlenecks Remote Collaboration More Mature Less Mature Deliver on Time
    46. 46. Integrated Planning & Execution 50 Probabilistic Planning Subcontractor Management Capacity Management More Mature Less Mature Optimize Performance
    47. 47. Project Execution Maturity Model Fills the gap in existing models ̶ Schedule ̶ Budget / Cost 51
    48. 48. Basic Collaboration Improved Coordination Integrated Planning & Execution 52 Road Map to Value
    49. 49. Directly Building Capabilities that Drive Performance Project Management Capabilities Ability Behavior Result 53 Project Management Maturity Project Performance Business Performance
    50. 50. Basic Collaboration - Results 54 All of the work in the system is in control Project teams have a clear view of the project work, its status and risk Local resource teams are aligned with project priorities. Accountabilities for results are clear Priority Control Collaborative Execution Control WIP Functional Alignment
    51. 51. Tracking 54% improvement Average Quoted Lead Time Results after 10 Weeks Engineering Lead Time reduced From 24 months to 11 months 54% improvement in engineering lead time & little variation
    52. 52. Financial Impact (USD) LT impact with additional sales • More with same • New sales - reduced lead time = new projects + aftermarket 0 24 months Original Original New Sales 1.4 Additional sales • More with same • New sales – additional productivity = new projects + aftermarket +27% Capacity ? ? ? SCU A B C 1.9 to 2.8 Improved effectiveness & efficiency • Same with less • 27% reduction of project lead times translated into cost savings2.1 Bottom line: ≥ 5.3mm
    53. 53. Why do projects succeed or fail? The Behaviors that Make a Difference

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