Project Health Checks How to proactively mitigate the risk of project failure Torsten J. Koerting (Manager, Program Office, Virgin Blue Airlines) http://www.linkedin.com/in/torstenkoerting www.torstenkoerting.com Australia, August 2008

Project Health Check Agenda Project Health Check as part of an effective Project Governance Why check Project Health and the Benefits Different Methods of Project Health Checks The Quick Assessment Overview The comprehensive Health Check Overview and Elements The Questionnaire The Assessment The Results and the Comparison Practice Experience

Project Health Check as part of an effective Project Governance

Why check Project Health and the Benefits

Different Methods of Project Health Checks

The Quick Assessment

Overview

The comprehensive Health Check

Overview and Elements

The Questionnaire

The Assessment

The Results and the Comparison

Practice Experience

Effective Governance Structure Ready for Project Delivery Ready for Project Planning Ready for Initiation Ready for Project Closure Project Closed Health Check & Post Imp Review Gate / Checklist Steering Group HC / mini HC 6 weeks after Planning Gate HC / mini HC called by exception Individual Cycle after Prio Gate, but not less then every 6 weeks Departmental Control Groups 2 to 4 week cycle / routine depending on category of project Starts with Planning and Ends with Project Final Delivery Quality Gates Milestone Gate 1 Ready for Pilot Ready for Production Post Imp Review Post Post Imp Review PLANNING INITIATION DELIVERY CLOSURE BENEFITS REALIZED DEMAND Status & General Reporting Portfolio Mgmt Project Management Special Functions Facilitator HC / mini HC called by exception

Why check on Project Health Comprehensive analysis of a project Instant summary of the current situation Identification of weaknesses and a generation of package of measures Identification of Best Practices used Equal comparison of projects Project Manager Competence development based on several assessments Management oversight project governance

Comprehensive analysis of a project

Instant summary of the current situation

Identification of weaknesses and a generation of package of measures

Identification of Best Practices used

Equal comparison of projects

Project Manager Competence development based on several assessments

Management oversight project governance

Project Health Check Benefits For the Project Manager The project manager receives immediate findings about room for improvements in all the areas of his project and measure proposals to optimize the processes and project deliverables. He identifies chances to arrange support activities with the stakeholders and project sponsors Via the moderation he receives neutral feedback from experts in the areas of planning and delivery and receives exchange of expertise. For the Company, the Business, Stakeholders and Project Sponsors Immediate option to mitigate risk of project failure Short term findings about the quality of the practised project management identify the need for action on project as well as organisational level Planning and Forecast reliability are increased by optimizing the project management processes (e.g. Risk Management) Measures and tasks could be immediately identified and executed to increase project management quality

For the Project Manager

The project manager receives immediate findings about room for improvements in all the areas of his project and measure proposals to optimize the processes and project deliverables.

He identifies chances to arrange support activities with the stakeholders and project sponsors

Via the moderation he receives neutral feedback from experts in the areas of planning and delivery and receives exchange of expertise.

For the Company, the Business, Stakeholders and Project Sponsors

Immediate option to mitigate risk of project failure

Short term findings about the quality of the practised project management identify the need for action on project as well as organisational level

Planning and Forecast reliability are increased by optimizing the project management processes (e.g. Risk Management)

Measures and tasks could be immediately identified and executed to increase project management quality

Different Methods and Tools to conduct a Project Health Check Quick Assessment (self conducted) Based on 15 key questions around risk, team, commercials, management and scope Could be done in 10 to 15 minutes Mini Health Check based on Knowledge Areas or Stages For low risk profile and small projects Approximately 40 questions 1 hour Moderation is optional Full Health Check based on Knowledge Areas or Stages (moderated) For high risk profile and large projects Approximately 150 questions 3 – 4 hours Moderation is mandatory

Quick Assessment (self conducted)

Based on 15 key questions around risk, team, commercials, management and scope

Could be done in 10 to 15 minutes

Mini Health Check based on Knowledge Areas or Stages

For low risk profile and small projects

Approximately 40 questions

1 hour

Moderation is optional

Full Health Check based on Knowledge Areas or Stages (moderated)

For high risk profile and large projects

Approximately 150 questions

3 – 4 hours

Moderation is mandatory

Quick Assessment Overview 14 Questions in different areas, examples: The Delivery Team output will match the requirements The Business Case is still valid and understood The Delivery Team understand what needs to be delivered and when Project progress is monitored Project monitoring is accurate … . … . Answers between 0 and 10 0 – no confidence for that area 10 – maximum confidence for that area Benefit Simple to use Quick overview of project Below 70, immediate action Result View

14 Questions in different areas, examples:

The Delivery Team output will match the requirements

The Business Case is still valid and understood

The Delivery Team understand what needs to be delivered and when

Project progress is monitored

Project monitoring is accurate

… .

… .

Answers between 0 and 10

0 – no confidence for that area

10 – maximum confidence for that area

Benefit

Simple to use

Quick overview of project

Below 70, immediate action

Result View

Project Health Check Elements Cover Page Name of Project, Key Figures and Description of project and Health Check participants Result Page Overview on each area Summary on areas of improvements and risks Spider Diagram to compare to target results or another project or prior assessment or Department standard etc. Tabs for the specific areas Questions, Description of questions and areas for Tasks, measures and Notes Tab - Roles and Responsibilities Key roles required for any project in the company / department Tab - Required Documents Key documents required for any project based on Project Method used

Cover Page

Name of Project, Key Figures and Description of project and Health Check participants

Result Page

Overview on each area

Summary on areas of improvements and risks

Spider Diagram to compare to target results or another project or prior assessment or Department standard etc.

Tabs for the specific areas

Questions, Description of questions and areas for Tasks, measures and Notes

Tab - Roles and Responsibilities

Key roles required for any project in the company / department

Tab - Required Documents

Key documents required for any project based on Project Method used

Project Health Check Areas to be checked Initiation, Investment, Business Case Project Hand Over Project Planning Project Organisation Work Packages Staff Management Communication Management Project Start Change Management Quality Management Project Management Project Controlling Project Closure Business Satisfaction Documents Roles Initiation Planning Delivery Closure General

Initiation, Investment, Business Case

Project Hand Over

Project Planning

Project Organisation

Work Packages

Staff Management

Communication Management

Project Start

Change Management

Quality Management

Project Management

Project Controlling

Project Closure

Business Satisfaction

Documents

Roles

Project Health Check Questionnaire and Assessment Questionnaire Identical questionnaire in all areas, adjusted to the relevant knowledge area and project management method used and the assessed stage (Invest, Initiation, Planning, Delivery, Closure) Assessment 5 step rating : 0 to 4 or “not relevant” 0 if not available or not accomplished / implemented 4 only if relevant result and deliverable is complete traceable documented according to the requirements Maximum can be reached rated 4 in all areas would be a best practice project with adoptable best practice approaches that contribute to the Project Method and can be reused in other projects

Questionnaire Identical questionnaire in all areas, adjusted to the relevant knowledge area and project management method used and the assessed stage (Invest, Initiation, Planning, Delivery, Closure)

Assessment 5 step rating :

0 to 4 or “not relevant”

0 if not available or not accomplished / implemented

4 only if relevant result and deliverable is complete

traceable documented according to the requirements

Maximum can be reached

rated 4 in all areas would be a best practice

project with adoptable best practice approaches

that contribute to the Project Method and can be reused in other projects

Project Health Check Questionnaire Input Mask

Project Health Check Moderation during the assessment A Project Management Expert as a neutral instance during the interview provides the objective assessment as well as practical measures and tasks A lot of questions leave room for interpretation A self assessment require a precise knowledge of the project method used in the Company A moderation ensure a common interpretation of the requirements of the project method The terminology is as neutral as possible; it need to be adapted adhoc to certain projects and situations Only with a comparable understanding of a substance of a question has been generated and is used, the project team is capable to compare and assess it self. Moderation assist the clarification as well as the decision process For a High Profile and Categorized Project a member of the Risk and / or Audit Department might attend if available and if appropriate

A Project Management Expert as a neutral instance during the interview provides the objective assessment as well as practical measures and tasks

A lot of questions leave room for interpretation

A self assessment require a precise knowledge of the project method used in the Company

A moderation ensure a common interpretation of the requirements of the project method

The terminology is as neutral as possible; it need to be adapted adhoc to certain projects and situations

Only with a comparable understanding of a substance of a question has been generated and is used, the project team is capable to compare and assess it self.

Moderation assist the clarification as well as the decision process

For a High Profile and Categorized Project a member of the Risk and / or Audit Department might attend if available and if appropriate

Project Health Check The Assessment Input Project Documents Steering Group Presentations Former Health Check Assessments and results Former Action Logs, Tasks and Measures Agenda Action Log from last Assessment Assessment Result Sign Off Attendees Risk / Audit (lead / moderation) Project Manager Portfolio Manager of the relevant arm Output Assessment Result Action Log Status Report to Stake Holders Supportive Docs Cycle, Time, Duration, Location Recurrence – AdHoc / Exception / Check Points Time – to be defined Duration – 4 hours Location – to be defined Action Log Health Check Tool Result PDF

Project Documents

Steering Group Presentations

Former Health Check Assessments and results

Former Action Logs, Tasks and Measures

Action Log from last Assessment

Assessment

Result Sign Off

Risk / Audit (lead / moderation)

Project Manager

Portfolio Manager of the relevant arm

Assessment Result

Action Log

Status Report to Stake Holders

Recurrence – AdHoc / Exception / Check Points

Time – to be defined

Duration – 4 hours

Location – to be defined

Action Log

Health Check Tool

Result PDF

Project Health Check Result View All relevant areas according to Project Method used within the specific Company are covered and assessed Benchmark Result

All relevant areas according to Project Method used within the specific Company are covered and assessed

Project Health Check Comparison Comparison of a certain project to best practice To other projects To a former assessment of the same project Result

Comparison of a certain project to

best practice

To other projects

To a former assessment of the same project

Project Health Check Practice Experience Means of transportation of project method throughout the organisation Structured view on project situation in sense of processes and methodologies used as well as roles and documents facilitated Catalyser to facilitate communication and clarification of open points within the project management team Fixation of measures and tasks that implicit have been scheduled but got never executed because of the daily business Might cause some awkward but important strategic measures (e.g.: involvement of top management) Biggest advantage achieved by repeating assessments (first assessment after signing the Project Request)

Means of transportation of project method throughout the organisation

Structured view on project situation in sense of processes and methodologies used as well as roles and documents facilitated

Catalyser to facilitate communication and clarification of open points within the project management team

Fixation of measures and tasks that implicit have been scheduled but got never executed because of the daily business

Might cause some awkward but important strategic measures (e.g.: involvement of top management)

Biggest advantage achieved by repeating assessments (first assessment after signing the Project Request)

Thank you for your attention. Any questions?