third wave  presentation a   thomsett   company eXtreme project management
The world of business and government is changing faster than ever. Globalization, the internet, new technologies, new orga...
Project Management A new paradigm <ul><li>Second Wave </li></ul><ul><li>Technical emphasis </li></ul><ul><li>Senior manage...
<ul><li>Third Wave </li></ul><ul><li>Business / ROI emphasis </li></ul><ul><li>Senior management commitment </li></ul><ul>...
Project Management A glimpse at the future <ul><li>eXtreme Wave </li></ul><ul><li>Added Value obsession </li></ul><ul><li>...
Trust Openness Honesty Courage Money Project Management: eXtreme project management values What senior managers see Analys...
Two sets of information Policy development project Both these information sets are inter-related and require different ski...
Stakeholders Related projects Risk Benefits Costs Schedules Estimates Policy Data/Function/ Object Requirements Design Men...
Content Context Traditional project management focus eXtreme project management focus Projects fail in the context not the...
Planning is work not  an overhead PROJECT PLANNING SHOULD  NEVER  BE DONE BY ONE PERSON. AT BEST, USE YOUR TEAM, SUPPORT G...
Project Success: eXtreme view Project management involves a series of structured negotiations to establish and define succ...
have satisfied stakeholders meet the project's objectives/requirements meet an agreed budget - resources, capital, equipme...
Benefits Costs Development Support Benefits Realisation Review Post Implementation Review <ul><li>Measurement of success -...
Scenario/Real Time Planning Traditional or macro planning Real-time or micro planning by scenarios/events Agreed events [d...
Stakeholders Stakeholders have multiple roles in projects - many have  multiple  roles in  multiple  projects. They are th...
The Ideal Sponsor The ideal sponsor has the bag of money and the baseball bat.
eXtreme project  management eXtreme tools
Project Management Overall Processes Prioritize, Approve  and  Review Projects Project  Planning Project Tracking Project ...
<ul><li>OBJECTIVES </li></ul><ul><li>Corporate, Business, Project and System level </li></ul><ul><li>SCOPE </li></ul><ul><...
<ul><li>OBJECTIVES </li></ul><ul><li>Corporate, Business, Project and System level </li></ul><ul><li>SCOPE </li></ul><ul><...
Project Initiation Feasibility Study Analyze Requirements Design Build Test Ship Product Support/ Benefits Realization Pro...
Determine Project Scope and Objectives Select Project  Development Strategy Analyse Project  Risks Develop Project Task  L...
I want a new bank product for high net-worth clients Clear, physical scope Abstract scope Scope and Objectives Wrong model...
The scope and objectives of a project are inter-related. The scope defines the boundary of the project manager's responsib...
An objective must  An output is the  An outcome is the state &quot;what&quot; is  direct change in the  indirect change in...
It is an essential and professional process to formally analyze, negotiate and agree with each Critical stakeholder as to:...
Quality Who’s eyes - which beholder? Project Quality Stakeholder Group 2 Stakeholder Group 1 Project Manager Project Spons...
CONFORMITY Must the product have all the data, functions  and procedures as required? USABILITY Must the product be easy t...
Risk Classes There are two related but different classes of risk in a project environment : Project Risk The inherent risk...
Risk Impact & Integration <ul><li>Project Risk  should be totally integrated and systemic.  </li></ul><ul><li>The risk of ...
Some last thoughts <ul><li>Most projects that fail, fail before they started </li></ul><ul><li>Your stakeholders are your ...
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third wave presentation a thomsett company

  1. 1. third wave presentation a thomsett company eXtreme project management
  2. 2. The world of business and government is changing faster than ever. Globalization, the internet, new technologies, new organization structures, outsourcing and the rise of the free agent economy reflects the increasing demands from clients, customers, stakeholders, shareholders and government regulation. Rather than “fiddling” with traditional project management techniques such as new versions of scheduling tools and critical chain concepts, it’s time that IT and the broader business areas adopted a radical or eXtreme approach to managing the new world of projects. A starting proposition
  3. 3. Project Management A new paradigm <ul><li>Second Wave </li></ul><ul><li>Technical emphasis </li></ul><ul><li>Senior management un-involved </li></ul><ul><li>Business professionals as liasion mechanism </li></ul><ul><li>Single methodology </li></ul><ul><li>Development focus </li></ul><ul><li>Macro-planning </li></ul><ul><li>Traditional team/W.O.L. </li></ul><ul><li>Notional cost </li></ul><ul><li>Stand-alone systems </li></ul><ul><li>Expert-driven </li></ul><ul><li>Technical-focus </li></ul><ul><li>Third Wave </li></ul><ul><li>Business / ROI emphasis </li></ul><ul><li>Senior management commitment </li></ul><ul><li>Business professionals as project managers </li></ul><ul><li>Multiple methodologies </li></ul><ul><li>Life-cycle focus </li></ul><ul><li>Micro / real-time planning/events </li></ul><ul><li>Virtual teams </li></ul><ul><li>Cost recovery / return </li></ul><ul><li>Integrated/interfaced systems </li></ul><ul><li>Constraint-driven </li></ul><ul><li>Service-focus </li></ul>Engineered Model Dynamic Model
  4. 4. <ul><li>Third Wave </li></ul><ul><li>Business / ROI emphasis </li></ul><ul><li>Senior management commitment </li></ul><ul><li>Business professionals as project managers </li></ul><ul><li>Multiple methodologies </li></ul><ul><li>Life-cycle focus </li></ul><ul><li>Micro / real-time planning/events </li></ul><ul><li>Virtual teams </li></ul><ul><li>Cost recovery / return </li></ul><ul><li>Integrated/interfaced systems </li></ul><ul><li>Constraint-driven </li></ul><ul><li>Service-focus </li></ul>Project Management A new paradigm <ul><li>Second Wave </li></ul><ul><li>Technical emphasis </li></ul><ul><li>Senior management un-involved </li></ul><ul><li>Business professionals as liasion mechanism </li></ul><ul><li>Single methodology </li></ul><ul><li>Development focus </li></ul><ul><li>Macro-planning </li></ul><ul><li>Traditional team/W.O.L. </li></ul><ul><li>Notional cost </li></ul><ul><li>Stand-alone systems </li></ul><ul><li>Expert-driven </li></ul><ul><li>Technical-focus </li></ul>Engineered Model Dynamic Model
  5. 5. Project Management A glimpse at the future <ul><li>eXtreme Wave </li></ul><ul><li>Added Value obsession </li></ul><ul><li>Senior management as Executive Project Managers </li></ul><ul><li>Business and IT integrated fully </li></ul><ul><li>Organic/lite/agile methodologies </li></ul><ul><li>Life-cycle management </li></ul><ul><li>Real-time planning </li></ul><ul><li>Virtual organisations </li></ul><ul><li>Zero cost development </li></ul><ul><li>Multi-layer systems </li></ul><ul><li>Constraint-focused </li></ul><ul><li>Market-focus </li></ul>Agile Model
  6. 6. Trust Openness Honesty Courage Money Project Management: eXtreme project management values What senior managers see Analysis Design Build & Test Ship What the team sees ? AARGH ????!!!### Values Behaviors
  7. 7. Two sets of information Policy development project Both these information sets are inter-related and require different skills and techniques MANAGERIAL <ul><ul><ul><li>TECHNICAL </li></ul></ul></ul><ul><ul><ul><ul><li>80-90% </li></ul></ul></ul></ul>10 - 20% Stakeholders Related Projects Risks Returns Costs Schedules Priorities Estimates Resources Assumptions Policy Specifications Procedure Manual Design Work Redesign Models Education Modules Test Plans Communication Strategy Implementation Guides Legal Advice Scope Objectives Strategy Quality
  8. 8. Stakeholders Related projects Risk Benefits Costs Schedules Estimates Policy Data/Function/ Object Requirements Design Menu Hierarchy File Design Module Specs Test Plans Documentation Scope Objectives Strategy Quality Project Project Management Management Technical Technical Management Management Business Case Business Case Technical Specifications Technical Specifications Content Context Two sets of information eXtreme focus
  9. 9. Content Context Traditional project management focus eXtreme project management focus Projects fail in the context not the content Two sets of information eXtreme focus
  10. 10. Planning is work not an overhead PROJECT PLANNING SHOULD NEVER BE DONE BY ONE PERSON. AT BEST, USE YOUR TEAM, SUPPORT GROUPS AND KEY STAKEHOLDERS TO ASSIST YOU IN A TEAM PLANNING SESSION RA pid P lanning [RAP] sessions are intensive and participative planning sessions involving the project manager, the team and key stakeholders. They occur every time a project requires planning or re-planning. RAP-ing reflects the agile and extreme paradigms. RApid Planning Process The key eXtreme model
  11. 11. Project Success: eXtreme view Project management involves a series of structured negotiations to establish and define success i.e. to determine which sliders are at what level for each project. ON OFF <ul><li>Success in a project is when you .... </li></ul><ul><ul><li>have satisfied stakeholders </li></ul></ul><ul><ul><li>meet the project's objectives/requirements </li></ul></ul><ul><ul><li>meet an agreed budget - resources, capital, equipment </li></ul></ul><ul><ul><li>deliver the product on time </li></ul></ul><ul><ul><li>add value for the organization </li></ul></ul><ul><ul><li>meet quality requirements </li></ul></ul><ul><ul><li>have a sense of professional satisfaction for the team </li></ul></ul>
  12. 12. have satisfied stakeholders meet the project's objectives/requirements meet an agreed budget - resources, capital, equipment deliver the product on time add value for the organisation meet quality requirements have a sense of professional satisfaction for the team Project Success ON OFF ON OFF ON OFF ON OFF ON OFF ON OFF ON OFF eXtreme tool ON OFF
  13. 13. Benefits Costs Development Support Benefits Realisation Review Post Implementation Review <ul><li>Measurement of success - eXtreme </li></ul>Get rewards/punishment & go away ? Costs Development Post Implementation Review <ul><li>Measurement of success - 2 nd wave </li></ul>Feasibility Analysis Design Build Test Ship Project Success Feasibility Analysis Design Test Ship eXtreme tool
  14. 14. Scenario/Real Time Planning Traditional or macro planning Real-time or micro planning by scenarios/events Agreed events [deliverables, versions, prototypes, etc.] Planning window depends on risk, strategy, deliverables and project size. eXtreme tool Scenario 1 Scenario 2 Scenario 3
  15. 15. Stakeholders Stakeholders have multiple roles in projects - many have multiple roles in multiple projects. They are the second biggest cause of project failure [see www.thomsett.com.au – Project Pathology]. One stakeholder - the Project Sponsor - is the biggest cause of project failure. Managing the multiple relationships with stakeholders is a critical focus in eXtreme project management - it is also a highly political issue. Sponsor X changes the schedule of Project X. This impacts Stakeholder X who is also a stakeholder of Project Y. This impacts Project Y, Sponsor Y and stakeholder Y. In other words, Sponsor X has impacted Sponsor Y. Imagine this ripple effect with 40 stakeholders! Project X Sponsor X Stakeholder X Project Y Sponsor Y Stakeholder Y
  16. 16. The Ideal Sponsor The ideal sponsor has the bag of money and the baseball bat.
  17. 17. eXtreme project management eXtreme tools
  18. 18. Project Management Overall Processes Prioritize, Approve and Review Projects Project Planning Project Tracking Project Reporting Project Concept Project Business Case Project Feasibility Study Strategic Plan Policy Framework Technology Architecture Project Portfolio New Requests
  19. 19. <ul><li>OBJECTIVES </li></ul><ul><li>Corporate, Business, Project and System level </li></ul><ul><li>SCOPE </li></ul><ul><li>The boundaries of the project or system - project manager's responsibility </li></ul><ul><li>STAKEHOLDERS/RELATED PROJECTS </li></ul><ul><li>The people, groups, projects related to the project as service providers </li></ul><ul><li>RETURNS/BENEFITS & BENEFITS REALISATION PLAN </li></ul><ul><li>Increase Revenue </li></ul><ul><li>Avoid Costs </li></ul><ul><li>Improve Service (also includes drivers such as Strategic Impact, Technology, etc.) </li></ul><ul><li>COSTS </li></ul><ul><li>Development and support - life-cycle time-frame including people </li></ul><ul><li>QUALITY AGREEMENT </li></ul><ul><ul><li>The quality expectations of the stakeholders </li></ul></ul><ul><li>PROJECT DEVELOPMENT STRATEGY/SCENARIOS </li></ul><ul><li>The overall approach to development of the project </li></ul><ul><li>BUSINESS/PROJECT RISK </li></ul><ul><li>Factors that can influence project success </li></ul><ul><li>SKILLS AVAILABILITY/STAFFING AGREEMENT </li></ul><ul><li>The requirement for specialist resources </li></ul><ul><li>RELEVANT LEGISLATION/POLICY </li></ul><ul><li>Any Federal, State legislation or organization policy impacting on project </li></ul><ul><li>ASSUMPTIONS/CONSTRAINTS </li></ul><ul><li>Constraints such as deadlines and assumptions made when planning </li></ul><ul><li>CHANGE MANAGEMENT </li></ul><ul><li>Impact on jobs, job design and work practices </li></ul><ul><li>PROJECT EXECUTION PLAN </li></ul><ul><li>The detailed project schedule of tasks and task inter-dependencies </li></ul>The eXtreme Contract - The Business Case
  20. 20. <ul><li>OBJECTIVES </li></ul><ul><li>Corporate, Business, Project and System level </li></ul><ul><li>SCOPE </li></ul><ul><li>The boundaries of the project or system - project manager's responsibility </li></ul><ul><li>STAKEHOLDERS/RELATED PROJECTS </li></ul><ul><li>The people, groups, projects related to the project as service providers </li></ul><ul><li>RETURNS/BENEFITS & BENEFITS REALISATION PLAN </li></ul><ul><li>Increase Revenue </li></ul><ul><li>Avoid Costs </li></ul><ul><li>Improve Service (also includes drivers such as Strategic Impact, Technology, etc.) </li></ul><ul><li>COSTS </li></ul><ul><li>Development and support - life-cycle time-frame including people </li></ul><ul><li>QUALITY AGREEMENT </li></ul><ul><ul><li>The quality expectations of the stakeholders </li></ul></ul><ul><li>PROJECT DEVELOPMENT STRATEGY/SCENARIOS </li></ul><ul><li>The overall approach to development of the project </li></ul><ul><li>BUSINESS/PROJECT RISK </li></ul><ul><li>Factors that can influence project success </li></ul><ul><li>SKILLS AVAILABILITY/STAFFING AGREEMENT </li></ul><ul><li>The requirement for specialist resources </li></ul><ul><li>RELEVANT LEGISLATION/POLICY </li></ul><ul><li>Any Federal, State legislation or organization policy impacting on project </li></ul><ul><li>ASSUMPTIONS/CONSTRAINTS </li></ul><ul><li>Constraints such as deadlines and assumptions made when planning </li></ul><ul><li>CHANGE MANAGEMENT </li></ul><ul><li>Impact on jobs, job design and work practices </li></ul><ul><li>PROJECT EXECUTION PLAN </li></ul><ul><li>The detailed project schedule of tasks and task inter-dependencies </li></ul>The eXtreme Contract - The Business Case
  21. 21. Project Initiation Feasibility Study Analyze Requirements Design Build Test Ship Product Support/ Benefits Realization Project Management Business Case The Business Case – a living and dynamic document An eXtreme project will have almost continuous change – the Business Case is continuously monitored and updated as a moving baseline. The changes are reviewed and approved by all critical stakeholders.
  22. 22. Determine Project Scope and Objectives Select Project Development Strategy Analyse Project Risks Develop Project Task List Estimate Tasks/Project Allocate People Project Concept Project Business Case Analyze Benefits/ Define Benefits Realization Define Quality Requirements Develop Project Schedule Analyze Costs & Return-on- Investment Define Success Project Management Rapid Planning Process (RAP) RAP sessions are completely open and participative. The Sponsor and critical stakeholders attend and build the Business Case with the Project Manager facilitation using eXtreme tools. eXtreme tool Project Planning
  23. 23. I want a new bank product for high net-worth clients Clear, physical scope Abstract scope Scope and Objectives Wrong model/wrong industry
  24. 24. The scope and objectives of a project are inter-related. The scope defines the boundary of the project manager's responsibility and the objectives are what the project manager has to achieve within that boundary. Scope/Objectives Where your responsibilities lie the only difference is that some objectives are inside scope PROJECT : IS NOT [Could be] IS NOT RESOLVED Objectives A variation on the Kepner-Tregoe model and Differential Diagnosis eXtreme tool
  25. 25. An objective must An output is the An outcome is the state &quot;what&quot; is direct change in the indirect change in the going to change in status-quo as a result status-quo as a result the status-quo. of the objective of the output being &quot;delivering&quot;. used to achieve a &quot;secondary&quot; change To analyse the objective/output/outcome chain simply apply the Polaroid test. Take a &quot;photo&quot; of the situation before the project starts and a &quot;photo&quot; immediately after delivery - what has changed ? The change is the Output Objective Output Outcome Objective Output [Team] Outcome [Stakeholder] Primary Benefit I ncrease R evenue A void C osts I mprove S ervice Secondary Benefit I ncrease R evenue A void C osts eXtreme tool The O 3 Model Analyzing benefits and realization plan From Gaebler & Osborne, Gane & Sarson
  26. 26. It is an essential and professional process to formally analyze, negotiate and agree with each Critical stakeholder as to: Stakeholder or Partnership Agreement the service involved; to dates or timing of the services; the cost to the stakeholder in providing the service; and who else can provide the service. Service Timing Cost Contingency Person Responsible Review of requirements Develop new procedures 1 hr / week 2 hrs / mth $75 / hr $75 / hr Senior Customer Service Clerk Technical Writer System Analyst Business Analyst Stakeholder : Customer Service Manager Project Title : Date : STAKEHOLDER SERVICE AGREEMENTS I have been involved in the planning of Project ……………………………. and have reviewed the project plans and Business Case. I agree to provide the above services. …………………………………………………………………… ……… /………../…….. eXtreme tool
  27. 27. Quality Who’s eyes - which beholder? Project Quality Stakeholder Group 2 Stakeholder Group 1 Project Manager Project Sponsor Computer Operations Support Teams Team Members Internal Audit
  28. 28. CONFORMITY Must the product have all the data, functions and procedures as required? USABILITY Must the product be easy to understand, learn and use from the user's perspective? MAINTAINABI LITY Must the system be easy to maintain and /or correct? EFFICIENCY Must the application use the hardware, system software and other resources efficiently? REUSABILITY Must the system use code and date that I s capable of being used by other systems? FLEXIBILITY Must the system be easy to enhance in order to add or modify functionality and features? RELIABILITY Must the system function without failure and with consistency? PORTABILITY Must the system be easy to migrate to another hardware or software environment? AUDITABILITY/SECURITY Must the system be secure from unauthorised access and be auditable? JOB IMPACT Must the system provide an acceptable working environment for direct users? ATTRIBUTES STAKEHOLDER* Software Quality Agreement eXtreme tool From McCall, Mutsamato, IEEE, ISO 9126
  29. 29. Risk Classes There are two related but different classes of risk in a project environment : Project Risk The inherent risks involved directly in undertaking the project Business Risk The exposure to or impact on the organisation as a result of project failure While both Risk classes involve considering very different factors, they are related in a very important way. The higher the Project Risk, the higher the probability of failure and the higher the potential exposure of the organisation to the Business Risk.
  30. 30. Risk Impact & Integration <ul><li>Project Risk should be totally integrated and systemic. </li></ul><ul><li>The risk of a project impacts your project in the following manner: </li></ul><ul><li>The higher the risk the higher the probability of failure </li></ul><ul><li>The higher the risk the more inaccurate estimates will be </li></ul><ul><li>The higher the risk, the higher the ROI should be </li></ul><ul><li>The higher the risk, the more expert the team should be </li></ul><ul><li>The higher the risk the higher/more regular the focus from Sponsor </li></ul><ul><li>The higher the risk, the higher the rate of change. </li></ul><ul><li>Business Risk should also be considered during the RAP session. </li></ul><ul><li>Business Risk includes the following issues: </li></ul><ul><li>Loss of project investment </li></ul><ul><li>Loss of project benefits </li></ul><ul><li>Loss of market image </li></ul><ul><li>Loss of morale </li></ul><ul><li>Potential for litigation, etc. </li></ul><ul><li>The effective and pro-active management of project risk requires a complete commitment from senior management . </li></ul>
  31. 31. Some last thoughts <ul><li>Most projects that fail, fail before they started </li></ul><ul><li>Your stakeholders are your best allies or your worst enemies – you decide </li></ul><ul><li>Spend more time on the outside rather than the inside </li></ul><ul><li>Look out more than looking down </li></ul><ul><li>If your project hasn’t changed – be afraid, very afraid </li></ul><ul><li>Ask for help, advice and assistance – early and often </li></ul><ul><li>Focus on benefits – not costs </li></ul><ul><li>DON’T OWN THE PROJECT – OWN THE PROCESS </li></ul>Rob Thomsett – Radical Project Management , Prentice-Hall, 2002 www.thomsett.com.au

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