If projects are the primary driver of your revenue this webcast is for you. Come learn how to optimize the project lifecycle in your organization. Learning Objectives:​​​​​ How to make the project lifecycle come alive Growth, It All Starts with a Plan CRM Pipeline Winning new Contracts Execution Budgeting Forecasting Earned Value Management Project Management Office Reporting/Analysis

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The Business of Projects
Failure to Plan is Planning to Fail
Speaker:
Kim Koster
Project Management Evangelist

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Project Reality
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Time Line
Plan Reality
4) Result - late and over budget project
1 – It all starts with a plan
2 – A surprise occurs
3 – Recovery Impossible

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Poll 1
What percentage of your projects enterprise wide are on budget/cost?
a) 0-25%
b) 26-50%
c) 51-75%
d) 76-100%

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The Project Lifecycle
Make the Project Lifecycle Come Alive!
With an Integrated Tool Set!
This graphic is the representation of data and processes
for projects and all stakeholders from PMs to Exec’s.

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Pipeline Health and its Contribution
The pipeline should be achievable (but not TOO achievable),
measurable, tactical in the near term, and strategic in the long range.

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Are You Managing
Your Pipeline?
If not, why not?

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The Importance of Pipeline
• Pipeline is the foundation of the both the near-term
(AOP) and the long-range (LRP) plans
• It’s the basis for both the revenue forecast and
resource requirements plan
• Revenue forecasts predict future financial health
• Resource requirements provide the roadmap to successful
project execution
• Forecasting is mostly science, a little bit of an art, and
requires a tiny bit of black magic

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Model Scenarios for Best Fit
Model Scenarios for Best Fit – What-Iffing

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Need a Pipeline Management Tool?
Make sure the tool has:
• Real-time integration with the ERP system
• CRM for interaction tracking and contact
categorization for reference
• Workflow for action items and opportunity
tracking by phase
• Accessible reporting, dashboards, and metrics
• Demand planning for employees and TBD
resources
• Flexible Pwin assignment
• Easy transition from proposal to an executable
project

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Pipeline by Stage - Snapshot

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Proposals – the First Project Plan
Still part of the pipeline but now subject to more focused tracking and
management – Pwin and other factoring now in play. Start looking at
your resource skills needed – Clearance needed?

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It all Starts with a GREAT Proposal
Steps for completing the proposal estimate:
▪ Understand the scope. Scope comprehension is the key to accurate estimating
▪ Utilize the project template to clone or populate the project information, the past estimates, and the timelines for the tasks
▪ Establish a work breakdown structure (WBS)
▪ Estimate the resources needed to complete the work
▪ Understand the timing of needed resources
▪ Include all materials, services, and travel required
▪ Time phase the estimates
▪ Ensure that the right skill set is available when you need them
▪ Use To Be Determined (TBDs) if the name of the resource is not yet available
▪ Gain buy-in from the proposal team and the functional departments before submission to the customer
At contract award, the proposal is the starting point for the project plans!

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Poll 2
What percentage of your projects enterprise wide are on schedule?
a) 0-25%
b) 26-50%
c) 51-75%
d) 76-100%

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Turning the Proposal into Action
You won! Now you have to get the project started and in the system!
Contracts to CASH – It is King

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Initiating the Project
The initiation phase establishes the basic platform for a successful project. To be an executable
project, the ERP captures from the proposal the business requirements, the high-level budget, a
set of tasks and a preliminary resource plan. Considering the size and complexity of the project,
the project manager develops a project team to help manage the project.
Unanet enables 1-Click
Proposal to Project

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What is a PMO?
“The Project Management Institute (PMI)
Program Management Office Community of
Practice describes the PMO as a strategic
driver for organizational excellence, which
seeks to enhance the practices of execution
management, organizational governance,
and strategic change leadership.”

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Why Have A PMO?
SOURCE: PMI’S 2017 PULSE OF THE PROFESSION®

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Purpose of the PMO
Vision - Help project teams manage and execute their
projects successfully!
▪ Update and Maintain policies for all project – tailorable to project
size and complexity
▪ Resource management
▪ KPIs for the enterprise as well as projects and programs
▪ Consistent reporting across all projects
▪ Managing Change
▪ Role based training of policies, procedures, and tools
▪ Align with the corporate goals and strategies

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Adding the Detail & the Specifics
Real world begins with demands and constraints on project execution.
The Plan is now a living and breathing guide to progress.

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Why is Budgeting/Forecasting So Hard?
Influencers

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Create a Cost Plan (Budget)
Characteristics of a good budget:
1. All scope is included
2. Time-phased
3. Meets the contract cost and
schedule
4. Includes all the resources
needed
5. Aligns with the WBS
6. Basis for comparison to
actuals and EV
https://www.unanet.com/blog/8-tips-budgeting-project-based-organizations

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Poll 3
How would you rate your resource management maturity?
a) Very Mature
b) Somewhat Mature
c) Somewhat Immature
d) Very Immature

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The Feedback Loop
The one thing that we can count on in this World is CHANGE! PMs
need real-time information to know where they are!

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EVM For Project Success
• EVM encourages detailed realistic plans to be used from the start of a project.
• EVM requires disciplined and integrated planning that will help achieve early detection of
issues to course correct.
• Provides a common set of guidelines for measuring technical, schedule, and cost
performance throughout the life of a project.
• EV provides objective indicators as to performance during the life of a project.
• EVM implementation can be tailored based on complexity of the project.
• EVM and project management aims to have an achievable program plan.
• EV provides an accurate forecast (EAC) of the total funds required for project completion.
• EVM provides metrics based on actual performance data.
• Provides a signal in time for the project manager to take corrective action.

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Benefits of EVM
• All project sizes will benefit
• Measure accomplishments
• Accurately forecast project completion and final cost
• Early warning to delays or overruns
• Provide schedule and cost variances
• Minimize scope creep that can result in overruns
• Improve the control of project performance
• Provides a competitive advantage and delights customers

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1 2 3
Tasks “earn”
value as work
is completed.
Earned Value (EV) can then
be compared to actuals and
budget for current status and
to predict the future.
Progress is measured in
dollars and hours, so schedule
and cost performance can be
analyzed in the same units.
EVM is the Answer
Earned Value Management (EVM) is a project management methodology that combines schedule
and cost performance to answer the question, “What work was done for the money spent?”

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The Big 3 – Common for All Types of Projects
Cost
Scope – What is the product (Goods or Services)?
Schedule – When will the products be delivered?
Cost – How much will it cost to deliver the product?
EVM provides a structured process to manage all 3!

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Earned Value - %Complete and Estimated VAC

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Organize
the Work
Define Control
Accounts
Plan
Resources
Scope
Comprehension
Establish an
Org Structure
Schedule
Tasks
Establish a Baseline
(cost and schedule)
EVM Roadmap
It all starts with a
great proposal

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Poll 4
How would you rate your project management maturity?
a) Very Mature
b) Somewhat Mature
c) Somewhat Immature
d) Very Immature

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Feedback at a High Level
The company level reporting, tracking, and measurements are
OUTPUTS from the planning, initiation and execution process.

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Accounting for the Project
Time Expense Purchasing Billings Revenue Rec

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Accounting Needs…
A project based ERP GL:
o Tightly integrated with the project, eliminating errors and reconciliation
o Multi-version budgeting
o Bank account reconciliation
A project based ERP AR:
o Tightly integrated with powerful billing capabilities
o Unparalleled traceability into all transactions
o Customer payment application and deposit
o Automated receipts discount calculations based on invoice terms
o Small balance write-offs
o Can provide visibility to the project manager of customer or projects AR; this can be invaluable where the PM is
responsible for managing the customer relationship
A project based ERP AP:
o Tight integration with projects
o Recurring vendor invoices and purchasing requests/orders
o Period-sensitive AP aging and bank account reconciliation reports
o Flexible automated system check payment selection and check printing process
o 1099 support
o Journal entry supports automatic recurring and reversing entries, document voiding, role based posting
authorization, and attachments

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Net Margin by Project

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Across the Organization
Continuous and Real-Time
All project stakeholders (direct, indirect, and execs) get the
information they need!

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KPI’s To Measure Success Factors
A Key Performance Indicator is a measurable value that demonstrates
how effectively an organization is achieving key business objectives at
all levels of the business.

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Defining KPIs for Your Organization
• Desired outcome?
• Does the outcome matter to the organization?
• Methodology to measure progress?
• Who can influence the outcome?
• Who is responsible for the business outcome?
• How will you know you’ve achieved your outcome?
• How often will you review progress towards the
outcome?

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Additional Tips for Picking the Right KPIs
• Very clear purpose (what matters most)
• Common business language
• Align with your current processes if possible
• Holistic approach (think through the unintended consequences)
• Drive the desired behavior (Encourage and reward)
• Define tolerances (red, yellow, green, blue)
• Have a mechanism to display the KPIs to all stakeholders
(dashboards)
I – Important
P – Potential Improvement
A – Authority
IPA Rule

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Define the KPIs That Help Drive Your Strategy
Project Enterprise/Portfolio
- On Schedule and Budget - Compounded Annual Growth
(CAGR)
- Profitability - Profitability
- Revenue - Revenue
- Labor Utilization - Booking
- Skillset Usage - Backlog
- Spend Variance - Bid to Win
- % Spent - Pipeline Snapshot
- Estimate to Complete (ETC) - Annual Billable Utilization
- Cost per Person - Rate Analysis
- Bill rate - Targets by Region, Customer,
Portfolio, etc.

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EV Metrics –
help manage
current
status and
gives you a
window into
the future!

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5 Trends for Project Management in 2019
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2
3
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5 Establish success driven Key Performance Indicators (KPIs)
Increasing importance of a Project Management Office (PMO)
Create a resource management practice
Collaboration for success
Growing investment in project managers

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Contact Us
Kim Koster
Director, Unanet
kkoster@unanet.com