Why Your Projects are Late
(and How to Prevent Them from Being So)
ViewPoint CCPM
1
Projects – True?
• It’s hard to get a
project team to
work together
• Projects will be
better if our
resources are fully
u...
What I Want to Share
Successful projects are rare
The core reasons why
A path forward
3
Project Failures are Commonplace
4
“A staggering 39% of projects with budgets over
$10 million USD failed.”
5
PricewaterhouseCoopers reviewed 10,640 projects from 200
companies in 30 countries and across various industries
“Only 2...
6
Harvard Business Review Study of 1.471 IT projects
“The average overrun was 27%, but one in six
projects had a cost over...
7
Projects often fail because organizations put
more emphasis on rational factors than on
employees' psychological engagem...
When the
emphasis is on
procedures,
compliance
becomes a
substitute for
results.
8
Don’t Forget
9
10
You are the new Director of Engineering - What is the
status of the project work?
11
Project Teams Cannot See
12
Where are
we?
Where is
the path?
Three Keys
13
Project teams don’t work together.
• Is this collaboration?
– Protecting reputations
– Defending original delivery promise...
Project Team Members have Different Goals
• Resource utilization?
• Earned hours?
• Budget compliance?
• Get promoted?
• A...
It Doesn’t Have to be Lose-Lose
• Resource
utilization?
• Earned
hours?
• Budget
compliance?
• Get
promoted?
• Avoid
punis...
17
To finish early, one should start early.
18
But, everyone starts early!
19
Here’s the project
manager
Too much work
creates
confusion and
loss of capacity.
20
Confusion Breeds Multitasking
21
Let‘s Play a Game!
• We‘ll play two rounds. You just need a piece of
paper and a pen.
• First round:
– Write MULTITASKING
...
Multitasking Adds Excess Time
23
Day 42
Day 28
Task 1 Task 2 Task 3
12 days 12 days 12 days
Setup
Setup
Setup
Task 2 Task ...
Conventional Approach to Projects
24
Make a
Good Plan
Execute
the Plan
Success
You’re taking a trip.
Which comes first?
25
Here’s your car!
26
Build the Vehicle First
• Get control of the work
• Focus on execution behaviors
• Use the team (or structure) that alread...
3 Keys
28
Improve Visibility
1. Improve Teamwork and Collaboration during
execution
29
Align the Team
2. Establish a common goal for the team
30
Manage the Flow
3. Control the amount of work in the system
31
The First Step
32
Collaboration During Execution
• Provide visibility
• Focus on the future
– Stop blaming and get moving
• Focus on the rig...
Building Collaboration
• Accurate / shared assessment of the situation
• The right people in the room
• Acting to achieve ...
The Situation Must Be Obvious
• Accuracy – Where are we now?
• Shared – Do we agree on it?
35
36
Make it Visible – Like This…
Or…Like This….
37
Focus on the Future
38
39
Accelerate Flow
Project X
Project YY
Project XX
Project Z
Project Y
Estimate Select Engineering Procurement
Stopped!
The Second Step
40
Completing Projects is Behavior
How to create the
right behavior to
drive the project
in the right
direction?
41
Behavior is a Function of Consequences
• You have everything you need to understand
people
– What is the behavior?
– What ...
“Show me how you measure me, I’ll
show you how I’ll behave”
("If you measure me in an irrational way,
don't complain about...
“People do what they do because of
what happens to them when they do it”
Aubrey Daniels
44
What do we want our people to do?
Move the project to completion
(as fast as possible)
45
Match Behaviors To Metrics
46
Metrics Tied to Governance
47
0
2
4
6
8
10
12
14
Jan Total Feb Total March Total April Total May Total
TPCounts
Throughput...
The Third Step
48
The Objective of the System?
49
Control the work in the system
The Constraint sets the rate for the entire
system.
50
To Increase the Rate,
Eliminate the Bottlenecks
51
• Create process momentum during execution
• Focused efforts to increas...
Making a difference
52
You’re taking a trip.
Which comes first?
53
Project Execution Maturity Model
54
Date
Mgmnt.
Schedule
Risk
Delivery
Promising
Managing
Bottleneck
s
Remote
Collaboratio...
Basic Collaboration
• The work before you
• Near term
• The team before you
• The process you own
55
Priority
Control
Coll...
Improved Coordination
• Other teams
• Emphasize Velocity
• Deliver on Time
• Medium Term
56
Date
Mgmnt.
Schedule
Risk
Deli...
Integrated Planning & Execution
• CCPM / Buffer Management
• Detailed task management
• Finite resource planning
• Life of...
Business Value by Maturity
58
Delivery
Excellence
Developing
Average
Performance
Basic Collaboration
Improved Coordination...
ViewPoint Critical Chain Results
• 433% increase in effective capacity
• 326% increase in units shipped
• Lead-time reduce...
Datu Case - Collaboration
60
BP Case - Savings
• Project throughput increased 24% in 6 months
• $12,000,000 cost reduction
61
Why does project performance suffer?

Lack of
Collaboration
Too Much
Work in
Process
Conflicting
Goals
62
3 Steps to Deliver More Projects On Time
1. Visual Execution to facilitate collaboration
2. Common Purpose / Alignment on ...
Next…
• Execution Maturity Benchmarking
64
Horace Wilcox
65
66
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ViewPoint - Why Your Projects Are Late

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Why are your projects late? What can you do about it? A presentation given at the Wichita APICS professional development meeting.

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ViewPoint - Why Your Projects Are Late

  1. 1. Why Your Projects are Late (and How to Prevent Them from Being So) ViewPoint CCPM 1
  2. 2. Projects – True? • It’s hard to get a project team to work together • Projects will be better if our resources are fully utilized • Start the project sooner, you’ll finish it sooner • Planning is the key to project success 2
  3. 3. What I Want to Share Successful projects are rare The core reasons why A path forward 3
  4. 4. Project Failures are Commonplace 4 “A staggering 39% of projects with budgets over $10 million USD failed.”
  5. 5. 5 PricewaterhouseCoopers reviewed 10,640 projects from 200 companies in 30 countries and across various industries “Only 2.5% of the companies successfully completed 100% of their projects ”
  6. 6. 6 Harvard Business Review Study of 1.471 IT projects “The average overrun was 27%, but one in six projects had a cost overrun of 200% on average and a schedule overrun of almost 70% ”
  7. 7. 7 Projects often fail because organizations put more emphasis on rational factors than on employees' psychological engagement -- and the cost to organizations is enormous
  8. 8. When the emphasis is on procedures, compliance becomes a substitute for results. 8
  9. 9. Don’t Forget 9
  10. 10. 10
  11. 11. You are the new Director of Engineering - What is the status of the project work? 11
  12. 12. Project Teams Cannot See 12 Where are we? Where is the path?
  13. 13. Three Keys 13
  14. 14. Project teams don’t work together. • Is this collaboration? – Protecting reputations – Defending original delivery promises – Giving “reasons” for why things haven’t quite worked out – Talking about the past 14
  15. 15. Project Team Members have Different Goals • Resource utilization? • Earned hours? • Budget compliance? • Get promoted? • Avoid punishment? 15
  16. 16. It Doesn’t Have to be Lose-Lose • Resource utilization? • Earned hours? • Budget compliance? • Get promoted? • Avoid punishment? 16
  17. 17. 17
  18. 18. To finish early, one should start early. 18
  19. 19. But, everyone starts early! 19 Here’s the project manager
  20. 20. Too much work creates confusion and loss of capacity. 20
  21. 21. Confusion Breeds Multitasking 21
  22. 22. Let‘s Play a Game! • We‘ll play two rounds. You just need a piece of paper and a pen. • First round: – Write MULTITASKING – Then write 1234567890 – Note the time • Second round: – Switch between letters and numbers: • Letter number letter number … – Note the time – Check quality 22
  23. 23. Multitasking Adds Excess Time 23 Day 42 Day 28 Task 1 Task 2 Task 3 12 days 12 days 12 days Setup Setup Setup Task 2 Task 3 Task 1 7 days 7 days 7 days 7 days Setup Task 1 Setup Setup Setup Task 2 7 days Setup Task 3 7 days Setup Day 35
  24. 24. Conventional Approach to Projects 24 Make a Good Plan Execute the Plan Success
  25. 25. You’re taking a trip. Which comes first? 25
  26. 26. Here’s your car! 26
  27. 27. Build the Vehicle First • Get control of the work • Focus on execution behaviors • Use the team (or structure) that already exists to make room for proper planning 27 Get Control Execute Well Release Capacity Success
  28. 28. 3 Keys 28
  29. 29. Improve Visibility 1. Improve Teamwork and Collaboration during execution 29
  30. 30. Align the Team 2. Establish a common goal for the team 30
  31. 31. Manage the Flow 3. Control the amount of work in the system 31
  32. 32. The First Step 32
  33. 33. Collaboration During Execution • Provide visibility • Focus on the future – Stop blaming and get moving • Focus on the right things • Bust the bottlenecks • Establish common goals • Solving the team’s problems 33
  34. 34. Building Collaboration • Accurate / shared assessment of the situation • The right people in the room • Acting to achieve the goal 34
  35. 35. The Situation Must Be Obvious • Accuracy – Where are we now? • Shared – Do we agree on it? 35
  36. 36. 36 Make it Visible – Like This…
  37. 37. Or…Like This…. 37
  38. 38. Focus on the Future 38
  39. 39. 39 Accelerate Flow Project X Project YY Project XX Project Z Project Y Estimate Select Engineering Procurement Stopped!
  40. 40. The Second Step 40
  41. 41. Completing Projects is Behavior How to create the right behavior to drive the project in the right direction? 41
  42. 42. Behavior is a Function of Consequences • You have everything you need to understand people – What is the behavior? – What are the consequences of that behavior? 42
  43. 43. “Show me how you measure me, I’ll show you how I’ll behave” ("If you measure me in an irrational way, don't complain about irrational behavior.") 43 Eli Goldratt
  44. 44. “People do what they do because of what happens to them when they do it” Aubrey Daniels 44
  45. 45. What do we want our people to do? Move the project to completion (as fast as possible) 45
  46. 46. Match Behaviors To Metrics 46
  47. 47. Metrics Tied to Governance 47 0 2 4 6 8 10 12 14 Jan Total Feb Total March Total April Total May Total TPCounts Throughput T4-T6-T8 by Month Higher is be er More Projects Completed Should I act? Escalation of Work Stoppages Where to act? Getting More Done in LessTime Should I act?
  48. 48. The Third Step 48
  49. 49. The Objective of the System? 49
  50. 50. Control the work in the system The Constraint sets the rate for the entire system. 50
  51. 51. To Increase the Rate, Eliminate the Bottlenecks 51 • Create process momentum during execution • Focused efforts to increase velocity
  52. 52. Making a difference 52
  53. 53. You’re taking a trip. Which comes first? 53
  54. 54. Project Execution Maturity Model 54 Date Mgmnt. Schedule Risk Delivery Promising Managing Bottleneck s Remote Collaboration Priority Control Collaborative Execution Control WIP Functional Alignment Probabilistic Planning Subcontractor Management Capacity Management More Mature Less Mature
  55. 55. Basic Collaboration • The work before you • Near term • The team before you • The process you own 55 Priority Control Collaborative Execution Control WIP Functional Alignment More Mature Less Mature
  56. 56. Improved Coordination • Other teams • Emphasize Velocity • Deliver on Time • Medium Term 56 Date Mgmnt. Schedule Risk Delivery Promising Managing Bottleneck s Remote Collaboration More Mature Less Mature
  57. 57. Integrated Planning & Execution • CCPM / Buffer Management • Detailed task management • Finite resource planning • Life of project, full portfolio 57 Probabilistic Planning Subcontractor Management Capacity Management More Mature Less Mature
  58. 58. Business Value by Maturity 58 Delivery Excellence Developing Average Performance Basic Collaboration Improved Coordination Integrated Planning & Execution
  59. 59. ViewPoint Critical Chain Results • 433% increase in effective capacity • 326% increase in units shipped • Lead-time reduced from 31 to 8 days • Revenue increased $47MM 59
  60. 60. Datu Case - Collaboration 60
  61. 61. BP Case - Savings • Project throughput increased 24% in 6 months • $12,000,000 cost reduction 61
  62. 62. Why does project performance suffer?  Lack of Collaboration Too Much Work in Process Conflicting Goals 62
  63. 63. 3 Steps to Deliver More Projects On Time 1. Visual Execution to facilitate collaboration 2. Common Purpose / Alignment on the team 3. Control the amount of work in the system to maximize flow 63 We’re not driving cars, we’re managing traffic
  64. 64. Next… • Execution Maturity Benchmarking 64
  65. 65. Horace Wilcox 65
  66. 66. 66

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