5 Ingredients Of The EVM Secret Sauce V Final


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Top Challenges of Program Controls Professionals as presented at PMI-CPM Conference - May, 2009.

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5 Ingredients Of The EVM Secret Sauce V Final

  1. 1. 5 Ingredients in the EVM Secret Sauce Practice Symposia (PS-01) Chris Bell Vice President, Enterprise Project Management Deltek Wednesday May, 27 – 1:30 PM to 2:15 PM
  2. 2. What Exactly Is In The EVM Secret Sauce?
  3. 3. To Find Out? You Have To Ask The Chefs © 2009 Deltek, Inc.
  4. 4. What We Did Phase I - Problem – Identify The Most Pervasive Challenges Facing EV Practitioners Phase II - Solutions – Collaborate On Most Innovative Solutions To Those Challenges Phase III - Measure – Interview Teams Who Achieved Results © 2009 Deltek, Inc.
  5. 5. How Do You Get Results? Truth & Candor © 2009 Deltek, Inc.
  6. 6. Phase I – The Challenges Lack Mgmt Buy-In Can’t Find Time Spent Qualified Reporting People Hard To Inconsistency Integrate Across Cost & Programs Schedule © 2008 Deltek, Inc.
  7. 7. Lack Management Buy In – Phase I Have a Challenge Getting PMs to Accept EVM © 2008 Deltek, Inc.
  8. 8. Lack Management Buy In – Phase II Create Best Practices © 2008 Deltek, Inc.
  9. 9. Using The First Ingredient Demonstrate Success – Find a failure point and turn it around or choose a pilot project – Enroll the CFO – Measure your current progress and report on it Executive Training – Bring in peers – Keep technocrats behind the scenes – Remember the Platinum Rule: “I may not be much but I’m all I think about” Create Best Practices – Create an EV Council – Focus on how to act on information, not just create it Compensation Tied To Performance – Pay, compensation, EVM “Black Belt” status tied to successful use of EVM © 2009 Deltek, Inc.
  10. 10. Case Study - Spirit Aerosystems Face The Giants We are doing okay with what we have? We have been using this for 200 years Do not focus on the negative Offer solutions Be passionate Find and develop a champion for the cause Be able to explain 5 Why’s
  11. 11. Ingredient 1 – Return On Investment EVM Secret Sauce Earned Value Management Secret Sauce • 2 Cups, Return On Investment (ROI) with dash of Executive Training © 2009 Deltek, Inc.
  12. 12. Can’t Find Qualified People – Phase I Not enough qualified people to implement EVM © 2008 Deltek, Inc.
  13. 13. Can’t Find Qualified People – Phase II Groom internal candidates © 2008 Deltek, Inc.
  14. 14. Using The Second Ingredient Advertise – Not local newspapers, use trade magazines – Find specialty recruiters – Recruit at industry conferences (Exhibits are not just for software vendors and consultants!) Network – New era or networking – LinkedIn, Facebook, Plaxo – Blog posts to EarnedValue.org, EVMSHelp.org and others Train & Retain The Ones You Have – It costs much more to recruit and ramp than it does to give a retention bonus – Groom an interested CAM – Cross-train Schedulers and Cost Analysts Use Staff Augmentation – Find staff augmentation firms (SM&A, MCR, Deltek and others) – Perfect solution for surge capacity (especially in this economy) © 2009 Deltek, Inc.
  15. 15. The Magic of LinkedIn Is In The Groups! DoD – 2,062 EVM – 922 Project Controls – 507 PMI – 16,640 PMO – 4,865 And don’t forget.. © 2009 Deltek, Inc.
  16. 16. Post In Jobs Section In The Right Group © 2009 Deltek, Inc.
  17. 17. Ingredient 2 – Recruiting & Staff Augmentation EVM Secret Sauce Earned Value Management Secret Sauce • 2 Cups, Return On Investment (ROI) with dash of Executive Training • 1 Tablespoon of concentrated recruitment © 2009 Deltek, Inc.
  18. 18. Inconsistency Across Programs – Phase I Conflicting contract requirements © 2008 Deltek, Inc.
  19. 19. Inconsistency Across Programs – Phase II Use Standard Tools © 2008 Deltek, Inc.
  20. 20. Using The Third Ingredient Standardize Processes – Write it down and share it! Use SOPs – Create a Center of Excellence – Standardize the output Gain Management Support – Brief the Executive Team on the Center of Excellence – Create a single set of standardized management reports – Find a VP/GM champion Use Standard Tools – Consolidation is making this easier – Data warehouses and dashboard can now pull data and display consistently Influence Government – Apply same rules for ACAT I to ACAT IIs and others – Join forces with NDIA – DCMA to improve relationship with non defense agencies © 2009 Deltek, Inc.
  21. 21. Case Study As Presented At NDIA – PMSC by Kathleen Hedges, SVP May 20, 2009 Can Speak With Dan Butler For More Information © 2009 Deltek, Inc.
  22. 22. Ingredient 3 – Center of Excellence EVM Secret Sauce Earned Value Management Secret Sauce • 2 Cups, Return On Investment (ROI) with dash of Executive Training • 1 Tablespoon of concentrated recruitment • 1 whole Center of Excellence, thoroughly blended © 2009 Deltek, Inc.
  23. 23. Cost & Schedule Integration – Phase I Need a simple, reliable EVM tool © 2008 Deltek, Inc.
  24. 24. Inconsistency Across Programs – Phase II Integrate the capture and delivery teams © 2008 Deltek, Inc.
  25. 25. Using The Forth Ingredient Standardize Structures – Prepare estimates that agree with project WBS – Use a single program structure Integrate Capture & Delivery Teams – EV focal points must consult and advise during the proposal phase, not after the fact – Reduce separate files for adding cost / scope Converge The Schedule Manager & The Cost Manager – Cross train. Cross train. Cross train. – Comingle your personnel. Consider the “Scrum Method” Evolve The Applications Onto One Database – Apply pressure on vendors to provide both cost AND schedule. – Look for solutions that use UN/CEFACT XML and contribute to data warehouses – Ask for dashboard solutions © 2009 Deltek, Inc.
  26. 26. Role‐Based Dashboards Web Parts SharePoint Presentation Layer JSR 168 Portlets Portal Web Services Services Bus Extensibility Smart Client Mobile Clients Microsoft Office Multi-Platform Your Infrastructure Schedule Cost Earned Value Risk Resource Management Management Analytics Management Management Common  EPM Business Layer • Suite wide interoperability • Unified design improves usability • Common security reduces total cost of ownership Common Services • Built on Deltek .NET platform Application Servers Database 26
  27. 27. Ingredient 4 – Cost & Schedule Integration EVM Secret Sauce Earned Value Management Secret Sauce • 2 Cups, Return On Investment (ROI) with dash of Executive Training • 1 Tablespoon of concentrated recruitment • 1 whole Center of Excellence, thoroughly blended • Combine 1 teaspoon of cost and 1 teaspoon of schedule © 2009 Deltek, Inc.
  28. 28. Time Spent Reporting – Phase I I wish they would all just use the same report © 2008 Deltek, Inc.
  29. 29. Time Spent Reporting – Phase II Automate everything © 2008 Deltek, Inc.
  30. 30. Using The Fifth Ingredient Standardize Reports – On the EV Center of Excellence, focus attention on common output – Build consensus with management on the key set of reports Automate Everything – Use batch reporting – Leverage Earned Value analytics solutions – Let dashboard inform teams, not just other program controls professionals Transition From Report Maker To Program Advisor – Report maker = marginal value – Program advisor = high value – Surprise avoider & performance optimizer = hero © 2009 Deltek, Inc.
  31. 31. Ingredient 5 – Dashboard EVM Secret Sauce Earned Value Management Secret Sauce • 2 Cups, Return On Investment (ROI) with dash of Executive Training • 1 Tablespoon of concentrated recruitment • 1 whole Center of Excellence, thoroughly blended • Combine 1 teaspoon of cost and 1 teaspoon of schedule • Layer on top 1 thin dashboard © 2009 Deltek, Inc.
  32. 32. Ingredient 5 – Dashboard EVM Secret Sauce Earned Value Management Secret Sauce • 2 Cups, Return On Investment (ROI) with dash of Executive Training • 1 Tablespoon of concentrated recruitment • 1 whole Center of Excellence, thoroughly blended • Combine 1 teaspoon of cost and 1 teaspoon of schedule • Layer on top 1 thin dashboard Take all ingredients and place them on the table. Wisk thoroughly using a bat (if necessary). Once blended, place in the over for one year. Remove from oven and do not allow to cool off. Consume immediately. © 2009 Deltek, Inc.
  33. 33. © 2009 Deltek, Inc.
  34. 34. Questions? Please Contact Me! Chris Bell, Vice President, EPM Market Management chrisbell@deltek.com © 2007 Deltek, Inc.
  35. 35. Top Challenges Facing Program Controls Professionals Integrated Program Management Workshop Results Workshop Objective: Develop solutions to the top 4 challenges facing program controls professionals. Phase I ‐ Review the results from the 2007 IPM Conference that documents the top 5 challenges expressed by program controls and earned  value practitioners. Then, each table will be assigned 1 or 2 problems to solve. Individually, write at least 10 solutions or best practices that  you can use to solve the problem you have been assigned. Be specific. Be creative. Phase II ‐ Working as a team, map your solutions on the flip chart and discuss as a team. Map like ideas together. If you notice a sequence,  innovative ideas, a clear best practice, please be prepared to share this with the rest of the group. Upon completion, please choose a table  spokesperson. Top Challenges Workshop Results Lack Of Buy‐In / Management Support Finding Qualified People I have challenges getting a process owner for EVM that will  truly champion the process I have challenges finding people who really understand EV. I have trouble getting EVM accepted within the culture of a  company The challenge of getting teams to work together. Lack of executive management understanding of current EVM  environment Challenge is how to use EV in the service environment. Proving to doubters that EVM works (cost/benefit) Not enough personnel to help implement EV on programs. Difficulty with people who want to free‐lance on standard  Sharing of information across companies/organizations work. I have challenges helping program managers understand value  of integrated program management of integrated program management Harnessing Ego's. Harnessing Ego's Interface with programs getting with quot;inner corequot; to help fix  Lack of interest from the RM community issues. EVMS viewed as a step child Challenges to keep employees motivated. PM's failure to believe EVMS can improve project execution Finding competent motivated employees Provide training for critical issues ‐ need crops up ‐ no time to  Management buy‐in to EV meaning and value react. I have difficulty getting accurate data from sources who don't  I have trouble getting management support understand/respect EV/Risk. I have trouble getting across the idea that an EVMS is more  than software I have difficulty getting the right type of support. I have a problem with convincing a scientist that EV has value Not enough personnel to meet demand for training. Challenge to understand EAC development I have challenges to fill staff position. I see too much superfluous variance analysis without follow up I have challenges sourcing human resource. I struggle with Engineering and gaining their acceptance of EV  as a management tool I find it difficult to locate qualified people. Challenged to build good succession plans for staff members  I have a challenge being taken seriously nearing retirement age. I have a hard time getting senior management to look at big  picture issues instead of non‐critical issues Challenged by increasing work loads & shrinking staff. Challenge to maintain and institutionalize EVM  I have a challenge getting PMs to accept EVM implementation at my agency. We have trouble with customers giving direction with EV  compliance consequences I have challenges finding skilled schedulers 11/18/2008 1 © 2008 Deltek, Inc.
  36. 36. Top Challenges Facing Program Controls Professionals Integrated Program Management Workshop Results Consistency Across Programs Difficult to Integrate Cost & Schedule I'm challenged to streamline processes (reporting) and  standardizing formats while satisfying PMOs Challenge to team to develop schedules without constraints I have a hard time getting co‐workers following process within  Challenge to lay out realistic work packages. Most of the time,  guidelines not a realistic schedule I have a challenge to think quot;one companyquot; on some aspect of  I have trouble with use of critical chain in an EVM reporting  application instead of just one program or site environment I have the challenge to convince people that % complete is not  I have a hard time telling IPTs to trust EVMS the only PMT I have trouble with policy not being enforced/observed Lack of tools integration We have a problem getting programs to follow procedures Find a simple, reliable EVM tool I have a challenge with time for software suite evaluation for  Challenge for program to follow change control process advancing technology approach Ensuring common WBS structures between cost estimates and  Difficulty integrating with other functions re: EV practices EVM reporting I have a hard time getting all organizations to agree to pursue  in one direction Integrating cost estimating and EVM Improving cost estimating/project manager communication by  I have a hard time getting cost/schedule collaboration using resource allocation matrix to link products and functions Challenges integrate customer estimator with EVM ‐ perhaps  Communication between schedulers and planners the common denominator is risk and cost risk? We have friction between the cost and scheduling  I have challenges getting people to understand the value of  communities planning and risk management/opp planning I have challenges just reporting vs. management.  CPI/SPI vs.  decision making Need for stronger industry integration/positions I don't have an effective portfolio mgt tool. I had problems getting a good schedule I have a challenge taking program success to the enterprise  level. Manpower application with schedule teams I can't share EV data across multi countries well. Schedule integration with budget I have trouble implementing EVM because of poor business  Integration of EAC fluctuations with risk = EAC growth results  process. in Risk reduction. DoD legacy practices Incorporate risk into EAC & PMB. I have trouble with the DCMA being too prescriptive Integrate Business & PM functions. Inconsistent/unclear validation/surveillance requirements Integrate the baseline with cost & schedule. Confusing/conflicting contract requirements Define cost/schedule integration & give guidance to programs. Understanding new DCMA objectives/approach Cost & Schedule integration. No single point for adjudication of disputes Figuring out the best way to conduct independent EAC  reviews 11/18/2008 2 © 2008 Deltek, Inc.