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Scope or: How to Manage Projects for Organization Success

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Organizations rely on projects to remain competitive. Projects are the way organizations deliver and realize their executive strategies. The ability to deliver a project is the ability to compete. Scope kills projects and projects that are not delivered kill organizations.

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Scope or: How to Manage Projects for Organization Success

  1. 1. Toby Elwin PMP, SCA SCA = Special Change Agent Scope or: How to Manage Projects for Organization Success Change Management as a Project Promise
  2. 2. $ The Project Challenge Scope, Plan, Manage, and Measure Change Business Case Outline $ 3
  3. 3. $$ •  Realities of change •  PMBOK 4.0 •  People, Process, Technology 1.  The Project Challenge 2.  Scope, Plan, Manage, and Measure 3.  Change Business Case 4
  4. 4. $$ The Project Challenge •  Resistance and inadequate sponsorship are common reasons that projects fail to deliver desired results •  Leaders underestimate how hard it is to drive people from a known comfort zone – no matter how desirable the future seems •  Whether the starting point is a crisis or an opportunity, the challenge remains that a project changes the way employees, customers, and investors perceive, experience, or cope with the project change •  Even if the future reality is clear and compelling and better than today, the project also has to be framed as necessary or even inevitable •  Realities of change •  PMBOK 4.0 •  People, Process, Technology 5
  5. 5. $$ The Project Challenge •  Project Management identifies requirements to address various needs, concerns, and expectations of the stakeholders as the project is planned and carried out.  •  Project management balances organization and project constraints included, but not limited to:  scope, quality, schedule, budget, resources, and risk. •  The latest version of Project Management Institute’s PMBOK 4.0 indexes the following words: §  project 6,030 times, §  process 1,845, §  change 760, §  results 234, and §  people 49 times -- a people to process ratio of 1:123?  •  Realities of change •  PMBOK 4.0 – The Project Management Book of Knowledge, " The Project Management Institute •  People, Process, Technology 6
  6. 6. $$ The Project Challenge - People rely on frameworks to make sense of their world" •  Change disrupts patterns and transition presents confusion, both create desire to revert to what is known •  Scope presents a map and the compass bearings for change. To manage change, you first need to manage scope. •  A project may make all the business sense in the world, but people are emotional and emotions impact decision-making •  Projects present interpretation along 3 spectrums: 1.  personal case vs. business case 2.  emotional vs. rational 3.  qualitative vs. quantitative •  It takes people to deliver a project, execute a process, manage change, and deliver results, a dramatic shift from a 1:178 people to process ratio •  Realities of change •  PMBOK 4.0 •  People, Process, Technology 7
  7. 7. $$ The Project Challenge – Organizations should only choose projects that deliver to their executive strategy % of Firms 36% 41% 43% 44% 44% 46% 54% 65% 72% 82% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% IT Perspective not Integrated Silos/No Horizontal Process View No Organizational Change Plan Scope Expansion / Uncertainty Business Case not Compelling Inadequate Sponsorship Unrealistic Expectations Poor Project Management Resistance by Employees Project Team Lacked Skills Source: Deloitte CIO Survey Survey asked for top reasons, results are greater than 100%, Projects fail at an alarming rate •  74% of all projects fail, come in over budget or run past the original deadline •  90% of major IT project initiatives fail to be completed on time and on budget •  A survey by KPMG, an international consulting firm, finds globally that 56% of IT projects fail is underestimating the scale of the problem •  Certus, the UK IT director forum, believes that the failure rate of IT projects is closer to 90%. 8
  8. 8. $$ 1.  The Project Challenge 2.  Scope, Plan, Manage, and" Measure Scope needs to be carefully defined and ! managed as different people have different! needs, it is crucial to understand the impact! a project may have and to understand! the voice of the customer at all levels 3.  Change Business Case •  Projects should all be evaluated with the same criteria capital expenditures are planned and with the same comparison: •  Net present value •  Discounted cash flow •  Internal rate of return, etc.. •  Projects in the planning phase that present quantitative data and clear goals decrease the perception that they are pet projects driven by personality, not business •  The project should be measured against initial baselines goals for trend analysis and gap analysis •  Create dialogue around a project supported by a business case rationale with quantitative support, not a project that is a personality driven with emotional or qualitative criteria Scope, Plan, Manage, and Measure – Project transparency relies on clear, communicated goals and clear expectations" 9
  9. 9. $$ The following tools identify, assess, quantify, and qualify project scope: •  Organizational Process Assets •  Enterprise Environment Factors •  Change Readiness •  Impact Analysis •  Stakeholder Analysis •  Communication Plan •  Risk Register 1.  The Project Challenge 2.  Scope, Plan, Manage, and Measure 3.  Change Business Case Scope, Plan, Manage, and Measure – Defining and managing scope throughout the project is a project’s key success factor 10
  10. 10. $$ Scope, plan, manage, and measure - The proper assessment of organization culture and project stakeholders will provide the most accurate project scope 1.  Look at past project key success factors 2.  Identify pitfalls 3.  Find power brokers 4.  Look for tools already accepted and leverage their familiarity 5.  Acknowledge organization accomplishment •  Organizational Process Assets (Knowledge Management) •  Enterprise Environment Factors (Culture) •  Change Readiness •  Impact Analysis •  Stakeholder Assessment •  Communications •  Risk Register 11
  11. 11. $$ There is a natural productivity dip as you, the team, and the organization manage their role and the uncertainty of change. " " 12 I can t act any more with all this uncertainty Time !  What s this? !  Our company is taking a big step This is not something I want to be a part of I ll do what is necessary to survive I think I can figure out how to live with it !  It is the right thing to do !  We will succeed Early awareness Denial and uncertainty Paralysis Departure Withdrawal Adaptation Commitment Productivity Baseline Organization Momentum !  To what extent will it affect me? !  How can I get all this done? !  Does this make sense? Fear and resistance !  Same job, less money! !  I don t trust those guys! !  Maybe, I should learn more about it !  The train is leaving, I better get on !  It s difficult, but we can do it Testing and acceptance RESISTANCE DENIAL EXPLORATION COMMITMENT
  12. 12. $$ Change is managed transition, it is important to manage the project and operations at or above the productivity baseline - competence will bring confidence Factors that will sabotage productivity 1. Low level of collaboration / difficulties in meeting objectives §  Limited buy-in and support §  Lack of employee motivation §  Increasing resistance to transformation and change §  Lack of alignment across key stakeholders and business leaders §  Potential conflicts due to lingering non-addressed issues and differences 2. Operational obstacles and delays §  Lack of alignment of business and critical support functions §  Difficulties and misunderstandings in communication due to unclear objectives, varying expectations and competing business priorities §  Eroding trust and loss of good people §  Loss of productivity 3. Loss of leadership credibility §  Lack of accountability or empowerment with the teams §  Early results not sustained §  Difficulties on implementing the transformation initiatives 13 I can t act any more with all this uncertainty Time !  What s this? !  Our company is taking a big step This is not something I want to be a part of I ll do what is necessary to survive I think I can figure out how to live with it !  It is the right thing to do !  We will succeed Early awareness Denial and uncertainty Paralysis Departure Withdrawal Adaptation Commitment Productivity Baseline Organization Momentum !  To what extent will it affect me? !  How can I get all this done? !  Does this make sense? Fear and resistance !  Same job, less money! !  I don t trust those guys! !  Maybe, I should learn more about it !  The train is leaving, I better get on !  It s difficult, but we can do it Testing and acceptance RESISTANCE DENIAL EXPLORATION COMMITMENT
  13. 13. $$ An organization’s culture and leadership style review provides and a look at tradition areas of concern, to avoid, or success factors, to replicate." " The Competing Values Framework: 1. Identifies 4 types of organizational culture: •  Ad Hoc, •  Clan, •  Hierarchy, and •  Market 2.  Evaluates organizations by values of leadership, effectiveness, organizational theory, and Total Quality Management programs 3.  Categorizes organizations by degree of: •  Internal focus and integration •  Flexibility and discretion •  External Focus and differentiation •  Stability and control 14
  14. 14. $$ Sample Competing Values Plotted CEO / Executive Team! Founder / Executive Team! CFO / Executive Team! Director of Marketing! 15
  15. 15. $$ 1.  The Project Challenge 2.  Scope, Plan, Manage, and Measure 3.  Change Business Case Scope, Plan, Manage, and Measure – Defining and managing scope throughout the project is a project’s key success factor 16 •  Organizational Process Assets •  Enterprise Environment Factors •  Change Readiness •  Impact Analysis •  Stakeholder Analysis •  Communication Plan •  Risk Register
  16. 16. $$ Plan, manage, and measure 1.  Look at past project key success factors 2.  Identify pitfalls 3.  Find power brokers 4.  Look for tools already accepted and leverage their familiarity 5.  Acknowledge organization accomplishment •  Organizational Process Assets •  Enterprise Environment Factors •  Change Readiness •  Impact Analysis •  Stakeholder Assessment •  Communications •  Risk Register 17
  17. 17. $$ 1.  Assess the level of readiness 2.  Measure the gap between the current level of readiness and the needed level for each stakeholder group 3.  Prioritize where intervention is required 4.  Identify key issues for each stakeholder group 5.  Begin to develop tactical recommendations to bridge gap in readiness levels and address key issues •  Organizational Process Assets •  Enterprise Environment Factors •  Change Readiness •  Impact Analysis •  Stakeholder Assessment •  Communications •  Risk Register Plan, manage, and measure 18
  18. 18. $$ Change readiness survey sample (1 of 2) Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 1. I understand why [insert company name] will implement [any example: technology, etc…]. 2. I believe that [INSERT COMPANY NAME] must implement [any example: technology, etc...]. 3. The goals of the [any example: technology, etc...] program have been clearly communicated to me. 4. I have communicated the goals of the [any example: technology, etc...] program to my team or colleagues. 5. I believe that the long-term benefits of [any example: technology, etc...] outweigh any short-term disruption to standard operating procedures. 6. I believe [INSERT COMPANY NAME] senior management effectively communicate the vision for [INSERT COMPANY NAME] 7. I believe [INSERT COMPANY NAME] senior management effectively communicate the vision for [INSERT COMPANY NAME] 8. I believe that the [any example: technology, etc...] is a necessary component to achieve the [INSERT COMPANY NAME] vision. 9. I believe we have the people and process currently in place to achieve the vision of the organization. 19
  19. 19. $$ Change readiness survey sample (2 of 2) Current Culture Authoritarian Self-governed Participatory Team-Oriented Democratic Preferred Culture 1. Dominant Management Philosophy Authoritarian Self-governed Participatory Team-Oriented Democratic Current Culture Common Consistent Differentiated Divergent Disparate Preferred Culture 2. Degree Processes are Standardized Common Consistent Differentiated Divergent Disparate Current Culture Individual Only Mostly Individual Individual and Team Mostly Team Team Only Preferred Culture 3. Reward Behaviors Individual Only Mostly Individual Individual and Team Mostly Team Team Only Current Culture Up or Out Adaptive Performance Standard Performance Subjective Performance Job for Life Preferred Culture 4. Career Progression Up or Out Adaptive Performance Standard Performance Subjective Performance Job for Life Current Culture Base Compensation Base + Reward Balanced High Incentive All Incentive Preferred Culture 5. Method for Reward and Incentive Base Compensation Base + Reward Balanced High Incentive All Incentive 20
  20. 20. $$ Change readiness survey sample data 21
  21. 21. $$ Scope, plan, manage, and measure 1.  Investigate the impact to internal and external stakeholders 2.  Identify stakeholders 3.  Improve communication •  Organizational Process Assets •  Enterprise Environment Factors •  Change Readiness •  Impact Analysis •  Stakeholder Assessment •  Communications •  Risk Register 22
  22. 22. $$ Understand Sponsor Goals & Expectations Understand Strategic Context & Intent Assess Internal Context - Stakeholders & Technology Categorize Areas Of Impact Identify Impact Issues Prioritize Impacts Develop Impact Strategy Implement Focus Groups - Interviews and conversations with key personnel - Drawing on past experiences and knowledge - Project team discussions The departments affected are identified (i.e., HR, Communications, CIS etc.). - Employee positions affected are then ascertained. - Following, classification of the impact issue is by business area Frequency (i.e. how often) - Criticality (extent to which the impact threatens project success) - Complexity - Time Involved - Number of Business Areas Impacted - Position Impacted - Difficulty of Implementation After prioritizing the impacts, highest priorities are addressed first. The focus is to address and minimize negative results of change and typically done during team meetings to ensure that the strategy will incorporate a diverse perspective. Those issues with high degrees of impact are addressed first and given more time, energy and focus. After impact strategy development, the strategy is reviewed with the project sponsor. Findings should be factored into the project scope and project constraints. Impact strategy development Source: Deloitte Consulting 23
  23. 23. $$ Introduction of templates and legend to review templates Template name and full view Template section drilldown Template " Section enlarged 24
  24. 24. $$ Impact analysis sample template 1 •  All managers and leaders are message champions •  Communicate consistently across and within stakeholder groups •  Tailor communication to the interests of each audience •  Use proven delivery methods that have been successful in the past, while taking advantage of innovative new processes •  Involve stakeholders in program decision making •  Actively solicit, listen and respond to customer feedback Communication Principles •  Increase awareness of how the program helps the organization meet its mission challenges today and will help in the future •  Prepare users for changes •  Educate stakeholders about the method of delivering capabilities •  Involve stakeholders in planning for changes in people, process and technology; get their feedback on the process; and gain •  their buy-in •  Inform external oversight bodies and gain their support •  Share the project’s progress and celebrate its successes Communication Objectives 25
  25. 25. $$ Impact analysis sample template 1 of 3 26
  26. 26. $$ Impact analysis sample template 2 of 3 27
  27. 27. $$ Impact analysis sample template 3 of 3 28
  28. 28. $$ 1.  Identify potential advocates and critics of the change 2.  Eliminate resistance to change 3.  Create a team atmosphere 4.  Establish a level of trust 5.  Create a sense of ownership for participants involved in the change 6.  Raise the level of communication effectiveness •  Organizational Process Assets •  Enterprise Environment Factors •  Change Readiness •  Impact Analysis •  Stakeholder Assessment •  Communications •  Risk Register Plan, manage, and measure 29
  29. 29. $$ Stakeholder assessment sample 1 of 3 Name or Group Role Motivation, Drivers, Expectations of Exchange When does this stakeholder need to be involved in the change effort? Stakeholder Management Activities Who Delivers When due Status - 0 + ++ X X X X X X X X X X X X X X X X - 0 + ++ 4 3 6 3 Stakeholder Analysis Predisposition Disposition sum •  All managers and leaders are message champions •  Communicate consistently across and within stakeholder groups •  Tailor communication to the interests of each audience •  Use proven delivery methods that have been successful in the past, while taking advantage of innovative new processes •  Involve stakeholders in program decision making •  Actively solicit, listen and respond to customer feedback Communication Principles •  Increase awareness of how the program helps the organization meet its mission challenges today and will help in the future •  Prepare users for changes •  Educate stakeholders about the method of delivering capabilities •  Involve stakeholders in planning for changes in people, process and technology; get their feedback on the process; and gain •  their buy-in •  Inform external oversight bodies and gain their support •  Share the project’s progress and celebrate its successes Communication Objectives 30
  30. 30. $$ Stakeholder assessment sample 2 of 3 Name or Group Role Motivation, Drivers, Expectations of Exchange When does this stakeholder need to be involved in the change effort? - 0 + ++ X X X X X X X X X X X X X X X X - 0 + ++ 4 3 6 3 Stakeholder Analysis Predisposition Disposition sum Use this to make your sponsors and your team aware of the Plot these individually on a 4 X 4 matrix (see slide 24) 31
  31. 31. $$ Stakeholder assessment sample 3 of 3 Motivation, Drivers, Expectations of Exchange When does this stakeholder need to be involved in the change effort? Stakeholder Management Activities Who Delivers When due Status Stakeholder Analysis 32
  32. 32. $$ Stakeholder management visual plot 33 X X X X - 0 + ++ 4 3 6 3 Disposition sum
  33. 33. $$ 1.  Without good information, people make it up 2.  Lack of information breeds uncertainty…and anxiety 3.  Anxiety interferes with focus and productivity 4.  People work harder for organizations they feel a part of 5.  Communication stimulates new ways of thinking 6.  Communication is about ensuring the right messages are conveyed to the right stakeholders through the right mechanisms in real time. •  Organizational Process Assets •  Enterprise Environment Factors •  Change Readiness •  Impact Analysis •  Stakeholder Assessment •  Communications •  Risk Register Plan, manage, and measure 34
  34. 34. $$ Communication will increase business’ understanding, ownership and acceptance of the change •  What is the transformation about? •  Why is there a need for it? •  What major changes will occur? •  How will my organization be different? •  What does it mean to end users? •  What is the timeline for significant events? •  How will the changes impact me and job? •  What are my new roles and responsibilities? •  How can I influence the changes? •  What new functionalities will be provided? •  How will the current processes change? •  How will the progress be measured and reported? •  Where do I go to find more information? •  How does the change/process/ technology work? •  How will the changes help me? •  What are my new responsibilities? •  What support will I have after training? •  Who are the primary points of contact •  Who can answer my questions? •  How will the changes be implemented? •  Who can I call if I have problems? •  When will the changes be implemented? •  How are the customers adapting throughout the transition process? •  What communications channels are working/not working? •  What kind of concerns do the customers have? •  What are the lessons learned? Awareness Understanding/ Involvement Training/ Acceptance Implementation/ Transition Follow up 35
  35. 35. $$ Communications plan sample 1 Messaging Project Team Workstream Name of Communication Event Audience Category Audience Description Delivery Channel Project Phase Frequency Target Date(s) Communication Objectives (Commitment Curve) Key Messages Content Developer Content Reviewer & Approver Key Communicators Additional Notes Status Status Notes Location of Communication Documents General Information Timing Communication Roles Communication Status •  All managers and leaders are message champions •  Communicate consistently across and within stakeholder groups •  Tailor communication to the interests of each audience •  Use proven delivery methods that have been successful in the past, while taking advantage of innovative new processes •  Involve stakeholders in program decision making •  Actively solicit, listen and respond to customer feedback Communication Principles •  Increase awareness of how the program helps the organization meet its mission challenges today and will help in the future •  Prepare users for changes •  Educate stakeholders about the method of delivering capabilities •  Involve stakeholders in planning for changes in people, process and technology; get their feedback on the process; and gain •  their buy-in •  Inform external oversight bodies and gain their support •  Share the project’s progress and celebrate its successes Communication Objectives 36
  36. 36. $$ Communications plan sample 1 of 4 Project Team Workstream Name of Communication Event Audience Category Audience Description D C General Information 37
  37. 37. $$ Messaging n Delivery Channel Project Phase Frequency Target Date(s) Communication Objectives (Commitment Curve) Timing Communications plan sample 2 of 4 38
  38. 38. $$ s Key Messages Content Developer Content Reviewer & Approver Key Communicators Addit No Communication Roles Communications plan sample 3 of 4 39
  39. 39. $$ Key municators Additional Notes Status Status Notes Location of Communication Documents Communication Status Communications plan sample 4 of 4 40
  40. 40. $$ Communications plan sample 2" Frequency Activity Purpose Prepare Participate or Review Weekly Conduct Project Team (DT) Meeting Planning session for DT MT MT, DT Weekly Develop meeting minutes Verify/develop project/archive old news, new news, and actions Communication Lead --- Weekly Develop Advisory Team (AT) talking points Provide relevant project activity summary and information requests for AT members to discuss with Sponsors Communication Lead MT Weekly Update project plan Update project plan with work performed and any changes to tasks Communication Lead MT 1st and 3rd Tuesdays of every month (TBD) Conduct AT Meeting Update AT on project progress, obtain input, identify and resolve issues Communication Lead, MT AT, MT, DT Bi-weekly Develop Client Status Report Update Project Leadership on project progress and identify issues/risks Communication Lead MT Bi-weekly Deliver Client Status Report --- --- MT Weekly Conduct Client Status Meeting (Project Leadership) Update Project Leadership on project progress, obtain input, identify and resolve issues MT Project Leadership, MT Weekly Collect AT information and follow-on actions Based on AT input, coordinate suggestions or communications Communications Lead Communications Lead Bi-weekly Collect client feedback, information, follow- on actions Output of bi-weekly client meeting Communications Lead Communications Lead Bi-weekly Develop project team next-step (for following week) action reports From bi-weekly client meeting update or modify based on client meeting MT MT, Communications Lead Weekly Develop project team next-step (for following week) action reports Create team action reports MT MT, Communications Lead Weekly Collect status progress reports from team leads Collect information from team leads to harmonize project modifications and develop team communication Communications Lead Communications Lead Weekly Update client status report Boutelle calls Gaddy to give project update Communications Lead Communications Lead to provide talking points; Sponsor, AT Weekly AT and Sponsor touch point Goldstein calls Ford to give project update Communications Lead Communications Lead to provide talking points; AT Weekly Project Leadership touch point Richardson catches up with Argodale and Bonta Communications Lead Communications Lead to provide talking points; AT lead calls Sponsor Weekly Debrief/document client feedback or action steps from client meeting Verify/develop project/archive old news, new news, and actions Communications Lead MT, Communications Lead Weekly Follow-on actions from client meeting Verify/develop project/archive old news, new news, and actions Communications Lead MT, Communications Lead Weekly Develop meeting agenda Coordinate communication from the week and develop Monday's agenda Communications Lead MT, Communications Lead MONTHLY 2nd Tuesday of each month - April 11, May 9, June 13, July 11 (TBD) Executive Briefing Summary briefings for Sponsors and Project Leadership to present status and gather feedback MT, Communications Lead Sponsors, Project Leadership, MT GROUPS Advisory Team (AT) Management Team Project Team (DT) Sponsors Project Leadership MONDAY WEDNESDAY THURSDAY FRIDAY TUESDAY Project Management Team Communications 41
  41. 41. $$ Plan, manage, and measure 1.  Decide how you will identify and manage risk 2.  Determine ratings, escalation, and resolution 3.  Identify risk stakeholder impact 4.  Understand probability 5.  Do not use this as a checklist •  Organizational Process Assets •  Enterprise Environment Factors •  Change Readiness •  Impact Analysis •  Stakeholder Assessment •  Communications •  Risk Register 42
  42. 42. $$ Risk register Functional Group Risk Category Risk ID System ID Risk Event Potential Impact Occurrence Probability Impact Rating Risk Response Strategy Description This is the functional team name, i.e., R&D, Accounting & Controlling, Sales and Marketing. Operational - risk is directly related to the project or program’s scope and schedule Technical - risk impacts the deal / contract Other - all inclusive. Not covered by the above. User defined number. User defined number. May or may not be used. A discrete occurrence that may affect the project for better or worse. Risk is thought to have negative impact. Briefly describe what the risk looks like. Brief statement describing what would happen if the risk event triggered. What would the adverse effect(s) look like? High - It is probably going to happen. Medium - There is a 50 / 50 chance of it happening. Low - Little to no likelihood it will happen. Your assessment of the event’s adverse effects (i.e., scope, schedule, budget, etc.) if the risk event triggers. Three choices: High - Severe project effect(s). Medium - Moderate project effect(s). Low - Limited project effect. There are four risk response options: Avoid Transfer Mitigate Accept Describe what your plan is in the event the risk triggers. What are you going to do in relationship to your risk response (i.e., avoid, transfer, mitigate, or accept). MSC Operational MSC-1 Customs issues (import/export) Shipping delays Low High Mitigate Prepare and validate customs documents prior to Day 1 MSC Technical MSC-2 Not able to issue POs No direct materials for production Low Low Mitigate Manual work-around MSC Operational MSC-3 Incorrect customer payments Payments to Client X instead of Acquirer X High Medium Avoid / Transfer IT working on a solution. Accounting working on a reconciliation process MSC Operational MSC-4 Cannot clear all in-transits before Day 1 Inventory in-transit on Day 1 High Medium Transfer Accounting responsibility MSC Operational MSC-5 Do not complete PI before 12/30 Inventory adjustments posted in next fiscal year Medium Low Accept Accounting will make necessary reconciliation entries MSC Technical MSC-6 Not able to ship product No shipping Low High Mitigate System testing MSC Operational MSC-7 Failed labor negotiations at Location D St. No union agreement for employees at Location D Medium High Mitigate Employees work w/o a contract or under Client X contract via TSA MSC Operational MSC-8 Disruptions to "steady state" product flows Backorders, late deliveries, etc. High Medium Mitigate Build inventory before Day 1. Stage shipments before Jan 2 MSC Technical MSC-9 EFD formatting or printing issues Not able to ship, export, or import Low Medium - could prevent shipping Mitigate Testing EFD's before Day 1 MSC Technical MSC-10 Systems not ready for data transfers before Day 1 Delays in transferring orders and other data Medium Medium -shipping/receiving delays Mitigate Prioritize order conversions if delays MSC Operational / Technical MSC-11 Last minute changes to country closing dates Incorrect shipping settings Medium Medium Accept Be ready to react to any changes Risk Assessment •  All managers and leaders are message champions •  Communicate consistently across and within stakeholder groups •  Tailor communication to the interests of each audience •  Use proven delivery methods that have been successful in the past, while taking advantage of innovative new processes •  Involve stakeholders in program decision making •  Actively solicit, listen and respond to customer feedback Communication Principles •  Increase awareness of how the program helps the organization meet its mission challenges today and will help in the future •  Prepare users for changes •  Educate stakeholders about the method of delivering capabilities •  Involve stakeholders in planning for changes in people, process and technology; get their feedback on the process; and gain •  their buy-in •  Inform external oversight bodies and gain their support •  Share the project’s progress and celebrate its successes Communication Objectives 43
  43. 43. $$ Functional Group Risk Category Risk ID System ID Risk Event Po This is the functional team name, i.e., R&D, Accounting & Controlling, Sales and Marketing. Operational - risk is directly related to the project or program’s scope and schedule Technical - risk impacts the deal / contract Other - all inclusive. Not covered by the above. User defined number. User defined number. May or may not be used. A discrete occurrence that may affect the project for better or worse. Risk is thought to have negative impact. Briefly describe what the risk looks like. Brief wha ri Wh e MSC Operational MSC-1 Customs issues (import/export) Shippi MSC Technical MSC-2 Not able to issue POs No dir produ MSC Operational MSC-3 Incorrect customer payments Payme Acqui MSC Operational MSC-4 Cannot clear all in-transits before Day 1 Invent MSC Operational MSC-5 Do not complete PI before 12/30 Invent in nex MSC Technical MSC-6 Not able to ship product No shi MSC Operational MSC-7 Failed labor negotiations at Location D St. No un emplo MSC Operational MSC-8 Disruptions to "steady state" product flows Backor Risk register 1 of 3 44
  44. 44. $$ System ID Risk Event Potential Impact Occurrence Probability Impact Rating ser defined number. May or may not be used. A discrete occurrence that may affect the project for better or worse. Risk is thought to have negative impact. Briefly describe what the risk looks like. Brief statement describing what would happen if the risk event triggered. What would the adverse effect(s) look like? High - It is probably going to happen. Medium - There is a 50 / 50 chance of it happening. Low - Little to no likelihood it will happen. Your assessment of the event’s adv (i.e., scope, schedule, budget, etc.) event triggers. Three choices: High - Severe project effect( Medium - Moderate project eff Low - Limited project effec Customs issues (import/export) Shipping delays Low High Not able to issue POs No direct materials for production Low Low Incorrect customer payments Payments to Client X instead of Acquirer X High Medium Cannot clear all in-transits before Day 1 Inventory in-transit on Day 1 High Medium Do not complete PI before 12/30 Inventory adjustments posted in next fiscal year Medium Low Not able to ship product No shipping Low High Failed labor negotiations at Location D St. No union agreement for employees at Location D Medium High Disruptions to "steady state" product flows Backorders, late deliveries, etc. High Medium Not able to ship, export, or Risk Assessment Risk register 2 of 3 45
  45. 45. $$ Probability Impact Rating Risk Response Strategy Description y going to happen. 0 chance of it happening. hood it will happen. Your assessment of the event’s adverse effects (i.e., scope, schedule, budget, etc.) if the risk event triggers. Three choices: High - Severe project effect(s). Medium - Moderate project effect(s). Low - Limited project effect. There are four risk response options: Avoid Transfer Mitigate Accept Describe what your plan is in the event the risk triggers. What are you going to do in relationship to your risk response (i.e., avoid, transfer, mitigate, or accept). High Mitigate Prepare and validate customs documents prior to Day 1 Low Mitigate Manual work-around Medium Avoid / Transfer IT working on a solution. Accounting working on a reconciliation process Medium Transfer Accounting responsibility Low Accept Accounting will make necessary reconciliation entries High Mitigate System testing High Mitigate Employees work w/o a contract or under Client X contract via TSA Medium Mitigate Build inventory before Day 1. Stage shipments before Jan 2 Medium - could prevent shipping Mitigate Testing EFD's before Day 1 Risk register 3 of 3 46
  46. 46. $$ 1   Scope, Plan, Manage, and Measure New Scope •  Stakeholder Assessment •  Communications •  Risk Register New Scope •  Change Readiness •  Impact Analysis New Scope •  Organizational Process Assets •  Enterprise Environment Factors Scope 47
  47. 47. $$ •  Business case •  Bait and switch •  Triple constraint •  Formulas •  Project Human Resource Management 48 1.  The Project Challenge 2.  Scope, Plan, Manage, and Measure 3.  Change Business Case
  48. 48. $$ Change Business Case 1.  The planning process 2.  Estimating resources 3.  Developing the budget •  Business Case •  Bait and Switch •  Triple Constraint •  Formulas •  Project Human Resource" Management 49
  49. 49. $$ Change Business Case a)  WBS b)  Activity sequence c)  Network diagram d)  Resource requirements e)  Time and cost estimates f)  Critical path dependencies g)  Schedule development h)  Budget development •  Business Case 1. The planning process 2. Estimating resources 3. Developing the budget •  Bait and Switch •  Triple Constraint •  Formulas •  Project Human Resource" Management 50
  50. 50. $$ Change Business Case •  When the planned resources are no longer available •  When the planned resources are removed •  Business Case •  Bait and Switch •  Triple Constraint •  Formulas •  Project Human Resource" Management 51
  51. 51. $$ Change Business Case •  Business Case •  Bait and Switch •  Triple Constraint •  Formulas •  Project Human Resource" Management Triple Constraint Cost Customer Satisfaction 52
  52. 52. $$ Change Business Case 1.  Impact on project costs 2.  Impact on project duration •  Business Case •  Bait and Switch •  Triple Constraint •  Formulas •  Project Human Resource" Management 53
  53. 53. $$ Change Business Case 1.  Impact on project costs Cost = (effort hours/staff productivity) * staff rate 2.  Impact on project duration Duration = (effort hours/staff production)/staff availability •  Business Case •  Bait and Switch •  Triple Constraint •  Formulas •  Project Human Resource" Management 54
  54. 54. $$ •  Business Case •  Bait and Switch •  Triple Constraint •  Formulas 1.  Impact on project costs! Cost = ! (effort hours/staff productivity)! * staff rate 2.  Impact on project duration" Duration = ! (effort hours/staff productivity)! /staff availability •  Project Human Resource" Management Change Business Case - exercise As the project manager you rely on the work breakdown structure that was built by each subject matter expert to build your activity sequence, network diagram, resource requirements, time and cost estimates, critical path dependencies, schedule, and budget. You have just been told the resource who built the estimate for the work breakdown structure is not available for the project. A replacement has been identified and will join the project. You note that the replacement has a lower hourly rate than the original, however, the replacement has less experience (estimated at 40% less experience) and is only available 50% of the time. Using the details below and the formulas to the left, how can you quantify the impact the replacement will have on the project cost and the project duration? Original resource: Substitute resource Staff production or productivity 1 .6 (.4 less effective than original) Staff rate $350 $170 Effort 40 (fulltime) 50% 55
  55. 55. $$ Project Human Resource Management •  Motivation •  Roles and responsibilities •  Team dynamics •  Milestones 56 •  Business Case •  Bait and Switch •  Triple Constraint •  Formulas •  Project Human Resource" Management Project Human Resource Management
  56. 56. $$ Project Human Resource Management How does individual motivation affect estimated performance •  Business Case •  Bait and Switch •  Triple Constraint •  Formulas •  Project Human Resource" Management •  Motivation •  Roles and responsibilities •  Team dynamics •  Milestones Triple Constraint! Cost! Scope! Time! Customer Satisfaction! Quality! Risk! 57
  57. 57. $$ If you rely on people you need to rely on motivation Motivation 1. Intrinsic 2. External Satisfaction 1. Achievement 2. Recognition 3. Work itself 4. Responsibility 5. Advancement 6. Growth Triple Constraint! Cost! Scope! Time! Customer Satisfaction! Quality! Risk! 58
  58. 58. $$ If you rely on people you need to rely on motivation Source: http://www.flickr.com/photos/creativetallis/3457121970/ Motivation 1. Intrinsic 2. External Satisfaction 1. Achievement 2. Recognition 3. Work itself 4. Responsibility 5. Advancement 6. Growth 59
  59. 59. $$ If you rely on people you need to rely on motivation Source: http://maaw.info/ArticleSummaries/ArtSumHerzberg6803.htm Factors that lead to extreme dissatisfaction Factors that led to extreme satisfaction 60
  60. 60. $$ If you rely on people you need to rely on motivation Triple Constraint! Cost! Scope! Time! Customer Satisfaction! Quality! Risk! 61
  61. 61. $$ Project human resource management 1.  Outline top skills and goals needed in the role a)  Top 3 skills expected b) Top 3 skills to develop 2.  Establish a rating criteria and inputs used for the rating 3.  Share assessment criteria with sponsor, prime, sub- prime for mutual evaluation 62 •  Business Case •  Bait and Switch •  Triple Constraint •  Formulas •  Project Human Resource" Management •  Motivation •  Roles and responsibilities •  Team dynamics •  Milestones
  62. 62. $$ Project human resource management 1.  At the kickoff let the team build the rules of engagement a)  Communication expectations b) Risk identification c)  Meeting protocol d) Knowledge management 2.  Skills register 3.  Project team" (sub-contractor) HR rating 4.  Social media 63 •  Business Case •  Bait and Switch •  Triple Constraint •  Formulas •  Project Human Resource" Management •  Motivation •  Roles and responsibilities •  Team dynamics •  Milestones
  63. 63. $$ Project human resource management 1.  Identify milestones 2.  Identify key accomplishments along the project lifecycle 3.  Align milestones to human resource ratings 4.  Identify and communicate new risk 5.  Identify achievements and recognition 6.  Archive 7.  Pause 64 •  Business Case •  Bait and Switch •  Triple Constraint •  Formulas •  Project Human Resource" Management •  Motivation •  Roles and responsibilities •  Team dynamics •  Milestones
  64. 64. $$ Why business initiatives fail: people 1.  The Project Challenge 2.  Scope, Plan, Manage, and Measure 3.  Change Business Case 65 % of Firms 36% 41% 43% 44% 44% 46% 54% 65% 72% 82% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% IT Perspective not Integrated Silos/No Horizontal Process View No Organizational Change Plan Scope Expansion / Uncertainty Business Case not Compelling Inadequate Sponsorship Unrealistic Expectations Poor Project Management Resistance by Employees Project Team Lacked Skills Source: Deloitte CIO Survey % of Firms 36% 41% 43% 44% 44% 46% 54% 65% 72% 82% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% IT Perspective not Integrated Silos/No Horizontal Process View No Organizational Change Plan Scope Expansion / Uncertainty Business Case not Compelling Inadequate Sponsorship Unrealistic Expectations Poor Project Management Resistance by Employees Project Team Lacked Skills Source: Deloitte CIO Survey •  Organizational Process Assets! •  Enterprise Environment Factors! •  Change Readiness! •  Impact Analysis! •  Stakeholder Analysis! •  Communication Plan! •  Risk Register!
  65. 65. •  Thoughts? •  Questions? •  Contact: www.TobyElwin.com 1.  The Project Challenge 2.  Scope, Plan, Manage, and Measure 3.  Change Business Case Project Scope Series 66

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