EXECUTIVE OVERVIEW OF PROJECT MANAGEMENT AND PROACTIVE PROBLEM MITIGATION

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EXECUTIVE OVERVIEW OF PROJECT MANAGEMENT AND
PRO-ACTIVE PROBLEM MITIGATION

• DPI WORKSHOP
• Presented by
• Curis Consulting
• The CERP Group
• Bates Project Management

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AGENDA

• Introduce the Agenda participants
• The State of Project Management
• ACTIVITY1 The Essence of PM
• Reality Check
• ACTIVITY2 Case Study
• Continuous Risk Management
• ACTIVITY3 Case Study
• Break (15)

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AGENDA (contd)

• Impact of project management on corporate
  governance
• Required for effective project management
• The project management process
• Project selection
• Project planning
• Controlling project execution
• Project Closeout
• Concluding Remarks
• Questions and Discussion
• Feedback

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Participants Presenters

• Hugh Carter
• Charles V. Bokor
• William Bates

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AGENDA

• Introduce the Agenda Participants
• The State of Project Management
• ACTIVITY1 The essence of PM
• Reality Check
• ACTIVITY2 Case Study
• Continuous Risk Management
• ACTIVITY3 Case Study
• Break (15)

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The State of Project Management

• 40 Cancelled
• 1/3 of the projects are successful 17 were
  successful in 1994 (The Standish Group, 2003)
• Of 10,000 projects, 53 were challenged
  (delayed, over budget) 18 were failures 3
  more than in 2003 (The Standish Group, 2004)
• Office of Management and Budget (OMB) put 621 /
  1200 federal-government technology projects on
  watch list the number is 20 better than last
  year (Baseline,01/2005)

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Trilogy (FBI) Paper base to Electronic Filing
(Cold Case Files, Baseline, 04/05)

• 2/3 completed 22 months late
• Last 1/3
• 15 months late
• No end in sight
• 90 of the code may be unusable
• 201.3 million (53) over budget (380)
• Agents continue to prepare paper records
• Most Lessons are learned by consultants not
  organizations

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The State of Project Management

• Changing priorities,
• change in business,
• cut in budget,
• aggressive users,
• new technology,
• bad consultants,
• Staff skills, motivation,
• Time, cost, scope, value

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The State of Project Management

• Time (average is 222 late, The Standish Group,
  Chaos, 2001)
• Unforeseen
• Dependencies information not supplied,
• Workmanship - 50 available, 85 capable,
• imposed deadlines not doable
• Prioritize number, urgent, important

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The State of Project Management

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The State of Project Management

• Time
• Cost (average over budget 189, The
  Standish Group, Chaos, 2001)
• Care/accountability
• Ability to cost
• Lack of Control

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The State of Project Management

• Time
• Cost
• Scope (average under delivers 61,
• The Standish Group, Chaos, 2001)
• Requirements definition (65)
• Change control Flexibility-YES, ability to say
  no -YES
• Educate stakeholders, users
• Value
• Unused, does ( more), results in benefits

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AGENDA

• Introduce the Agenda participants
• The State of Project Management
• ACTIVITY1 The essence of PM
• Reality Check
• ACTIVITY2 Case Study
• Continuous Risk Management
• ACTIVITY3 Case Study
• Break (15)

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ACTIVITY1 The Essence of PM

• What are the Project Management activities that
  are NECESSARY, and what are PARAMOUNT, NECESSARY
  and ESSENTIAL
• in order to manage a project?

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The Essence of PMSuccessful Projects Have

• Defined Goals
• states clear objectives (requirement specs -
  what)
• Defined measures of success
• Plan
• Doable (defines time, scope, based on
  constraints)
• Resources (actual not desired)
• Budget, people, availability, skill sets
• Management Stakeholder support (authority)
• Skills
• PM skills (communications, manage change (scope,
  resources), problem management, execution),
• Management skills (Achievement / project status,
  post implementation review)

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AGENDA

• Introduce the Agenda participants
• The State of Project Management
• ACTIVITY1 The essence of PM
• Reality Check
• ACTIVITY2 Case Study
• Continuous Risk Management
• ACTIVITY3 Case Study
• Break (15)

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Reality Check

• Few surprises
• many surprises SHOULD NOT BE surprises
• Demand for Skill
• Organizational and management constrains
• Managers do a poor job on controlling PMs
• Ability to read a status report
• Have inadequate skills themselves
• The goal is NOT 90
• No Performance Measurement
• Milestones

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Reality CheckINADEQUATE SKILLS

• The importance of Project Management is
  underrated
• Project Management is an activity, not only a
  title
• Work, accountability skill (Schedule, resource
  loading, critical path)
• 77 of IT managers surveyed lack of PM skills
  (Meta)
• lt 15 of companies polled have IT PM training
  programs (Meta).
• lt20 PMs PMI certified

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Reality Check

• The Emperor has no clothes

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Reality Check - Government

• High visibility
• Complex scope (large projects)
• Changing scope
• Risk averse environment
• Risk spread to committees
• risk analysis, risk mitigation, continuous risk
  management
• Politically driven timescales - viability
• Ownership by Senior Management
• support
• Stakeholder buy in

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Reality Check - Government

• Lack of skills
• Recognition of the problem
• Private and government
• Execution of Value for money RFP process

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Time for those who do not have enough
 

•  

TUIT
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AGENDA

• Introduce the Agenda participants
• The State of Project Management
• ACTIVITY1 The essence of PM
• Reality Check
• ACTIVITY2 Case Study
• Continuous Risk Management
• ACTIVITY3 Case Study
• Break (15)

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ACTIVITY2 IVV of the Software Solution
Implementation

• Read the case study presented as the ACTIVITY 2.
  Based on what you have read, make a decision as
  to what your recommendation will be to the ADM,
  and concisely (point form) describe why this is
  the best decision.

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AGENDA

• Introduce the Agenda participants
• The State of Project Management
• ACTIVITY1 The essence of PM
• Reality Check
• ACTIVITY2 Case Study
• Continuous Risk Management
• ACTIVITY3 Case Study
• Break (15)

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Continuous Risk Management

• Definition of Project Success?
• CRM from inception to RETURN on Investment
• Continuous testing for Risks to ensure the
  RETURNS
• Do IT people have the business knowledge for all
  types of RISKS?
• Should IT people have accountability for the
  RETURN?

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Continuous Risk Management Case Study 1

• 1992 - Organization with security guards
• Business need to change reporting structure of
  field force
• Need information at all new levels of the
  organization
• Initial approach to design system for Management
• Needed a new approach - because of RISK to RETURN
• Staff not interested in systems - frightened?
• What is the benefit to ME?

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Continuous Risk Management Case Study 2

• What is needed?

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Continuous Risk Management Case Study 3

• Different approach
• Blueprint
• Phases sequenced in descending order of risk
• included a field trial
• Developed reports for all levels showing O/Time
  allowance, Sick leave, vacation time etc.
• Demonstration by vendors
• Staff questionnaire
• All involved
• Publicity
• Attitude Survey
• Would not receive RETURNS if Users ignored the
  system

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Continuous Risk Management Case Study 4

• PM approach
• Gates
• Management presented with all risks
• Primes for all functions
• Identify and monitor risks in each area
• Risk register maintenance
• Avoid, transfer, mitigate or accept (Contingency
  Plan)
• Spawning of sub-projects to manage the Risks
• Driven by the business

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Continuous Risk Management Case Study 5

• Risks are Probability X Impact
• Probability is a often within 5 or 10
• Impact is in Dollars - 100,000
• Value for Risk allows them to be assessed for
  size - 50,000
• Value for Risk allows easier recognition that
  changes in the value have occurred also allows
  ranking

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Continuous Risk Management - Conclusions

• There is more to PM than IT
• RETURN on Investment is a must for success
• RETURN can only be achieved by dealing with RISKS
  
• People are the biggest obstacle to success
• Business units must drive the CRM process

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• B r e a k

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Bill Bates presents

• Impact of project management on corporate
  governance
• Required for effective project management
• The project management process
• Project selection
• Project planning
• Controlling project execution
• Project Closeout

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Impact of Project Management on Corporate
Governance

• Projects consume large amounts of corporate
  budgets (PMI Fact Book, 2000)
• 25of the World gross product is spent on
  projects of all types or 10 trillion
• In the US, the median project budget size was 2
  million and the mean average was 55 million
• More projects are becoming international in their
  scope of execution
• System development projects
• Aircraft design and manufacturing

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Impact of Project Management on Corporate
Governance

• Large projects are normally cross functional
  impacting operations of multiple divisions of a
  large corporation involving a number of
  executives/senior managers as major stakeholders
• Executives and senior management are awaking to
  their responsibilities concerning projects
• By 2000 the Portfolio Management approach started
  to emerge providing a broader prospective to
  managing the business that project support

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Required for Effective Project Management
Senior Management Support and Direction
PM Selection Criteria
Business Technology Processes Methodology
Project Management Methodology
Project Management Organization
Project Management Systems Tools
Education Certification
Human Considerations
Leadership Skills
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Executive Leadership to Achieve Effective Project
Management

• Overall requirements to achieve an effective
  project environment
• Organizational requirements
• Corporate level cognizance of project selection,
  priority setting and on-going review
• Functional support for project management
• Corporate approach for cross functional and cross
  organizational projects
• Instituting corporate-wide PM will change
  corporate culture

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The Evolving Nature of Achieving Effective
Project Management

• Virtually Impossible to Implement into a Large
  Organization Quickly
• Requires Some Change in Corporate Culture
• Usually has to be Phased in Location by Location,
  Division by Division

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Project Portfolio Management Players
Gartner and Forrester
As of September 2003
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Discussion Points

• How does your organization provide for project
  management process and methods?
• What type of PM software is your organization
  using?
• Does it handle multi-project?
• Does it support resource allocation?
• Can senior management get summary project and
  multi-project information?

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The Complete Project Cycle Model
Framework
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The Project Selection Issue
Project Ideas
Selection Criteria
Feasibility Study/ Business Case
Plan and Execute
Define
Screen
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Project Selection Considerations

• Support of corporate objectives
• Funding availability
• Resources availability
• Priority in relationship to other corporate
  priorities
• Mission critical
• Operational requirement
• Public safety
• Good corporate citizenship/public relations
• Selection Criteria

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Project Selection Process
Corporate Planning Marketing Environment

• Most projects should be identified during
• the corporate planning process

Project Identification
?
Project Definition
Y
Project Feasibility/ Proposal Preparation
PRC
N
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Project Definition Process
An Idea
Project Charter
Stakeholder Analysis
Plan for Feasibility Study
Feasibility Study Plan Approved
PRC
Portfolio Manager
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Project Feasibility Process
Technical Research
Market Research
Global Sizing
Analyze
T
Business Research
Client Research
Economic Research
Feasibility Study Report
PRC
Project Approved
Portfolio Manager
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A Project Planning Control Model
Framework
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Steps in Defining the Projects Scope
Updatethe Project Charter
Identify the Project Planning Team
Develop the Project WBS with Dictionary
Develop Responsibility Lists and Charts
Scope
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Charter Development Considerations

• Purpose of the charter
• Define the programs or projects
• Purpose
• Critical success factors
• Product
• Parameters
• Organization
• Basis of understanding with the sponsor/client
• Charter format is flexible
• Fit to specific organizational requirements
• Fit to specific project requirements

• Reporting relationships
• Priorities
• User/client responsibilities
• Completion criteria

Scope, Communications
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Developing the Project Work Breakdown Structure
(WBS)

• What is a WBS
• A decomposition of the projects product(s) into
  manageable sized pieces
• Usually shown as a hierarchical chart
• Helps to organize the projects work
• Helps to identify
• All pieces of product work
• Milestones

Scope
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Developing the Project Work Breakdown Structure
(WBS)

• Provides a basis for
• Estimating
• Administration (Codes of account)
• Management communications
• Development Considerations
• Top-down approach in decomposing
• Sub-trees are as independent of each other as
  possible
• Minimize
• Number of levels
• Number of connections
• Number of work packages

Scope
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Blending the WBS OBS
Work packages
Adm Comm Mark Eng
WP
WBS
Achat
Dir
Eng.
Mark.
Adm.
Comm.
OBS
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Steps to Plan the Projects Work

• Completes initial project database
• Provides work package contracts
• There are detailed, short cut and global
  approaches

Work Package Definition
Prepare WP Schedule and Resource Analysis
Identify and Estimate Resources
Prepare WP Budget
Identify Cost Travel
Scope, Time, Cost
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Estimating Considerations
Duration Time

• Factors to be considered in estimating labour

Total Time
Effort Time
Disruption Factor
Base Time
LC
NPLT
PLT
SeniorManagement
SeniorManagement
Project Manager
Work Package Leader
Work Package Leader
Time, Cost
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Discussion Points

• How does your organization handle
• project and non project loss time?
• Contingency?
• What is management reaction to contingency?

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WP Plan Estimate Schedule)
Time, Cost
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Work Package Plan (Budget)
Cost
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Project Schedule Planning Considerations

• Understanding of scheduling techniques
• Determining relationships with other projects
• Use of project management software
• Resource analysis and balancing
• Impact on
• Functional groups
• Other projects
• Establishing priorities

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Issues in Budget Planning

• Source of project budget data
• Control considerations affecting planning
• Corporate accounting system
• Project accounting system
• Project environment
• Availability and validity of update data
• Resource units versus cost

Cost
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Project Budget Baseline
Project Target
Integration, Cost, Time
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Controlling Project Execution

• Administering the Project
• Controlling Scope Change Control
• Controlling Time and Cost
• Project Closeout

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Administering the ProjectThe Project Workbook
Scope Definition
Work Planning
Project Control
Project Notes
Administration
Appendices
Project Work Book
Integration
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Administering the Project- Issues Management
Project Plan Analysis
ISSUES
Risk Analysis
Project Audits
Status Meetings
Organizational Change
Team Member Feedback
Product Inspections
External Influences
Technical Reviews
Issues can arise from anywhere! Why do we care
about issues?
Integration
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Administering the Project- Assumptions Management
Important
Human Resource Management

• Assumptions
• Initiated in Planning - Project Charter
• Need to be documented and validatedthroughout
  the project life cycle
• Why are assumptions, including their tracking
  important to a project?

Communications Management
Risk Management
Work Package, Schedule and Budget Planning
Change Management
Assumptions List
Procurement Management
Project Charter
Quality Management
Integration
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Administering the Project- Project Update
Considerations
Frequency
Control Type
Effort
Duration
Procure
Reporting
Update Level
Responsible
Daily
Tight
Short
High
Work Package Leader
Work Package
Weekly Recommended Minimum
Long
Light
Low
High Frequency lt 1 year
Weekly Biweekly Semi-Monthly Monthly on
Fridays
High Volume
Tight
Short
High
Project Manager
Project
Low Frequency gt 1 year
Low Volume
Long
Low
Light
Time, Cost
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Project Scope Control - Change
Scope, Integration
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Change Timing - Release Strategy
Life Cycle Phases
Detailed Design
Test
Concept
RequirementsDefinition
Development
Tighter Change Management
Change Requests
Implement
Defer
Release 1
Release 2
Scope, Integration
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Project Schedule Update Example
As At Date
WP 1.4 - 3 days to complete
WP 2.3 - 12 days to complete
WP 1.4 ahead or behind schedule? WP 2.3 ahead
or behind schedule?
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Project Update
As At Date
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Risk Monitoring and ControlActivities
Risk Responses Implemented
Risk Monitoring and Control
Risk Response Actions Effective
Project Assumptions Valid
New Risks Analyzed and Managed
Policies and Procedures Followed
Risks Communicated
Risk Data Evaluated and Archived
Risk
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Project Close Out Report
Definition
Project Completion, Deferment, Cancellation
Deliverables
Scope
Project Close Out Report
Sponsor / Client Key Stakeholders
Cost
Schedule
Lessons Learned
Corporate Memory
Administrative Close Out
Recommendations
Future Projects
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Project Close Out ProcessesTeam Close Out
Sunset Reviews
Lessons Learned
Team Stakeholders Sponsor/Client
360
Individual Performance Feedback
Team Member Project Manager
Reassignment
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Concluding Remarks

• PROJECT MANAGEMENT Good Project Managers love
  their work Project management is actual work
  requiring skills.
• PLAN Have a viable plan and follow it
• QUALITY Eliminate re-work, 1st time right .
• TEAM Build the Team. Define accountability.
• Communicate, communicate, communicate to
  everyone

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Concluding Remarks

• Risk management is a continuous process.
• Performance management is good
• You WILL NOT be able to PLEASE EVERYONE.
• If you are late on the critical path, YOU WILL
  NOT CATCH UP.
• The longer/larger the project the less chance
  that it can be successfully implemented.

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Questions and Discussion

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• Thank you