1 engineering project management eng r. l. nkumbwa ™ © 2010 nkumbwa™. all rights reserved

1

Engineering Project Management Engineering Project Management

Eng R. L. NkumbwaEng R. L. Nkumbwa™™

www.nkumbwa.weebly.comwww.nkumbwa.weebly.com

© 2010 Nkumbwa™. All Rights Reserved.

2© 2010 Nkumbwa™. All Rights Reserved.

OutlineOutline

PM in today’s environmentPM in today’s environment rapid changerapid change BPRBPR

The project planThe project plan Management & communicationsManagement & communications Organizational, people, political issuesOrganizational, people, political issues StakeholdersStakeholders Tools & methodologiesTools & methodologies


New Business EnvironmentNew Business Environment

Change – at ever faster paceChange – at ever faster pace Globalization/InternetGlobalization/Internet Intense CompetitionIntense Competition BPR leading toBPR leading to

Downsizing, flatteningDownsizing, flattening Team approach, empowermentTeam approach, empowerment E-Commerce, outsourcingE-Commerce, outsourcing


ChangeChange

Business ChangeBusiness Change

ProjectsProjects

Project Management (PM)Project Management (PM)


Project CharacteristicsProject Characteristics

Defined goalDefined goal Primary sponsor or customerPrimary sponsor or customer Set of activitiesSet of activities

Unique, complex, sequencedUnique, complex, sequenced Start & finishStart & finish

Temporary, time frame for completionTemporary, time frame for completion Limited resourcesLimited resources

Dollars, peopleDollars, people Uncertainty, riskUncertainty, risk


Ongoing ActivitiesOngoing Activities

Have opposite characteristics to projectsHave opposite characteristics to projects Similar, often identical products or servicesSimilar, often identical products or services No defined endNo defined end Staffing & management practices geared to aboveStaffing & management practices geared to above


What is Project Management?What is Project Management?

PM is the application of knowledge, skills, tools and PM is the application of knowledge, skills, tools and techniques to project activities in order to meet project techniques to project activities in order to meet project requirements. (PMI)requirements. (PMI)

PMPM is an art.is an art. is a science.is a science. has a set of tools and methods.has a set of tools and methods.


Three DisciplinesThree Disciplines


Project Dynamics:Project Dynamics:The Triple ConstraintsThe Triple Constraints

Scope

Quality

Cost Time

Resources


Scope Creep (Wysocki)Scope Creep (Wysocki)

Scope creepScope creep any change not in original planany change not in original plan IT particularly prone to creepIT particularly prone to creep major challenge for PMsmajor challenge for PMs

Hope creepHope creep will catch up next weekwill catch up next week

Effort creepEffort creep 95-99% complete95-99% complete

Feature creepFeature creep team member adds featuresteam member adds features


Traditional Project ManagementTraditional Project Management

PM practiced (not by name) for millenniaPM practiced (not by name) for millennia PERT/CPM tools developed in 1950sPERT/CPM tools developed in 1950s Focus on time, budget, specsFocus on time, budget, specs

Gantt charts, Pert/CPMGantt charts, Pert/CPM s-shaped budget curvess-shaped budget curves resource matricesresource matrices

Customers an afterthoughtCustomers an afterthought Project managers’ domain limitedProject managers’ domain limited

implementersimplementers


New Project ManagementNew Project Management

Need to enhance traditional PM to:Need to enhance traditional PM to: become more customer focusedbecome more customer focused utilize new tools & softer skillsutilize new tools & softer skills empower/select project managersempower/select project managers

decision makingdecision making profit-loss responsibilitiesprofit-loss responsibilities entrepreneurial approachentrepreneurial approach business know-howbusiness know-how


PMI PMBOKPMI PMBOKProject management Body of KnowledgeProject management Body of Knowledge


Effective Project ManagersEffective Project Managers

Lead by exampleLead by example VisionariesVisionaries Technically competentTechnically competent DecisiveDecisive Good communicatorsGood communicators

Good motivatorsGood motivators Stand up to execs when Stand up to execs when

necessarynecessary Support team membersSupport team members Encourage new ideasEncourage new ideasZimmerman & Yasin 1998 Zimmerman & Yasin 1998


Effective Project ManagersEffective Project ManagersAlternate ViewAlternate View

Leaders (also managers, administrators)Leaders (also managers, administrators) CommunicatorsCommunicators Goal orientedGoal oriented Problem solversProblem solvers InnovatorsInnovators Work well under pressure (able to laugh)Work well under pressure (able to laugh) Technically competent, respected, awareTechnically competent, respected, aware Know company & its businessKnow company & its business


Project Manager TraitsProject Manager Traits

Systems approachSystems approach Analytical skillsAnalytical skills Ability to zoomAbility to zoom

forest versus treesforest versus trees big picture versus detailsbig picture versus details

Firm yet flexibleFirm yet flexible ““Velvet covered brick”Velvet covered brick”


Project Life Cycle -- PhasesProject Life Cycle -- Phases


Project Management Process GroupsProject Management Process Groups


Project Life Cycle (Frame)Project Life Cycle (Frame)

Planning

Concept

Execution

Closeout

Operation

Maintenance


PM Life Cycle (Wysocki)PM Life Cycle (Wysocki)

Five PhasesFive Phases

1.1. Scope projectScope project

2.2. Develop project planDevelop project plan

3.3. Launch planLaunch plan

4.4. Monitor/control project projectMonitor/control project project

5.5. Close out projectClose out project


Why Projects SucceedWhy Projects Succeed

User involvementUser involvement Exec management supportExec management support

unequivocal sponsorshipunequivocal sponsorship Clear understanding & statementClear understanding & statement

of requirementsof requirements Effective planningEffective planning Realistic expectationsRealistic expectations

Standish Group survey of IT execsStandish Group survey of IT execs


Building Bridges versus SoftwareBuilding Bridges versus Software

Why do bridge projects usually succeed?Why do bridge projects usually succeed? Why do software projects usually fail?Why do software projects usually fail?

on timeon time within budgetwithin budget meet expectationsmeet expectations


Successful ProjectsSuccessful Projects

Depends on your point of viewDepends on your point of view Execs, users & project team view success differentlyExecs, users & project team view success differently Is project successful if meets stated goals, schedule & Is project successful if meets stated goals, schedule &

budget?budget? Does project result in tangible, cost effective business Does project result in tangible, cost effective business

improvement for users?improvement for users?


Success as perceived by ExecsSuccess as perceived by Execs

Real business assetReal business asset Cost controlled (low)Cost controlled (low) Objectives achievedObjectives achieved Not oversoldNot oversold Not over-committedNot over-committed Well managedWell managed

effective controls, milestones achievedeffective controls, milestones achieved


Success as perceived by Project TeamSuccess as perceived by Project Team

Execs & users happy with resultsExecs & users happy with results Management committed & supportiveManagement committed & supportive Necessary resources availableNecessary resources available

enough, adequateenough, adequate Managed changes effectivelyManaged changes effectively Schedule realisticSchedule realistic Gained experienceGained experience


Project DisciplineProject Discipline

Definition: act of encouraging desired pattern of behaviorDefinition: act of encouraging desired pattern of behavior the glue that holds it all togetherthe glue that holds it all together project manager, team, organizationproject manager, team, organization Implementing disciplineImplementing discipline

set realistic goalsset realistic goals obtain commitmentsobtain commitments track progress against planstrack progress against plans enforce commitmentsenforce commitments

WhittenWhitten


Key Concepts (Verzuh)Key Concepts (Verzuh)

PM – emerging career trackPM – emerging career track PM – art informed by sciencePM – art informed by science Challenges of PMChallenges of PM

personnel, estimating, budgeting, authority, controls, personnel, estimating, budgeting, authority, controls, communicationcommunication

PM is industry independent, project managers aren’tPM is industry independent, project managers aren’t


Key Concepts (Verzuh) Key Concepts (Verzuh) ContinuedContinued

Managing Expectations Managing Expectations (later session)(later session) No damageNo damage

can’t keep giving 120%can’t keep giving 120% order ulcer medicationorder ulcer medication

Surviving organizational structureSurviving organizational structure authority, communications, priority, focus, chain of authority, communications, priority, focus, chain of

commandcommand


Quotes from VerzuhQuotes from Verzuh

Primary responsibility of project manager to lead Primary responsibility of project manager to lead customers, management, vendors and encourage them customers, management, vendors and encourage them to work together during the project.to work together during the project.

Success may demand every technique in this bookSuccess may demand every technique in this book Project manager is catalystProject manager is catalyst

Energy & attitude give the powerEnergy & attitude give the power


Silver BulletsSilver Bullets

Organizations & their execs have problemsOrganizations & their execs have problems They look to projects to solve themThey look to projects to solve them Too many have silver bullet expectations of projectsToo many have silver bullet expectations of projects They fail to address the root causes of their problemsThey fail to address the root causes of their problems


Success or Failure?Success or Failure?

“BIG I” Successful?Successful? Well planned?Well planned? Clear accountability?Clear accountability? Did things go wrong?Did things go wrong? Effective communications?Effective communications? Carrot & stick?Carrot & stick?

““BCMDC”BCMDC” Fiasco?Fiasco? Planned or happened?Planned or happened? Anyone accountable?Anyone accountable? Anyone fired?Anyone fired? Frank’s plumbing?Frank’s plumbing? One disaster after another?One disaster after another? Who cares?Who cares?


OverviewOverview

Delighting customersDelighting customers Needs to requirementsNeeds to requirements Organizational issuesOrganizational issues StakeholdersStakeholders Politics (revisited)Politics (revisited) Getting the project off the groundGetting the project off the ground

Scope the ProjectScope the Project Project Charter (Verzuh)Project Charter (Verzuh) Project Overview Statement (Wysocki)Project Overview Statement (Wysocki)


Delighting CustomersDelighting Customers

Delight – not just satisfyDelight – not just satisfy Knowing who they are, what they want, when they are right & Knowing who they are, what they want, when they are right &

wrongwrong Obsession with customer satisfaction is part of the new project Obsession with customer satisfaction is part of the new project

managementmanagement Nothing obvious/trivial about identifying customersNothing obvious/trivial about identifying customers


Delighting Customers (cont.)Delighting Customers (cont.)

““High-value organizations are in business of selling High-value organizations are in business of selling solutions, not hardware, and customer solutions, not hardware, and customer

satisfaction achieved through partnering between satisfaction achieved through partnering between buyers & sellers”buyers & sellers”

(Frame)(Frame)


Meeting Customer ExpectationsMeeting Customer Expectations

Product/service usableProduct/service usable Promises keptPromises kept competent/gracious servicecompetent/gracious service needs understood & addressed effectivelyneeds understood & addressed effectively


CustomersCustomers== Needs/Requirements Needs/Requirements

Must work tirelessly to Must work tirelessly to understandunderstand them them It’s a translation process twixt ill-defined languagesIt’s a translation process twixt ill-defined languages


CustomersCustomers== Needs/Requirements Needs/Requirements

Needs analyst traits:Needs analyst traits: strong ability to deal with customersstrong ability to deal with customers political skillspolitical skills technically competenttechnically competent open-minded & imaginativeopen-minded & imaginative high tolerance for ambiguity high tolerance for ambiguity articulatearticulate

Technicians tend to produce Mercedes not the Hyundai thatTechnicians tend to produce Mercedes not the Hyundai that==s s wantedwanted


Bridging Customer-Developer GapBridging Customer-Developer Gap

Partner with customers (stakeholders)Partner with customers (stakeholders) Use “Joint” techniques:Use “Joint” techniques:

Joint Project Planning (JPP)Joint Project Planning (JPP) Joint Application Development (JAD)Joint Application Development (JAD)

If fail to get needs/requirements right both sides at faultIf fail to get needs/requirements right both sides at fault Communications barriersCommunications barriers

cultural, vocabulary, medium, feedbackcultural, vocabulary, medium, feedback Tips: be up front, cautious (Murphy’s Law), realistic, clear, Tips: be up front, cautious (Murphy’s Law), realistic, clear,

don’t jump to solutions, communicate/educatedon’t jump to solutions, communicate/educate


Improving Needs DefinitionImproving Needs Definition

Understand present system in full contextUnderstand present system in full context Identify multiple customers, prioritize their needs Identify multiple customers, prioritize their needs Needs defining task force involving customersNeeds defining task force involving customers Educate customers in rudiments of project managementEducate customers in rudiments of project management

must realize itmust realize it==s an exercise in compromises an exercise in compromise multiple customers, conflicting needs, budget & schedule multiple customers, conflicting needs, budget & schedule

constraintsconstraints


Needs AnalysisNeeds Analysis

KeyAreas ofAnalysis

OrganizationalOrganizational

FunctionalRequirements

FunctionalRequirements

PresentSystemPresentSystem


Organizational IssuesOrganizational Issues

You are PM not CEO/COOYou are PM not CEO/COO Yet you need organization’s commitment, so:Yet you need organization’s commitment, so:

focus org. culture on customer value (culture change!)focus org. culture on customer value (culture change!) unbridled change so organize into short, achievable unbridled change so organize into short, achievable

deliverablesdeliverables improve processes for customer delightimprove processes for customer delight strengthen project staff capabilities, e.g. business & non-strengthen project staff capabilities, e.g. business & non-

technical skillstechnical skills


Changing Corporate Culture Changing Corporate Culture

BPR (project oriented) not TQM (process oriented), so:BPR (project oriented) not TQM (process oriented), so: Focus on valueFocus on value Encourage upside-down thinkingEncourage upside-down thinking Power sharingPower sharing Long term viewLong term view Total customer focusTotal customer focus


Business Reengineering & Quality ManagementBusiness Reengineering & Quality Management

Business QualityImprovement

Business QualityImprovement

BusinessReengineering

BusinessReengineering

DefinitionDefinition

TargetTarget

PotentialPaybackPotentialPayback

RiskRisk

What Changes?What Changes?

PrimaryEnablersPrimaryEnablers

Incrementally Improving Existing ProcessesIncrementally Improving Existing Processes

Radically Redesigning Business SystemsRadically Redesigning Business Systems

Any ProcessAny Process Strategic Business ProcessesStrategic Business Processes

10%-50% Improvements10%-50% Improvements 10-Fold Improvements10-Fold Improvements

LowLow HighHigh

Same Jobs - More EfficientSame Jobs - More Efficient Big Job Cuts; New Jobs; Major Job RedesignBig Job Cuts; New Jobs; Major Job Redesign

IT and Work SimplificationIT and Work Simplification IT and Organizational RedesignIT and Organizational Redesign


Organizational CommitmentOrganizational Commitment

Organization committed to PM:Organization committed to PM: organization has project management system defining organization has project management system defining

processes & practicesprocesses & practices system disseminated to employees via education & system disseminated to employees via education &

trainingtraining Management instills the discipline necessary to ensure Management instills the discipline necessary to ensure

system followedsystem followed system is living document not collecting dustsystem is living document not collecting dust


Customers Dont CooperateCustomers Dont Cooperate

Common complaint from PMs: Common complaint from PMs: customers not behaving responsiblycustomers not behaving responsibly ““customer” not monolithcustomer” not monolith prime cause organizational politicsprime cause organizational politics

Educate customers, educate, educateEducate customers, educate, educate emphasize contractual obligationsemphasize contractual obligations meeting key milestonesmeeting key milestones establish steering committeeestablish steering committee


Stakeholder ConceptStakeholder Concept

In projects stakeholders are the movers & shakersIn projects stakeholders are the movers & shakers Stakeholder rolesStakeholder roles

Customers/usersCustomers/users Sponsor(s)Sponsor(s) Line (functional) managementLine (functional) management Project managerProject manager Project teamProject team Anyone/everyone else with a stakeAnyone/everyone else with a stake

VerzuhVerzuh


StakeholdersStakeholders

First identify all stakeholdersFirst identify all stakeholders Must delight not just customers, but also stakeholdersMust delight not just customers, but also stakeholders This is tough!This is tough! Customers, management, project team must all agree on project Customers, management, project team must all agree on project

goalsgoals Project manager must coordinate, guide, lead this diverse group Project manager must coordinate, guide, lead this diverse group

through the project stagesthrough the project stages


Politics RevisitedPolitics Revisited

““Politics is the art of influence”Politics is the art of influence” DON’T accept things at face value, be insensitive to politics, be DON’T accept things at face value, be insensitive to politics, be

hyper-politicalhyper-political Action guideAction guide

positive attitude to politicspositive attitude to politics develop base of authoritydevelop base of authority get a grasp of political environmentget a grasp of political environment action planaction plan


Politics RevisitedPolitics Revisited

Building authorityBuilding authority formal (from position)formal (from position) technical/expert authoritytechnical/expert authority charismacharisma purse string (rewards)purse string (rewards) bureaucracybureaucracy old boy network . . . etc.old boy network . . . etc.

Support of “power players”Support of “power players”


Project TeamsProject Teams

Traditional teamsTraditional teams full time membersfull time members co-locatedco-located easy to develop esprit de corpseasy to develop esprit de corps

Today’s teamsToday’s teams part-timerspart-timers not assigned for durationnot assigned for duration virtual environmentvirtual environment tough to build effective teams, demands ingenuitytough to build effective teams, demands ingenuity


Getting Project off the GroundGetting Project off the Ground

Remember project success demandsRemember project success demands goals agreed by all stakeholdersgoals agreed by all stakeholders control of scopecontrol of scope management supportmanagement support

PROJECT CHARTERPROJECT CHARTER brief, high level document formally establishing projectbrief, high level document formally establishing project understood & signed by all key stakeholdersunderstood & signed by all key stakeholders


Project CharterProject Charter

Establishes rules of gameEstablishes rules of game What project includes, what it doesn’t (boundaries)What project includes, what it doesn’t (boundaries) Goals, constraints, success criteriaGoals, constraints, success criteria NegotiateNegotiate Formally agreeFormally agree Note Statement of Work (SOW)Note Statement of Work (SOW)

NOT usual usage of termNOT usual usage of term


Establish InitiateEstablish Initiate

Charter establishes projectCharter establishes project Next must compete with other projects for scarce Next must compete with other projects for scarce

resourcesresources Prioritize – go or no go?Prioritize – go or no go? Go aheadGo ahead Begin Analysis PhaseBegin Analysis Phase needs requirements needs requirements detailed SOWdetailed SOW


Wysocki: Scope the ProjectWysocki: Scope the Project

Wysocki’s equivalent of the Charter:Wysocki’s equivalent of the Charter:Project Overview Statement (POS)Project Overview Statement (POS)

About one page, butAbout one page, but attachments: risk & financial analysesattachments: risk & financial analyses approval by project mgr & core team (?)approval by project mgr & core team (?) Joint Project Planning (JPP) sessionJoint Project Planning (JPP) session

Project Definition Statement (PDS)Project Definition Statement (PDS) next stagenext stage considerably more detailconsiderably more detail


POS ComponentsPOS Components

1.1. Problem/opportunityProblem/opportunity factual statementfactual statement accepted by organizationaccepted by organization

2.2. Goal (one goal)Goal (one goal) gives purpose & direction gives purpose & direction what will be donewhat will be done defines final deliverable/outcomedefines final deliverable/outcome SMARTSMART

specific, measurable, assignable, realistic, time framespecific, measurable, assignable, realistic, time frame



3.3. ObjectivesObjectives

1.1. outcomeoutcome

2.2. time frametime frame

3.3. measuremeasure

4.4. actionaction

4.4. Success criteriaSuccess criteria• why do we want to do project?why do we want to do project?• measurable business valuemeasurable business value• sells project to execssells project to execs



5.5. Assumptions, risks, obstaclesAssumptions, risks, obstacles• what can go wrong?what can go wrong?• alert management to factors that may alert management to factors that may

interfere/compromiseinterfere/compromise• specific, briefspecific, brief


PoliticsPolitics

Politics:Politics: control of outcomes via control of people. control of outcomes via control of people.

Use political tools in conjunction with product-oriented toolsUse political tools in conjunction with product-oriented tools Use of political tools NOT inherently badUse of political tools NOT inherently bad Ignoring politics can result in unnecessary losing outcomesIgnoring politics can result in unnecessary losing outcomes


Politics vs ProductPolitics vs Product

Product Ethics Politics

product/service provided to customer function-quality-service Success if meets specs, on time,

under budget

perception of what we provided

perception-expectation

success defined by positive surprises


Perceptions & ExpectationsPerceptions & Expectations

Customers have preconceived perceptions & expectationsCustomers have preconceived perceptions & expectations Perhaps unrealistic, in hope of solving major problemsPerhaps unrealistic, in hope of solving major problems These perceptions/expectations are reality to themThese perceptions/expectations are reality to them If discrepancy, surprise will occurIf discrepancy, surprise will occur


First Law of PoliticsFirst Law of Politics

Rule #1: surprise will always happenRule #1: surprise will always happen Rule #2: managing surprises is key to customer satisfactionRule #2: managing surprises is key to customer satisfaction First LawFirst Law

Perception – Expectation = SurprisePerception – Expectation = Surprise Perception: view of product/service actually observedPerception: view of product/service actually observed Expectation: view what should be able to doExpectation: view what should be able to do


Reality is a MythReality is a Myth

ImaginedImagined

MapMap

TruthTruth

. . what you believe. . what you believe

. . . . subjective. . . . subjective

RealReal

TerritoryTerritory

FactFact

. . . . what is true. . . . what is true

. . . objective reality. . . objective reality


Second Law of PoliticsSecond Law of Politics

Second Law:Second Law:

Perception = RealityPerception = Reality

Doesn’t matter what you do, only what people think you doDoesn’t matter what you do, only what people think you do As many truths (realities) as there are people; no-one better than As many truths (realities) as there are people; no-one better than

any otherany other


Third Law of PoliticsThird Law of Politics

There are trade-offs twixt wants and needsThere are trade-offs twixt wants and needs Also gap twixt wants/needs can create negative surprise laterAlso gap twixt wants/needs can create negative surprise later

hence poor customer satisfactionhence poor customer satisfaction

Third LawThird Law

Wants – Needs = SurpriseWants – Needs = Surprise


Fourth Law of PoliticsFourth Law of Politics

Fourth LawFourth Law

Perception Perception todaytoday = Expectation = Expectation tomorrowtomorrow

This is law of political momentumThis is law of political momentum More effort required as time goes on to create positive surprisesMore effort required as time goes on to create positive surprises


Political Definition of SuccessPolitical Definition of Success

Notes:Notes: Success exists in minds of customersSuccess exists in minds of customers Success varies over timeSuccess varies over time Our task is to Our task is to control surprisescontrol surprises This takes precedence over product/servicesThis takes precedence over product/services


Equation for SuccessEquation for Success

Success = Sum of surprises as perceived by all customers over timeSuccess = Sum of surprises as perceived by all customers over time

i=ni=n

Success = ( Success = ( ∑∑ S S i i ) ) tt

i=1i=1

n = # of customersn = # of customers t = timet = time


Equation for Success IIEquation for Success II

i=ni=n

Success = (Success = (∑∑ s s ii w w i i ) ) tt

i=1i=1

w = weight associated with eachw = weight associated with each

customercustomer


Political CredibilityPolitical Credibility

Every person/organizational component has a stack of political Every person/organizational component has a stack of political “chips”“chips”

There is “price” when we try to control an outcomeThere is “price” when we try to control an outcome If we don’t have enough chips at the time we fail to controlIf we don’t have enough chips at the time we fail to control So vital to maintain sufficient pile of chipsSo vital to maintain sufficient pile of chips


Political CredibilityPolitical Credibility

Chips go away whenChips go away when we spend in political processwe spend in political process we create negative surpriseswe create negative surprises & they evaporate over time& they evaporate over time

We gain chips whenWe gain chips when we create positive surpriseswe create positive surprises we “join”we “join” & via our business/technical abilities& via our business/technical abilities


Attaining Political CredibilityAttaining Political Credibility

Establish mission Establish mission what products/services we providewhat products/services we provide

Identify customersIdentify customers functional (direct)functional (direct) political (indirect) political (indirect)

Survey customersSurvey customers what expectations/perceptions exist?what expectations/perceptions exist? criteria for measuring them?criteria for measuring them? triggers for them?triggers for them?


Attainment (continued)Attainment (continued)

Survey customers (cont.)Survey customers (cont.) customer wants/needs?customer wants/needs? contradictions twixt them?contradictions twixt them? wall erected?wall erected?

Establish vehiclesEstablish vehicles ““For each customer, what vehicle exists to control For each customer, what vehicle exists to control

expectations/perceptions in the criteria for that user?”expectations/perceptions in the criteria for that user?”


Leverage TechniquesLeverage Techniques

LeverageLeverage to be effective must apply political credibility at right to be effective must apply political credibility at right

pointpoint this is principle of leveragethis is principle of leverage target chips toward specific “owners” (we may be target chips toward specific “owners” (we may be

credible with one person not another)credible with one person not another) not enough to have chips, we must have them in right not enough to have chips, we must have them in right

place at right timeplace at right time


Leverage TechniquesLeverage Techniques

Leverage principlesLeverage principles target chips to be where & when neededtarget chips to be where & when needed Identify winners/losers; winners work for you; losers Identify winners/losers; winners work for you; losers

againstagainst Use someone else’s chips; get one of winners to attempt Use someone else’s chips; get one of winners to attempt

controlcontrol


PersuasionPersuasion

Common mistake among techniciansCommon mistake among technicians assume sufficient evidence/logical argument will convince assume sufficient evidence/logical argument will convince

peoplepeople that reason & logic rule the daythat reason & logic rule the day

But best idea backed by credible evidence won’t fly unless those But best idea backed by credible evidence won’t fly unless those controlling outcome agree to itcontrolling outcome agree to it

We must sway the decision/outcomeWe must sway the decision/outcome


Persuasion ProcessPersuasion Process

Define decision we wantDefine decision we want List every major player who can affect decisionList every major player who can affect decision

people, groups, organizationspeople, groups, organizations i.e. i.e. the stakeholdersthe stakeholders

Assess Assess position of each player -- for or againstposition of each player -- for or against power of each playerpower of each player priority each player places on outcomepriority each player places on outcome


Persuasion Process (cont.)Persuasion Process (cont.)

What can we do to cause the power, position, What can we do to cause the power, position, priority of each player to change so the outcome priority of each player to change so the outcome we want will occur?we want will occur?


Persuasion (cont.)Persuasion (cont.)

Person Power Position Priority Score

A 4 4 1 16

B 2 -5 5 -50

C 1 0 2 0

(assign value, 1-5, 5 high)


SummarySummary

Technical Competence is InsufficientTechnical Competence is Insufficient

Embrace PoliticsEmbrace Politics


Remember Verzuh’sRemember Verzuh’s Five Essential Success Factors Five Essential Success Factors

Agreement on Agreement on GoalsGoals PlanPlan clearly indicating what and who clearly indicating what and who Constant, effectiveConstant, effective Communication Communication ControlledControlled Scope Scope Management Management supportsupport


OverviewOverview

Selecting ProjectsSelecting Projects Risk ManagementRisk Management Work Breakdown StructureWork Breakdown Structure Realistic EstimatingRealistic Estimating Scheduling MethodsScheduling Methods

Gantt, CPM, PERTGantt, CPM, PERT Time Boxes & Critical ChainTime Boxes & Critical Chain


Selecting ProjectsSelecting Projects

In most organizations projects mustIn most organizations projects must

compete for priority, dollars, resourcescompete for priority, dollars, resources Financial ModelsFinancial Models

detailed financial analysisdetailed financial analysis cost–benefit ratioscost–benefit ratios


Selecting Projects (cont.)Selecting Projects (cont.)

Martin Buss “How to Select Projects” Martin Buss “How to Select Projects” Harvard Business Review 1983Harvard Business Review 1983 Small project selection teamSmall project selection team grids with criteria, high-medium-lowgrids with criteria, high-medium-low criteria generally financial, technical, enhancing core criteria generally financial, technical, enhancing core

competencies, organizational fit against costscompetencies, organizational fit against costs review proposals, then quick collective judgmentreview proposals, then quick collective judgment


Buss’s Grid ApproachBuss’s Grid Approach

Grid A

High

Medium

Low

Medium Low

High

Financial Benefits

Co

sts


Risk – Risk – RiskRisk – Risk – Risk

Life is full of uncertainty, i.e. Life is full of uncertainty, i.e. RiskRisk Projects are inherently & especially risk proneProjects are inherently & especially risk prone Insurance companies are risk managersInsurance companies are risk managers Re projects: Murphy was an optimistRe projects: Murphy was an optimist

if it can go wrong, it willif it can go wrong, it will As project managers:As project managers:

We must apply systematic risk management techniques We must apply systematic risk management techniques throughoutthroughout project project

They are part of our toolkit (PMBOK)They are part of our toolkit (PMBOK)


Risk ManagementRisk Management

Software Engineering Institute (SEI) perspective:Software Engineering Institute (SEI) perspective: URLs URLs http://www.sei.cmu.edu/programs/sepm/risk/risk.mgmt.overview.html http://www.sei.cmu.edu/programs/sepm/risk/principles.html

Risk management must be continuous thru life of projectRisk management must be continuous thru life of project Risk & opportunity go hand in handRisk & opportunity go hand in hand


SEI on RiskSEI on Risk

"Risk in itself is not bad; risk is essential to progress, and "Risk in itself is not bad; risk is essential to progress, and failure is often a key part of learning. But we must learn to failure is often a key part of learning. But we must learn to balance the possible negative consequences of risk against balance the possible negative consequences of risk against

the potential benefits of its associated opportunity."the potential benefits of its associated opportunity."


Sources of Project RiskSources of Project Risk

General sourcesGeneral sources environmental (largely uncontrollable)environmental (largely uncontrollable)

external, e.g. government regulationsexternal, e.g. government regulations internal, e.g. new division VPinternal, e.g. new division VP

technicaltechnical marketmarket financialfinancial peoplepeople


Sources of Project Risk (cont.)Sources of Project Risk (cont.)

What goes wrong with projects in your environment?What goes wrong with projects in your environment? Standish top five success factorsStandish top five success factors

user involvement, management support, requirements user involvement, management support, requirements greed/understood, planning, realistic expectationsgreed/understood, planning, realistic expectations

Verzuh top fiveVerzuh top five agreed goals, planning, communication, controlled scope, agreed goals, planning, communication, controlled scope,

management supportmanagement support


Verzuh on Risk ManagementVerzuh on Risk Management

Selecting right project is business risk; managing uncertainty Selecting right project is business risk; managing uncertainty is project riskis project risk

Identifying risks – involve stakeholdersIdentifying risks – involve stakeholders Risk Profiles: Risk Profiles: questionnaire addressing expected project risk areasquestionnaire addressing expected project risk areas

Guidelines:Guidelines: industry & organization specificindustry & organization specific address both product & mgt risksaddress both product & mgt risks gauge magnitude of risk – high/medium/lowgauge magnitude of risk – high/medium/low


Verzuh (cont.)Verzuh (cont.)

Dealing with risk Dealing with risk (make a decision)(make a decision) AcceptAccept – understanding risks, consequences, probabilities, – understanding risks, consequences, probabilities,

react if happensreact if happens AvoidAvoid – change scope to avoid, accept “low risk– low – change scope to avoid, accept “low risk– low

return”return” MonitorMonitor – contingency plans ready, e.g. at DIA back-up – contingency plans ready, e.g. at DIA back-up

baggage handlingbaggage handling TransferTransfer – contract, outsource, insure (but remember win— – contract, outsource, insure (but remember win—

win)win) MitigateMitigate – work hard to reduce risk – work hard to reduce risk


Top 10 Risk Item TrackingTop 10 Risk Item Tracking

Tool for maintaining awareness of risk throughout life of a Tool for maintaining awareness of risk throughout life of a projectproject

Establish periodic review of the 10 project risk itemsEstablish periodic review of the 10 project risk items List current/previous ranking, number of times the risk List current/previous ranking, number of times the risk

appears on list over time, summary of progress made in appears on list over time, summary of progress made in resolving each risk itemresolving each risk item


Top 10 Risk Item Tracking ExampleTop 10 Risk Item Tracking Example

Monthly Ranking

Risk Item This

Month

Last

Month

Number of Months

Risk Resolution Progress

Inadequate planning

1 2 4 Working on revising the entire project plan

Poor definition of scope

2 3 3 Holding meetings with project customer and sponsor to clarify scope

Absence of leadership

3 1 2 Just assigned a new project manager to lead the project after old one quit

Poor cost estimates

4 4 3 Revising cost estimates

Poor time estimates

5 5 3 Revising schedule estimates


Expert JudgmentExpert Judgment

Many organizations rely on intuitive feelings & past Many organizations rely on intuitive feelings & past experience of experts to help identify potential project risksexperience of experts to help identify potential project risks

Experts categorize risks as high, medium, low with or Experts categorize risks as high, medium, low with or without more sophisticated techniqueswithout more sophisticated techniques


Results of Effective ProjectResults of Effective ProjectRisk ManagementRisk Management

Unlike crisis management, good project risk management often Unlike crisis management, good project risk management often goes unnoticedgoes unnoticed

Well-run projects appear almost effortless, but a lot of work goes Well-run projects appear almost effortless, but a lot of work goes into running a project wellinto running a project well

Project managers should strive to make their jobs look easy to Project managers should strive to make their jobs look easy to reflect the results of well-run projectsreflect the results of well-run projects

Duck on water – smooth on top, but underneath paddling like hell Duck on water – smooth on top, but underneath paddling like hell to keep afloatto keep afloat


EstimatingEstimating

““Project best understood by breaking it down into its parts”Project best understood by breaking it down into its parts” Work Breakdown Structure (WBS)Work Breakdown Structure (WBS)

powerful tool for doing this (not just a task list)powerful tool for doing this (not just a task list) defines the total scope of the projectdefines the total scope of the project fundamental to much of project planning & trackingfundamental to much of project planning & tracking


WBSWBS

Start at top, progressively break work down (tree structure) Start at top, progressively break work down (tree structure) into work packagesinto work packages

Roll up the packages for bottom up estimatingRoll up the packages for bottom up estimating Packages give clear work assignmentsPackages give clear work assignments For chart form of a WBS see Verzuh page 103For chart form of a WBS see Verzuh page 103 For outline (list) form see Verzuh page 104For outline (list) form see Verzuh page 104


Realistic EstimatingRealistic Estimating

Lots of reasons for poor estimatesLots of reasons for poor estimates inexperience, technical problems, changes optimists, low-inexperience, technical problems, changes optimists, low-

balling, politicsballing, politics Bottom-up cost estimatingBottom-up cost estimating

rollup the WBS packagesrollup the WBS packages Top-down or Parametric estimatingTop-down or Parametric estimating

from experience to complex modelsfrom experience to complex models


Realistic Estimating (cont.)Realistic Estimating (cont.)

Which technique is better?Which technique is better? ideally use bothideally use both early on don’t have WBS so must use top-downearly on don’t have WBS so must use top-down accuracy of top-down depends on availability/quality accuracy of top-down depends on availability/quality

of historical dataof historical data building complete WBS can be expensivebuilding complete WBS can be expensive but guesses can be even more costlybut guesses can be even more costly


Developing Project ScheduleDeveloping Project Schedule

Base documentsBase documents Project charter – start/end dates, budget Project charter – start/end dates, budget Scope statement & WBS -- what will be doneScope statement & WBS -- what will be done

Activity definitionsActivity definitions develop more detailed WBSdevelop more detailed WBS plus supporting explanations to understand all work to plus supporting explanations to understand all work to

be donebe done


Scheduling Tools & MethodsScheduling Tools & Methods

Gantt ChartsGantt Charts Critical Path Method (CPM)Critical Path Method (CPM) Program Evaluation and Review Technique (PERT)Program Evaluation and Review Technique (PERT) Time BoxesTime Boxes Critical Chain (Theory of Constraints)Critical Chain (Theory of Constraints)


Activity SequencingActivity Sequencing

Review activities; determine dependenciesReview activities; determine dependencies Mandatory dependencies: inherent in the nature of the work; Mandatory dependencies: inherent in the nature of the work;

hard logichard logic Discretionary: defined by the project team; soft logicDiscretionary: defined by the project team; soft logic External: involve relationships between project and external External: involve relationships between project and external

activitiesactivities Must Must determine dependencies to use critical path analysisdetermine dependencies to use critical path analysis


Gantt ChartsGantt Charts

Created 1800Created 1800 Standard format for displaying project schedulesStandard format for displaying project schedules

activities, durations, start/end finish dates displayed in activities, durations, start/end finish dates displayed in calendar formatcalendar format

AdvantagesAdvantages enforces planningenforces planning easy to create & understandeasy to create & understand preferred for summary/exec-level informationpreferred for summary/exec-level information

Bar chart: simplified versionBar chart: simplified version


Sample Project Gantt ChartSample Project Gantt Chart


Sample Tracking Gantt ChartSample Tracking Gantt Chart

white diamond: slipped milestone

two bars: planned and actual times


Critical Path Method (CPM)Critical Path Method (CPM)

Developed 1957Developed 1957 CPM diagram shows:CPM diagram shows:

activities, durations, start/end dates & activities, durations, start/end dates & sequencesequence in which in which they must be completedthey must be completed

Critical path for project:Critical path for project: series of activities that determines series of activities that determines earliest timeearliest time by which by which

project can be completedproject can be completed Critical path is Critical path is longest pathlongest path through network diagram through network diagram

has least (zero) slack or floathas least (zero) slack or float


CPM (cont.)CPM (cont.)

Critical path helps you make schedule trade-offsCritical path helps you make schedule trade-offs Slack or floatSlack or float : :

amount of time activity can be delayed without delaying amount of time activity can be delayed without delaying early start of dependent activitiesearly start of dependent activities


Simple Example of Determining Simple Example of Determining Critical PathCritical Path

consider following network diagramconsider following network diagram assume all times in daysassume all times in days

2 3

4

5

A=2 B=5C=2

D=7

1 6

F=2

E=1

start finish

a. How many paths are on this network diagram?

b. How long is each path?

c. Which is the critical path?

d. What is the shortest amount of time needed to complete this project?


PERTPERT

Developed 1959 for Polaris projectDeveloped 1959 for Polaris project Similar to CPM but addresses uncertainties in task Similar to CPM but addresses uncertainties in task

durationsdurations Uses probabilistic time estimates – optimistic, most likely, Uses probabilistic time estimates – optimistic, most likely,

pessimistic estimates of activity durationspessimistic estimates of activity durations Hence reduces Hence reduces RisksRisks associated with estimating associated with estimating


PERT Formula and ExamplePERT Formula and Example

PERT weighted averagePERT weighted average formulaformula:: optimistic time + 4X most likely time + pessimistic timeoptimistic time + 4X most likely time + pessimistic time

66 Example:Example:

PERT weighted average =PERT weighted average =

8 workdays + 4 X 10 workdays + 24 workdays8 workdays + 4 X 10 workdays + 24 workdays = 12 days = 12 days

66

where 8 = optimistic time, 10 = most likely time, and 24 = pessimistic timewhere 8 = optimistic time, 10 = most likely time, and 24 = pessimistic time


Selecting Scheduling ApproachSelecting Scheduling Approach

Consider project size, risk and complexityConsider project size, risk and complexity GanttGantt

senior managementsenior management smaller, less complex projectssmaller, less complex projects

CPMCPM medium size/complexity/riskmedium size/complexity/risk

PERTPERT high risk projectshigh risk projects medium to high complexitymedium to high complexity


Time Box SchedulingTime Box Scheduling

Deals with delivering in short time framesDeals with delivering in short time frames Focuses on prioritizationFocuses on prioritization Facilitator brings stakeholders together to agree on Facilitator brings stakeholders together to agree on

prioritiespriorities It’s customer–developer It’s customer–developer partneringpartnering

win-win win-win Compromise on scope to achieve early deliveryCompromise on scope to achieve early delivery


Critical Chain SchedulingCritical Chain Scheduling

Addresses challenge of meeting or beating project finish datesAddresses challenge of meeting or beating project finish dates Application of the Theory of Constraints (TOC)Application of the Theory of Constraints (TOC) Developed by Eliyahu Goldratt in his books Developed by Eliyahu Goldratt in his books The Goal & Critical ChainThe Goal & Critical Chain Method of scheduling that takes limited resources into account Method of scheduling that takes limited resources into account

when creating project schedule & includes buffers to protect when creating project schedule & includes buffers to protect completion datecompletion date

Assumes resources do not multitask as it often delays task Assumes resources do not multitask as it often delays task completions & increases total durationscompletions & increases total durations


Critical Chain (cont.)Critical Chain (cont.)

Simple view:Simple view: in critical situation, don’t try to strengthen all of the in critical situation, don’t try to strengthen all of the

links in the chainlinks in the chain focus on the weakest linkfocus on the weakest link

Some organizations view as best thing since sliced breadSome organizations view as best thing since sliced bread But does it sound like common sense?But does it sound like common sense?


Break then Case DiscussionBreak then Case Discussion

Risk Management caseRisk Management case

Guest Diane Luther (Ventana Group)Guest Diane Luther (Ventana Group)


Embracing & Managing Change Embracing & Managing Change

Change will happenChange will happen Are we prepared to deal with it?Are we prepared to deal with it?

blurred visionsblurred visions rubber baselinesrubber baselines fluctuating prioritiesfluctuating priorities

All contribute to:All contribute to: Scope creepScope creep schedule slippagesschedule slippages cost overrunscost overruns customer dissatisfactioncustomer dissatisfaction


Sources of ChangeSources of Change

CChanging players hanging players Folks change their mindsFolks change their minds Budget instabilityBudget instability Technology keeps changingTechnology keeps changing Changing competitive environmentChanging competitive environment The economyThe economy


Change Management StrategiesChange Management Strategies

Develop pro-change mind-setDevelop pro-change mind-set only 16 % Prometheanonly 16 % Promethean ““If it ainIf it ain==t broke, dont broke, don==t fix itt fix it@@ in revolutionary times, traditionalists crushed beneath in revolutionary times, traditionalists crushed beneath

tidal wave of changetidal wave of change innovation often comes from outsideinnovation often comes from outside

Learn how/when to Learn how/when to AAgo with the flowgo with the flow@@ And when to resist changeAnd when to resist change


Developing Pro-Change Developing Pro-Change MindsetMindset

ThroughThrough education & training education & training Upside-down thinking, in order to thrive in turbulent timesUpside-down thinking, in order to thrive in turbulent times Think multiple customers & stakeholders, not just oneThink multiple customers & stakeholders, not just one Use crises to change traditional attitudes & focus on new Use crises to change traditional attitudes & focus on new

ways of doing thingsways of doing things


Configuration Management (CM)Configuration Management (CM)

Resist change via bureaucracyResist change via bureaucracy Change control via CMChange control via CM

Rigorously screen changesRigorously screen changes formal process for assessing meritformal process for assessing merit major or minor impact?major or minor impact? if major goes to Change Control Board (CCB)if major goes to Change Control Board (CCB)

document changesdocument changes update baselineupdate baseline


Change Control ProcessChange Control ProcessWritten change proposal

CCB Review

Rework proposal

proposal deigned, documented, implementation schedule

CCB reviews

Proposal implemented

Rework proposal

stop

Written change proposal

stop

Rework

Rejected

Rework

RejectedAccepted in product

Accepted for impact study


Change Management (Harris)Change Management (Harris)

Accept all written change proposalsAccept all written change proposals Project team assesses impactProject team assesses impact

cost, staff, schedulecost, staff, schedule Change team* reviewsChange team* reviews

value, importance (politically weighted)value, importance (politically weighted) triagetriage add to scope, phase II, phase IIIadd to scope, phase II, phase III

* * Key stakeholders, project managerKey stakeholders, project manager


Project CommunicationProject Communication

Failure to communicate effectively often greatest threat to project Failure to communicate effectively often greatest threat to project successsuccess

Communication is oil that keeps project running smoothlyCommunication is oil that keeps project running smoothly StakeholdersStakeholders

who needs to know what, when (how often) & how?who needs to know what, when (how often) & how? constant, effective communication among everyone involved in constant, effective communication among everyone involved in

projectproject formal, informal, written, verbalformal, informal, written, verbal


Communications (cont.)Communications (cont.)

Need formal communications planNeed formal communications plan plus informal supplementation as requiredplus informal supplementation as required

Integrated with overall project planIntegrated with overall project plan Conflict is endemic to project, need skills to manageConflict is endemic to project, need skills to manage

confrontation (aka problem solving mode)*confrontation (aka problem solving mode)* compromisecompromise smoothingsmoothing forcingforcing withdrawal (least desirable in projects)withdrawal (least desirable in projects)

* project management is all about solving problems quickly & * project management is all about solving problems quickly & effectivelyeffectively


Communications (cont.)Communications (cont.)

Make assignments crystal clearMake assignments crystal clear Running meetings effectively is key skillRunning meetings effectively is key skill Individual status meetingsIndividual status meetings

spend regular, quality time with each team memberspend regular, quality time with each team member Kick-off meeting (see Verzuh)Kick-off meeting (see Verzuh)

need clear, decisive startneed clear, decisive start


Effective Meetings (Verzuh)Effective Meetings (Verzuh)

Five rulesFive rules agenda in advanceagenda in advance

everyone should come preparedeveryone should come prepared

begin/end on timebegin/end on time avoid long meetings (one hour if practical)avoid long meetings (one hour if practical)

for each agenda itemfor each agenda item pass on informationpass on information come to decisioncome to decision stay on trackstay on track

Draw people outDraw people out silence not necessarily consentsilence not necessarily consent

Record decisions & action assignmentsRecord decisions & action assignments keep on top of resulting action listkeep on top of resulting action list


Project ProgressProject Progress

Monitoring, Tracking, Controlling, Managing Monitoring, Tracking, Controlling, Managing How does a project get to be six months late?How does a project get to be six months late? Control versus RiskControl versus Risk

control – track progress, detect variances in plan, take control – track progress, detect variances in plan, take corrective actioncorrective action

Balance risk & controlBalance risk & control


Monitor & ControlMonitor & Control

Progress reportsProgress reports current period, cumulative, exception, variancecurrent period, cumulative, exception, variance Level of detailLevel of detail

activity manager – detailed, granularactivity manager – detailed, granular project manager – all open activitiesproject manager – all open activities senior management – graphical, exception, milestonessenior management – graphical, exception, milestones use WBS chartsuse WBS charts

Graphical reports – Gantt, milestone chartsGraphical reports – Gantt, milestone charts


Problem Tracking & ManagementProblem Tracking & Management

Daily – project manager tracks progress against schedule & Daily – project manager tracks progress against schedule & problems problems

Successful problem managementSuccessful problem management identify before happen or at least at first symptomsidentify before happen or at least at first symptoms put recovery plans in place – don’t delayput recovery plans in place – don’t delay

Problem management processProblem management process identify & determine criticality (80-20)*identify & determine criticality (80-20)* assign an ownerassign an owner document recovery plandocument recovery plan Monitor progress, daily if criticalMonitor progress, daily if critical

* prioritize* prioritize


Measuring Work PerformanceMeasuring Work Performance

PM “jokes”PM “jokes” last 10% of project takes 50% of the worklast 10% of project takes 50% of the work projects stuck at 90% for monthsprojects stuck at 90% for months

Problem not sudden insurmountable obstacles – it’s inaccurate Problem not sudden insurmountable obstacles – it’s inaccurate measurementmeasurement

Percentage of work completed too open to subjectivityPercentage of work completed too open to subjectivity Cost & schedule are 2/3 of cost, schedule, quality equilibrium, Cost & schedule are 2/3 of cost, schedule, quality equilibrium,

so we measure themso we measure them


Integrated Cost & Schedule ControlIntegrated Cost & Schedule Control

Graphical approachGraphical approach Compare actual against planned /projected costs ($)Compare actual against planned /projected costs ($) ProblemsProblems

but $ spent don’t indicate actual work completedbut $ spent don’t indicate actual work completed Accounting information often lagsAccounting information often lags

Hence Earned Value approachHence Earned Value approach determine value of work completeddetermine value of work completed


Earned Value Chart for Project Earned Value Chart for Project (After Five Months)(After Five Months)


Earned Value ApproachEarned Value Approach

Developed in 1960s for large defense projects; now used in smaller Developed in 1960s for large defense projects; now used in smaller projectsprojects

50-50 rule assumes task 50% complete when started, 100% when 50-50 rule assumes task 50% complete when started, 100% when completedcompleted

Compare earned value to planned costsCompare earned value to planned costs Collecting dataCollecting data

large projects employ cost account managerslarge projects employ cost account managers for smaller projects, use 50-50 rule, take advantage of for smaller projects, use 50-50 rule, take advantage of

milestones, or can guess using experiencemilestones, or can guess using experience Limitations of earned valueLimitations of earned value

availability of accurate, timely dataavailability of accurate, timely data educational; need organizational understandingeducational; need organizational understanding


OutsourcingOutsourcing

Control costsControl costs Focus on core workFocus on core work Expand resourcesExpand resources Underlying rationale economicUnderlying rationale economic

bigger no long betterbigger no long better replaced by lean and meanreplaced by lean and mean focus on core activitiesfocus on core activities with outside resources to cover auxiliary with outside resources to cover auxiliary

goods/servicesgoods/services


Outsourcing (cont)Outsourcing (cont)

Outsourcing is part of project manager’s toolkitOutsourcing is part of project manager’s toolkit contracting skills essentialcontracting skills essential motivating staff who donmotivating staff who don==t work directly for yout work directly for you strongest motivator is opportunity for self growthstrongest motivator is opportunity for self growth

Outsource all or major part of projectOutsource all or major part of project ““Don’t underestimate risks of outsourcing”Don’t underestimate risks of outsourcing”


Outsourcing (cont)Outsourcing (cont)

ContractsContracts Fixed-price contracts, OK for routine Fixed-price contracts, OK for routine

implementations, not for high risk developmentimplementations, not for high risk development Cost-plus contracts, contractor paid costs plus a fee Cost-plus contracts, contractor paid costs plus a fee

(profit), variations to reduce excessive expenditure(profit), variations to reduce excessive expenditure Cost-plus-fixed-fee, fee independent of costs, Cost-plus-fixed-fee, fee independent of costs,

attractive to contractors in high risk projectsattractive to contractors in high risk projects cost-plus-incentive-fee, carrot and stick, incentive to cost-plus-incentive-fee, carrot and stick, incentive to

keep down costs keep down costs cost-plus-award-fee, award pool & level of award by cost-plus-award-fee, award pool & level of award by

committeecommittee


Contracting ProcessContracting Process

Source selection, competitive bid, sole source, informal selectionSource selection, competitive bid, sole source, informal selection RFP provides bidders with format for proposalRFP provides bidders with format for proposal

for software projects usual to include comprehensive for software projects usual to include comprehensive Statement of Work (SOW)Statement of Work (SOW)

RFP for major project can be project in & of itselfRFP for major project can be project in & of itself Evaluating bidsEvaluating bids

establish evaluation criteria, (cost only one factor)establish evaluation criteria, (cost only one factor) best & final offer from short-listed biddersbest & final offer from short-listed bidders


Contracting Process (cont)Contracting Process (cont)

Contract negotiationsContract negotiations rights, penalties, payment schedule, fee structure, schedule of rights, penalties, payment schedule, fee structure, schedule of

deliveriesdeliveries Post-awardPost-award

monitoring, regular say monthly reviews, attention to cost & monitoring, regular say monthly reviews, attention to cost & schedules variances, milestones, need change control processschedules variances, milestones, need change control process

Acceptance & handoverAcceptance & handover customer determines if terms & conditions of contract metcustomer determines if terms & conditions of contract met differences rooted in interpretationdifferences rooted in interpretation problems often due to parties not having resolved different problems often due to parties not having resolved different

perspectives, others to dynamic nature of projectsperspectives, others to dynamic nature of projects


Joint Project Planning (JJP) Joint Project Planning (JJP)

Variety of joint planning processesVariety of joint planning processes JPP (Wysocki chapter 11)JPP (Wysocki chapter 11) Structured sessionStructured session

facilitator essentialfacilitator essential key stakeholder involvedkey stakeholder involved

Objective clear & simpleObjective clear & simple develop project plan; negotiated between requestors & develop project plan; negotiated between requestors &

providersproviders


PM Policies & PracticesPM Policies & Practices

Consistent policies & practices throughout organizationConsistent policies & practices throughout organization SEI:SEI:

consistent approach to managing project consistent approach to managing project 75% cost 75% cost reductionreduction over different practices for each project over different practices for each project

consistent management practices essentialconsistent management practices essential development practices can varydevelopment practices can vary


PM Policies & PracticesPM Policies & Practices

One policy does not fit all projectsOne policy does not fit all projects Different practices for different types of projects, e.g.Different practices for different types of projects, e.g.

small, medium, largesmall, medium, large small, internal, externalsmall, internal, external practices for above should become progressively practices for above should become progressively

more rigorousmore rigorous


Project Support OfficeProject Support Office

SupportSupport is operative word is operative word Develops, documents, promotes PM policies & practicesDevelops, documents, promotes PM policies & practices Admin support (paperwork)Admin support (paperwork) Consulting, mentoring on planning etc.Consulting, mentoring on planning etc. Organizational PM awareness, trainingOrganizational PM awareness, training

VerzuhVerzuh


Project Support Office (cont.)Project Support Office (cont.)

Support unit to project managersSupport unit to project managers PM standardsPM standards Manage communicationsManage communications Admin supportAdmin support Provide trainingProvide training Mentoring roleMentoring role Facilitate deployment (of PM staff)Facilitate deployment (of PM staff)

WysockiWysocki


Organization WideOrganization Wide

Today many Today many project-based enterprisesproject-based enterprises PM policies & practices not just for active project participantsPM policies & practices not just for active project participants Increase PM competencies throughout organizationIncrease PM competencies throughout organization

management, employees, contractorsmanagement, employees, contractors Spectrum of PM trainingSpectrum of PM training

Everyone should comprehend fundamentalsEveryone should comprehend fundamentals


Cultural ChangeCultural Change

Process change relies cultural changeProcess change relies cultural change Not an easy task due to people issuesNot an easy task due to people issues Takes years rather than monthsTakes years rather than months Project support office staff should be evangelistsProject support office staff should be evangelists Boeing:Boeing:

Experiment, learn from users what adds value & what Experiment, learn from users what adds value & what does not . . .does not . . .


Project ClosureProject Closure

““Those who cannot remember the past are Those who cannot remember the past are condemned to repeat it.”condemned to repeat it.”

George SantayanaGeorge Santayana


Project ClosureProject Closure

Too often avoidance rather than effective closure; recallToo often avoidance rather than effective closure; recallSix Phases of a ProjectSix Phases of a Project1)1) EnthusiasmEnthusiasm2)2) DisillusionmentDisillusionment3)3) PANICPANIC4)4) Search for GuiltySearch for Guilty5)5) Punishment of InnocentPunishment of Innocent6)6) Praise & Honors for Non-ParticipantsPraise & Honors for Non-Participants


Effective ClosureEffective Closure

Ensure all deliverables installedEnsure all deliverables installed including documentationincluding documentation

Stakeholder acceptance of deliverablesStakeholder acceptance of deliverables Post-implementation review/auditPost-implementation review/audit Celebrate successCelebrate success


Document The Project Document The Project

Project review & evaluationProject review & evaluation Final Deliverable – evaluation documentFinal Deliverable – evaluation document

Summary of project historySummary of project history project successesproject successes Failures/problemsFailures/problems Compare estimates to actualCompare estimates to actual

reasons/observations on differencesreasons/observations on differences

What should we learn?What should we learn? Do and not do next projectDo and not do next project


Post-Implementation AuditPost-Implementation Audit

Evaluate project’s achievements against planEvaluate project’s achievements against plan budget, deadlines, specifications, quality of budget, deadlines, specifications, quality of

deliverables, client satisfactiondeliverables, client satisfaction Six questions:Six questions:

1.1. Project goal achieved?Project goal achieved?2.2. On time, within budget & per specs?On time, within budget & per specs?3.3. Client (stakeholder) satisfied?Client (stakeholder) satisfied?4.4. Business value realized?Business value realized?5.5. PM lessons learned?PM lessons learned?6.6. What worked, what didn’t?What worked, what didn’t?

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