3 organizational paradigms gantt head webinar
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TRANSCRIPT
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Three paradigms managers need to ensure project success– Visibility, – Control, and – Optimization
Key points1. Managers can clearly communicate what
needs to be done 2. You can spot early warning signs before
projects fail3. Managers can ensure best practices are
followed and critical steps are not overlooked
Today’s Webinar
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Visibility, Control & Optimization by “Management by Walking Around”
Why did we ever do this?
Can we still manage to do this?
Can we do it virtually?
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WHY DID WE EVER MANAGE BY WALKING AROUND?
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“Active” Management
MBWA Devised by Bill Hewlett & David Packard
Originally conceived as a morale booster
Hewlett & Packard were nerds bytraining, so theystudied the effects
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Effects of MBWA - Morale
Never/Rarely 1-2 Times/Month
Weekly Regularly50%55%60%65%70%75%80%85%90%95%
100%
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Effects of MBWA – Time on Task
Never/Rarely 1-2 Times/Month
Weekly Regularly50%55%60%65%70%75%80%85%90%95%
100%
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Effects of MBWA - Performance
Never/Rarely 1-2 Times/Month
Weekly Regularly50%55%60%65%70%75%80%85%90%95%
100%
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Effects of MBWA - Managers
HP saw that managers who more frequently engaged their teams were also re-evaluating decisions and reprioritizing risks/issues earlier in the project
Managers are in the loop, gaining multiple perspectives all the time
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CAN WE STILL MANAGE BY WALKING AROUND?
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One Thing Remains True:Projects Must Succeed1988: Bank of America loses $2.6 Billion in
trust accounts when migrating enterprise systems
1997: Oxford Health Plan’s shares fall 62% when executives realize their automatic billing system has a 15 month backlog for claims processing
2007: US Airways attempts to implement a new booking system – resulting in 1,220 delayed/cancelled flights (the most since 9/11, not counting volcanic ash)
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Bank of America Project reviews were submitted
by team leads weekly
Estimates vs. Actuals were always good
Finished primary development and moved to test ahead of schedule
Test cases (particularly for load) were missing – A surprise to management, but not development
BofA loses $2.6 Billion in trust accounts when migrating enterprise systems
Project lacked Visibility, Control, and Optimization
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Oxford Christmas, 1996 - Delivered new
“Pulse” processing system on time
Big-Bang style move took place on New Year’s, with the Financial Times labeling automated billing a “breakthrough success”
When subpoenaed, staff from all four development teams indicate that they had no confidence the new system could manage the load, but were never asked
Oxford Health Plan’s shares fall 62% when executives realize their automatic billing system has a 15 month backlog for claims processing
Project lacked Visibility, Control, and Optimization
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US Airways
From close of businessFriday night to start ofbusiness Saturday morning, implementation teams report successful installation of new booking system at 100% of US sites
One of their biggest IT successes ever
When he appeared at the hearing that followed, the head of resources and infrastructure said “No one ever asked me about the move.”
US Airways experiences 1,220 delayed/cancelled flights (the most since 9/11, not counting volcanic ash)
Project lacked Visibility, Control, and Optimization
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CAI We pride ourselves on delivering
projects on-time at a fixed price
Based on our estimating methodology, our track record is very strong
Eventually a project came along that was managed to the letter, but we found out close to delivery time that we had problems – our SMEs were aware, but our project manager did not have access to them
We were beginning to make mistakes. We quickly needed to get a communications, visibility, and enforcement system in place
Project lacked Visibility, Control, and Optimization
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Various Data Sources Spreadsheets E-mail Project planning tools Portfolio management tools Etc.
Technology Most tools are not really oversight Tools focused on where you have
been /where you are. . . Not where you will be
Process Best practices are still maturing Priority is to complete projects. . .
Not to improve the Management process
Why Aren’t We There Today?(Management Challenges)
Large teams of people with distributed authority
Management Project teams Business management Outside experts Consultants PMO Review boards Etc.
Communications Status meetings Phone calls Presentations Etc.
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MANAGING BY (VIRTUALLY) WALKING AROUND
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Ever Have Surgery?
Does each doctor and nurse decide how to perform a procedure?
HAS Visibility, Control, and Optimization
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Ever Fly in a Plane?
Does every pilot decide what is the best procedure to take off and land?
HAS Visibility, Control, and Optimization
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Ever Buy a House?
Do you take the sellers word for it?
HAS Visibility, Control, and Optimization
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Decomposing MBWA
What makes our best PMs that good?
They know the standards we expect
They know what to track
They know what questions to ask
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Take Away #1Clearly communicate what needs to be done
Ask appropriate questions:– By type of project– By phase of project– By role responsibility– On schedule
Put it into a tool thatis accessible anywhere
Capture performance expectations
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How We Communicate What Needs to be Done
Role based
Rule Based
Electronic checklists
Weekly assessments
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Take Away #2 Spot early warning signs before projects fail
The best managers can understand what they see/hear
Codify the experience of thebest managers
Understand how they interpret data
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How We Spot Early Warning Signs of Failure
Predictive analytics
Based on published IT industry studies of project performance research– Leon Kappelman– Mary Sumner– Robert Glass– Mark Keil
Four Key Measures:– RPL – Rework Prevention Level– SMART – Clarity of Task Assignments (Specific, Measurable,
Accountable, Relevant, Timely)– SMPL – Senior Management Participation Level– PAL – Process Adherence Level
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Predictive Analytics
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Take Away #3 Ensure best practices are followed and critical steps are not overlooked
Collect data on the behavior you want to be followed
Report on compliance
Make this behavior visible
Take action on what you see
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How We Ensure Best Practices are Followed and Critical Steps are Not Overlooked
Via our Automated Project Office we ensure that the project’s cost, scope, schedule and risk profile are fully developed, documented and agreed upon by all stakeholders. We verify that the project plan is feasible from the point of view of the team charged with the work.
Stage Gating
Predictive Analytics
Scorecards
Weekly assessments
Dashboard drill-down
Earned Value
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Stage Gating
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Scorecards
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Other Dashboards Providing Visibility
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With Drill Down Capability
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Summary
Benefits• Early operational
insight to enable risk mitigation
• Effective control and governance
• Increase likeliness of success
Three take-aways:1. Clearly communicate what
needs to be done 2. Spot early warning signs
before projects fail3. Ensure best practices are
followed and critical steps are not overlooked
Project success depends on a manager’s ability to retain visibility and control of the work force to optimize projects for success.
Paradigms needed to ensure success1. Visibility, 2. Control, and 3. Optimization
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Thanks for attending !
For questions or for more information:[email protected]
610-530-5230 www.CAIBuzz.com