Leading New Product Development Projects

An Eagles Eye View by Marty Wartenberg for LAMP 2014

Part 1 Topics

• Introductions and purpose• You as the audience for my sessions• Project success or failure criteria• Project Management for various

industries • New Methods in Project Management• Case study introduction• Open Discussion

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Excellence in Project Management

Assumptions and Scope• Most, if not all of you

know the basics and fundamentals of PM well enough

• If you plan to really run big projects, sign up for the UCSD PM Classes

• At some point in the not too distant future, you may be managing project or program managers

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Project Management: Official Definition

A project is a temporary endeavor undertaken to create a unique product or service. It implies– a specific timeframe– a budget– unique specifications – working across

organizational boundaries

Project Management: Unofficial Definition

Project management is about organization

Project management is about changing & influencing people'sbehavior

Project management is about decision making

Project management is about creating an environment conducive

to getting important projects done!

Is there a standardproject framework?

Project Management Competencies:

The Project Management Basic Skill Set

5 Project Processes Initiating Planning Executing Controlling Closing

9 Knowledge Areas Integration Scope Time Cost Quality Human Resources Communication Risk Management Procurement Stakeholder Management

General Management Skills Leadership Financial Customer Orientation Politics

Subject Matter Expertise Financial Acumen Technical Software

When do you need to really know how to manage projects?

Probably not!

1. Really small and short

2. Only you are on it

3. Internal use only

4. Not much visibility

5. Few changes

6. Does not matter how long it takes or if it gets finished

You Probably should!

1. Long term (over 3 months)

2. Multiple people

3. Multiple departments or functions

4. Changes likely

5. Outsiders involved

6. High Visibility

7. Some body cares that it gets done correctly

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Why Project Management?

• Today's complex environments require ongoing implementations

• Project management is a method and mindset…a disciplined approach to managing chaos

• Project management provides a framework for working amidst persistent & constant change

The Leaders Role From The Top

• Create the Vision for the organization• Determine the strategic goals of the

organization• Select the strategy for achieving these goals• Define the success criteria for each strategy• Assign the “right” people• Communicate the vision and purpose• Provide help when necessary

Project Team Member Roles and Missions

• Create the tactics necessary to meet the over all strategic goals

• Working with the “boss” create a system in which you can select the “right” projects and assign priorities based on all factors of importance (portfolio management)

• Establish the base line criteria for each tactical project• Monitor and Control on-going work to ensure meeting

project success• Take corrective actions when necessary• Escalate issues when the situation is beyond your control

Common Project Management Issues

• Alignment of projects to organizational mission, goals and objectives

• Resource conflicts; being spread too thin

• Organization: traditional vs. a matrix, and how to get things done when you are not in control

• PM role; Supervisor of many, but manager of none.

• Managing smaller projects and keeping track of them

• Being organized when organization is not your greatest strength

Activity: chart what has worked well & what hasn't in your company.

In Groups, spend 15 minutes discussing what has worked well… what hasn't when it comes to managing development type projects in your organizations

Chart + / -

Marty’s Score Card for Project Success

Initiation and Planning Phase (score 10% for each Yes)

1.Is the PM involved in the initial project selection and sizing?

2.Is at least 50% of the team selected by the PM based on competencies and personal traits?

3.Are the project requirements developed by the team and SME’s?

4.Is at least 75% of the team co-located?

5.Does your project have some priority & management support?

Execution including PM&C (score 10% for each Yes)

6. Do you have a reasonable change control process with the ability to re-plan and re-baseline based on approved scope changes

7. Do you have a monitoring and control system similar to EVPM in place?

8. Does the project manager have the authority to take corrective actions to keep the project on track?

9. Does the project have sufficient priority to maintain the staffing level?

10. Have you defined the metrics that would allow for project completion with agreement from stakeholders?

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A score of less than 70% is a pretty good indication that your project will fail.

Ranks of Project Failure

1. Challenged (Standish Group Chaos report) – Fail to deliver complete functionality, sufficiently over run and late to make stakeholder unhappy, but not enough to fire the project manager or cancel the project.

2. Death March or Zombie Project (Ed Yourdon) - It just keeps going and project staff and managers either die or burn out and appear to be alive, but the project will never end despite all the prayers

3. Runaway Projects – (R. Glass) Almost but not quite a complete disaster. The team is destroyed and the organization is severely damaged and at some point, we just say we are done and claim victory.

4. A Galloping Gertie Project (Jeffrey Pinto) – A complete and unmitigated failure that is so public that you can not hide. Careers, lives and organizations are destroyed.

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THIS and NOT THIS

Why Projects Succeed!

• Project Sponsorship at executive level

• Good project charter (Start it right!)

• Strong project management

• The right mix of team players

• Good decision making structure

• Good communication

• Team members are working toward common goals

Packers coach (Leader) Mike McCarthy talks about his winning game plan and QB

Aaron Rodgers (PM)

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Leadership Team Sets the Project Success and Failure Criteria

• Definitions of Success• Criteria for consistently

successful project management

• Role of the Executive team to ensure or improve the likelihood of success

• Your individual roles, mission and responsibility

Saru mo ki kara ochiru (even monkeys fall from trees).

-Japanese saying

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Primary Causes of Project FailurePre-Startup Activities

• Unclear or unrealistic goals and objectives• Bad Estimating in any one of the three variables• Selection of Project Manager and Team• Lack of corporate sponsor or champion

“If you always do what you always did, you always get what you always got.

If you don't want what you got, don't do what you did.

If you like what you got, do it again”

Anon.

The PM's plight

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Planning Phase

• Goal and Objectives Setting

• Developing Exit or Success Criteria

• Good Project Resource Constrained Scheduling

• Including Key Stakeholders in planning (management?)

• Communicating the Plan

• Getting Buy-in for the Plan

• Considering Potential Risk Events

• Dealing with priority issues

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Implementation Phase

• Controlling and Managing Scope Creep

• Controlling Features Creep

• Manage invention and new approaches

• Watching for New Risks during life of the project

• Not Monitoring Key activities

• Lack of Control when Deviations occur

• Finishing the last 10%

• Priority and Portfolio issues

• Not Sharing Lessons Learned

Lets look at one of your home grown tracking tools

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Role of Executive Management

• Initiate or support a project culture• Reward and Reward Not* environment• Portfolio management and a mechanism for prioritizing projects and phasing

projects• A mechanism for allocating scarce resources and resolving inter-project

conflicts• Have developed a criteria for selection or de-selection of project managers• Create a climate in which lessons learned are normal and not to be feared

during the project life-cycle• Be available as champions for selected projects and provide support as

necessary• Sponsor and fund the success party at the end of the project (give

credit when applicable and deserved)

* Reward or Reward Not is used in lieu of penalties or punishment

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Top Management Expectationsfrom Project Managers

• Results/Accountability with minimum organizational interruption

• Effective Reports and Information

• Recommendations – Based on evaluation of alternatives

• Interpersonal Skills

• Self discipline

• An omnivorous capacity to analyze and problem solve & prevent

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Responsibility of the Project Manager

• Take personal responsibility & accountability for all aspects of the project

• Always provide accurate and honest inputs regarding the status of the project

• Escalate problems early when they are beyond the ability of the project team to solve without additional help (beyond the scope of their charter)

• Not bother management with trivial issues • Handle internal project issues and problems

to the extent possible

Who is the project manager?

with overall responsibility to deliver projects that are…

Within budgetOn schedule andWithin Scope

The individual…

How is a project manager selected?

1. What traits are needed?

2. What competencies?

Trait is defined as a personal characteristic such as a physical or personality feature.

Competency is defined as something you can learn from a book, a class or watching others. Learning to use MS Project, or to do risk analysis are examples.

Activity: chart the characteristics / skills of a project manager.

In Groups, spend 15 minutes discussing the characteristics &skills of a successful project manager as viewed by your company.

Chart Skills &

Characteristics

What are the must have skills?

1. Clarity and immediacy of communication

2. Ability to work with a wide range of people

3. Successful experience running this type of project

4. A self starter who can provide a climate in which team members can be motivated

5. Understands the technology or business area of the project

6. Is well organized and pays attention to detail

7. Can see how the project fits within the “big” picture

• Is pleasant to work around

• Has a good sense of humor

• Understands how to use project software

• Isn't too busy doing something else

• Brings cookies to meetings

• Able to coach and mentor

What are the nice to have skills?

The Vision Thing

“Creating a vision for the project that is sufficiently compelling to get a bunch of people sufficiently motivated towards its achievement”DSMC and PMI Survey

People will put in the necessary effort to achieve something that they perceive as worthwhile

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Defining Deliverables

• Outcome or exit or success criteria

• Level of adequacy • Form of deliverable• Plan time for some

rework

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Resource Planning

• You are usually “borrowing” parts of people, including yourself

• Impacts of multi-tasking and its inefficiencies

• Some people take longer to do things

• Some people may not do things as well

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Measuring and Achieving Results

• Establish success criteria• Monitor and measure performance• Analyze “short falls”• Take corrective action & revise plans as

necessary

.

What is a project

life cycle and why should I

use it?

• The phases that define the beginning and end of a project

• The points at which sign-off is (generally) required

• Defined to provide better management control and review at each phase completion

• A collection of generally sequential project phases whose name and number are determined by the control needs of the organization

• Planning and resource allocation based on life cycle model selected

It is not just a pretty picture, but a model

of how the organization wants projects structured

and managed.

Life-Cycle Concepts

IDEAS

UPGRADES

PRODUCT

BUSINESS PLAN

(Start) (Do) (Finish)

Initial Phase

Intermediate Phase

Final Phase

Operations Divestment

Samples from other industries

Hybrid Organization Structure

Special Project Office

Various Organization Structures

Functional Organization

Skunk worksPhantom worksTiger TeamsSpecial Action TeamsDragon TeamsHPT’s JDIT’sNew Dev teams iPT’s and IPPT’s

Role of a PMO in a Matrix or Hybrid Organization

• Establish and maintain priorities• Provide standards, methods

processes and help to project teams

• Maintain organizational capacity and help determine assignments based on needs and priorities

• Provide over sight and audit functions

• Train and certify project managers• Select and maintain project tools

Project Management Methodologies

• Seat of the pants (lightweight)• Agile Methods (Middle weight)• PMBOK, PRINCE2, NASA Lab,

Mil Type (Heavy weight)

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Aerospace Projects• Heavyweight• Structured• Requirements defined by

SOW and Spec’s• Project Planning and

structure defined by Mil Spec or Company Process Manuals

• Large and usually part of a program

• Long term and a lot of changes over time

Life Science Projects• Long term• Complex with a large

number of functional specialties

• Reluctant to accept standard PM practices

• High failure rates and delays in completion

• FDA development guidelines usually impact the planning process.

• Lab and Mfg. best practices impact project activity

The Edwards SAPIEN Transcatheter Heart Valve

with the RetroFlex 3 Transfemoral System

Commercial Development Projects• System types

(Hardware and software)

• Heavily influenced by early work by HP, 3M and Xerox in terms of development methods and use of phase gate methodologies

• Medium failure rate and rapid development becoming the focus

Construction Projects• Very high Success rate• Well planned and

documented• Project Manager usually

highly skilled• Project teams selected

carefully and trained• Very good in terms of

exit or success criteria

October 2009, Fluor was awarded the Project Management

Institute's (PMI's) "2009 Project of the Year Award" for work performed on the Newmont project. The PMI award is the organization's highest honor and was supported by Newmont's project manager. Also, in 2009, Power magazine named the Newmont power project a "Top Plant" for its many innovations and state-of-the-art technologies

Determining PM Methodology

• How much project management is enough?

• Heavy weight or light weight approach to planning?

• The more complex, the more PM required

• Simple low complexity projects minimize the extra PM work

Applied Methodologies

• For each of the industries at your table – select the most appropriate approach to PM

• What are the unique characteristics that the focused PM process must address

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Software Development

Agile Project Tools

• Kanban for Planning• Sprints • Burn Down Charts• Retrospectives• Range Estimating• Stories for Requirements• Daily Stand up Meetings

• Product Owner Involvement

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Critical Chain Project Management

• Eli Goldratt – the Goal and Critical Chain

• Impact of sharing resources on the critical path

• Impact of multi-tasking for knowledge workers

• Concept of buffers

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Questions and Open Discussion