logikal projects – performance management specialist the ‘i’ word integration of management...

LogiKal Projects – Performance Management Specialist

The ‘I’ WordIntegration of Management for Projects and

Programme

What does Integration mean and why should we worry about it?

Andrew Hill – LogiKal Projects

LogiKal Projects – Performance Management SpecialistLogiKal Projects We will make your Project Controls work

LogiKal Projects – Perth8th Floor, 41-43 St Georges Tce, Perth 6000+61 8 6140 2577

Email: [email protected]: www.logikalprojects.co.ukTwitter: @LogikalLtd

LogiKal Projects – Brisbane320 Adelaide St, Brisbane 4000, QLD+61 7 3182 1179


LogiKal Projects – Hong Kong9th Floor, CRE 303 Hennessy Rd, Wan Chai+852 8197 8088


LogiKal Projects - London27-29 Cursitor Street, London, EC4A 1LT+44 207 404 4826


LogiKal Projects – Performance Management SpecialistWho we are

• Specialist project management organisation• Focus exclusively on • Delivering, integrating and operating Project Controls• Helping organisations to use Project Controls to achieve better

outcomes through Performance Management

• Working both client and contractor side• Believe in solutions focusing on 3 dimensions – People /

Process / System• Balancing solution investment to risk / opportunity


What do we mean by it?Is integration a good thing?Integration management is a collection of processes required to ensure that the various elements of the projects are properly coordinated.

Management integration is how individuals and teams work together in order to secure the outcomes from the project.

LogiKal Projects – Performance Management SpecialistQuestions – Your view

Question 1Does integration between clients and contractors generally work well to secure good project outcomes?Question 2In your experience are the disciplines of Scope Management, Schedule Management, Cost Management and Risk Management generally set up to work well together?Question 3How much waste to you believe exists on projects which could be addressed by better management capabilityA) 0% B) 5% C)10% D) 20% E) 30% F) >30%


Complexity

Unc

erta

inty

Complex Interfaces Many dependencies

Multiple parties Political influence

Lack experience

Non-aligned parties

Changing parameters

Inherent uncertainty

When to invest in Management Integration


Client Organisation

Contracting OrganisationTier 1

Funders

PM Organisation

Design / Engineering

Client OrganisationClient Organisation

Client OrganisationStakeholders

Stakeholders

Tier 2 Tier 2 SupplierSpecialist Specialist

Tier 3Tier 3

Tier 3

SupplierSupplier

Supplier

Overall Project Structure

Why Projects are never easy !

LogiKal Projects – Performance Management SpecialistWhat does Management Integration Mean

Shared Objectives for the Project

Shared understanding of how objectives are to achieved

Shared method of measuring and reviewing performance

Shared tools and information

Shared resources

Incr

easi

ng

Inte

grati

on m

atur

ity

LogiKal Projects – Performance Management SpecialistIntegration 1 – Total solution


So how do we achieve Management Integration?

LogiKal Projects – Performance Management SpecialistFIRST – Align the people!!

• Open culture• Shared objectives for the

project• Shared incentives• Identifying with the

project• Shared communications

platform• Intranet• Newsletters• Project portal

• Trust

• Fear of exposing issues• Contract / commercial

focus• Objectives not aligned• No skin in the game for

project outcome• Islands and silos• Mistrust

LogiKal Projects – Performance Management SpecialistGetting people alignment

• Tuckman’s model applies• Client organisations generally need to lead• Needs time investment – and committed leadership• Being ‘cool’ to be in the team• Reinforcing team behaviours• Explicit – get it out there – everyone needs to know• Beware of LIP SERVICE• Deal with negative people

• When your have it – RECOGNISE THE VALUE OF KEEPING IT

Forming Storming Norming Performing

LogiKal Projects – Performance Management SpecialistQuestions

Question 1Are you proud of the organisation you work for?Are you proud to be working on the project(s) you are working on?Question 2Where interests conflict between your organisation and the project(s) you work on do you:

A) Push to maximise the position for your organisation?

B) Favour the best outcome from the project?C) Try to achieve compromise?

LogiKal Projects – Performance Management SpecialistTHEN - Align the Processes

Requirements/Scope Mgmt.

Schedule Mgmt. Cost Mgmt. Risk Mgmt.

Performance Measurement Baseline (PMB)

Change Mgmt.

Current Plan

Performance Measurement

Integrated Baseline Review

Performance Management

Assurance Framework

Effective project controls have their foundation in sound, workable and integrated processes

LogiKal Projects – Performance Management SpecialistAligning the processes with each other

Cost RiskSchedule

Change

Cost Schedule Risk

Change

• Bringing the processes together• Dealing with issues and changes

holistically

LogiKal Projects – Performance Management SpecialistAligning processes between organisations

• Heart and minds• Someone has to lead – usually the client• Employers requirements (in detail)• Require that best practice is adopted• Validation and assurance around response• Consequence for non-observance• Monitor – KPI’s

• Balance the reporting needs of the client with those of the participating organisations

LogiKal Projects – Performance Management SpecialistSystems

Requirements Mgmt.

Estimating ScheduleManagement Cost Management Risk Control

Earned Value Analysis Contract Management ChangeManagement

Issue TrackingPerformanceAnalysis

ManagementReporting Forecasting

Actual cost capture

Structured links and data flow – process only once

Overall data schema designed to minimise re-keying / manual intervention

Common / aligned data coding Aligned timetable Robust data integrity rules Data owners / guardians

Advantages of well integrated systems:• Faster processing• Allows more time for analysis /

action• Cheaper to operate

LogiKal Projects – Performance Management SpecialistGetting the Systems Working Together

EVMSBAC

ETC/EACMR

PlanningStart/End Dates

% CompleteLow Level Resource

Forecasts

FinancialsClient SpecificActual Costs

Accruals

Reporting/AnalyticsQlikview

Monthly Reports Data Quality Analysis Performance Trending Client Reporting

RiskPre/Post assessment

Actions/Status

Change Requests

WBS/Activity LinkModifies current schedule

activities for mitigation actions

WP/Structure/tasks – Initiate assessments or BL change

WP/Structure, Rolled Up ResourcesTime-Phased Forecast

WP/Structure, Approved Change IDsSummary approved values for validation

WP/Structure, Authorised Cost Accounts

Lock/Unlock Charge Codes

WP, Cum Actual Cost

Risk Information For Reports

Activity Details for analyticsOfficial Budget Data/EVM DataPerformance Reporting

Change ControlMultiple Options

Change IDsWorkflowTracking

LogiKal Projects – Performance Management SpecialistVertical Integration of Data

Client / Owner

Contractor

Low / No Integration

Client / Owner

Contractor

Data Exchange

Client / Owner

Integrated / Systems

Contractor

Single Team

Increasing Integration

• No alignment of systems• Hard copy / flat file transfer of

information• Client and contractor may use

different tools• May work to different timetables• Client may have low visibility of

data managed by contractor

• Formally structured data management requirements

• Information exchanged through file exchange

• Organisations may align timetables

• Fully integrated systems with shared data

• Full visibility from client of contractor information

• Data ownership managed through security profiles

• Common structure processes timetables

• Fully integrated working in a single team

• All core project management data managed in a single shared systems infrastructure

• Fed from supporting client systems

• One version of the truth

LogiKal Projects – Performance Management SpecialistInfluences on level of integration

• Capability / to manage client side• Clients with more mature controls capability tend to be

demanding more integration

• Trust – avoiding own goals• Exposing performance issues• Impairing commercial position

• Investment• Reluctance to invest in integrated systems• IT system restriction

LogiKal Projects – Performance Management SpecialistWhat is the right level of integration to aim for?

• Depends on:• Level of risk in prospect

• Cost benefit analysis

• Capability of organisations to integrate• Length of project

• Invest properly up front – once ‘in flight’ it is hard to get the focus – and hard to catch up• Balance integration with complexity• Say L5 vs. L8/9 in WBS• Cost capture at a workable level

LogiKal Projects – Performance Management SpecialistWhy invest? Business case for integration investment.

• Pay off mainly based on more effective management• BUT improvements hard to evaluate precisely• Evidence is that they are substantial• Unlikely to perform well without it

• Efficiency benefits:• Efficient data transfers save time and cost• Avoiding ‘man marking’• Reducing rework


Questions?

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