project management dynamics
DESCRIPTION
synergy between BSC and Project / organisation's dynamicsTRANSCRIPT
BV
BA
03-23-05December 2012
Project management : BSC & dynamic organisations
Presented by Jan Biets
[email protected] +32(0)477 32 90 11 Mechelen - Belgium
page 1 • BSC & Dynamics
Project management Dynamics December 2012
BV
BA
Project management dynamics
An approach, together with BSC (balanced scorecards), metrics, and (graphical) reporting, to improve the outcome and quality of your strategic projects/programs.
Project management Dynamics December 2012
BV
BA
Project, a dynamic organisation
Projects do have a balance, with several dynamic factors interfering on each other;• Cause and effects;• Enforcing factors
• On a positive manner • On a negative manner
• Are managed by stakeholders: (according applicability:) project organisation, owner, Customer, management
• Focus on ultimate target / purpose of the organisation• In this case: ‘margin%’ [ %]
• Identify all factors having impact on :” margin % “:• Learning, people, growth• Internal business processes• External / Customer• financial
• Balanced scorecards (Kaplan)• System Dynamics (Senge)
Project management Dynamics December 2012
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margin % new Customer (revenues)
cost overrun
satisfaction policy/SLA
cost prediction (sales) efficiency PM method policy
KISS innovation processes roles&responsabilities
improve performance (staff) template project managementproduct mgt
training staff PM skills innovationengineers
employee satisfaction EVA
Project management Dynamics December 2012
BV
BA
Project management Dynamics December 2012
BV
BA
QA
training staff
innovationPM
skillsEVAEmployee
satisfaction
cost prediction
KISS
efficiency
innovation
policyPM
methodology
roles & responsibility
product management
re-use / templat
e
processes
performance (improvement)
project management
satisfaction policy / SLA
cost overrun
margin % new customer(revenues)
FIN
AN
CIA
Lpers
pect
ive
CU
STO
MER
’spers
pect
ive
Inte
rnal
busi
ness
&pro
cess
pers
pect
ive
People
,learn
ing,
gro
wth
pers
pect
ive
tools+
Think-tank+
Project management Dynamics December 2012
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Project BSC , KPI & KGI’s
Project management Dynamics December 2012
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Project KPI, KGI
Measurement is knowledge…
Identify all factors having impact on the – pre set – result / goals
•Project related metrics •Organisation related metrics•Performance related metrics•Finance related metrics•Quality related metrics
Project management Dynamics December 2012
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internal business process "what , why , when , who , how"actual project
cost prediction define workmethod based on experiences and best practices
measure after each project the variances between budget compositions % red
lack of profit, due to low pre-cost calculations learn , adapt next pre-calculation % green
lack of project management improve output % yellow
lack of design phase gate process (applied) design phase is not finished lessons learnedno proper process
excellence delivery installation
keep on changing the layout (even without feedback of customer)
use of template, or set of instructions/processset baseline of budgetrespect the authority of functional leads within Companyreview cycle's of pre-cost calculationsleasson's learnedre-calculate after finishing project na
identify overrun items, and reason's behind
cost follow up during projectcorrect information , correct expectation mgt
policy define project execution policyclear definition what, how , who will execute the project
measure the number of non-conformities after audit % red
publish policydescription of project execution (project charter) % green
maintain policy % yelloworganise internal auditreview policy
processes define PM execution processesmeasure the number of non-conformities after audit % red
publish processes % greenmaintain processes % yelloworganise internal auditreview processe
PM method implement PM methodmeasure the number of non-conformities after audit % red
publish PM method % greentrain PM % yelloworganise internal auditreview PM method
template identify templates (based on process desciption)measure the number of non-conformities after audit % red
publish templates % greentrain the use of templates % yelloworganise internal auditreview & life cycle templates
efficiencybased on selected tools, improve efficiency of Company's output (project delivery) decrease overrun of budget
training of staffdecrease overrun of timed schedule
selecting templates, methods, processes,… decrease rework
effectively apply set of measures & objectivesdecrease number of late (closed) issues
guard the application of abovedecrease number of risks (points) in time
margin (customer's satisfaction) will be know in advance (predictability)
decrease number of non-conformities (audit results)
do things right, the first timecustomer satisfaction (tbd)
effic
ient
ly p
rod
uce
& d
eliv
er
proj
ect
Project management Dynamics December 2012
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KISS apply KISS principleconsider re-use of existing equipment/work
publish KISS principle alwaysKISS is not opposite of innovation
quality process review of engineering work&solutionstimely discovering of mal-functioning engineering
peer to peercreate & establish state of the art solutions
guru approacheases/enable re-use of solutions
avoid rework (in late project phase)
avoid rework (in late project phase)
due to time constraint, ME-drawings are sent to supplier, without proper quality review
phase gate approachestablish baselines (enable scope change mgt) [€]
metrics
project management manage planningSPI , baseline , collecting spent hours, …predictability of project deliverables % on time
manage resourcesassign the right skills, at the right moment
manage scopescope management, introduce scope change management
manage qualitydefine work, outcome and results (scope, urs, testing)
manage riskrisks value should decrease (in time)
manage issues
number of issues should decrease, not too late open (not solved)
manage expectationsdefine clear (customer) expectations, quantify & qualify
manage budgetbudget management, overrun, re-work, scope change mgt,…
manage EV milestones met on timemilestones met EV
product mgt output / productivity) kg/hr(part of URS) innovation
PIRevolutive mgt
requirement performance
outputsolution should 100% satisfy the requirements
switch from one recept to another (within expected/set time)
scope managementnumber of scope changes per phase
user-friendlynumber of scope changes per project
resources planning resources planning accuracy
Project management Dynamics December 2012
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BA
learning , staff , growth training staff & engineers
(project related only) define roles & responsabilities improve efficiency
% project results (based on malfunctioning / underachieving resource)
define clear function description improve performance% turnover of employees (specific project , reasons)
define assessment tool improve loyaltydefine HR policy decrease turnover employeesidentify gaps (employee skills vs job description) improve compentenciesdefine training plan (per employee) na
execute trainng plan na
evaluate employee's performances (skills based) na
PM skills select & assign PM improve efficiencytechnology leadership training improve performanceproduct & solution focus see 'training staff & engineers) decrease project risk
PM select PM methodology improve outcome & quality of projectlower risk of margin decrease
PM certified (Prince2, or other methodology)within 1 year, all PM are certified not certified
training staff&engineers
engineering degrees education & training courses (potentially, degrees,or certificates)
innovationempower employees to innovatemotivate to innovatecreate incentive to enable innovation (initiatives)
EVAsustainable success is virtuous cycle: financial success allows Company to invest in its future (growth)
inno
vate
, im
prov
e an
d le
arn
Project management Dynamics December 2012
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customer's perspective
satisfactionproduct/service/installation is according URS. Both tangible as in-tangible number of matching URSuser friendly number of non-qualifications (after testing) / FAToutput is according contract (kg/hr)operationabilityversatibility
added value to Vertex
policy / SLA project management policy is known and 'respected';policy is aligned to Collette's policyclear description of communication linesswift response on mutual questions (for approval / for information)
on time delivery delivery as promised/planned, and stick to it number of milestones/deliverable on time (%)(quality and performances are IMPLICIT) (both internal , as external)
internal customers are also customers
be
st a
dd
ed
va
lue
to V
ert
ex
Project management Dynamics December 2012
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financial perspectivemargin % profit %
by all sub-linked objectives, margin % is keptsay no more profitability remains, as pre-calculated
revenu growth new customers
due to positive response (project success) , other customers create revenu growth
(sales / customer's satisfaction)
cost overrun defined project cost/budget must be respected
busi
ness
lead
ersh
ip &
pr
ofit
Project management Dynamics December 2012
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• Initiate approach on a thorough manner;• All concerned topics: project, innovation, processes, and solutions, product
management (high level);• Output:
– Recommandations (with solid pros & cons!);
• Members:– ‘Business’-Guru’s, sales, R&D, PM, engineers, The Company’s management;
• Pittfall :– >< project Steering Committee !
Think -tank
Project management Dynamics December 2012
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engineering & solutions : solutions provider
• Product life cycle management– R&D effort and solution driven approach– Buy or make assessment of components;
• Based on well thought assessment to reduce risks, and uplift the margin• Market competition;
– The Company should be “engineered solutions provider”, or will not be;
product / application
management
Project management Dynamics December 2012
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People, learning, and growth
– Assessment to ‘measure’ employee satisfaction;– Will increase performance (1th degree)– Training– Courses, provide & share information , involvement in company’s management,
feel good programme, pleasant working environment,…
Employee satisfaction
Project management Dynamics December 2012
BV
BA
People, learning, and growth
• Training staff:– Assessment/identify of needed / required skills to perform specific role– Will increase performance, and efficiency (1th degree);– Secondly, will improve drastically the motivation of the staff member, with will
improve the performance, and efficiency; the result is a more motivated staff
– Compose individual training / career path;• CAD , management , technical skills, depending on career path• Self-education, company organised training.
“training staff’ is typically a “self- enforcing’ dynamic
training staff
Project management Dynamics December 2012
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People, learning, and growth
• PM skills:– Could be part of ‘training staff’, but in project driven environment, can be specifically
threatened;– Assessment/identify of needed / required skills to perform PM role, based on individual profile;– Will increase performance, and application of PM methodology within the project (1th degree);– Secondly, a PM is functionally a managing director of a SME, having attention for all aspects of
managing a project (incl soft-skills)
– Compose individual training / career path;• Output must be certification in a acknowledged project methodology (Prince 2, PMI/PMP),
management , technical skills, depending on career path, and previous experience;• Self-education, company organised training.
“PM Skills’ is typically a “self- enforcing’ wheel/dynamic
PM skills
Project management Dynamics December 2012
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Internal business&process
• Efficiency:– Core of project organisation, with multiple elements supporting efficiency, or at
least having impact on;– Re-enforcing circles:
1. processes, kiss, tools, performance
2. Innovation, re-use, product management
3. Project methodology, project management, roles and responsibility
– Efficiency has direct impact on MARGIN %
• Less ‘efficiency’ costs margin%;– Focus and management of the re-enforcing circles to manage and improve
‘efficiency’;
efficiency
Project management Dynamics December 2012
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Internal business&process
• Product / service management:– Important to compose engineered solutions:
• Product life cycle management, or• Purchased product / applications
– Sign strategic contracts with suppliers (incl. SLA), or;– Competition on market;
• Assess and balance which to make, and what to buy;– Define cost of ownership (TCO) for each product / application
– Product life cycle:• List all applications;• Define (-end of-) life cycle;• Prepare ‘next generation” (by Engineering’s management, R&D, and sales)
– Assign budget, and timing (incl. testing);– In general, projection of life cycle is possible;
Product / service management
Most important for Company is to enable strategic advantage