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Why Do Projects Succeed or Fail? Discover What Really Makes a Difference Hello Mark, For too long, project managers have believed that the right planning leads to the right results. Yet time after time, independent research shows that the current approach to project management fails to produce the outcomes managers expect – and clients want. It’s clear the traditional solutions to project management are not working. The key to improving project performance is not planning, but execution – creating and sustaining processes and behaviors that deliver consistent, quantifiable results. Fortunately, the processes and behaviors to deliver consistent execution results are well defined and quantified. These form the Project Execution Maturity Model. This identifies the elements that drive effective project execution excellence, giving you a measurable means to assess your status, to target areas of improvement, and to make meaningful progress in the way you deliver projects. You'll learn: What processes and behaviors lead to lower operating costs, increased throughput, and significant gains in on-time delivery performance How to confidently identify and work on the right elements to change Why achieving greater project execution maturity drives increases to your organization's financial performance How to replicate success, project after project, by learning how to move your organization from ad hoc project management to control of projects, portfolios and continuous strategic improvement
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Why do projects succeed or fail?Part 1 – Basic Collaboration
The Behaviors that Make a Difference
2
What I want to share:
The Premise of the Solution
Project Execution Maturity Model – 3 Levels
Understanding Basic Collaboration
3
What does “failure” mean?
Scope�Did the project deliver
all the features?Quality
�Did the outcome function as it should have?
Business Benefit�Did the project deliver
the results?
Budget�Did it cost as much as it
was supposed to?Schedule
�Was it done when we wanted it to?
4
Most Managers Struggle with Schedule and Budget
Scope Quality Business Benefit Budget Schedule0%
10%
20%
30%
40%
50%
60%
70%
80%
Project Success Rates & Length of Time Using a PMO
PMO >= 6 yrs PMO <= 5 yrs No PMO
7
Successful projects are NOT the result of successful planning
Successful projects are the result of skillful execution.
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Performance Is a Function of Capability
Project Management Capabilities
Ability Behavior Result
Project ManagementMaturity
ProjectPerformance
BusinessPerformance
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Purpose of “Best Practice” Models Quantify capabilities that
deliver the desired results
Facilitate comparison to your practices
� Determine what is and what isn’t working
� Establish a case for action
� Develop a plan for improvement
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Many Project Management Maturity ModelsOver 30 different models, based on
various paradigms
Seem to be useful�Widely adopted
�Many organizations report advancements in maturity
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What Do We Want in a Model?The principles for delivering on time and on budget
Clear relationship between principles and desired effects
Behaviors that exemplify those principles
A path to maturity
Level 5 Optimizing
Level 4 Managed
Level 3 Org. Focus
Level 2 Basic PM
Level 1 Initial
Project Execution Maturity Model – Principles for Execution & On Time Delivery
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Date Mgmnt.
Schedule Risk
Delivery Promisin
g
Managing Bottlenec
ks
Remote Collaboratio
n
Priority Control
Collaborative
ExecutionControl WIPFunctional
Alignment
Probabilistic Planning
Subcontractor Management
Capacity Management
BASIC COLLABORATION
IMPROVED COORDINATION
INTEGRATED PLANNING & EXECUTION More
Mature
Less Mature
Basic Collaboration
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Emphasize Velocity
The work before you
The team before you
Near term
More Mature
Less Mature
Priority Control
Collaborative
ExecutionControl WIPFunctional
Alignment
Improved Coordination
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Inclusion of remote teams
Emphasize On Time Delivery
Inclusion of schedule risk in execution decisions
Medium Term
More Mature
Less Mature
Date Mgmnt.
Schedule Risk
Delivery Promisin
g
Managing Bottlenec
ks
Remote Collaboratio
n
Integrated Planning & Execution
16
Closed Loop planning & execution
Probabilistic scheduling
Finite resource planning
Life of project, full portfolio
Probabilistic Planning
Subcontractor Management
Capacity Management More
Mature
Less Mature
Basic Collaboration
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Increase Velocity
Priority Control
Collaborative
ExecutionControl WIPFunctional
Alignment
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Basic Collaboration Solves:Lack of direction
Unclear accountabilities for results
Slow progress
Answers the most basic questions:�What is the status of the work?
�Are we making progress?
�What do we need to do to move forward?
�Who is going to do it?
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Collaborative Execution
Priority Control
Collaborative Execution Control WIPFunctional
Alignment
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Collaborative Execution
Working together to achieve shared goals.
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Informed Collaboration
Individuals and teams see beyond their own tasks to the overall direction of the project
Agreement on the situation
Roles and accountabilities of each team member are clear
Focusing on what needs to be done today, rather than the past
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Collaborative ExecutionWhat if I don’t?Slow response to
project problems
Slow progress
Increased project lead-times
23
Building Collaboration
Accurate / shared assessment of the situation
Accountability for results
Plan-Do-Check-Act
The Situation Must Be Made Obvious
Accuracy – Where are we now?
Shared – Do we agree on it?
Purposeful Collaboration Focus on what is slowing or halting progress
Only investigate the issues� “What are the red issues?”
Ask what we need, not who to blame or why� “How does it hurt the project due date?”
Try to identify next steps, not resolve the issue� “Let’s have a separate meeting to figure this out”
Actionable!
Keep it short!
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Collaborative ExecutionWhat if I do?Quick response to
project problems
Increased completion velocity
Reduced project lead-times
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Functional Alignment
Priority Control
Collaborative
ExecutionControl WIPFunctional
Alignment
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Functional AlignmentThe project team
shares �A common goal
�Agreement on the rules of the game
Subordination of individual to team objectives
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Functional AlignmentWhat if they aren’t?Reduced velocity
�Time to clarify accountabilities
�Difficulty obtaining resources
�Low team engagement
Poor resource productivity�Misallocation of skills
�Response delays
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Metrics Align Behavior & Purpose
27-M
ar
29-M
ar
31-M
ar
2-Apr
4-Apr
6-Apr
8-Apr
10-A
pr
12-A
pr
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pr
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pr
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pr
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pr
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pr
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pr
2-May
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10-M
ay
12-M
ay
14-M
ay
16-M
ay
18-M
ay0
10
20
30
40
50
60
70
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100
Blue
Green
Yellow
Red
Tota
l ta
sks
by c
ate
gory
(Complete)
(In Progress)
(Minor Issue)
(Major Issue)
Results Trending Based on Behavior
9-Apr
11-A
pr
13-A
pr
15-A
pr
17-A
pr
19-A
pr
21-A
pr
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pr
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pr
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pr
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pr
1-May
3-May
5-May
7-May
9-May
11-M
ay
13-M
ay
15-M
ay
17-M
ay0
5
10
15
20
25
Nu
mb
er
of
Issu
es
Reso
lved
Befo
re
Need
ing
Esc
ala
tion
0
1
2
3
4
5
6
7
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9 Short Notice Issues
# o
f Is
sues
not
iden
ti-
fied
un
til esc
ala
tion
re
qu
ired
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Functional AlignmentWhat if they are? Increased task completion
velocity�Clear accountabilities
�Resources allocated as needed
�High team engagement
Improved resource productivity�The right people working the problems
�Quick response to problems
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Priority Control
Priority Control
Collaborative Execution Control WIPFunctional
Alignment
36
Priority Control
A unified work prioritization system which reflect the global priorities
Used for all projects and supporting tasks.
37
What/Who Controls Priorities?
Priority??
Operations
Project Managers
Product Planners SAP
P6
My Buddy
38
Priority ControlWhat if we don’t?Work performed out of
sequence
Plenty of task switching (multitasking)�Delays
�Longer completion times
Reduced productivity
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Setting the Priority
Establish the criteria (delivery date?)
Who controls them?
What if there is disagreement or confusion?
Quality problems or delay – does this change?
What about emergencies?
40
Priority ControlWhat if we do?The right work at the
right time
Much less task switching (multitasking)�Increased velocity
�Shorter completion times
Increased productivity
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Manage the Flow
Priority Control
Collaborative Execution Control WIPFunctional
Alignment
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Control Work in Progress
Managers control the release of work into the system based on the capacity of the constraint
Managers promote policies that reduce multi-tasking – �Clean Start
�Clear Priorities
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Controlling Work in Progress What if we don’t? Increased complexity of
task management� Increased management
effort (meetings!)� Work performed out of
sequence� Plenty of task switching
Increased project lead times
Delays in task completions
Task rework. Task over-processing Reduced productivity
45
WIP controls the release of new projects
must be limited.
Project XX
Estimate
(WIP = 4)WIP Controls:1.Limiting work2.Release at the rate of consumption
46
The Clean Start Queue
TBR (To be released)
It is a prioritized queue of work that needs to be done when resources are available.
The work has met the defined “clean start” requirements
47
Controlling Work in Progress What if we do? Simplification of task
management
Reduced project lead times
Tasks can be quickly completed without delay
Rework reduced
Task over-processing is eliminated
Improved productivity
Basic Collaboration - Summary
48
Collaborative
ExecutionWorking together to achieve shared goals
Functional Alignment
Each team member subordinates to the overall objectives of the project
Priority Control Local work priorities reflect global
priorities
Control WIP
Work is released into the system as it is consumed.Clean Start
Improved Coordination
49
Date Mgmnt.
Schedule Risk
Delivery Promisin
g
Managing Bottlenec
ks
Remote Collaboration
More Mature
Less Mature
Deliver on Time
Integrated Planning & Execution
50
Probabilistic Planning
Subcontractor Management
Capacity Management More
Mature
Less Mature
Optimize Performance
51
Project Execution Maturity ModelFills the gap in existing models
�Schedule
�Budget / Cost
Basic Collaboration
Improved Coordination
Integrated Planning& Execution
52
Road Map to Value
53
Directly Building Capabilities that Drive Performance
Project Management Capabilities
Ability Behavior Result
Project ManagementMaturity
ProjectPerformance
BusinessPerformance
Basic Collaboration - Results
54
All of the work in the system is in control
Project teams have a clear view of the project work, its status and risk
Local resource teams are aligned with project priorities.
Accountabilities for results are clear
Priority Control
Collaborative
ExecutionControl WIPFunctional
Alignment
Tracking 54% improvement
AverageQuoted Lead Time
Results after 10 Weeks Engineering Lead Time reduced
From 24 months to 11 months
54% improvement in engineering lead time
& little variation
Financial Impact (USD)
LT impact with additional
sales
• More with same• New sales - reduced lead time
= new projects + aftermarket
0 24 monthsOriginal
Original
New Sales
1.4
Additional sales
• More with same• New sales – additional productivity
= new projects + aftermarket
+27%
Ca
pa
city
? ? ?
SCU A B C
1.9 to
2.8
Improved effectiveness &
efficiency
• Same with less• 27% reduction of project lead times
translated into cost savings2.1
Bottom line:
≥ 5.3mm
Why do projects succeed or fail?
The Behaviors that Make a Difference
