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Engineering Project Management Engineering Project Management
Eng R. L. NkumbwaEng R. L. Nkumbwa™™
www.nkumbwa.weebly.comwww.nkumbwa.weebly.com
© 2010 Nkumbwa™. All Rights Reserved.
2© 2010 Nkumbwa™. All Rights Reserved.
OutlineOutline
PM in today’s environmentPM in today’s environment rapid changerapid change BPRBPR
The project planThe project plan Management & communicationsManagement & communications Organizational, people, political issuesOrganizational, people, political issues StakeholdersStakeholders Tools & methodologiesTools & methodologies
3© 2010 Nkumbwa™. All Rights Reserved.
New Business EnvironmentNew Business Environment
Change – at ever faster paceChange – at ever faster pace Globalization/InternetGlobalization/Internet Intense CompetitionIntense Competition BPR leading toBPR leading to
Downsizing, flatteningDownsizing, flattening Team approach, empowermentTeam approach, empowerment E-Commerce, outsourcingE-Commerce, outsourcing
4© 2010 Nkumbwa™. All Rights Reserved.
ChangeChange
Business ChangeBusiness Change
ProjectsProjects
Project Management (PM)Project Management (PM)
5© 2010 Nkumbwa™. All Rights Reserved.
Project CharacteristicsProject Characteristics
Defined goalDefined goal Primary sponsor or customerPrimary sponsor or customer Set of activitiesSet of activities
Unique, complex, sequencedUnique, complex, sequenced Start & finishStart & finish
Temporary, time frame for completionTemporary, time frame for completion Limited resourcesLimited resources
Dollars, peopleDollars, people Uncertainty, riskUncertainty, risk
6© 2010 Nkumbwa™. All Rights Reserved.
Ongoing ActivitiesOngoing Activities
Have opposite characteristics to projectsHave opposite characteristics to projects Similar, often identical products or servicesSimilar, often identical products or services No defined endNo defined end Staffing & management practices geared to aboveStaffing & management practices geared to above
7© 2010 Nkumbwa™. All Rights Reserved.
What is Project Management?What is Project Management?
PM is the application of knowledge, skills, tools and PM is the application of knowledge, skills, tools and techniques to project activities in order to meet project techniques to project activities in order to meet project requirements. (PMI)requirements. (PMI)
PMPM is an art.is an art. is a science.is a science. has a set of tools and methods.has a set of tools and methods.
9© 2010 Nkumbwa™. All Rights Reserved.
Project Dynamics:Project Dynamics:The Triple ConstraintsThe Triple Constraints
Scope
Quality
Cost Time
Resources
10© 2010 Nkumbwa™. All Rights Reserved.
Scope Creep (Wysocki)Scope Creep (Wysocki)
Scope creepScope creep any change not in original planany change not in original plan IT particularly prone to creepIT particularly prone to creep major challenge for PMsmajor challenge for PMs
Hope creepHope creep will catch up next weekwill catch up next week
Effort creepEffort creep 95-99% complete95-99% complete
Feature creepFeature creep team member adds featuresteam member adds features
11© 2010 Nkumbwa™. All Rights Reserved.
Traditional Project ManagementTraditional Project Management
PM practiced (not by name) for millenniaPM practiced (not by name) for millennia PERT/CPM tools developed in 1950sPERT/CPM tools developed in 1950s Focus on time, budget, specsFocus on time, budget, specs
Gantt charts, Pert/CPMGantt charts, Pert/CPM s-shaped budget curvess-shaped budget curves resource matricesresource matrices
Customers an afterthoughtCustomers an afterthought Project managers’ domain limitedProject managers’ domain limited
implementersimplementers
12© 2010 Nkumbwa™. All Rights Reserved.
New Project ManagementNew Project Management
Need to enhance traditional PM to:Need to enhance traditional PM to: become more customer focusedbecome more customer focused utilize new tools & softer skillsutilize new tools & softer skills empower/select project managersempower/select project managers
decision makingdecision making profit-loss responsibilitiesprofit-loss responsibilities entrepreneurial approachentrepreneurial approach business know-howbusiness know-how
13© 2010 Nkumbwa™. All Rights Reserved.
PMI PMBOKPMI PMBOKProject management Body of KnowledgeProject management Body of Knowledge
14© 2010 Nkumbwa™. All Rights Reserved.
Effective Project ManagersEffective Project Managers
Lead by exampleLead by example VisionariesVisionaries Technically competentTechnically competent DecisiveDecisive Good communicatorsGood communicators
Good motivatorsGood motivators Stand up to execs when Stand up to execs when
necessarynecessary Support team membersSupport team members Encourage new ideasEncourage new ideasZimmerman & Yasin 1998 Zimmerman & Yasin 1998
15© 2010 Nkumbwa™. All Rights Reserved.
Effective Project ManagersEffective Project ManagersAlternate ViewAlternate View
Leaders (also managers, administrators)Leaders (also managers, administrators) CommunicatorsCommunicators Goal orientedGoal oriented Problem solversProblem solvers InnovatorsInnovators Work well under pressure (able to laugh)Work well under pressure (able to laugh) Technically competent, respected, awareTechnically competent, respected, aware Know company & its businessKnow company & its business
16© 2010 Nkumbwa™. All Rights Reserved.
Project Manager TraitsProject Manager Traits
Systems approachSystems approach Analytical skillsAnalytical skills Ability to zoomAbility to zoom
forest versus treesforest versus trees big picture versus detailsbig picture versus details
Firm yet flexibleFirm yet flexible ““Velvet covered brick”Velvet covered brick”
18© 2010 Nkumbwa™. All Rights Reserved.
Project Management Process GroupsProject Management Process Groups
19© 2010 Nkumbwa™. All Rights Reserved.
Project Life Cycle (Frame)Project Life Cycle (Frame)
Planning
Concept
Execution
Closeout
Operation
Maintenance
20© 2010 Nkumbwa™. All Rights Reserved.
PM Life Cycle (Wysocki)PM Life Cycle (Wysocki)
Five PhasesFive Phases
1.1. Scope projectScope project
2.2. Develop project planDevelop project plan
3.3. Launch planLaunch plan
4.4. Monitor/control project projectMonitor/control project project
5.5. Close out projectClose out project
21© 2010 Nkumbwa™. All Rights Reserved.
Why Projects SucceedWhy Projects Succeed
User involvementUser involvement Exec management supportExec management support
unequivocal sponsorshipunequivocal sponsorship Clear understanding & statementClear understanding & statement
of requirementsof requirements Effective planningEffective planning Realistic expectationsRealistic expectations
Standish Group survey of IT execsStandish Group survey of IT execs
22© 2010 Nkumbwa™. All Rights Reserved.
Building Bridges versus SoftwareBuilding Bridges versus Software
Why do bridge projects usually succeed?Why do bridge projects usually succeed? Why do software projects usually fail?Why do software projects usually fail?
on timeon time within budgetwithin budget meet expectationsmeet expectations
23© 2010 Nkumbwa™. All Rights Reserved.
Successful ProjectsSuccessful Projects
Depends on your point of viewDepends on your point of view Execs, users & project team view success differentlyExecs, users & project team view success differently Is project successful if meets stated goals, schedule & Is project successful if meets stated goals, schedule &
budget?budget? Does project result in tangible, cost effective business Does project result in tangible, cost effective business
improvement for users?improvement for users?
24© 2010 Nkumbwa™. All Rights Reserved.
Success as perceived by ExecsSuccess as perceived by Execs
Real business assetReal business asset Cost controlled (low)Cost controlled (low) Objectives achievedObjectives achieved Not oversoldNot oversold Not over-committedNot over-committed Well managedWell managed
effective controls, milestones achievedeffective controls, milestones achieved
25© 2010 Nkumbwa™. All Rights Reserved.
Success as perceived by Project TeamSuccess as perceived by Project Team
Execs & users happy with resultsExecs & users happy with results Management committed & supportiveManagement committed & supportive Necessary resources availableNecessary resources available
enough, adequateenough, adequate Managed changes effectivelyManaged changes effectively Schedule realisticSchedule realistic Gained experienceGained experience
26© 2010 Nkumbwa™. All Rights Reserved.
Project DisciplineProject Discipline
Definition: act of encouraging desired pattern of behaviorDefinition: act of encouraging desired pattern of behavior the glue that holds it all togetherthe glue that holds it all together project manager, team, organizationproject manager, team, organization Implementing disciplineImplementing discipline
set realistic goalsset realistic goals obtain commitmentsobtain commitments track progress against planstrack progress against plans enforce commitmentsenforce commitments
WhittenWhitten
27© 2010 Nkumbwa™. All Rights Reserved.
Key Concepts (Verzuh)Key Concepts (Verzuh)
PM – emerging career trackPM – emerging career track PM – art informed by sciencePM – art informed by science Challenges of PMChallenges of PM
personnel, estimating, budgeting, authority, controls, personnel, estimating, budgeting, authority, controls, communicationcommunication
PM is industry independent, project managers aren’tPM is industry independent, project managers aren’t
28© 2010 Nkumbwa™. All Rights Reserved.
Key Concepts (Verzuh) Key Concepts (Verzuh) ContinuedContinued
Managing Expectations Managing Expectations (later session)(later session) No damageNo damage
can’t keep giving 120%can’t keep giving 120% order ulcer medicationorder ulcer medication
Surviving organizational structureSurviving organizational structure authority, communications, priority, focus, chain of authority, communications, priority, focus, chain of
commandcommand
29© 2010 Nkumbwa™. All Rights Reserved.
Quotes from VerzuhQuotes from Verzuh
Primary responsibility of project manager to lead Primary responsibility of project manager to lead customers, management, vendors and encourage them customers, management, vendors and encourage them to work together during the project.to work together during the project.
Success may demand every technique in this bookSuccess may demand every technique in this book Project manager is catalystProject manager is catalyst
Energy & attitude give the powerEnergy & attitude give the power
30© 2010 Nkumbwa™. All Rights Reserved.
Silver BulletsSilver Bullets
Organizations & their execs have problemsOrganizations & their execs have problems They look to projects to solve themThey look to projects to solve them Too many have silver bullet expectations of projectsToo many have silver bullet expectations of projects They fail to address the root causes of their problemsThey fail to address the root causes of their problems
31© 2010 Nkumbwa™. All Rights Reserved.
Success or Failure?Success or Failure?
“BIG I” Successful?Successful? Well planned?Well planned? Clear accountability?Clear accountability? Did things go wrong?Did things go wrong? Effective communications?Effective communications? Carrot & stick?Carrot & stick?
““BCMDC”BCMDC” Fiasco?Fiasco? Planned or happened?Planned or happened? Anyone accountable?Anyone accountable? Anyone fired?Anyone fired? Frank’s plumbing?Frank’s plumbing? One disaster after another?One disaster after another? Who cares?Who cares?
32© 2010 Nkumbwa™. All Rights Reserved.
OverviewOverview
Delighting customersDelighting customers Needs to requirementsNeeds to requirements Organizational issuesOrganizational issues StakeholdersStakeholders Politics (revisited)Politics (revisited) Getting the project off the groundGetting the project off the ground
Scope the ProjectScope the Project Project Charter (Verzuh)Project Charter (Verzuh) Project Overview Statement (Wysocki)Project Overview Statement (Wysocki)
33© 2010 Nkumbwa™. All Rights Reserved.
Delighting CustomersDelighting Customers
Delight – not just satisfyDelight – not just satisfy Knowing who they are, what they want, when they are right & Knowing who they are, what they want, when they are right &
wrongwrong Obsession with customer satisfaction is part of the new project Obsession with customer satisfaction is part of the new project
managementmanagement Nothing obvious/trivial about identifying customersNothing obvious/trivial about identifying customers
34© 2010 Nkumbwa™. All Rights Reserved.
Delighting Customers (cont.)Delighting Customers (cont.)
““High-value organizations are in business of selling High-value organizations are in business of selling solutions, not hardware, and customer solutions, not hardware, and customer
satisfaction achieved through partnering between satisfaction achieved through partnering between buyers & sellers”buyers & sellers”
(Frame)(Frame)
35© 2010 Nkumbwa™. All Rights Reserved.
Meeting Customer ExpectationsMeeting Customer Expectations
Product/service usableProduct/service usable Promises keptPromises kept competent/gracious servicecompetent/gracious service needs understood & addressed effectivelyneeds understood & addressed effectively
36© 2010 Nkumbwa™. All Rights Reserved.
CustomersCustomers== Needs/Requirements Needs/Requirements
Must work tirelessly to Must work tirelessly to understandunderstand them them It’s a translation process twixt ill-defined languagesIt’s a translation process twixt ill-defined languages
37© 2010 Nkumbwa™. All Rights Reserved.
CustomersCustomers== Needs/Requirements Needs/Requirements
Needs analyst traits:Needs analyst traits: strong ability to deal with customersstrong ability to deal with customers political skillspolitical skills technically competenttechnically competent open-minded & imaginativeopen-minded & imaginative high tolerance for ambiguity high tolerance for ambiguity articulatearticulate
Technicians tend to produce Mercedes not the Hyundai thatTechnicians tend to produce Mercedes not the Hyundai that==s s wantedwanted
38© 2010 Nkumbwa™. All Rights Reserved.
Bridging Customer-Developer GapBridging Customer-Developer Gap
Partner with customers (stakeholders)Partner with customers (stakeholders) Use “Joint” techniques:Use “Joint” techniques:
Joint Project Planning (JPP)Joint Project Planning (JPP) Joint Application Development (JAD)Joint Application Development (JAD)
If fail to get needs/requirements right both sides at faultIf fail to get needs/requirements right both sides at fault Communications barriersCommunications barriers
cultural, vocabulary, medium, feedbackcultural, vocabulary, medium, feedback Tips: be up front, cautious (Murphy’s Law), realistic, clear, Tips: be up front, cautious (Murphy’s Law), realistic, clear,
don’t jump to solutions, communicate/educatedon’t jump to solutions, communicate/educate
39© 2010 Nkumbwa™. All Rights Reserved.
Improving Needs DefinitionImproving Needs Definition
Understand present system in full contextUnderstand present system in full context Identify multiple customers, prioritize their needs Identify multiple customers, prioritize their needs Needs defining task force involving customersNeeds defining task force involving customers Educate customers in rudiments of project managementEducate customers in rudiments of project management
must realize itmust realize it==s an exercise in compromises an exercise in compromise multiple customers, conflicting needs, budget & schedule multiple customers, conflicting needs, budget & schedule
constraintsconstraints
40© 2010 Nkumbwa™. All Rights Reserved.
Needs AnalysisNeeds Analysis
KeyAreas ofAnalysis
OrganizationalOrganizational
FunctionalRequirements
FunctionalRequirements
PresentSystemPresentSystem
41© 2010 Nkumbwa™. All Rights Reserved.
Organizational IssuesOrganizational Issues
You are PM not CEO/COOYou are PM not CEO/COO Yet you need organization’s commitment, so:Yet you need organization’s commitment, so:
focus org. culture on customer value (culture change!)focus org. culture on customer value (culture change!) unbridled change so organize into short, achievable unbridled change so organize into short, achievable
deliverablesdeliverables improve processes for customer delightimprove processes for customer delight strengthen project staff capabilities, e.g. business & non-strengthen project staff capabilities, e.g. business & non-
technical skillstechnical skills
42© 2010 Nkumbwa™. All Rights Reserved.
Changing Corporate Culture Changing Corporate Culture
BPR (project oriented) not TQM (process oriented), so:BPR (project oriented) not TQM (process oriented), so: Focus on valueFocus on value Encourage upside-down thinkingEncourage upside-down thinking Power sharingPower sharing Long term viewLong term view Total customer focusTotal customer focus
43© 2010 Nkumbwa™. All Rights Reserved.
Business Reengineering & Quality ManagementBusiness Reengineering & Quality Management
Business QualityImprovement
Business QualityImprovement
BusinessReengineering
BusinessReengineering
DefinitionDefinition
TargetTarget
PotentialPaybackPotentialPayback
RiskRisk
What Changes?What Changes?
PrimaryEnablersPrimaryEnablers
Incrementally Improving Existing ProcessesIncrementally Improving Existing Processes
Radically Redesigning Business SystemsRadically Redesigning Business Systems
Any ProcessAny Process Strategic Business ProcessesStrategic Business Processes
10%-50% Improvements10%-50% Improvements 10-Fold Improvements10-Fold Improvements
LowLow HighHigh
Same Jobs - More EfficientSame Jobs - More Efficient Big Job Cuts; New Jobs; Major Job RedesignBig Job Cuts; New Jobs; Major Job Redesign
IT and Work SimplificationIT and Work Simplification IT and Organizational RedesignIT and Organizational Redesign
44© 2010 Nkumbwa™. All Rights Reserved.
Organizational CommitmentOrganizational Commitment
Organization committed to PM:Organization committed to PM: organization has project management system defining organization has project management system defining
processes & practicesprocesses & practices system disseminated to employees via education & system disseminated to employees via education &
trainingtraining Management instills the discipline necessary to ensure Management instills the discipline necessary to ensure
system followedsystem followed system is living document not collecting dustsystem is living document not collecting dust
45© 2010 Nkumbwa™. All Rights Reserved.
Customers Dont CooperateCustomers Dont Cooperate
Common complaint from PMs: Common complaint from PMs: customers not behaving responsiblycustomers not behaving responsibly ““customer” not monolithcustomer” not monolith prime cause organizational politicsprime cause organizational politics
Educate customers, educate, educateEducate customers, educate, educate emphasize contractual obligationsemphasize contractual obligations meeting key milestonesmeeting key milestones establish steering committeeestablish steering committee
46© 2010 Nkumbwa™. All Rights Reserved.
Stakeholder ConceptStakeholder Concept
In projects stakeholders are the movers & shakersIn projects stakeholders are the movers & shakers Stakeholder rolesStakeholder roles
Customers/usersCustomers/users Sponsor(s)Sponsor(s) Line (functional) managementLine (functional) management Project managerProject manager Project teamProject team Anyone/everyone else with a stakeAnyone/everyone else with a stake
VerzuhVerzuh
47© 2010 Nkumbwa™. All Rights Reserved.
StakeholdersStakeholders
First identify all stakeholdersFirst identify all stakeholders Must delight not just customers, but also stakeholdersMust delight not just customers, but also stakeholders This is tough!This is tough! Customers, management, project team must all agree on project Customers, management, project team must all agree on project
goalsgoals Project manager must coordinate, guide, lead this diverse group Project manager must coordinate, guide, lead this diverse group
through the project stagesthrough the project stages
48© 2010 Nkumbwa™. All Rights Reserved.
Politics RevisitedPolitics Revisited
““Politics is the art of influence”Politics is the art of influence” DON’T accept things at face value, be insensitive to politics, be DON’T accept things at face value, be insensitive to politics, be
hyper-politicalhyper-political Action guideAction guide
positive attitude to politicspositive attitude to politics develop base of authoritydevelop base of authority get a grasp of political environmentget a grasp of political environment action planaction plan
49© 2010 Nkumbwa™. All Rights Reserved.
Politics RevisitedPolitics Revisited
Building authorityBuilding authority formal (from position)formal (from position) technical/expert authoritytechnical/expert authority charismacharisma purse string (rewards)purse string (rewards) bureaucracybureaucracy old boy network . . . etc.old boy network . . . etc.
Support of “power players”Support of “power players”
50© 2010 Nkumbwa™. All Rights Reserved.
Project TeamsProject Teams
Traditional teamsTraditional teams full time membersfull time members co-locatedco-located easy to develop esprit de corpseasy to develop esprit de corps
Today’s teamsToday’s teams part-timerspart-timers not assigned for durationnot assigned for duration virtual environmentvirtual environment tough to build effective teams, demands ingenuitytough to build effective teams, demands ingenuity
51© 2010 Nkumbwa™. All Rights Reserved.
Getting Project off the GroundGetting Project off the Ground
Remember project success demandsRemember project success demands goals agreed by all stakeholdersgoals agreed by all stakeholders control of scopecontrol of scope management supportmanagement support
PROJECT CHARTERPROJECT CHARTER brief, high level document formally establishing projectbrief, high level document formally establishing project understood & signed by all key stakeholdersunderstood & signed by all key stakeholders
52© 2010 Nkumbwa™. All Rights Reserved.
Project CharterProject Charter
Establishes rules of gameEstablishes rules of game What project includes, what it doesn’t (boundaries)What project includes, what it doesn’t (boundaries) Goals, constraints, success criteriaGoals, constraints, success criteria NegotiateNegotiate Formally agreeFormally agree Note Statement of Work (SOW)Note Statement of Work (SOW)
NOT usual usage of termNOT usual usage of term
53© 2010 Nkumbwa™. All Rights Reserved.
Establish InitiateEstablish Initiate
Charter establishes projectCharter establishes project Next must compete with other projects for scarce Next must compete with other projects for scarce
resourcesresources Prioritize – go or no go?Prioritize – go or no go? Go aheadGo ahead Begin Analysis PhaseBegin Analysis Phase needs requirements needs requirements detailed SOWdetailed SOW
54© 2010 Nkumbwa™. All Rights Reserved.
Wysocki: Scope the ProjectWysocki: Scope the Project
Wysocki’s equivalent of the Charter:Wysocki’s equivalent of the Charter:Project Overview Statement (POS)Project Overview Statement (POS)
About one page, butAbout one page, but attachments: risk & financial analysesattachments: risk & financial analyses approval by project mgr & core team (?)approval by project mgr & core team (?) Joint Project Planning (JPP) sessionJoint Project Planning (JPP) session
Project Definition Statement (PDS)Project Definition Statement (PDS) next stagenext stage considerably more detailconsiderably more detail
55© 2010 Nkumbwa™. All Rights Reserved.
POS ComponentsPOS Components
1.1. Problem/opportunityProblem/opportunity factual statementfactual statement accepted by organizationaccepted by organization
2.2. Goal (one goal)Goal (one goal) gives purpose & direction gives purpose & direction what will be donewhat will be done defines final deliverable/outcomedefines final deliverable/outcome SMARTSMART
specific, measurable, assignable, realistic, time framespecific, measurable, assignable, realistic, time frame
56© 2010 Nkumbwa™. All Rights Reserved.
POS ComponentsPOS Components
3.3. ObjectivesObjectives
1.1. outcomeoutcome
2.2. time frametime frame
3.3. measuremeasure
4.4. actionaction
4.4. Success criteriaSuccess criteria• why do we want to do project?why do we want to do project?• measurable business valuemeasurable business value• sells project to execssells project to execs
57© 2010 Nkumbwa™. All Rights Reserved.
POS ComponentsPOS Components
5.5. Assumptions, risks, obstaclesAssumptions, risks, obstacles• what can go wrong?what can go wrong?• alert management to factors that may alert management to factors that may
interfere/compromiseinterfere/compromise• specific, briefspecific, brief
58© 2010 Nkumbwa™. All Rights Reserved.
PoliticsPolitics
Politics:Politics: control of outcomes via control of people. control of outcomes via control of people.
Use political tools in conjunction with product-oriented toolsUse political tools in conjunction with product-oriented tools Use of political tools NOT inherently badUse of political tools NOT inherently bad Ignoring politics can result in unnecessary losing outcomesIgnoring politics can result in unnecessary losing outcomes
59© 2010 Nkumbwa™. All Rights Reserved.
Politics vs ProductPolitics vs Product
Product Ethics Politics
product/service provided to customer function-quality-service Success if meets specs, on time,
under budget
perception of what we provided
perception-expectation
success defined by positive surprises
60© 2010 Nkumbwa™. All Rights Reserved.
Perceptions & ExpectationsPerceptions & Expectations
Customers have preconceived perceptions & expectationsCustomers have preconceived perceptions & expectations Perhaps unrealistic, in hope of solving major problemsPerhaps unrealistic, in hope of solving major problems These perceptions/expectations are reality to themThese perceptions/expectations are reality to them If discrepancy, surprise will occurIf discrepancy, surprise will occur
61© 2010 Nkumbwa™. All Rights Reserved.
First Law of PoliticsFirst Law of Politics
Rule #1: surprise will always happenRule #1: surprise will always happen Rule #2: managing surprises is key to customer satisfactionRule #2: managing surprises is key to customer satisfaction First LawFirst Law
Perception – Expectation = SurprisePerception – Expectation = Surprise Perception: view of product/service actually observedPerception: view of product/service actually observed Expectation: view what should be able to doExpectation: view what should be able to do
62© 2010 Nkumbwa™. All Rights Reserved.
Reality is a MythReality is a Myth
ImaginedImagined
MapMap
TruthTruth
. . what you believe. . what you believe
. . . . subjective. . . . subjective
RealReal
TerritoryTerritory
FactFact
. . . . what is true. . . . what is true
. . . objective reality. . . objective reality
63© 2010 Nkumbwa™. All Rights Reserved.
Second Law of PoliticsSecond Law of Politics
Second Law:Second Law:
Perception = RealityPerception = Reality
Doesn’t matter what you do, only what people think you doDoesn’t matter what you do, only what people think you do As many truths (realities) as there are people; no-one better than As many truths (realities) as there are people; no-one better than
any otherany other
64© 2010 Nkumbwa™. All Rights Reserved.
Third Law of PoliticsThird Law of Politics
There are trade-offs twixt wants and needsThere are trade-offs twixt wants and needs Also gap twixt wants/needs can create negative surprise laterAlso gap twixt wants/needs can create negative surprise later
hence poor customer satisfactionhence poor customer satisfaction
Third LawThird Law
Wants – Needs = SurpriseWants – Needs = Surprise
65© 2010 Nkumbwa™. All Rights Reserved.
Fourth Law of PoliticsFourth Law of Politics
Fourth LawFourth Law
Perception Perception todaytoday = Expectation = Expectation tomorrowtomorrow
This is law of political momentumThis is law of political momentum More effort required as time goes on to create positive surprisesMore effort required as time goes on to create positive surprises
66© 2010 Nkumbwa™. All Rights Reserved.
Political Definition of SuccessPolitical Definition of Success
Notes:Notes: Success exists in minds of customersSuccess exists in minds of customers Success varies over timeSuccess varies over time Our task is to Our task is to control surprisescontrol surprises This takes precedence over product/servicesThis takes precedence over product/services
67© 2010 Nkumbwa™. All Rights Reserved.
Equation for SuccessEquation for Success
Success = Sum of surprises as perceived by all customers over timeSuccess = Sum of surprises as perceived by all customers over time
i=ni=n
Success = ( Success = ( ∑∑ S S i i ) ) tt
i=1i=1
n = # of customersn = # of customers t = timet = time
68© 2010 Nkumbwa™. All Rights Reserved.
Equation for Success IIEquation for Success II
i=ni=n
Success = (Success = (∑∑ s s ii w w i i ) ) tt
i=1i=1
w = weight associated with eachw = weight associated with each
customercustomer
69© 2010 Nkumbwa™. All Rights Reserved.
Political CredibilityPolitical Credibility
Every person/organizational component has a stack of political Every person/organizational component has a stack of political “chips”“chips”
There is “price” when we try to control an outcomeThere is “price” when we try to control an outcome If we don’t have enough chips at the time we fail to controlIf we don’t have enough chips at the time we fail to control So vital to maintain sufficient pile of chipsSo vital to maintain sufficient pile of chips
70© 2010 Nkumbwa™. All Rights Reserved.
Political CredibilityPolitical Credibility
Chips go away whenChips go away when we spend in political processwe spend in political process we create negative surpriseswe create negative surprises & they evaporate over time& they evaporate over time
We gain chips whenWe gain chips when we create positive surpriseswe create positive surprises we “join”we “join” & via our business/technical abilities& via our business/technical abilities
71© 2010 Nkumbwa™. All Rights Reserved.
Attaining Political CredibilityAttaining Political Credibility
Establish mission Establish mission what products/services we providewhat products/services we provide
Identify customersIdentify customers functional (direct)functional (direct) political (indirect) political (indirect)
Survey customersSurvey customers what expectations/perceptions exist?what expectations/perceptions exist? criteria for measuring them?criteria for measuring them? triggers for them?triggers for them?
72© 2010 Nkumbwa™. All Rights Reserved.
Attainment (continued)Attainment (continued)
Survey customers (cont.)Survey customers (cont.) customer wants/needs?customer wants/needs? contradictions twixt them?contradictions twixt them? wall erected?wall erected?
Establish vehiclesEstablish vehicles ““For each customer, what vehicle exists to control For each customer, what vehicle exists to control
expectations/perceptions in the criteria for that user?”expectations/perceptions in the criteria for that user?”
73© 2010 Nkumbwa™. All Rights Reserved.
Leverage TechniquesLeverage Techniques
LeverageLeverage to be effective must apply political credibility at right to be effective must apply political credibility at right
pointpoint this is principle of leveragethis is principle of leverage target chips toward specific “owners” (we may be target chips toward specific “owners” (we may be
credible with one person not another)credible with one person not another) not enough to have chips, we must have them in right not enough to have chips, we must have them in right
place at right timeplace at right time
74© 2010 Nkumbwa™. All Rights Reserved.
Leverage TechniquesLeverage Techniques
Leverage principlesLeverage principles target chips to be where & when neededtarget chips to be where & when needed Identify winners/losers; winners work for you; losers Identify winners/losers; winners work for you; losers
againstagainst Use someone else’s chips; get one of winners to attempt Use someone else’s chips; get one of winners to attempt
controlcontrol
75© 2010 Nkumbwa™. All Rights Reserved.
PersuasionPersuasion
Common mistake among techniciansCommon mistake among technicians assume sufficient evidence/logical argument will convince assume sufficient evidence/logical argument will convince
peoplepeople that reason & logic rule the daythat reason & logic rule the day
But best idea backed by credible evidence won’t fly unless those But best idea backed by credible evidence won’t fly unless those controlling outcome agree to itcontrolling outcome agree to it
We must sway the decision/outcomeWe must sway the decision/outcome
76© 2010 Nkumbwa™. All Rights Reserved.
Persuasion ProcessPersuasion Process
Define decision we wantDefine decision we want List every major player who can affect decisionList every major player who can affect decision
people, groups, organizationspeople, groups, organizations i.e. i.e. the stakeholdersthe stakeholders
Assess Assess position of each player -- for or againstposition of each player -- for or against power of each playerpower of each player priority each player places on outcomepriority each player places on outcome
77© 2010 Nkumbwa™. All Rights Reserved.
Persuasion Process (cont.)Persuasion Process (cont.)
What can we do to cause the power, position, What can we do to cause the power, position, priority of each player to change so the outcome priority of each player to change so the outcome we want will occur?we want will occur?
78© 2010 Nkumbwa™. All Rights Reserved.
Persuasion (cont.)Persuasion (cont.)
Person Power Position Priority Score
A 4 4 1 16
B 2 -5 5 -50
C 1 0 2 0
(assign value, 1-5, 5 high)
79© 2010 Nkumbwa™. All Rights Reserved.
SummarySummary
Technical Competence is InsufficientTechnical Competence is Insufficient
Embrace PoliticsEmbrace Politics
80© 2010 Nkumbwa™. All Rights Reserved.
Remember Verzuh’sRemember Verzuh’s Five Essential Success Factors Five Essential Success Factors
Agreement on Agreement on GoalsGoals PlanPlan clearly indicating what and who clearly indicating what and who Constant, effectiveConstant, effective Communication Communication ControlledControlled Scope Scope Management Management supportsupport
81© 2010 Nkumbwa™. All Rights Reserved.
OverviewOverview
Selecting ProjectsSelecting Projects Risk ManagementRisk Management Work Breakdown StructureWork Breakdown Structure Realistic EstimatingRealistic Estimating Scheduling MethodsScheduling Methods
Gantt, CPM, PERTGantt, CPM, PERT Time Boxes & Critical ChainTime Boxes & Critical Chain
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Selecting ProjectsSelecting Projects
In most organizations projects mustIn most organizations projects must
compete for priority, dollars, resourcescompete for priority, dollars, resources Financial ModelsFinancial Models
detailed financial analysisdetailed financial analysis cost–benefit ratioscost–benefit ratios
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Selecting Projects (cont.)Selecting Projects (cont.)
Martin Buss “How to Select Projects” Martin Buss “How to Select Projects” Harvard Business Review 1983Harvard Business Review 1983 Small project selection teamSmall project selection team grids with criteria, high-medium-lowgrids with criteria, high-medium-low criteria generally financial, technical, enhancing core criteria generally financial, technical, enhancing core
competencies, organizational fit against costscompetencies, organizational fit against costs review proposals, then quick collective judgmentreview proposals, then quick collective judgment
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Buss’s Grid ApproachBuss’s Grid Approach
Grid A
High
Medium
Low
Medium Low
High
Financial Benefits
Co
sts
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Risk – Risk – RiskRisk – Risk – Risk
Life is full of uncertainty, i.e. Life is full of uncertainty, i.e. RiskRisk Projects are inherently & especially risk proneProjects are inherently & especially risk prone Insurance companies are risk managersInsurance companies are risk managers Re projects: Murphy was an optimistRe projects: Murphy was an optimist
if it can go wrong, it willif it can go wrong, it will As project managers:As project managers:
We must apply systematic risk management techniques We must apply systematic risk management techniques throughoutthroughout project project
They are part of our toolkit (PMBOK)They are part of our toolkit (PMBOK)
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Risk ManagementRisk Management
Software Engineering Institute (SEI) perspective:Software Engineering Institute (SEI) perspective: URLs URLs http://www.sei.cmu.edu/programs/sepm/risk/risk.mgmt.overview.html http://www.sei.cmu.edu/programs/sepm/risk/principles.html
Risk management must be continuous thru life of projectRisk management must be continuous thru life of project Risk & opportunity go hand in handRisk & opportunity go hand in hand
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SEI on RiskSEI on Risk
"Risk in itself is not bad; risk is essential to progress, and "Risk in itself is not bad; risk is essential to progress, and failure is often a key part of learning. But we must learn to failure is often a key part of learning. But we must learn to balance the possible negative consequences of risk against balance the possible negative consequences of risk against
the potential benefits of its associated opportunity."the potential benefits of its associated opportunity."
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Sources of Project RiskSources of Project Risk
General sourcesGeneral sources environmental (largely uncontrollable)environmental (largely uncontrollable)
external, e.g. government regulationsexternal, e.g. government regulations internal, e.g. new division VPinternal, e.g. new division VP
technicaltechnical marketmarket financialfinancial peoplepeople
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Sources of Project Risk (cont.)Sources of Project Risk (cont.)
What goes wrong with projects in your environment?What goes wrong with projects in your environment? Standish top five success factorsStandish top five success factors
user involvement, management support, requirements user involvement, management support, requirements greed/understood, planning, realistic expectationsgreed/understood, planning, realistic expectations
Verzuh top fiveVerzuh top five agreed goals, planning, communication, controlled scope, agreed goals, planning, communication, controlled scope,
management supportmanagement support
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Verzuh on Risk ManagementVerzuh on Risk Management
Selecting right project is business risk; managing uncertainty Selecting right project is business risk; managing uncertainty is project riskis project risk
Identifying risks – involve stakeholdersIdentifying risks – involve stakeholders Risk Profiles: Risk Profiles: questionnaire addressing expected project risk areasquestionnaire addressing expected project risk areas
Guidelines:Guidelines: industry & organization specificindustry & organization specific address both product & mgt risksaddress both product & mgt risks gauge magnitude of risk – high/medium/lowgauge magnitude of risk – high/medium/low
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Verzuh (cont.)Verzuh (cont.)
Dealing with risk Dealing with risk (make a decision)(make a decision) AcceptAccept – understanding risks, consequences, probabilities, – understanding risks, consequences, probabilities,
react if happensreact if happens AvoidAvoid – change scope to avoid, accept “low risk– low – change scope to avoid, accept “low risk– low
return”return” MonitorMonitor – contingency plans ready, e.g. at DIA back-up – contingency plans ready, e.g. at DIA back-up
baggage handlingbaggage handling TransferTransfer – contract, outsource, insure (but remember win— – contract, outsource, insure (but remember win—
win)win) MitigateMitigate – work hard to reduce risk – work hard to reduce risk
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Top 10 Risk Item TrackingTop 10 Risk Item Tracking
Tool for maintaining awareness of risk throughout life of a Tool for maintaining awareness of risk throughout life of a projectproject
Establish periodic review of the 10 project risk itemsEstablish periodic review of the 10 project risk items List current/previous ranking, number of times the risk List current/previous ranking, number of times the risk
appears on list over time, summary of progress made in appears on list over time, summary of progress made in resolving each risk itemresolving each risk item
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Top 10 Risk Item Tracking ExampleTop 10 Risk Item Tracking Example
Monthly Ranking
Risk Item This
Month
Last
Month
Number of Months
Risk Resolution Progress
Inadequate planning
1 2 4 Working on revising the entire project plan
Poor definition of scope
2 3 3 Holding meetings with project customer and sponsor to clarify scope
Absence of leadership
3 1 2 Just assigned a new project manager to lead the project after old one quit
Poor cost estimates
4 4 3 Revising cost estimates
Poor time estimates
5 5 3 Revising schedule estimates
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Expert JudgmentExpert Judgment
Many organizations rely on intuitive feelings & past Many organizations rely on intuitive feelings & past experience of experts to help identify potential project risksexperience of experts to help identify potential project risks
Experts categorize risks as high, medium, low with or Experts categorize risks as high, medium, low with or without more sophisticated techniqueswithout more sophisticated techniques
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Results of Effective ProjectResults of Effective ProjectRisk ManagementRisk Management
Unlike crisis management, good project risk management often Unlike crisis management, good project risk management often goes unnoticedgoes unnoticed
Well-run projects appear almost effortless, but a lot of work goes Well-run projects appear almost effortless, but a lot of work goes into running a project wellinto running a project well
Project managers should strive to make their jobs look easy to Project managers should strive to make their jobs look easy to reflect the results of well-run projectsreflect the results of well-run projects
Duck on water – smooth on top, but underneath paddling like hell Duck on water – smooth on top, but underneath paddling like hell to keep afloatto keep afloat
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EstimatingEstimating
““Project best understood by breaking it down into its parts”Project best understood by breaking it down into its parts” Work Breakdown Structure (WBS)Work Breakdown Structure (WBS)
powerful tool for doing this (not just a task list)powerful tool for doing this (not just a task list) defines the total scope of the projectdefines the total scope of the project fundamental to much of project planning & trackingfundamental to much of project planning & tracking
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WBSWBS
Start at top, progressively break work down (tree structure) Start at top, progressively break work down (tree structure) into work packagesinto work packages
Roll up the packages for bottom up estimatingRoll up the packages for bottom up estimating Packages give clear work assignmentsPackages give clear work assignments For chart form of a WBS see Verzuh page 103For chart form of a WBS see Verzuh page 103 For outline (list) form see Verzuh page 104For outline (list) form see Verzuh page 104
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Realistic EstimatingRealistic Estimating
Lots of reasons for poor estimatesLots of reasons for poor estimates inexperience, technical problems, changes optimists, low-inexperience, technical problems, changes optimists, low-
balling, politicsballing, politics Bottom-up cost estimatingBottom-up cost estimating
rollup the WBS packagesrollup the WBS packages Top-down or Parametric estimatingTop-down or Parametric estimating
from experience to complex modelsfrom experience to complex models
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Realistic Estimating (cont.)Realistic Estimating (cont.)
Which technique is better?Which technique is better? ideally use bothideally use both early on don’t have WBS so must use top-downearly on don’t have WBS so must use top-down accuracy of top-down depends on availability/quality accuracy of top-down depends on availability/quality
of historical dataof historical data building complete WBS can be expensivebuilding complete WBS can be expensive but guesses can be even more costlybut guesses can be even more costly
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Developing Project ScheduleDeveloping Project Schedule
Base documentsBase documents Project charter – start/end dates, budget Project charter – start/end dates, budget Scope statement & WBS -- what will be doneScope statement & WBS -- what will be done
Activity definitionsActivity definitions develop more detailed WBSdevelop more detailed WBS plus supporting explanations to understand all work to plus supporting explanations to understand all work to
be donebe done
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Scheduling Tools & MethodsScheduling Tools & Methods
Gantt ChartsGantt Charts Critical Path Method (CPM)Critical Path Method (CPM) Program Evaluation and Review Technique (PERT)Program Evaluation and Review Technique (PERT) Time BoxesTime Boxes Critical Chain (Theory of Constraints)Critical Chain (Theory of Constraints)
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Activity SequencingActivity Sequencing
Review activities; determine dependenciesReview activities; determine dependencies Mandatory dependencies: inherent in the nature of the work; Mandatory dependencies: inherent in the nature of the work;
hard logichard logic Discretionary: defined by the project team; soft logicDiscretionary: defined by the project team; soft logic External: involve relationships between project and external External: involve relationships between project and external
activitiesactivities Must Must determine dependencies to use critical path analysisdetermine dependencies to use critical path analysis
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Gantt ChartsGantt Charts
Created 1800Created 1800 Standard format for displaying project schedulesStandard format for displaying project schedules
activities, durations, start/end finish dates displayed in activities, durations, start/end finish dates displayed in calendar formatcalendar format
AdvantagesAdvantages enforces planningenforces planning easy to create & understandeasy to create & understand preferred for summary/exec-level informationpreferred for summary/exec-level information
Bar chart: simplified versionBar chart: simplified version
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Sample Tracking Gantt ChartSample Tracking Gantt Chart
white diamond: slipped milestone
two bars: planned and actual times
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Critical Path Method (CPM)Critical Path Method (CPM)
Developed 1957Developed 1957 CPM diagram shows:CPM diagram shows:
activities, durations, start/end dates & activities, durations, start/end dates & sequencesequence in which in which they must be completedthey must be completed
Critical path for project:Critical path for project: series of activities that determines series of activities that determines earliest timeearliest time by which by which
project can be completedproject can be completed Critical path is Critical path is longest pathlongest path through network diagram through network diagram
has least (zero) slack or floathas least (zero) slack or float
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CPM (cont.)CPM (cont.)
Critical path helps you make schedule trade-offsCritical path helps you make schedule trade-offs Slack or floatSlack or float : :
amount of time activity can be delayed without delaying amount of time activity can be delayed without delaying early start of dependent activitiesearly start of dependent activities
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Simple Example of Determining Simple Example of Determining Critical PathCritical Path
consider following network diagramconsider following network diagram assume all times in daysassume all times in days
2 3
4
5
A=2 B=5C=2
D=7
1 6
F=2
E=1
start finish
a. How many paths are on this network diagram?
b. How long is each path?
c. Which is the critical path?
d. What is the shortest amount of time needed to complete this project?
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PERTPERT
Developed 1959 for Polaris projectDeveloped 1959 for Polaris project Similar to CPM but addresses uncertainties in task Similar to CPM but addresses uncertainties in task
durationsdurations Uses probabilistic time estimates – optimistic, most likely, Uses probabilistic time estimates – optimistic, most likely,
pessimistic estimates of activity durationspessimistic estimates of activity durations Hence reduces Hence reduces RisksRisks associated with estimating associated with estimating
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PERT Formula and ExamplePERT Formula and Example
PERT weighted averagePERT weighted average formulaformula:: optimistic time + 4X most likely time + pessimistic timeoptimistic time + 4X most likely time + pessimistic time
66 Example:Example:
PERT weighted average =PERT weighted average =
8 workdays + 4 X 10 workdays + 24 workdays8 workdays + 4 X 10 workdays + 24 workdays = 12 days = 12 days
66
where 8 = optimistic time, 10 = most likely time, and 24 = pessimistic timewhere 8 = optimistic time, 10 = most likely time, and 24 = pessimistic time
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Selecting Scheduling ApproachSelecting Scheduling Approach
Consider project size, risk and complexityConsider project size, risk and complexity GanttGantt
senior managementsenior management smaller, less complex projectssmaller, less complex projects
CPMCPM medium size/complexity/riskmedium size/complexity/risk
PERTPERT high risk projectshigh risk projects medium to high complexitymedium to high complexity
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Time Box SchedulingTime Box Scheduling
Deals with delivering in short time framesDeals with delivering in short time frames Focuses on prioritizationFocuses on prioritization Facilitator brings stakeholders together to agree on Facilitator brings stakeholders together to agree on
prioritiespriorities It’s customer–developer It’s customer–developer partneringpartnering
win-win win-win Compromise on scope to achieve early deliveryCompromise on scope to achieve early delivery
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Critical Chain SchedulingCritical Chain Scheduling
Addresses challenge of meeting or beating project finish datesAddresses challenge of meeting or beating project finish dates Application of the Theory of Constraints (TOC)Application of the Theory of Constraints (TOC) Developed by Eliyahu Goldratt in his books Developed by Eliyahu Goldratt in his books The Goal & Critical ChainThe Goal & Critical Chain Method of scheduling that takes limited resources into account Method of scheduling that takes limited resources into account
when creating project schedule & includes buffers to protect when creating project schedule & includes buffers to protect completion datecompletion date
Assumes resources do not multitask as it often delays task Assumes resources do not multitask as it often delays task completions & increases total durationscompletions & increases total durations
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Critical Chain (cont.)Critical Chain (cont.)
Simple view:Simple view: in critical situation, don’t try to strengthen all of the in critical situation, don’t try to strengthen all of the
links in the chainlinks in the chain focus on the weakest linkfocus on the weakest link
Some organizations view as best thing since sliced breadSome organizations view as best thing since sliced bread But does it sound like common sense?But does it sound like common sense?
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Break then Case DiscussionBreak then Case Discussion
Risk Management caseRisk Management case
Guest Diane Luther (Ventana Group)Guest Diane Luther (Ventana Group)
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Embracing & Managing Change Embracing & Managing Change
Change will happenChange will happen Are we prepared to deal with it?Are we prepared to deal with it?
blurred visionsblurred visions rubber baselinesrubber baselines fluctuating prioritiesfluctuating priorities
All contribute to:All contribute to: Scope creepScope creep schedule slippagesschedule slippages cost overrunscost overruns customer dissatisfactioncustomer dissatisfaction
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Sources of ChangeSources of Change
CChanging players hanging players Folks change their mindsFolks change their minds Budget instabilityBudget instability Technology keeps changingTechnology keeps changing Changing competitive environmentChanging competitive environment The economyThe economy
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Change Management StrategiesChange Management Strategies
Develop pro-change mind-setDevelop pro-change mind-set only 16 % Prometheanonly 16 % Promethean ““If it ainIf it ain==t broke, dont broke, don==t fix itt fix it@@ in revolutionary times, traditionalists crushed beneath in revolutionary times, traditionalists crushed beneath
tidal wave of changetidal wave of change innovation often comes from outsideinnovation often comes from outside
Learn how/when to Learn how/when to AAgo with the flowgo with the flow@@ And when to resist changeAnd when to resist change
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Developing Pro-Change Developing Pro-Change MindsetMindset
ThroughThrough education & training education & training Upside-down thinking, in order to thrive in turbulent timesUpside-down thinking, in order to thrive in turbulent times Think multiple customers & stakeholders, not just oneThink multiple customers & stakeholders, not just one Use crises to change traditional attitudes & focus on new Use crises to change traditional attitudes & focus on new
ways of doing thingsways of doing things
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Configuration Management (CM)Configuration Management (CM)
Resist change via bureaucracyResist change via bureaucracy Change control via CMChange control via CM
Rigorously screen changesRigorously screen changes formal process for assessing meritformal process for assessing merit major or minor impact?major or minor impact? if major goes to Change Control Board (CCB)if major goes to Change Control Board (CCB)
document changesdocument changes update baselineupdate baseline
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Change Control ProcessChange Control ProcessWritten change proposal
CCB Review
Rework proposal
proposal deigned, documented, implementation schedule
CCB reviews
Proposal implemented
Rework proposal
stop
Written change proposal
stop
Rework
Rejected
Rework
RejectedAccepted in product
Accepted for impact study
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Change Management (Harris)Change Management (Harris)
Accept all written change proposalsAccept all written change proposals Project team assesses impactProject team assesses impact
cost, staff, schedulecost, staff, schedule Change team* reviewsChange team* reviews
value, importance (politically weighted)value, importance (politically weighted) triagetriage add to scope, phase II, phase IIIadd to scope, phase II, phase III
* * Key stakeholders, project managerKey stakeholders, project manager
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Project CommunicationProject Communication
Failure to communicate effectively often greatest threat to project Failure to communicate effectively often greatest threat to project successsuccess
Communication is oil that keeps project running smoothlyCommunication is oil that keeps project running smoothly StakeholdersStakeholders
who needs to know what, when (how often) & how?who needs to know what, when (how often) & how? constant, effective communication among everyone involved in constant, effective communication among everyone involved in
projectproject formal, informal, written, verbalformal, informal, written, verbal
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Communications (cont.)Communications (cont.)
Need formal communications planNeed formal communications plan plus informal supplementation as requiredplus informal supplementation as required
Integrated with overall project planIntegrated with overall project plan Conflict is endemic to project, need skills to manageConflict is endemic to project, need skills to manage
confrontation (aka problem solving mode)*confrontation (aka problem solving mode)* compromisecompromise smoothingsmoothing forcingforcing withdrawal (least desirable in projects)withdrawal (least desirable in projects)
* project management is all about solving problems quickly & * project management is all about solving problems quickly & effectivelyeffectively
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Communications (cont.)Communications (cont.)
Make assignments crystal clearMake assignments crystal clear Running meetings effectively is key skillRunning meetings effectively is key skill Individual status meetingsIndividual status meetings
spend regular, quality time with each team memberspend regular, quality time with each team member Kick-off meeting (see Verzuh)Kick-off meeting (see Verzuh)
need clear, decisive startneed clear, decisive start
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Effective Meetings (Verzuh)Effective Meetings (Verzuh)
Five rulesFive rules agenda in advanceagenda in advance
everyone should come preparedeveryone should come prepared
begin/end on timebegin/end on time avoid long meetings (one hour if practical)avoid long meetings (one hour if practical)
for each agenda itemfor each agenda item pass on informationpass on information come to decisioncome to decision stay on trackstay on track
Draw people outDraw people out silence not necessarily consentsilence not necessarily consent
Record decisions & action assignmentsRecord decisions & action assignments keep on top of resulting action listkeep on top of resulting action list
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Project ProgressProject Progress
Monitoring, Tracking, Controlling, Managing Monitoring, Tracking, Controlling, Managing How does a project get to be six months late?How does a project get to be six months late? Control versus RiskControl versus Risk
control – track progress, detect variances in plan, take control – track progress, detect variances in plan, take corrective actioncorrective action
Balance risk & controlBalance risk & control
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Monitor & ControlMonitor & Control
Progress reportsProgress reports current period, cumulative, exception, variancecurrent period, cumulative, exception, variance Level of detailLevel of detail
activity manager – detailed, granularactivity manager – detailed, granular project manager – all open activitiesproject manager – all open activities senior management – graphical, exception, milestonessenior management – graphical, exception, milestones use WBS chartsuse WBS charts
Graphical reports – Gantt, milestone chartsGraphical reports – Gantt, milestone charts
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Problem Tracking & ManagementProblem Tracking & Management
Daily – project manager tracks progress against schedule & Daily – project manager tracks progress against schedule & problems problems
Successful problem managementSuccessful problem management identify before happen or at least at first symptomsidentify before happen or at least at first symptoms put recovery plans in place – don’t delayput recovery plans in place – don’t delay
Problem management processProblem management process identify & determine criticality (80-20)*identify & determine criticality (80-20)* assign an ownerassign an owner document recovery plandocument recovery plan Monitor progress, daily if criticalMonitor progress, daily if critical
* prioritize* prioritize
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Measuring Work PerformanceMeasuring Work Performance
PM “jokes”PM “jokes” last 10% of project takes 50% of the worklast 10% of project takes 50% of the work projects stuck at 90% for monthsprojects stuck at 90% for months
Problem not sudden insurmountable obstacles – it’s inaccurate Problem not sudden insurmountable obstacles – it’s inaccurate measurementmeasurement
Percentage of work completed too open to subjectivityPercentage of work completed too open to subjectivity Cost & schedule are 2/3 of cost, schedule, quality equilibrium, Cost & schedule are 2/3 of cost, schedule, quality equilibrium,
so we measure themso we measure them
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Integrated Cost & Schedule ControlIntegrated Cost & Schedule Control
Graphical approachGraphical approach Compare actual against planned /projected costs ($)Compare actual against planned /projected costs ($) ProblemsProblems
but $ spent don’t indicate actual work completedbut $ spent don’t indicate actual work completed Accounting information often lagsAccounting information often lags
Hence Earned Value approachHence Earned Value approach determine value of work completeddetermine value of work completed
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Earned Value Chart for Project Earned Value Chart for Project (After Five Months)(After Five Months)
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Earned Value ApproachEarned Value Approach
Developed in 1960s for large defense projects; now used in smaller Developed in 1960s for large defense projects; now used in smaller projectsprojects
50-50 rule assumes task 50% complete when started, 100% when 50-50 rule assumes task 50% complete when started, 100% when completedcompleted
Compare earned value to planned costsCompare earned value to planned costs Collecting dataCollecting data
large projects employ cost account managerslarge projects employ cost account managers for smaller projects, use 50-50 rule, take advantage of for smaller projects, use 50-50 rule, take advantage of
milestones, or can guess using experiencemilestones, or can guess using experience Limitations of earned valueLimitations of earned value
availability of accurate, timely dataavailability of accurate, timely data educational; need organizational understandingeducational; need organizational understanding
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OutsourcingOutsourcing
Control costsControl costs Focus on core workFocus on core work Expand resourcesExpand resources Underlying rationale economicUnderlying rationale economic
bigger no long betterbigger no long better replaced by lean and meanreplaced by lean and mean focus on core activitiesfocus on core activities with outside resources to cover auxiliary with outside resources to cover auxiliary
goods/servicesgoods/services
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Outsourcing (cont)Outsourcing (cont)
Outsourcing is part of project manager’s toolkitOutsourcing is part of project manager’s toolkit contracting skills essentialcontracting skills essential motivating staff who donmotivating staff who don==t work directly for yout work directly for you strongest motivator is opportunity for self growthstrongest motivator is opportunity for self growth
Outsource all or major part of projectOutsource all or major part of project ““Don’t underestimate risks of outsourcing”Don’t underestimate risks of outsourcing”
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Outsourcing (cont)Outsourcing (cont)
ContractsContracts Fixed-price contracts, OK for routine Fixed-price contracts, OK for routine
implementations, not for high risk developmentimplementations, not for high risk development Cost-plus contracts, contractor paid costs plus a fee Cost-plus contracts, contractor paid costs plus a fee
(profit), variations to reduce excessive expenditure(profit), variations to reduce excessive expenditure Cost-plus-fixed-fee, fee independent of costs, Cost-plus-fixed-fee, fee independent of costs,
attractive to contractors in high risk projectsattractive to contractors in high risk projects cost-plus-incentive-fee, carrot and stick, incentive to cost-plus-incentive-fee, carrot and stick, incentive to
keep down costs keep down costs cost-plus-award-fee, award pool & level of award by cost-plus-award-fee, award pool & level of award by
committeecommittee
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Contracting ProcessContracting Process
Source selection, competitive bid, sole source, informal selectionSource selection, competitive bid, sole source, informal selection RFP provides bidders with format for proposalRFP provides bidders with format for proposal
for software projects usual to include comprehensive for software projects usual to include comprehensive Statement of Work (SOW)Statement of Work (SOW)
RFP for major project can be project in & of itselfRFP for major project can be project in & of itself Evaluating bidsEvaluating bids
establish evaluation criteria, (cost only one factor)establish evaluation criteria, (cost only one factor) best & final offer from short-listed biddersbest & final offer from short-listed bidders
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Contracting Process (cont)Contracting Process (cont)
Contract negotiationsContract negotiations rights, penalties, payment schedule, fee structure, schedule of rights, penalties, payment schedule, fee structure, schedule of
deliveriesdeliveries Post-awardPost-award
monitoring, regular say monthly reviews, attention to cost & monitoring, regular say monthly reviews, attention to cost & schedules variances, milestones, need change control processschedules variances, milestones, need change control process
Acceptance & handoverAcceptance & handover customer determines if terms & conditions of contract metcustomer determines if terms & conditions of contract met differences rooted in interpretationdifferences rooted in interpretation problems often due to parties not having resolved different problems often due to parties not having resolved different
perspectives, others to dynamic nature of projectsperspectives, others to dynamic nature of projects
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Joint Project Planning (JJP) Joint Project Planning (JJP)
Variety of joint planning processesVariety of joint planning processes JPP (Wysocki chapter 11)JPP (Wysocki chapter 11) Structured sessionStructured session
facilitator essentialfacilitator essential key stakeholder involvedkey stakeholder involved
Objective clear & simpleObjective clear & simple develop project plan; negotiated between requestors & develop project plan; negotiated between requestors &
providersproviders
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PM Policies & PracticesPM Policies & Practices
Consistent policies & practices throughout organizationConsistent policies & practices throughout organization SEI:SEI:
consistent approach to managing project consistent approach to managing project 75% cost 75% cost reductionreduction over different practices for each project over different practices for each project
consistent management practices essentialconsistent management practices essential development practices can varydevelopment practices can vary
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PM Policies & PracticesPM Policies & Practices
One policy does not fit all projectsOne policy does not fit all projects Different practices for different types of projects, e.g.Different practices for different types of projects, e.g.
small, medium, largesmall, medium, large small, internal, externalsmall, internal, external practices for above should become progressively practices for above should become progressively
more rigorousmore rigorous
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Project Support OfficeProject Support Office
SupportSupport is operative word is operative word Develops, documents, promotes PM policies & practicesDevelops, documents, promotes PM policies & practices Admin support (paperwork)Admin support (paperwork) Consulting, mentoring on planning etc.Consulting, mentoring on planning etc. Organizational PM awareness, trainingOrganizational PM awareness, training
VerzuhVerzuh
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Project Support Office (cont.)Project Support Office (cont.)
Support unit to project managersSupport unit to project managers PM standardsPM standards Manage communicationsManage communications Admin supportAdmin support Provide trainingProvide training Mentoring roleMentoring role Facilitate deployment (of PM staff)Facilitate deployment (of PM staff)
WysockiWysocki
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Organization WideOrganization Wide
Today many Today many project-based enterprisesproject-based enterprises PM policies & practices not just for active project participantsPM policies & practices not just for active project participants Increase PM competencies throughout organizationIncrease PM competencies throughout organization
management, employees, contractorsmanagement, employees, contractors Spectrum of PM trainingSpectrum of PM training
Everyone should comprehend fundamentalsEveryone should comprehend fundamentals
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Cultural ChangeCultural Change
Process change relies cultural changeProcess change relies cultural change Not an easy task due to people issuesNot an easy task due to people issues Takes years rather than monthsTakes years rather than months Project support office staff should be evangelistsProject support office staff should be evangelists Boeing:Boeing:
Experiment, learn from users what adds value & what Experiment, learn from users what adds value & what does not . . .does not . . .
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Project ClosureProject Closure
““Those who cannot remember the past are Those who cannot remember the past are condemned to repeat it.”condemned to repeat it.”
George SantayanaGeorge Santayana
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Project ClosureProject Closure
Too often avoidance rather than effective closure; recallToo often avoidance rather than effective closure; recallSix Phases of a ProjectSix Phases of a Project1)1) EnthusiasmEnthusiasm2)2) DisillusionmentDisillusionment3)3) PANICPANIC4)4) Search for GuiltySearch for Guilty5)5) Punishment of InnocentPunishment of Innocent6)6) Praise & Honors for Non-ParticipantsPraise & Honors for Non-Participants
148© 2010 Nkumbwa™. All Rights Reserved.
Effective ClosureEffective Closure
Ensure all deliverables installedEnsure all deliverables installed including documentationincluding documentation
Stakeholder acceptance of deliverablesStakeholder acceptance of deliverables Post-implementation review/auditPost-implementation review/audit Celebrate successCelebrate success
149© 2010 Nkumbwa™. All Rights Reserved.
Document The Project Document The Project
Project review & evaluationProject review & evaluation Final Deliverable – evaluation documentFinal Deliverable – evaluation document
Summary of project historySummary of project history project successesproject successes Failures/problemsFailures/problems Compare estimates to actualCompare estimates to actual
reasons/observations on differencesreasons/observations on differences
What should we learn?What should we learn? Do and not do next projectDo and not do next project
150© 2010 Nkumbwa™. All Rights Reserved.
Post-Implementation AuditPost-Implementation Audit
Evaluate project’s achievements against planEvaluate project’s achievements against plan budget, deadlines, specifications, quality of budget, deadlines, specifications, quality of
deliverables, client satisfactiondeliverables, client satisfaction Six questions:Six questions:
1.1. Project goal achieved?Project goal achieved?2.2. On time, within budget & per specs?On time, within budget & per specs?3.3. Client (stakeholder) satisfied?Client (stakeholder) satisfied?4.4. Business value realized?Business value realized?5.5. PM lessons learned?PM lessons learned?6.6. What worked, what didn’t?What worked, what didn’t?