Digital Business Overview

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Digital Business Overview

Chris Kedwell

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The Lowdown

• Organization Structure and Roles• Making Sure Projects are Profitable• Continuous Improvement• Tools

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Organization Structure and Roles

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Strategy

The Disciplines

Design TechnologyUser Experience

Measurement

SEO

Usability

InformationArchitecture

Account Management

Project Management

Quality Assurance

Operations

Business Development

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Structure and Roles

ClientServices

AccountMgmt

Manage client relationships, up-sell,client escalation point for projects.

ProjectMgmt

Plan, define scope, manage projects,manage project profitability, manage risks.

StrategyWork with client to define the overarching objectives for their digital initiatives.

Bus DevSales and Marketing – Developing pipeline and new relationships.

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Creative

Structure and Roles

DesignDesign the digital interface and all associated components.

UserExperience

Design the flow of the User Experience so thatthe site works from a user perspective.

IADocument the Information Architecture and map functionality to the design.

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Back-EndTech

Front-EndTech

Technology

Structure and Roles

Implement interface functionality andintegrate with back-end applications.

Develop required back-end functionality,database interaction, systems integration etc.

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Structure and Roles

Optimization

UsabilityEnsure that interfaces are usable, Holding focus groups as required to prove it.

Measure-ment

Analyze the performance of sites to make surethey meet the objectives defined by strategy.

SEOOptimize the sites from a performance andsearch engine perspective.

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Operations

Structure and Roles

ResourceMgmt

Assign the appropriate resources toprojects at the right time.

OfficeMgmt

Make sure that the office environmentis conducive to work.

ITMake sure the appropriate IT resources arein place at the right time.

FinanceManage billing, cash flow, AR/AP, ensuring thatthe business is viable.

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QualityAssurance

Structure and Roles

QAEnsure that the quality of the output from thegroup is at the required standard.

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Managing Projects Profitably

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Is the work worth doing?

• Decide on:– Minimum acceptable project budget– Minimum acceptable Gross Margin (GM)– Minimum acceptable Rate Per Hour (RPH)– Average Cost Per Role Per Hour (CPH)– Target Staff Utilization and Billability %– Maximum acceptable project risk score– Who decides!

• Examine project risk and financials• Make an informed decision!

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Set the type of relationship

• In order of preference:– Retainer– Time & Materials– Fixed Price

• Fixed Price usually wins out• Never do T&M with a cap as you will lose

money!

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Set things up properly

• Services Agreement• Statement of Work• Make sure scope is ultra-clear!• Don’t start work until the client signs, despite the

pressure.• Train your clients – they are not project managers.• Get client milestones/deliverables agreed and make

them understand the impact of missing them.• Get the client to understand the impact of scope

changes!

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Estimation

• Break down the project into its components• Discipline Leads estimate• Challenge them! Get them to think harder!• Add 20% QA to all development time• Add 30% Project Management to all time• Add 20% contingency to all time• Don’t negotiate yourself down – manage scope

instead!• Measure, refine, LEARN!

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Keeping the project under control

• Plan well and re-plan as necessary• Create a Risk Register• Resource project appropriately• Get everyone to relentlessly record their time• Monitor the GM• Monitor the RPH• Monitor Staff Utilization %• Manage the client tightly – if their deliverables slip, extend the

deadline or get more money• Keep a iron hand on scope creep• Manage risks and issues

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Keeping the business profitable

• Measure the Gross Margin of the department• Manage resources relentlessly – Maximize

Utilization and Billability• Use contractors appropriately, and at the right cost

level• Outsource what is not core at FIXED PRICE• Offshore work if possible• Re-evaluate the GM if scope or staffing changes• Make Project Management part of the DNA

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Continuous Improvement

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Measure, review, improve

• Project debrief, review, learning• Analyze estimation versus actual• Analyze GM - cost budget versus actual• Analyze staff performance• Risk and issue review• MAKE SURE LEARNINGS ARE APPLIED AND

NOT LOST!!!

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Tools

• GM Worksheet• Risk Assessment Worksheet• Resource Management Worksheet• Risk Register• Revenue Projection Worksheet• Timesheet System• Issue Tracking System• Project Management Tool

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Thank You

• Questions?

Chris KedwellManaging DirectorArachnechris.kedwell@arachne.ca+1 416 726 3386Twitter: ckedwellwww.arachne.ca