02 BAH Understanding Project Management

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Presentation

Understanding Project ManagementThe role of project management in your organization

Belgrade, SerbiaMay 7, 2009

This document is confidential and is intended solely for the use and information of the client to whom it is addressed.



Project management is an approach that uses learned skills toboth plan and control a project

There are four major components thatidentify a project:

– a unique effort that produces a product orservice

– conforms to set requirements

– executed within a fixed time frame

– works within a budget

1Belgrade Conference Presentation FINAL.ppt

Examples include: – New mobile technology product

– Highway expansion/construction

– Systems implementation

Projects do not include business operations: – Ongoing customer support for services

– Collecting tolls to pay for expansion

– Systems administration



When projects are delivered correctly they can:

Expand product portfolios

– Faster product to market cycle

Improve customer satisfaction

– Build to customer requirements

Reduce production and operating costs


– Modernize and automate processes

Increase revenue

– Reduce invoicing periods

Accurately report progress

– Delivery dates

– Costs



New Projects are #1 Priority

Re-allocate

New ProjectTeam

Poorly managed projects can have greater impacts on the projectteam and overall organization

Visible Impacts Behavioral Impacts

Poor QualityInfrastructure

Interoperability Issues


Old ProjectsSlip

NewPriorities

Old Projects#1 Priority

The combined impact can reduce productivity, increase costs, reduce market share and divert an organization from its strategy

Escalating costsSlipped Schedules



There are four major symptoms of poorly managed projects

StakeholderFeedback

Common Causes Project Discipline

You are late! Lack of a project plan

Changing requirements increased scope andduration to complete

Failure to identify dependencies between tasks

Resources were not available

Project Planning

Change Management

Resource Management

This is not what I No agreement on the project’s scope Project Planning


asked for!

Limited design and project documentationFailure to incorporate changes

Change Management

You spent toomuch money!

Changing requirements increased scope andcost to complete

No project budget

Costs were not tracked

Cost Management

Change Management

This does notwork!

No agreement on the project’s scopeLimited design and project documentation

Failure to incorporate changes

No quality management plan

Project PlanningChange Management

Quality Management



Most project failures can be tied back to a few common issues

Lack of Executive Commitment

– Organization can’t support the project

– Poor internal communications

– Limited metrics or success measures

– Stakeholders not involved

Project is Misunderstood

Training

Expectations


– o ocumente requ rements

– Changes, changes, changes!!!

– Seen as simple - “that should be easy”

– Interdependencies not identified

Poor Project Leadership

– Lack of training & certifications

– Project Managers not mentored

MS Project is not the answer!

Project

Governance



Executive Leadership

Expectations

Constraints

Training

Processes &Templates

Project Managers

Organizations fix their Project Management problems bydeveloping their people’s skills


ProjectGovernance

ChangeManagement

ProfessionalCertifications

Mentoring



Get all stakeholdersto agree to scope

Document individualtasks and

responsibilities

Execute and

manage variances

Manage Changes

Closeout project &document lessons

Kick Off Project

Be willingto change

Project Management Best PracticesExample Roadmap

They also develop custom project management lifecycles


IdentifyProject Expectations

and TeamConsider identifying local consulting

firms with project managementexperience in Serbia that can help

you do this



Company X develops document management software forEuropean banks and insurance companies. It has 15 employees, 3executives and no project managers.

5 projects per year * €200,000/project = €1,000,000 revenue

– €180,000 cost/project = €900,000 costs = €100,000 in profit (10%)

Company X invests in project management

– €2,000 in project management training & certifications for 2 key employees

– €10,000 for project management strategy consulting

–


What does Company X get for its investment?

– 5% Improvement = €45,000 cost reduction

– 1 additional project = €29,000 profit

Consider that typical benefits run between a range of 5-15%



Recommendations to gain control of your projects

Identify all your projects – Document your scope – Identify delivery dates – Develop budgets

– Evaluate performance – Communicate to your Team(s)

Understand your Project Managers – Project Management expertise? – How are their projects performing – What challenges are they facing? – Determine what they need from you


Review your organization – Organization support this? – Clear project authority? – Stakeholders involved? – Repeatable processes in place? – Identify the gaps

Seek out professional help – Consultants/staff with deep skills – Join PMI & build your knowledge – Train your best staff – Push staff to achieve certification



Questions?


Peter Doyle, PMP

Booz Allen Hamilton

[email protected]

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02 BAH Understanding Project Management