11/14/2015Author: Prof. Dr.Tomas Ganiron Jr1 CHAPTER FIVE 5-PLANNING PROCESS 5-1 Quality plan 5-2 Communication Plan 5-3 Implementation Plan 5-4 Change

04/20/23 Author: Prof. Dr.Tomas Ganiron Jr 1

CHAPTER FIVE 5-PLANNING PROCESS

5-1 Quality plan5-2 Communication Plan5-3 Implementation Plan5-4 Change Plan 5-5 Risk Plan5-6 Contracting


Quality

Meskimen’s LawWhen they want it bad,

they get it bad.

4-1 Quality

Quality means many things to many peopleQuality ISO 8402: “the totality of features and

characteristics of a product or service that bear on its ability to satisfy started or implied needs”.



Definitions: Quality

Fitness for use

Features they want

Customer value

Conformance to specifications.

Problems they don’t want.

Zero defects.

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Quality vs. Grade

• Grade — a category or rank given to entities having the same functional use but different requirements for quality:

– Ford Escort vs. BMW 635i


Cost of Quality

• Cost of conformance:– Prevention costs– Appraisal (inspection) costs

• Cost of non-conformance:– Internal failure costs — fixes prior to delivery– External failure costs — fixes after delivery

4-1 Quality plan

This plan details :• Quality assurance

– Establish organisational procedures and standards for quality.

• Quality planning– Select applicable procedures and standards for

a particular project and modify these as required.

• Quality control– Ensure that procedures and standards are

followed by the software development team.• Quality management should be separate from

project management to ensure independence.


Process-based quality


Define processDevelopproduct

Assess productquality

Standardiseprocess

Improveprocess

QualityOK

No Yes


Quality assurance and standards

Standards are the key to effective quality management.

They may be international, national, organizational or project standards.

Product standards are specifications and criteria for the characteristics of products

Process standards are criteria for the way the products are made


An Introduction toSix Sigma


What Is Six Sigma? • Degree of variation;• Level of performance in terms of defects;• Statistical measurement of process capability;• Benchmark for comparison;• Process improvement methodology;• It is a Goal;• Strategy for change;• A commitment to customers to achieve an

acceptable level of performance


Sigma Level

Defects Per Million Opportunities

Rate of Improvement

1 690,000

2 308,000 2 times

3 66,800 5 times

4 6,210 11 times

5 230 27 times

6 3.4 68 times


ControlControlDefineDefine MeasureMeasure AnalyzeAnalyze ImproveImprove

Establish standards to maintain process;

Design the controls, implement and monitor.

Evaluate financial impact of the project

Identify, evaluate and select projects for improvement

Set goalsForm

teams.

Collect data on size of the selected problem,

identify key customer requirements,

Determine key product and process characteristic.

Analyze data, establish and confirm the “ vital few “ determinants of the performance.

Validate hypothesis

Improvement strategy

Develop ideas to remove root causes

Design and carry out experiments,

Optimize the process.

Final solutions

Six Sigma Project Phases

4-2 Communications plan

The objectives of the Communication Plan are:

Help manage expectations regarding the project. Ensure methods used for communication will be most

effective. Assure appropriate levels of communication with internal and

external project stakeholders. Provide relevant, accurate, consistent information at all

times. Generate and sustain enthusiasm and support for the project



COMMUNICATIONS PLAN OUTLINE MODEL Name of Project:Date: ____________

1. Intended audience(s)?

2. What is the main message we wish to communicate? What are secondary messages, and messages for

different audiences?

3. Time frame?

4. What relevant research, data (surveys, focus group results, similar projects elsewhere, etc.) are or will soon become available?

5. Why communicate? What do we want people to do as a result?


6. Activities/publications/events associated with the plan

7. Resources required: funds; skills; equipment, supplies; staff time, temporaries, consultants

8. Who has primary responsibility? Who are the collaborators/helpers/supporters?

9. Who is responsible for internal communications around this plan, what needs to be done?

10. How will we evaluate/ /measure the success of the plan?

COMMUNICATIONS PLAN OUTLINE MODEL (cont)

4-3 Implementation plan

This plan details who will be affected, how they will be affected and the plans for transitioning the change.

It ensures you have considered training and after change support, What will happen when the project winds up?



Project plan: EHR ImplementationTask Duration Start FinishAssessment 5 days 1/8/06 1/13/06Select product selection group

0.5 days 1/9/06 1/9/06

Select project development team

0.5 days 1/9/06 1/9/06

Complete needs assessments

2 days 1/9/06 1/10/06

Develop project charter

5 days 1/9/06 1/13/06

Develop preliminary budget

3 days 1/9/06 1/11/06

Document current workflows

5 days 1/9/06 1/13/06

Implementation Project Plan Model

4-4 Change Plan

Helpful tools for managing change are :

The Action and/or Issue register and The Change Control form/register.

What these two documents do is : Help you control the issues/risks/actions that people are

raising Help change will affect your project outcomes (time, cost or

scope)


Change Plan

Change process make sure the change is :

identified and approved.

Just because someone thinks a change would be a good idea doesn’t mean it should be added to your project.

Once you start to deliver something amazing, everyone will want to have a say. The challenge is to manage their expectations without compromising your original plan.


Author: Prof. Dr.Tomas Ganiron Jr 22

Four Project Baselines

• Scope baseline = progressively detailed product description

• Stakeholder satisfaction baseline = project success criteria

• Cost baseline = budget• Schedule baseline = schedule

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Types of Changes

• Scope changes (modify product documentation and often project plan):

– Requirements changes– Clarifications– Site emergencies

• Work changes (modify project plan):– Resource changes– Modified approach– Corrective action


Evaluating Change Requests

• All change requests are documented:– Emergency changes are documented after the

fact.– Non-emergencies are documented before

being considered.

• Change requests should be documented by the requestor.

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First Level Approvalof Change Requests

• Usually provided by the project manager or a senior team member:

– Are the expected benefits significant enough to merit further investigation?

• Implications:– Must have budget for this work!– Benefits may include cost avoidance– Organizational politics must be considered

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Second Level Approval of Change Requests

• Usually provided by a Change Control Board (CCB):

– Do the expected benefits outweigh any negative impacts?

• Implications:– Must have budget for this work!– Benefits may include cost avoidance– Organizational politics must be considered

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Change Control Board

• A formally constituted group responsible for approving or rejecting change requests.

• Powers and responsibilities should be well-defined and agreed upon in advance.

• On larger, more complex projects, there may be multiple CCBs.

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Change Plan Model




4-5 Risk Plan

Project risk management does not deal with future decisions, but with the future of present

decisions.With apologies to

Peter Drucker


Definition: Risk

• The possibility of suffering harm or loss. (American Heritage Dictionary)

• The potential for realizing unwanted, negative consequences from an event. (Rowe)

• More things can happen than will happen. (Dimson)

Risks are always in the future!


Risks, Problems,and Responses

Risk

Risk Response

Problem

Problem Response


Risk Management Processes: Identify

Prioritize

Respond

Monit

or

Identify


Two Main Parts to a Risk Statement

• Cause• Source• Event• Condition

• Effect• Impact• Outcome• Consequence

If this happens and we do nothing …

… that this will happen

… there is a very real chance …


A StructuredRisk Statement

Given that{cause or condition} …

there is a very real chance that {optional interim cause/effect} …

[such that {this success criteria}will be {affected in this way}.]

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Sample Risk Statement

Given that issues with the customer cannot be resolved in a timely fashion

there is a very real chance thatconfusion and disagreements over requirements may occur

such that our cost and schedule toleranceswill be exceeded.

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Review Project Success Criteria

• Start risk identification by reviewing your project success criteria:

– Product success– Project management success

• Document what could interfere:– Consider causes of problems from past projects– Use risk taxonomies (see next slide)

• Brainstorm what else could go wrong.


Risk Taxonomy

• Definition — domain specific classification or categorization of risks.

• Objective — help to ensure that the most common risk causes have been identified.

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Specific classification or Categorization of risks. (A Simple Taxonomy)

• Environment — war, famine, flood, and pestilence; terrorism, pollution

• Economy — currency rate changes, market conditions, competition

• Government — changes in laws and regulations

• Company actions — change in strategic direction, internal politics


… continued• Stakeholder actions — changes in

requirements, conflicts• Other projects — reliance on their staff or

their deliverables• Planning errors — WBS omissions, estimating

errors• Assumptions and constraints — things that

can go wrong


Types of Impacts

• Impacts may affect the project, the business, or another project.

• Typical impacts include:– Cost overruns– Schedule delays– Shortfalls in scope or quality– Stakeholder dissatisfaction– Multiple impacts

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Summary of Key Points

• Risks are always in the future.• You can never eliminate all risk.• Focus your attention on the most severe

risks.


4-6Negotiations

Learning Objectives• Upon completion, you should be able to:

– List the six foundations of negotiations– Identify five negotiating styles and four

categories of negotiations– Differentiate interests and positions– Prepare for a negotiation– Recognize and respond to a competitive

negotiation style04/20/23


Please allow me to introduce myself …

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We’d like to know a little bit about you for our files …

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Proposed Norms

• Start (and end) on time• Ask questions• Electronics on silent• Short frequent breaks• Have fun!

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Core Concepts

The road to success is always under construction.Lily Tomlin

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Module Overview

• Definitions• Types of negotiations• Should you negotiate?• Six Foundations• Four Stages

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Dictionary Definition

“To confer with another or others in order to come to terms or reach an agreement;

to arrange or settle by discussionand mutual agreement.”

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A Practitioner’s View

“Think of negotiation as a cooperative enterprise: common interests must be

sought.In a good negotiation,

everybody wins something.”

Gerard Nierenberg

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Definition: Successful Negotiation

• Both sides think the other was fair.• Both sides feel the other side cared about their

needs.• Both sides believe the other side will fulfill the

agreement.• Both sides are reasonably satisfied with the

agreement.• Both sides would negotiate together again.

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Type III:Transactions

Type II:Relationship

Type IV:Tacit Coordination

Concern for ResultsHighLow

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Type I:Balanced Concerns




Negotiating Situations

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… continued

• We will focus on Type I, Balanced Concerns, since that is the situation for most project negotiations.

• Each type of situation assumes that both sides have the same view — we will deal with what happens when the sides have different views later in the program.

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Should You Negotiate?

Not … if you are already in agreement.Not … if only one outcome is acceptable.Not … if time is of the essence and a decision

must be made.Not … if potential gains are not worth the

effort to prepare.

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NegotiationsIn a typical negotiation, the customer attempts to increase the performance specifications while reducing the schedule and the budgeted cost.

A common negotiation problem is deciding how to deal with the customer ‘s request to lower the price

If it is a competitive solicitation, the customer often will play off one prospective contractor against another to try to maximize his benefit

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Negotiations

Several things can help :

1-A good plan, well explained2-A clear understanding of your risk-response planning ( have you any padding? Any contingency budget?3-Management guidance , or clearance, on how much you can give up

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Negotiations

Several things can help :

4- A complete WBS with activity schedule and cost estimate can help to explain and defend to the prospective customer

5- A reputation for having met prior commitments

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Summary ofKey Points

• Negotiation is part art and part science.• Six Foundations define the concepts you

must master.• Four Stages define the process of

negotiating.

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Foundation 1:Your Negotiating Style

Nothing is quite as astonishing as common sense and plain dealing.Ralph Waldo Emerson

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Five Negotiating Styles


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N2. Collaborate

N1. Defeat

N3. Accommodate

N4. Withdraw

N5. Compromise

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Negotiating Style 5:Compromise

• Find an acceptable agreement:– Meet halfway.– Split the difference.– Look for trade-offs.

• Behavior in thoughtexperiment?

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Negotiating Style 3:Accommodate

• Accommodate the other party’s needs:– Good relationships produce good deals.– Maintain harmony.– Make concessions for the sake of the

relationship.


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Negotiating Style 1:Defeat

• Defeat the other party at any cost:– Drive a hard bargain.– Total victory is the goal.– There can be only one winner.


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Negotiating Style 4:Withdraw

• Withdraw and remove oneself:– Keep a low profile.– Results are beyond my influence.– Indifferent; resigned.


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Negotiating Style 2:Collaborate

• Work to build a win-win outcome:– Form a partnership.– Push for mutual gain.– Focus on problem-solving.


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What Style Do the Professionals Prefer?

• Of all lawyers:– 65% are consistently collaborative (N2)– 24% are consistently competitive (N1)

• Of those viewed as most effective:– 75% were consistently collaborative– 12% were consistently competitive

Study by Professor Gerald R. Williams

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… continued

• Irritators (i.e., insults, attacks):– Average negotiator = 10.8 per hour– Best negotiators = 2.3 per hour

• Emotion-laden comments:– Average negotiator = 6.3%– Best negotiators = 1.9%

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Personal Attributes ofthe Best Negotiators

• Listening skills• Willingness to prepare• Subject matter knowledge• Verbal communication ability• Analytic ability

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• Most people have a dominant or preferred style.

• Collaborative and cooperative behaviors are most successful.

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Module Overview

• Interests and positions• Discovering interests• Different kinds of interests

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Interests vs. Positions

• An interest is a need — it involves emotions and feelings.

Positions are (mostly) measurable and quantifiable.

• Interests are not negotiable — although they may change or new ones may be uncovered.

A position is one way to satisfy an interest.

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… continued

• Interests are the criteria we use to assess potential agreements — there are usually many positions that will satisfy our interests.

Positions are what we eventually agree to … but only when they satisfy our interests.

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Be Sure to Consider Personal Interests

• Ego, pride, and self-esteem• A need to win or be in control• Acceptance by others• Approval from others• Job pressures

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• Interests must be satisfied to reach agreement.

• Interests must be known to be satisfied.

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Sources of Authorityin Negotiations

• Position-based:– Corporate hierarchy– Documented policies and procedures

• Person-based:– Charisma– Knowledge– Connections

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Leverage

What Does Leverage Mean? the mechanical advantage gained by being in a position to use a lever.

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Understanding Leverage

• Leverage and power are not the same — power is objective, leverage is situational.

• Leverage changes over time — the side that most needs the deal now lacks leverage.

• Leverage is based on perception — the facts may not be relevant!

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Three Types of Leverage

• Positive — I have something you want.• Negative — I can cause you pain.• Normative — I can show you to be violating

the consistency principle.

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Sources of Leverage

• Time — project deadlines, fiscal year end• Competition — supply and demand• Marketability — name recognition• Opportunity — future business• Investment — emotional, financial• Environment — location, temperature, etc.

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… continued

• Information — public reports, body language, spoken comments

• Importance — strategic fit, financial impact• Pressure — from your boss• Composure — staying in control of yourself• Precedent — what happened last time?• Policy — law, ethics, procedures

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Threats

• Threats are usually made when I think I have leverage, but …

• When I make a threat, all of the outcomes mean trouble:

– You back down and resent it.– You don’t back down, I carry out my threat, our

relationship suffers.– You don’t back down, I don’t carry out my

threat, I lose credibility.

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Responding to Threats

• Control the urge to retaliate.• Acknowledge that a threat has been made by

explaining how the threat made you feel.• Restate the threat as a question.

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Type I:Balanced Concerns

Negotiating Situations

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Concern for SubstanceHighLow

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Collaborate

Defeat

Accommodate

Withdraw

Compromise

Negotiating Styles

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Con

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Collaborate

Defeat

Accommodate

Withdraw

Compromise

Styles and Situations,Matching Views

Balanced Concerns

Transactions

Relationship

Tacit Coordination

Y C Y C

Y CY C

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Match Your Styleto the Situation

• Type IV — Tacit Coordination– Example: getting seated on an airplane– Best strategies: withdraw, accommodate,

compromise

• Type III — Transactions– Example: purchase of a new car– Best strategies: defeat, collaborate,

compromise

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… continued

• Type II — Relationships– Example: marriage, repeat client– Best strategies: accommodate, collaborate,

compromise

• Type I — Balanced Concerns– Example: business merger, project staffing– Best strategies: collaborate, compromise

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Con

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Hig

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Collaborate

Defeat

Accommodate

Withdraw

Compromise

Styles and Situations,Unmatched Views

Balanced Concerns

Transactions

Relationship

Tacit Coordination

Y

C

Y C

Y

C

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Developing Options

• Options are positions that will satisfy someone’s interests.

• More options mean a greater chance of finding a position that will satisfy everyone’s interests.

• Your counterpart’s view of the options may differ from yours.

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Preparation Is Key

• Document your analysis — interests, emotions, options, opening positions, giveaways.

• Anticipate their reactions — particularly to your opening positions.

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• Different circumstances require different strategies.

• Tools can be helpful, but the thinking is still up to you.

• Preparation is key.

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• Probe first, then disclose.• Behave purposefully.• Don’t lose sight of your interests.

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4-7 Contracting for Project Managers

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Project Management Processes

Scope definition, cost estimating, scheduling,

risk management, team building, procurement,

change control, stakeholder management, etc.

Projects, Procurement, and Contracts

Procurement Processes

Planning Acquisition Contract Management


Contract

Contract

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Thesaurus (2):Buyer and Seller

• Different names:– Buyer = customer, sponsor, owner– Seller = vendor, supplier, contractor, provider

• Different perspectives:– For the buyer, the seller’s work is usually a

deliverable or subproject– For the seller, the contract is often a complete

project

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4-7 Contracting for Project Managers


ContractsContracts Definition of Contracts

An agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing.

Development of Contract Law◦ Common law once required all contracts to be

in writing, with a seal affixed.◦ Later, some payment was required before a

contract could be enforced.◦ Mutual promises became enforceable in the

1600’s.◦ By the 1900’s, courts began to consider the

fairness of contracts before enforcing them.


Contracts

• Legally binding obligations may be called:– Agreements– Contracts– Memoranda of understanding (MOU)– Purchase orders– Others?


Projects, Procurement, and Contracts

Project Management Processes

Scope definition, cost estimating, scheduling,

risk management, team building, procurement,

change control, stakeholder management, etc.


Planning Acquisition Contract Management


Contract

Contract


Buyer and Seller

• Different names:– Buyer = customer, sponsor, owner– Seller = vendor, supplier, contractor, provider

• Different perspectives:– For the buyer, the seller’s work is usually a

deliverable or subproject– For the seller, the contract is often a complete

project


Underlying Philosophy• The buyer and the seller:

– Both want to be successful– Both want the other to be successful– Both see value in the relationship

• The cost of prevention is always less than the cost of the cure:

– Contracts do not solve problems– Contracts help prevent problems


The Buyer/Seller Relationship

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–Differing Interests

Contract


Valid Contract: A contract is one which is in full force and enforceable by court of

action

VALID CONTRACT MUST:

A. Be between competent parties.B. Accomplish a lawful purpose.C. Include an offer and acceptance of

that offer.D. Involve an exchange of value.


A. Competent parties:– Legal age– With appropriate authority– Mentally competent

B. Lawful purpose:– Does not violate applicable laws– Compatible with public policy


C. Offer and Acceptance

• Anything said or done that shows a willingness to exchange value.

• Offers and acceptances may be:– Written– Spoken (with limitations)– Demonstrated through action


Example of Offer and Acceptance

• Offer — Projects wishes to engage PM Partners for project management consulting and training.

• Acceptance — PM Partners wishes to provide consulting and training to Projects and its clients.


D. Exchange of Value

• Both parties must receive something: – Financial or non-financial– Directly or indirectly

• Also called “consideration”


Example of Exchange of Value

• Buyer receives:– Financial value — product or service– Non-financial value — lower risk

• Seller receives:– Financial value — payment– Non-financial value — experience


Is It a Contract?Why or Why Not?

1. Promise to assassinate a political leader?2. Signed by chief engineer?3. Verbal instructions in emergency?4. Employment agreement for $1 per year.5. Verbal promise to build a new plant?6. Written note saying “I owe you $100.”


Penalties and Liquidated Damages

Contracts often provide that in case of a breach of the contract, the party aggrieved may collect from the other party a certain amount as liquidated damages, or simply damages. The courts will give effect to the intention of the parties provided the amount stated is, as a matter of fact, liquidated damages and not a penalty.


Documents

11/14/2015Author: Prof. Dr.Tomas Ganiron Jr1 CHAPTER FIVE 5-PLANNING PROCESS 5-1 Quality plan 5-2 Communication Plan 5-3 Implementation Plan 5-4 Change