The Executive Perspective on Project Management · 2018. 7. 11. · The Project Charter ... In a nutshell, go/no criteria enables for reviewing key areas of the project as it progresses

The Executive Perspective on Project Management

The Role of the Leader in Project Management

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Table of Contents

The Executive’s Role in Project Management .............................................................................................. 5

Balance Being Informed vs. Getting Entrenched in Details ...................................................................... 7

Project Governance ...................................................................................................................................... 8

Selecting and Prioritizing Projects ................................................................................................................ 8

Selection Criteria ..................................................................................................................................... 10

Criterion Weighting Values ................................................................................................................. 13

Project Documentation ............................................................................................................................... 15

The Project Charter ................................................................................................................................. 16

The Project Scope Statement.................................................................................................................. 18

Resource Planning ....................................................................................................................................... 20

Two Key Meetings ....................................................................................................................................... 21

Checking in on Status .................................................................................................................................. 22

When You Need to Make a Decision ...................................................................................................... 22

Keep Tabs on the Project ........................................................................................................................ 23

Lessons Learned for Continuous Improvement .......................................................................................... 23

Next Steps ................................................................................................................................................... 24





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The Executive Perspective on Project Management

A project is any initiative that has a definitive start and end date. Projects have a defined scope (what will be done to achieve the desired objectives of the project) and have resources temporarily assigned to them. Projects are temporary endeavors undertaken to create a unique program, service or result. Unique may mean making changes to increase the efficiency of a service or program, or updating a program with new features. It does not have to mean brand new or innovative. Do not confuse projects with operations. Operations are ongoing and therefore have no definitive end date. For example, a process for communicating with members may need to be updated to include using social media. The process will become a project to update the channels used for communicating with members. Once the channels have been updated, e.g., a LinkedIn Group, a Facebook group, a Twitter account, the project will be concluded and the process (or operation) of communicating with members will be turned back over to the individuals responsible (e.g., communication or marketing group.)

Project management is the practice of applying knowledge, skills, tools and techniques to work initiatives to achieve specific goals and meet defined success criteria. Any staff member may be working on projects. Applying project management best practices to the initiatives to be accomplished within the association enables for meeting both short-term and long-term strategic goals. The work of the association is accomplished through the implementation of projects. Selecting the right projects, at the right time, enables for increased competition, meeting customer needs, increasing profitability and reducing expenses.

The leader’s role in project management is to provide executive oversight, or sponsorship, of projects undertaken in the association. Depending on the size of the association, the executive may also be the sole individual responsible for selecting and prioritizing the key initiatives to be undertaken within the association. In a smaller association, the executive may also be working on specific project tasks.

This session will focus on

The role of the executive in project management Balancing being informed on progress versus getting entrenched in the details Selecting, prioritizing, and launching projects aligned to association goals Determining the scope of the project and effort involved Select the right resources to work on projects and ensuring accountability Setting expectations for success and monitoring progress along the way





The Executive’s Role in Project Management The executive’s role is as the project sponsor.

The project sponsor role is an active one and should be held by a senior leader in the association. This is the individual responsible for identifying the business need, problem or opportunity that the project will address. Once this has been proven (the business case accepted,) this individual remains responsible for ensuring the continued viability of the initiative through use of go/no criteria. In a nutshell, go/no criteria enables for reviewing key areas of the project as it progresses and thereby stopping the project at some point before significant money is invested. Areas to be examined may include, but are not limited to:

Sponsor: The person, or group of people, who provides resources and support for the project and is accountable for enabling project success. The sponsor promotes the project from initial conception through to project closure. This may be done, for example, through ensuring resources are committed to the project from throughout the association and that the value of the project is promoted throughout the association.

Discussion: Challenges with Projects

What challenges have been observed in getting initiatives launched and completed within your association?

Focus the discussion at a high level, not on specific individuals.





Problem or opportunity statement

Has the problem or opportunity been stated clearly? Is it clear who the requestor is? Have you clearly stated how the expected benefits will be achieved?

Project goal and objectives

Have you clearly stated the desired end result of the project? Is the goal statement specific and measurable? Is the goal realistic and manageable? Are the objectives necessary, stated clearly, and measurable?

Risks and assumptions Have the major risks and assumptions been reviewed? Are the major risks and assumptions and any contingency plans

realistic? Do the stated risks and assumptions allow stakeholders to assess

benefits and costs associated with the project?

A strong project sponsor plays the role of mentor, catalyst, motivator, barrier remover and boundary manager. Being a project sponsor requires understanding and supporting the project, the ability to influence within the association, and being able to make decisions for the good of the project.

Depending on your association size and the number of resources available, you may be more involved in a project than a peer who runs a larger association with more resources available. For example, an executive in a smaller association with an assistant and access to member resources may take the lead on project and work on tasks associated with completing the project, relying on support from his/her assistant and member resources to also do some of the work of the project. On the other hand, an executive in a larger association with a larger staff, may oversee the project without doing any of the work of the project; that work may be left to staff members to complete. A CEO of a larger association may not necessarily be the sponsor, but rather another executive or leader may take on that role.

Leaders may be selected to sponsor a project based on any number of factors, including:

Interest in the project Project alignment to a goal they are tasked with achieving Expertise in the project area Ability to manage high risk initiatives Time to commit to leading the initiative Ability to engage and support project team members





Balance Being Informed vs. Getting Entrenched in Details The challenge for many sponsors is balancing being informed about the project with getting involved in the details. Balance is dependent on many factors, such as:

The size of the association The number of resources available to implement projects The type of projects launched Expertise available in organization

The right balance is not the same for every association executive. CEOs of larger associations should be kept informed via weekly status reports; they are unlikely to be entrenched in the details of the project.

Smaller associations, however, will mean that a CEO, with limited internal resources, will be more entrenched in the day-to-day activities of the project, including leading weekly project team meetings. There may be no need for anyone to deliver a weekly status report, as the executive of a smaller association would already be involved in the day-to-day work of the project.

Group Discussion: Being Informed vs. Entrenched in Details

What is the right balance for you in your association?





Project Governance Project governance is a management approach taken to support and manage project selection and delivery. The role of project governance is to provide a decision making framework for projects undertaken in the association that is logical, robust and repeatable to govern an association’s capital investments. Project governance structures include specific elements:

A business case for the project that includes project objectives, alignment to the association’slong-term goals, resource needs and budget expectations as well as what is in scope and out ofscope for the project.

A process to ensure the project stays aligned to the original objectives approved.

A method to ensure regular communication and engagement of stakeholders for the project. Appointment of a project manager to lead the day-to-day activities of the project and a project

sponsor to oversee the project at a higher level. Clearly defined project roles and responsibilities as well as accountability. Progress reporting standards for the project. A process for the management and resolution of issues that arise during project execution. A process for documenting and communicating on risks identified during the project. A review of the final project deliverables to ensure alignment to the initial scope objectives as

well as a process for capturing and disseminating lessons learned to enable for continuousimprovement.

For larger associations, a sub-group of the Executive team within the association may be part of a Project Governance Council.

For smaller associations, a formal governance structure may not make sense; however, incorporating best practices, processes and procedures for how projects are accomplished will be key for project success. For example, in a smaller association a business case might be developed for all projects to ensure alignment with strategy. This may be the extent of a “project governance” structure.

Selecting and Prioritizing Projects Those associations that are most successful are the ones that have high alignment of their projects to the association’s strategy. These same associations select and prioritize projects based on a variety of criteria important to the association and often determined as part of strategic planning sessions.

Project selection ensures that selected projects align with the business case (which indicates alignment to long-term strategic goals) and the corporate vision and values. A project selection process prevents employees of the association from using resources and spending budget monies on projects that do not support the goals and vision of the association. It eliminates launching projects that have not been well





thought out and planned. A project selection process also ensures projects are aligned with stakeholders’ needs and expectations.

Any project selection process should address the following:

A ranking of value and benefits of the project An appraisal of risk in achieving those benefits An inventory of resource availability and allocation for the project An idea of optimum or acceptable size of the project pipeline to enable for effective utilization

of project resources, project success and use of limited budget monies

Projects cannot be prioritized based on ROI alone. Additional factors that need to be considered in prioritizing projects include:

Alignment with strategical and tactical plans Balance between maintenance (“keep lights on”) projects and investment projects Allocation of R&D (innovation) expenditures and resources Allocation of marketing expenditures and resources Effective use of limited association resources Probability of delivering the project on time, within budget and as per the defined scope Non-financial benefits to the project

The prioritization process should use a balanced scorecard approach, with each of the factors listed and weighted to compare projects across all factors.

Value and benefits rankings may also be modified based on risk tolerance. For example, a million dollar return on a project that may only have a 10% chance of being successful is not as desirable as a $250,000 return on a project with a 90% chance of being successful.

Projects may be selected, in addition to being aligned with the association’s long-term strategy, if they will:

Be consistent with the association’s values and culture Contribute (directly or indirectly) to a positive cash flow for the association Effectively utilize the association’s resources – people, technology, etc. Provide for current contributions to the association’s health and assist in positioning the

association for future success





Selection Criteria Project selection criteria is very specific to the association. Examples of project selection criteria include:

Alignment to the association’s long-term strategy, mission and values ROI of project; cost/benefits ratio (reward vs. risk) Cross-functional impact Enables for solving major business problems/issues Payback period for project Initial cash outlay Availability of resources/what else is going on in the association Ability to generate future business/open new markets Ability to leverage core competencies in the association and among members Impact to market share/time to market Attractiveness to market Competitive advantage

This is only a partial list of potential criteria.

Potential red flags that impact project selection include, but are not limited to:

Lack of strategic fit with the association’s mission Lack of comprehensive stakeholder support Unclear understanding and responsibility for project risks/Risks of project outweigh the project

benefits Unclear ROI for the project Unclear or unrealistic time frames, budget and scope expectations Unclear or unattainable project requirements Unclear responsibility for project outcome

Let’s look at an example. For industry specific solution projects, an association may utilize the following criteria to evaluate a variety of new program projects:

Time to market Potential ROI (expected return; likely payback period) Risk of the new opportunity (new technology reliance, resource capability, legal or regulatory

implications) Solution lifecycle (durability) and future market potential (single opportunity or forerunner of

future opportunities) Cost of project





How about Smaller Associations?

For smaller associations, while you may not have formal criteria in place for selecting projects, you certainly use a variety of criteria in order to ensure that launching a new program or service makes sense for your association and your members. For each new program or service launched, you might ask yourself the following questions:

Is the project aligned to our strategy? What else is going on that will impact our ability to be successful with the launch of this new

program or service? Will it add benefit to our portfolio of programs and services for our members? Is the new program or service of interest to our members? (Have they asked for it?) Is the initial cash outlay necessary available or will funding be needed? Does the new program or service leverage our association’s core competencies?

Exhibit 1, on the following page, is just one example of how a project may get approved (selected) within an association.

Discussion: Criteria for Selecting Projects

What criteria is important in selecting projects at your association? Keep in mind criterion must be broad enough to evaluate a variety of project types. If criteria doesn’t make sense, what additional questions might you ask yourself to ensure the right projects are launched?





Exhibit 1: Getting a project approved





Criterion Weighting Values Each criteria must have a weight associated with it. This enables for comparing projects across the portfolio in an objective and fair manner. Exhibit 2 provides an example of a simplified scoring model (using the criteria example above.)

Criterion Importance Weight1

Time to market 3 Potential ROI 3 Risk of the new opportunity 1 Solution lifecycle (durability) and future

market potential 2

Cost associated with project 2

3 = High; 2 = Medium; 1 = Low

Exhibit 2: Simplified Scoring Model

Exhibit 3 provides an example of the criterion weighting to evaluate three projects.

Project Criteria (A) Importance

Weight

(B) Score

(A x B) Weighted

Score

Project A Time to market 3 2 6 Potential ROI 3 3 9 Risk 1 2 2 Solution Lifecycle 2 3 6 Cost 2 3 6

TOTAL: 29 Project B Time to market 3 1 3

Potential ROI 3 2 6 Risk 1 2 2 Solution Lifecycle 2 3 6 Cost 2 2 4

TOTAL: 21

1 This is only one example; some associations use 1 – 5, 1- 7 or even 1 – 10. Weight factors may be determined through consensus among the executive team.





Project Criteria (A) Importance

Weight

(B) Score

(A x B) Weighted

Score

Project C Time to market 3 3 9 Potential ROI 3 3 9 Risk 1 2 2 Solution Lifecycle 2 3 6 Cost 2 2 4

TOTAL: 30

Exhibit 3: Example of Use of Weighting for Project Selection

In Exhibit 3, based on the weighted scores, the association would prioritize the projects as follows:

1. Project C 2. Project A 3. Project B

Another option is to look at projects from the perspective of value to the association and risk potential. Exhibit 4 is an example of a project selection process grid based on value/risk.

Exhibit 4: Project Selection Grid





A common practice is to include all projects in review on a grid showing value and risk for an overview look. Preference in selecting projects is given to those projects that appear in the high value/low risk quartile.

Project Documentation There are any number of best practice documentation that comprises the overall project plan for each initiative2. This may include, for example:

Project charter Scope statement Risk management plan and risk register Communication management plan Change request and change log Status report Lessons learned

2 In today’s session we’ll discuss a Charter and a Scope Statement, but all other templates will be made available electronically.

Discussion: Criterion Weighting for Evaluating Projects

What weight would you apply to each of the criterion you selected in the last activity?

(Consider what scale should be used and how you will determine weights – e.g., via consensus or majority)

If you determined there are specific questions you might ask yourself, how can you “weight” those question to better evaluate and prioritize projects?





For larger associations and more complex initiatives (e.g., cross-functional,) the use of more documentation (and a more stringent process) enables for increased consistency and better control in how projects are managed. For smaller associations, however, just a few documents – such as the charter, a scope statement (which can replace the charter), change log and status report may suffice.

The Project Charter A key responsibility of the project sponsor is to issue a project charter to formally kick off the project. Project charters are not used by all associations and are not necessarily used for all projects. They are used to ensure understanding of what needs to be delivered for the project in order for it to be considered successful. Project charters provide relevant information about the project, including:

• The business case for the project - Why is this project being launched? How is it linked to the achieving strategic goals?

• A overall description of the project including key deliverables • Any risks associated with the project • Internal (divisions, departments, workgroups) and external (members, vendors, contractors)

stakeholders affected by the project or who have a vested interest in the project • The project’s benefits and the impact on the business if those benefits are achieved • High level milestones for the project • The project’s budget and expected expenditures

The project charter enables for sharing information about the project with the project team and is used to develop the project scope statement. Any deviation from a charter is considered a change to the project.





Example (partially completed) Project Charter:

Project Charter Date: July 16, 2018 Project: Educational Program Project Lead:

Mary Project Sponsor: CEO

Justification: Develop new educational program using technology to deliver information on best practices, processes and procedures relevant to members. This project links to strategy in that it meets a desire by members for delivery of educational programs via technology.

Description & Key Deliverables

Project is a new educational program using technology to deliver the content on best practices, processes and procedures to members to enable for delivery of members’ products and services to their customer base. Program will provide a web-based delivery of content related to industry best practices including common processes and procedures to assist members in developing structures for efficient and effective operations.

Key deliverables include: Research on best practices in industry and cross-industry. Survey of common processes and procedures in use by members today. Pilot test of program by at least 3 key members.

Risks New technology with no internal knowledge/expertise ( on external resource)

Short timeline for completion to meet member demands

Stakeholders Internal External CEO Contractor Mary (Project Manager) Members

Benefits & Impacts

Benefits Impacts if Achieved Meet needs of members Member goodwill Revenue channel Increased revenue

Milestones Research completed and survey data analyzed by no later than 08/24/2018 Contract secured with external consultant with technology expertise by no later

than 08/24/2018 Etc.

Budget & Expenditures

Budget: $150,000 Expenditures External research $10,000

Survey of members $ 1,000 Technology (software) $50,000 Etc. Etc.





The Project Scope Statement A project scope statement is a key project planning document. It is, basically, a narrative description of the project. If a project charter is issued, some of the information in the charter will be used in the scope statement. Some associations may choose to use a project scope statement in place of the project charter for all projects or for simpler projects.

The scope statement captures the following necessary information about the project:

Project justification (the “why” of the project) o What is the problem being solved or the business need being addressed by launching

the project Project description (the “who, what, when and where” of the project)

o Who is the customer? o What is the final deliverable (how will it look)? o When will the project begin and be completed? o Where will the project be used?

Project objectives (the criteria for success - use SMART objectives) o SMART objectives clearly state what the project will accomplish

Specific: clear, understandable and distinct Measurable: not ambiguous Attainable: able to be achieved given available resources, time and money Relevant: objectives address the business reason for the project Time-bound: timeline is achievable to meet the objectives

Project constraints (what restrictions exist for the project; specifically around time, budget resources and scope)

Project assumptions (what are the known “truths” about the project; e.g., resources needed will be available for the duration of the project)

Similar to the Charter, any deviation from a Scope Statement is a change to the project.





Example (partially completed) Scope Statement:

Project Scope Statement Date: July 16, 2018 Project: Educational Program Project Lead:

Mary Project Sponsor: CEO

Justification: Develop new educational program using technology to deliver information on best practices, processes and procedures relevant to new members.

Description & Deliverables:

New educational program using technology for delivery – project begins 7/23/2018 and ends on 11/30/2018.

Research on best practices in industry and cross-industry. Survey of common processes and procedures in use by members today. Program will provide a web-based delivery of content related to industry best

practices including common processes and procedures to assist members in developing structures for efficient and effective operations.

Objectives: Determine research needs and no fewer than four sources by no later than

08/01/2018 Develop a 10-question survey to survey members on common processes and

procedures by no later than 08/03/2018 Launch survey to members by no later than 08/13/2018 Complete research by no later than 08/24/2018 Etc.

Constraints: New technology to be used Limited internal resources Short timeline desired by members for release

Assumptions: Will be able to secure a contractor with technology experience Members will be interested in new educational program





Resource Planning Resources are more than people, and can include equipment such as hardware, software, and tools. For equipment resources, consider if it needs to be purchased or leased. For people resources, consider what skills, experience, education, background, etc., is needed for individuals to be successful completing the tasks of the project. Are they employees, contractors, or members? You need to be strategic in assigning resources to ensure the project can be successfully completed in the time required and within the budget allocated. You don’t want to randomly assign individuals with time available unless they have the skills and expertise necessary to be successful.

Discussion: Documentation to Better Manage Projects

What documents (documentation) might you introduce into the association in order to enable for better management of projects?

Consider from the perspective of the complexity of your own association. How can you maintain control without it becoming onerous?





Resource planning is a process done at the start of a project to identify what resources are required to deliver the project’s objectives. Follow these three steps to plan resources for your project:

1. Identify required resources for the projecta. Equipment: lease or purchase?b. People: in-house employees, contractors, or members?

2. Determine when you need the resources. For example,a. For project planning?b. During a particular phase of the project?c. For testing?d. Throughout the project duration?

3. Secure the necessary resources and assign to specific project tasksa. By planning ahead of time, you know the resources are available when you need them

Two Key Meetings There are two key meetings for any project that the sponsor should attend: project kick-off meetings and lessons learned/wrap up meetings.

Kick-off meetings (first meeting of the project team)

Increased collaboration among team members Understanding project specifics and the “big picture” Determine and clearly define roles & responsibilities Ensure common processes around decision-making, resolving conflicts,

communicating on the project, etc.

Lessons learned/ wrap up meetings (last meeting of the project team)

Captures what went well and where improvements in managingprojects can be made

Overtime, enables for improvement in how projects are accomplished:less cost and shorter timeframes

Enables for celebrating the work done on the project





Checking in on Status In addition to these two key meetings at the start and wrap up of the project, set expectations with the project lead/team on status reporting up to the sponsor/leadership group. A status report is a report on the performance of the project to date. When requesting status on initiatives launched, look for the following information from the project team:

Time period for the report (e.g., July 23 – July 27) Overall schedule status of the project

o On schedule o Behind schedule

Overall budget status of the project o Within budget o Over budget

Overall scope status of the project o Within scope o Scope issues

Any issues to be discussed/problems to be resolved

When You Need to Make a Decision When a decision is necessary from you or another leader, request that the following be provided by the project team members so that the decision can be made:

The key points of the problem o Back up data available

Various options for what might be done to resolve the problem with pros and cons of each option, including impact on project scope, cost, timeline, resources, and quality.

o Request also a “do nothing” option The team’s preferred option3 given the timeline, resources on the project, and available budget The cost of the preferred option in terms of effect on scope, time, resources, budget and project

quality o Back up data on the other options in terms of effect on scope, time, resources, budget

and project quality When a decision is required to ensure continued progress on the project

3 If you would prefer that the team does not provide a preferred option, simply ask them for 3 – 4 possibilities from which to choose.





Keep Tabs on the Project Look for these indicators that the project is heading in the wrong direction:

Schedule beginning to slip - even a day or two should be monitored and evaluated Certain activities and tasks beginning to go over budget - even a few dollars over budget should

be monitored and evaluated Your project team cannot resolve issues quickly Changes in the project that are not being well managed There is excessive rework due to poor quality or lack of attention to detail

By keeping your fingers on the pulse of the project, you’ll see issues as they begin to bubble up before they become serious problems that affect the success of the project.

Lessons Learned for Continuous Improvement Capturing lessons learned is a best practice method to understand what was successful on the project and where improvements might be made for work on future projects. By capturing and applying lessons learned to future projects, over time projects are done more effectively - with less cost and shorter timeframes.

Plan to spend at least an hour to an hour and a half at the end of the project collaborating with the project team to capture lessons learned. This may be as simple as asking:

What worked well? What improvements are necessary? What else should be shared/discussed?

In a more detailed lessons learned workshop, you might probe deeper into what went well and where improvements are necessary by asking questions, such as:

Was the project scope clearly defined? Were we able to measure success? Was time and resources accurately

estimated? Were all necessary requirements

gathered from all stakeholders? Were major components of the project

successfully identified? Were team members utilized

appropriately based on their skills,qualifications and past experience?

Were project risks accurately identifiedand managed?

Was the project and its deliverablesprioritized well?

Were changes managed successfully? Were communications effective and well

planned? Were status and performance review

meetings and team meetings successfuland effective?

Where can improvements be made? What was done particularly well?





If you had problem areas on the project, delineate specific options for improvement that can be used on future projects. And by all means, don’t forget to celebrate what went well with the project! Celebrate the successes! Even if a project had many problems, there is still reason to celebrate.

A Checklist for Smaller Associations

For smaller associations, this detailed list of questions for lessons learned can serve as an excellent checklist to think through the project prior to launch. For example, let’s assume a smaller association is launching a new educational program for their members. To ensure the project of a new educational program will be successful, the executive of the association will consider his/her responses to the following questions:

Is the scope clearly defined? Will we be able to measure success? (What metrics will we use?) Are time and resources accurately estimated? Are all necessary requirements gathered for the program? Are major components of the project identified? Are the right human resources assigned to the right tasks? Do we know what the risks are? Do we have a plan in place to address risks? Do we know how we will handle any changes to the project? Do we have a plan in place to communicate on the project? Do we need to test the educational program with a pilot group?

This checklist enables for the executive to fully consider a variety of aspects of the project to ensure it is being launched at the right time to be successful and contribute to the association’s goals and bottom line.

Next Steps Use discussions in today’s session to determine how little or how much you should formalize project management within your association. This includes the use of consistent processes and best practices as well as project documentation to ensure consistency from project to project. Additionally, determine the method to select and prioritize projects within the association to ensure the right projects are being completed at the right time to meet the association’s strategic goals.

Fill in each box below with tips, information and take-aways regarding your experience in the session. 4

4 Adapted from: The Big Book of Team Motivating Games, Scannell & Scannell, McGraw Hill, 2010





Ideas: What new ideas did you come away with? Take Action: What action do you plan to take as a result of your experiences in this session?

Ideas Take Action




Documents

The Executive Perspective on Project Management · 2018. 7. 11. · The Project Charter ... In a nutshell, go/no criteria enables for reviewing key areas of the project as it progresses