PowerPoint Presentation

Why do projects succeed or fail?Part 1 Basic CollaborationThe Behaviors that Make a Difference

1What I want to share:2The Premise of the SolutionProject Execution Maturity Model 3 LevelsUnderstanding Basic Collaboration

2What does failure mean?ScopeDid the project deliver all the features?QualityDid the outcome function as it should have?Business BenefitDid the project deliver the results?BudgetDid it cost as much as it was supposed to?ScheduleWas it done when we wanted it to?3Most Managers Struggle with Schedule and Budget 4Less tha4Skills Training has an Inverse Relationship to Budget and On Time Delivery?5The PMBOK Emphasizes Control Stakeholder AnalysisPlanningScopeQualityRisk managementCommunicationMonitoring & control Execution & Delivery?Less than 10 of 450 pages of the guideExpert JudgmentInformation6

Successful projects are NOT the result of successful planning7Successful projects are the result of skillful execution.Critical Chain Project Management - Managing with Certainty25 June 2014 2008 mark woeppel www.pinnacle-strategies.com7Performance Is a Function of CapabilityProject Management CapabilitiesAbilityBehaviorResult 8Project ManagementMaturityProjectPerformanceBusinessPerformanceBusiness capabilities: ability to mobilize and deploy resources in combination or copresent with other resources and capabilities8Purpose of Best Practice ModelsQuantify capabilities that deliver the desired resultsFacilitate comparison to your practices Determine what is and what isnt workingEstablish a case for actionDevelop a plan for improvement9

9Many Project Management Maturity ModelsOver 30 different models, based on various paradigmsSeem to be usefulWidely adoptedMany organizations report advancements in maturity

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30: Cooke-Davies 2002: 16)Als Klasse von Kompetenzobjekten wird ein spezifischerRealweltausschnitt betrachtet, fur den allgemeingultige Qualitatskriterien vorhanden sind.Ein Kompetenzobjekt ist im Kontext dieser Arbeit also eine konkrete Aufgabe des Projektmanagements.Kompetenzmodelle und Reifegradmodelle werden in der Praxis oft als Synonyme benutzt.Ein Kompetenzmodell muss jedoch nicht notwendigerweise eine Unterteilung in Reifegradebeinhalten (vgl. Ahlemann et al., 2005, S. 12 ff.).10The critical role of execution remains underdevelopedAlthough higher maturity levels result in quality, and business benefits;

Lower performance levels were noted in meeting schedule and budget objectives

11PricewaterhouseCooper. Insights and Trends: Current Portfolio, Programme, and Project Management Practices: http://www.pwc.com/en_US/us/public-sector/assets/pwc-global-project-management-report-2012.pdf

From December 2011 through January 2012, 1,524 participants responded to the survey from 34 industries, across 38 countries.

Key Performance Indicators for a Project Implementing the Typical Organisations Approach to PM

As previously noted, a systematic and organised set of processes brings order and efficiency to project management.

Therefore, the existence of well-defined project management processes often grouped into a project management methodology - differentiates those companies that are able to consistently deliver high project results from those that do not.

Our key findings in this area include the following: standardisation and institutionalisation of project management processes; prioritisation of projects and application of a standard project life cycle; utilisation of project portfolio techniques; utilisation of methodologies in project management, portfolio management and Agile project management; leveraging communication management best practices; and emphasis on project management certifications.11What Do We Want in a Model?12The principles for delivering on time and on budgetClear relationship between principles and desired effectsBehaviors that exemplify those principlesA path to maturityLevel 5 Optimizing Level 4 Managed Level 3 Org. FocusLevel 2 Basic PMLevel 1 InitialProject Execution Maturity Model Principles for Execution & On Time Delivery13Date Mgmnt.Schedule RiskDelivery PromisingManaging BottlenecksRemote CollaborationPriority ControlCollaborative ExecutionControl WIPFunctional AlignmentProbabilistic PlanningSubcontractor ManagementCapacity ManagementBasic CollaborationImproved CoordinationIntegrated Planning & ExecutionMore Mature

Less MatureBasic Collaboration14Emphasize VelocityThe work before youThe team before youNear termMore Mature

Less MaturePriority ControlCollaborative ExecutionControl WIPFunctional AlignmentImproved Coordination15Inclusion of remote teamsEmphasize On Time Delivery

Inclusion of schedule risk in execution decisionsMedium TermMore Mature

Less MatureDate Mgmnt.Schedule RiskDelivery PromisingManaging BottlenecksRemote CollaborationIntegrated Planning & Execution16Closed Loop planning & executionProbabilistic scheduling Finite resource planningLife of project, full portfolioProbabilistic PlanningSubcontractor ManagementCapacity ManagementMore Mature

Less MatureBasic Collaboration17Increase VelocityPriority ControlCollaborative ExecutionControl WIPFunctional Alignment

Basic Collaboration Solves:18Lack of directionUnclear accountabilities for resultsSlow progressAnswers the most basic questions:What is the status of the work?Are we making progress?What do we need to do to move forward?Who is going to do it?Collaborative Execution19Priority ControlCollaborative ExecutionControl WIPFunctional Alignment19Collaborative ExecutionWorking together to achieve shared goals.

20Together= as a teamAchieve = accomplishmentGoals = the same thing

As a practical matter, this means the right people are doing the right work at the right time.20Informed CollaborationIndividuals and teams see beyond their own tasks to the overall direction of the projectAgreement on the situationRoles and accountabilities of each team member are clearFocusing on what needs to be done today, rather than the past21

Collaborative ExecutionWhat if I dont?Slow response to project problemsSlow progressIncreased project lead-times22

Building CollaborationAccurate / shared assessment of the situationAccountability for resultsPlan-Do-Check-Act23

The Situation Must Be Made ObviousAccuracy Where are we now?Shared Do we agree on it?

Accura24Purposeful CollaborationFocus on what is slowing or halting progressOnly investigate the issuesWhat are the red issues?Ask what we need, not who to blame or whyHow does it hurt the project due date?Try to identify next steps, not resolve the issueLets have a separate meeting to figure this out

Actionable!Keep it short!

Collaborative ExecutionWhat if I do?Quick response to project problemsIncreased completion velocityReduced project lead-times26

Functional Alignment27Priority ControlCollaborative ExecutionControl WIPFunctional Alignment no elaboration

27Functional AlignmentThe project team shares A common goal Agreement on the rules of the gameSubordination of individual to team objectives

28Functional AlignmentWhat if they arent?Reduced velocityTime to clarify accountabilitiesDifficulty obtaining resourcesLow team engagementPoor resource productivityMisallocation of skillsResponse delays29

Metrics Align Behavior & Purpose30

Results Trending Based on Behavior31

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33Functional AlignmentWhat if they are?Increased task completion velocityClear accountabilitiesResources allocated as neededHigh team engagementImproved resource productivityThe right people working the problemsQuick response to problems34

Priority Control35Priority ControlCollaborative ExecutionControl WIPFunctional AlignmentPriority Control36

A unified work prioritization system which reflect the global prioritiesUsed for all projects and supporting tasks.

Project priorities are reconciled regularly among the affected stakeholders. There is a clear escalation process in place to resolve priority conflictsThere is a person accountable to manage project and task priority

36What/Who Controls Priorities?37Priority ControlWhat if we dont?Work performed out of sequencePlenty of task switching (multitasking)DelaysLonger completion timesReduced productivity38

Setting the PriorityEstablish the criteria (delivery date?)Who controls them?What if there is disagreement or confusion?Quality problems or delay does this change?What about emergencies?

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Priority ControlWhat if we do?The right work at the right timeMuch less task switching (multitasking)Increased velocityShorter completion timesIncreased productivity40

Manage the Flow41

Priority ControlCollaborative ExecutionControl WIPFunctional Alignment41Control Work in ProgressManagers control the release of work into the system based on the capacity of the constraintManagers promote policies that reduce multi-tasking Clean StartClear Priorities

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Controlling Work in Progress What if we dont?Increased complexity of task managementIncreased management effort (meetings!)Work performed out of sequencePlenty of task switchingIncreased project lead times

Delays in task completionsTask rework. Task over-processing Reduced productivity

43Ready to Appraise[WIP = 3]Appraise

[WIP = 2]Select

[WIP = 4]Define / Execute

[WIP = 7]App | OK | RdySel | OK | RdyDefine / Execute | Final OKPlatform XReady for Construction ConstructionPost-Project AssessmentDoneIFC | Procure | RFCBDCAFHGEJILKOMQPTSRN[WIP = 4]

Scenario 1: AScenario 2: IScenario 3: R, GScenario Simulation Pull SystemWIP controls the release of new projects45must be limited.Project XXEstimate

(WIP = 4)WIP Controls:Limiting workRelease at the rate of consumption

The Clean Start Queue46

TBR (To be released)

It is a prioritized queue of work that needs to be done when resources are available.

The work has met the defined clean start requirementsControlling Work in Progress What if we do?Simplification of task managementReduced project lead timesTasks can be quickly completed without delayRework reducedTask over-processing is eliminatedImproved productivity

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Basic Collaboration - Summary48Collaborative Execution

Working together to achieve shared goalsFunctional Alignment

Each team member subordinates to the overall objectives of the projectPriority Control

Local work priorities reflect global prioritiesControl WIP

Work is released into the system as it is consumed.Clean StartImproved Coordination49Date Mgmnt.Schedule RiskDelivery PromisingManaging BottlenecksRemote CollaborationMore Mature

Less MatureDeliver on Time

Integrated Planning & Execution50Probabilistic PlanningSubcontractor ManagementCapacity ManagementMore Mature

Less MatureOptimize Performance

Project Execution Maturity ModelFills the gap in existing modelsSchedule Budget / Cost51

Basic Collaboration

Improved CoordinationIntegrated Planning& Execution52Road Map to ValueDirectly Building Capabilities that Drive PerformanceProject Management CapabilitiesAbilityBehaviorResult 53Project ManagementMaturityProjectPerformanceBusinessPerformanceBusiness capabilities: ability to mobilize and deploy resources in combination or copresent with other resources and capabilities53Basic Collaboration - Results54All of the work in the system is in controlProject teams have a clear view of the project work, its status and riskLocal resource teams are aligned with project priorities. Accountabilities for results are clearPriority ControlCollaborative ExecutionControl WIPFunctional Alignment

Tracking 54% improvementAverageQuoted Lead TimeResults after 10 Weeks Engineering Lead Time reducedFrom 24 months to 11 months54% improvement in engineering lead time & little variationCritical Chain - Lean Project Management with ViewPointMarch 25, 201455Financial Impact (USD)LT impact with additional salesMore with sameNew sales - reduced lead time = new projects + aftermarket

1.4Additional salesMore with sameNew sales additional productivity= new projects + aftermarket

1.9 to 2.8Improved effectiveness & efficiencySame with less27% reduction of project lead times translated into cost savings2.1

Bottom line: 5.3mm56March 25, 2014Critical Chain - Lean Project Management with ViewPointWhy do projects succeed or fail?The Behaviors that Make a Difference

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