Winter 2014Seneca College1 INTRODUCTION TO PROJECT MANAGEMENT by Peter Paolucci Winter 2012

Winter 2014 Seneca College 1

INTRODUCTION TOINTRODUCTION TOPROJECT MANAGEMENTPROJECT MANAGEMENT

byPeter Paolucci

Winter 2012


SUGGESTED READINGSUGGESTED READING

Best bet: Schwalbe, Kathy. Information Technology Project

Management. Thompson Learning. ISBN: 002921-646206. (On which this session is based)

Also no slouch

Friedlein, Ashley. Web Project Management. Morgan Kaufman Publishers. ISBN: 1-55860-678-5. (On which this session is based)


COURSE OBJECTIVESCOURSE OBJECTIVES

This course will

Expose you to the terminology used in Project Mgt

Help you understand the fundamentals of Project Mgt

Allow you to gain an understanding of the Project Life Cycle and the methodologies used to manage a project

But most of all it will … (next slide)


COURSE OBJECTIVESCOURSE OBJECTIVES

Change the way you look at, and understand your own work

Help you improve the way you approach all tasks in life, whether it is personal or professional

Make you a better communicator

Increase your awareness of Project Management and how its principles are transferable to all industries and areas


INTRODUCTION TO INTRODUCTION TO PROJECT MANAGEMENTPROJECT MANAGEMENT


WHAT IS PROJECT MANAGEMENT?WHAT IS PROJECT MANAGEMENT?

Systematic application of:

Knowledge Skills Tools Techniques Activities


WHAT IS PROJECT MANAGEMENT?WHAT IS PROJECT MANAGEMENT?

In order to meet constraints of: Time Scope Cost Quality

The driver of PM is to meet stakeholder needs and expectations


WHY BOTHER WITH PM?WHY BOTHER WITH PM?

Better control over

Resources (people, $$, physical) Customer relations Efficiency & productivity Higher profit margins Internal coordination Higher worker morale


PM STANDARDSPM STANDARDS Project Management Governing body

Project Management Institute (PMI) International professional society for Project Management Website link: http://www.pmi.org/info/default.asp PMBOK PMP Certification

Other Standards ISO 10006:1997 SCRUM Prince2


CHARACTERISTICS OF A CHARACTERISTICS OF A PROJECTPROJECT

Unique purpose Customer initiated and driven Temporary (measurable beginning and end)

Requires different resources Requires coordination Involves uncertainty Can range from “assembly line” to more

professional, self-directed workers and tasks Often utilized as a means of achieving an

organization’s strategy


EXAMPLES OF A PROJECTEXAMPLES OF A PROJECT

Creating a business strategy and plan Developing a system Launching a new product Business Process Re-engineering Planning a wedding Building a house


THE TRIPLE CONSTRAINTTHE TRIPLE CONSTRAINT

Always a question of managing: Scope Time Cost

Usually we can only get two - one of these must be sacrificed

The quadruple constraint is a variation of this which includes quality


DEFINING SUCCESSDEFINING SUCCESS

On time

Within scope

Within budget (cost)

With appropriate (pre-defined) quality

And ultimately, a satisfied customer


PROJECT SUCCESS FACTORSPROJECT SUCCESS FACTORS

User involvement Executive Management support Clear business requirements Concise planning Realistic expectations Clearly defined project milestones Competent /dedicated staff Ownership Clear vision and objectives

The Standish Group Report, 1995


WHY DO PROJECTS FAIL?WHY DO PROJECTS FAIL?

Poor project planning Inadequate risk analysis and mitigation plan Weak project schedule

Weak business case Inadequate analysis

Lack of senior management support and involvement You must secure management buy in!

KPMG, “What Went Wrong?”, 1997


OTHER KEY COMPONENTSOTHER KEY COMPONENTS

Define stakeholders Define knowledge areas (key competencies) Define milestones Define critical path(s)

Create Gantt charts Create SOW (Statement of Work) Develop WBS (Work Breakdown Structure)


WHAT DOES A PM DO?WHAT DOES A PM DO?

Define project tasks, costs, and timelines Allocate human resources

Make estimates of time and $$ Develop schedules

Oversee QA (Quality Assurance) Define and monitor standards

Communicate with teams and client


WHAT DOES A PM DO?WHAT DOES A PM DO?

Define team and employee roles Monitor and manage change Establish, monitor and manage documentation

Monitor/ respond to team member needs and morale Define / monitor milestones and “critical path” events

Above all: identify and respond (intervene) to correct and adjust as necessary


REQUIRED SKILLSREQUIRED SKILLS

Team building Leadership Problem solving Decision making

Communication Planning

Organization Interpersonal Negotiation


PROJECT MANAGEMENT:PROJECT MANAGEMENT:CONTEXT ANDCONTEXT ANDPROCESSESPROCESSES


PM PROCESSESPM PROCESSES

Initiating: Define and authorize the project or phase

Planning: Define project deliverables and objectives. Start developing the project schedule

Executing:

Coordinate people, resources for the project Complete all assigned tasks



Controlling: Monitor and take corrective action

Closing: Client/User acceptance Sign-off on all aspects of the project



Project Initiation(Project Definition)

Project Planning

Executing Close-outControlling

Stakeholdersign-off?

YES

NO

Scheduledevelopment/

approval

YES

NO

END


9 PM KNOWLEDGE AREAS9 PM KNOWLEDGE AREAS1. Integration

Develop Project Charter Develop Project Management Plan Develop preliminary scope statement

2. Scope Scope planning and definition Develop WBS

3. Time Activity definition Activity sequencing Resource and duration estimating Schedule development


9 PM KNOWLEDGE AREAS9 PM KNOWLEDGE AREAS

4. Cost Cost estimating Cost budgeting Cost control

5. Quality

Quality planning Quality assurance Quality control

6. Human Resources HR planning Acquire and develop project team Manage project team


9 PM KNOWLEDGE AREAS9 PM KNOWLEDGE AREAS7. Communication

Communication planning Distribution of information Project reporting

8. Risk Risk management planning Risk identification Risk analysis Risk response planning Risk monitoring and control

9. Procurement Purchase and acquisition planning Plan contracting Request for Proposal (RFP) Vendor selection Contract administration / Contract close-out


SCOPE MANAGEMENTSCOPE MANAGEMENT


SCOPE MANAGEMENTSCOPE MANAGEMENT

Scope: the work involved in creating the outputs of the project (product or service )

Project Scope management: the processes involved in defining and controlling what is and is not included in the project

Both the project team and stakeholders must agree on the deliverables of the project


SCOPE MANAGEMENT SCOPE MANAGEMENT PROCESSESPROCESSES

There are 5 processes:

1. Initiation2. Planning3. Definition4. Verification5. Change control


PROJECT INITIATIONPROJECT INITIATION

Projects are often launched as a result of:

Market demand (new electricity plant built to service growing needs)

Organizational needs (a company launches a project to assist in reorganizing departments)

Customer requests (new product developed to complement a series of other product divisions)



Projects are often launched as a result of:

Legal requirements (a company launches a project to upgrade its systems to meet regulatory requirements)

Technological advancements (project launched to introduce a new series of virtual video games)



Inputs• Service/Product

description• Strategic plan

• Project selection criteria• Historical data and

information

Outputs• Project Charter• Assigned PM

• Assumptions/Constraints


PROJECT SELECTIONPROJECT SELECTIONSome methods for selecting projects:

Identify potential projects Focus on organizational needs Categorize projects

Ask yourself: Does the project address a problem, opportunity or directive?

Is there a priority? Is there a hard deadline? How long will it take?

Apply financial analysis techniques Net Present Value (NPV), Payback, Return on Investment (ROI)

Weighted scoring methods (based on criteria)


PROJECT CHARTERPROJECT CHARTER

The project charter should include:

Project justification Business case (cost/benefit analysis,

support documentation) Deliverables High-level costs Brief description of project schedule Objectives/description of product/service Stakeholder names and sign-off


SCOPE PLANNINGSCOPE PLANNING

Includes the process of writing the scope statement

Scope statement = basis for future decisions

Includes milestones and criteria to determine if a project and its phases are completed


SCOPE PLANNINGSCOPE PLANNING

Scope statement should include:

Project justification Product/service description Summary of project deliverables What determines project success?


SCOPE DEFINITIONSCOPE DEFINITION

Breakdown the work into manageable pieces

A good scope definition: Helps improve time, cost and resource estimates Defines baseline for performance measurement Helps communicate project status, progression and

responsibilities

WBS breaks down the work into manageable pieces


PRINCIPLES FOR CREATING A PRINCIPLES FOR CREATING A WBSWBS

A unit of work should only appear once

A WBS item is the responsibility of one person, although there may be many working on it

Involve project team members

Document each WBS to ensure accurate understanding of scope of work

Make the WBS flexible to accommodate changes


WBS DEVELOPMENT APPROACHESWBS DEVELOPMENT APPROACHES

Use guidelines provided by other organizations, templates

Review the WBS used in similar projects

Top-down approach start with the biggest work items first and continue to break them down

Bottom-up approach start with the detailed tasks and proceed to the next level


SCOPE VERIFICATIONSCOPE VERIFICATION

This is a formal process whereby the scope statement is reviewed by all stakeholders

Once reviewed, all stakeholders are to sign-off


SCOPE CHANGE CONTROLSCOPE CHANGE CONTROL

Changes made once the project scope statement is signed-off must go through change control

Scope changes must be documented and approved by all stakeholders

Adjust the schedule baseline to reflect new additions/revisions

Document any lessons learned


IMPROVE USER INVOLVEMENTIMPROVE USER INVOLVEMENT

Ensure all projects have a sponsor from the user organization

Place users on the same project team

Schedule regular meetings to touch base with users and obtain feedback

Communicate to users on a regular basis

Co-locate users with developers


HOW DO YOU REDUCE CHANGE?HOW DO YOU REDUCE CHANGE?

Reduce incomplete and changing requirements by:

Developing a requirements management process

Introducing techniques such as prototyping and brainstorming sessions to fully understand user requirements

Documenting all requirements


HOW DO YOU REDUCE CHANGE?HOW DO YOU REDUCE CHANGE?

Conduct adequate testing to ensure user requirements are met

Implement a process to review requested changes

Emphasize delivery dates

Communicate trade-offs with revising scope


SUMMARY OF OUTPUTS SUMMARY OF OUTPUTS

Initiation

Project Charter

Scope Planning

Scope Statement

Scope Definition

WBS

Updates are made at each step


TIME MANAGEMENTTIME MANAGEMENT



Consists of five processes:

DurationEstimating

ScheduleControl

Activity Sequencing

Activity Definition

Schedule Development



Schedules are developed from the documentation in the Project Charter

Scope statement and WBS define the work that will be accomplished during the project’s duration

Schedule issues are one of the main causes of conflict and overrun for projects


TIME MANAGEMENTTIME MANAGEMENT Activity Definition

Further decomposition of the WBS in the Project Charter Main output = Activity list

Activity Sequencing Organize tasks in order, create dependencies Document phases and milestones Main output = Project Network Diagram

Activity Duration Estimate work effort/time to complete each task Consider resource availability Main output = Activity duration estimates



Schedule Development Complete schedule, make final revisions Determine start and end dates for project activities Determine critical path Main output = project schedule

Schedule Control Control changes made to schedule as project progresses Main output= updates to project schedule, lessons learned


ACTIVITY SEQUENCINGACTIVITY SEQUENCING

There are three types of dependencies used to determine the sequence of activities:

1. Mandatory: Inherent in the nature of the work

2. Discretionary: Defined by the project team members

3. External: Involves relationships between other projects or

organizational activities


ACTIVITY SEQUENCINGACTIVITY SEQUENCINGPrecedence Diagramming Method (PDM)

A technique used to document the order in which tasks occur in a project

Basis for the construction of Gantt Charts Uses arrows to denote logic, boxes to denote tasks Most commonly used method Determine the dependencies and link the tasks together

Brainstorm

Design

Project Approval

Analysis

Implement


ACTIVITY DURATIONACTIVITY DURATION

Minimize time impacts

Allow time for client meetings and activities

Schedule formal reviews and touch-base meetings to discuss the project’s progress

Add buffers to allow time for undefined tasks

Plan for testing and implementation

Plan for holidays and vacations


SCHEDULE DEVELOPMENTSCHEDULE DEVELOPMENT

It’s common to see many revisions of this

Scheduling must be realistic and responsive to changes

Tools and techniques include:

Gantt chart

Pert analysis (risk)

Critical path

Critical chain


GANTT CHARTGANTT CHART

“Invented” by Henry Gantt

Shows activities (tasks) and their dependencies over time

Should coincide with the WBS

Includes milestones – which are significant events


Gantt ChartGantt Chart

“x


““SMARTSMART” CRITERIA” CRITERIA

Milestones should be

Specific

Measurable

Assignable

Realistic

Time-framed

“Slipped milestones” = an activity completed later than planned


PERT ANALYSISPERT ANALYSIS

Is a time management technique

= Program Evaluation and Review Technique

Used to estimate duration when there are high levels of uncertainty

Based on network diagram, PDM

Use optimistic time + (x4 most likely time) + pessimistic time / 6 (divided by 6)


CRITICAL PATHCRITICAL PATH

Is a trajectory through the life of a project

Activities need to be scheduled with “slack” or “float” (i.e. tolerance in order to accommodate delays)

Total slack/float = maximum delay allowable without having to alter the project end date

You can scan a critical path from beginning to end (forward pass) or from completion date to beginning (backward pass)


CRITICAL PATHCRITICAL PATH

Early finish date = earliest possible finish date based on the project’s network logic

Late finish date = latest time an activity can be finished

Crashing = a kind of overdrive or fast track to complete certain milestones on the CP. Usually involves spending extra $$

Fast tracking = running activities/tasks in parallel instead of sequentially. Risky but it accelerates end date.


CRITICAL CHAINCRITICAL CHAIN

Based on “theory of constraints”

Look for the weak link in the chain – the task that is the most challenging and identify it

Avoids multi-tasking because of its inefficiency: no one assigned two tasks simultaneously on the same project

Planning includes time and project buffers

Takes into account Parkinson’s law = “work expands to time ” allowed


CRITICAL CHAIN: SUMMARYCRITICAL CHAIN: SUMMARY

Critical chain built on: Critical path analysis Managing resource constraints Buffers Same as critical path analysis with

resource levelling (saving resources by delaying tasks)



Activity Definition

Activity List

Activity Sequencing

Project Network Diagram

ActivityDuration

Activity Duration Estimates

ScheduleDevelopment

Project Schedule

ScheduleControl

Schedule updates, Lessons Learned


COST MANAGEMENTCOST MANAGEMENT



The majority of Information Technology projects went over budget in 1995 - 2000

Average cost overrun for Information Technology projects = 189% in 1995

This was improved to 45% in 2001

CHAOS Report, 1995


OVERVIEW OF PRINCIPLESOVERVIEW OF PRINCIPLES

Profits = revenue – expenses Profit margin = profits/revenue

Life cycle costs – estimate costs based on total cost of ownership, support and development of project

Cash flow analysis – method used to calculate the estimated annual costs and benefits (annual cash flow)

Tangible benefits – costs/benefits that are easily measured in $$$

Sunk costs – money spent in the past that cannot be recovered Reserves – money included in cost estimate to mitigate risk – a

safety net!



Consists of 4 processes:

CostControl

Resource Planning

Cost Estimating

CostBudgeting



Resource Planning Determine the amount and what type of resources are required Main output = resource requirements listing

Cost Estimating Create an estimate of the cost of the required resources Main outputs = cost estimates, cost management plan

Cost Budgeting Allocate the overall cost estimate to individual tasks Main output = cost baseline

Cost Control Control and monitor budget changes Main outputs = corrective action, estimate at completion, lessons learned


3 TYPES OF COST ESTIMATES3 TYPES OF COST ESTIMATES

1. Rough Order of Magnitude (ROM) Rough estimate of project total costs Developed early in the project or before it is launched Accuracy usually is -25% to +75%

2. Budgetary Estimate Developed 1-2 years prior to project’s completion Accuracy = -10% to +25%

3. Definitive Estimate Accurate estimate of project costs Used to make purchasing decisions, estimate actual

costs Developed 1 year or less before project’s completion Accuracy = -5% to +10%



Resource Planning

Resource Requirements

List

CostEstimating

Cost Estimates Cost Mgmt. Plan

CostBudgeting

Cost Baseline

CostControl

Corrective Action, Estimate at Completion,

Lessons Learned


QUALITY MANAGEMENTQUALITY MANAGEMENT


PURPOSE: QUALITY PURPOSE: QUALITY MANAGEMENTMANAGEMENT

To ensure the project will satisfy the needs/requirements of the project

The customer determines whether a product or service meets the quality expectations that were defined


QUALITY MGT: X3 PROCESSESQUALITY MGT: X3 PROCESSES

Quality Planning Identify quality standards and how they will be tested Main output = Quality Management Plan

Quality Assurance Evaluate overall project performance to be sure that the project will satisfy the quality requirements originally defined

Quality Control Monitor results to ensure compliance Identify methods to improve quality Main output = acceptance decisions, rework, process adjustments


QUALITY PLANNINGQUALITY PLANNING

Anticipate situations and planning action steps to resolve them so that quality standards are met

Communicate standards clearly to all involved in the project

Describe important factors that contribute to quality

Many factors effect quality i.e. reliability of a system, features, performance, outputs


QUALITY ASSURANCEQUALITY ASSURANCE

Process that ensures quality products/services are delivered to the customer(s)

Another goal of QA = continual improvement

Some tools used in QA Benchmarking, quality audits, fishbone diagrams Implemented to track progress of project


QUALITY CONTROLQUALITY CONTROL

Main goal = improve/ensure quality

Outputs: Acceptance Decisions: are final products/services accepted or rejected?

Rework: bring rejected items to compliance

Process Adjustments: correct or prevent future quality problems/situations

Testing is also conducted to ensure quality products/services are delivered


IMPROVE QUALITYIMPROVE QUALITY

Leadership Senior management must support and promote quality programs

Understand the cost of quality Cost of quality = cost of conformance + cost of non-conformance

Provides incentive for improvement if you understand the consequence of conformance vs. non-conformance

Strive for continuous improvement


HUMAN RESOURCE HUMAN RESOURCE MANAGEMENTMANAGEMENT


HUMAN RESOURCE MGT KEYNOTEHUMAN RESOURCE MGT KEYNOTE

What current organizations are dealing with:

Addressing ongoing problems in gender gap Finding future workers Improving benefits such as:

Redefining work hours (flex time) Other incentives (training for example) Bring pets to work Paying children’s college tuitions Free vacation rentals All good if performance-based


DEFINING HR MANAGEMENTDEFINING HR MANAGEMENT

Organizational planning Identify, assign, document project roles Include roles and responsibility assignments

Staff acquisition Getting needed personnel

Team development Building individual and group skills to enhance project

performance

Related issues Understanding organizations and their structures Understanding stakeholders Resource loading and levelling


MANAGING PEOPLEMANAGING PEOPLE

Some psychological theories for managing people and their behavior

Motivation Abraham Maslow Frederick Herzberg Douglas McGregor

Influencing others and reducing conflict H.J. Thamhain and D.L. Wilemon

Power and Teams Stephen Covey


ABRAHAM MASLOWABRAHAM MASLOW

Hierarchy of needs

People motivated by a hierarchy of needs From low to high:

Physiological Safety Social Esteem Self-actualization


FREDERICK HERZBERGFREDERICK HERZBERG Went against popular beliefs that productivity

increases with compensation ($$), more supervision needed, better work environment

Herzberg’s worker motivators are:

Achievement Recognition The work itself Responsibility Advancement Growth


DOUGLAS MCGREGORDOUGLAS MCGREGOR

Divided managerial approaches into x2 groups: theory X and theory Y

Theory X aka “Classical Systems Theory” assumes

Workers dislike and avoid work if possible Managers therefore must coerce Threats and other “controls” needed Worker wants to be directed Worker prefers to avoid responsibility Worker has little or no ambition Worker wants security above all else


DOUGLAS MCGREGORDOUGLAS MCGREGORTheory Y aka “Human Relations Theory” assumes

Individuals enjoy work Work is as natural as sleep and play Highest rewards are the satisfaction of esteem and self

actualization (as Maslow said)

Also new, OUCHIOUCHI and Theory Z Based on Japanese models of motivation Trust, quality, collective decision making, cultural values Workers can be trusted Emphasized job rotation, broadening skills, generalization - not

specialization, and job training


THAMHAIN and WILEMONTTHAMHAIN and WILEMONT

How to influence (rather than command) workers:

Authority Assignment Budget Promotion Money Penalty Work challenge Expertise Friendship / relationships with others


THAMHAIN and WILEMONTTHAMHAIN and WILEMONT

Project managers must earn the ability to influence Will fail if you rely too heavily on $$, authority or

penalty Must use expertise to influence Influence related to power


POWERPOWER

5 types of power: Coercive

Based on punishment, threat, coercion

Legitimate Based on position and status

Expert Based on personal knowledge and expertise

Reward Based on incentives and other kinds of rewards

Referent Based in individual’s charisma and like-able-ness


STEPHEN COVEYSTEPHEN COVEY

7 ways to improve effectiveness:

Be proactive Begin with one end in mind First things first (priorities) Think “win-win” Understand first, be understood second Synergize Sharpen the saw (refresh yourself)


STEPHEN COVEYSTEPHEN COVEY

A few corollaries

Empathetic listening requires: Rapport with others Mirroring (matching) behaviors to keep “in rhythm” with

others such as speed of talking, breathing, body movements


MISCELLANEOUSMISCELLANEOUS

Get the right … Technologies People Project Processes in place Business results focus

Organizational Planning Identify, document, assign right project roles / reporting

relationships Use RAM (responsibility assignment matrix), if possible Be clear on the kinds of workers you need

Get help from Deputy and subproject managers, but more coordination is

needed


ASSIGNING WORKASSIGNING WORK

Use key frameworks Finalize project requirements Define how work will be done Breakdown work into manageable chunks (WBS) Assign work responsibilities Use OBS (Organization Breakdown Structure) to help you Use RAM (Responsibility Assignment Matrix) Use staffing management plan (how people added/dropped

from the team) Resource histogram (show # of people/teams assigned

over time)


STAFF ACQUISITIONSTAFF ACQUISITION

Not only number of people & kinds of skill sets Also includes the kinds of people Keep accurate inventory of staff’s skills (who can do

what, even if they are not currently doing that) Focus on retention People leave their jobs because:

They feel they don’t/can’t make a difference No proper recognition Not learning or growing Don’t like coworkers Want to earn more $$


RESOURCE LOADING AND LEVELINGRESOURCE LOADING AND LEVELING

Importance of resource utilization and availability

Resource loading = the amount of individual resources needed during specific periods (person-hours, person-days, etc )

Over-allocation = not enough resources to match assignments

Resource levelling = move slack and under-utilized resources from a surplus area to a needed area (a kind of just in time intervention)


TEAM BUILDINGTEAM BUILDING

Common kinds of activities to build teams: Physical challenges Psychological preference indicator tools

(MBTI) Reward and recognition systems Remember:

Be patient Fix the problem, don’t blame the people Regular, effective meetings Teams between 3 and 7 people Plan team activities Stress team identity Acknowledge accomplishments


MYERS-BRIGGS TYPE INDICATORSMYERS-BRIGGS TYPE INDICATORS

x4 psychological types

E/IE/I (Extrovert/Introvert) Do you draw or give out energy? Think out loud or in your

head? S/I S/I (Sensation/Intuition)

Facts & details, or impressions & intuition? T/F T/F (Thinking/Feeling)

Logical or subjective? J/P J/P (Judgement/Perception)

Goal-oriented with deadlines, or process-oriented and open-ended “deadlines”?

Peoples’ attitude toward structure


DAVID MERRIL’S FOUR ZONESDAVID MERRIL’S FOUR ZONES

DriversDrivers Proactive, task-oriented, dominating, strong, practical, strive

for action ExpressivesExpressives

Proactive, people-oriented, future oriented, excitable, dramatic, friendly

AnalyticalsAnalyticals Reactive, task-oriented, critical, picky, stuffy, moralistic,

serious, persistent AmiablesAmiables

Reactive, people-oriented, relationship-oriented, comforting, unsure, supportive, agreeable, dependable


USING SOFTWARE TO MANAGE PROJECTSUSING SOFTWARE TO MANAGE PROJECTS

Why?

Track resources empirically Identify (be alerted to) potential shortages Identify (be alerted to) underutilized resources Use automated levelling of resources Only as good as people using the tool (workers need

to input, software configuration has to be well thought-out and appropriate for context)


COMMUNICATIONSCOMMUNICATIONSMANAGEMENTMANAGEMENT


COMMUNICATIONS MANAGEMENTCOMMUNICATIONS MANAGEMENT

Greatest threat to any project is failure to communicate (retreatism, ritualism) or mis-communication

Soft skills are a PM’s greatest asset

Although soft and technical skills are distinct, both are needed to succeed

Effective communication means focusing on outcome and objectives and listening to people


4 PILLARS OF COMMUNICATIONS MGT4 PILLARS OF COMMUNICATIONS MGT

Communicate planning Information distribution Performance Reporting Administrative closure

Let’s look at each one

In a way, communication = shared information


COMMUNICATIONS PLANNINGCOMMUNICATIONS PLANNING

Determine which (stakeholders) you need to communicate, and why and when

Create a communications management plan that guides project communications

Describe collection and filing structure for information gathering

Determine format(s) for communicating

Use a production schedule for producing information


COMMUNICATIONS PLANNINGCOMMUNICATIONS PLANNING

Determine access methods for obtaining information

Determine a method for updating communication documents (alerts?)

Do a stakeholder communications analysis with “notes” about each stakeholder and any communication needs or issues that may come up around them

Be consistent in every aspect of your communications

Derive communications from WBS


INFORMATION DISTRIBUTIONINFORMATION DISTRIBUTION

Determine the best way to communicate information Begin by using your stakeholder analysis

document Include use of technology (electronic format) Include formal and informal

F2f, telephone vs paper, email, web pages

Be aware of complexity of communications Use redundancy and different channels: different people –

different preferences

Oral communications builds relationships


MORE COMMUNICATION COMPLEXITY MORE COMMUNICATION COMPLEXITY Different people have different preferences We process information at many levels (verbal, non-

verbal, body language) Be aware of how the number of channels for

communication spiral as more and more people are added. The formula is:

# channels = n(n-1) / 2 So

2 people= 1 channel 3 people = 3 channels 5 people = 10 channels

The more channels, the more potential for errors


OTHER COMMUNICATION PROBLEMSOTHER COMMUNICATION PROBLEMS

Culture Language Geographic / regional differences Gender Power and status


PERFORMANCE REPORTINGPERFORMANCE REPORTING

Keep stakeholders informed throughout the project! Equivalent to input (intake) rather than broadcasting Status report =

Progress Milestones Failures Potential problem areas Forecasts Changes Costs Performance


PERFORMANCE REPORTINGPERFORMANCE REPORTING

Project forecasting Predicts future based on past trends Financially, behavior, time, costs, resources Use status review meetings


ADMINISTRATIVE CLOSUREADMINISTRATIVE CLOSURE

Verify results Document results Formal conclusion of sorts Analyze effectiveness Create archives for future use Includes formal acceptance of project Includes discussion of “lessons learned” Could be an audit Analysis of +/- Lessons learned


MANAGING CONFLICTMANAGING CONFLICT

Conflict is natural Conflict is inevitable High stakes = high conflict Common causes

Scheduling of tasks or hours Priorities Staffing Technical problems Administrative procedures Personalities Costs


5 WAYS TO RESPOND TO CONFLICT5 WAYS TO RESPOND TO CONFLICT

1. Confrontation Direct, open, issue-focused, solution driven

2. Compromise Give and take: compromise

3. Smoothing Avoid areas of disagreement

4. Forcing Autocratic override; solution imposed from

outside

5. Withdrawal Avoidance


IMPROVING COMMUNICATION SKILLSIMPROVING COMMUNICATION SKILLS

Is this taught / learned or “natural?” Can be achieved (or approximated by)

Role playing games Training and sensitivity courses (oriental / western conflict) Lead by example


RUNNING EFFECTIVE MEETINGSRUNNING EFFECTIVE MEETINGS

Define purpose and outcome Who should (should not) attend? Provide agenda before hand Prepare handouts, visuals, etc. Etiquette

Introduce people Re-state purpose and agenda Take minutes & distribute soon after Encourage participation Recap

Build relationships (rapport, fun,humour)


USING PROJECT TEMPLATESUSING PROJECT TEMPLATES

Advantages Learn from wisdom of the past Allows novices to see examples Saves time Standardizes reports, procedures, etc Can be modified to suit new circumstances

Disadvantages May not be appropriate for your context Not thought through


COMMUNICATION INFRASTRUCTURECOMMUNICATION INFRASTRUCTURE

= Set of tools, techniques, principles for facilitating effective transfer of information among relevant stakeholders

Tools = what (email, meetings,) Techniques = how (teams-subteams, f2f 1-1) Principles = why (purpose) Be sure of interrelationship between these


RISK RISK MANAGEMENTMANAGEMENT


PROJECT RISK MANAGEMENTPROJECT RISK MANAGEMENT

Defined as an art and a science Defined as possibility of loss or injury Uncertainty is involved Identifying, analyzing, responding to risk throughout

the project Impacts on project selection, scope, schedules,

costs, stakeholders Helps to avoid or limit runaway projects


RISK: OTHER KEY CONCEPTS RISK: OTHER KEY CONCEPTS

Ideas, projects and/or people can be … Risk aversive Risk-seeking Risk neutral

Risk utility or tolerance = intensity of reward or payoff

Minimize potential risks and maximize potential opps

There are correlations between risk-seeking and risk tolerance (rewards) – see next slidesee next slide


RISK PREFERENCE VS REWARDRISK PREFERENCE VS REWARD

FOR RISK AVERSE:FOR RISK AVERSE: as payoff >, satisfaction <

POTENTIAL PAYOFF

SATISFACTION



FOR RISK NEUTRALFOR RISK NEUTRAL: as payoff +/-, satisfaction +/-

POTENTIAL PAYOFF

SATISFACTION



FOR RISK SEEKING: as payoff >, satisfaction >

POTENTIAL PAYOFF

SATISFACTION


MAJOR PROCESSES IN RISK MGTMAJOR PROCESSES IN RISK MGT

Risk management planning Use WBS, stakeholder info on how to approach risk mgt activities

Risk identification Identify big/small risks, create categories of risk, i/o info

Qualitative risk analysis Prioritizing effects, characterize various kinds

Quantitative risk analysis Measure probability of occurrence and consequences, estimate effects,

probability of completion

Risk response planning Reduce threats, enhance opps, have a backup plan

Risk monitoring and control Monitor known risks, identify new ones, evaluate effectiveness


RISK MANAGEMENT PLANNINGRISK MANAGEMENT PLANNING

Deciding how to approach and plan for risk mgt Scan charter, WBS, roles and responsibilities Create a risk mgt plan = document procedures

managing risks. It asks … What is relevant to consider? What is the specific risk? How is it going to be mitigated? Who is responsible for implementing risk / response plan? When will milestones associated with risk approach? How much/many resources managed to mitigate risk?


RESPONSES TO RISKRESPONSES TO RISK

Contingency plans Pre-defined actions and responses

Fallback plans Put in place if contingency plans don’t work. Usually for

highest priority risks

Contingency reserves/allowances Resources held back by PM in case they are needed, or if

scope changes, or quality is an issue, etc.


SOURCES OF RISKSOURCES OF RISK

In descending order of influence User involvement Executive/mgt support Clear statement of reqs Proper planning Realistic expectations Competent staff Ownership


OTHER RISKSOTHER RISKS

Market Will deliverables (product) be usable in the marketplace?

Financial Can the project meet ROI and payback estimates? Can the organization afford to run the project?

Technological Will hardware, software, networks function properly? Will

technologies used stay current long enough?


McFARLAN’S RISK QUESTIONNAIREMcFARLAN’S RISK QUESTIONNAIRE

Consider each of the following categories Project’s elapsed calendar time Number of person-days Number of departments involved (not IT) Likelihood of additional hardware/software needed

Then provide 3-5 options for each item Rate each item low (=1 point), medium (= 2 points)

or high (=3 points)


TOOLS TO MANAGE RISKTOOLS TO MANAGE RISK Brainstorming

Reliant on lots of ideas and synergy: No judgements initially

Delphi technique Glean consensus from a variety of experts

Interviewing others (non-experts) Email, f2f, phone, www

SWOT (Strength/Weakness/Opportunity/Threat) Checklist of things learned from the ghosts of

projects’ past


MORE TOOLS TO MANAGE RISKMORE TOOLS TO MANAGE RISK

Visuals: Use system/work/flow/process diagrams

Use influence diagram Displays the components of each problem in terms of

what factors influence them -- many ways to visualize this

Identify triggers of risk such as cost overrun, technical failure, labour shortage, strikes


QUALITATIVE RISK ANALYSISQUALITATIVE RISK ANALYSIS

DSMC (Defense Systems Management College) invented a matrix calculation method

Two matrices Pf (probabilityprobability of failure) Cf (consequencesconsequences of failure)

Experts assign a numerical value between .1.1 and .99 to each item: higher the #, greater the probability and/or consequences

(more on next slide)


CALCULATING THE RISK FACTORCALCULATING THE RISK FACTOR

The weight of the risk factor is

Pf + Cf – (Pf x Cf)Pf + Cf – (Pf x Cf) Probability of failure + Consequence of failure – the product of both

If Pf = .5 and Cf =.9 the risk factor is

.5 + .9 – (.5 x .9) or 1.4 - .45 == .63


RISK ITEM TRACKINGRISK ITEM TRACKING

Identifies risks and maintains awareness of them

Monitoring and tracking of project’s biggest risk items (current and past periods in intervals of weeks or months)

Could be flexible enough to shift from monthly to weekly when a high risk milestone approached


QUANTITATIVE RISK ANALYSISQUANTITATIVE RISK ANALYSIS

Not primarily our business or scope here, BUT

Often accompanies qualitative RA Not always appropriate unless scale,

time, costs are high

Main tools Decision tree analysis and simulation May need interviewing and sensitivity

analysis to be completely and thoroughly understood


RISK MONITORING / CONTROLRISK MONITORING / CONTROL Ensure risk awareness is ongoing (vigilancevigilance)

Be ready for the possibilitypossibility of newly emerging risks (in addition to ones already identified)

Consider workaroundsworkarounds (improvised responses to emerging risks when contingency plans fail or do not seem adequate)


USING SOFTWARE IN RISK MGTUSING SOFTWARE IN RISK MGT

Helpful tools include

Databases Spreadsheets MS Project 2000 (in moderation) – it does a PERT

analysis


RISK MGT LAST WORDRISK MGT LAST WORD

Risk management may not eliminate risk but it can certainly reduce the frequency of the occurrence and the extent of the damage

Good luck!


PROCUREMENTPROCUREMENT


PROJECT PROCUREMENT MGTPROJECT PROCUREMENT MGT

ProcurementProcurement = acquiring goods/services from outside

Aka “purchasingpurchasing” Seeks vendors, providers, consultants, temps,

suppliers Aka “outsourcingoutsourcing” Why do it?

Reduce $$ (no benefits) Allow us to focus on our core business Levelling Fill in expertise gaps Provide flexibility


DISADVANTAGES (RISKS)DISADVANTAGES (RISKS)

You often give up some degree of control

You become dependent on outsourcers

If outsourcers go out of business, you’re beat!

Security, espionage, theft (of ideas, resources, even people)


PHASES OF PROCUREMENT PLANNINGPHASES OF PROCUREMENT PLANNING

Procurement Planning What to procure and when Create SOW (Statement of Work)

Solicitation Planning Documenting reqs and identifying possible providers

Solicitation Issue RFP, quotes, bids (gather information)

Source Selection Evaluating possible providers, negotiating, awarding

Contract Administration Monitor performance, pay, award modifications

Contract Close-out Are deliverables OK? Contract audit. Formal close


PROCUREMENT PLANNINGPROCUREMENT PLANNING

To procure or not to procure, that is the question

How? What? How much? When?

Determined also by scope statement, product descriptions, market conditions, constraints, assumptions


TOOLS AND TECHNIQUESTOOLS AND TECHNIQUES

Generally two things Creating make-or buy analysis Consulting with experts (internal experts should be included

because they are stakeholders)

Consider various contract options Fixed price / lump sum Cost reimbursable (issue invoices/claims for time & costs

including overheads – like govt grants) Time and material (hourly/daily/weekly) Unit price (any unit but # of units is pre-determined)

Exercise: what are pros and cons of each?


THE STATEMENT OF WORKTHE STATEMENT OF WORK

= Description of the work for the purposes of procurement

Helps suppliers decide if they can do the job

Gives bidders a sense of buyers expectations

Needs to be clear, concise, thorough Should use industry terms and standards Some orgs use SOW templates for

consistency


ELEMENTS OF THE SOWELEMENTS OF THE SOW

Scope of work (include hardware /software)

Location of work Period of performance (start/end, working

hours, # billable hrs / week, schedule)

Deliverables schedule Applicable standards Acceptable criteria (How will buyer decide of

work is acceptable? Remedies, etc)

Special Requirements (hardware, software, programming knowledge, etc)


SOLICITATION PLANNINGSOLICITATION PLANNING

Prepare solicitation documents Determine evaluation criteria Could include an RFP (Request for Proposal) or

RFQ (Request for Quote) In govt context be careful for legal constraints and

procedures that may be required

(well, maybe not this kind of proposal)


RFP EXAMPLERFP EXAMPLE

Purpose Org’s background Basic requirements Hardware/software/platforms What RFP process is SOW and schedule

Many (many) variations that could include legal waivers, affirmative action clauses, sometimes deliverables and sometimes not, sometime opps for questions and sometimes not


MORE SOLICITATIONMORE SOLICITATION

Try to weight various criteria before solicitation

Could include: Bidder’s past performance Technical or managerial approaches Cost Examples of past work done that is similar to current

request (portfolio) Reputation (sometimes reliable, sometimes dangerous) Consider tracking criteria and ratings in a spreadsheet


CONTRACT ADMINISTRATIONCONTRACT ADMINISTRATION

Could include price and other negotiations as part of the entire solicitation process

Be sure to include your own appropriate legal and accounting people – and other internal stakeholders -- in the loop

Do a series of redundant checks (writing and verbal) to ensure everyone understands terms and conditions


MANAGING YOUR OUTSOURCESMANAGING YOUR OUTSOURCES

A few suggestions …

Biggest item is change control (mechanisms, protocols, review-approval cycles)

Evaluation of change that includes documenting everything in writing, or with some kind of paper or electronic “trail”


Documents

Winter 2014Seneca College1 INTRODUCTION TO PROJECT MANAGEMENT by Peter Paolucci Winter 2012