Three paradigms managers need to ensure project success– Visibility, – Control, and – Optimization

Key points1. Managers can clearly communicate what

needs to be done 2. You can spot early warning signs before

projects fail3. Managers can ensure best practices are

followed and critical steps are not overlooked

Today’s Webinar

Visibility, Control & Optimization by “Management by Walking Around”

Why did we ever do this?

Can we still manage to do this?

Can we do it virtually?

WHY DID WE EVER MANAGE BY WALKING AROUND?

“Active” Management

MBWA Devised by Bill Hewlett & David Packard

Originally conceived as a morale booster

Hewlett & Packard were nerds bytraining, so theystudied the effects

Effects of MBWA - Morale

Never/Rarely 1-2 Times/Month

Weekly Regularly50%55%60%65%70%75%80%85%90%95%

100%

Effects of MBWA – Time on Task

Never/Rarely 1-2 Times/Month

Weekly Regularly50%55%60%65%70%75%80%85%90%95%

100%

Effects of MBWA - Performance

Never/Rarely 1-2 Times/Month

Weekly Regularly50%55%60%65%70%75%80%85%90%95%

100%

Effects of MBWA - Managers

HP saw that managers who more frequently engaged their teams were also re-evaluating decisions and reprioritizing risks/issues earlier in the project

Managers are in the loop, gaining multiple perspectives all the time

CAN WE STILL MANAGE BY WALKING AROUND?

One Thing Remains True:Projects Must Succeed1988: Bank of America loses $2.6 Billion in

trust accounts when migrating enterprise systems

1997: Oxford Health Plan’s shares fall 62% when executives realize their automatic billing system has a 15 month backlog for claims processing

2007: US Airways attempts to implement a new booking system – resulting in 1,220 delayed/cancelled flights (the most since 9/11, not counting volcanic ash)

Bank of America Project reviews were submitted

by team leads weekly

Estimates vs. Actuals were always good

Finished primary development and moved to test ahead of schedule

Test cases (particularly for load) were missing – A surprise to management, but not development

BofA loses $2.6 Billion in trust accounts when migrating enterprise systems

Project lacked Visibility, Control, and Optimization

Oxford Christmas, 1996 - Delivered new

“Pulse” processing system on time

Big-Bang style move took place on New Year’s, with the Financial Times labeling automated billing a “breakthrough success”

When subpoenaed, staff from all four development teams indicate that they had no confidence the new system could manage the load, but were never asked

Oxford Health Plan’s shares fall 62% when executives realize their automatic billing system has a 15 month backlog for claims processing

Project lacked Visibility, Control, and Optimization

US Airways

From close of businessFriday night to start ofbusiness Saturday morning, implementation teams report successful installation of new booking system at 100% of US sites

One of their biggest IT successes ever

When he appeared at the hearing that followed, the head of resources and infrastructure said “No one ever asked me about the move.”

US Airways experiences 1,220 delayed/cancelled flights (the most since 9/11, not counting volcanic ash)

Project lacked Visibility, Control, and Optimization

CAI We pride ourselves on delivering

projects on-time at a fixed price

Based on our estimating methodology, our track record is very strong

Eventually a project came along that was managed to the letter, but we found out close to delivery time that we had problems – our SMEs were aware, but our project manager did not have access to them

We were beginning to make mistakes. We quickly needed to get a communications, visibility, and enforcement system in place

Project lacked Visibility, Control, and Optimization

Various Data Sources Spreadsheets E-mail Project planning tools Portfolio management tools Etc.

Technology Most tools are not really oversight Tools focused on where you have

been /where you are. . . Not where you will be

Process Best practices are still maturing Priority is to complete projects. . .

Not to improve the Management process

Why Aren’t We There Today?(Management Challenges)

Large teams of people with distributed authority

Management Project teams Business management Outside experts Consultants PMO Review boards Etc.

Communications Status meetings Phone calls Presentations Etc.

MANAGING BY (VIRTUALLY) WALKING AROUND

Ever Have Surgery?

Does each doctor and nurse decide how to perform a procedure?

HAS Visibility, Control, and Optimization

Ever Fly in a Plane?

Does every pilot decide what is the best procedure to take off and land?

HAS Visibility, Control, and Optimization

Ever Buy a House?

Do you take the sellers word for it?

HAS Visibility, Control, and Optimization

Decomposing MBWA

What makes our best PMs that good?

They know the standards we expect

They know what to track

They know what questions to ask

Take Away #1Clearly communicate what needs to be done

Ask appropriate questions:– By type of project– By phase of project– By role responsibility– On schedule

Put it into a tool thatis accessible anywhere

Capture performance expectations

How We Communicate What Needs to be Done

Role based

Rule Based

Electronic checklists

Weekly assessments

Take Away #2 Spot early warning signs before projects fail

The best managers can understand what they see/hear

Codify the experience of thebest managers

Understand how they interpret data

How We Spot Early Warning Signs of Failure

Predictive analytics

Based on published IT industry studies of project performance research– Leon Kappelman– Mary Sumner– Robert Glass– Mark Keil

Four Key Measures:– RPL – Rework Prevention Level– SMART – Clarity of Task Assignments (Specific, Measurable,

Accountable, Relevant, Timely)– SMPL – Senior Management Participation Level– PAL – Process Adherence Level

Predictive Analytics

Take Away #3 Ensure best practices are followed and critical steps are not overlooked

Collect data on the behavior you want to be followed

Report on compliance

Make this behavior visible

Take action on what you see

How We Ensure Best Practices are Followed and Critical Steps are Not Overlooked

Via our Automated Project Office we ensure that the project’s cost, scope, schedule and risk profile are fully developed, documented and agreed upon by all stakeholders. We verify that the project plan is feasible from the point of view of the team charged with the work.

Stage Gating

Predictive Analytics

Scorecards

Weekly assessments

Dashboard drill-down

Earned Value

Stage Gating

Scorecards

Other Dashboards Providing Visibility

With Drill Down Capability

Summary

Benefits• Early operational

insight to enable risk mitigation

• Effective control and governance

• Increase likeliness of success

Three take-aways:1. Clearly communicate what

needs to be done 2. Spot early warning signs

before projects fail3. Ensure best practices are

followed and critical steps are not overlooked

Project success depends on a manager’s ability to retain visibility and control of the work force to optimize projects for success.

Paradigms needed to ensure success1. Visibility, 2. Control, and 3. Optimization

Thanks for attending !

For questions or for more information:peter_lechner@compaid.com

610-530-5230 www.CAIBuzz.com