cs 01 dua using cultural change to introduce e v p m

CS-01-Dua

Using Cultural Change to Introduce Earned Value

Performance Management into a SME Rural Construction

Company.

Presenter:Raphael DuaGeneral ManagerMicro Planning International Asia [email protected]

PMI College of Scheduling

“PMI” is a registered trade and service mark of the Project Management Institute, Inc.

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Cultural Change

• Stage 1 – Culture Assessment• Stage 2 – Culture Gap Analysis• Stage 3 – Changing the Mindset;

Influencing Cultural Change• Stage 4 – Maintaining the New

Culture



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Changing Existing Culture to Desired Project Management

Culture

IdentifyExisting

CorporateCulture

IdentifyExisting

CorporateCulture

DetermineDesiredProject

CorporateCulture

DetermineDesiredProject

CorporateCulture

AssessingThe Corporate

CultureGap

AssessingThe Corporate

CultureGap

PerformanceRewardSystem

RoleModels

ResultsMonitoring

&Fine Tuning

Training,Orientation

& Motivation

CommunicationsSupport

Policies&ProceduresAlignment

Recruitment& Selection

WorkforceReorganisation

ChangingMindsets:

Shaping BeliefsValues

& Attitudes

Internalising&

Sustaining TheNew

Project Management

Culture

Internalising&

Sustaining TheNew

Project Management

Culture



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Stage 2 – Culture Gap Analysis

• Analysing the gaps between the existing corporate culture and the new or changed project management one.

• investigated the people involved, company policies and procedures, the corporate IT strategy, company project structure, the corporate mission and goals.

• Analysing what currently makes the company successful and what hurdles get in the way to prevent it from achieving the defined corporate goals does this.



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Stage 2 – Culture Gap Analysis (2)

• In addition there will be missing links that need to be identified, for example the right resources, the right type of management and leadership style.

• Staff needs to be trained in the new ways of project management and be available in order to achieve the benefits that the new culture will bestow.

• The gap analysis results will provide proper input to develop the change programs necessary to shape, develop and influence the new corporate culture



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Stage 3-Changing the Mindset; Influencing Cultural Change

• The most difficult thing in changing corporate culture is the existing mindsets of the staff and other people involved.

• It is not unusual for a client to stop doing business with a company because of changes that the company has invoked.

• It is essential that all parties are fully involved with the new policies, new ways of doing business and projects that evolve, new working practices and changes to established relationships.

• Strategic alliances are becoming more evident and this will necessitate cultural change in the company.



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(2)• There are various ways in which a company

can go about this challenge, but the best we have found is to have “Change Agents”.

• People who make good change agents can be found at all levels of the company and as such they become “role models” for all the other people involved.

• It is their attitudes and regular behaviour implementing the changes in the working environment, which will reflect the desires of the board in making the new culture successful.



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(3)• Implementing a new or changed project

corporate culture takes strong management and constant monitoring as well as fine-tuning of the ways and methods.

• A practical way of ensuring the company meets the new goals and operates successfully under the new culture is to reward those individuals or teams who contribute to the success.

• Performance awards, promotions that recognise, encourage and reinforce the practice of the new culture, can achieve this.



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Stage 4 – Maintaining the New Culture

• Staff are clear as to the goals of the company• Staff are involved and that their views are

valued and sort as input to the various decision making processes that abound

• The work environment is a friendly and inviting with staff actively enjoying participation in projects

• Project communication is clear, timely and relevant

• That the projects do get the resources and support that is needed to successfully complete it

• That management recognises staff and respects them for their part in the project



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Who Are We?

• Who we are and what we do?• How did we start to create a

Corporate Project Management Culture?

• Partnership at Work• Aims and Objectives• Developing the workplace

partnership involving all parties• Providing an adequate social

and/or economic return to the workplace?



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What did we do?

• Workplace performance/productivity and the quality of working life for workers

• Establishing the framework for implementing Earned Value Performance Management



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Part of Workshop Tasks



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Partnership at Work

• During the course of establishing a relationship with stakeholders, sub contractors and funding plans of our own (in March 2004) based on worked done in other types of industry, the Department of Industry, Innovation and Regional Development of the Victorian State Government announce a round of funding for a “Partners at Work” initiative. Program aimed at encouraging SME’s to get together in a more structured and inclusive way & developing various key indicators, such as – Cultural Change, – Sustaining Partnership with Key Stakeholders– Consultation, communication and participation– Business literacy and continuous improvement– Innovative approach to diversity at work or

workplace flexibility



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Risk Management

• Identifying and Managing Risk As per AS4360



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Risk ManagementAnalysis and Management of Risks

• Business risks,• Building risks• Safety Hazards• Technical risks,

Design Materials Insufficient detail in specifications

• Reluctance by unions to take part• Schedule risks,• Application and Information Technology

Systems Integration risks,• Sub-contractor and vendor risks,• Implementation risks,• Training risks.



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Risk Analysis



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Getting Going

• Establishing the Project Office• Project Control and Reporting

Process• Project Control and Reporting

Process Summary• Establishing our EVPM System



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Work Breakdown Structure



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The Work Breakdown Structure

Title: E G TA FE A uto TradesTime Now: 2-May-05

EGT +E ast Gippsland TA FE A uto Trades

$2141963.5121-Mar-05 16-Nov-05

EGT1P reliminaries

$142265.9121-Mar-05 15-Nov-05

EGT2 +P rime Cost Items

$17203.632-Nov-05 16-Nov-05

EGT3 +P rovisional S ums

$49999.9929-Mar-05 16-Nov-05

EGT4 +E quine Centre

$67404.002-May-05 6-Jun-05

EGT41Relocate S hed

EGT42Relocate S table

EGT43New W ater

$12120.0031-May-05 6-Jun-05

EGT44New E lectricity

$55284.002-May-05 6-May-05

EGT5 +Trade Centre

$1865089.9821-Mar-05 16-Nov-05

EGT51S ite W orks

$14780.0021-Mar-05 8-A pr-05

EGT52 +S tructure

$602204.3626-A pr-05 8-Nov-05

EGT53 +Rough In (40% )

$656277.7922-A pr-05 30-A ug-05

EGT54 +Fit Off (60% )

$591827.8326-A pr-05 16-Nov-05

EGT541E lectrical Fit Off

$76954.202-Nov-05 16-Nov-05

EGT542Mechanical Fit Off

$30000.002-Nov-05 16-Nov-05

EGT543Hydraulics Fit Off

$33687.002-Nov-05 16-Nov-05

EGT544Timberworks Fit Off

EGT545Metalwork Fit Off

EGT546W indows Fit Off

EGT547Doors Fit Off

$107405.2715-S ep-05 8-Nov-05

EGT548Linings

$100735.8831-A ug-05 13-Oct-05

EGT549Joinery

$32116.122-Nov-05 16-Nov-05

EGT54AP aint

$76445.4523-A ug-05 5-Oct-05

EGT54BFloor Coverings

$800.003-Nov-05 3-Nov-05

EGT54D +E xternal W orks

$133683.9126-A pr-05 29-A ug-05

EGT54D1Fencing

$6154.972-May-05 31-May-05

EGT54D2E quine Centre Fence

$24619.8526-A pr-05 3-May-05



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Outline GanttTitle: EG TAFE Auto TradesTime Now: 2-May-05

1-Mar-05 1-Jun-05 1-Sep-05 1-Dec-05

EGT East Gippsland TAFE Auto Trades

Automotive Trades Centre Commenced

EGT1 Preliminaries

EGT2 Prime Cost Items

EGT3 Provisional Sums

EGT4 Equine Centre

EGT41 Relocate Shed

EGT42 Relocate Stable

EGT43 New Water

EGT44 New Electricity

EGT5 Trade Centre

EGT51 Site Works

EGT52 Structure

EGT53 Rough In (40%)

EGT54 Fit Off (60%)

EGT541 Electrical Fit Off

EGT542 Mechanical Fit Off

EGT543 Hydraulics Fit Off

EGT544 Timberworks Fit Off

EGT545 Metalwork Fit Off

EGT546 Windows Fit Off

EGT547 Doors Fit Off

EGT548 Linings

EGT549 Joinery

EGT54A Paint

EGT54B Floor Coverings

EGT54D External Works

EGT54D1 Fencing

EGT54D2 Equine Centre Fence



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Critical Path Network



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Baseline Cost Profile



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Trade Break Down



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Total Cost of All Resources

Others (1.1%; $23458.17)

Prelimin's (6.6%; $142265.91)Site Works (0.7%; $14780.00)

Struct Steel (9.2%; $196525.44)

Concrete (8.5%; $181818.18)

PreCastPanel (3.1%; $67272.73)

Timber Works (14.2%; $304900.90)

Joinery (1.5%; $32116.12)Roofing (5.4%; $114645.00)

Windows (3.8%; $80363.64)Metal Works (1.3%; $27111.75)

Doors (0.7%; $15935.00)Int Linings (4.7%; $100735.88)

Painting (3.6%; $76445.45)

Electrical (14.2%; $304520.00)

Mechanical (5.3%; $114545.45)

External Wks (4.8%; $102909.09)

Security Vid (0.6%; $13636.36)

Hydraulics (7.2%; $154351.51)

SunScreen (0.4%; $9090.91)Hardware (1.0%; $21818.18)

Termite K (0.6%; $11943.00)Fencing (1.4%; $30774.82)

Title : Total Cost of All ResourcesTotal : $2141963.48



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Actual Costs to Date

Prelimin's (41.2%; $51927.06)

Site Works (11.7%; $14780.00)Concrete (8.5%; $10695.19)

Hydraulics (19.8%; $25022.00)

Site MGT EGA (2.4%; $3030.30)Signage (0.8%; $990.91)

Fencing (15.6%; $19695.88)

Title : Actual Costs to DateTotal : $126141.34



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Remaining Costs of Resources

Others (1.0%; $19436.96)

Prelimin's (4.5%; $90338.85)

Struct Steel (9.7%; $196525.44)

Concrete (8.5%; $171123.00)

PreCastPanel (3.3%; $67272.73)

Timber Works (15.1%; $304900.90)

Joinery (1.6%; $32116.12)Roofing (5.7%; $114645.00)

Windows (4.0%; $80363.64)Metal Works (1.3%; $27111.75)

Doors (0.8%; $15935.00)Int Linings (5.0%; $100735.88)

Painting (3.8%; $76445.45)

Electrical (15.1%; $304520.00)

Mechanical (5.7%; $114545.45)

External Wks (5.1%; $102909.09)

Security Vid (0.7%; $13636.36)

Hydraulics (6.4%; $129329.51)SunScreen (0.5%; $9090.91)

Hardware (1.1%; $21818.18)Termite K (0.6%; $11943.00)

Fencing (0.5%; $11078.94)

Title : Remaining Costs of ResourcesTotal : $2015822.15



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Cost Status Report



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Resource Histogram



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Management Summary Gantt



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Project Gantt for Site by Stage



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Trade Progress & Updating Report



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Progressed Cost Profile



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Typical Building



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Typical Building



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The Site Shed



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Conclusion

• Questions and Answers

• Visit MPI web site• http://www.decisivetools.com.au



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Raphael M DuaMicro Planning International Asia Pacific

P O Box 7177St Kilda Road

MelbourneVictoria

Australia 8004+61 3 9642 [email protected]

cs 01 dua using cultural change to introduce e v p m

Business

new corporate culture

new culture staff

new culture successful

existing culture

new projectmanagement

existing corporate culture

culture assessment stage

culture gap analysis