Study Project in Global Business
General Guidelines
Choosing a Global Business Topic
Limit your scope
Something that interests you
The topic be academic or practical◦Scholar style◦Business project style
State your topic June 4th
Philosophical considerations
Note the university plagiarism policy
Failure is ok◦ In business situations usually better to state why an idea would not
work than to continue to pursue the idea◦ Creative ideas typically come after lots of dead ends◦ You will be evaluated on how well explain your position
Follow the anomalies◦ Data that does not fit often leads to rewarding avenues◦ Experts often overlook the unexpected◦ Reputations and fortunes have been made from spotting anomalies
and following them
Stay in scope
Make a plan
Any project will consist of manageable pieces◦Set intermediate goals◦Applies to individual projects as well as
enterprise projects
Stick to your milestones and deliverables
Mountains are climbed one goal at a time
Suggested milestone dates
Group A Group B
Monday 25 June◦ Plan for source data
Monday 9 July◦ Data organization
Monday 30 July◦ Draft of finding or bus plan
Monday 13 August◦ Draft of Report
Monday 20 August◦ Draft presentation
Wednesday 27 June
Wednesday 11 July
Wednesday 1 August
Wednesday 15 August
Wednesday 22 August
Effective Project ManagementStructure of large organizations
Large organizations evolve away from transactions orientation ◦Routine tasks are outsourced◦Typical transactions functions
Repetitive Low skill Low pay
Move toward project orientation◦May have internal consulting organizations◦Other staff may form teams for the duration of a
project, or for parts of a project◦Traditional staff functions like marketing or finance
become project oriented
Effective Project ManagementProject lifecycle
1. Identify a need◦Request for proposal (RFP)
Written by customer Contractors respond with
◦How they might solve the problem◦Costs and schedule for the work
◦ Informally - needs defined in meetings or by management Typically handed off to internal project team Important to correctly define the need (very often
management will have only a vague idea) Very common for entire departments to be project
oriented (example are FP&A or internal consulting)
Effective Project ManagementProject lifecycle
2. Develop a solution◦Proposal to customer
Contractors submit proposals and bids◦Develop approaches to a solution◦Estimating types and amounts of resources needed◦Estimate of time to design and implement the solution
Internal team responds to management or team defined need or request◦Work will be preformed by internal staff◦Often parts are contracted out for specialized expertise
Effort in this phase is from contractors or internal project staff
◦Negotiate and sign a contract (note internal teams often have written agreement)
Effective Project ManagementProject lifecycle
3. Perform the Project◦Detailed planning
◦Implement the plan to accomplish the objective
◦Accomplish the objective Project complete when it is accepted by the
customer◦Customer obligation to review or validate results◦This is where careful wording of contracts is important
Quality, budget, time
Effective Project Management Project lifecycle
4. Terminating the project◦Confirming all deliverables accepted by
customer
◦Confirming invoices sent to customer and paid (internal projects often transfer priced)
◦Evaluate performance of the project Customer feedback Team feedback
Effective Project ManagementImportance of Planning
Establish a baseline plan◦Define project objective◦Divide the project into major packages ◦Define the specific activities for each work package◦Portray the activities in a network diagram
Sequences Interdependencies
◦Make time estimates for each activity◦Make cost (resource) estimates for each activity◦Calculate a project schedule and budget
Adjust scope, time estimates, or resources if necessary
Baseline plan is critical to success of any project
Effective Project ManagementImportance of Planning
◦Elements of a baseline plan Start and completion dates for each activity Amounts of resources for each time period Budget for each time period and cumulative budget
through each period
◦Monitoring progress through the project Compare to planned progress Must know which activities have been started or
completed When the activities began and ended How much money has been spent or committed
◦Take corrective action as needed
Effective Project ManagementImportance of Planning
◦Earned Value Percent complete for each work package
◦Subjective estimates◦Honesty is critical (avoid overconfidence)◦Smaller work packages are better
Multiply percent complete against Total Budgeted Cost=EV Compare with Cumulative Actual Cost to see if value of
work performed is keeping up with cost. Cost performance index (CPI)= CEV/CAC
◦Earned value divided by actual cost◦Use this to estimate forecast cost at completion◦Forecast cost to completion = Total budget cost/CPI◦Method assumes continuing efficiencies or inefficiencies
◦Hazard of becoming PM mid-project = false % complete
Effective Project ManagementManaging the Project
◦ Cumulative actual cost (CAV) Total amount spent at a point in time Could be low or high due to % completion
◦ Cumulative budget cost (CBC) Amount budgeted to a given point in time Assumes work is on schedule
◦ Cumulative earned value (CEV) Value of work actually performed so far Adjusts the budget amount for % completion
◦ Cost Variance = CEV – CAC ($ gap between work performed and actual cost)
◦ Assuming budgeted efficiency going forward: FCAC=CAC + (TBC-CEV) Actual cost so far plus total budgeted minus earned value Implies any efficiencies or inefficiencies so far will go away Contrast with TBC/CPI approach (continues efficiencies or inefficiencies)
Project Manager Responsibilities
Plans, organizes and controls the work to accomplish the project objective
Assures that the customer is satisfied that objectives are achieved◦On time◦ In budget◦Right quality
Develops plans or leads others to develop◦Reviews with the customer◦Sets up a tracking mechanism
Organizes the work◦Gets commitments or signs contracts◦Assigns accountability
Tracks actual progress against plan
Skills of a Project Manager
Ability to handle stress◦ Conditions change constantly
Conflicts Technical problems Customer requests
◦ The PM has to be calm◦ Help project team handle their stress
Problem-solving◦ Early identification of problems
Accurate information Open communication
◦ Analytical skills◦ Big picture view
Effective time management◦ Self-disciplined◦ Organized◦ Willing to delegate
Managing change
Changes can be caused by◦ Customer◦ Project team◦ Unexpected events◦ User of the project results
Change later in a project has greater impactCreate procedures for documenting and authorizing
changes◦ Communication between PM and customer◦ Communication between PM and project staff◦ Always put changes in writing◦ Avoid doing slight enhancements for free
Managing end-user change (procedures)◦ Often very difficult◦ Time and patience to overcome resistance to change◦ Work with end-users during project design
Delegation defined
Delegation is assigning responsibility and giving authority to make decisions
Successful delegation requires establishing accountability◦PM defines tasks and desired results
Scope Quality Budget Schedule Expected product
◦Clearly communicating expectations◦Tracking systems◦Regular meetings
Degrees of Delegation
1= least delegation. 6 = most delegation.
1 Investigate the problem. Give me all the facts, and I’ll decide what to do and who will do it.
2 Investigate the problem. Let me know possible alternatives and recommend one. I’ll decide.
3 Investigate the problem. Let me know what action you prefer to take. Wait for my approval.
4 Investigate the problem. Let me know what action you will take. Do it unless I say no.
5 Investigate and take action. Tell me what you did.
6 Investigate and take action. You decide if you need to tell me.
Delegation Issues
Allocate sufficient resources◦ Match skills to the task◦ Empower individuals to decide how to use budgeted resources◦ Stretch assignments develop people (look at potential)
Do not tell people how to do the job◦ They will feel PM lacks confidence in them◦ They will be less committed to the result◦ Effective management requires showing confidence in people◦ People will be more creative when they can decide
Avoid criticizing◦ Fear of failure causes paralysis◦ Fear will cause people to ask the manager to approve everything
Establish accountability◦ Clearly define expectations◦ Project management information system◦ Reporting system◦ Measure and evaluate progress relative to plan
Elements of a Successful Project
Select the right project◦Fits the business◦Look at alternatives (such as incremental changes)
Find the right people for the projectSelect the right contractors when employees
lack expertise◦Use employees as leaders ◦Or customer employees as leaders
Use off-the-shelf products where possibleSchedule regular progress meetingsEstablish control mechanisms
◦Keep project within scope◦Keep project on schedule and on budget
Leading a project
Make things happenLet things happenWonder what happened
Set a positive example◦ Work late if that is required◦ Project a positive attitude – enjoying the work◦ Focus on ways to get the job done◦ Reward milestones
Create an environment of trust, and of high expectations
Recognize successes, avoid discouraging peopleCreate a vision for others to follow (goals and
benefits)Delegate and hold people accountable
Communication
Timely, honest and direct◦Prevents rumors◦Builds trust
Share good and bad news quicklyCreate an atmosphere that encourages open
communication◦Accept differing points of view◦Allow people to bring issue without fear◦Solicit comments and ideas, rather than dominate
High level of communication most important early in project◦Builds good working relationships◦Establishes clear expectations with the customer
Developing people
People gain knowledge and competency from the project◦Technical development◦Problem solving◦Negotiating and time management
Acknowledge that mistakes happen◦No fear of failure◦Create stretch assignments
Follow up on formal training◦Assignments◦Presentations
Barriers to team effectiveness
Unclear goals◦ PM needs to articulate vision of the goals and expected benefits from the first meeting◦ The vision needs to be said repeatedly at status review meetings throughout the project
Lack of project structure◦ Importance of establishing procedures for communication, approvals, documentation◦ Provided in written form and reinforced
Unclear definition of roles◦ Ambiguity or overlap of roles◦ Explanation of how individual roles relate to others’
Turnover◦ Small number of people working on long term is more efficient than large number working
short term Highly important concept Idea is that putting more human resources on a lagging project commonly does not bring
speed◦ Look for people with versatile skills, can contribute to multiple aspects of the project◦ Specific expertise for short time commonly contracted out
Bad behavior◦ Hostility, lack of professional comportment, disruptive behavior◦ Need to follow through with release from project if behavior continues
Lack of commitment◦ Recognize accomplishments◦ Explain importance of each project role
Ethical behavior
PM sets tone◦ Does what seems right and fair◦ Communicates the expectation◦ Written policy and training on ethics
Types of unethical behavior◦ Kickbacks on purchased materials◦ Submitting low bids with intent to raise price later◦ Dishonest time reporting◦ False travel expense reports◦ Plagiarism and taking credit for the work◦ Bribing inspectors or approving bad test results◦ Misleading the customer about project status◦ Taking supplies or equipment for personal use
Need for peer pressure against ‘trying to get away with being caught’
Unethical behavior erodes trust and entire foundation of integrity
Time management
Make weekly lists of goals for the next weekMake to-do lists at the end of each dayRead the daily to-do list first thing in the
morningControl interruptions
◦Set aside blocks of time for e-mails, returning phone calls
◦ Interruptions cause inefficiencyLearn to say no to avoid over-commitmentUse waiting timeTry to handle paperwork only onceReward yourself at the end of the week (if)
Sources of Conflicts
Work scopeResource assignments
◦Requests for more resources◦Requests for different assignments
Schedule – sequence or duration of tasksCost – who pays for overruns?Priorities
◦People work on multiple tasks◦Limited equipment resources
Organizational issues◦Ambiguous or inadequate communication◦Lack of timely decision making◦Leadership style or procedural issues
Personal differences – such as resentments
Handling conflict
Conflict can be beneficial◦Raises awareness of problems◦Can cause clarity, creativity, or problem solving
Avoid withdrawing from conflict or forcingCompromise solutions often less than bestConfront issues directly
◦Problem solving approach Places high value on outcome and relationships Open exchange of information (no-one tries to win) Requires willingness to work in good faith and understand
other points of view Honesty required
◦Manage emotions (try not to become attached to a point of view)
Problem solving – nine step approach
Develop problem statement – specific Identify possible causes of the problem Gather data and verify likely causes
◦ Distinguish symptoms from causes◦ Work on correcting causes
Identify possible solutions◦ Avoid doing the first or most obvious◦ Try creativity (brainstorming)
Evaluate alternative solutions◦ Need weighted criteria for a scorecard◦ Evaluate each viable solution against the criteria
Determine best solution◦ Scorecard is an input◦ Use expertise of the team to reach final decision
Revise the project plan◦ Will the proposed solution cause problems elsewhere?◦ Incorporate solution into the project plan
Implement the solution Determine of the problem has been solved