exeutive's tri-fold quick reference card of project planning and control- free

1©2007,8 Logical Model Ltd [email protected]

1

Licensed for individual use without fee. A commercial license ([email protected]) removes this note: Please report unlicensed commercial use & share in fees levied

• Approval to investigate the idea• Approval to invest in qualifying the business case• Approval to proceed to each visible horizon/ next bend in road• Approval to proceed when changes arise

– Change whose possibility wasforeseen or not

– Change that is optional, mandatory,positive or negative

• Approval to close the project– Prematurely or Completion of development– Transfer of assured benefits enabler to Business As Usual (BAU)– Asset/ capability brought into use (by SPA) to generate a benefits stream

Benefits Management:Granting Approvals


2


Conclusions

• “Those who by valorous ways become princes…acquire a principality with difficulty, but they keep it with ease. The difficulties they have in acquiring it arise in part from the new rules and methods which they are forced to introduce to establish their government and its security.

• And it ought to be remembered that there is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. Because the innovator has for enemies all those who have done well under the old conditions, and lukewarm defenders in those who may do well under the new.

• This coolness arises partly from fear of the opponents, who have the laws on their side, and partly from the incredulity of men, who do not readily believe in new things until they have had a long experience of them. Thus it happens that whenever those who are hostile have the opportunity to attack they do it like partisans, whilst the others defend lukewarmly, in such wise that the prince is endangered along with them.”

– Nicoli Machiavelli, 1469–1527


An Executive Perspective onWhat Matters

in Project ManagementSimon Harris, PMPSimon Harris, PMP

Ignorance is more expensive than education


4


Actuals

Planning Packages

Rolling Wave PlanningBefore/ After Stage Boundary

Far Term Activities

Time Now

Near Term Activities

Work packages

As detailed as is possible with what we know today

Named resourcesDetailed tasksFinal/Definitive Estimates

Generic resourcesActivitiesIndicative Estimates

Generic resourcesPhasesROM Estimates

Outline PlanningDetail Planning


5


Your ROI!

• Consider how do you get the return on your sunk-cost: the time spent here today

– It isn't what you’ve heard but what you do with it that makes the ROI

What we have not covered• How to establish strategy• How to translate strategy to strategically aligned projects• How to create & communicate a vision of project end state • How to translate end-state into deliverables & tasks

(I.e achieve scope control)• How to achieve benefits after project delivery• How to measure benefits ( and KPIs/ KGIs)• How to manage portfolios and programmes

(especially from a limited or matrix structured resource pool)• How to select between projects

(I.e. ration the ability to absorb change)• How to ensure motivation (aka “engagement”)• How to maintain visibility of project status• How to close-down projects naturally or pre-maturely• How to define & capture acceptance criteria• How to verify acceptance criteria as we go

(I.e. measure achievement)• How to validate acceptance criteria at the end

(I.e. secure handover and be ready for Benefits Delivery)• How to estimate resource and budgets • How to make provision for uncertainty• How to track resource & budget usage vs. achievement

(I.e. confirm value for money)• How to assess and manage risk• How to establish communications & reporting• How to assess project complexities & select a matched project manager• How to delegate project monitoring• How to perform as a project board member• How to create & operate a governance structure etc etc etc.

What we have not covered• How to establish strategy• How to translate strategy to strategically aligned projects• How to create & communicate a vision of project end state • How to translate end-state into deliverables & tasks

(I.e achieve scope control)• How to achieve benefits after project delivery• How to measure benefits ( and KPIs/ KGIs)• How to manage portfolios and programmes

(especially from a limited or matrix structured resource pool)• How to select between projects

(I.e. ration the ability to absorb change)• How to ensure motivation (aka “engagement”)• How to maintain visibility of project status• How to close-down projects naturally or pre-maturely• How to define & capture acceptance criteria• How to verify acceptance criteria as we go

(I.e. measure achievement)• How to validate acceptance criteria at the end

(I.e. secure handover and be ready for Benefits Delivery)• How to estimate resource and budgets • How to make provision for uncertainty• How to track resource & budget usage vs. achievement

(I.e. confirm value for money)• How to assess and manage risk• How to establish communications & reporting• How to assess project complexities & select a matched project manager• How to delegate project monitoring• How to perform as a project board member• How to create & operate a governance structure etc etc etc.


6


What is Corporate Governance

• Sir Adrian Cadbury– “…system by which … boards of director’s set … aims … supervise the

management of the business …”– "balance between economic and social goals …framework … to encourage

the efficient use of resources … accountability. The aim is to align as nearly as possible”

• COSO** report’s five components for effective controls:1. Control environment: tone set by management’s style & philosophy2. Risk management: address the dynamics of the company’s situation3. Control activities: policies and procedures that respond to risks to objectives 4. Information and communication: 2 way, 360 degree flows5. Monitoring of control system’s effectiveness: Deficiencies reported & fixed

PROJECT

* The Cadbury Report – 1992 & 'Global Corporate Governance Forum', World Bank, 2000**Committee of the Sponsoring Organisations of the Treadway Commission


7


Actuals

Planning Packages

Rolling Wave PlanningBefore/ After Stage Boundary

Far Term Activities

Time Now

Near Term Activities

Actuals

As detailed as is possible with what we know today

Named resourcesDetailed tasksFinal/Definitive Estimates

Generic resourcesActivitiesIndicative Estimates

Detail Planning

Work packages


8


If you are interested in instructor led training we would be pleased to discuss requirements

• Consultancy & training in– Basic structured project management– Tools and techniques for advanced

project & programme management– Leading complex projects– Recovery of struggling projects– Creating & running PMOs– Project Risk and Quality Management– Using Earned Value Analysis– Board briefings on project control &

governance

• Continued…– Dimension Four® Benefits Realisation

Method training and consultancy– PRINCE2® Exam preparation &

PRINCE2® use in the real-world– Implementing IT Governance using the

CobiT® Framework– Implementing Benefits Realisation &

Lessons Learned processes

• For further help & assistance– [email protected] +44 (0) 84 52 57 57 07


9


Sponsor’s Duties

• At project initiation– Ensure goal is clear to all and gauge level of consensus (handle politics)– Commission PM, secure resources/ budget

• During project conduct– Monitor the market place & organisation for ±risk to business case– Clear log-jams reported by the PM

• At closure and post project– Agree work done is “good enough” (or ensure remediation)– Ensure loose-ends 1) don’t stop closure 2) have a safe home– Direct activity to capitalise on new capabilities


10


(Safe) Project = (Governance over) Change

Stable

TechnicalDelivery

Technical ChangePlanning

Technical ChangePlanning

Business PlanningBusiness Planning

ChangeObjective

Business TransitionBusiness Transition

Measure the resultsMeasure the results

Set vision or goalSet vision or goal

Define measuresDefine measures

Plan Benefits ManagementPlan Benefits Management

Engage business participantsEngage business participants

Measure the Status QuoMeasure the Status Quo

Plan for realisationPlan for realisation

Involve business participantsInvolve business participants Foster business ownershipFoster business ownership

Embed tracking processEmbed tracking process

Business Change

Technical Change

Project BasedChange

Stable

Project Governance


11


Decision MakingArchitecture

Cascade intent &

constraintsD

elegated Authorities &

Tolerances (freedoms) E

scal

ate

deci

sion

s ou

tsid

e au

thor

ityR

epor

t, S

eek

Gui

danc

e

What VisionWhat Vision How: StrategyHow: Strategy

What StrategyWhat Strategy How: GoalsHow: Goals

What GoalWhat Goal How: TasksHow: Tasks

What TasksWhat Tasks ImpactsImpacts

Mission& Values

WhyWhy

Technical Solution Designand execution

Technical Solution Designand execution

Project Design (Planning)Project Design (Planning)

Divisional Objectives(Architectures)

Divisional Objectives(Architectures)

Business Design (Modus

Operandi)

Business Design (Modus

Operandi)60 Months

60 Months

18 Months18 Months

9 Months9 Months

3 Months3 Months


12


‘Best Practice’Project Planning & Tracking

ScheduleEstimating

ScopeEstimating

Needs or ObjectivesStrategic Risk

Needs or ObjectivesStrategic Risk

ResourcingResourcingDependenciesDependencies

Response toTactical Risk

Response toTactical Risk

Monitoring, Tracking &

Control

Monitoring, Tracking &

Control

Cost &Resource Estimating

DeliverablesBill of Materials & Quality Description

DeliverablesBill of Materials & Quality Description

Task List (WBS) &Work Assignments (OBS)

Task List (WBS) &Work Assignments (OBS)

Cost BaselineCost BaselineScope & ResponsibilityBaseline

Scope & ResponsibilityBaselineSchedule BaselineSchedule Baseline

FinalisedCost/ Time/ Scope baselines

FinalisedCost/ Time/ Scope baselines


13


What Is Different InEach Quadrant?

Clear Goal Unknown Goal“Where ever we are going

it is ‘away from here’“

• What are the planningcharacteristics of each quadrant?

• Risks, Rewards, Controls,… ?

IncreasingUncertainty

Increasing Uncertainty

From Eddie Obeng All Change!*

Alien

Stranger

Repeater

RunnerExperienced& Skilful

Unskilled,Inexperienced


14


Costs

Worst Imaginable

Most Likely

Best ImaginableWorst Imaginable

Most Likely

Best Imaginable

Worst Imaginable

Most Likely

Best Imaginable

BenefitsCosts

Benefits

Worst Imaginable

Most Likely

Best ImaginableLow RiskLow Risk

Risk: ProbabilisticCost Vs. Benefits

High RiskHigh Risk


15


• Team– 1 + 1 + 1 = 4

• Motivation belief understanding involvement– Walls, yellow-stickies, “is composed of”

Tools For Building Teams Around Goal Definition

Buy Carve Eat Roast

OBS TASKS Family Lunch

Roast Turkey Vegetables Beverages

Prep Eat Buy Boil Peel Buy Chill ServeServeServe

OutcomeBS Family Lunch

Roast Turkey Vegetables Beverages Staff


16


Go/No-GoGo/No-GoGo/No-GoGo/No-GoGo/No-Go Go/No-Go

Development & Management Stages

DesignInvestigation Build Integrate Accept MaintainDeploy

I D B I A D I D B I A D I D B I A D I D B I A D I D B I A D

Initiating Closing

PlanningExecuting

Controlling

PlanningExecuting

Controlling

PlanningExecuting

Controlling

PlanningExecuting

Controlling

PlanningExecuting

Controlling

ClosingInitiating

PlanGo/No-Go

Initiating

ClosingPlanning

Executing

Controlling

Planning

Executing

Controlling

Planning

Executing

Controlling

Planning

Executing

Controlling

Planning Executing

Controlling

Planning Executing

Controlling Closing

Maintain


17


Portfolio Management

• Wider context for project ownership– Simply a matter of all project results

some-how add-up to a whole

– Simple matter of resource rationing*

Jan Feb Mar Apr May…

6 8 10 12 10

0 1 1 1 3

Res-1 AvailableDemand



…

30 20 40 40 4020 20 20 20 2010 10 10 10 10

2 3 3 3 4

88 86 84 78 78Time

ResourceUnits

Corporate objectives

Maximise Core

business

Expand Core to

new lines

Build the Brand

Grow staff & Culture

Increase efficiency

Improve Sales

Process

Develop Products

Executive Info

Attain Service Levels

Automate process

‘First Oil@Date

RAG Status

Project Manager

SponsorProject Name/DescID

20 Dec

1 Dec

Christmas party

Business Intelligence

Project 1

Project 1&2

12&3

*Neither are simple in political terms, both are simple in capability terms onceproject planning & tracking is working properly


18


How to Assess Estimates

• All estimates are predictions of the future: uncertain– Insist on accuracy accept that takes &

– Always ask to see the audit trail leading to cost and schedule• Every estimate must be 3-point: Best, Worst, Most likely

– Best: quickest or cheapest or most return & prevailing circumstances*– Worst: most expensive or slowest or least return & circumstances*– Most likely: the “most frequently occurring outcome”**

• Calculate and choose confidence levels 50/50, 80/20 & 95/5– If the worst-case costs worst case benefits the project is low risk

– Everything else is increasingly risky:YOUR risk (& equally your reward too!)

<

precision €

*Inconcievable that this value will not be the outlying marker** The most common outcome if we were to do the task many times

exeutive's tri-fold quick reference card of project planning and control- free

Documents