third wave presentation a thomsett company

third wave presentation

a thomsett company

eXtreme project management

a thomsett company third wave presentation 2002

The world of business and government is changing faster than ever. Globalization, the internet, new technologies, new organization structures, outsourcing and the rise of the free agent economy

reflects the increasing demands from clients, customers, stakeholders, shareholders and government regulation.

Rather than “fiddling” with traditional project management techniques such as new versions of scheduling tools and critical chain concepts, it’s time that IT and the broader business areas

adopted a radical or eXtreme approach to managing the new world of projects.

A starting proposition


Project ManagementA new paradigm

Second Wave

Technical emphasis

Senior management un-involved

Business professionals as liasion mechanism

Single methodology

Development focus

Macro-planning

Traditional team/W.O.L.

Notional cost

Stand-alone systems

Expert-driven

Technical-focus

Third Wave

Business / ROI emphasis

Senior management commitment

Business professionals as project managers

Multiple methodologies

Life-cycle focus

Micro / real-time planning/events

Virtual teams

Cost recovery / return

Integrated/interfaced systems

Constraint-driven

Service-focus

Engineered Model Dynamic Model


Third Wave

Business / ROI emphasis

Senior management commitment

Business professionals as project managers

Multiple methodologies

Life-cycle focus

Micro / real-time planning/events

Virtual teams

Cost recovery / return

Integrated/interfaced systems

Constraint-driven

Service-focus

Project ManagementA new paradigm

Second Wave

Technical emphasis

Senior management un-involved

Business professionals as liasion mechanism

Single methodology

Development focus

Macro-planning

Traditional team/W.O.L.

Notional cost

Stand-alone systems

Expert-driven

Technical-focus

Engineered Model Dynamic Model


Project ManagementA glimpse at the future

eXtreme Wave

Added Value obsession

Senior management as Executive Project Managers

Business and IT integrated fully

Organic/lite/agile methodologies

Life-cycle management

Real-time planning

Virtual organisations

Zero cost development

Multi-layer systems

Constraint-focused

Market-focus

Agile Model


Trust

Openness

Honesty

Courage

Money

Project Management: eXtreme project management values

What senior managers see

Analysis

Design

Build & Test

Ship

What the team sees

? AARGH ????!!!###

ValuesValues BehaviorsBehaviors


Two sets of informationPolicy development project

Both these information sets are inter-related and require different skills and techniques

MANAGERIAL TECHNICAL

80-90%10 - 20%

Stakeholders

Related Projects

Risks

Returns

Costs

Schedules

Priorities

Estimates

Resources

Assumptions

Policy Specifications

Procedure Manual Design

Work Redesign Models

Education Modules

Test Plans

Communication Strategy

Implementation Guides

Legal Advice

Scope

Objectives

Strategy

Quality


StakeholdersRelated projects

RiskBenefits

CostsSchedulesEstimates

Policy

Data/Function/Object Requirements

DesignMenu Hierarchy

File DesignModule Specs

Test PlansDocumentation

ScopeObjectivesStrategyQuality

ProjectProjectManagementManagement

TechnicalTechnicalManagementManagement

Business CaseBusiness Case Technical SpecificationsTechnical Specifications

Content

Context

Two sets of informationeXtreme focus


Content

Context

Traditional project management focus

eXtreme project management focus

Projects fail in the context not the content

Two sets of informationeXtreme focus


Planning is worknot an overheadPlanning is worknot an overhead

PROJECT PLANNING SHOULD NEVER BE DONE BY ONE PERSON.AT BEST, USE YOUR TEAM, SUPPORT GROUPS AND KEY STAKEHOLDERS TO ASSIST YOU IN A

TEAM PLANNING SESSION

RApid Planning [RAP] sessions are intensive and participative planning sessions involving the project manager, the team and key stakeholders. They occur every time a

project requires planning or re-planning. RAP-ing reflects the agile and extreme paradigms.

RApid Planning ProcessThe key eXtreme model


Project Success: eXtreme view

Project management involves a series of structured negotiations to establish and define success i.e. to determine which sliders are at what level for each project.

ONOFF

Success in a project is when you ....

have satisfied stakeholders

meet the project's objectives/requirements

meet an agreed budget - resources, capital, equipment

deliver the product on time

add value for the organization

meet quality requirements

have a sense of professional satisfaction for the team


have satisfied stakeholders

meet the project's objectives/requirements

meet an agreed budget - resources, capital, equipment

deliver the product on time

add value for the organisation

meet quality requirements

have a sense of professional satisfaction for the team

Project Success

ONOFF

ONOFF

ONOFF

ONOFF

ONOFF

ONOFF

ONOFF

eXtreme tool

ONOFF


Benefits

Costs

Development Support

Benefits Realisation ReviewPost Implementation Review

Measurement of success - eXtreme

Get rewards/punishment & go away ?

Costs

Development

Post Implementation Review

Measurement of success - 2 nd wave

FeasibilityAnalysis

DesignBuild Test Ship

Project Success

FeasibilityAnalysis

DesignTest Ship

eXtreme tool


Scenario/Real Time Planning

Traditional or macro planning

Real-time or micro planning by scenarios/events

Agreed events [deliverables,versions, prototypes, etc.]

Planning window depends on risk,strategy, deliverables and project size.

eXtreme tool

Scenario 1

Scenario 2

Scenario 3


Stakeholders

Stakeholders have multiple roles in projects - many have multiple roles in multiple projects.

They are the second biggest cause of project failure [see www.thomsett.com.au – Project Pathology]. One stakeholder - the Project Sponsor - is the biggest cause of project failure.

Managing the multiple relationships with stakeholders is a critical focus ineXtreme project management - it is also a highly political issue.

Sponsor X changes the schedule of Project X. This impacts Stakeholder X who is also a stakeholder of Project Y. This impacts Project Y, Sponsor Y and stakeholder Y. In other words, Sponsor X has

impacted Sponsor Y.

Imagine this ripple effect with 40 stakeholders!

Project X

Sponsor X

Stakeholder X Project Y

Sponsor Y

Stakeholder Y


The Ideal Sponsor

The ideal sponsor has the bag of money and the baseball bat.

eX

trem

e

pro

ject

m

anagem

en

t

eXtreme tools


Project Management Overall Processes

Prioritize, Approve and

Review Projects

Prioritize, Approve and

Review Projects

Project PlanningProject

Planning

ProjectTrackingProject

Tracking

Project ReportingProject

Reporting

Project Concept Project Business Case

ProjectFeasibility

Study

ProjectFeasibility

Study

Strategic PlanPolicy

Framework

Technology Architecture

Project Portfolio

New Requests


OBJECTIVESCorporate, Business, Project and System level

SCOPE The boundaries of the project or system - project manager's responsibility

STAKEHOLDERS/RELATED PROJECTS The people, groups, projects related to the project as service providers

RETURNS/BENEFITS & BENEFITS REALISATION PLANIncrease RevenueAvoid Costs Improve Service (also includes drivers such as Strategic Impact, Technology, etc.)

COSTS Development and support - life-cycle time-frame including people

QUALITY AGREEMENTThe quality expectations of the stakeholders

PROJECT DEVELOPMENT STRATEGY/SCENARIOS The overall approach to development of the project

BUSINESS/PROJECT RISK Factors that can influence project success

SKILLS AVAILABILITY/STAFFING AGREEMENT The requirement for specialist resources

RELEVANT LEGISLATION/POLICY Any Federal, State legislation or organization policy impacting on project

ASSUMPTIONS/CONSTRAINTS Constraints such as deadlines and assumptions made when planning

CHANGE MANAGEMENT Impact on jobs, job design and work practices

PROJECT EXECUTION PLAN The detailed project schedule of tasks and task inter-dependencies

The eXtreme Contract - The Business Case


Project Initiation

Feasibility Study

Analyze Requirements

Design

Build

Test

ShipProduct Support/

Benefits Realization

Project Management Business Case

The Business Case – a living and dynamic document

An eXtreme project will have almost continuous change – the Business Case is continuously monitored and updated as a moving baseline. The changes are

reviewed and approved by all critical stakeholders.


DetermineProject Scope and

Objectives

DetermineProject Scope and

Objectives

Select Project Development

Strategy

Select Project Development

Strategy

Analyse Project Risks

Analyse Project Risks

DevelopProject Task

List

DevelopProject Task

List

EstimateTasks/ProjectEstimate

Tasks/Project

AllocatePeople

AllocatePeople

Project Concept

Project Business Case

Analyze Benefits/Define


Analyze Benefits/Define


DefineQuality

Requirements

DefineQuality

Requirements

Develop ProjectSchedule

Develop ProjectSchedule

Analyze Costs &Return-on-Investment

Analyze Costs &Return-on-Investment

Define Success

Project Management Rapid Planning Process (RAP)

RAP sessions are completely open and participative. The Sponsor and

critical stakeholders

attend and build the Business Case with the Project

Manager facilitation using eXtreme tools.

eXtreme tool

Project Planning


I want a new bank product for high net-worth clients

Clear, physical scope Abstract scope

Scope and ObjectivesWrong model/wrong industry


The scope and objectives of a project are inter-related. The scope defines the boundary of the project manager's responsibility and the objectives are what the project manager has to achieve within that boundary.

Scope/ObjectivesWhere your responsibilities lie

the only difference is that some objectives are inside scope

PROJECT :

IS NOT [Could be]IS

NOT RESOLVED

Objectives

A variation on the Kepner-Tregoe model and Differential Diagnosis

eXtreme tool


An objective must An output is the An outcome is thestate "what" is direct change in the indirect change in thegoing to change in status-quo as a result status-quo as a resultthe status-quo. of the objective of the output being "delivering". used to achieve a "secondary" change

To analyse the objective/output/outcome chain simply apply the Polaroidtest. Take a "photo" of the situation before the project starts and a "photo"immediately after delivery - what has changed ? The change is the Output

ObjectiveObjective OutputOutput OutcomeOutcome

ObjectiveObjective Output[Team]

Output[Team]

Outcome[Stakeholder]

Outcome[Stakeholder]

Primary Benefit

Increase Revenue

Avoid Costs

Improve Service

Secondary Benefit

Increase Revenue

Avoid Costs

eXtreme tool

The O3 ModelAnalyzing benefits and realization plan

From Gaebler & Osborne, Gane & Sarson


It is an essential and professional process to formally analyze, negotiate and agree with each Critical stakeholder as to:

Stakeholder or Partnership Agreement

the service involved;to dates or timing of the services;the cost to the stakeholder in providing the service; andwho else can provide the service.

Service Timing Cost Contingency Person Responsible

Review ofrequirements

Develop newprocedures

1 hr /week

2 hrs /mth

$75 /hr

$75 /hr

SeniorCustomerService Clerk

TechnicalWriter

SystemAnalyst

BusinessAnalyst

Stakeholder : Customer Service Manager

Project Title : Date :

STAKEHOLDER SERVICE AGREEMENTS

I have been involved in the planning of Project ……………………………. and have reviewedthe project plans and Business Case. I agree to provide the above services.

…………………………………………………………………… ………/………../……..

eXtreme tool


QualityWho’s eyes - which beholder?

Project Quality

StakeholderGroup 2

StakeholderGroup 1

ProjectManagerProject

Sponsor

ComputerOperations

SupportTeams

TeamMembers

InternalAudit


CONFORMITYMust the product have all the data, functions and procedures as required?

USABILITYMust the product be easy to understand, learn and use from the user's perspective?

MAINTAINABI LITYMust the system be easy to maintain and /or correct?

EFFICIENCYMust the application use the hardware, system software and other resources efficiently?

REUSABILITYMust the system use code and date that Is capable of being used by other systems?

FLEXIBILITYMust the system be easy to enhance in order to add or modify functionality andfeatures?

RELIABILITYMust the system function without failureand with consistency?

PORTABILITYMust the system be easy to migrate to another hardware or software environment?

AUDITABILITY/SECURITYMust the system be secure from unauthorised access and be auditable?

JOB IMPACTMust the system provide an acceptable working environment for direct users?

ATTRIBUTESSTAKEHOLDER*

Software Quality AgreementeXtreme tool

From McCall, Mutsamato, IEEE, ISO 9126


Risk Classes

There are two related but different classes of risk ina project environment :

Project RiskThe inherent risks involved directly in undertaking

the project

Business RiskThe exposure to or impact on the organisation as a

result of project failure

While both Risk classes involve considering verydifferent factors, they are related in a very important

way.

The higher the Project Risk, the higher theprobability of failure and the higher the potentialexposure of the organisation to the Business Risk.


Risk Impact & Integration

Project Risk should be totally integrated and systemic. The risk of a project impacts your project in the following manner:

1. The higher the risk the higher the probability of failure2. The higher the risk the more inaccurate estimates will be3. The higher the risk, the higher the ROI should be4. The higher the risk, the more expert the team should be5. The higher the risk the higher/more regular the focus from Sponsor6. The higher the risk, the higher the rate of change.

Business Risk should also be considered during the RAP session.Business Risk includes the following issues:

1. Loss of project investment2. Loss of project benefits3. Loss of market image4. Loss of morale5. Potential for litigation, etc.

The effective and pro-active management of project risk requires a complete commitment from senior management.


Some last thoughts

Most projects that fail, fail before they started

Your stakeholders are your best allies or your worst enemies – you decide

Spend more time on the outside rather than the inside

Look out more than looking down

If your project hasn’t changed – be afraid, very afraid

Ask for help, advice and assistance – early and often

Focus on benefits – not costs

DON’T OWN THE PROJECT – OWN THE PROCESS

Rob Thomsett – Radical Project Management, Prentice-Hall, 2002

www.thomsett.com.au

third wave presentation a thomsett company

Business

organization

frame including

micro real

skills availabilitystaffing

project execution

detailed project

senior management

influence