1 P ROJECT O VERSIGHT F UNDAMENTALS Derek Riphagen June 2011.

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PROJECT OVERSIGHT

FUNDAMENTALS

Derek Riphagen

June 2011

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WHAT ARE SOME OF YOUR CHALLENGES?

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WHY PROJECTS ARE SUCCESSFUL

User Involvement Executive Support

Project Sponsorship

Project Manager Project Fundamentals & Leadership

15%

34%51%

Failed

SuccessfulChallenged

“When a project fails, it’s rarely

technical.”

Jim JohnsonThe Standish Group

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Setting the Project Structure

Vetting the Plan

Monitoring and Controlling

AGENDA

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PROJECT LIFECYCLE

StrategyPlanning &

Budgets

Project Lifecycle

Production Lifecycle Retirement

Implement ClosePlan ExecuteInitiateProjectPhases:

SETTING THE PROJECT STRUCTURE

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GOVERNANCE

Project oversight is about good governance

Good governance sets the stage for a successful project

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SOME KEY DIFFERENCES …..

Project environment

It is a change of the status quo Time limited

(defined start and end dates) It has a budget Typically has dedicated skilled

resources (proven ability) Distinct phases and

deliverables Specific outcome tied to a

commitment Task focus

Line environment

Long-term support of company strategy

Employee development & growth Doing as much as can be done

within a given budget year Service-minded Directional focus Operational in nature

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FUNCTIONAL SUPPORT

• Contracts

• Training

• Human Resources

• Project Office

• Architecture Group

• Other

PROJECT STEERING COMMITTEEPROJECT SPONSOR

PROJECT MANAGER

A Typical Project Organization Structure

THIRD PARTIES

• Vendor

• Regulator

• Customer

Subject Matter Expert(s) (SME)

TECHNICAL LEADERBUSINESS LEADER

PROJECT SPONSORPROJECT SPONSOR

Project Oversight

Project Team

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Organizational Structure Comparison

STEERING COMMITTEE

TECHNICAL LEADER

BUSINESS LEADER

PROJECT SPONSOR

PROJECT MANAGER

CEO / CHAIRMAN

COMPANY ORGANIZATION

BOARD

PRESIDENT or COO

VPVP

PROJECT ORGANIZATION

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Execution Scope, Schedule & Budget

Project governance Business outcomes Business value

Effective

Working Relationship

Sponsor Project Manager

Roles and Responsibilities

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RELATIONSHIP

Remember that as a Sponsor, your Project Manager must be your best ally

Take time to build the relationship Make sure the project manager is in tune with your

needs Ensure you have the necessary confidence in your

project manager

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The Sponsor is usually the senior person from the company’s business area for whom the solution is being implemented and will most likely be the major recipient or beneficiary of the derived business benefits

SPONSOR ROLE

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SPONSOR RESPONSIBILITIES

Sets the vision Chairs the Steering Committee Selects Steering Committee members Appoints the project manager Approves project budget and plan Monitors project execution Deals with escalated issues and changes to the plan Champions the project in the organization Provides project governance

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Committed

Empowered

Business Focused

Consistent

Demanding

Visionary

Mine Sweeper

Decisive

Communicator

Credible

A Good Sponsor Is ……

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Members of the SC, assist the Sponsor with his/her duties

Stakeholders are usually present or at least adequately represented on the SC

The SC provides project governance

STEERING COMMITTEE ROLE

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STEERING COMMITTEE RESPONSIBILITIES

Members of the SC, through the Sponsor, provide high level business and technical guidance, direction and advice to the Project Manager so as to ensure the project delivers the maximum overall benefit to the company

Be part of the coalition

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Project size, reach and impact

Risk

Knowledge

Authority

STEERING COMMITTEE CONSIDERATIONS

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The PM is responsible for planning, leading, organizing, directing, monitoring and controlling the project execution along with delivering a quality result on time and within budget according to the parameters set out in the project plan and any subsequent approved changes to the scope, schedule and budget

The PM reports to the Sponsor

PROJECT MANAGER ROLE

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PROJECT MANAGER RESPONSIBILITIES

Develops the project framework

Develops the work plan

Determines resources, schedule and budget

Obtains approval for the baseline plan

Manages and controls the project execution

Provides regular progress updates

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PROJECT MANAGERRESPONSIBILITIES

Project Framework

Develop Work Plan

Resource Requirements

Develop a Schedule

Prepare Budget

Develop Project Controls

Approve & Baseline

Plan

Identify Stakeholders

Specify Activities and Tasks

Determine Personnel Resource Requirements

Assign Tasks to Resources

Establish Project Standards

Determine Objectives

Determine Best Estimate

Determine Hardware/ Software Requirements

Put on Calendar w/ Milestones

Establish Project Reporting

Define Scope Determine Order of Tasks

Determine Space, Other Requirements

Document Issue Resolution Process

Identify Constraints

Document Change Mgmt Process

Determine Approach

Define Key Deliverables

Develop Risk Management Plan

Plan a Project

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PROJECT MANAGER SKILLS

Project management competencies

Leadership

Communication

Track record

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PROJECT MANAGER SKILLS

Project management competencies

Planning Estimating Organizing Delegating

Decisive Judgment Interpersonal

Tools Track record Business savvy

Professional designation?

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PROJECT MANAGER SKILLS

Leadership skills/styles

Collaborative Demanding Fair Consistent Situational Teamwork Honest

Learning experience?

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PROJECT MANAGER SKILLS

Excellent and mature communication

Verbal Written Presentation Concise Clarity Unambiguous Accurate, honest and complete Audience sensitive

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PROJECT MANAGER SKILLS

Track record

Previous experience on similar projects Success and failures

Subject matter expertise?

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PROJECT MANAGER ATTRIBUTES

Initiative

Motivation

Perseverance

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INITIATE PHASE ESSENTIAL QUESTIONS

Establish the relative priorities

ScopeSchedule

Cost

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INITIATE PHASE ESSENTIAL QUESTIONS

Project ReviewsSet up

Progress

Lessons

Use them

Plan for them

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INITIATE PHASE ESSENTIAL QUESTIONS

Is the vision clear? Is my organization structure correct? Are the roles defined? Are the responsibilities clear for each role? Do I have the right project manager for the project? Do I have the right skills and knowledge represented on the steering committee? Are the lines of communication between roles clear and understood by everyone? Are there any conflicts of interest? Do I have confidence in the project manager? Do I trust the project manager? Have I delegated the right authority to the project manager? Does the delegated authority align with the project manager’s responsibilities? Is the budget and timeframe reasonable? Do I understand what success looks like? Is the project positioned for success? Will I fulfill my role expectations and responsibilities towards the project for the duration of the project? Should I instruct the project manager to plan for a project review?

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VETTING THE PLAN

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StrategyPlanning &

Budgets

Project Lifecycle

Production Lifecycle Retirement

Implement ClosePlan ExecuteInitiateProjectPhases:

VETTING THE PROJECT PLAN

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VETTING THE PLAN

TIPS:

Ask lots of questions

Get answers from the Project Manager that make you feel comfortable

Things to watch for…

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VETTING THE PLAN

Vision Who? Why? (Decisions, Focus, Commitment) Unambiguous?

Scope S.M.A.R.T. (Specific, Measurable, Agreed, Realistic, Time-boxed) Include, exclude, dependencies, completeness? Is Scope controllable? Will we know we are done?

Watch for “Miracles”

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VETTING THE PLAN

Objectives Explicit, Measurable, What you need?

Deliverables Measurable, Comfort

Slack time or float What is it? Why have it? How much?

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VETTING THE PLAN

Contingency What is it? How much?

Approach Alternatives considered

Decision points and Exposure How much time How much money

Estimates Who was involved Understand how estimates were arrived at Optimistic or pessimistic or reasonable Task duration

Dependencies

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VETTING THE PLAN

Resources Leveling Loading Availability

Is it a good thing that the project manager is “doing”

as well as managing?

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VETTING THE PLAN

Success

Define for both Project and Company

Why do you need to define success?

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VETTING THE PLAN

RISKS

ASSUMPTIONS CONSTRAINTS

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VETTING THE PLAN

Risk probabilities are ranked (H, M, L) Risk impacts are ranked (H, M, L) Mitigation plans must exist for all H, H

HIGH

LOWImpact

HIGH

LOW

Pro

bab

ility

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VETTING THE PLAN

Challenge the project manager and pay attention to the response you get

If uncomfortable with the response, probe further or take action until your concerns abate

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MONITORING & CONTROLLING

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StrategyPlanning &

Budgets

Project Lifecycle

Production Lifecycle Retirement

Implement ClosePlan ExecuteInitiateProjectPhases:

MONITORING & CONTROLLING

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MONITORING & CONTROLLING

Project Baseline Schedule Budget Scope

Change Management process

ScopeSchedule

Cost

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“No Surprises”

What is meant by this?

MONITORING & CONTROLLING

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It’s all about trends and variances

MONITORING & CONTROLLING

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MONITORING & CONTROLLING

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MONITORING & CONTROLLING

Temp

Engine

Oil Pressure Speed

Transmission

Windshield

Battery

Fuel

RPM

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MONITORING & CONTROLLING

Fuel

llllllllllSpeed

RPML H

Oil Pressure

D CBattery Engine

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MONITORING & CONTROLLING

Time

Cu

mu

lati

ve $

Cumulative Budget

Cumulative Cost

Project Financial Summary

Plan

Actual

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MONITORING & CONTROLLINGAS OF: 23 July 20XX

WEEK ENDINGOct

2 9 16 23 30

1 3 10 17 24

6 13 20 27

^ ^

^^

^ ^

^ ^

^ ^

^^

Analysis

Online Screens

Test & Implement

Reports

Test & Document

Project Mgmt. &Supervision

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MONITORING & CONTROLLING

Milestone Schedule

Milestone Planned Date Revised Date Actual Date

User Requirementssign-off

March 20 March 25March 27

April 4

Plan Approved bySteering Committee

April 12 April 12

Detailed DesignSign-off

May 30

…….…..

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MONITORING & CONTROLLINGMONTHLY PROGRESS REPORT

Project Name MonthProject Manager

Indicator Red (R) Yellow (Y) Green (G) Comments

ScheduleScopeBudgetTechnicalBusiness ResourcesTechnical ResourcesProject overall

Flag Definitions Red(R)

Yellow(Y)

Green(G)

Schedule Progress has slipped more than 15% from the approved plan. Interim milestones missed. Project completion date has >50% probability of being missed.

Progress within +/-15% of approved plan. Some interim milestones will be late. Final completion date will be met.

Progress within +/-10% of approved plan.

Scope Complexity is increasing. Changes will not fit within the current schedule and budget.

Some scope changes. Complexity unchanged. Can be absorbed within current schedule and budget.

Defined and stable.

Budget Spending to date has deviated more than 15% from the approved cash flow. Forecast project cost is >15% over budget.

Spending to date within +/-15% of approved cash flow. Forecast project cost exceeds +10% budget tolerance but not greater than +15% of the budget.

Spending within +/-10% of approved cash flow.Project cost within 10% budget tolerance.

Technical Issues impacting one or more of cost, schedule, complexity and quality

Issues exist.Resolution identified.Issues may impact cost and schedule.

No issues affecting cost and schedule.

Business Resources Key resources are unavailable.Key skills/knowledge is unavailable to the project.

Key resources are not meeting commitments of time or content deliverables.Some skills and knowledge is unavailable to the project.

Project has resource levels, skills and knowledge to meet the project plan.

Technical Resources Skills are unavailable.Inadequate resources to meet the plan.

Skills unavailable. Resolution in progress.Inadequate resources. Resolution identified.

Project has resource levels, skills and knowledge to meet the project plan.

Project overall One or more Red FlagsThree or more Yellow flags.

Three or more Yellow flags that are likely the forerunners of other soon-to-surface project issues

All Green flagsOne Yellow flag

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MONITORING & CONTROLLING

Issues and ChangesLog

Sponsor & Steering Committee responsibilities Review escalated issues Resolve escalated issues Timely action

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MONITORING & CONTROLLING

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MONITORING & CONTROLLING

Report frequency considerations

SizeProfileRiskPhasePerformance

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MONITORING & CONTROLLING ESSENTIAL QUESTIONS

It’s all about trends Budget Schedule Forecast to completion Assumptions and Risks Issues (number, open and/or resolved) Scope changes (number, timing) Water cooler talk

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IMPLEMENTATION

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StrategyPlanning &

Budgets

Project Lifecycle

Production Lifecycle Retirement

Implement ClosePlan ExecuteInitiateProjectPhases:

IMPLEMENTATION

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IMPLEMENTATION

If you and the project manager have been fulfilling your responsibilities

Your staff are on side and supportive Your staff are trained The project team starts dissolving and moves into a transitional

support role The line organization takes operational ownership

...and it should be relatively seamless

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CLOSING THOUGHTS

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CLOSING THOUGHTS

Planning is a means to an end not an end unto itself Effort doesn’t disappear – it merely moves earlier or later in the

project lifecycle Done or not done

Take time to do it right the first time, avoiding taking more time later to control damage and increase the

risk to the business results.

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CLOSING THOUGHTS

If not evident (written down), assume it doesn’t exist

Use judgment balanced with your comfort tolerance

Be consistent in expectations

Project manager reacting rather than anticipating

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CLOSING THOUGHTS

What will you be doing differently?

Ask more questions

Expect more definitive answers

Fulfill your role obligations

Make sure the PM gives you what you need when you need it

Understand what you’re given

Communicating

…..

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CLOSING THOUGHTS

It’s all about – fundamentals Project Management Skills Clarifying Roles & Responsibilities Setting and managing expectations Good governance

It’s all about – leadership Effective relationships Focusing effort wisely Dealing with issues Standing up for your principles Communication

Finally – nothing covered today should be viewed as optional for disciplined execution and consistent, predictable, successful outcomes to projects.

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Project management

Business process innovation

Business systems analysis

Organizational change management

www.ethier.ca

driphagen@ethier.ca

(403) 234 8960

Business improvement through

people and technology

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SCENARIO 1

Situation You are the Sponsor-in-waiting for a new $10 million system that will greatly

enhance the capabilities and throughput of your business area in particular, but will also likely cause process and information flow changes in two other business areas of the company. The anticipated solution is likely going to be a purchased commercial application that will have to undergo significant customization, as the package is not written for the Canadian market. The vendor is located in the US and has no Calgary presence. You are getting considerable pressure to provide a learning opportunity for a Project Manager whose previous experience in dealing with vendors is limited, as is his/her experience in managing a project of this size and complexity.

Group assignment Discuss the options you, as Sponsor, would consider that would ensure the

project is launched on the right footing.

Suggested framework for the group List your concerns. List options that you would consider. Prepare recommendation (point form) as to your next steps.

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SCENARIO 2

Situation You are the Sponsor of a project that was known to be risky due to the leading edge

technical know-how that was needed. The monthly project progress report has just landed on your desk. There are 5 new issues being reported this period. All are significant and are technical in nature. There are still 3 open issues out of the 4 reported from the previous period. This is month 5 of the project. The project was slow ramping up. Your Project Manager is very strong technically. Two key milestones have been missed this period and 2 "control" milestones have been completed ahead of plan. Your feeling is that the project is about a month behind schedule at this stage. (This is a 12-month project.) Financial information provided in the form of cumulative expenditures to-date show under-spending of 10% to 25% in all the prior periods, but in this period spending is consistent with the planned expenditure for the period. Your Project Manager is assuring you "that the team will catch up and meet the plan" and that you are worrying unnecessarily.

Group assignment Is there a problem? Will the project meet the project end date? Be prepared to present your findings and conclusion in point form.

Suggested framework for the group Discuss what actions you would take. Discuss the information you need to clarify your concerns. Discuss any changes to the project that may be required.

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SCENARIO 3

Situation Your Project Manager has identified a scope change that would significantly

enhance the usability of the application under development. If adopted, overall project costs will increase 50% and the end date will slip an estimated 4.5 months. This is an 11-month project. This will result in the implementation falling during the most inopportune time for your users - budget preparation time. Retro-fitting the suggested change after implementation will likely double the costs of the enhancements and will require significant retraining of the users.

Group assignment Would you approve or reject the proposal to include the scope change

within the project?