Presentation benefitsprojectmanagement09072014

Benefits ofProject Management

Lauro Canonica

9th July 2014

Table of Contents

1. Why do projects fail?

2. Project managers versus project administrators

3. A real case example

4. Why is project management underestimated?

5. How can we convince people?

6. Conclusions

7. Questions and answers

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Table of Contents

1. Why do projects fail?

2. Project managers versus project administrators

3. A real case example

4. Why is project management underestimated?

5. How can we convince people?

6. Conclusions

7. Questions and answers

7/9/2014 Benefits of Project Management 3

Project Success Rates(Standish Chaos Report 2009)

Challenged: Delivered late

or/and overbudget44%

Failed: Canceled prior to

completion24%

Successful:Delivered on time

and on budget32%

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Why do projects fail?Lack of User Input 12.8%

Incomplete Requirements & Specifications 12.3%

Changing Requirements & Specifications 11.8%

Lack of Executive Support 7.5%

Lack of Resources 6.4%

Unrealistic Expectations 5.9%

Unclear Objectives 5.3%

Unrealistic Time Frames 4.3%

New Technology 3.7%

Technology Incompetence 7.0%

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Project Management Issuesversus Technical Issues

Project management issues 89.3%

Technical issues 10.7%

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Table of Contents

1. Why do projects fail?

2. Project managers versus project administrators

3. A real case example

4. Why is project management underestimated?

5. How can we convince people?

6. Conclusions

7. Questions and answers

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Project Manager’s View(PMBOK standard)

Project Management

Processes

Initiation

Planning

Execution

Monitoring and

Controlling

Closing

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Project Administrator’s View

Project Management

Processes

Initiation

Planning

Execution

Monitoring and

Controlling

Closing

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Which tasks are not done by a projectadministrator?

• Initiation: Analysis of the situation, goal definition, stakeholder management, requirements gathering.

• Planning:Scope definition, team building, resources selection, preparation of Work Breakdown Structure (WBS).

• Executing:Direct execution, manage team, perform quality assurance.

• Control: measureproject variables, identify corrective actions, manage change requests, manage customer expectations.

• Closing:Finalize all activities, share the lessons learned.

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Table of Contents

1. Why do projects fail?

2. Project managers versus project administrators

3. A real case example

4. Why is project management underestimated?

5. How can we convince people?

6. Conclusions

7. Questions and answers

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A real case, the setup

• Creation of a new web site with a content management system (CMS)

• Plan: 300’000 CHF, 3 months

• Team:- Customer representative- Team leader- 4 developers- No project manager (to save on costs)

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A real case, the result

• Partial success: - product delivered- over budget: 500’000 CHF (+200’000 CHF)- late: 5 months (+2 months)- customer and developers frustrated

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A real case, what happened (1)

• Missing analysis of the situation- Technology discontinued

• Incomplete goal definition- new goals were added during development

• Missing stakeholder management- Unexpected team changes- Missing information

• Missing proper requirements gathering- Only high level documentation- Requirements per email- loss of information

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A real case, what happened (2)

• Missing scope definition- Continuous changes- Developer and customer frustrated- Loss in trust

• Missing change management- Disagreements (bug, change or planned?)

• Missing management of customer expectations- The system is too slow

• Missing “lessons learned”- documentation- sharing of experiences

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Table of Contents

1. Why do projects fail?

2. Project managers versus project administrators

3. A real case example

4. Why is project management underestimated?

5. How can we convince people?

6. Conclusions

7. Questions and answers

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Top reasons why Project Management is underestimated

• The project is too small and easy!Don't check only technical complexity. The project situation and the environment can be very complex.

• A project manager is too expensive!A failed project is more expensive.

• Our team leader is a software guru who can take care of the project!Project management requires many soft skills.

• A project manager wastes everybody's time with meetings and documentation!A qualified and experienced project manager reduces the amount of meetings and useless documentation.

• We want to start immediately, we have no time for management!Did you ever hear the joke: Sorry I'm too busy to be efficient?

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Table of Contents

1. Why do projects fail?

2. Project managers versus project administrators

3. A real case example

4. Why is project management underestimated?

5. How can we convince people?

6. Conclusions

7. Questions and answers

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How do we promote Project Management?

• Present the results of the Standish Chaos Report.

• Request that all projects are managed bycertified project managers.

• Show a quick comparison of project costs asshown in the next slide.

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Project cost example

• Plan A: 1 Project manager at 50%, 4 developers 100% for 5 months (1000 CHF per day)

Cost: 100 days*(500 + 4*1000)CHF = 450’000 CHF

• Plan B:4 developers 100% for 5 months. (Risk of 2 months delay)

Cost: 100 days*(4*1000)CHF = 400’000 (no delay)Cost: 140 days*(4*1000)CHF = 560’000 (2 months delay)

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Table of Contents

1. Why do projects fail?

2. Project managers versus project administrators

3. A real case example

4. Why is project management underestimated?

5. How can we convince people?

6. Conclusions

7. Questions and answers

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Conclusions

Advantages of Project Management:

• Reduces costs and risks.

• Makes sure that what is developed is what the customer needs.

• Increases the happiness of customers, developers and users.

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Table of Contents

1. Why do projects fail?

2. Project managers versus project administrators

3. A real case example

4. Why is project management underestimated?

5. How can we convince people?

6. Conclusions

7. Questions and answers

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Questions and Answers

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