Project Management Outsourcing

04/10/2023

Project Management Outsourcing

Jan Juricek

04/10/20232 project management outsourcing

keep your hands free for strategy!


reasons for project management (examples)

internal projects

• new organisational structure

• product innovation• innovation of information

systems• implementation of

standards• new branch / office• expansion into new

markets• acquisition of other

companies• purchase and

implementation of new technologies

external projects (customers)

• delivery of product-specific services

• product customisation• market launch


reasons for project management – management levels

plan• suggestion• concept• strategy• idea• intention

build• plan• specification of

results• identification of

resources• determination of

costs• risk analysis• definition of

criteria

execute• management

performance• tasks• control• enforcement• negotiation• change

management• escalation

three development levels of project activities


management levels – value

PLAN BUILD EXECUTE

ou

tput

valu

e

time consumption

output value

management period and stage

tim

e

consu

mpti

on


insufficient project management capabilities (is there anybody who can manage the project?)

can we afford the costs of employing competent project managers on a long-term employment basis?

if we employ expensive managers under the Labour Code, will we be guaranteed the quality and

result?

if we have to deal with project escalations (given by the unguaranteed quality of deliverables), can we

still focus on strategic issues?

expensive internal employees need to be cared for (supervision, couching, control, retention) – do we

want to deal with it?

work equipment needs to be provided – car, notebook, telephone, licence (costs and care) – do we

want to care for it?

how long will it take to train a new internal employee?

real situations in companies and organisations (options)


ISSUE – project management capabilities

INSUFFICIENT CAPABILITES

INSUFFICIENT CAPABILITES

• most organisations have no project manager positions at

all

• there is a lack of experience in managing key projects by

project types and market segments

• key workers are overworked

• positions of line workers and project leaders are often

merged


ISSUE - costsinternal project managers = costs

internal project managers = costs

• searching for the right employees and the subsequent contractual

arrangements are associated with costs

• employees need to be constantly motivated / stimulated and key

workers retained at high costs

• outplacement (in case of project completion) is quite costly, too

• other work-related costs (car, notebook, telephone, licence,

insurance) are not only expressed in money terms, but also need to

be cared for

• quality management and assurance is associated with costs as well


ISSUE - costs

internal project managers = employment risks

internal project managers = employment risks

• some employees may become ineffective / incompetent over

time

• more and more employment restrictions and legislative

requirements are being imposed

• investment in training is a must

• employees give no long-term employment GUARANTEES by

themselves (e.g. know-how sustainability)


ISSUE - costs

HR processes = costs

HR processes = costs

• employees need to be both motivated and controlled

• great investments of time and money into education and

personal development that may not be internally enjoyed

at all need to be made

• high-quality employees are always looking for something

better


professionals buy from professionals

Service – PM Outsourcing


“PM OUTSOURCING” service cornerstones

Resource CAPACITY provided

Availibility and

substitutability

Quality Review a

GUARANTEE

Prepared templates and documentation

PM tools (reports, DMS,…)

Account management of CLIENT


“PM OUTSOURCING” end price

methodology supervision

quality and SLA assurance

competence

necessary time of competent project manager

guarantee

guarantee


“PM OUTSOURCING” service outline

1. identify the situation and define the required PM service scope and

quality (written report)

2. provide an available competent manager

3. guarantee the quality as agreed

4. ensure permanent service availability and sustainability

(throughout the project)

5. provide project documentation and record the activities and quality

delivered


PM OUTSOURCING service stagespro

ject

managem

ent

requir

ed

= c

onta

ct C

ON

CE

PTIC

A

iden

tifica

tion o

f th

e

situ

ati

on

and

wri

tten

definit

ion o

f th

e P

M

OU

TSO

UR

CIN

G s

cope a

nd

qualit

y

professional evaluation within14 days

wri

tten r

ep

ort

:-

PM

-rela

ted e

valu

ati

on o

f th

e s

itu

ati

on

-se

rvic

e s

cope a

nd

deliv

era

ble

s -

nece

ssary

PM

co

mpete

nce

s-

nece

ssary

guara

nte

es

an

d s

erv

ice q

ualit

y (

SLA

) -

dra

ft c

on

tract

within 21 days from project submission

contr

act

dura

tion:

-ag

reed P

M c

ap

aci

ty-

qualit

y a

ssura

nce

-availa

bili

ty a

nd

guara

nte

e-

docu

men

tati

on a

nd

pro

toco

ls


internal processes vs CONCEPTICAPM

outs

ourc

ing

14 days

CONCEPTICA: PM responsibilities taken over within 21 days from the request

contr

act

pro

ject

ch

art

er

busi

ness

ca

sepro

ject

pla

n

qualit

y a

nd

SLA

ass

ura

nce

HR process of MIN 1-2 months PM establishment of MIN 1-2 months

+ work equipment+ future education+ future outplacement?

inte

rnal

em

plo

yees

time

time

identi

fica

tion o

f re

quir

em

ents

MAX 1 month


identification of the situation and written definition of the service scope and quality

1. project status (documents, stages, management

quality)

2. scope (necessary time period in months, utilization

guarantee – no extra invoicing )

3. capabilities (certificates, language skills, experience

in the field)

4. necessary service qualities (guarantee, level)

5. deliverables (frequency, documents)

within 14 days


competent manager – how we see it

• demonstrable ability to manage projects (tested by us)

• demonstrable experience with the project (in years required)

• demonstrable experience in the given industry (in years

required)

• language skills (if applicable)

• relevant interpersonal skills (motivation skills, presentation

skills, leadership)

• certificates (if applicable)


Competent manager – segment matrix

SEGMENT /

PROJECT TYPE

State administrat

ion and authorities

Finance Energy industries

TELCO Health service

Utility and logistics

IT

Development

ERP

Implementation/ roll-out

Infrastructure

Analysis

Helpdesk, CRM

Integration

We are looking for and selecting competent project managers across

segments

We strive to provide strong leadership and extraordinary interpersonal

skills


hardware – notebook, telephone

software – MS Office a MS Office Project

car (if necessary)

set of sophisticated templates and processes

communication system and project document repository

PM tools you get (included in price)


CONCEPTICA – what we guarantee

QUALITY

QUALITY

• one internal quality review every two weeks (written protocol for the customer included)

• pre-defined project management processes (templates)

• professional implementation of project management tools

• sustainable know-how =uniform and available documentation throughout the project

• project management according to PMI® or PRINCE2® or any other standards agreed



AVAILABILITY

AVAILABILITY

• adequate replacement (long-term illnesses)

• substitution (short-term unavailability)

• new project manager within 14 days (dissatisfaction with the originally appointed project manager)

• SLA and quality assurance in short-term perspective



PRICE

PRICE

• CZK 7 800 / MD (execute level)

• CZK 10 900 / MD (build level)

• CZK 14 800 / MD (plan level)

• no further QA / SLA costs (except for travel costs, if applicable)

• no further HR costs

• no equipment costs

• PRICE includes: Resource capacity, QA, Prearranged templates and

documentation, Availibility guarantee, Outsourcing of tools, Report of

new business opportinities for client


• Quality guarantee

• Availibility and

substitutability guarantee

• Price guarantee

(zastropování utilizace)

• Project management tools

• Documentation and

templates

• Certification

• Account management for

client

Srovnání služeb a cen

BODY SHOPPROJECT MANAGEMENT

OUTSOURCING CONCEPTICA

INTEGRATOR SOLUTION

• No competency

guarantee of the

manager

• No availibility

guarantee

• 6 000 – 8 000 CZK /

MD

• 14 000 – 16 000 CZK /

MD

• No utilization

guarantee – time and

material invoicing


can something heavier than air fly?

insecurity


know-how loss within the corporation

ignorance about the company issues (lack of

knowledge)

the need of training own internal managers

low-quality external management experience

presumably high price

presumed PM outsourcing risks


let the facts and our customers speak for us!

Finance

CitFin

Wood&Company financial services

Gouvernement

Ministry of Foreign Affairs

Land Fund of the Czech Republic

Region Vysočina

Manufacture

Gumotex

Tenza

Window holding

Retail

HP Tronic

Datart

Services

Asseco CE

AVG Technologies

IT

ČD Telematika


summary – what you get

saved costs

smooth project execution

lower employment risks

lower project risks

higher customer loyalty (customer projects)

higher satisfaction (internal customers)

time to keep on the top of the pyramid (at strategic

issues)


Conclusion – Contacts

Thank you!

Contacts

Tomáš Hamr, Managing Director,

[email protected]

Jan Juříček, Head of PMO, [email protected]

Jan Bayer, Key Account Manager, [email protected]

mailto:[email protected]



Project Management Outsourcing

Business

project management examples3

required pm service

service quality sla

pm outsourcing scope

project escalations

pm responsibilities

competent project managers

quality assurance