1. Essentials of Project Management

2. Why PM Skills are Important
Individual Contribution
Roll-out HRIS software
Outsourcing HR activities
Developing new employee programs
Conducting legal compliance audit
Starting an HR department
Strategic Contribution
M&A
Downsizing or restructuring
Realign performance appraisals to match strategic goals
Developing crisis mgmt plan
Facilitating culture change

3. “Plan your work and then work your plan.”
Where to Start
“Plan your work and then work your plan.”
Norman Vincent Peale
author, The Power of Positive Thinking

4. Pre-Project Planning Defining the Project Scope Your Project Plan
Adding Costs to the Equation
Risks
Roles & Responsibilities
I have a form that you can download and use – please either shoot me through an or fill out and leave me one of these forms.
HAND-OUT HARDCOPY OF PROJECT SCOPE DOCUMENT. REVIEW ALONG – USE WHAT WORKS, DISCARD WHAT DOESN’T WORK.

5. Why is formalizing what is IN and what is OUT so important?
Project Scope
Why is formalizing what is IN and what is OUT so important?

6. What’s IN and What’s OUT
Defining Project Scope
Draws a “line in the sand” of exactly what will be included and what will not
Helps to establish very clear expectations for your customer(s)
Good reference in the event there are questions as the project progresses
Acts as your foundation as new tasks are added (and the timeline adjusts)

7. Goal Breakdown Structure
Project
Goal
Objectives
(Critical Success Factors)
Deliverables
(Critical Success Measures)
Requirements
(definitions on form, fit, feature, function)
Senior Management
Functional Managers
Subject Matter Experts
From Improving your Project Management Skills by Larry Richman, AMACOM, 2006.

8. SMART Project Objectives
pecific
Is the objective clear about what, where, when, and how? M
easurable
Is there a reliable system in place to evaluate? Does it have a clear measurement of success? A
ccurate & Agreed to
Is it stated accurately to ensure you can measure the results correctly?
Have you gained consensus and agreement from key stakeholders? R
elevant
Does this objective map to a company result? Can the project team make an impact on the situation? T
ime- Bound
Is there a finish and/or a start date clearly stated or defined?
What questions should you ask to help you define the problem you’re looking to fix?

9. Refining the Objectives
Project Deliverables:
Measurable results, outcomes or specific products or services that must be provided in order to consider the project complete
Deliverables, like goals, should be specific and measurable
The more specific the deliverables, the easier it will be to plan and estimate project activities
Each of these deliverables requires some type of action and most large, complex projects have phased deliverables

10. Refining the Deliverables
Project Requirements:
Different from goals and deliverables – they help define how we know the goal or deliverable is completed successfully
Requirements are a further breakdown of the deliverables; they describe the characteristics of the deliverable in very specific detail
Example: our deliverable is a BEER, but the requirements are that it be AMBER, IN A BOTTLE, etc.

11. Breaking Down the Goal-Example
Goal Breakdown Structure (GBS) Levels
Project
Goal
Double market share of Product XYZ by end of 2013.
Objectives
1. Market Size
(Critical Success Factors
Deliverables
1.1 From $25k/yr to $40K/yr
(Critical Success Measures)
Requirements
1.1.1 Maintain 20% profit margin

12. Breaking Down the Goal-Example
Goal Breakdown Structure (GBS) Levels
Project
Goal
Double market share of Product XYZ by end of 2013.
Objectives
1. Market Size
(Critical Success Factors
2. Market Share
3. Product quality
4. Rework
5. Satisfaction rates
Deliverables
1.1 From $25k/yr to $40K/yr
(Critical Success Measures)
Requirements
1.1.1 Maintain 20% profit margin

13. Breaking Down the Goal-Example
Goal Breakdown Structure (GBS) Levels
Project
Goal
Double market share of Product XYZ by end of 2013.
Objectives
1. Market Size
(Critical Success Factors
2. Market Share
3. Product quality
4. Rework
5. Satisfaction rates
Deliverables
1.1 From $25k/yr to $40K/yr
(Critical Success Measures)
1.2 Capture 7.5% of new market
1.3 Achieve ISO quality certification
1.4 Decrease rework by 20%
1.5 Achieve customer satisfaction rating of "best-in" by Consumer Reports standards
Requirements
1.1.1 Maintain 20% profit margin

14. What’s IN and What’s OUT
Why is formalizing what is IN and what is OUT so important? Why is gaining agreement from your boss on what is IN and what is OUT critical?

15. What’s IN and What’s OUT
GOAL: Reduce Inventory Costs
WITHIN Project Scope
NOT WITHIN Project Scope
Comments
Determine the cost savings of reducing the total number of parts by 25%.
Reducing total number of parts will reduce our storage and tracking costs and reduce complexity. We should know by how much.
Benchmark current inventory costs against key competitors.
That would take too much time. Besides, we don't have to know what our competitors are doing in order to achieve significant reductions.
Develop a plan to design parts complexity our of future products.
Great idea, but it should be a separate project run by product development people.
Develop a plan for just-in-time parts delivery.
This will save us on floor space and inventory-carrying costs. We should have done this years ago.
From The Essential of Project Management by Harvard Business Press, 2006.

16. Finalizing the Project Scope
Written sign-off of
Project Scope is
CRITICAL before you begin!!!

17. Finalizing the Project Scope
Before sign-off, ensure you’ve answered the following:
Can we afford the project?
If the project succeeds, will it be worth the cost?
Do we have the skills needed to succeed?
Will the project finish in time to make a difference for our business?

18. Finalizing the Project Scope
Sign-off of Project Scope:
Key Stakeholders
Key Management Team Members
Project Sponsor
Who could come back after the fact and “balk” at the scope of the project?

19. Pre-Project Planning Defining the Project Scope Your Project Plan
Adding Costs to the Equation
Risks
Roles & Responsibilities

20. Where do you start when trying to define your Project Plan?

21. Where to Start?
START with the END!

22. Where to Start?
Start with the end in mind to help you define where you need to go and what you need to
do to get there.
As-is state
To-be state
What major drivers exist that you should review?
What tasks define how you’ll evaluate each major driver?

23. When Beginning With the End…
Think of the End Deliverable from your boss’s perspective:
How would your boss define success? OR
How will he or she indicate that the project has been completed satisfactorily?

24. Begin with the End Anheuser Busch Project:
$3.0 billion in revenue across Canada
Upwards of $300MM residing in A/R
In 2010, 30%+ of A/R were overdue
~2% of avg monthly receivables balance is written off as bad debt resulting in ~$2-3MM EBIDTA impact each year
WHAT IS THE END DELIVERABLE?
SUGGESTIONS ON HOW TO GET TO THE END DELIVERABLE?
END GOAL: reduce amount of A/R outstanding
Strategy to get there:
Determine which region(s) in Canada have the greatest overages.
Determine if it’s a “type” of customer that has the greatest overages.
Are these new or existing customers who are overdue? If new, how are they vetting credit worthiness of these customers?
Are there particular sales people who are more effective? What are they doing that other sales personnel are not?
How are decisions made to continue with a customer who is consistently behind in payment? More robust procedures or centralized decision around that?
What is the follow-up procedure for contacting these customers and discussing their poor payment history? Is that done? How effective is it?
From Bonnie: … delivering x% of reduction, updated action plan, next steps on how to scale up to other areas of need 24

25. Defining Your Project Plan
Any questions on beginning with the end?

26. Defining Your Project Plan
Project Managers use a tool called a Work Breakdown Structure (WBS) to illustrate what tasks need to be accomplished.

27. WBS Best Practices
Start with major deliverables/milestones then work your way “down” (i.e., more detailed) based on each major task or deliverable.
Involve the people who will have to do the work. You DON’T need to do it alone!
Be sure to include any assumptions regarding the project.
Consider presenting time factors as a range vs. a fixed # of days.
Include a contingency BUT spell it out (don’t hide it within your estimate).

28. Defining Your Project Plan
A Work Breakdown Structure (WBS) is simply an outline of what needs to be done to accomplish your project.
Simple WBS:
Goal: Make land useable for construction
Conduct site survey
Obtain permits
Clear site
Excavate site
Regrade and groom site

29. WBS Example HRIS Work Breakdown Structure Major Task Level 1 Subtask
Level 2 Subtasks
1 - Conduct needs assessment
1.1 Assess proposed system's interact with current systems
1.1.1 Survey other HR depts. for their best practices
1.1.2 Interview HR staffers to define process flows and functionality
2 - Create system specifications
2.1 Specify database functionality
Write separate specs for each module (benefits, recruitment, etc.)
2.2.2 Specify data-entry and retrieval processes
3 - Design system
3.1 Design report formats
3.1.1 Design ad hoc report formats
3.1.2 Design standard report formats
4 - Develop system
4.1 Ensure system's security
Engage technical security specialist
4.1.2 Create security plan
5 - Install system
5.1 Develop user training program
5.1.1 Develop online tutorial
5.1.2 Create in person training
6 - Evaluate system
6.1 Assess effectiveness of modules
6.1.1 Assess recruiting module
6.1.2 Assess applicant tracking modules

30. Defining Your Project Plan
Once you identify the tasks that need to be accomplished, you then need to add the time it takes to accomplish each task. .

31. Defining Your Project Plan
Gantt charts are a graphical representation of the duration of tasks
Gantt charts illustrate how long a project should take
Gantt charts also lay out the order in which tasks need to be carried out and any dependencies

32. Estimating Time via WBS
HRIS Work Breakdown Structure
Level 2 subtask duration (days)
Major Task
Level 1 Subtask
Level 2 Subtasks
1 - Conduct needs assessment
1.1 Assess proposed system's interact with current systems
Survey other HR depts for their best practices 2
Interview HR staffers to define process flows and functionality
2 - Create system specifications
2.1 Specify database functionality
Write separate specs for each module (benefits, recruitment, etc.) 4
Specify data-entry and retrieval processes 3
3 - Design system
3.1 Design report formats
Design ad hoc report formats
Design standard report formats
4 - Develop system
4.1 Ensure system's security
Engage technical security specialist 5
Create security plan
5 - Install system
5.1 Develop user training program
Develop online tutorial 10
Create hands-on training
6 - Evaluate system
6.1 Assess effectiveness of modules
Assess recruiting module
Assess applicant tracking modules
TOTAL DURATION (DAYS): 46

33. Where to Start? @Home Exercise:
Using the End Goal worksheet, detail the major milestones and sub-tasks for your upcoming project.
How long will it take you to accomplish each individual task? What is the total length of your project?

34. Defining Your Project Plan
Has anyone done a Gantt chart before?

35. Sample Gantt Chart

36. Pre-Project Planning Defining the Project Scope Your Project Plan
Adding Costs to the Equation
Risks
Roles & Responsibilities

37. Estimating Costs Conventional Project Management Wisdom says:
You may want it good, fast and cheap BUT you only get TWO!!

38. Estimating Costs Time, Cost & Performance Trade-offs:
If technical requirements are fixed, compressing the schedule will probably increase project costs.
The more the schedule is compressed, the greater the rate of increase in cost per unit of time.
From Improving your Project Management Skills by Larry Richman, AMACOM, 2006.

39. Estimating Costs Time, Cost & Performance Trade-offs:
Adding requirements to the scope will either increase cost or time (or both!).
If the budget is fixed, negotiation is necessary on the other two parameters.
From Improving your Project Management Skills by Larry Richman, AMACOM, 2006.

40. Estimating Costs Time vs. Cost Trade-off UNITS of COST UNITS of TIME
Highest Cost Solution
Early Finish Date
UNITS of COST
Least Cost Solution
Late Finish Date
UNITS of TIME
From Improving your Project Management Skills by Larry Richman, AMACOM, 2006.

41. Estimating Costs Time vs. Cost Trade-off UNITS of COST UNITS of TIME
Highest Cost Solution
LIMITS
Early Finish Date
UNITS of COST
Least Cost Solution
Late Finish Date
UNITS of TIME
From Improving your Project Management Skills by Larry Richman, AMACOM, 2006.

42. If you have to estimate costs, where do you start?
Estimating Costs
If you have to estimate costs, where do you start?

43. Estimating Costs Tips on determining costs:
Historical costs for similar projects completed in the past
Pull costs for the individual pieces, then sum them up for the total (equipment, labor, etc.)
Speak with experts in the field of your project – who might that include?
Request for Quotes from vendors if outside labor is required
Speak with Finance for similar spend

44. Estimating Costs
At most companies, asking for $ can be a challenge... How do you sell the cost for your project?

45. Estimating Costs When asking for Money:
Start with WIIFT (What’s In It For Them) or benefits
Craft your message around the ROI of the project:
Time
Efficiency
Other cost savings?

46. Monitoring the Project Budget
Typical Budget Challenges:
Scope creep
Inflation during long-term projects
Unfavorable changes in currency rates
Failing to get firm prices from suppliers or contractors (or not properly defining the scope during the RFP process).
Unplanned personnel costs such as overtime, training or consulting fees

47. Pre-Project Planning Defining the Project Scope Your Project Plan
Adding Costs to the Equation
Risks
Roles & Responsibilities

48. Risks, Constraints, Assumptions
Why is identifying risks and constraints important?

49. Risks and Constraints Identifying Risks Risk Probability vs. Impact
Low
Moderate
High
PROBABILITY
From Improving your Project Management Skills by Larry Richman, AMACOM, 2006.

50. Risks and Constraints
The “critical path” of a project is one of the best ways to track RISKs or CONSTRAINTs to your project. What is meant by the “critical path”?
Can be even more critical than budget because most times, $ is linked to how long something will take. No always, but time is a good indicator.

51. Determining the Critical Path
Critical Path is the series of tasks with the longest duration. If anything is delayed in that path, it will delay project completion.

52. Risks and Constraints Other Risks/Constraints:
When do decisions need to be made to keep you on track and how long does it take to schedule the decision makers?
Are resources (i.e., people or equipment) available when you need them?
What happens if funding is not approved?
How to ensure Senior Management support on a recommendation?

53. Risks and Constraints Other Considerations:
Anticipate what’s going to go wrong 2-3 steps down the road.
Figure out where/how you’ll make up for lost time later in the project.
How to meet deadlines without burning bridges?

54. Monitoring the Project Budget
What is scope creep?

55. Monitoring the Project Budget
How Scope Creep occurs:
Lack of agreement on the original Project Scope statement
Not sticking to the original Project Scope statement
Lack of a Project Scope statement

56. Pre-Project Planning Defining the Project Scope Your Project Plan
Adding Costs to the Equation
Risks
Roles & Responsibilities

57. Monitoring the Project Budget
Where do you start when identifying your project team?

58. Roles & Responsibilities
Determining your Project Team:
Skills needed for each task or group of tasks
Ability to learn new things
Knowledge
Personality
Availability
Experience
Ability to work with others

59. Roles & Responsibilities
Defining Skills Required by Task
Tasks
Skills Needed
Level of Experience
Potential Team Members
Define program requirements
Web programming
2 years
Oracle database
Good communication skills
Experience writing requirements on previous internal projects
Determine platform and languages
Senior programming skills
5 years
Design programming modules
OO design/UML
Write help screens and manual
Technical writing
1 year

60. Roles & Responsibilities
Skills Inventory
Employee
Title
Skills/Training
Years
Education
Bob Smith
Programmer I
Degree
BS Computer Science
Java 3
XML 2
.NET
Payroll System 1
PeopleSoft HRIS
Suzy Jones
Database Administrator
Oracle programming 5
Oracle administration
Accounting System
Tyrell Bisogno
Technical writer
BA English

61. Roles & Responsibilities
Need answers to the following:
Are the right resources going to be available at the right time?
Has priority been established between your project and their other tasks?
Do the resources have the available time to put towards the project?
What happens if these are not in place?

62. Organizing Your Resources
Clearly Define Roles & Responsibilities
Steering Committee
Name
Project Champion
Name
Position
Name
Position
Name
Project Leader
Bob R.
Controller
Function
Name
Position
Name
Position
Function
Name
Position
Function
Name
Position
Function
Step 2:
Define Roles:
Who is responsible for what?
This is not an organization chart, this defines who is on the core team, who participates as needed, and who is a decision maker
Core Team
As Needed Support/
Functional Experts

63. Organizing Your Resources
Clearly Define Roles & Responsibilities
Steering Committee
Name
Project Champion
Name
Position
Name
Position
Name
Project Leader
Bob R.
Controller
Function
Name
Position
Responsibilities:
Deliver weekly updates on budget tracking
Validate Financial Analysis
Align saving to budgeting process
Contribute to Business case
Step 2:
Define Roles:
Who is responsible for what?
This is not an organization chart, this defines who is on the core team, who participates as needed, and who is a decision maker
Core Team
As Needed Support/
Functional Experts

64. Pre-Project Planning Defining the Project Scope Your Project Plan
Adding Costs to the Equation
Risks and Constraints
Roles & Responsibilities
Any Final Questions?

65. Typical PM Challenges Challenge Strategies
Responsibility vs. authority trap
Draw on your expertise, knowledge, and track record to influence and persuade others to support your efforts.
Unrealistic targets
Resist temptation to develop your project schedule by starting with the imposed unrealistic finish date.
Assemble evidence showing why deadline is unrealistic.
Present the situation as concisely as you can to your boss.
Serving multiple
bosses
Negotiate conflicting demands from both bosses: ask for clarification on priorities, highlighting deadlines for both bosses.
Project Uncertainty or Undefined Goals
Use ranges of values instead of single figures when providing cost and schedule estimates.

66. Continue Your Learning
Good Resources
The Essential of Project Management, Harvard Business School Press, 2006.
Project Management Jump Start: The Best First Step Toward a Career in Project Management, Kim Heldman, Jossey- Bass Publisher, 2005.
Improving your Project Management Skills, Larry Richman, AMA, 2006.

67. Essentials of Project Management
Any Final Questions?