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0 Project success © Deloitte & Touche LLP and affiliated entities. Project success is only the beginning… Manage your post implementation phase Christian Rodericks, PMP PMI-SOC - October 2006
1 Project success © Deloitte & Touche LLP and affiliated entities. Agenda Introduction Subject Key message/objective PMI framework Scope of success Challenges Key success factors Closure checklist Questions
2 Project success © Deloitte & Touche LLP and affiliated entities. Introduction Christian Rodericks, PMP Christian is a Manager in the Enterprise Risk Practice. He has over 10 years of project management and enterprise architecture experience; including ERP systems, integration technologies and custom application development. Christian’s main focus has been in the Financial and Technology Industries, and since joining Deloitte, Christian has provided project advisory services to clients undergoing large complex system implementations. Christian remains a hands-on technologist with a deep understanding of many current and legacy system development technologies. Christian’s academic background includes a Bachelor of Mathematics degree from the University of Waterloo and he is a PMI Certified Project Management Professional (PMP).
3 Project success © Deloitte & Touche LLP and affiliated entities. Think about your project experience… Think about the projects you’ve managed and been involved in over the years. In how many of those projects, were you actively involved with in the post-implementation phase? What was done to enable the project product to be fully transitioned into the business?
4 Project success © Deloitte & Touche LLP and affiliated entities. If we think of climbing a mountain as a project, then what would be our project go-live date/deliverable? We probably think of reaching the top of the mountain as our project deliverable.
5 Project success © Deloitte & Touche LLP and affiliated entities. Key message I believe that it is critical to have proper project management in any post-implementation phase in order to maximize the value and acceptance levels from the stakeholders. Think about the benefits we could deliver to our stakeholders if we were to manage our projects beyond go-live until the project was fully transitioned into the business.
6 Project success © Deloitte & Touche LLP and affiliated entities. What does PMI say? As part of the Integration Management and Procurement Management areas, PMI provides the following two procedures to be performed in order to close out an entire project or project phase: –Administrative closure –Contract closure These procedures will definitely guide us in project closeout. The benefit of these procedures is that we can use them to help transition the project to the business and realize true project success.
7 Project success © Deloitte & Touche LLP and affiliated entities. Where’s the scope of success?
8 Project success © Deloitte & Touche LLP and affiliated entities. Scope of success Often a project is considered not to be successful, whilst the project manager has done a great job. InitiatingPlanningExecutionGo-livePost-impClosure Scope of project management success Scope of project success Project manager Stakeholders/business user
9 Project success © Deloitte & Touche LLP and affiliated entities. So what are the challenges? We focus on go-live. We have less experience in post implementation. We need to understand more about the business. We trade off long term benefits for short term gains.
10 Project success © Deloitte & Touche LLP and affiliated entities. Heavy focus on “go-live” External/internal pressures to get the project into live mode. Project Managers know that there’s a post-implementation phase and many understand what it takes to run an effective and efficient transition from the project into the business. Pressures from the business community and executive sponsor to realize value and ROI place enormous demands on the project manager to deliver a go-live.
11 Project success © Deloitte & Touche LLP and affiliated entities. Heavy focus on “go-live” (Continued) The reality is that large IT projects can often times run over budget, time and either increase or decrease in scope. The business community and executive sponsor’s tolerance levels shrink within every missed milestone or proposal to delay the go-live, resulting in: –Cancelled projects, or –Added pressure to commit to a “do or die go-live date”
12 Project success © Deloitte & Touche LLP and affiliated entities. Less experience in post implementation-transition As project managers, we have less experience in post-implementation: –We think of delivering the project through a successful go-live and spend less time in transitioning the project product to the business
13 Project success © Deloitte & Touche LLP and affiliated entities. Understanding the business Project managers need to understand the business. Not all project managers understand or visualize how the product of the project will run in a departmental/steady state point of view: –This is why it is essential to include the right business people up front –In addition, IT will also be involved to access the likelihood of delivering on those demands –Be cautious of the business compromises or early acceptances of concepts presented by IT. They can often be misunderstood by the business, increasing the risk not meeting their needs Running the project to build the system was easy compared to running the business - the project manager may not have ability to actually work with the system they implemented and hence want to stay in their comfort zone and focus on the project only.
14 Project success © Deloitte & Touche LLP and affiliated entities. Managing the project in the present day With aggressive go-live commitments, the project is racing against time. Sometimes, the executive sponsor places more pressure by selecting a go-live date for the project manager, forcing the project manager to plan and work backwards from that date to meet the go-live. To add complexity, budgets are often frozen. We need to help sponsors to understand that on time, on budget is of no value if the business requirements are not met. In many cases, deferred functionality is approved…with unknown impacts in post-implementation. Focus on managing the priorities for your role as a project manager.
15 Project success © Deloitte & Touche LLP and affiliated entities. Project manager’s big challenge “If you’re deeply involved in solving technical problems, who’s managing the project?” A big challenge! 20% Technical 80% Human relations and management 80% Technical 20% Human relations and management Balance Project manager Technical specialist Role change
16 Project success © Deloitte & Touche LLP and affiliated entities. So what are the key success factors? We need the right project team. We need to think beyond go-live. We need to understand more about the business. We need departmental experience. We need to educate our sponsors/stakeholders.
17 Project success © Deloitte & Touche LLP and affiliated entities. Project team is vital Our project team needs to include representatives from business user community. Our project team needs to help translate business requirements to the technical team members. If you can find them, recruit project team members who have business and technical knowledge. Keep the project team intact, as a support structure during the warranty period.
18 Project success © Deloitte & Touche LLP and affiliated entities. Think beyond go-live…convince them! Like it or not, its how they’ll measure our performance and ability to deliver: –We could deliver a project product that technically meets many project objectives, but due to various reasons, the business user does not accept it We can mitigate this by: –Verifying that our project aligns to company objectives –Acquiring budget/time approval for post implementation up front –Acquiring the right team committed up front and keep that team! –Identifying the real impacts of deferred functionality –Developing our plan to include a proper transition into production
19 Project success © Deloitte & Touche LLP and affiliated entities. Know the business Before we can persuade the stakeholders about their business, we need to know it. Spend time with the business people to understand the real need behind the project product. Understand the risks/issues within the existing business environment. Understand the impacts of the gaps. Understand the benefits that the project product will bring to the business environment.
20 Project success © Deloitte & Touche LLP and affiliated entities. Will departmental experience help? We need to develop some departmental experience to help transition the results of projects into steady state: –Departmental experience in the industry of the project that your managing helps with the understanding process of the business needs –Increases creditability with the business, IT and the project team –Increases ability to challenge timelines –Improves communications with all levels –Leverages lessons learned and history from other projects
21 Project success © Deloitte & Touche LLP and affiliated entities. Educate our sponsors We need to help sponsors see the project complete at the end of the post-implementation phase, not at go-live. Educate sponsors & stakeholders to consider this role.
22 Project success © Deloitte & Touche LLP and affiliated entities. Upon closure When we finally get to the project closure, we want to verify key activities: –Has all remaining work been transitioned? –Has staff performance been reviewed? –Have all issues been closed? –Have all action items been closed? –Have all change requests been filed? –Has all product documentation been received? –Has the stakeholder agreed to the transition levels?
23 Project success © Deloitte & Touche LLP and affiliated entities. Upon closure (Continued) When we finally get to the project closure, we want to verify key activities: (Continued) –Does the stakeholder recognise that all work has been completed? –Have all financial books been closed? –Has a project review been conducted and documented? –Have stakeholder comments been gathered? –Have contracts been closed-out? –Have all formal approvals been received?
24 Project success © Deloitte & Touche LLP and affiliated entities. When do we start? Plan to manage the post-implementation in your next project.
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