2Why PM Skills are Important Individual ContributionRoll-out HRIS softwareOutsourcing HR activitiesDeveloping new employee programsConducting legal compliance auditStarting an HR departmentStrategic ContributionM&ADownsizing or restructuringRealign performance appraisals to match strategic goalsDeveloping crisis mgmt planFacilitating culture change
3“Plan your work and then work your plan.” Where to Start“Plan your work and then work your plan.”Norman Vincent Pealeauthor, The Power of Positive Thinking
4Pre-Project Planning Defining the Project Scope Your Project Plan Adding Costs to the EquationRisksRoles & ResponsibilitiesI 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.
5Why is formalizing what is IN and what is OUT so important? Project ScopeWhy is formalizing what is IN and what is OUT so important?
6What’s IN and What’s OUT Defining Project ScopeDraws a “line in the sand” of exactly what will be included and what will notHelps to establish very clear expectations for your customer(s)Good reference in the event there are questions as the project progressesActs as your foundation as new tasks are added (and the timeline adjusts)
7Goal Breakdown Structure ProjectGoalObjectives(Critical Success Factors)Deliverables(Critical Success Measures)Requirements(definitions on form, fit, feature, function)Senior ManagementFunctional ManagersSubject Matter ExpertsFrom Improving your Project Management Skills by Larry Richman, AMACOM, 2006.
8SMART Project Objectives pecificIs the objective clear about what, where, when, and how?MeasurableIs there a reliable system in place to evaluate? Does it have a clear measurement of success?Accurate & Agreed toIs it stated accurately to ensure you can measure the results correctly?Have you gained consensus and agreement from key stakeholders?RelevantDoes this objective map to a company result? Can the project team make an impact on the situation?Time- BoundIs 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?
9Refining the Objectives Project Deliverables:Measurable results, outcomes or specific products or services that must be provided in order to consider the project completeDeliverables, like goals, should be specific and measurableThe more specific the deliverables, the easier it will be to plan and estimate project activitiesEach of these deliverables requires some type of action and most large, complex projects have phased deliverables
10Refining the Deliverables Project Requirements:Different from goals and deliverables – they help define how we know the goal or deliverable is completed successfullyRequirements are a further breakdown of the deliverables; they describe the characteristics of the deliverable in very specific detailExample: our deliverable is a BEER, but the requirements are that it be AMBER, IN A BOTTLE, etc.
11Breaking Down the Goal-Example Goal Breakdown Structure (GBS) LevelsProjectGoalDouble market share of Product XYZ by end of 2013.Objectives1. Market Size(Critical Success FactorsDeliverables1.1 From $25k/yr to $40K/yr(Critical Success Measures)Requirements1.1.1 Maintain 20% profit margin
12Breaking Down the Goal-Example Goal Breakdown Structure (GBS) LevelsProjectGoalDouble market share of Product XYZ by end of 2013.Objectives1. Market Size(Critical Success Factors2. Market Share3. Product quality4. Rework5. Satisfaction ratesDeliverables1.1 From $25k/yr to $40K/yr(Critical Success Measures)Requirements1.1.1 Maintain 20% profit margin
13Breaking Down the Goal-Example Goal Breakdown Structure (GBS) LevelsProjectGoalDouble market share of Product XYZ by end of 2013.Objectives1. Market Size(Critical Success Factors2. Market Share3. Product quality4. Rework5. Satisfaction ratesDeliverables1.1 From $25k/yr to $40K/yr(Critical Success Measures)1.2 Capture 7.5% of new market1.3 Achieve ISO quality certification1.4 Decrease rework by 20%1.5 Achieve customer satisfaction rating of "best-in" by Consumer Reports standardsRequirements1.1.1 Maintain 20% profit margin
14What’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?
15What’s IN and What’s OUT GOAL: Reduce Inventory CostsWITHIN Project ScopeNOT WITHIN Project ScopeCommentsDetermine 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.
16Finalizing the Project Scope Written sign-off ofProject ScopeisCRITICAL before you begin!!!
17Finalizing 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?
18Finalizing the Project Scope Sign-off of Project Scope:Key StakeholdersKey Management Team MembersProject SponsorWho could come back after the fact and “balk” at the scope of the project?
19Pre-Project Planning Defining the Project Scope Your Project Plan Adding Costs to the EquationRisksRoles & Responsibilities
20Where do you start when trying to define your Project Plan?
22Where to Start?Start with the end in mind to help you define where you need to go and what you need todo to get there.As-is stateTo-be stateWhat major drivers exist that you should review?What tasks define how you’ll evaluate each major driver?
23When Beginning With the End… Think of the End Deliverable from your boss’s perspective:How would your boss define success?ORHow will he or she indicate that the project has been completed satisfactorily?
24Begin with the End Anheuser Busch Project: $3.0 billion in revenue across CanadaUpwards of $300MM residing in A/RIn 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 yearWHAT IS THE END DELIVERABLE?SUGGESTIONS ON HOW TO GET TO THE END DELIVERABLE?END GOAL: reduce amount of A/R outstandingStrategy 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 need24
25Defining Your Project Plan Any questions on beginning with the end?
26Defining Your Project Plan Project Managers use a tool called a Work Breakdown Structure (WBS) to illustrate what tasks need to be accomplished.
27WBS Best PracticesStart 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).
28Defining 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 constructionConduct site surveyObtain permitsClear siteExcavate siteRegrade and groom site
29WBS Example HRIS Work Breakdown Structure Major Task Level 1 Subtask Level 2 Subtasks1 - Conduct needs assessment1.1 Assess proposed system's interact with current systems1.1.1 Survey other HR depts. for their best practices1.1.2 Interview HR staffers to define process flows and functionality2 - Create system specifications2.1 Specify database functionalityWrite separate specs for each module (benefits, recruitment, etc.)2.2.2 Specify data-entry and retrieval processes3 - Design system3.1 Design report formats3.1.1 Design ad hoc report formats3.1.2 Design standard report formats4 - Develop system4.1 Ensure system's securityEngage technical security specialist4.1.2 Create security plan5 - Install system5.1 Develop user training program5.1.1 Develop online tutorial5.1.2 Create in person training6 - Evaluate system6.1 Assess effectiveness of modules6.1.1 Assess recruiting module6.1.2 Assess applicant tracking modules
30Defining 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..
31Defining Your Project Plan Gantt charts are a graphical representation of the duration of tasksGantt charts illustrate how long a project should takeGantt charts also lay out the order in which tasks need to be carried out and any dependencies
32Estimating Time via WBS HRIS Work Breakdown StructureLevel 2 subtask duration (days)Major TaskLevel 1 SubtaskLevel 2 Subtasks1 - Conduct needs assessment1.1 Assess proposed system's interact with current systemsSurvey other HR depts for their best practices2Interview HR staffers to define process flows and functionality2 - Create system specifications2.1 Specify database functionalityWrite separate specs for each module (benefits, recruitment, etc.)4Specify data-entry and retrieval processes33 - Design system3.1 Design report formatsDesign ad hoc report formatsDesign standard report formats4 - Develop system4.1 Ensure system's securityEngage technical security specialist5Create security plan5 - Install system5.1 Develop user training programDevelop online tutorial10Create hands-on training6 - Evaluate system6.1 Assess effectiveness of modulesAssess recruiting moduleAssess applicant tracking modulesTOTAL DURATION (DAYS):46
33Where 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?
34Defining Your Project Plan Has anyone done a Gantt chart before?
36Pre-Project Planning Defining the Project Scope Your Project Plan Adding Costs to the EquationRisksRoles & Responsibilities
37Estimating Costs Conventional Project Management Wisdom says: You may want it good, fast and cheap BUT you only get TWO!!
38Estimating 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.
39Estimating 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.
40Estimating Costs Time vs. Cost Trade-off UNITS of COST UNITS of TIME Highest Cost SolutionEarly Finish DateUNITS of COSTLeast Cost SolutionLate Finish DateUNITS of TIMEFrom Improving your Project Management Skills by Larry Richman, AMACOM, 2006.
41Estimating Costs Time vs. Cost Trade-off UNITS of COST UNITS of TIME Highest Cost SolutionLIMITSEarly Finish DateUNITS of COSTLeast Cost SolutionLate Finish DateUNITS of TIMEFrom Improving your Project Management Skills by Larry Richman, AMACOM, 2006.
42If you have to estimate costs, where do you start? Estimating CostsIf you have to estimate costs, where do you start?
43Estimating Costs Tips on determining costs: Historical costs for similar projects completed in the pastPull 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 requiredSpeak with Finance for similar spend
44Estimating CostsAt most companies, asking for $ can be a challenge... How do you sell the cost for your project?
45Estimating Costs When asking for Money: Start with WIIFT (What’s In It For Them) or benefitsCraft your message around the ROI of the project:TimeEfficiencyOther cost savings?
46Monitoring the Project Budget Typical Budget Challenges:Scope creepInflation during long-term projectsUnfavorable changes in currency ratesFailing 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
47Pre-Project Planning Defining the Project Scope Your Project Plan Adding Costs to the EquationRisksRoles & Responsibilities
48Risks, Constraints, Assumptions Why is identifying risks and constraints important?
49Risks and Constraints Identifying Risks Risk Probability vs. Impact LowModerateHighPROBABILITYFrom Improving your Project Management Skills by Larry Richman, AMACOM, 2006.
50Risks and ConstraintsThe “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.
51Determining 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.
52Risks 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?
53Risks 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?
54Monitoring the Project Budget What is scope creep?
55Monitoring the Project Budget How Scope Creep occurs:Lack of agreement on the original Project Scope statementNot sticking to the original Project Scope statementLack of a Project Scope statement
56Pre-Project Planning Defining the Project Scope Your Project Plan Adding Costs to the EquationRisksRoles & Responsibilities
57Monitoring the Project Budget Where do you start when identifying your project team?
58Roles & Responsibilities Determining your Project Team:Skills needed for each task or group of tasksAbility to learn new thingsKnowledgePersonalityAvailabilityExperienceAbility to work with others
59Roles & Responsibilities Defining Skills Required by TaskTasksSkills NeededLevel of ExperiencePotential Team MembersDefine program requirementsWeb programming2 yearsOracle databaseGood communication skillsExperience writing requirements on previous internal projectsDetermine platform and languagesSenior programming skills5 yearsDesign programming modulesOO design/UMLWrite help screens and manualTechnical writing1 year
61Roles & 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?
62Organizing Your Resources Clearly Define Roles & ResponsibilitiesSteering CommitteeNameProject ChampionNamePositionNamePositionNameProject LeaderBob R.ControllerFunctionNamePositionNamePositionFunctionNamePositionFunctionNamePositionFunctionStep 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 makerCore TeamAs Needed Support/Functional Experts
63Organizing Your Resources Clearly Define Roles & ResponsibilitiesSteering CommitteeNameProject ChampionNamePositionNamePositionNameProject LeaderBob R.ControllerFunctionNamePositionResponsibilities:Deliver weekly updates on budget trackingValidate Financial AnalysisAlign saving to budgeting processContribute to Business caseStep 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 makerCore TeamAs Needed Support/Functional Experts
64Pre-Project Planning Defining the Project Scope Your Project Plan Adding Costs to the EquationRisks and ConstraintsRoles & ResponsibilitiesAny Final Questions?
65Typical PM Challenges Challenge Strategies Responsibility vs. authority trapDraw on your expertise, knowledge, and track record to influence and persuade others to support your efforts.Unrealistic targetsResist 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 multiplebossesNegotiate conflicting demands from both bosses: ask for clarification on priorities, highlighting deadlines for both bosses.Project Uncertainty or Undefined GoalsUse ranges of values instead of single figures when providing cost and schedule estimates.
66Continue Your Learning Good ResourcesThe 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.
67Essentials of Project Management Any Final Questions?