The SMART Project Manager

The SMART Project Manager
SMART Project Management® Skills for Software Francis Hartman PhD FEIC FCAE FICE PEng CEng Professor, University of Calgary QeD Inc. © Francis Hartman Holdings Ltd.

© Francis Hartman Holdings Ltd.
Agenda Top 10 lessons not learned… A few important Questions Joining a few dots SMART Applied (selected) Where are we going next? Beware of imitations… © Francis Hartman Holdings Ltd.

Who is to blame for Software project Failure?
Exercise Who is to blame for Software project Failure? © Francis Hartman Holdings Ltd.

List the top ten causes of failure on your project(s).
Exercise List the top ten causes of failure on your project(s). © Francis Hartman Holdings Ltd.

Lessons we won’t learn - 1
Inadequate Budget or Schedule, Optimistic Performance Scarce or wrong Expertise Insufficient design development prior to commitment Risks not identified and managed, or understated Resource Shortages © Francis Hartman Holdings Ltd.

Lessons we won’t learn - 2
Communication breakdown Scope changes out of control Priorities shift over time Wrong contracting strategy Problems acknowledged too late © Francis Hartman Holdings Ltd.

A few important Questions
Project Approved? (SM) Priorities Clear? (A) Know what to do? (R) Next Crisis? (T) 29 out of 29 so far . . . © Francis Hartman Holdings Ltd.

Approved? Budget E.A.C. Team A Team B © Francis Hartman Holdings Ltd.

Aligned Align the Architect… P T Users Sys. Arch. Sponsor BOSS Dev’t team PM Subs Sponsor … and then the others… C © Francis Hartman Holdings Ltd.

Know what’s Next?: 1 © Francis Hartman Holdings Ltd.

Know what’s Next?: 2 Team A Team B © Francis Hartman Holdings Ltd.

Crisis?: 1 Opp Opp Opp Opp Risk Risk Opp Risk Risk Risk Opp Risk Opp Risk Risk Risk Opp Risk Risk Risk Risk Opp Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk PLO PLO PLO PLO PLO PLO PLO PLO PLO Risk Risk Risk Risk Risk Risk Risk 5/7/12 weeks Bad Weather  Pre- Approve Permit © Francis Hartman Holdings Ltd.

Crisis?: 2 I M P A C T Risk H I L O Risk Risk 2 Risk Opp 1 Opp Opp Risk Risk Risk Risk Risk Consider Priorities: T, P, C Risk Risk Risk Opp Risk Risk Risk 4 3 Opp Risk Risk Risk LO HI Consider Break-point Probability PROBABILITY OF OCCURENCE © Francis Hartman Holdings Ltd.

Join the Dots… ? Success Measures © Francis Hartman Holdings Ltd.

Priority Triangle Time Performance X X X X X Cost © Francis Hartman Holdings Ltd.

Priority Triangle Time X Performance X X Cost © Francis Hartman Holdings Ltd.

Importance? T P C $1,000 Must Should Nice  ?   $1,050 $ 950 $1,350 © Francis Hartman Holdings Ltd.

Join the Dots… Success Measures PM Maturity   © Francis Hartman Holdings Ltd.

PM Maturity   It is all relative…. © Francis Hartman Holdings Ltd.

Join the Dots… Success Measures PM Maturity   Challenge © Francis Hartman Holdings Ltd.

Assessing the Project © Francis Hartman Holdings Ltd.

240 720 60 20 4 Assessing the Project Scale Nature 1 2 3 4 5 Relative Size Impact on Organization No impact on the organization Success or failure will be noticed but will not significantly impact organization Significant impact on the organization if project fails or succeeds. No impact on Executive Project will affect executives depending on the outcome Project will affect entire organization, depending on the outcome Complexity Barriers to Communication One group, know each other well >1 discipline but no more than two organizations involved >2 Cultures, many professional and technical disciplines Several disciplines, geographically distributed, several organizations Numerous disciplines, organizations and cultures. Different languages Uncertainty Definition of end of Project Clearly defined objectives and end-product Objective clear, end product defined, approach flexible Objectives understood, solutions and options not finalized Objective not clear, several possible outcomes Objective and end product unclear Constraints Flexibility: Time, Cost and Performance No limitations on resources, time. Flexibility in scope and quality Some flexibility in Time OR cost to met expected Performance Realistic schedule and budget for the performance expected by the client Tight schedule and budget. No room for error in performance criteria (scope and quality) Inadequate budget and/or schedule to meet exacting performance requirements Ugliness Level of attractiveness of the project Exciting, prestigious project, excellent image Working on this project will likely be a positive experience Will neither excite nor disappoint participants. Safe workplace Challenging project and difficult work environment Project will damage image and reputation of participants. Unhealthy work environment © Francis Hartman Holdings Ltd.

Assessing the Project 1000 Renegade Repeater 100 10 Runner Task © Francis Hartman Holdings Ltd.

Runner Projects E.A.C. Budget © Francis Hartman Holdings Ltd.

Repeater Projects Budget E.A.C. © Francis Hartman Holdings Ltd.

Renegade Projects Budget E.A.C. Team A Team B © Francis Hartman Holdings Ltd.

Join the Dots… Success Measures PM Maturity Trust   Challenge © Francis Hartman Holdings Ltd.

A new look at our World… Lead Wisdom Inspiration Intuituve Trust Manage Knowledge Judgment Integrity Trust Administer Information Competence Competence Trust Do Data Skills © Francis Hartman Holdings Ltd.

SMART Management® Matrix
Change State (Growth) Sustainability Span of Control Share Value (VS) What we do (& use) Phase or State* Trust** Focus Leadership Intuitive Social Societal Cultural Future WINNER Competence (Knowledge) Enterprise Master (Lead) Vs=f(R+Ef(S)) GAS - HOT Management Today’s CHANGE Business Commerce Political Integrity Program Process (Procedure) Journey- man (Comply) LIQUID - WARM Vs=f(R+E) Administration Competence Project Stable OPS. Tools Technology Technical Apprentice (Follow) Delivery (Tools) SOLID - COLD Vs=f(R) R = Return; E = Expected Return; S = Shadow Expectation * Inspired by and Adapted from Jennifer Krahn **Developed with input from Elke Romahn © Francis Hartman Holdings Ltd.

What SMART Project Management® is about . . .
PM Skills  Runners (Commodity - Product) Repeaters (Product - Service) Leadership & Trust Renegades (Service - Relationship) © Francis Hartman Holdings Ltd. With thanks to Jennifer Krahn and Ralph Levene

Intuition Red Trust = “It feels Right” Rapid Processing + Emotion Rapid processing > Synapses More connections > Better A Course that works . . . © Francis Hartman Holdings Ltd.

Join the Dots… Success Measures eDNA PM Maturity Trust   Challenge © Francis Hartman Holdings Ltd.

Matching Project and Leader
Top Five Skills Bottom five skills How to make the Bottom float to the Top Trust, Courage, Wisdom… © Francis Hartman Holdings Ltd.

The Bottom Five PM Competencies
Based on work by Dr. J. Krahn Technical skills Political savvy Relevant prior experience Knowledge in project area Charisma © Francis Hartman Holdings Ltd.

The Top Five PM Competencies
Based on work by Dr. J. Krahn People skills Leadership Listening Strong at building teams Verbal communication © Francis Hartman Holdings Ltd.

Competence in Context Based on work by Dr. J. Krahn 1 2 3 Large project team leadership people skills strong team building High risk risk management planning Ineffective contractual terms conflict resolution relevant experience Complex project (many disciplines) listening © Francis Hartman Holdings Ltd.

Competence in Context Based on work by Dr. J. Krahn 1 2 3 Lacks scope clarity leadership has vision purpose goals risk management Not sr. mgt. supported self confidence people skills Large scope planning relevant prior experience High uncertainty expectation management © Francis Hartman Holdings Ltd.

Competence in Context Based on work by Dr. J. Krahn Challenging politics people skills verbal comm. leadership, expectation mgt Very little clarity (client) expectation management leadership Novel project has vision purpose goals Constrained resources planning people skills, balance priorities 1 2 3 © Francis Hartman Holdings Ltd.

Join the Dots… Business Context Project Program Enterprise Success Measures eDNA PM Maturity Trust   Challenge © Francis Hartman Holdings Ltd.

A few important Questions
What’s the Problem? What kind of Project is this anyhow? Drivers? Risks and Uncertainty? Can we kill the Monster Project? © Francis Hartman Holdings Ltd.

Solving the Right Problem
He keeps telling us what the solution is, but we still don’t know what the problem is… © Francis Hartman Holdings Ltd.

Redefining Success Successful “Failed” Projects The Alberta S- Projects Sydney Opera House SAP, other ERP Systems Lots of others Failed “Successes” Avro Arrow Euro Tunnel Most Mergers and Acquisitions Lots of others… © Francis Hartman Holdings Ltd.

Decision Skills Trust types Red Trust – Intuition Decisions bigger than the data Turbo-brains Soft is hard Hard is easy © Francis Hartman Holdings Ltd.

Difficult Decisions Thin Data Big Decision Thinner Information Add Knowledge Add Wisdom © Francis Hartman Holdings Ltd.

Join the Dots… Business Context Project Program Enterprise Project Language vs. Business Language Success Measures eDNA PM Maturity Trust   Challenge © Francis Hartman Holdings Ltd.

Management Made Simple
Lie about what we can do Blame Accusations Fictional Team of Super-heroes Confirm the lie Do work and Lie some more © Francis Hartman Holdings Ltd.

Turbo-Brains © Francis Hartman Holdings Ltd.

Managing IS/IT Projects with SMART Project Management®
Practice and Principles. © Francis Hartman Holdings Ltd.

Pick what we want to cover
Select top topics Agree on sequence Do what we can… Know where to go for more help… Get involved in SMART © Francis Hartman Holdings Ltd.

Select top topics Categorizing projects Charter overview SBS Risk Management Schedules that work Priorities 7. REAL Control 8. Stakeholder Alignment Contingencies Progress Meetings 15 Questions SMART Project GPS™ © Francis Hartman Holdings Ltd.

Agree on sequence Can we follow the notes? Can we skip important bits? Are we OK with a few tips and hints? © Francis Hartman Holdings Ltd.

Do what we can… First time for this workshop Need your help Have fun… © Francis Hartman Holdings Ltd.

Know where more help is…
SMI and QeD Inc. Beware of Uncertified Practitioners © Francis Hartman Holdings Ltd.

Get involved in SMART Certification Licensed Practitioners Corporate Licenses © Francis Hartman Holdings Ltd.

SMART PM® Planning Agenda
Overview of SMART Project Management Alignment Three Key Questions Priority Triangle SMART Breakdown Structure Schedule and Budgeting 3-D Schedule PLO Estimating for Durations, Effort and Costs Risk and Uncertainty Management Finding and Mitigating Communication Target Setting Turning a Plan into a Successful Project Scheduling for Reality Rolling Wave Planning Contracting Strategies Reporting and Documentation © Francis Hartman Holdings Ltd.

Objective Learning to have fun as Project Managers and as Teams Basics of how projects work Some survival Tools and Techniques A different (management) look at what we do Understanding our stakeholders Help us choose the right next step Improve career opportunities? NOTES:________________________________________________________ _______________________________________________________________ © Francis Hartman Holdings Ltd.

SMART Differences Redefined Project Management Redefined and added to PMBOK Respond to Uncertainty More Proactive and Flexible Faster, Cheaper and Better Projects © Francis Hartman Holdings Ltd.

Answer this . . . You have $45 Million to spend. Which of the following projects would you pick? Why? What else do you need to know? PROJECT BUDGET ($x1,000) 1. Upgrade Hardware & Intranet for 50 Business units 12,600 2. PeopleSoft Implementation (3 modules) 22,700 3. Health/Fitness Facilities for Staff 7,400 4. Top-up of Pension Liabilities 42,800 5. Upgrade Risk Management System 8,750 6. Full SOX Compliance 34,500 © Francis Hartman Holdings Ltd.

Our Organization, Unit, Program, Project
© Francis Hartman Holdings Ltd.

Where Our Project Fits Tie to Corporate Strategy Part of program? Only one Department or Bus. Unit? Who are Stakeholders? How do decisions get made? Who Sanctions/Funds? Measures for success consistent? © Francis Hartman Holdings Ltd.

SMART PM™ Charter... S.B.S 3 Questions 3-D Schedule Mission KRs
© SMART Management Inc. and Francis Hartman Holdings Ltd. 2001 SMART PM™ Charter... S.B.S 3 Questions 3-D Schedule Won,Done, Who Mission Decision KRs (Stakeholders) Process P/L/O/T Process P/L/O/T Process P/L/O/T Process P/L/O/T Priority Triangle Deliverable Deliverables T,P,$ Exclusions Needs Needs Needs Needs RACI+ Chart Risk Management GPS O Impact O Probability O Controllability O Monte Carlo Simulation O Register O Mitigation Plan O Contingency Mgt. Project Details t $ O Deliverable O Gantt Chart O People/Roles O Plus...

© SMART Management Inc and Francis Hartman Holdings Ltd. 2001 SMART PM™ Charter... S.B.S 3 Questions 3-D Schedule Won,Done, Who Mission Decision Decision KRs (Stakeholders) Process P/L/O/T Process P/L/O/T Process P/L/O/T Process P/L/O/T Priority Triangle Deliverable Deliverable Deliverable Deliverable Deliverables Deliverable Deliverable T,P,$ Deliverable Exclusions Needs Needs Needs Needs RACI+ Chart Risk Management GPS O Impact O Probability O Controllability O Monte Carlo Simulation O Register O Mitigation Plan O Contingency Mgt. Project Details t $ O Deliverable O Gantt Chart O People/Roles O Plus...

Mission What’s the PROBLEM? What’s the SOLUTION? Are there CHOICES? What are you trying to achieve? “Elevator Statement” summarizing this. © Francis Hartman Holdings Ltd.

Answering 15 Questions What is the PROBLEM? Is this the right project? Connection to strategy? Stakeholders’ needs? Key results for success? Success ranges ($,T,P)? Risks known? Risk mitigation? Delivery processes clear? Deliverables defined? Stakeholders aligned Priorities clarified Team effective? Communications clear? Contracting strategy OK? © Francis Hartman Holdings Ltd.

Scope of Projects (SBS)
What The SBS is How it works Important points about SBSs Your Project’s SBS Be prepared to present (one team) © Francis Hartman Holdings Ltd.

SBS – Structure  Mission Stakeholder Key Result Expectations           Deliverables © Francis Hartman Holdings Ltd.

SBS – Components Mission Stakeholders Key Results Deliverables Parking Lot Exclusions © Francis Hartman Holdings Ltd.

SBS – Mission Elevator Statement Captures the PROBLEM Shows the SOLUTION Indicates the VALUE Process: Free thinking Some parts may turn out to belong elsewhere Wordsmith later © Francis Hartman Holdings Ltd.

SBS – Key Results and Stakeholders
Start with the Stakeholders Identify them Group them with others who have similar expectations (KRs) Rank them for this project What does each stakeholder group expect? Key Results are Measurable OK to share with other Stakeholder groups © Francis Hartman Holdings Ltd.

SBS – Deliverables All Deliverables have a physical manifestation KRs are met through Deliverables Validate that KR Metric can be measured when last Deliverable is done Break big Deliverables into smaller ones Break those into more detail as detail appears Add additional layers when it makes sense to do so Add Price (PLO), Elapsed Time (PLO) and Effort (PLO) for each Deliverable Estimates roll up and down on SBS Add SBS codes. © Francis Hartman Holdings Ltd.

Deliverable Types Input and Output Deliverables Process and Result Must, Should and Nice Existing and Future Controllable and Uncontrollable (usually Input deliverables) © Francis Hartman Holdings Ltd.

SBS – Parking Lot Place to put Deliverables if: Maybe in Scope Too ill-defined to understand Have been excluded but are sensitive Parking lot holds any and all other issues that need more time to understand or that have not been excluded yet – but are expected to. © Francis Hartman Holdings Ltd.

SBS – Exclusions All specifically excluded items Need to explain to stakeholders: Not in Exclusions not same as included! Purpose is to help delimit This list needs to be added to whenever a stakeholder asks for something that is not in scope. © Francis Hartman Holdings Ltd.

Other SBS Tips “Cloudy” Issues Temporary definition Based on budget or other resources Hidden Agenda items Put suspects in Exclusions, stand back! Decide what governs for control: T: Stop when time runs out P: Must Should and Nice C: Do what you can for Budget © Francis Hartman Holdings Ltd.

Using SBS for Estimating - 1
Estimate what is in scope Each deliverable: Money Effort Elapsed Time Specification © Francis Hartman Holdings Ltd.

Using SBS for Estimating – 2
Range Estimates State and document Assumptions Parent value = sum of children values (before contingency) Add contingencies for targets Test and cross-check for reality Task team size/communication/coord’n Timing and availability of resources In-house v. Outsourced Basis of Estimate © Francis Hartman Holdings Ltd.

Three Key Questions 3 How do you know the project is DONE? How do you know the project is successful (You’ve WON)? WHO gets to make the call on questions 1 and 2! (ask this first)? 2 1 1) DONE What do stakeholders agree is the end of the project, and what conditions must exist to indicate that we have completed the project? Each of the DONE indicators will have one or more associated deliverables. 2) WON At the point we’ve agreed that we’re DONE, how will know we have WON? What are the objective indicators of project success? Each of the WON measures will have one or more associated metrics defined as a range of outcomes. 3) WHO Who gets to make the call on questions 1 and 2, specifically who on behalf of the organization sponsoring the project, will declare that the project is DONE and that the project team has WON? The WHO is generally, but not always, the project sponsor. © Francis Hartman Holdings Ltd.

Criteria for Success The Three Questions asked at the PARTY at end of this SUCCESSFUL project Cross-check with SBS components © Francis Hartman Holdings Ltd.

© SMART Management Inc. and Francis Hartman Holdings Ltd. 2001 SMART PM™ Charter... S.B.S 3 Questions 3-D Schedule Won,Done, Who Mission Decision Decision KRs (Stakeholders) Process P/L/O/T Process P/L/O/T Process P/L/O/T Process P/L/O/T Priority Triangle Deliverable Deliverable Deliverable Deliverable Deliverables Deliverable Deliverable T,P,$ Deliverable Exclusions Needs Needs Needs Needs RACI+ Chart Risk Management GPS O Impact O Probability O Controllability O Monte Carlo Simulation O Register O Mitigation Plan O Contingency Mgt. Project Details t $ O Deliverable O Gantt Chart O People/Roles O Plus...

Aligned Align the Architect… P T Users Sys. Arch. Sponsor BOSS Dev’t team PM Subs Sponsor … and then the others… C © Francis Hartman Holdings Ltd.

Checking Value against Priorities
TEST Priority Triangle and KRs TEST Priority Triangle and MISSION TEST Priority Triangle and STAKEHOLDER EXPECTATIONS TEST Priority Triangle and 3 KEY QUESTIONS © Francis Hartman Holdings Ltd.

SMART PM™ Charter S.B.S 3 Questions 3-D Schedule Mission KRs Priority
© SMART Management Inc. and Francis Hartman Holdings Ltd. 2001 SMART PM™ Charter S.B.S 3 Questions 3-D Schedule Won,Done, Who Mission Decision Decision KRs (Stakeholders) Process P/L/O/T Process P/L/O/T Process P/L/O/T Process P/L/O/T Priority Triangle Deliverable Deliverable Deliverable Deliverable Deliverables Deliverable Deliverable T,P,$ Deliverable Exclusions Needs Needs Needs Needs RACI+ Chart Risk Management GPS O Impact O Probability O Controllability O Monte Carlo Simulation O Register O Mitigation Plan O Contingency Mgt. Project Details t $ O Deliverable O Gantt Chart O People/Roles O Plus...

Scheduling Backwards WHY BACKWARDS? Self-fulfilling Prophesy Explicit, not implicit assumptions Understand when a project drops dead Hard work! Forces more linear thinking Focus is on getting there and success © Francis Hartman Holdings Ltd.

The 3-D Schedule Process
Move result deliverables from the SBS to the 3-D Schedule Plan from the back to the front Use PLO estimates Conduct risk analysis and mitigation Target and re-plan from the front to the back © Francis Hartman Holdings Ltd.

3-D Plan Durations Add PLO durations/costs for each process Perfect (P) - how much duration & cost under perfect conditions? Likely (L) - how much duration & cost under under normal circumstances? Outrageous (O) - how much duration & cost if past problems arise again? © Francis Hartman Holdings Ltd.

Know what’s Next?: 1 © Francis Hartman Holdings Ltd.

3-D Planning …adding Target Durations
Process Process Process Process PLOT PLOT PLOT PLOT Deliverable Deliverable Deliverable Deliverable Deliverable Deliverable Deliverable Deliverable Deliverable Deliverable Deliverable © Francis Hartman Holdings Ltd.

2-D and 1-D Schedules In addition to Drop Dead Dates (3-D) When a Deliverable is to be delivered Definition Dates (2-D) When deliverables have FINAL Definition Decisions (1-D) Usually needed before we can define our deliverables . . . © Francis Hartman Holdings Ltd.

What is behind a 3-D? Process Deliverable PLOT © Francis Hartman Holdings Ltd.

Checks and Balances Plan twice, and in different ways Compare results Get the right people involved Manage what is important and volatile more than anything Keep people informed and involved © Francis Hartman Holdings Ltd.

EXERCISE Build a 3-D Schedule © Francis Hartman Holdings Ltd.

Checking your Plan Consider how your 3-D, 2-D and 1-D schedules reflect the drivers for the project. Consistency with Priority Triangle etc… Risks and Uncertainties Managed Early warning signs fro success/failure Benefits realization: esp. near start of project Look for inconsistencies Add new deliverables to SBS © Francis Hartman Holdings Ltd.

Re-checking your Plan Do you have the resources? Work Density? Team and group sizes? © Francis Hartman Holdings Ltd.

EXERCISE Cross-Check the Plan SBS 3-Questions Priority Triangle . . . 3-D Schedule © Francis Hartman Holdings Ltd.

Stakeholder Management
Get right people involved at start Engage Sponsor Sign ON to Charter Track Key Results and Changes against interested Stakeholders Get engaged at CheckPoints and OffRamps © Francis Hartman Holdings Ltd.

Quick Review Scope and SBS Estimating Specification Priority Triangle High-level Scheduling Stakeholder Management Checking the Plan © Francis Hartman Holdings Ltd.

© SMART Management Inc. and Francis Hartman Holdings Ltd. 2001 SMART PM™ Charter... S.B.S 3 Questions 3-D Schedule Won,Done, Who Mission Decision Decision KRs (Stakeholders) Process P/L/O/T Process P/L/O/T Process P/L/O/T Process P/L/O/T Priority Triangle Deliverable Deliverable Deliverable Deliverable Deliverables Deliverable Deliverable T,P,$ Deliverable Exclusions Needs Needs Needs Needs RACI+ Chart Risk Management GPS O Impact O Probability O Controllability O Monte Carlo Simulation O Register O Mitigation Plan O Contingency Mgt. Project Details t $ O Deliverable O Gantt Chart O People/Roles O Plus...

PM Past - Project Selection
? Project A Project B     48% TV % 15% Probability 95% 33% P50 TV % © Francis Hartman Holdings Ltd.

PM Past - CPM Activity A  9/10/12 10 What a Surprise! Activity B 0/10/112 10 © Francis Hartman Holdings Ltd.

Risk evaluation and management
Qualitative then Quantitative Analysis Find the Risks Develop Management Strategy & Plan Manage to Target Plan Classify and Prioritize © Francis Hartman Holdings Ltd.

Before we get into Risk…
Basic Estimating Elapsed time Cost Effort Resources PLO Estimates for each of these Defining deliverables by Estimate © Francis Hartman Holdings Ltd.

Basic Estimate for a Deliverable
Define the Deliverable: a Report Best guess at elapsed time (10 days) Best guess at Cost ($ 50,000) Best guess at Effort (60 hrs) Best guess at Resources Consultant (fee of $50,000) Briefing (10 hrs); Progress(5hrs);Draft review (15 hrs); Present findings(10+5 hrs); listen and Action (3x5 hrs) Consultant at $200 per hour burns 250 hours for fee. Equals 25 hours/day ave. so just over 3 people needed, and peak workforce at about 4 or 5. Our resources: Me, Boss and 2 Stakeholders THESE ARE SINGLE POINT ESTIMATES. © Francis Hartman Holdings Ltd.

Why Ranges? Fixed Point implies NO RISK Reality is estimates=guesses Ranges supply added information Uncertainty Possible risks Different opinions and rationales Cross-checks. © Francis Hartman Holdings Ltd.

A Good Risk Sticky © Francis Hartman Holdings Ltd.

Questions to ask (with apologies to children everywhere)
Do we have to? Why? Why me? What’s in it for me? Will you show me how to do it? Will it hurt? © Francis Hartman Holdings Ltd.

Issues Marketplace opportunities Business, Technology* and Social (*includes Environmental) Competitors and challenge to position How will risks change over time Impact on business Sunk cost syndrome. © Francis Hartman Holdings Ltd.

Prioritizing Risks I M P A C T H I L O 2 1 Consider Priorities: T, P, C 4 3 LO HI Consider Break-point Probability PROBABILITY OF OCCURENCE © Francis Hartman Holdings Ltd.

Management Options Ignore - VERY DANGEROUS! Insure - Insurance and Surety Contingency - Self-insure Avoid - Get rid of the risk Accept - balance of benefits against penalties Spread or Reduce - Risk Sharing Options Contract out (Transfer) - Do you know what you are paying? Remove - eliminate from project NOTES: _______________________________________________________________ © Francis Hartman Holdings Ltd.

Next Exercise Find the Risks on your project: Brainstorm Look at PLO estimates and ask “Why?” Consider Each major deliverable and Process Look at KRs and Stakeholders Brainstorm again Locate Risks on 3-D Schedule Place Risks in a Risk Matrix Assign Type 1 risks to team members and mitigate them Revisit PLOs for affected deliverables. © Francis Hartman Holdings Ltd.

Target and Contingencies
Target = A REALISTIC estimate of what we know to get project done at a given probability of success. Contingency = additional funds to preserve the REALISTIC estimate but covering the stuff we do not know. © Francis Hartman Holdings Ltd.

Top-down or Bottom-up? Element Element Element Element Element
Target = L with 3 weeks “float” 9/12/17/15 weeks 9/12/17 weeks Element 12 weeks 3/4/6/5 weeks Element Element Element Element 3/4/6/5 weeks 3/4/6/5 weeks Element Element Element Element 2/3/4/4 weeks Element Element Element © Francis Hartman Holdings Ltd.

Organizing Contingency - 1
Traditional versus new thinking 5% or a number based on risk profile? Spend when you have to or when you should? What if you do not spend it? Hidden versus visible contingencies? © Francis Hartman Holdings Ltd.

Organizing Contingency – 2
How much contingency is reasonable? Who holds and controls it? Who should be involved in Contingency setting? Process includes risk assessment Process requires Sponsor participation and buy-in © Francis Hartman Holdings Ltd.

Risk Summary Risks are a part of Projects Analysis and Management tools are well documented They are used with increasing frequency Risk managed well plays a large part in project success NOTES: _______________________________________________________________ © Francis Hartman Holdings Ltd.

Planning for Reality What we have: Schedule (3-D, Gantt, CPM) Scope (SBS, specifications, Key Results) Budget (Costs, resources, effort) Risks (+contingencies, mitigation and revised plans) What we need: Real resource Availability Real dates and times Input Deliverables Output Deliverables Other Constraints © Francis Hartman Holdings Ltd.

Real Calendar and Resources
Raw Schedule Revised Schedule ? Any other constraints in this space? Summer Holiday Season Winter Christmas Break © Francis Hartman Holdings Ltd.

Input and Output Deliverables
Raw Schedule Revised Schedule ? Any other constraints in this space? Summer Holiday Season Winter Christmas Break © Francis Hartman Holdings Ltd.

Other Constraints and Realities
Financing Approvals Regulatory requirements Competing Projects Supply and Demand Risks … and lots more! © Francis Hartman Holdings Ltd.

Setting Targets Reduce range to single point for management Understand what working with Perfect means Likely is unlikely (L=Lie?) Target = Team Commitment. © Francis Hartman Holdings Ltd.

Resources - the CRITICAL Reality
In house or contracted? Who controls the resources? Committing to a plan Work Density, Availability Learning curves Expectations for performance: Trade-off: cost, time, deliverable performance Expectations of team members © Francis Hartman Holdings Ltd.

What to Measure? What is important on our project? What CAN you measure? Why measure it? What does that measure tell you? Is there value in that measure? © Francis Hartman Holdings Ltd.

Measurement suggestions
Deliverables delivered When delivered Effort used in delivery Value for effort/money © Francis Hartman Holdings Ltd.

Charter Checklist SBS 3-D Schedule, incl. OffRamps and CheckPoints 3 Questions Priority Triangle Risk Matrix, Schedule Plan for first weeks Contracting Strategy Success Metrics Agreed Team Commitment Cross-check of Charter Components Targets for T,P & C Answer 1+14 Questions Know what we Don’t Know! Sign-on by Stakeholders © Francis Hartman Holdings Ltd.

Final Charter Characteristics
Reflect realities of what you know Cross-checked for consistency Sign-on by stakeholders Start on detail planning Target-based, reflecting ownership and challenge Start on delivery . . . © Francis Hartman Holdings Ltd.

© SMART Management Inc. and Francis Hartman Holdings Ltd. 2001 SMART PM™ Charter... S.B.S 3 Questions 3-D Schedule Won,Done, Who Mission Decision KRs (Stakeholders) Process P/L/O/T Process P/L/O/T Process P/L/O/T Process P/L/O/T Priority Triangle Deliverable Deliverables T,P,$ Exclusions Needs Needs Needs Needs RACI+ Chart Risk Management GPS O Impact O Probability O Controllability O Monte Carlo Simulation O Register O Mitigation Plan O Contingency Mgt. Project Details t $ O Deliverable O Gantt Chart O People/Roles O Plus...

Project GPS Now Q T x Performance Indicator Calendar $ Expenditure Performance Indicator Elapsed Time R1 R2 R3 R4 © Francis Hartman Holdings Ltd.

Starting to use RACI+ Charts
Deciding what you need on a RACI+ Setting up your Spreadsheet Getting Started on Weekly Plans Updating the RACI+ Chart Weekly Checklists © Francis Hartman Holdings Ltd.

Setting up your RACI+ Spreadsheet - 1

Exercise Getting Started on Weekly Plans

Project GPS Schedule – 2 Now Q T x Performance Indicator Calendar $ Expenditure Performance Indicator Elapsed Time R1 R2 R3 R4 © Francis Hartman Holdings Ltd.

Schedule – 3 Plan Complete 150 Project Approved 60 30 40 20 Tech Specs. 410 40 60 85 100 75 50 Σ 60 70 100 105 100 75 50 FTE 1.5 1.75 2.5 2.6 2.5 1.75 1.25 Available FTE 1.5 1.5 2.5 2.5 2.5 2.0 Actual FTE 1.5 1.5 © Francis Hartman Holdings Ltd.

Exercise Take a four to six week period from your project's plan.
Work out what the FTE requirements are for that period. Are those resources available? Are they committed to delivering what is expected? © Francis Hartman Holdings Ltd.

Cost - 1 Similar principles to Time for Elapsed Time and Effort Add granularity Consider tracking by cost codes Cost codes same as Deliverables Codes? (good if they are!) Separate Effort and Expenditures © Francis Hartman Holdings Ltd.

Project GPS Cost - 2 Now Q T x Performance Indicator Calendar $ Expenditure Performance Indicator Elapsed Time R1 R2 R3 R4 © Francis Hartman Holdings Ltd.

Quality Link to Key Results Deliverables Specs.: Review as they become live Engage vendor(s) in establishing standards Plan to avoid rejection of any product If you expect problems allow for recycling in the plan! © Francis Hartman Holdings Ltd.

Progress Meetings - agenda
What has been done - 5 minutes What was missed - 5 to 15 minutes What was impacted, and how do we fix it - up to 20 minutes What do we deliver next week - 2 minutes Problems? up to 15 minutes Review to end of project - up to 10 minutes TOTAL TIME - no more than one hour once we know what we are doing NOTES:__________________________________________________ _________________________________________________________ © Francis Hartman Holdings Ltd.

The Progress trick Communicate informally Listen Assess Change impacts carefully Focus on deliverables Have Fun Hand over products Plan to finish! NOTES:__________________________________________________ _________________________________________________________ © Francis Hartman Holdings Ltd.

Essentials of effective project control
Start with a Yardstick (project baseline) Measure consistently Control requires a closed loop Delegation keeps process clean and simple Optimize paperwork and reporting Manage by exception Avoid micro-management Communicate (both ways) Be positive (attitude is contagious!) NOTES:________________________________________________________ _______________________________________________________________ © Francis Hartman Holdings Ltd.

Things to measure Cost - compare to budget Work hours - compare with expected productivity Schedule - compare to plans Quality - measure against specifications Scope - measure against original or modified deliverables NOTES:________________________________________________________ _______________________________________________________________ © Francis Hartman Holdings Ltd.

Proactive Earned Value
Used to determine if you will have enough resources next period Compare Budget to be spent with available resources: Budget for next week’s deliverables = 200 hrs Resources = 2 full time and 3part time (50%) personnel. Can the work be delivered in a 40-hr week? © Francis Hartman Holdings Ltd.

Planning for Completion
Like a mini-project: own Plan Consider motivation of the team Set clear date and drive to it Understand where compromises may exist Manage Expectations Keep stakeholders engaged. © Francis Hartman Holdings Ltd.

Course Closure What did you learn Issues and advice on the course? What can you use tomorrow? More emphasis/next course? Less Emphasis? Good luck on your next project! © Francis Hartman Holdings Ltd.

Released in April 2000 PEOPLE SAY: A better way It is so simple I am using it already PEOPLE KNOW: SMART Saved us over $60 million on the first project …expect over 25% cost and time reduction Savings are only the beginning… Canadian Best Seller 2000, 2001, 2002 © Francis Hartman Holdings Ltd.

NEW in 2003:Better Contracting
About 15% of capital investment is wasted Trust but Verify Managing relationships saves $ What is in the markups? © Francis Hartman Holdings Ltd.

Where are we going next? Demographic Challenge Managing Wisdom New Coping Skills Ambiguity Uncertainty Change Innovation Stretch Performance More demands on the Project Manager and the Team…. © Francis Hartman Holdings Ltd.

Beware of Imitations SMART Project Management® SMART Program Management® SMART Management® © Francis Hartman Holdings Ltd.

The End Thank you for staying! Tel: Fax: Quality Enhanced Decisions (QeD) Inc., Calgary, AB Canada. © Francis Hartman Holdings Ltd.

We want to earn your Business
QeD Inc., Street NW Calgary, AB T2N 1Z7 Tel: (403) Fax: (403) Why QED? Quod Erat Demonstrandum: Latin for “It has been proven”. Quite Easily Done! Quality Enhanced Decisions QeD Inc is all about pushing the boundaries of performance © Francis Hartman Holdings Ltd.

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