Project Management - Eurochambres Academy

Project ManagementEUROCHAMBERS27th June 2002Marc Baetens, , PMPm.baetensbaetens@yucom.be

Project Management• Agenda• Introduction into PM Principles• Scope Management• Time Management• Performance Reporting• Change Control• Risk Management• Project ClosureEuroChambers – Munich 2002Project Management

a Project« A Project is a temporaryendeavour undertaken to create aunique product or service »© PMI 1996EuroChambers – Munich 2002Project Management

Why Projects• Different then Operations• Better control• Specific, unique goals• TimingEuroChambers – Munich 2002Project Management

Definition of ProjectManagement• Project Management is theapplication of knowledge, skills,tools, and techniques to projectactivities in order to meet projectrequirements.EuroChambers – Munich 2002Project Management

Art of Project Management• PM means balancing competing demandsamong:• Scope, time, cost, resources, risks,communication and quality• Stakeholders with differing needs andexpectations• Identified requirements (needs) andunidentified requirements (expectations)EuroChambers – Munich 2002Project Management

Why Projects Fail ? Why Projects Overrun ?• Unclear objectives andrequirements• Lack of businesscommitment• Business requirementschanging• Poor communication• Poor quality steeringgroup• Poor project planning• Company and projectpoliticsEuroChambers – Munich 2002• Poorly defined businessobjectives and scope• Lack of estimating techniques• Insufficiently detailed WBS• No business ownership• Inadequate status report• No change control system• Uncontrolled 3rd partiesProject ManagementKPMG Study, 1989The Computer Bulletin, January 2000, pp24 - 26

Problems in understandingeach other?As proposed by the projectsponsorAs specified in the projectrequestAs designed by the senioranalystAs produced by theprogrammersEuroChambers – Munich 2002As installed at the user’s siteProject ManagementWhat the user wanted

Goal conflicts ??Project ManagerPeople & skillsToolsBudgetStable technologyAdequate time & effortWell defined requirementsCustomerRelease timeMeets requirementsFlexible for changesLow costImproved efficiencyManagementMarket shareROIOthersPublicPressEuroChambers – Munich 2002Project Management

Project Management Competence? ! #Staff DevelopmentDecisionincluding hiringmaking TeambuildingRelationshipCommunication Management Influencingthe organisationFlexibilityCreativity &InnovationProblemSolvingSkillsMentoringSkillsNegotiatingSkillsWritingSkillsLeadershipPresentationSkillsQualityManagementFacilitatingSkillsFinance &ProfitabilitySkillsInitiativeMeetingSkillsLeveragingMotivationRelationshipManagementCommunicationLeadershipFlexibilityFinanceNegotiatingEuroChambers – Munich 2002Project Management

Basic Concepts of a ProjectAreasProcessesEuroChambers – Munich 2002Project Management

Project Management areasScope management«Scope definition, changes managementand control »Communicationand and StakeholdersmanagementTime management«Identification andinvolvement of mainstakeholders, planning,execution and monitoringof communication,… »Integration« Coordination of thevarious elements of theproject management(elaboration of a projectplan,…)« Definition, monitoringand control of theproject schedule »« Evaluation, monitoringand control of the projectcost »Risks management« Identification and monitoringof risks (impacts, probabilities,appropriate mitigation and backupresponses) »« Definition, monitoring andmanagement of project humanand other resources (resourcesEuroChambers – Munich 2002requirement, integration of theteam members…)»ResourcesmanagementProject ManagementQuality managementCosts management« Definition, monitoringand control of processesaiming at making sure thatthe project will meet theneeds »

Project Management ProcessesInitiatingProcessesPlanningProcessesControllingProcessesExecutingProcessesClosingProcessesEuroChambers – Munich 2002Project Management

Scope Management

Scope Management• Scope• The sum of products and services to beprovided as a result of the project• Scope Management• Define the scope• Control the scopeEuroChambers – Munich 2002Project Management

Scope Management• Process• Initiation (Project Charter)• Scope Planning (Scope ManagementPlan)• Scope Definition (WBS)• Scope Verification (Acceptance)• Scope Change Control (ChangeRequests)EuroChambers – Munich 2002Project Management

Scope Management- Scope Planning- Scope DefinitionInitiationInitiatingProcessesPlanningProcessesControllingProcessesExecutingProcessesScope VerificationClosingProcessesScope Change ControlEuroChambers – Munich 2002Project Management

Scope Management• Initiation• Create Project Charter• A Project Charter is a document thatformally recognizes the existence of aproject.• Define Business Need and ProductDescription• Assign Project Manager• Define Project ConstraintsEuroChambers – Munich 2002Project Management

Scope Management• Scope Planning• Develop a written scope statement• Elaborate Scope (brainstorming, expertjudgement, benefit/cost analysis,..)EuroChambers – Munich 2002Project Management

Scope Management• Scope Definition• Subdivide the major project deliverablesinto smaller, more manageablecomponents in order to:• Improve accuracy of Cost, Time andResource est.• Define a baseline for PerformanceManagement• Facilitate clear responsibility assignments• Results in WBSEuroChambers – Munich 2002Project Management

WBS ExampleOffice TowerTower ConstructionFurniturePeopleTerreinOffice FurnitureSecurity infraManagementCAOPurchase AgreementCoffee MachineGovernementDesksPermissionConstructionRoofGround worksConcrete worksElectricityEuroChambers – Munich 2002Project Management

Scope Management• Scope Verification• Scope Change ControlEuroChambers – Munich 2002Project Management

Time Management

Time Management• Ensure timely completion of theprojectEuroChambers – Munich 2002Project Management

Time Management• Process• Activity Definition• Activity Sequencing• Activity Duration Estimating• Schedule Development• Schedule ControlEuroChambers – Munich 2002Project Management

Time ManagementInitiatingProcessesPlanningProcesses- Activity Definition- Activity Sequencing- Activity Duration Estimating- Schedule DevelopmentControllingProcessesExecutingProcessesSchedule ControlClosingProcessesEuroChambers – Munich 2002Project Management

Time Management• Activity Definition• Use WBS to define activities• Activity Sequencing• Identify interactivity dependencies• Activity Duration Estimating• Asses the number of work units neededper activity• Schedule DevelopmentEuroChambers – Munich 2002Project Management

Time Management• CaseEuroChambers – Munich 2002Project Management

Planning ProcessInitiatingProcessesPlanningProcessesControllingProcessesExecutingProcessesClosingProcessesEuroChambers – Munich 2002Project Management

Planning ProcessTime managementScope managementSchedule managementIntegrationCosts managementResourcesmanagementEuroChambers – Munich 2002Project Management

Scope-WBSOffice TowerTower ConstructionFurniturePeopleTerreinOffice FurnitureSecurity infraManagementCAOPurchase AgreementCoffee MachineGovernementDesksPermissionConstructionRoofGround worksConcrete worksElectricityEuroChambers – Munich 2002Project Management

Resource-OBSSteering ComitteeProgram Manager (IT / Business)Stakeholders representativesProject LeaderProject LeaderProject OfficerProject InstancesTeam leaderTeam leaderTeam leaderTeam memberTeam memberTeam memberTeam memberTeam memberTeam memberEuroChambers – Munich 2002Project Management

Example of RAMOBSWBSA A AA IR,SI,RIPSR,SSSR,SEuroChambers – Munich 2002P = ParticipantA = AccountableR = Review requiredI = Input requiredS = Sign-off requiredProject Management

Time-ScheduleEuroChambers – Munich 2002Project Management

Project Management• Case• WBS• Activities• RAMEuroChambers – Munich 2002Project Management

Performance Reporting

Performance Reporting• Report if the project is on track ornot• Earned Value reporting• ACWP: Actual Cost of Work Performed• BCWP: Budgetted Cost of Work Performed• BCWS: Budgetted Cost of Work ScheduledEuroChambers – Munich 2002Project Management

Performance Reporting• CPi = BCWP / ACWP• SPi = BCWP / BCWSEuroChambers – Munich 2002Project Management

Change Control

Change Control• Change Control• Accepting the reality of changes• Keeping changes under control• The Change Control System• Change Control Procedure andTemplatesEuroChambers – Munich 2002Project Management

Why Do Projects Change?• Change is a fact of life in projects• Why all of this modification?• Most change requests are justified!Industry average requirements changes areof 2% per month elapsedEuroChambers – Munich 2002Project Management

Recognising the Effect of Change onProjects• Define scope clearly throughout all phases ofthe project• Software change is not free and the later, themost expensive• Recognise that almost all scope changesrequire adjustments to the project cost and/orschedule• All requirements and all changes do not havethe same importance, and the same impactEuroChambers – Munich 2002Project Management

Managing ChangesisEuroChambers – Munich 2002Project Management

How to Manage Changes• Changes will happen but• You can limit changes - most of themcan be anticipated or detected bysufficient early analysis• Make the change control systemefficient and committed• Be better at negotiating (mutualmaturity)EuroChambers – Munich 2002Project Management

Risk Management

Risk for AnticipationIf anything can go wrong,It will happen at the worstpossible time and underthe worst possiblecircumstancesEuroChambers – Munich 2002Project Management

Risk Definition• A risk event may affect the project• for the better,then opportunities are positive outcomes• or worsethen threats are negative outcomesEuroChambers – Munich 2002Project Management

Risk Assessment ProcessRiskExposureRiskIdentificationProjectRiskManagementRiskResponseControlRiskResponseDevelopmentEuroChambers – Munich 2002Project Management

Risk Management Procedure• Detect the risk (Role of every team member)• Communicate the risk (Role of every team member)• Quantify the risk (both aspects)• Determine response strategy• Develop mitigation and/or contingency plans• Update Risk Log==> Be Pro-ActiveThis may result in a Change RequestEuroChambers – Munich 2002Project Management

Volume ofrisks identifiedLearning curve in riskmanagementAverage risk mgt experience:You keep many risksHigh risk mgtexperience:You know what aremajor risksLow risk mgt experience:You know aboutproblems and not risksTimeEuroChambers – Munich 2002Project Management

Project Closure

The Administrative ClosureProcess• Verifying and documenting projectresults• Lessons learned (best done duringclosure meeting)… and apply them on next projectEuroChambers – Munich 2002Project Management

EuroChambers – Munich 2002Lessons learned• Successful organisations learn fromtheir experiences with projects. Thisis more likely if the lessons learnedare somehow preserved beyond theend of the project. The objectives ofproject debrief and closure are to:• assess the results of the project againstwhat it was intended to achieve• identify lessons to be learned from theproject and apply them on futureProject Managementprojects

Closing the project with all• Celebrate success with allstakeholders, , in recognisingefforts and contributionsEuroChambers – Munich 2002Project Management

PM 10 Commandments• Anticipate• Track & React• FormalizeExplicitly• NegotiateExplicitly• Balance• Commit• Manage Changes• ManageUncertainty• ManageCommunication• Plan at the earlybeginningEuroChambers – Munich 2002Project Management

Q&A• Any Questions we would havenot answered to?• Any need for clarification ?EuroChambers – Munich 2002Project Management