project management...project management defined • methodical approach to planning and guiding...

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Society of Corporate Compliance and Ethics

6500 Barrie Road, Suite 250, Minneapolis, MN 55435, United States

www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977

Project Management

Joycelyn M. Ray

HCC Insurance Holdings

SCCE- Chicago – 9/08

www.corporatecompliance.org | +1 952 933 4977 or 888 277 4977 2

Workshop Agenda

• Identify reasons that some projects fail.

• Key Definitions

• Analyze the Project Management Cycle

• Questions and Best Practices

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Why Some Projects Fail


Top Reasons Why Some Projects Fail

• Project sponsors not committed to the objective.

• Some projects do not meet the strategic vision of the company.

• Projects are started for the wrong reasons.

• Staffing is a reason for failure

• Incomplete project scope.

• Project plan that is non-existent, out of date, incomplete

or poorly constructed and just not enough time and effort

spent on project planning.

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Top Reasons Why Some Projects Fail

• Project value management is not put into practice to

evaluate baseline cost agreed during baseline transfer against actual costs spent at any given time.

• Insufficient funding, and incorrect budgeting.

• No formal project management methodologies and best

practices aligned to the company's specific needs are used to assist project performance.

• Not all projects are going through a formal signed off

process using a proper post mortem process to

determine lessons learned and to build their own

reference model for future use.


What Is Project Management?What Is Project Management?

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Project Management Defined

• Methodical approach to planning and guiding project

processes from start to finish.

• According to the Project Management Institute, the

processes are guided through five stages: initiation, planning, executing, controlling, and closing.

• Project management can be applied to almost any type of project and is widely used to control the complex

processes of software development projects


Key People in PM Process

• Project Sponsor-

– Executive responsible for the

strategic direction of a project.

– Should have the authority to

define project goals, secure

resources, and resolve

organizational and priority

conflicts.

– Multiple studies indicate a

direct correlation between the

lack of project sponsorship

and project failure.

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Key People

• Project Manager (PM)

– Individual responsible for managing a project.

• Project Team

– full-time and part-time resources assigned to work on the deliverables of project, and achieve the project objectives within the budget, timeline and quality expectations

– Inform the Project Manager of issues, scope changes, risk and quality concerns

– Proactively communicating status and managing expectations


Project Management Key Terms

• Project Objectives

– Project scope expressed in terms of outputs, required resources and

timing.

• Project Budget

– The amount and distribution of money allocated to a project.

• Project Plan

– Guides both project execution and control by documenting planning

assumptions and decisions, facilitating communication among

stakeholders, and documenting approved scope, cost, and schedule.

• Project Schedule

– Planned dates for performing activities and the planned dates for

meeting milestones.

• Project Scope

– Work that must be done to deliver a product with the specified features

and functions.

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Project Management Cycle


Project Management Cycle

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Initiation

• The initiation stage should include a cohesive plan that encompasses the following areas:

– Study analyzing the business needs in measurable goals.

– Review of the current operations.

– Conceptual design of the operation of the final product.

– Equipment requirement.

– Financial analysis of the costs and benefits including a budget.

• Select stake holders, including users, and support personnel for the project.

• Develop project charter including costs, tasks, deliverables, and schedule.


Project Charter Components

• Project Mission

• Project Scope

• Project Objectives

• Project Assumptions

• Project Constraints

• Milestones

• Project Risks

• Stakeholders

• Signature Page Granting

Authority to Proceed

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Planning and Design

• Results of the design stage should include a product design that:

– Satisfies the project sponsor, end user, and business requirements.

– Functions as it was intended.

– Can be produced within quality standards.

– Can be produced within time and budget constraints.


The Triple Constraint

OR, IN OR, IN OR, IN OR, IN PLAINPLAINPLAINPLAINENGLISHENGLISHENGLISHENGLISH

FastFastFastFast CheapCheapCheapCheap

GoodGoodGoodGood

CostCostCostCost

Quality/ScopeQuality/ScopeQuality/ScopeQuality/Scope

TimeTimeTimeTime

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TimeTimeTimeTime CostCostCostCost

Quality/ScopeQuality/ScopeQuality/ScopeQuality/Scope

Constraint Constraint Constraint Constraint

ChangeChangeChangeChange

Shorter Time Higher Cost Reduced Quality or Narrowed

Scope

Reduced Cost More Time Reduced Quality or Narrowed

Scope

Higher Quality or

Increased Scope

More Time Higher Cost

Required Adjustment Alternatives (One or Required Adjustment Alternatives (One or Required Adjustment Alternatives (One or Required Adjustment Alternatives (One or

Combination of Both)Combination of Both)Combination of Both)Combination of Both)

Triple Constraint Trade-Offs


Risk Identification Worksheet

• Enter risk Scenario (how an event could jeopardize project outcome).

• Rate probability, impact, and degree of control using rating scale of:

1 = Low

2 = Medium

3 = High

• Compute risk index using formula:

• If possible, enter financial impact

• Determine actions to take:

– Ignore (do nothing)

– Eliminate (sidestep)

– Manage

• For managed risks, indicate mitigations and contingencies and assign risk manager.

• Log actions taken as they occur.

Scenario:

Probability Impact Control Index

Financial Impact:

Action to be Taken: Ignore Eliminate Manage

Mitigations:

Contingencies:

Manager of This Risk:

Date:

Risk Identification Worksheet

Actions TakenAction:

Probability * Impact

ControlRisk Index =

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Executing

• Involves coordinating people and resources, as well as integrating

and performing the activities of the project in accordance with the

project management plan.

• Deliverables are produced as outputs from the processes performed

as defined in the project management plan.


The Two-Floor Rule

– Every stakeholder should receive information at just the right level of detail for him or her.

– High-level managers won’t want to see all the gory details of the project.

– Your team members need to see a great deal more.

– If your level of reporting is appropriate, and one of your stakeholders steps into the elevator and asks about the status of the project, you should be able to brief him or her by the time the elevator stops two floors away.

Communication Made Simple

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And Don’t Forget…

ConstraintConstraintConstraintConstraint 1111 2222 3333 MeasurementMeasurementMeasurementMeasurement

Time ü

Building must be completed by

October 31 of this year to

accommodate corporate move

Cost üCosts for the project must not

exceed $22.5 Million

Quality/Scope üMust Provided Workspace for 120 call

center staff

++++


Monitoring and Controlling

• Measures ongoing project activities

(where we are);

• Monitors the project variables (cost, effort, ...) against the project management plan and the project performance baseline (where we

should be);

• Identifies corrective actions to properly address issues and risks (How can we get on track again);

• Influences the factors that could circumvent integrated change control so only approved changes are implemented

• Provides feedback between project phases, in order to implement corrective or preventive actions to bring the project into compliance with the project management plan.

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Closing

• Closing phase consists of two

parts:

– Close project: to finalize all activities across all of the process groups to formally close the project or a project phase

– Contract closure: necessary for completing and settling each contract, including the resolution of any open items, and closing each contract applicable to the

project or a project phase.


Post Project Review

POST-PROJECT REVIEW

Project Name: Overall Evaluation of the Project

What was the overall mission of the project? Provide a short description based on your understanding of the project.

All in all would you say that the project was successful? Why or why not?

How close was the project to meeting its scheduled completion date?

How close was the project to being completed within budget?

Did the project meet its final stated objectives? Why or why not?

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Post-Project Review (continued)

Project Management Issues

Did the project have a sponsor? If so, what was his or her role during the project?

What tools and techniques were used in planning and tracking the project?

Did the scope of the project change after the project was underway? If so, what was the overall impact of the change of scope?

How were changes approved?

How was project status communicated during the course of the project?

How were risks managed for the project? Were they identified ahead of time? Did any unforeseen occurrences hinder the progress

of the project?

At the end of the project, was there a formal review of lessons learned or any sort of review similar to the one used here?


Stakeholders Report/Celebration

• Communicate results

• Pinpoint successes

• Propose maintenance/corrective

measures if needed

– share contributing success factors

– present plans for corrective action

• “Sharpen the Saw” for future

project best practices

• Celebrate successes!!!!

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Continuous Improvement

Initiation Definition Planning Implementation Closure

Project

LessonsLearned


Questions?

project management...project management defined • methodical approach to planning and guiding...

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