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5 Keys to Successful Project Management Wayne Brantley, MS. Ed, PMP, ITIL, CPLP, CRP Senior Director of Professional Education Villanova University www.VillanovaU.com 1-800-571-4953

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Page 1: Wayne.brantley

5 Keys to Successful Project Management

Wayne Brantley, MS. Ed, PMP, ITIL, CPLP, CRP Senior Director of Professional Education

Villanova University

www.VillanovaU.com

1-800-571-4953

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Overview

Baseline data Project performance Why projects fail The five keys to project success

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Can you predict the future?

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The future isn't as scary if you know the past

Do you baseline project performance?

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Why do projects fail?

What determines project failure?

What determines project success?

What are the commonalities in successful projects?

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Create Best Practices

Lessons learned databases

Create a Center of Excellence

Develop best practices

Executive buy-in

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The Five Keys to Successful Project Management

1. Obtain Good Requirements

2. Perform Detailed Project Planning

3. Do Risk Management

4. Lead the Project Team

5. Create an Organizational Culture that Supports Project Management

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The Five Keys to Successful Project Management

1. Obtain Good Requirements

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The Five Keys to Successful Project Management

• What do requirements establish in a project?

• What are some signs that thorough requirements were not acquired?

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Improved Requirements Gathering

“How the customer explained it”

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Improved Requirements Gathering

“How the Project Leader understood it”

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Improved Requirements Gathering

“How the Analyst designed it”

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Improved Requirements Gathering

“How the Programmer wrote it”

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Improved Requirements Gathering

“How the Business Consultant described it”

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Improved Requirements Gathering

“How the project was documented”

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Improved Requirements Gathering

“What Operations installed”

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Improved Requirements Gathering

“How the customer was billed”

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Improved Requirements Gathering

“How it was supported”

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Improved Requirements Gathering

“What the customer really needed”

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Obtain Good Requirements Needs analysis – Where do needs arise from?

Market demands Laws Technology evolution Others?

Evolution of a need Emergence – “Change is the generator of

needs” Recognition – Must be a conscious effort Articulation – See what it means to all

stakeholders

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Obtain Good Requirements Articulate the Needs – See what it means to all

stakeholders Step 1 – Ask those that have the need to

define it as clearly as possible Step 2 – Ask a full set of questions about

the need Step 3 – Carry out whatever research is

necessary to enable you to understand the need better

Step 4 – Formulate the need as best as you can

Step 5 – Have customer/stakeholder review, and revise accordingly

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Obtain Good Requirements How do you obtain good requirements?

1. Take time to do it2. Ask the right people the right questions3. Draw a picture4. Build a model5. Build a little6. Check and re-check7. Sign off

C = Cover

Y = Your

A = Activities

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The Five Keys to Successful Project Management

2. Perform Detailed Project Planning

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Detailed Project Planning

Project initiation - project planning handoff

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Detailed Project Planning What is done in planning?

Develop the project management plan Requirements Scope WBS Schedule Estimate durations Estimate costs Quality Human resources Communications Risk management Procurement

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Detailed Project Planning Documentation that is developed when we

started Statement of Work Contracts Project requirements documents Project Charter

When is the project manager assigned?

When should the PM be assigned?

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Detailed Project Planning

• The WBS

• Project scope and the WBS

• The WBS and the work

• The WBS and project management

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Detailed Project Planning

• Uses of the WBS– Planning– Estimating

• Schedules• Budgets• Resources

– Change Control– Project Control

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Detailed Project Planning

Develop a schedule Durations Dependencies Constraints Resource availability

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Detailed Project Planning Get good estimates Know how good

+/- some variance Order of Magnitude (also known as a SWAG)

+75/-25% Budget Estimate

+25/-10% Definitive Estimate

+10/-5% Think of optimistic, most

likely, and pessimistic PERT = O + 4 (ML) + P / 6 Don’t pad Don’t be the martyr

-25% +75% -10% +25%

-5% +10%

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Detailed Project Planning

Develop duration estimates Where do your estimates come from? Who has the most valid estimate? Develop estimating techniques

PERT estimates = Optimistic + 4 (Most Likely) + Pessimistic / 6 EX: O = 3 days

ML = 5 days P = 9 days

• Answer = 5.33 days

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The Five Keys to Successful Project Management

3. Do Risk Management

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Do Risk Management

Project team member number 1 – Murphy Risk management planning – Do it! Identifying risk Evaluating risks Contingency planning Continuous risk management

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Who is Murphy?

• He shows up to every project• He is on your team• He can be the difference between a

successful and a failed project• Murphy’s Law

– “If something can go wrong, it will”

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36This is Murphy’s Shadow

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Risk Management Planning Risk Planning – How much Risk Management

do you apply to your project? $500k - $5M - $500M - $5B project differences 1 month – 6 month – 1 year – 2 year – 5 year

project differences 2 person – 6 person – 12 person – 20 person

project differences Your project – boss’s project – CEO’s project

differences Life or death project differences

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Do Risk Management

Risk Identification Any possible risk should be identified Do not exclude even the ridiculous Use all stakeholders

Techniques used to identify risks Brainstorming Nominal Group Technique Delphi Techniques

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Risk Management Identification• Techniques used to identify risks

– Brainstorming• Open discussion• No discussion on discussion• Comfortable environment• Use note takers• Get all to participate

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Risk Management Identification• Techniques used to identify risks

– Expert Interviews• Identify knowledgeable resources inside the

company

• Identify knowledgeable resources outside the company

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Risk Management Identification• Techniques used to identify risks

– Delphi Techniques• Use experts anonymously• Get their response• Iteratively and anonymously feed back to them• Get them to collaborate without them knowing

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Risk Grid

IMPACT

LOW PROBABILITY

4

MED PROBABILITY

2

PROBABILITY

L M H

3

H

M

L

4

MED IMPACTLOW IMPACT

LOW PROBABILITY

HIGH IMPACT

LOW PROBABILITY

MED PROBABILITY

4

MED IMPACT

MED PROBABILITY

2

LOW IMPACT HIGH IMPACT

LOW IMPACT

HIGH PROBABILITY

3

MED IMPACT

HIGH PROBABILITY

2

HIGH IMPACT

HIGH PROBABILITY

1

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RISK ACTION

1 = AVOID

2 = MITIGATE

3 = ACKNOWLEDGE

4 = ACCEPT

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PIE Method All risks have an Event, a Probability, and an Impact An Event is the Risk that we identify Probability is the likelihood that it can occur Impact is the amount that it would cost us E = P x I Example: Risk 1 has a 70% probability and a $50,000 impact

Risk 2 has a 40% probability and a $150,000 impact Risk 3 has a 20% probability and a $250,000 impact

Which risk would be your first concern?

= $35k= $60k= $50k

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Risk Management Identification• Top Project Risks (Student Response)

– Over commitment of resources – Stakeholder involvement– Incomplete Identification of risks – Contingency planning not done– SMART Goals (not used very often

anymore)

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Risk Management Identification• Top Project Risks (Student Response)

– Command change out, so project no longer has priority

– Higher directives changed negating the need for the product, and thus the project

– Schedule change, forcing personnel to sea earlier than expected, thus dwindling down team members

– Loss of funding, due to repair requirements elsewhere

– Unexpected Loss of personnel/team members

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Risk Management Identification• Top Project Risks (Student Response)

– Missing deliverables from customer– Missing deliverables from project teams– Resources not available when needed– Miscommunications– Murphy (he's a stalker) - unforeseen risk

that materializes at the worst time

Email me your top risks at [email protected]

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The Five Keys to Successful Project Management

4. Lead the Project Team

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Leading the Project Team Development

Project manager or project leader People Teams Personalities Skills

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Leading the Project Team Development

ChallengesGeographical locationsCultural differences Language differences

SpokenTechnical

Organization alignment

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Situational Leadership Ken Blanchard identified different leadership styles based on:

The situation Matching your leadership style to the developmental level of

the worker

Leadership styles are based on directive and supportive behaviors Leadership styles are; Directive, Coaching, Supportive, and

Delegating

The worker’s developmental level is based on competence and commitment behaviors

Worker’s developmental levels are; Enthusiastic Beginner, Disillusioned Learner, Reluctant Contributor, Peak Performer

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Situational Leadership

Supportive

Directive

Coaching

Delegating

D I R E C T I V E

SUPPORTIVE

HL

H

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Situational Leadership

DisillusionedLearner

EnthusiasticBeginner

PeakPerformer

ReluctantContributor

Competence

Commitment

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Situational Leadership

Coaching =Disillusioned

Learner

Directive =Enthusiastic

Beginner

Delegating =Peak

Performer

Supportive =Reluctant

Contributor

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The Project Sandbox –“Can’t we all just get along?”

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The Project Sandbox

Sales

Engineering

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Top 10 Ways to Motivate Today’s Employees

1. Provide personal thanks

2. Make times for employees

3. Provide specific feedback

4. Create an open environment

5. Provide information

6. Involve employees

7. Reward high performers

8. Develop a sense of ownership

9. Give chances to grow and learn

10. Celebrate successes

Bob Nelson; Motivating Today’s Employees, 1996

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The Five Keys to Successful Project Management

5. Create an Organizational Culture that Supports Project Management

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An Organizational Culture that Supports Project Management

How do you get an organization to support project management?

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An Organizational Culture that Supports Project Management

Project Management Maturity Models Project management is free! ROI for Project Management

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Project Management Maturity ModelsWhy are the needed?

An Organizational Culture that Supports Project Management

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Maturity ModelsA place to startCommon languageCommon methodologyBest practicesContinuous improvement

An Organizational Culture that Supports Project Management

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Maturity Models Capability Maturity Models (CMM)Software Engineering Institute (SEI)Carnegie Mellon University

Additional Project Management Maturity Model

An Organizational Culture that Supports Project Management

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CMM Business Benefits

• Reduction in system integration and test time

• Extend SW-CMM benefits to the total project

• Leverage previous process improvement investments

• Increased focus and consistency in:– Requirements development and

management– System design and development– System integration– Risk Management

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CMM Benefits• Improved schedule and budget predictability

• Improved cycle time

• Increased productivity• Improved quality• Increased customer satisfaction

• Improved employee morale

• Increased return on investment

• Decreased cost of quality

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Maturity Models CMMI – SEI/Carnegie Mellon

Level 1 – Performed Process unpredictable, poorly controlled, and reactive

Level 2 – Managed Process characterized for projects and is often reactive

Level 3 – Defined Process characterized for the organization and is proactive

Level 4 – Quantitatively managed Process managed and controlled

Level 5 - Optimizing Focus on continuous process improvement

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Project Management Maturity Models

Harold Kerzner’s Project Management Maturity Model

Level 1 – Common Language

Level 2 – Common Processes

Level 3 – Singular Methodology

Level 4 – Benchmarking

Level 5 – Continuous ImprovementContin

uous

Improvement

Basic

Knowledge

Process

Definition

Process

Control

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Project Management Maturity Models

Project Management Maturity Model (PMMM) –

J. Kent Crawford, 2002 Level 1 – Initial process

Ad hoc Management awareness

Level 2 – Structure Process and Standards Basic processes Management support Experts and generic tools Project centric

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Project Management Maturity Models

Project Management Maturity Model (PMMM) –

J. Kent Crawford, 2002 Level 3 – Organizational Standards and Institutionalized

Process Standardized processes Repeatable processes Actual data collected Industry standards or organizational specifics Organizational focus

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Project Management Maturity Models

Project Management Maturity Model (PMMM) –

J. Kent Crawford, 2002 Level 4 – Managed Process

Processes integrated with corporate processes Management mandates Project performance analyzed Organization specifics on estimates Data used

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Project Management Maturity Models

Project Management Maturity Model (PMMM) –

J. Kent Crawford, 2002 Level 5 – Optimizing processes

Project effectiveness Project efficiency Project performance improvement Continuous improvement

Best Practices

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Project Management Maturity Models

PMI’s Organizational Project Management Maturity Model (OPM3™) Standardizing Measuring Controlling Continuously improving

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PMI OPM3 Benefits

• Advance organization’s goals through the use of PM• Establishes organizational best practices for PM• Allows an organization to identify where it needs to

improve• Identifies priorities for improving and helps with

planning

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CMMI Kerzner Crawford PMI

Performed CommonLanguage

Initial Process

Standardizing

Managed Common Process

StructureProcess and Standards

Defined SingularMethodology

Organizational Standardsand Institutionalized process

Measuring

QuantitativelyManaged

Benchmarking Managed Processes

Controlling

Optimizing ContinuousImprovement

OptimizingProcesses

Continuously Improving

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Project Management is Free!

What is the cost of project management?

What is the benefit of project management?

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ROI of Project Management

What would be the costs?

What benefits would we see?

An Organizational Culture that Supports Project Management

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ROI Process – Jack Phillips methodology (www.roiinstitute.net) Determines the return you get on your investment We have to show the value of PM

Executive support Resources Methodology Systems

ROI Methodology 6 levels of value

1. Reaction2. Learning3. Application4. Impact5. ROI6. Intangibles

An Organizational Culture that Supports Project Management

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ROI Process – Jack Phillips methodology (www.roiinstitute.net) 10 steps:

Develop objectives for program evaluation Develop evaluation plans Data collection during program implementation Data collection after program implementation Isolate the effects of the solution Convert data to monetary value Identify intangibles Capture costs Calculate ROI (Net Program Benefits/Program Costs x 100) Develop report and communicate results

An Organizational Culture that Supports Project Management

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Cost of project delay

•Delay from past

project performance = 25% late

•Estimated12 month project = 15 month delivered

•Salary for PMO (8 personnel) = $700,000 annual salary

•Benefit of project = $1M / month

•Benefit of PM = 3 months saved @ $1M

per month = $3M

Example of Converting Data Using Baseline Data

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Summary

Baseline data Project performance Why projects fail The five keys to project success