10 keys to a successful p6.pdf

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COLLABORATE12 OAUG FORUM Microdesk, Inc 2012 1 | P a g e

#10580 - IMPLEMENTATION DEMYSTIFICATION: 10 KEYS TO A SUCCESSFUL P6IMPLEMENTATION

Date: Sunday, April 224:30 pm - 5:30 pm

Location: Banyan E

Product Line: Primavera

Description: Youve identified a need to improve project management processes in your organization, andyouve invested in Oracles Primavera P6 software. Now what? Surveys have shown that 50-70%of projects dont deliver the expected results due to unsuccessful implementations. In thissession, well address the top 10 ways to ensure your implementation is a success. Learn toeffectively resolve pain points, master best practices, and conquer common traps of unsuccessfulprojects.

Objective 1: Uncover your organizations project management pain points and solutionsto address them

Objective 2: Learn how to master project management bes t practices using OraclesPrimavera P6

Objective 3: Discover the top 10 implementation risks of unsuccessful projects and howto avoid them

A White Paper by Elaine Krazer, PMP

Oracle Certified Implementation Specialist

Implementation Demystification:

& 10 Ke s to a Successful P6 Im lementation


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By Elaine Krazer, PMP

Senior Primavera Consultant, Microdesk

P6 Product Lead for the Board of Directors, OAUG OPSIG


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PRIMAVERA EPPM IS JUST A SCHEDULING TOOL, RIGHT?

Not really but that is its roots. This is a misunderstanding of Oracle Primavera P6. To be clear, we must firstunderstand the different versions and the history of the tool. (The following is a personal interpretation of theformal history of the product with personal perspective and in no way represents the view or opinions ofOracle or Primavera regarding their product).

P3 (1994) A stand-alone (installed on personal computer with no additional users having access) solutionmanaging the schedule, some tracking data, and FYI communications about the project. Resources wereavailable for assignment in a CPM schedule and could be leveled off to cr eate a realistically achievableschedule. Costs could be allocated through expenses and resources. To share information, owner wouldexport the file in Primavera format (.xer) to another person who also had P3 on their PC or could export intoa more share-able format such as MS Excel and send the file.

P3 v4 A shared version of P3 with multiple users accessing the same database for all purposes above in aclient-database (server) model.

P5 A shared version of v4 , but added a web component called myPrimavera offering ResourcePlanning, allocation histograms for capacity analysis, and rates on roles. Many features added hinted at adefinite enterprise -wide road map for the product. But the thick -client is still present and preferred in thisclient-database model.

P6 More focus on myPrimavera the web-based access point with robust resource management,integrated risk qualification, portfolio management basics and other enhanced features. Still a client-database with optional web-accessible approach model. The P6 mantra and naming convention sticks forthe next few versions.

P7 The first web-focused offering with P6 Web Access as a fully functioning Project Managementaddressing most of the PMBOK Knowledge Areas that is user-friendly. Still not as suited to the heavy

scheduler who spends entire day in front of the schedule, but a viable choice for most everyone else on aproject team.


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P8.0 EPPM (Enterprise Project Portfolio Management) Oracles first version since acquiring Primavera

boasted 100% web- based and feature -wise this was true. All features were now in the web-access modeland removed from the still available thick client including all Administration and setup. The additional bells& whistles and more user-friendly interface helps adoption. The technical backend is now a part of theOracle stack of Enterprise offerings including UCM (content management) BI Publisher (now the only way toreport and only using canned reports) and BPM (workflows). So the old, stand-alone way of doing business iswaning and harder to do because of the presentation layer and technical requirements.

P8.1 besides continued enhancements and improvements (YAY!) a new version is also now availableand P3 is no longer sold nor supported. New version is called PROFESSIONAL and is very similar to the oldthick-client which works best with a stand-alone or a few multiple users accessing same database in aclient-database model with no web component. Easy install makes it attractive, but all the benefits of anent erprise system are not realized without the webs features.

P8.2 Optional client is a more old -school version of the thick client (those who grew up with a previousversion are still feeling most at home using this model) now has admin features returned. Web server andtechnology must still be loaded, but it can now be treated as a stand-alone if you have a big enough PC.The web interface though offers tempting new features and gets easier to use with each version. Theinteraction with BI, Sharepoint, ERP systems, financial systems and other integrations further the possibilitiesfor one-source data and cumulative decision-support data from a 360 degree perspective.

So to answer the question, in summary: No, P6 is not just scheduling it is project and portfoliomanagement. An enterprise system is complex, but the simplicity of P6 is that all benefit is rooted in twothings: 1. A well-planned setup; and 2. Good, clean scheduling. The benefits are derived from the schedulewhich is the attraction for all u sers who have grown up using Primavera. With the schedule as thefoundation, all other benefits are derived from there with little or no further action. Put in a good schedulewith clean data, and then keep it clean with good inputs and updates.


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THE IMPLEMENTATION PROJECT

Delivery of a good PM system is a project itself and must be well planned and executed as a project.

Since surveys have proven 50-70% (1) of projects dont deliver expectations, then either the expectationsor the delivery are to blame. Plan the implementation, and then deliver the PM system keeping in themind the information contained in this paper.

THE MIST OF MYTHS SURROUNDING IMPLEMENTATIONS (INDUSTRY AGNOSTIC)

1. P6 is a complex system; therefore the implementation is also complex (not true!)2. P6 is just like installing any other software (not true!)3. My two key users are the only ones to involve in the implementation (not true!)4. Small amount of licenses means less planning and implementation effort (not true!)5. The new system does not change the way I manage projects (not true!)6. P6 is just a scheduling tool (not true!)7. The vendor should not lead the implementation effort (not true!)8. P6 should be integrated with lots of other systems (not true!)9. P6 is useable the day it is installed (not true!)10. Because P6 contains so many features, we should use every one of them (not true!)

While each of these can be argued in some specific instances, they are treated as black-and-white truthsrather than risky considerations. With appropriate attention to these foibles, a good plan may be createdand executed to avoid cost overruns and frustrations. The goal of any implementation project is to meetobjectives and obtain return-on-investment.


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CASE STUDY PROOF : A multi-industry worldwide engineering firm implemented P6v8 in multiple divisions

with an edict to then bring all divisions into a single system for reporting and data management. Eachdivision represented a different industry with industry-specific information, processes, goals and roles. To addcomplexity the projects to be imported were often only managed by the division and the actual work wasbeing done by multiple subcontractors. The implementation was to use most of the features in the tool forat least one group or another without a phased approach.

The vendor chosen for the implementation implemented each division with a repeated process andprogressively elaborated the configuration and documentation with each new additional group of users.The same vendor was used for all groups with co-PMs--a client PM and the vendor PM to ensureconsistency. Knowledge transfer was a key focus. Initially, the client PM was a strong factor and insistent tokeep each effort short in duration and long in documentation with little understanding of the tool and many

assumptions about the methodology which were nave. Requirements were not clearly communicated andso measurement of success was (of course) fuzzy.

At a turning point, the vendor was seen as a trusted knowledgeable partner and the methodology washonored and followed. The results were shorter durations for each additional group and an overallknowledge transfer through repetition and documentation. Industry differences were the only anomalies toaddress as the effort progressed. The P6 tool is easily configured, but knowing when and why to use eachfeature is something best left to the experts who coach you through to an appropriately structured system.


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MYTH TWO: P6 is just like installing any other PM software (not true!)

Depending on the product, modules and version the technical environment required to support Primaveraranges from fairly easy wizard-driven effort to a three-tiered server with optional clustering, load balancingand failover. However, even the simplest arrangement requires a basic understanding of a client-serverdatabase model and the key technical statements involved. Further each installation would need toconsider security access and appropriate choices in the wizard. Some models have a choice of databases(SQL or Oracle) which install like most databases; similarly, the operating system, components are alsotypical of other web-based enterprise systems. Later versions are modular with P6 as the foundation andancillary components are separate installations such as reporting is now done through the BI Publishercomponent, and UCM manages documents. These components makes P6 v8x a more challenging installthan previous versions.

Additionally, Primavera is based on true CPM scheduling which means dates are calculated by the tool bycombining a chain of settings including calendars, relationships, durations, progress, activity type, durationtype, and other settings. The pivot point for all calculations and reporting is the Data Date which representsthe date up-to-which data has been given status. The tool works best when constraints are used rarely andother best practices are prevalent. This means training and PM knowledge should be big players in theimplementation. Again a PM trained Business Analyst is a prized possession.

If the implementation is treated solely as a software install from an IT perspective, a high risk exists that it willnot be adopted and used by the organization.

DEMYSTIFICATION: Installation is according to best practices from technology and implementation is frombest practices in project management.

A contract that constrains or does not give enough time for the vendor to complete this analysis andthen completely act upon the findings will surely end in rework, cost overruns and missed deadlines forthe Primavera Implementation Project. If you hire expertise, then the suggestions from the experts shouldbe followed. Many times a vendors initial bid is undercut to match a poorly estimated budget, but theexpectations and value to the organization are not cut ensuring a more costly and likely failedimplementation. A good vendor wants a happy client and will offer a plan to meet goals discussed anddiscovered during an analysis of current state. That plan should be given full consideration and any cuts

should be accompanied by lowered expectations and higher risks for the organization. Elaine Krazer,Pentri Training, LLC, P6 training manual


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MYTH FIVE: The new system does not change the way I manage projects (not true!)

Primavera touches the core of most organizations and its touch points are throughout the organizationbeyond projects. Finance, procurement, human resources, senior management, strategic planning,production and other systems are all affected. Attention should be paid to the impact the Primaverasystem will have internally at both an organizational level and an individual level.

With more and more businesses becoming projectized the business makes money by doing projects themore important a project management system becomes. At that level of importance and the fact thatOracle Primavera is best used across the entire enterprise; the implementation should be given ampleattention to do it right. It is a myth that your vendor would say that statement to elongate theirengagement and billing only the bad ones say that to themselves. What the good vendors really want isto do is quality work so you will recommend them and trust them with your upgrade and continued needsafter the system is in use and proves its worth the initial investment. Worst event a vendor can experience isbad press. Good vendors understand their continued business (and money making) can only happen ifthey deliver the agreed upon planned value during their initial contract.

Additionally, the internal impact this system has should not be minimized. They way business (projects) getdone does change when the principle tool used to conduct project processes changes. Likely business asusually is redefined whether intentional or not. The very presence of a new software tool ensures changedoes occur. Seems evident, but surprisingly many organizations expect their current system to beunchanged and the new software to simply fix broken pieces of that system. Truthfully, Primavera should not

only add efficiency to the current system but should add value in weak areas while enhancing successfulones. Truly, if the system simply automated what is already in place then the organization continues toexperience the pains of the past with no added value (and a lot of money on licensing wasted). Goodimplementations capitalize on the strengths of the organization, mitigate risks of the current process andadd best practices to increase quality output of the organization.

DEMYSTIFICATION: Enterprise software touches the entire enterprise. Pay appropriate attention and time toimplement Primavera so its impact is positive.

The authority of senior leadership lends the project the power to succeed. That power willundermine the inevitable outcry that new users will have against doing business in a new way, usingnew software. Although unavoidable, organizational change management at least becomes simplifiedwhen leadership loudly calls for adoption. Here is what that support looks like: time and money spent ontraining both new process and new software. Elaine Krazer, PM Network interview


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MYTH SIX: P6 is just a scheduling tool (not true!)

P6 is a comprehensive tool serving as the hub for all Project Management Knowledge Areas as defined inthe PMBOK standard. Communications, documentation, risks, issues, changes, portfolios, scope, costs,quality, human resources, procurement and contracting serve as data points in P6. A phased approach toyour implementation will allow users to step into the tool one step at a time. The danger is that it is treatedsimply as a schedule tool because it will not allow the organization to realize the benefits of having allproject data in one place. With too many sources for project information, there are higher risks for poordata management and duplication of effort by users. Data that exists in two places will only causeques tions such as which is the correct number or the latest number? and how do the tworelate/synch/get updated? or what do we do when they do not match? Often reports that containdata from multiple sources are challenged to mesh the contents so one-to-one comparisons can be done.

The good news is that most of the enterprise benefits in P6 are immediate and automatically derived fromclean schedules that have followed the same set of procedures. So the benefits go beyond scheduling, butthe users dont h ave to go much further than that to reap big benefits.

DEMYSTIFICATION: The schedule is the core of P6 but it is only a part of an enterprise PPM.

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The contract is not the only con straint that road blocks a good implementation. Fear of change, lackof adoption by users, turf and territory protection tactics, failure to see the effect the system has on howbusiness gets done all these constrain the team to produce less-than expected output. It is not just aproject it is the process that achieves your companys financial goals. Why would you hinder that? Put

your best people on it, communicate constantly, be willing to change, hire a good vendor, betransparent to the vendor and accel erate into your best future possible. Elaine Krazer, PMP Prep, PentriTraining, LLC


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MYTH SEVEN: The vendor should not lead the implementation effort (not true!)

Often an organization hires a consultant (P6 expert) then slowly takes control of their actions hoping theyare guiding the consultant to a well-informed end state. Caution: if you do not free the expert to do whatthey do best; you may not get the best result. You pay money to an expert to tell you what you dontknow how to do yourself, al l in hopes of eventually being able to do it yourself. Why then wont you let themdo it? Elaine Krazer, 2005. Surveys of implementation specialists show 35% of the revenue stream for animplementation consultant is from clients who have tried to configure a system for themselves or rework onan implementation that had been done under unreasonable constraints.

Best case scenario is a client PM and core team in an open dialogue about each option in the tool that willmeet requirements and a P6 expert explaining the pro and con of each decision. If a poor decision is madeor does not match with other related requirements, it is the consultants job to warn the team of the impacttheir collective decisions will produce and suggest a better option. Listen to the expert. A trusted consultantwill not steer you wrong they desire a good reference from you at the end of the project which onlycomes from a good system that meets requirements.

DEMYSTIFICATION: If you have spent money to hear an expert, then hear and heed or waste your money.


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MYTH EIGHT: P6 should be immediately integrated with lots of other systems (not true!)

Often an implementation consultant is asked to consider connecting to a financial system, a legacytracking system created in house or some other software in use. Many of these are an eventual goodidea or requirement, but typically they are best solved in other ways. Physical integrations requireplanning and maintenance. Planning needs to identify exactly which data points will travel betweenthe systems to meet requirements and then decide if it is a push, pull or synchronize action. Further adecision needs to be made how often the passing of data takes place and what to do when there is adiscrepancy (which source is authoritative or source of the truth?). Once one end of that integrationgets an upgrade, planning and testing should happen to ensure it wont break the link or diminish thequality of the data passing through the integration link. When a requirement is identified and a firstquestion should be is the requirement to bring in data from another system solely for reporting

purposes? If the answer is yes, then the two systems could both send data to a reporting mechanismsuch as BI Publisher or MS Excel. If a calculation happens after the data transfer consider using P6calculated User Defined Fields (now available in 8.2) via manual entry or using web services.

By choosing a third location a physical integration can be simplified or avoided altogether while stillmeeting reporting requirements.

An additional note, it is a best practice that any integration is a subsequent phase and not a part ofinitial rollout biting off too much will confuse adoption and elongate implementation. The organizationwill learn a lot after living in the tool for a while and be more ready for future requirements.

DEMYSTIFICATION: Keep initial implementation simple for best adoption and take the time to properly

plan and validate any integration requirements.

There had to have been a reason you purchased Primavera or created an implementation team, right? It was done to solve a business problem. To avoid failure, clearly define that problem. Baseline themeasurements and data that indicates that problem exists. Detail and document the pains it wascausing and what a future state would look like. Now, a good implementation team will use thatinformation to build the system to deliver that future state. Not current state, but the desired future state.No baseline? No measurements? No envisioning? That combination ensures failure. Once the system isin use, watch trending and variance using the same measurements. Then create new measures basedon the efficiencies of the new system. Now you see the benefits of implementing Primavera and thereare alway s benefits! Elaine Krazer, Pentri Training, LLC

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MYTH NINE: P6 is useable the day it is installed (not true!)

Buying enterprise-class software such as P6 means that a configuration effort is required to ensure settings

and options in the tool are supportive of desired end state system and its outputs. Since P6 is not only anenterprise class tool, it is also scalable and feature rich. Enterprise class means gathering requirements at anenterprise level as well as from user groups. Scalable means there are features available to all projects, butbased on project size and PM maturity of the organization not all are applicable. Feature rich means anorganization should define which features will be implemented first and which ones should be added insubsequent phases of the system deployment so users are not overwhelmed and training is focused andapplicable (practical). P6 global system settings are easy to use and change; but they not intuitive tounderstand the impact of using one or another. This is where an implementation specialist will be of valueduring configuration. Additionally, there are no views/layouts, portfolios or dashboards when the tool isturned on. Structures and the dictionaries will determine categorization and data security. Drop down listsmust be defined and created, portfolios must be determined and dashboards created before a user

interface view is determined and groups of users are granted access. Even if your budget allows for only afew days of consulting time, get help setting up the system.

DEMYSTIFICATION: Even experienced Primavera users may need system setup assistance to ensure featuresare aligned with desired state of the P6 system.

Hosting pr ovides an excellent way to ensure a system is capable, ever-ready and updated with cleanmaintenance. A good provider should negotiate a Service Level Agreement that includes upgrades,up-time measures and a sound technical maintenance/change management po licy that won tinterfere with your business hours. Check out their credentials and hire one that is responsive, has fastprocessing, 99%+ availability ratings for less than $1500 a month cheaper than hiring IT personnel. Elaine Krazer, Nextel Communications

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MYTH TEN: Because P6 contains so many features, we should use every one of them (not true!)

The best implementations are focused on producing a system that not only matches current PM processfor an organization but addresses the primary concern for which the Primavera system was purchased.A subsequent phase could add additional components or deeper use of major features. For example acompany whose background has been to create schedules without resource loading or without costloading should have phase one of an implementation focus on schedule creation. Then add resourcesand costs. If the pain-point was a need to comply with a mandate for schedule submission or to solveresource management issues; then that should be added in an early phase. But every caution shouldbe taken to keep an implementation timely, efficient, result-oriented, focused, and deliverable withinthe timeframe allotted. This keeps training at its best, too--adult-centered training should be focused,and immediately applicable to the student. Throw too much change at an organization all at once,

and the organization will defend itself with reasons not to accept all the changes. Human changemanagement can be a tricky effort.

DEMYSTIFICATION: Move into the Primavera tool in focused phases to ensure adoption and then maturethe system as your organization matures in its use.

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Begin with the End in Mind (3) . Period. If your organization has a strategic plan, then projects should bethe tactical plan to reach strategic goals. If you cannot start a project kickoff meeting with the words,we are here today to take one more step toward strategic goal number x for our company, thenyou are doing the wrong project. Now, a vague strategic plan can also be the problem; but there are

few problems bigger than spending money on a project when the main focus of your company is inanother direction. The project will b e deemed a failure even if it succeeds. Elaine Krazer, Pentri

Associates, LLC newspaper interview


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THE TOP TEN!

If you dig into Primavera Implementation projects, poor results are rooted in these 10 implementation mistakes: (Rankedin order of impact with number 1 having highest impact)

1. Project is Handled as an IT (software Install) Project Rather than a Business Transformation Project,2. Lack of a Dedicated Team Including Senior Management Support,3. Mismatched Implementation Partner (Vendor) and/or Faulty Contract,4. Inadequate Experience or Training in PM Best Practices and/or an Unwillingness to Adopt Them5. Disconnect Between Strategic Plan and the Project Office or Project Selection Process,6. A Constrained Implementation team ,

7. An Unclear End-Game and Forgetting the Pain the Implementation Strives to Ease,8. An Unprepared IT Department and/or Technical Environment,9. Undocumented, Unpracticed or Absent Project Management Processes,10. Big bang Change Management

When the above 10 risks are fully mitigated, or are eliminated altogether; Primavera implementations are given the bestpossible environment in which to thrive. Each listed problem is easily found in organizations regardless of industry. Eachone presents opportunity for expensive rework, non-value added bureaucracy, poor decision making data, and lack ofadoption.

In other words, you will waste time and money--quickly. Needlessly.

Any of the above can be easily eliminated as a factor with proper planning and knowledge. It is that combination thatprevents organizations from purchasing Primavera software and installing it for good use without a good partner.Enterprise software has evolved too far from the commercial-off-the-shelf solution where each person interpreted theprocedures for themselves and where each person could add or delete information according to their preferences.Enterprise project management systems are on a larger scale and have organization-wide touch-points. Which means theimplementation is far-reaching, complex, and must be well-p lanned. If you add strategic planning to the mix, its icing onthe cake. Krazer 2004, PMI Amarillo


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THE CONFERENCE BOARD SURVEY (2001)

SURVEY SCOPE

That survey interviewed executives at 117 companies that attempted ERP implementations

KEY FINDINGS

34 % were very satisfied.

58 % were somewhat satisfied,

8 % were unhappy with what they got.

40 % of the projects failed to achieve their business case within one year of going live

The companies that did achieve benefits said that achievement took six months longer than expected.

Implementation costs were found to average 25 % over budget,

Supports costs were underestimated for the year following implementation by an average of 20 %.

THE OASIG STUDY (1995)

This study has been undertaken under the auspices of OASIG , a Special Interest Group in the UK concernedwith the Organizational Aspects of Information Technology.

SCOPE OF THE STUDY

Information was collected in 1995 in the United Kingdom from a sample of 45 experts employed primarily byUniversities or Consultancies. On average they have each over 20 years personal experience representing a

cumulative knowledge base of over 900 years. Their drew their opinion from a sample of approximately14,000 user organizations. 31 of these interviewees (69%) include consultancy work as a major componentof their work, and 27 (60%) include research; many do both. Their professional areas of expertise cover thedomains of management, business, and social science. A small number of those interviewed have abackground in engineering. Data was collected by interviewing researchers and consultants using a semi-structured interview schedule. Some preparation was required by them. Each interview lasted, on average,around 1.5 to 2 hours, though some lasted considerably longer.


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KEY FINDINGS

The IT project success rate quoted revolves around 20-30% based on its most optimistic interviews. Bottomline, at best, 7 out of 10 IT projects fail in some respect.

The main reasons why systems fail to meet their objectives were identified as:

Lack of attention to the human and organizational aspects of IT.

Poor project management.

Poor articulation of user requirements.

Inadequate attention to business needs and goals.

Failure to involve users appropriately.

KPMG 2005

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