deltek and psmj resources webcast: the 3 pillars of project management excellence

Building A Strong PM Culture at Your Firm:The 3 Pillars of Project Management Excellence

©2014 Deltek, Inc. and PSMJ Resources, Inc. All Rights Reserved

Today’s Conversation

Why a strong PM culture is critical to the success of your firm

The 3 pillars of PM excellence

1. Building strong and effective PMs

2. Creating an environment that enables them to be successful

3. Instilling accountability across the organization

Summary

Q&A


Today’s Speakers

Bob Stalilonis, CPA, MBASenior Solution ArchitectDeltek

Dave Burstein, P.E.PrincipalPSMJ Resources, Inc.


Why a Strong PM Culture Is Critical to the Success of

Your Firm

There Are Many Ways Your Firm Can Spend Money

There is only one way it can make money – on projects



Strong PMs Are Seller-Manager-Doers

Typical PM

Roles• Plan• Organize • Direct• Control

Additional PM Roles

• Up-sell and cross-sell

• Close new deals• Design/technical

direction• Earn THE profit• Bill the client• Secure payment

Where to Find Time?

PM 10% RULE:


Your Firm’s Future Depends On It

CEOCOO

Principals

Project Managers

Technical and Design Staff


Direct Impacts

Claims Client Retention Employee Retention

Pillar 1: Building Strong and Effective PMs


What Makes a Great PM?


What Makes a Great PM?

1. Follows through On commitments On others’ commitments

2. Good listener3. Proactive4. Nails every aspect of job5. Leads by example6. Good communicator

7. Backs decisions of team members

8. Organized9. Handles multiple priorities

well10. Technically proficient11. Holds people accountable12. Delegates well

A Strong PM is Like a Great Server in a Fine Dining Restaurant

1. Explain all the scope options offered?

2. Make sure customer understands firm's pricing structure?

3. Understand the scope that the customer wants before starting the project?

4. Communicate desired scope to project team?

5. Assure that project team prepares work product per customer’s desired scope?

6. Deliver it in a reasonable time?

7. Periodically check with customers to see if they desire additional scope items?

8. Deliver invoice as soon as project is completed?

9. Assure that customer pays invoice?

10. Incentivized to provide excellent service to customers?


Best Practices

A vision created by senior management

Clear company-wide standards Efficient processes Functional professional

development Formal project management training Mentoring to enhance skills (team

management, public speaking, etc.) Consistent accountability


Every PM Needs A Development Plan

PM Duties/Authority Current Vision

Manage proposals for the projects he/she will ultimately manage No Yes

Prepare the fee budgets for their projects Occasionally Yes

Actively participate in fee negotiations with clients No Yes

Actively participate in selecting their project team members No Yes

Actively participate in performance evaluations of team members No Yes

Able to get non-performers removed from their projects No Yes

Control design and technical decisions (within the overall constraints of firm policies) Yes Yes

Stay in firm control of their project budgets Usually Yes

Stay in firm control of their project schedules Yes Yes

Maintain the day-to-day relations with their clients Yes Yes

Sign and seal the drawings (in states where they are licensed) No Yes

If there is a collections problem, directs the collection efforts Participates Yes

Really feel accountable for the success or failure of his/her projects Yes Yes


©2014 Deltek, Inc. and PSMJ Resources, Inc. All Rights Reserved ©2014 Deltek, Inc. and PSMJ Resources, Inc. All Rights Reserved

Pillar 2: Creating an Environment That Enables PMs to be Successful


Best Practices

Templates and tools to comply with standards

Efficient, well documented processes Workflows from PM system to provide

real-time project insight Insight into project financial

performance Support from senior project manager

or principal

Establish a Partnering Relationship Between Principals and PMs

Activities Project Manager Principal

Fee proposals Prepares Approves

Fee negotiations Participates Directs

Team selection Requests Approves

Performance evaluations

Inputs Performs

Removing non-performers

Recommends Acts

Design/technical decisions

Meets standards Set standards

Client relations Maintains Client Sponsor

Future work Secures Approves

Accountability Maintains Rewards/punishes


Give PMs the Tools They Need to Do Earned Value Management

$- $17,379 $34,758 $52,137 $69,516 $86,895

$104,274 $121,653 $139,032 $156,411 $173,790

0%10%20%30%40%50%60%70%80%90%100%

Planned ExpendituresActual ExpendituresEarned Value


©2014 Deltek, Inc. and PSMJ Resources, Inc. All Rights Reserved ©2014 Deltek, Inc. and PSMJ Resources, Inc. All Rights Reserved

Pillar 3: Instilling Accountability Across The Organization


Best Practices

Senior management

o Management sets the standard!o Rigorous project reviews at least monthly

PMs

o Document compliance with required actions

o Project plans current and scope changes addressed with management

o Standard escalation steps followed if project falls behind with budget or schedule

o Monitor KPIs monthly and take action when project performance is below benchmarks

Finance

o Partner with the PMs – information sharing, training

MuchAbove Target

MuchBelowTarget Profit

Target Profit

BelowTargetProfit

AboveTarget Profit

Unacceptable

Needed Improvement

Acceptable

Met Expectations

Exceeded Expectations

Excellent

Exceptional

How One Successful Firm* Evaluates Their PMs

Clie

nt E

valu

atio

ns

Profitability

1 1 PM #11

1

1

1

1

1

2

2 PM #2

2

2

2

22

3

3 PM #3

3

3 3

33

3

4

4 PM #4

4 4

4

4

4

* Reproduced courtesy of ClientFeedbackTool



10 Things Principals Must Know About Their PMs’ Projects

1. Is the job set up properly in the accounting system?2. Has a Project Management Plan been prepared and distributed to the

team?3. Are there pending change orders that need to be formalized?4. Has the job been billed recently?5. Are payments current?6. Is the job running over or under budget? If over budget, what corrective

actions are being taken?7. Is the project on schedule? If not, what corrective actions are being

taken?8. Are our QA requirements being followed?9. Is the client happy?10. Is there more work coming up with that client?


We Don’t Recommend This Method

Principals

Project Manager

CFO


You Can Get the Answers By…

Or You Can Schedule Formal Project Reviews


Selecting Projects for Formal Reviews

% Spent varies significantly from % Earned

% Earned = % Spent

High risk projects

High opportunity projects

Strategic client projects

It’s the PM’s turn



One Firm’s Project Review Process

1. All PMs submit Earned Value reports to their Office Managers each month.2. Each Office Manager in conjunction with the Regional Manager will select a day

each month to conduct project reviews. Time allocated will be 30 to 60 minutes per PM, at the discretion of the Office Manager. Office Managers will have a schedule in place on or before November 1.

3. Office Managers will advise Regional Managers, PICs, COO and CFO which projects are scheduled for reviews each period. Regional Managers, PICs, COO and CFO will attend at their discretion (either in person or via web).

4. Each PM must present at least one project each month. If the Office Manager is also the PM, the Assistant PM will present the project

5. Project reviews will include both PowerPoint and Excel templates (plus other clarifying management information that the PM may want to include)

6. The COO monitors the implementation of this process


Key Takeaways


Key Takeaways

1. Develop a specific list of PM duties for all the PMs in your firm

2. Measure your PMs’ performance in terms of:

Profitability Client satisfaction

3. Have a written plan for developing promising design professionals into strong PMs

4. Communicate regularly with your PMs to find out the status of key issues


Key Takeaways…

5. Senior Management commitment to strong project management

6. Senior Management adopts new processes

7. Project planning is integral to business process

8. Clear career path, training and development, and support for PM leads to lower turnover

9. Best practice firms leverage technology, streamline business processes, and centralize information in a single database


Q&A


Next Steps

Project Management BootcampThis interactive, two-day seminar is extremely useful for those who are looking for all levels of project management

• Webinar participants register now for one of the upcoming 8 locations, and bring a colleague to this seminar for half off the regular registration fee.*

Project Management NewsletterThis monthly newsletter provides PMs with great ideas on how to make

their projects more successful.• Webinar participants receive 18 months of this newsletter for the price of 12 months

($397 per subscriber)• Significant discounts are available for multiple subscribers in the same firm

Call Diane Constantine at 800-537-PSMJ (7765) and mention that you participated in this webinar to receive these special offers for a limited time only.

Offer ends 14 days from the date of this webinar!*PSMJ PM Bootcamp offer – not valid on previously registered and paid attendees


Next Steps

Building a Culture of Better Project Management Whitepaper

A start-to-finish guide for creating a world-class project management

discipline.

Download- http://bit.ly/1rQcXJF

Deltek Project Management eBook

Loaded with product and client examples, this interactive eBook shows

you how Deltek Vision enables more effective project management

Download - http://bit.ly/1jjjyty

http://bit.ly/1rQcXJF

http://bit.ly/1rQcXJF

http://bit.ly/1jjjyty

http://bit.ly/1jjjyty


Thank You!

Dave Burstein

[email protected]

(770) 723-9651

Bob Stalilonis

[email protected]

(617) 528-2375

deltek and psmj resources webcast: the 3 pillars of project management excellence

Leadership & Management