how not to manage a project! (lessons learned in project management) pmi wdc kxf 10-26-04

10/26/2004 How NOT to manage a project! (c) A. Scott Dam 2004

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ASD E&C

Engineers & Consultants

How NOT to Manage a Project! (Lessons Learned in Project Management)

PMI WDC KXF 10-26-04

Presented by:A. Scott Dam, P.E.

ASD E&C and [email protected]


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Outline

● Introduction● Project Failures● Initiation ● Planning● Execution ● Controlling● Closing● Summary


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Introduction

● How many of you have worked on a project that was never completed, i.e., cancelled, rescheduled, shelved, and/or forgotten, …?

● Why?● What are you (or your organization) going to do

about it?● We will discuss how not to manage a project as

lessons learned for future projects.


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Project Failures

● US Dept. of Energy projects – GAO & NAS-NRC reviews – OECM formed

● NASA Projects

● Large Engineering-Construction Projects

● Commercial projects


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DOE Projects

● A few examples from GAO reports – - Rocky Flats - 100 projects <$2M each; 5 fold

increases (1992)- 1980 to 1996 31 of 80 major projects terminated prior

to completion due to changes in mission, management problems, cost overruns, and schedule slippages

- National Ignition Facility – management and oversight failures caused major overruns ($1.2B to $2.2B)

● National Research Council – Congressional direction - 5 years of reviews of projects - major project management improvements due to management failures (OECM formed; directives)


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NASA Projects

Effect of Requirements Definition Investment on Program Costs – Werner M. Gruhl, NASA


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Large Engineering Projects

● Big transportation projects – BART to SFO: $590M to $1.5B; Boston Big Dig: $7.7B to $14.6B (Guy Span, Bay Crossings)

● Donghai Bridge, China - $350M to $1.2B (UPI)● Shell Russian Oil Project – $10B overrun

(Money)● Westchester County Courthouse $51.5M over

$140MWeb search on Google: Project Cost Overruns –

44,100 hits


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Commercial Projects

● IT and application development projects often fail to be completed on time and budget; 1/3 exceed by 100% (Gartner research)

● IT projects goes from $1M to $3M, before being cancelled (Suzanne Thornberry)

Many articles and consultants offering how to manage projects; PMI training – PMP, etc.


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Initiation


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Our project was just approved!

We’re happy now, just wait.


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So how to we get started with our project?

?


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Don’t worry, I’ve got it covered!

PM


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Jump in with both feet!

Just start out doing the project, we don’t need to plan ahead or even know what we’re trying to accomplish.

We’ll know we finished when we get there.


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What hidden dangers?


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Ok, so now what?● Starting with an Un-achievable Goal, an Ineffective Organization, or a

Project without a clear mission?● Organization & Initiation – we don’t need to bother do we?

- Project Charters – why do we need one of those?▪ Mission – why do we want to do this project?▪ Goals – set unachievable goals - key accomplishments we can never make anyway so

don’t bother to write down now.▪ Who will do it? ▪ Authority to accomplish mission & goals?

- Project Organizations – volunteers wanted - anyone can be the PM!▪ Strong, weak, non-existent PM & PMO▪ Project team – any one know what they’re doing? Why do we need a project controls

person, can’t the PM do it too?▪ I don’t need to go to that PM training class, do I?

● Just start the project and don’t tell anyone what we’re doing, they don’t need to know.

● Should we quit now? YES


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Planning


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Some times the it seems too high to overcome.


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Don’t Plan the Project

● Don’t develop a realistic WBS, project cost estimate, or schedule

● Don’t document how you will organize and manage the project; don’t develop project procedures

● What’s a risk analysis?● Don’t listen to experienced people or check any

lessons learned from other projectsMany projects fail due to poor estimating and resulting cost overruns


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If it’s not one hurdle, it’s another


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Execution


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Or Suicide?

● So now you’re into the project delivery activities, do you know what to do when; how?

● Milestones? Due dates? “you’ve got to be kidding”● How much “help” are you getting from “corporate (or the

customer)”?● What’s risk mitigation?● Be sure not to tell anyone how we’re doing, it’s up to

them to find out for themselves.

Other major causes of project failures are poor monitoring of project activities and poor communications


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Project managers must perform the real balancing act - cost, schedule, scope!


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Keep on, you’ll get there


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Controlling


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Project Controls?

● What do you mean actuals to date? Anyone heard of BCWP?

● You want what? Oh, the status of cost & schedule against plan. Someone else was supposed to provide that the information.

● No problem providing an ETC!

Just take the budget and double it.


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Just give us some more time!


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Closing


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Don’t Document Failures (or Successes)

● Why should we help out the next PM or project team?

● Let them learn for themselves – it’s more meaningful that way

● Don’t provide files for anyone else, if anyone wants the info they’ll have to see me!What if it is me wanting to start a new project?


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Summary

● Planning, then execution – it’s hard to achieve the plan if you don’t have one.

● All the “don’ts” are “do’s”● Use proven PM practices● Tailor your PM practices to your specific

project ● Be careful of what you promise

It’s not difficult but requires attention to the details – doing it right will lead to success


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We completed our project on time and budget and with customer acceptance!


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Questions & Discussion

how not to manage a project! (lessons learned in project management) pmi wdc kxf 10-26-04

Documents

scott dam

project failuresus

project charters

project cost overruns

project controls person

b upishell russian oil

dont worry

dont p