kapur-seven dealy sins of pm

© 1995 Center for Project Management® Rev: December 8, 20031

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of Project Managementof Project ManagementThe Seven Deadly SinsThe Seven Deadly Sins

PMI-ISSIG WebinarPMIPMI--ISSIG WebinarISSIG Webinar

Presented ByGopal K. Kapur, President

Center for Project Management®One Annabel Lane, Suite 108

San Ramon, CA [email protected] www.center4pm.com

Presented ByPresented ByGopal K. Kapur, PresidentGopal K. Kapur, President

Center for Project ManagementCenter for Project Management®®One Annabel Lane, Suite 108One Annabel Lane, Suite 108

San Ramon, CA 94583San Ramon, CA [email protected]@center4pm.com www.center4pm.comwww.center4pm.com


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State Of IT Project ManagementState Of IT Project Management

“The “whisper number” (the one no one likes to publicly acknowledge) for annual IT waste is around $75 billion. These are the dollars spent yearly on failed IT projects.” Thornton May, Save the Suits From Themselves, Computerworld, March 10, 2003, pp. 21.


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7 Deadly Sins7 Deadly Sins

1. Mistaking Half-Baked Ideas for Projects2. Inadequate Due Diligence3. Ineffective Sponsorship4. Under Skilled Project Managers5. Lack of a Robust Project Management

Process6. Not Monitoring the Vital Signs7. Absence of a Comprehensive Project

Portfolio


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Sin 1: HalfSin 1: Half--Baked Ideas as ProjectsBaked Ideas as Projects

MAET

PM

DeadlineDeadline

Progressive Regression Progressive Regression Progressive Regression

ManagerManager

EXECEXECHH--B IdeaB Idea


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Filter HalfFilter Half--Baked Ideas Baked Ideas

Which specific strategy is the project linked to?What are the key objectives?What is the value-to-business?How realistic are the key assumptions? Are the measures of success quantified? What are the shut down conditions?How realistic is the deadline?What are the implications of doing nothing?

11

22

33

44

55

66

77

88

Questions designed to filter out half-baked ideas.Questions designed to filter out halfQuestions designed to filter out half--baked ideas.baked ideas.


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Filter HalfFilter Half--Baked Ideas Baked Ideas –– Problems Problems

Sponsors and project managers don’t really talk to each other. Sponsors don’t like to be questioned.Most sponsors are too busy to spend any time with their project managers.Project managers find it difficult to bring up the issue of canceling a project.

Seeds of failure are sown.Seeds of failure are sown.Seeds of failure are sown.


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There is an effective project management process that There is an effective project management process that filters halffilters half--baked ideas from viable projects.baked ideas from viable projects.

Routinely Most Often Often Sometimes RarelyRoutinely Most Often Often Sometimes Rarely11 22 33 44 55

11%

349%

417%

220%

513%

Data was collected at the SF-PMI May 2003 Regional Conference. Data was collected at the SFData was collected at the SF--PMI May 2003 Regional Conference. PMI May 2003 Regional Conference.


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Sin 2: Inadequate Due DiligenceSin 2: Inadequate Due Diligence

“Hundreds of careful studies show that most new companies, products and services are flops – even during the best of times.” Robert I. Sutton,Stanford University, CIO Insight, October 2001, pp. 47.

Reason: Lack of due diligence.Reason: Lack of due diligence.Reason: Lack of due diligence.


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StakeholdersStakeholders

Policy

Management

Implementation

CustomersEnd-users

ProjectProject


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PolicyPolicy--Level Stakeholders Level Stakeholders

Project Sponsor

Neutral

Nemesis

Comatose

Champion

Champion

SH

SH

SH

SH

SH

Those who “shape” the project.Those who “shape” the project.Those who “shape” the project.


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ImplementationImplementation--Level StakeholdersLevel Stakeholders

Project

SH

SH

SHChampion Neutral

SHNemesis

Comatose ChampionSH

SH

Expectations

Degree of Change

Level of Readiness

Nemesis

Those who will be “shaped” by the project.Those who will be “shaped” by the project.Those who will be “shaped” by the project.


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Project proposals undergo appropriate and effective Project proposals undergo appropriate and effective levels of due diligence.levels of due diligence.


11%

29%

325%

441%

524%



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Sin 3: Ineffective SponsorshipSin 3: Ineffective Sponsorship

Commitment of “political capital”Commitment of personal timeCommitment of resources

Sponsorship means more than approving the budget. It means having

one’s “skin” in the game.

Sponsorship means more than Sponsorship means more than approving the budget. It means having approving the budget. It means having

one’s “skin” in the game.one’s “skin” in the game.


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Role of the Sponsor Role of the Sponsor -- A Partial ListA Partial List

•• Provide guidance and direction for key Provide guidance and direction for key business strategiesbusiness strategies

•• Understand project complexityUnderstand project complexity•• Empower the project managerEmpower the project manager•• Champion the project and the teamChampion the project and the team•• Formally manage the project scopeFormally manage the project scope•• Approve plans, schedules, and budgetsApprove plans, schedules, and budgets•• Ensure sustained buyEnsure sustained buy--inin•• Clear road blocks (obstacles)Clear road blocks (obstacles)•• Ensure timely availability of resourcesEnsure timely availability of resources•• Review project progressReview project progress•• Ensure that project benefits are realizedEnsure that project benefits are realized

The sponsor should be

able to make 80% of all decisions without

having to get approval from

higher ups.

The sponsor The sponsor should be should be

able to make able to make 80% of all 80% of all decisions decisions without without

having to get having to get approval from approval from

higher ups. higher ups.


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Project Manager’s LamentProject Manager’s Lament

My sponsor done left me, My sponsor done left me, don’t come round no more.don’t come round no more.

Inflatable Sponsor!Inflatable Sponsor!Inflatable Sponsor!


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Sponsors in my organization commit their political Sponsors in my organization commit their political capital, personal time, and resources to their projects.capital, personal time, and resources to their projects.


16%

336%

436%

59% 2

13%



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Sin 4: Under Skilled Project ManagersSin 4: Under Skilled Project Managers

Poor project management is a leading cause of project failure.

“Why Information System Projects are Abandoned: A Leadership and Communication Theory and Exploratory Study.” Effy Oz and John J. Sosik, Journal of Information Systems, Fall 2000.

“Why Information System Projects are Abandoned: “Why Information System Projects are Abandoned: A Leadership and Communication Theory and A Leadership and Communication Theory and Exploratory Study.” EExploratory Study.” Effy Oz and John J. Sosik, Journal of ffy Oz and John J. Sosik, Journal of Information Systems, Fall 2000.Information Systems, Fall 2000.


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Project Com

plexity

Project Manager Skills Survey Project Manager Skills Survey -- 47 PMs47 PMsDeveloping Compre-

hensive Project Plans

Developing RealisticEstimates & Sched.

Tracking ProjectProgress

Managing Expectations

Managing The Team(Leadership)

Negotiation Skills

Novice Expert

Skill Gap

Skill Gap

Skill Gap

Skill Gap

Skill Gap

Skill Gap

0 1 2 3 4


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Under Skilled Project ManagersUnder Skilled Project Managers

“More than 75% of 219 IT executives interviewed earlier this year by Meta Group Inc. indicated that a lack of in-house project management skills is a major workforce issue for them. But relatively few companies offer formal IT project management training…” Thomas

Hoffman, Computerworld, August 11, 2003, pp. 16.


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12%

24%

326%

429%

539%

Project managers in my organization have the necessary skills to do their jobs effectively and efficiently.




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Under Skilled PMs Under Skilled PMs -- Typical SolutionTypical Solution

Acquire a site license for a project Acquire a site license for a project management software packagemanagement software package

–– Powerful toolsPowerful tools–– Uneducated project managersUneducated project managers

Mounting afterburners on a mule.Mounting afterburners on a mule.Mounting afterburners on a mule.


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PM Skills Development ProgramPM Skills Development Program

Comprehensive Education and TrainingChallenging Job AssignmentsNon-judgmental MentoringProfessional Certification


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Sin 5: Lack of a Robust PM ProcessSin 5: Lack of a Robust PM Process

Project Process Architecture™ (PPA ™ )Project Process Architecture™ (PPA ™ )Project Process Architecture™ (PPA ™ )

LaunchLaunchPre Pre LaunchLaunch

Idea

Vision

ExecuteExecute ImplementImplement OperationOperation

ProductionProductionProjectRequest

ProjectProjectCharterCharter

Plans &Plans &EstimatesEstimates

Schedule Schedule & Track& Track

CompletedCompletedProjectProject

6 Stages, 33 Steps Scalable Model

6 Stages, 33 Steps 6 Stages, 33 Steps Scalable ModelScalable Model


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Project Process Architecture™Project Process Architecture™

IdeaIdea ProjectProjectRequestRequest

Vision

1. Idea Statement 2. Project Request

√

√

√ Recommended for all projects √ Recommended for all projects


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PrePre--LaunchLaunchProjectRequest

Project Project CharterCharter

10. Stability Assessment11. Issues 12. Risk Assessment13. Preliminary Scope

Statement14. Project Size Estimate15. Project Charter

3. Project Description4. Intra-Project Priorities5. Stakeholder Assessment6. Complexity Assessment7. Policies, Standards,

Procedures8. Impact Assessment9. Constraints and Obstacles

√

√

√

√

√

√

√

√


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Plans &Plans &EstimatesEstimatesLaunchLaunch


Project Charter

√

√

√

√

16. Project Staging17. Project Organization18. Task Plan19. Prototyping Plan20. Organization Change

Management Plan21. Scope Management Plan

22. Staffing Plan23. Communications Plan24. Project Notebook25. Detailed Estimates26. Project Plan Review &

Budget Approval

√

√

√


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ExecuteExecute Schedule Schedule & Track& Track

Plans &Estimates

27. Schedules28. Progress Review and Control

√

√

Between 60 to 70 percent of project effort and time is spent in this stage.Between 60 to 70 percent of project Between 60 to 70 percent of project effort and time is spent in this stage.effort and time is spent in this stage.


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ImplementImplement CompletedCompletedProjectProject

Schedule & Track

29. Project Implementation and Closure30. Process Assessment

√


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OperationOperation ProductionProductionCompleted Project

31. Value-to-Business Assessment √

33. Current System Retirement√

32. Operations Metrics√


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My organization uses a robust wellMy organization uses a robust well--defined processdefined processto manage its projects.to manage its projects.


14%

227%

334%

423%

512%



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Sin 6: Not Monitoring the Vital Signs Sin 6: Not Monitoring the Vital Signs

George GlaserGeorge Glaser

% Complete = FantasyFantasy

Gopal KapurGopal Kapur

% Complete = Fantasy

Lie

Percent Complete is Insidious.Percent Complete is Insidious.Percent Complete is Insidious.


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Project Vital SignsProject Vital Signs1. Strategy Alignment2. Customer Buy-In3. Technology Viability4. Sponsor’s Commitment and Time5. Value-To-Business6. Vendor Viability7. Disposition of the Team8. Status of the Critical Path9. Milestone Hit Rate10. Deliverables Hit Rate11. Issues12. Actual Cost vs. Estimated Cost13. Actual Res. vs. Planned Res. 14. High Probability, High Impact Risk Events15. Overtime Usage


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Vital Signs Vital Signs –– Report Card (Example)Report Card (Example)

Vital Signs Deviation Value

Status of the Critical Path (Gap)Weekly

<10% 10% - 20%

>20%

0 Green 1 Yellow 2 Red

Milestone Hit Rate (Gap)Weekly

<10% 10% - 20%

>20%


Cost-To-Date Variance (Gap)Monthly

<10% 10% - 20%

>20%


IssuesWeekly

No Issues Issues < Del Issues > Del



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Vital Signs AssessmentVital Signs Assessment

All is well Run Away Condition

Shut Down Condition

A White Paper on the subject is available through the Center’s web site: www.center4pm.com

A White Paper on the subject is available through the A White Paper on the subject is available through the Center’s web site: Center’s web site: www.center4pm.comwww.center4pm.com


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12% 2

14%

321%

431%

532%



Our project managers monitor a set of wellOur project managers monitor a set of well--defined Vital Signs defined Vital Signs of their projects.of their projects.


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Vital Sings Vital Sings -- Benefits Benefits

A major consumer goods company was able to negotiate a reduction of $45 million in fees from three vendors by diligently tracking the vital signs of 40 projects.A number of Center’s clients have put in place a well defined process to identify and cancel troubled projects. http://www.center4pm.com/ProjectHALTt.pdf


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Sin 7: Sin 7: Absence of a Comprehensive Project Absence of a Comprehensive Project PortfolioPortfolio

CEO Concerns:CEO Concerns:How much are we spending on How much are we spending on projects?projects?Do the right projects get approved?Do the right projects get approved?How many projects are being executed?How many projects are being executed?What is the status of the various What is the status of the various projects?projects?What is the total project capacity of the What is the total project capacity of the organization? organization?


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Project Portfolio DashboardProject Portfolio Dashboard

Capacity

Operations

Suspended

Canceled

Demand

SG2

ExpirationDate

Launch

Plan & Estimate

JeopardyOn target Lagging

SG3

I

IIIIV

II

Execute

Development

SG4

I

IIIIV

II

Implement

Deployment

SG5

Idea

Request

Approved

In Progress

Charter

Pre-Launch

ExpirationDate

SG1

SG Stage Gate


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Portfolio AlertsPortfolio Alerts

Unaligned ProjectLow Customer Buy-inSchedule OverrunBudget OverspendResource Under AllocationShutdown ConditionPortfolio Stress


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My organization has a wellMy organization has a well--structured project portfolio.structured project portfolio.

130%

270%

Data was collected at the PMI-ISSG June 2003, San Antonio, TX. Data was collected at the PMIData was collected at the PMI--ISSG June 2003, San Antonio, TX. ISSG June 2003, San Antonio, TX.



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Elements of Project SuccessElements of Project Success

SoundPM

Process

SolidSponsorship

SkilledPM

VitalSigns

PortfolioManagement

Filter H-B Ideas

DueDiligence

Project Success


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Most projects eventually get done, but:Most projects eventually get done, but:–– Not in the right sequenceNot in the right sequence–– Not by the right peopleNot by the right people–– Not in the right detailNot in the right detail–– Not by the right timeNot by the right time–– Not at the right costNot at the right cost

Absence of a Disciplined PM ProcessAbsence of a Disciplined PM Process

Please, let me live...

Sponsor

Results:Results:–– High “body count”High “body count”

PM


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References

How to Manage a Portfolio of ProjectsHow to Manage a Portfolio of ProjectsCIO Insight, January 1, 2003CIO Insight, January 1, 2003

http://www.cioinsight.com/article2/0,3959,841098,00.asphttp://www.cioinsight.com/article2/0,3959,841098,00.asp

How to Kill a Troubled ProjectHow to Kill a Troubled ProjectCIO Insight, September 1, 2001CIO Insight, September 1, 2001

http://www.cioinsight.com/article2/0,3959,16486,00.asphttp://www.cioinsight.com/article2/0,3959,16486,00.asp


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Center for Project ManagementCenter for Project Management™™

Services– ProjectSCAN™– ProjectHALT™– Executive Briefings– Seminars and Workshop– Consulting and Mentoring Services– Tools and Templates– White Papers– Project Manager Certification Program– Train-the-Trainer Program– Best Practices Development and Deployment

Contact Raj Kapur, VP Sales at 800-510-1535, Ext. 11 [email protected]

Contact Raj Kapur, VP Sales at 800Contact Raj Kapur, VP Sales at 800--510510--1535, Ext. 11 1535, Ext. 11 [email protected]@center4pm.com

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