project profit as a measure of its success

8/9/2019 Project profit as a measure of its success

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Profit as a measure of project success

@safason


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Czech expanding company since 2006

design and implementation of corporate application

in CRM / Project Management & HR / Recruitment

using advanced Web 2.0 technologies from Adobe

focus on mid-sized and smaller organizations

more than 100 implementations


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Customers


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Profit

Is it possible to manage profit size?

Profit is complex unit, influenced by indefinitenumber of factors

Is profit the only success criteria?

Suggestion: plan the profit and focus all youractivities to achieve it


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Profit management?


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Success criterium for project

managementQuality

Time Price


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Quality

Do you have precise project specification?

Higher quality brings lower profit? Or vice

versa?

Who bears the risk? What is the relation to sub-

suppliers? How it will affect future?

There is evil hidden in details

Suggestion: focus to less extent from the

beginning


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TimeDo you have flexible time schedule?(Flex scope vs. Fix time)

Who will pay incorrectly estimated time?

Are there penalties for missed deadline?

Is this project your best alternative?

Do you take in part sub-suppliers? Does it haverelations to other projects as well?

Suggestion: make shorter phases confirmed

and paid by client


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Price

Did you agree fixed / floating remuneration?

What is more important for client: price / date?

Who bears the project risk?

How is the price split in time? (Cash Flow)

Pay attention to small changes in

specifications

Suggestion: do not focus on price competition,

but bring the value of service


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How to fight risk?


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Agree good contract

Is based on agreement on sharing the risk

Precisely defines what is / is not included

Try win-win principle, is good in long term

Involve your client as much as you can

Do not promise undeliverables

Evangelize your client to avoid damage (write

your own rules, if they are not, the customer is

always right)


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Be disciplinedPlan, plan, plan

Communicate your plan soon to involved

Watch the budget fulfillment ASAP (preferably

in real time, after the project ended, it is too

late)

Do not underestimate details (they are most

expensive)

Hand over part of the risk to sub-supplier

Hire Financial Manager


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Focus your core activities

Separate grain from chaff

Dedicate your time to activites, which are most

valuable

Attempt to fulfill long term plans

Select your customers

Encourage yourself to refuse the project (both

current & potential)


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Build good relations

Involve customer into game

Identify key person, who will fight for you

Keep positive relationships in the team

Put individuals goals in complience with the

corporate & customers goals

Be ethical


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How will IT help you?Provide you with unified data source

Provide you with profitability analysis in real

time

Will help you handle large amount of data

Will help you identify problem before it is too

late

Will make communication with your people

easier

Suggestion: contact Atollon :-)


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What if project gets failed?

You made your best to have project successful

& it still stucks?

Communicate in timely manner

Involve key people in the resolution

If client does not cooperate, stop the project

Suggestion: better to properly prepare than to

regret later

project profit as a measure of its success

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