the sukad way™ | cam2p™ model | project success: a different perspective for measuring project...
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© 2012-2013 SUKAD
Project Success (A Different Perspective for Measuring
Project Success)
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
SUKAD contact informationMain Website: http://www.sukad.com
Learning Division: http://learning.sukad.com
Solutions Division: http://solutions.sukad.com
Knowledge Portal: http://knowledge.sukad.com
English Blog: http://blog.sukad.com
Arabic Blog: http://blog-ar.sukad.com
SUKAD main email: [email protected]
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
SUKAD social mediaFacebook
Page: http://www.facebook.com/SUKADgroup
Group: https://www.facebook.com/groups/sukad/
Twitter: http://twitter.com/SUKADgroup
YouTube: http://www.youtube.com/user/SUKADipms
LinkedIn:Page: http://www.linkedin.com/company/sukad
Group: http://www.linkedin.com/groups/SUKAD-Group-Integrated-Project-Management
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Project success topics
Setting the scene
Case studies
Measuring project success
The dimensions of project success
Back to case studies
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© 2012-2013 SUKAD
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Project success in your life1. Do you measure success on your projects?
2. When do you/your organization determine if a project is successful or not?
3. When do you establish the success criteria?
4. Is it important to determine if a project is successful?
5. Why is it important?
6. What are the consequences if we do not measure?
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
The presentation context
Will challenge your comfort zone and “traditional thinking”
We view projects from strategic organizational perspective
Not a delivery perspective
We view projects from the perspective of project “owner” or “developer”
Not service provider perspective, and
Not from the project manager perspective
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© 2012-2013 SUKAD
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Different perspectivesIf you are the project manager, managing the construction of a house, what are your primary concerns?
If you are the general manager of a construction company that build houses, what are your primary concerns?
If you are the family that is funding and will own and live in the house, what are your primary concerns?
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The word Project what does it mean?
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Case study 1: HR projectAn organization implemented a new performance appraisal and career management framework
Project completed within the budget and time parameters
Is this project successful?
What could help us decide?
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Case study 2: “building” projectProject was to build a certain “building”
Project completed
Significantly over budget (x10),
6 years later than planned
Is this project successful?
What could help us decide?
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Case study 2, continued
How about this:
“The ----- is a great architectural work of the 20th century that brings together multiple strands of creativity and innovation in both architectural form and structural design.”
“Outstanding Universal Value “ ----- is positioned as a world-famous icon of architecture. The building is a great artistic monument and an icon, accessible to society at large.
Is this project successful?Ref. UNESCO Website
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Case study 3: industrial plantProject was to build an industrial plant
Project completed within cost and time parameters
Is this project successful?
Plant had an explosion during start-up (commissioning)
What would you say now?
Is this project successful?
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Case study 4: SAP implementationProject was to implement SAP across a huge organization (should have been a program)
Many sub-projects
Project cost is more than 1 billion US$
Most sub-projects significantly late, over budget, and with significant resistance to change
Is this project successful?
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Case study 5: petrochemical plantProject was to build mega petrochemical plant on an island; limited resources; challenging logistics
Project completed within cost and time parameters
Is this project successful?
Exchange rate issues: final cost = 1.1 x budget
What would you say now?
Is this project successful?
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© 2012-2013 SUKAD
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Traditional viewExecutives & project managers are concerned primarily with two measures of success:
Measure 1: Did the project finish on time and budget?
Measure 2: Did the project achieve it is technical requirements? The product delivered is per the specifications
In recent years, we are observing a change in this traditional view
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Challenges in measuring project successMany organizations do not establish success criteria, in advance
Their views: “project is complete = success”
This is not good enough from a strategic business perspective
If they measure success, they might limit their measurement to traditional view
That leave us with 1 or 2 dimensions of success
Product and project management success
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
OK: what is the alternate?If the traditional view is becoming
outdated, or not effective …
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
The question is about value
How do we maximize the value to the
organization?
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Close (COR)
Initial Ops
Simplified project life span (cycle)Id
ea
Concept/ Feasibility
Project Definition
(Detailed Plan)
Pro
ject
P
lan
Han
dov
er
Ch
arte
r
Acc
ept.
PM Planning
PM
Pla
n
1 2 3 4
Implementation
5 6
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
The first dimension
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1. This first dimension focuses on the product of the project.2. We measure at the time of handover and final acceptance.
3. We measure it in comparison to the project plan (scope, design, specifications, standards, etc.)
D1: Success of the Product
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
The second dimension
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1. This second dimension focuses on project management. 2. We measure at the time project close out.
3. We measure it in comparison to the project management plan (time, cost, other factors)
D2: Success of Project Management
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
The third dimension
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D3: Success of Project Delivery
1. This third dimension focuses on project delivery. 2. We might be able to measure at acceptance; often not possible until
‘sometime’ later.3. We measure it in comparison to the project authorization (charter).
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
The fourth dimension
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1. This fourth dimension focuses on the business objective (long-term)2. We cannot measure at acceptance; we can only measure ‘a while’
after completion; possibly at the end of the product life; or earlier.3. We measure it in comparison to the Idea Statement (Business
Objective/Feasibility). This is about ‘benefits realization’
D4: Success of The Idea – Business Objective
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Challenge with last two dimensionsSome will argue that last two dimensions are not the responsibility of the project manager
We agree!
Yet, it is the responsibility of the organization developing the projectThe organization view should be on:
The delivery of the “product” of the project, and
The product life cycle
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Challenges, continued
Others will argue: “as a service provider, I am not concerned (nor able to) measure the last two dimensions”
Again - we agree!
From service provider perspective success is: Delivering a good product within the client’s requirements and satisfaction
But the client need to realize benefits!
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
The people / parties perspectiveLet us think of the four dimensions differently
Product success is the responsibility of the technical team; maybe a service provider
Project management success is the responsibility of the project management team (project manager)
Project success is the responsibility of the sponsor
Business success is the responsibility of the business people (strategic planning; facilities planning, etc.)
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Dimensions of success – CS1The HR ProjectThe delivered framework was good; in term of standards “Product” SuccessProject completed within budget and time parameters Project Management SuccessResistance to change was too strong and many units did not implement the new framework Project/Business Measure… in this case failure
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Dimensions of success – CS2
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Dimensions of success – CS4 SAP ProjectA company that insisted on everything on paper with layers of signature
Now even vacation requests are done in SAP
Company even made changes to SAP by introducing new modules for pharmaciesBusiness Success despite the cost, time, and resistance challenges
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Dimensions of success – CS5 Petrochemical Project
Project delivered per the specifications “Product” SuccessProject completed within budget and time parameters (excluding exchange rate issues; not a PM issue) PM SuccessOrganization … hit the market at low demand “Objective” Success? In this case: challenged!
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Final case studyCompany: Pipe and valve vendor
Wanted to build a gymnasium in warehouseWhat would do if you are the project manager?Most project managers will build a gymIf we build the gym, per specification, on time and on budget, can we say we have achieved product and project management success?But is this enough?
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Final case study, continued
If we ask: “Why are you building a gym?”“We are building a gym to improve employees health”Is the project different? If yes – how?Would you do anything different in term of deliverables of the project?If we think about “how would we measure success” would that make a difference to you on how to deliver the project?
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
Why measuring success is critical?From a project “developer” perspective:
Completing projects is not the ultimate objective
The ultimate objective is realizing the benefits
The benefits that we expected when we launch a given project
Then the question is: “how do we know that we did the right project the right way?
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Why four dimensions?Product success allows us to assess whether our design and implementation is proper … or an area of concern that we need to improveProject management success allows us to assess whether our project management system/maturity is effective or deficientProject success (charter) allows us to assess whether the organization communication and objective setting is clear and effective
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
The fourth dimensionImportance of business objective success is to:
be able to assess strategic planning
prioritize projects and ensure the organization only deliver projects that are in line with its organizational strategic objective
Ensure that we perform feasibility studies that are realistic (not wishful thinking)
Bottom line: Ensuring Benefits Realization to maximize value!
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© 2012-2013 SUKAD Group (www.sukad.com) – Project Success
In closingWhat developers want is:
To ensure that they are spending their money effectively
On the right projects … projects that lead to realized benefits
To achieve their returns
AND: By doing the projects right … in term of:
Technical aspects: products that work
PM aspects: delivered within constraints
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© 2012-2013 SUKAD
Thank You
This presentation is per the Creative Commons Guidelines
Refer to access information on PM Knowledge Portal