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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

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Project success topics

Setting the scene

Case studies

Measuring project success

The dimensions of project success

Back to case studies

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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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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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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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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


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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Case study 3: industrial plantProject was to build an industrial plant

Project completed within cost and time parameters


Plant had an explosion during start-up (commissioning)

What would you say now?


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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


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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


Exchange rate issues: final cost = 1.1 x budget

What would you say now?


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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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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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OK: what is the alternate?If the traditional view is becoming

outdated, or not effective …

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The question is about value

How do we maximize the value to the

organization?

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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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The first dimension

May 2013 © 2013 SUKAD Group 26

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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The second dimension


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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The third dimension


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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The fourth dimension


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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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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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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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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Dimensions of success – CS2

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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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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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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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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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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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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

© 2012-2013 SUKAD

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the sukad way™ | cam2p™ model | project success: a different perspective for measuring project...

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