www.epm.bc.ca june 2005 coral trisko, pmp enterprise project management ltd. project management... a...

June 2005

Coral Trisko, PMPEnterprise Project Management Ltd. www.epm.bc.ca

Project Management . . .

a step in the right direction!

June 2005


WHAT IS PROJECT MANAGEMENT?

The application of knowledge, skills, and tools &

techniques project activities.

The Goals:

Select the “right” projects!!Deliver projects on time and on budget!

June 2005


WHAT IS A PROJECT? PMBOK definition “A temporary endeavour undertaken to

create a unique product or service” PMBOK 2004

Specific work assignment outside the routine operations Has a beginning and an end Has established goals, objectives and deliverables Has defined constraints:

scope quality time cost

June 2005


WHY DO PROJECTS FAIL?

Project should not have been started! No business case Pet project

Scope Definition Unclear

conflicting goals among stakeholders proper scope identification not carried out unrealistic in the first place

June 2005


WHY DO PROJECTS FAIL?

Planning Planning phase of the project skipped all together

or a cursory job completed! This spells disaster!!

“ we don’t have time to do it right in the first place but we have time to do it over again!!!”

June 2005


THE BUSINESS CHALLENGE

The urgent is completed, at the expense of the important!

Inflation of projects Unstructured

determination of priorities

Insufficient capacity Need for co-

ordination with external support

Staff assigned to multiple projects

Low success rate

Inflation of projects Unstructured

determination of priorities

Insufficient capacity Need for co-

ordination with external support

Staff assigned to multiple projects

Low success rate

The expanding economical competition (e.g. globalization), demands continuous change, and consequently an increasing need for resources

The expanding economical competition (e.g. globalization), demands continuous change, and consequently an increasing need for resources

• Accumulated break-down

• Lower quality• Poor delivery

• Accumulated break-down

• Lower quality• Poor delivery

A multitude of measures are used

Cross-organizational projects are started

June 2005


SENIOR EXECUTIVE QUOTES

“Why define the scope? Everyone knows what this project is about.”

“Planning is a waste of time.Cross the bridge when you come to it.”

“Assign responsibilities?A competent team member should know what he/she has to do.”

June 2005


COST OF POOR PROJECT MANAGEMENT

Organizations continue to underestimate the amount of planning, cost, time and pain required to deliver their complex projects.

Survey data:Gordon 1999:IT Projects in 100 Companies37% completed on time42% completed on budget

The Standish Group 2000:

Less than 16% of all IT projects are completed on-time and on-budget31% were cancelled before completion53% were more than 90% over budget

June 2005


The chart depicts 30,000 application projects in large, medium and small cross-industry U.S. companies tested by The Standish Group since 1994.

Source: Feb/ Mar 01 Software magazine

COST OF POOR PROJECT MANAGEMENT

16

27

26

28

31

40

28

23

53

33

46

49

0% 20% 40% 60% 80% 100%

1994

1996

1998

2000

Succeeded Failed Challenged Succeeded:Projects completed on time, and on budget with all features and functions.

Failed:Cancelled projects.

Challenged:Describes projects deliveredover budget, late and with fewer features and functions.

Project Performance 1994-2000

June 2005


CRITICAL SUCCESS FACTOR

PM is recognized as critical success a company’s competitiveness

Gartner, 2002

70% of successful projects will have certified PMs

90% of failed projects have been managed by non-certified PMs

PMs with credentials are transferable cross organizations

The Standish Group, 2000Identification of 10 project success factors:

1. User Involvement2. Executive Management Support3. Clear Statement of Requirements4. Proper Planning5. Realistic Expectations6. Smaller Project Milestones 7. Competent Staff 8. Ownership 9. Clear Vision & Objectives 10. Hard-Working, Focused Staff

June 2005


ROLE OF PROJECT MANAGEMENT

BPPM BenefitsRealization

“I knowwhat Iwant toachieve”

“I know what Imust do to getthere”

“I can see itworking”

“I can feel &measure thebenefits”

Initiation Planning Execution& Control

Closure

Mobilisation Implementation

Operations

Project life cycle Product life cyclePre-project phase

Vision

Strategic

PlanningProject Management

June 2005


WHY PROJECT MANAGEMENT ?

Disciplined project management provides: Focal point for effective communications,

coordination and control A plan to assess progress Emphasis on time and cost performance

Project management provides the framework for methods, processes, monitoring and change control.

June 2005


STRATEGIC BENEFITS

Profit

Timely management information –No

Surprises!

Control over budgets and delivery

Competitive advantage

Effectiveness & Innovation

June 2005


STRATEGIC BENEFITS Cont’d . . .

Improve organizational effectiveness Focus on people and processes Improves performance and profitability Support continuous improvement

through learning

June 2005


BENEFITS OF PM PROCESSES

Lower Risk

Increase Control

Contain Cost

Improve services & products

Document, improve, & repeat for future projects

Risk Management

Planning & Tracking

Change Management

Quality Control

PM Framework

June 2005


VISION

First you have to believe in the vision in order for others to believe it!

Commit to the results the project must achieve Find ways around obstacles Have high expectations – others will follow

“We live in a world of possibilities …when we believe it, we’ll see it.”

June 2005


FOCUS ON THE FRONT-END

Choose projects that are aligned with corporate strategy

See the project in terms of its linkages to business areas

Clearly define the project and its objectives

Optimize project objectives to realize bottom line benefits

June 2005


WHAT WILL IT TAKE?

Leadership from the top is required! Consistent terminology and processes Accept up-front planning costs to realize down

stream project and long-term corporate benefits

“You can’t make project management work in an

organization in which nobody believes in project management”

(James P. Lewis)

June 2005


WHAT WILL IT TAKE? cont’d

Requires commitment Is a long-term investment Transforms an organization

June 2005


QUESTIONS

Inquires:

Web page: www.epm.bc.ca

Telephone: (250) 245-8319

www.epm.bc.ca june 2005 coral trisko, pmp enterprise project management ltd. project management... a...

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