CAI Project Management Excellence Series

1. To establish the importance of building trust through capability and visibility.

2. To establish the potential value of a project control room that monitors project conditions.

3. To identify the types of metrics that should be monitored by a project control room.

4. To show how CAI has responded to this challenge (and benefited from it).

5. To suggest a familiar framework to describe the measures that matter.

Objective of Session

Part One

Building Trust

What Is Trust?

“Opportunities will go to those I trust. My ability to trust you is based on two things,

1. My Belief That You Know What You Are Doing, and2. My Ability to Know You Are Doing It”

Trust, but VerifySuzanne Massie, a writer on Russia, met with President Ronald Reagan many times between 1984 and 1987. She taught him the Russian proverb, "doveryai no proveryai" (trust, but verify) advising him that "The Russians like to talk in proverbs.

Why Do We Trust Industrial Operations?• Critical Process Factors Identified –

They Know What to Monitor to Ensure Results Produced Safely (Pressures, Temperatures)

• Systematic Monitoring – They have multi-level process monitoring systems to track the factors that drive results.

• Integrated Control Room – Critical performance indicators and related data on entire process visible to those responsible.

• Trained, Experienced Personnel – Interpret control room information address causes of trending-out-of-control conditions before they develop into more serious issues.

And Not Trust Project Managers?

Source: http://versionone.com/assets/img/files/ChaosManifesto2013.pdf

• Studies “Reveal” that IT Executives Don’t Trust the Service Providers They Rely On

• It’s About Improving “Challenged“ Project Success Rates

Source: http://versionone.com/assets/img/files/ChaosManifesto2013.pdf

Little Improvement in Decade

Part Two

The OpportunityThere’s ROI in Control Room Capability Trust Building

We Need a Control Room Capability Like This…

– Comprehensive, Up-to-date Operating Results and Critical Conditions Data

– Key Performance Indicators Displayed in Action Compelling Dashboard

– Charts for Detecting Time Series Trends– Drilldown Into Source Data for

Verification and Understanding Root Causes

To Go After the Improvement Potential in This…

http://www.mckinsey.com/insights/high_tech_telecoms_internet/the_perils_of_ignoring_software_development February 2015

– Today: Number of top 100 product and service companies - that are now dependent on software – has DOUBLED (to nearly 40%) in the past 20 years.

– Tomorrow: Revenues from digitized products and channels are expected to exceed 40% in industries such as insurance, retailing and logistics.

Because We Need to Do THIS

• Digital Projects Transformation

http://www.mckinsey.com/insights/high_tech_telecoms_internet/the_perils_of_ignoring_software_development February 2015

It Will Take Control Room Capability and Credibility

–For the Opportunity to Take on Larger, More Complex Projects With Less Risk• Monitoring Critical Conditions• Responsible Team in Loop

– As An Organization– As An Individual Project Manager

Part Three

So…What SHOULD the Control Room Monitor?

Customers Expect PMs to Predict the Future

• At Least IT Executives Agree, It’s Difficult to “Master” Predictability

Source: http://versionone.com/assets/img/files/ChaosManifesto2013.pdf

But, We Measure the Past

Two Types of Measures

• We Have Lagging Indicators– Backward Looking– Track Progress

• We Need Leading Indicators– Forward Looking– Enable Management

Traditional Lagging Measures

• Volume• Quality• Cost

Leading Indicators: The Early Warning Signs

Experts Agree on What We Should Measure

What ARE the Early Warning Signs?

• Kappelman Research– Derived List of

• Six People Factors• Six Process Factors

Early Warning Signs: The Dominant Dozen

People-Related Process RelatedTop Management Support Documented RequirementsProject Manager Capability Change Control ProcessStakeholder Involvement Schedule Planning/MgmtProject Team Commitment Communication EffectivenessTeam Member Skills Resource AssignmentSME Availability Business Case

The Dominant Dozen

http://ism-journal.com/ITToday/projectfailure.pdf

Part Four

Getting Started: Monitoring the Core Conditions

Three Important CONDITIONS to Monitor• Expectations Management • Sponsor Involvement • Process Compliance

To Minimize One Project Risk Factor• Project Rework Probability

What Metrics Should We Monitor?Every Project’s Core Conditions

According to the Carnegie Mellon Software Engineering Institute, “Data indicate that 60-80% of the cost of software development is in rework.” Source: Paul D. Nielsen, “About Us: From Director and CEO Paul D. Nielsen,” Carnegie Mellon Software Engineering Institute, http://www.sei.cmu.edu/about/message/

What Metrics Should We Monitor?The Four Missing Metrics

• SMART – Are expectations clear?

• SMPL – How engaged is sponsor?

• PAL - Are processes beingfollowed?

• PRPL – Are causes of Rework being avoided?

(𝑆𝑀𝐴𝑅𝑇 ∗𝑆𝑀𝑃𝐿∗𝑃𝐴𝐿 )=𝑃𝑅𝑃𝐿

Part Five

How Do We Collect This Data?

Traditional Feedback Sources

• Lagging Indicators- Project Management Tools- Accounting Tools- Timekeeping Tools

• Leading Indicators- MBWA- Team Meetings- Formal Assessments

1. Know What You Want to Collect

• Risk Management Status

• Key Performance Indicators

• Expectations Management

• Sponsor Involvement• Process Adherence

2. Collect As Formally As Possible

• Why?• Minimize Appearance of Bias• Emphasize Importance of

Conditions Monitoring • Create Permanent Record

• How?• Standard Set of Weekly

Assessment Questions• Standard Presentation of Metrics

3. Present Metrics Clearly

• Simple Charts• Few, [Proven] Key Performance

Indicators• Control Limits Clear

Office Products Control Room

• eMail Assessment• Instructions• Spreadsheet

• Spreadsheet Consolidation

• Charts and Graphs• Status Report

Extensive Excel Widget Collections

Part Six

What CAI Has Done?

We Faced a Turning Point

• Grew Past Point of “Intimate Involvement”

• Major Project Failure • Never Surprised Again

• APO Provides Managers What They Need– Comprehensive Project

Results and Conditions Data– Key Performance Indicators

Dashboard– Time Series Data for Detecting

Trends– Drilldown Into Source Data for

Details

CAI Wanted a Tool With Control Room Capabilities

Decided to Develop Comprehensive Project Management Tool

• Comprehensive Project Data Collection– Operational Data – Human Feedback

Data

• Key Performance Indicators Dashboard– Comprehension– Commitment– Communications– Capability– Availability

Compelling Presentation to Manager…and Stakeholders

• Trend Data– See Week-to-Week

Trends in Forward-looking Performance Indicators

Trend-Driven Conditions Monitoring

• Drill Down Into Source Data for Full Story– By Project– By Role– By Condition– By Response

Dashboard Highlights Issues

Drilldown to Detailed Feedback

Detailed Data to Understand Conditions

CAI’s Results

• Dramatic Improvement in Stakeholder Communications

- CEO Is Thrilled to Be in Loop

- Higher Satisfaction Across the Board

CAI’s Results

© 2015 Computer Aid, Inc.

• More Efficient Collaboration- Issues Are Obvious- Root Causes Are, Too- Trend-based View, Not Recent

Impression

CAI’s Results

• Genuinely Troubled Projects Easy to Identify

- Unique Conditions Stand Out from Rest of Portfolio

- Conditions Not Improving Despite Actions• Finally, Really Managing vs.

Accounting and Guessing- Focused on Understanding Conditions

that Drive Results

Part Seven

How Can YOU Communicate the Need for a Control Room for Your Organization?

Show Them One They Already Know

Automotive Gauge

Odometer

Clock

Fuel Level

Speedometer

Tachometer

Oil Pressure

Oil Temperature

Water Pressure

Water Temperature

Voltmeter

A Gauge for Every Condition

Automotive Engineers Long Ago Defined the Critical Measures for Safe, Effective Engine Operation.

The Basic Engine Measures

Automotive Gauge Asks the Question To MeasureOdometer How far? Deliverables Delivered

Clock How long? Duration

Fuel Level How much further? Input Units Available

Speedometer How fast? Deliverables per Unit of Time

Tachometer How intensely? Effort Intensity

Oil Pressure Do we have enough lubrication to smooth interactions?

Supply of Lubricant to Smooth Interaction Between Components

Oil Temperature How smooth are interactions? Ability of Lubricant to smooth Interaction Between Components

Water Pressure Do we have enough coolant to keep the engine producing?

Supply of Coolant to dissipate excess engine heat

Water Temperature How effective is the coolant in keeping the engine cool?

Ability of Coolant to dissipate engine heat

Voltmeter Is enough energy being applied to the other important systems?

Ability to Support other Control and Comfort Systems

To establish the importance of building trust through capability and visibility.

To establish the potential value of a project control room that monitors project conditions.

To identify the types of metrics that should be monitored by project control room.

To show how CAI has responded to this challenge (and benefited from it).

To suggest a familiar framework to describe the measures that matter.

Did We Accomplish Our Objectives?

One More Trusted Control Room