5 Ingredients in the EVM Secret SaucePractice Symposia (PS-01)

Chris BellVice President, Enterprise Project ManagementDeltekWednesday May, 27 – 1:30 PM to 2:15 PM

What Exactly Is In The EVM Secret Sauce?

To Find Out? You Have To Ask The Chefs

© 2009 Deltek, Inc.

What We Did

Phase I - Problem– Identify The Most Pervasive

Challenges Facing EV Practitioners

Phase II - Solutions– Collaborate On Most

Innovative Solutions To Those Challenges

Phase III - Measure– Interview Teams Who

Achieved Results

© 2009 Deltek, Inc.

How Do You Get Results?

© 2009 Deltek, Inc.

Truth& Candor

Phase I – The Challenges

Lack Mgmt Buy-In

Can’t Find Qualified People

InconsistencyAcross

Programs

Hard To Integrate Cost &

Schedule

Time Spent Reporting

© 2008 Deltek, Inc.

Lack Management Buy In – Phase I

© 2008 Deltek, Inc.

Have a Challenge

Getting PMs to Accept EVM

Lack Management Buy In – Phase II

© 2008 Deltek, Inc.

Create Best Practices

Using The First Ingredient

Demonstrate Success– Find a failure point and turn it around or choose a pilot project– Enroll the CFO– Measure your current progress and report on it

Executive Training– Bring in peers– Keep technocrats behind the scenes– Remember the Platinum Rule: “I may not be much but I’m all I think about”

Create Best Practices– Create an EV Council– Focus on how to act on information, not just create it

Compensation Tied To Performance– Pay, compensation, EVM “Black Belt” status tied to successful use of EVM

© 2009 Deltek, Inc.

Case Study - Spirit Aerosystems

Face The GiantsWe are doing okay with what we have?We have been using this for 200 years

Do not focus on the negativeOffer solutionsBe passionate

Find and develop a champion for the causeBe able to explain 5 Why’s

Ingredient 1 – Return On Investment

© 2009 Deltek, Inc.

EVMSecret Sauce

Earned Value Management Secret Sauce

• 2 Cups, Return On Investment (ROI) with dash of Executive Training

Can’t Find Qualified People – Phase I

© 2008 Deltek, Inc.

Not enough qualified people to

implement EVM

Can’t Find Qualified People – Phase II

© 2008 Deltek, Inc.

Groom internal

candidates

Using The Second Ingredient

Advertise– Not local newspapers, use trade magazines– Find specialty recruiters– Recruit at industry conferences (Exhibits are not just for software vendors and consultants!)

Network– New era or networking– LinkedIn, Facebook, Plaxo– Blog posts to EarnedValue.org, EVMSHelp.org and others

Train & Retain The Ones You Have– It costs much more to recruit and ramp than it does to give a retention bonus– Groom an interested CAM– Cross-train Schedulers and Cost Analysts

Use Staff Augmentation– Find staff augmentation firms (SM&A, MCR, Deltek and others)– Perfect solution for surge capacity (especially in this economy)

© 2009 Deltek, Inc.

The Magic of LinkedIn Is In The Groups!

DoD – 2,062

EVM – 922

Project Controls –507

PMI – 16,640

PMO – 4,865

And don’t forget..

© 2009 Deltek, Inc.

Post In Jobs Section In The Right Group

© 2009 Deltek, Inc.

Ingredient 2 – Recruiting & Staff Augmentation

© 2009 Deltek, Inc.

EVMSecret Sauce

Earned Value Management Secret Sauce

• 2 Cups, Return On Investment (ROI) with dash of Executive Training

• 1 Tablespoon of concentrated recruitment

Inconsistency Across Programs – Phase I

© 2008 Deltek, Inc.

Conflicting contract

requirements

Inconsistency Across Programs – Phase II

© 2008 Deltek, Inc.

Use Standard

Tools

Using The Third Ingredient

Standardize Processes– Write it down and share it! Use SOPs– Create a Center of Excellence– Standardize the output

Gain Management Support– Brief the Executive Team on the Center of Excellence– Create a single set of standardized management reports– Find a VP/GM champion

Use Standard Tools– Consolidation is making this easier– Data warehouses and dashboard can now pull data and display consistently

Influence Government– Apply same rules for ACAT I to ACAT IIs and others– Join forces with NDIA– DCMA to improve relationship with non defense agencies

© 2009 Deltek, Inc.

Case Study

© 2009 Deltek, Inc.

As Presented At NDIA – PMSC by Kathleen Hedges, SVPMay 20, 2009Can Speak With Dan Butler For More Information

Ingredient 3 – Center of Excellence

© 2009 Deltek, Inc.

EVMSecret Sauce

Earned Value Management Secret Sauce

• 2 Cups, Return On Investment (ROI) with dash of Executive Training

• 1 Tablespoon of concentrated recruitment

• 1 whole Center of Excellence, thoroughly blended

Cost & Schedule Integration – Phase I

© 2008 Deltek, Inc.

Need a simple,

reliable EVM tool

Inconsistency Across Programs – Phase II

© 2008 Deltek, Inc.

Integrate the capture and

delivery teams

Using The Forth Ingredient

Standardize Structures– Prepare estimates that agree with project WBS– Use a single program structure

Integrate Capture & Delivery Teams– EV focal points must consult and advise during the proposal phase, not after the fact– Reduce separate files for adding cost / scope

Converge The Schedule Manager & The Cost Manager– Cross train. Cross train. Cross train.– Comingle your personnel. Consider the “Scrum Method”

Evolve The Applications Onto One Database– Apply pressure on vendors to provide both cost AND schedule. – Look for solutions that use UN/CEFACT XML and contribute to data warehouses – Ask for dashboard solutions

© 2009 Deltek, Inc.

26

Portal

YourInfrastructure

Application Servers Database

Common Services

JSR 168 Portlets

Extensibility

SharePointWeb Parts

Services BusWeb Services

• Suite wide interoperability• Unified design improves

usability • Common security reduces

total cost of ownership• Built on Deltek .NET

platform

Common  EPM Business Layer

ScheduleManagement

Cost Management

Earned ValueAnalytics

RiskManagement

Resource Management

Smart Client Mobile Clients Microsoft Office Multi-Platform

Presentation Layer

Role‐Based Dashboards

Ingredient 4 – Cost & Schedule Integration

© 2009 Deltek, Inc.

EVMSecret Sauce

Earned Value Management Secret Sauce

• 2 Cups, Return On Investment (ROI) with dash of Executive Training

• 1 Tablespoon of concentrated recruitment

• 1 whole Center of Excellence, thoroughly blended

• Combine 1 teaspoon of cost and 1 teaspoon of schedule

Time Spent Reporting – Phase I

© 2008 Deltek, Inc.

I wish they would all

just use the same report

Time Spent Reporting – Phase II

© 2008 Deltek, Inc.

Automate everything

Using The Fifth Ingredient

Standardize Reports– On the EV Center of Excellence, focus attention on common output– Build consensus with management on the key set of reports

Automate Everything– Use batch reporting– Leverage Earned Value analytics solutions– Let dashboard inform teams, not just other program controls professionals

Transition From Report Maker To Program Advisor– Report maker = marginal value– Program advisor = high value– Surprise avoider & performance optimizer = hero

© 2009 Deltek, Inc.

Ingredient 5 – Dashboard

© 2009 Deltek, Inc.

EVMSecret Sauce

Earned Value Management Secret Sauce

• 2 Cups, Return On Investment (ROI) with dash of Executive Training

• 1 Tablespoon of concentrated recruitment

• 1 whole Center of Excellence, thoroughly blended

• Combine 1 teaspoon of cost and 1 teaspoon of schedule

• Layer on top 1 thin dashboard

Ingredient 5 – Dashboard

© 2009 Deltek, Inc.

EVMSecret Sauce

Earned Value Management Secret Sauce

• 2 Cups, Return On Investment (ROI) with dash of Executive Training

• 1 Tablespoon of concentrated recruitment

• 1 whole Center of Excellence, thoroughly blended

• Combine 1 teaspoon of cost and 1 teaspoon of schedule

• Layer on top 1 thin dashboard

Take all ingredients and place them on the table. Wisk thoroughly using a bat (if necessary). Once blended, place in the over for one year. Remove from oven and do not allow to cool off. Consume immediately.

© 2009 Deltek, Inc.

© 2007 Deltek, Inc.

Questions? Please Contact Me!Chris Bell, Vice President, EPM Market Managementchrisbell@deltek.com

Top Challenges Facing Program Controls ProfessionalsIntegrated Program Management Workshop Results

Lack Of Buy‐In / Management Support Finding Qualified People

I have challenges finding people who really understand EV.

The challenge of getting teams to work together.

Challenge is how to use EV in the service environment.

Not enough personnel to help implement EV on programs.

Difficulty with people who want to free‐lance on standard work.

Harnessing Ego's

Lack of executive management understanding of current EVM environment

Proving to doubters that EVM works (cost/benefit)

Sharing of information across companies/organizations

I have challenges helping program managers understand value of integrated program management

Workshop Objective: Develop solutions to the top 4 challenges facing program controls professionals.

Phase I ‐ Review the results from the 2007 IPM Conference that documents the top 5 challenges expressed by program controls and earned value practitioners. Then, each table will be assigned 1 or 2 problems to solve. Individually, write at least 10 solutions or best practices that you can use to solve the problem you have been assigned. Be specific. Be creative.

Phase II ‐ Working as a team, map your solutions on the flip chart and discuss as a team. Map like ideas together. If you notice a sequence, innovative ideas, a clear best practice, please be prepared to share this with the rest of the group. Upon completion, please choose a table spokesperson.

Top Challenges Workshop Results

I have challenges getting a process owner for EVM that will truly champion the process

I have trouble getting EVM accepted within the culture of a company

11/18/2008 1 © 2008 Deltek, Inc.

I have challenges finding skilled schedulers

I have challenges to fill staff position.

I have challenges sourcing human resource.

I find it difficult to locate qualified people.

Challenged to build good succession plans for staff members nearing retirement age.

Challenged by increasing work loads & shrinking staff.

Challenge to maintain and institutionalize EVM implementation at my agency.

Challenges to keep employees motivated.

Finding competent motivated employees

Provide training for critical issues ‐ need crops up ‐ no time to react.

I have difficulty getting accurate data from sources who don't understand/respect EV/Risk.

I have difficulty getting the right type of support.

Not enough personnel to meet demand for training.

We have trouble with customers giving direction with EV compliance consequences

Harnessing Ego's.

Interface with programs getting with "inner core" to help fix issues.

I see too much superfluous variance analysis without follow up

I struggle with Engineering and gaining their acceptance of EV as a management tool

I have a challenge being taken seriously

I have a hard time getting senior management to look at big picture issues instead of non‐critical issues

I have a challenge getting PMs to accept EVM

PM's failure to believe EVMS can improve project execution

Management buy‐in to EV meaning and value

I have trouble getting management support

I have trouble getting across the idea that an EVMS is more than software

I have a problem with convincing a scientist that EV has value

Challenge to understand EAC development

of integrated program management

Lack of interest from the RM community

EVMS viewed as a step child

11/18/2008 1 © 2008 Deltek, Inc.

Top Challenges Facing Program Controls ProfessionalsIntegrated Program Management Workshop Results

Communication between schedulers and plannersChallenges integrate customer estimator with EVM ‐ perhaps the common denominator is risk and cost risk?

We have friction between the cost and scheduling communities

I have challenges getting people to understand the value of planning and risk management/opp planning

Difficulty integrating with other functions re: EV practicesEnsuring common WBS structures between cost estimates and EVM reporting

I have a hard time getting all organizations to agree to pursue in one direction Integrating cost estimating and EVM

I have a hard time getting cost/schedule collaborationImproving cost estimating/project manager communication by using resource allocation matrix to link products and functions

I have trouble with policy not being enforced/observed Lack of tools integration

We have a problem getting programs to follow procedures Find a simple, reliable EVM tool

Challenge for program to follow change control processI have a challenge with time for software suite evaluation for advancing technology approach

I have a hard time getting co‐workers following process within guidelines

Challenge to lay out realistic work packages. Most of the time, not a realistic schedule

I have a challenge to think "one company" on some aspect of application instead of just one program or site

I have trouble with use of critical chain in an EVM reporting environment

I have a hard time telling IPTs to trust EVMSI have the challenge to convince people that % complete is not the only PMT

Consistency Across Programs Difficult to Integrate Cost & Schedule

I'm challenged to streamline processes (reporting) and standardizing formats while satisfying PMOs Challenge to team to develop schedules without constraints

11/18/2008 2 © 2008 Deltek, Inc.

Confusing/conflicting contract requirements

Understanding new DCMA objectives/approach

No single point for adjudication of disputes

Figuring out the best way to conduct independent EAC reviews

Inconsistent/unclear validation/surveillance requirements Integrate the baseline with cost & schedule.

Define cost/schedule integration & give guidance to programs.

Cost & Schedule integration.

I have trouble implementing EVM because of poor business process.

Integration of EAC fluctuations with risk = EAC growth results in Risk reduction.

DoD legacy practices Incorporate risk into EAC & PMB.

I have trouble with the DCMA being too prescriptive Integrate Business & PM functions.

I don't have an effective portfolio mgt tool. I had problems getting a good schedule

I have a challenge taking program success to the enterprise level. Manpower application with schedule teams

I can't share EV data across multi countries well. Schedule integration with budget

communities planning and risk management/opp planning

I have challenges just reporting vs. management.  CPI/SPI vs. decision making Need for stronger industry integration/positions

11/18/2008 2 © 2008 Deltek, Inc.