7/14/2008 On Target Program Management Solutions 1 Tailoring Project Management Processes Increasing...

7/14/2008 On Target Program Management Solutions

1

Tailoring Project Management Processes

Increasing The Efficiency Of Projects


2

Overview

• Background• The Problem• The Journey to Tailored PM Processes• Tailored PM Processes

– Classification – Process Selection – Example

• Suggested Implementation Steps • Questions/Discussion


3

Background


4

My Background

• Education/Training:– MS Systems Management, USC– Defense Systems Management College– Many other PM short courses

• USAF Program Manager – EW/reconnaissance/intelligence program– Staff in Pentagon HQ USAF R&D– Acquisition consultant to senior AF leadership


5

My Background, cont’d

– USAF PMO Director• Unmanned Air Vehicle Program• F-16 R&D & logistics


6

My Background, cont’d

• For-Profit Project Management – PM for electronics test systems (RF

Integrated Chip, transmitter/receiver, satellites, avionics, national spectrum monitoring, etc.)

– PM for wireless base station mfg test systems– Wireless test system business manager/PMO

director – Aerospace/defense systems PMO Director– PM Consultant


7

The Problem


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The Problem

• Consistent, common process issue encountered in every one of my PM organizations: How do you reasonably provide a PM with

process flexibility that allows him/her to effectively and efficiently run a project while maintaining reasonable:

- Management oversight- Functional responsibility & accountability- Executive decision-making prerogatives


9

The Journey


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Journey to the Solution

• PMO basic PM processes and training

• Reorganization #1 result: best practices menu, “multiple processes” approach

• Reorganization #2 result: worst case cookbook, “single process” approach

• Reorganization #3 result: limited, flexible menu, “tailored processes” approach


11

PMO Situation (1999)

• Project teams develop and deliver unique systems to a wide range of customers– US and foreign government agency contracts – DOD prime contractors & subcontractors– Commercial vendors in a wide variety of

different industries– None are “off-the-shelf”, all require some

design and customization


12

PMO & Projects, cont’d

• Projects range widely in size and complexity ($100K - $12M)

• Some customers are concerned about cutting edge technical performance, others with schedule and/or price

• Essential PM processes and skills documented and training provided


13

Reorganization #1

• Company reorganization in 2000– Resulted in world-wide geographically

dispersed organization with variety of system products, PM processes and maturity levels

– Results of historical “fiefdom” organizational style

• 35 product lines within 8 organizations located at 10 different locations


14

Reorganization #1

• Senior management understood the need for process improvements

• Tiger Team formed to address PM processes


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Tiger Team Results (2001)

• Year-long tiger team completed documentation of “best practices” PM and associated processes – Full “cookbook” of processes and techniques

successfully used within the organization’s 35 system product lines

– Significant training for PMs and team members developed & delivered to ensure the organization understood alternative PM processes available


16

Process Journey

MATURITY

TIME

MULTIPLEPROCESSES


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Reorganization #2 (2002)

• Another reorganization was put in place to simplify range of products and reduce geographic dispersion

• Chance to fix major complaints of stakeholders and team members:– Inconsistent PM process applications – Project results (cost, schedule, performance)

weren’t improving as a result of initial process improvements


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Reorg #2 PM Processes

• Single set of PM processes developed – Menu of the best practices with associated

tools and techniques – “Worst case” approach—documented

processes applicable to largest, most complex projects


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Process Journey

MATURITY

TIME

MULTIPLEPROCESSES

SINGLEPROCESS


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Benefits of a Single Set of Processes

• One set may be considered a real win in some organizations

• The organization is aligned with a set of known processes and expectations for their use

• Training is minimized • Basically, life is predictable!• But…


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Drawbacks of a Single Set of Processes

• If there are widely different size and complexity in projects:– Small, less complex projects may be saddled

with processes that impede the completion and waste the organization’s resources

– Larger, more complex projects may not have the oversight appropriate to the criticality to the organization and the risk to the organization if it isn’t successful


22

Symptoms

• Team members on a low complexity project grumble about wasting their time with non value-added activities that are mandated by the organization, and/or…

• Pressure to “cut costs to the bone” and eliminate important processes on a risky, highly complex project that is critical to the organization

THE ORGANIZATION CAN ENABLE OR IMPEDE – THIS IS IMPEDING!


23

Organizational ”Aha” Insight

• Senior management either enables the PMO which enables the PM who enables the project team or impedes ….– Enabling is exercising oversight appropriate to

the project importance and risk to the organization

– Enabling isn’t carte blanche approval or disinterest and it isn’t micromanagement…. , but it exists on various points on the continuum between them


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The Solution

• For PMOs with a diversity of projects, develop a flexible set of PM processes that are tailored for projects based on;– Project complexity– Project size

• Align the organization around these processes• Train and reinforce with the entire organization

on these processes, not just the project teams

SENIOR MANAGEMENT AND THE PMO CAN ENABLE!


25

Process Journey

MATURITY

TIME

MULTIPLEPROCESSES

SINGLEPROCESS

TAILOREDPROCESSES


26

Tailored Processes


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Tailored Process Needs

• Need a way to classify each project to know which set of alternative processes to use

• Need to clearly identify the processes to tailor, i.e., start out tailoring those that have a high payoff in terms of efficiency or effectiveness


28

Project Complexity vs Project Process Complexity

Project Processes

Pro

jec

t C

om

ple

xit

y

Ideal

Tailored

Single Process


29

Don’t Try This At Home Warning

• This example is to illustrate a methodology that can be applied to other organizations

• IT IS NOT A SOLUTION THAT CAN BE COPIED DIRECTLY AND APPLIED IN ANY OTHER SITUATION


30

Classification Development

• The organization analyzed the types of projects and products and came up with a simple test of 4 characteristics to determine if a project was low, medium or high on the complexity scale

• The complexity scale determined which set of processes the project would use


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Classification Factors

• Price

• Engineering Effort

• Contract Characteristics

• Customer Interaction


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Classification

Evaluation Factors Low Complexity Scale Project Characteristics

Medium Complexity Scale Project Characteristics

High Complexity Scale Project Characteristics

Estimated Price <$500K $500K - $1.5M >$1.5M

Design Effort (full time equiv)

<2 design engineers 2-4 design engineers >4 design engineers

Contract characteristics

Std terms and conditions, std technical effort (testing, support, documents, etc.)

Limited unique terms and requirements

Significant unique terms, technical reqts or support reqts


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Classification, cont’dEvaluation

FactorsLow Complexity Scale Project Characteristics

Medium Complexity Scale Project Characteristics

High Complexity Scale Project Characteristics

Customer Interaction

Teleconference reqts and design reviews, informal progress and interaction on technical issues. Formal acceptance tests

Face-to-face, formal reqts and design review. Weekly written status summaries, formally documented technical interchange meetings. Formal acceptance tests

Face-to-face, formal requirements review, preliminary and critical design reviews. Formal face-to-face mgt. reviews. Formal acceptance tests. Training/support on customer site.


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Classification Rules

• Use the highest complexity characteristic to classify project processes to be used

• Determine classification before doing the work breakdown structure for the proposal basis of estimate and have sponsor buy-in

• If the characteristics change later, re-evaluate the project processes to be used, as well as the cost, schedule and risk assessment


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Tailored Processes

• Goal: provide a clear set of standard processes and expectations documented for each of the three levels of complexity– Provide summaries of expected project team

actions as well as templates and tools to accomplish

– Forerunner of “lean” concept—eliminate non-value added activities


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Inputs to Selecting the Initial Processes for Tailoring

• Team members and stakeholders recommendations

• Resources required for different functions

• Organization’s core strengths and competitive advantages

• Results from retrospectives from previous projects


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Initial PMO Processes Tailored

• Number of formal decision points and associated decision-maker level

• Internal project information and documentation

• Product documentation

• Project external interfaces


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Decision-Making

• Non-negotiable: each project phase has a formal review before proceeding to next phase

• The effort and time for a review can vary widely, depending upon the formality and decision-making level

• Goal: tailor reviews and decision-makers appropriate to the project complexity


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Tailored Decision MakingProject Phase Decision Point Low Complexity Medium

ComplexityHigh Complexity

Investigation Resource Commitment. BM BM BM

Requirements Capture Proceed to Proposal. BM BM BM

Proposal Offer & Pricing. BM BM VP

Execution Project Start Up. X X BM

Preliminary Design. X X BM

Critical Design. BM BM BM

Production Readiness. PRM PRM PRM

Factory Acceptance. X X X

Implementation On-Site Installation & Acceptance Test. N/A X BM

Warranty & Support Retrospective. X X BM

X = PM BM = Business Manager PRM = Production Manager VP = Vice President N/A = No decision


40

Project Information & Process Documentation

• Internal, stakeholders and external info• Internal team documentation used to

communicate, manage, document– E-mail– Share drives, company data bases– Working papers

• Content important, format less important• Coordination, sign off, communication etc

is informal


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Project Information & Process Documentation, cont’d

• Formal team documentation used to communicate status, issues, etc. to stakeholders– E-mail or presentations

• Content and format both important

• Coordination, sign off, communication within the team is formal


42

Project Information & Process Documentation, cont’d

• Formal team documentation used to communicate status, issues, etc. to external entities– E-mail, contracts letters or presentations – Content and format both important

• Coordination, sign off, communication within the team and with stakeholders is formal


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Example ProcessInformation & Documentation Type Low Complexity Medium Complexity High Complexity

Decision Point Minutes X F F

Project Team Meeting Minutes X X X

Customer Meetings and Reviews E E E

Issues Tracking X X E

Action Item Status X X E

Project Plan X X E

Requirements Specifications X E E

Work Breakdown Structure X X E

Project Schedule X X E

Risk Assessments X X E

Support Strategy E E E

Resource Plan X X X

Project Contract, Terms & Conditions E E E

Partner Agreements E

X = Informal team information & documentation F = Formal team information & documentation to internal stakeholdersE = formal team information & documentation to external entities


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Example Process, cont’d

Information & Documentation Type Low Complexity Medium Complexity

High Complexity

Cost & Pricing Model F F F

Change Tracking (cost/schedule/ performance impacts)

E E E

Order F F F

Material List X X X

Project Budget X X X

Payment/Billings E E E

Acceptance Test Procedure X X E

Material Status Reporting X X X

X = Informal team information & documentationF = Formal team information & documentation to internal stakeholdersE = formal team information & documentation to external entities


45

Product Information

• Problem:– Engineering effort to required to document

new design features was very high– Drove project complexity, costs, schedules &

customer satisfaction issues

• Solution:– Standard product information format

developed that greatly streamlined the process for less complex projects


46

External Interfaces

• Includes customers, subcontractors, consultants, partner organizations, standards/verification entities, governmental or funding bodies

• When the number of external interfaces is more than 3-4, need to consider using a variety of tools to manage complex interfaces


47

Interface Management Tools

• Formal contractual/partner agreement documentation• Integrated project work breakdown structure and

schedule• Integrated risk management, issues management and

action item tracking processes• Integrated communication plan• Integrated project plan• Integrated change logs/control processes• Regular extended team meetings• Regular technical exchange meetings• Integrated management level project reviews


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Results

• PMs, team members AND Stakeholders have a good understanding of expectations re PM processes

• Processes are appropriate for project complexity and increases effectiveness and efficiency

• Schedule and budget performance metrics improved continuously for 2 years as measured in retrospectives


49

Implementation

• Evaluate projects and decide on the evaluation criteria and number of levels of the complexity scale

• Determine which processes have the highest payoff when tailored—don’t tackle the entire world of processes– Implies beginning with a set of processes that

are reasonably well understood and used – If no standard set of processes, more difficult

to decide what areas need to be tailored


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Implementation, cont’d

• Let the stakeholders, project team members and PMs critique it and incorporate their ideas

• Train everyone on the use and roll it out for use–then use it!

• Make usage part of the PM, team member and stakeholder performance evaluations


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Implementation, cont’d

• After 2 years of increasingly better project results, start tailoring the next set of processes and implement in the same way


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Summary

• Tailoring PM processes can yield greater efficiency and effectiveness in executing projects of varying complexity

• Tailored processes compliment project portfolio management theory that stresses having projects of varying size and importance to the organization

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