Introduction To Integration Project Management Methodology No. M14 August, 2000.

Introduction To Integration Project Management

Methodology No. M14

August, 2000

2

Contents

• Purpose and Objectives

• Critical Success Factors & Pitfalls

• Planning & Monitoring Formats

• Tasks, Work Breakdown Structure & Resource Assignment

• Role of the Integration Management Office (IMO)

3

Purpose & Objectives

• Explore fundamental tools and techniques

• Illustrate principles of project management

• Demonstrate the value of using project planning tools and techniques

• Provide simple guidelines to facilitate the use of project planning

• Illustrate the reasons to invest the time required to do effective planning

4

Effective Project Planning: Critical Success Factors

• Start the planning process early (prior to closing if possible)

• Link the business strategy to tactical planning

• Describe the overall integration plan (for various constituents across both businesses)

• Manage planning and execution rigorously

• Document the impact to the business

• Communicate frequently, clearly and uniformly

• Involve and mobilize employees

• Plan-Do-Review

• Address efforts proactively and avoid firefighting

5

Pitfalls: When Companies Fail to Plan Effectively

• Employee uncertainty and frustration can negatively impact customers and stakeholders (value destruction)

• Organizational turmoil may increase unwanted employee turnover

• Managers spend too much time on minutiae, firefighting or employee concerns instead of the key activities

• The integration time line may become understated, while expected benefits become delayed or unrealized

6

Integration Program Management: Key Planning/Monitoring Formats

M O N I T O R I N GM O N I T O R I N GM O N I T O R I N GM O N I T O R I N G

FlashReports

PlanningMatrix

BenefitsTracking

ActivityWork Plans

TeamCharters

IssuesLog

StatusReports

FunctionalSynergy

Worksheets

Commun.NeedsLog

P L A N N I N GP L A N N I N GP L A N N I N GP L A N N I N G

7

Primary Uses For Each Of The Planning/Monitoring Formats

Planning Matrix Provides a description of the end state for each functional/process area, and acts as a roadmap for the business integration effort. Team Charters Provides context for the teams reason for being. Identifies the high level what, why, when and how of each integration team. Activity Workplans Provides the work breakdown, dependencies, deliverable and timing associated with each team effort. The essence of each team plan would be rolled up into an overall integration master plan. Functional Synergy Worksheets Provides a standard format for documenting estimates of revenue enhancing, cost reduction or cash flow enhancing improvements anticipated from integration team activities. Status Report Provides a vehicle to monitor the extent to which program activities have been completed. Flash Report Provides a less formal format for reporting progress in a bullet format. Captures thoughts for a discrete period of time on key accomplishments, team “temperature”, issues and concerns, and next steps. Benefits Tracking Provides a format to track actual benefits achieved versus estimates Issue Log Provides a mechanism to identify progress limiting issues and track their resolution Communications Needs Log Provides a vehicle to identify topics that need to be communicated to different constituencies. This is a major input to the program office in their effort to disseminate program information.

8

Planning/Monitoring Formats: Integration Planning Matrix

Purpose:• Provides a format to describe the intended end state for each functional/process area, and

acts as a roadmap for the business integration effort

• Provides the first comprehensive view of an integrated end state and anticipated benefits

Integration Area (Department, Function,

Process)

End State Concept Of Business

(Operations, Organization, IS) In

teg

rati

on

C

om

ple

xity

(H

,M,L

)

Bu

sin

ess

Ris

k (H

,M,L

)

Op

po

rtu

nit

y (H

,M,L

)

Total Budgeted

Headcount Target Benefits

Target Integration

Date Key Integration StepsIssues, Dependencies,

Gating Factors

The HowThe How

The Why

The WhyThe WhatThe What

By department,function or process

How the business will operatewhen integrated (e.g., consolidated,integrated, centralized/decentralized,etc.)

Preliminary projectprioritization; Resource/skills assessment; Riskmanagement

Quantification ofopportunities; Reality checkof consolidation/ integrationplans

What phases or interim steps are required to get to the end state

What activities must other integration areas(units) perform (complete) before thisintegration area can begin/complete particulartasks. What external factors may impact progress (e.g., regulatory gating issues)

Integration Area (Department, Function,

Process)

End State Concept Of Business

(Operations, Organization, IS) In

teg

rati

on

C

om

ple

xity

(H

,M,L

)

Bu

sin

ess

Ris

k (H

,M,L

)

Op

po

rtu

nit

y (H

,M,L

)

Total Budgeted

Headcount Target Benefits

Target Integration

Date Key Integration StepsIssues, Dependencies,

Gating Factors

The HowThe How

The Why

The WhyThe WhatThe What

By department,function or processBy department,function or process










What phases or interim steps are required to get to the end stateWhat phases or interim steps are required to get to the end stateWhat phases or interim steps are required to get to the end state




9

Planning/Monitoring Formats: Work Team Charters

MeasuresMeasures

Key Key ActivitiesActivities

R & R’sR & R’s

Schedule Schedule of Workof Work

BudgetsBudgetsBenefitsBenefits

Deliverables

MilestonesMilestones

Process Process LogicLogic

SponsorSponsor

Critical Critical Success Success

FactorsFactors

ObjectivesObjectivesMissionMission

Results

WorkTeam

CriticalCriticalIssuesIssues

ManagerManager

End State Vision / Description of Objectives

Topics of Focus

Skills/Resources Required

Dependencies & Critical Success Factors

Major Activities / Milestones

Business Benefits / Measures

Overall Timing

Charter Outline:

MeasuresMeasures


R & R’sR & R’s



Deliverables



SponsorSponsor


FactorsFactors


Results

WorkTeam


ManagerManager

MeasuresMeasures


R & R’sR & R’s



Deliverables



SponsorSponsor


FactorsFactors


Results

WorkTeam


ManagerManager

End State Vision / Description of Objectives

Topics of Focus

Skills/Resources Required

Dependencies & Critical Success Factors

Major Activities / Milestones

Business Benefits / Measures

Overall Timing

Charter Outline:

10

Purpose:• Provides context for the teams reason

for being

• Identifies the WHY, WHAT, WHO and WHEN for team activity at a very high level.

Planning/Monitoring Formats: Work Team Charters

WORK TEAM CHARTER

TEAM/FOCUS AREA:

LEADER:

END STATE VISION / DESCRIPTION OF OBJECTIVES:

TOPICS OF FOCUS:

SKILLS/RESOURCES REQUIRED:

DEPENDENCIES & CFSs:

MAJOR ACTIVITIES & MILESTONES:BUSINESS BENEFITS:

BUSINESS BENEFITS / KEY MEASURES:

OVERALL TIMING:

11

Planning/Monitoring Formats: Activity Work Plans

Act. No.

Responsible Person(s) Start Date End Date Dependencies

Work Breakdown Structure - Activity/Task Description

ACTIVITY WORK PLAN

TEAM LEADER:

TEAM/SUB-TEAM:

Purpose:

• Provides the work breakdown and timing for the integration program

• Provides timing, dependencies and primary responsibility for each activity

12

Purpose:Provides a standard format for documenting estimates of revenue enhancing, cost reduction or cash flow enhancing improvements anticipated from integration team activities

Planning/Monitoring Formats: Functional Synergy Worksheets

F u n c t i o n a l S y n e r g y W o r k s h e e t

( F u n t i o n ) - D e t a i l _ _ _ R e v e n u e E n h a n c e m e n t _ _ _ C o s t R e d u c t i o n _ _ _ C o s t A v o i d a n c e _ _ _ C a s h F l o w / U t i l i z a t i o n

Y e a r 1 Y e a r 2 Y e a r 3 Y e a r 4 Y e a r 5

N e t S y n e r g y - ( T i t l e / S u b j e c t )

$

$

$

$ $

S y n e r g y $

$

$

$ $

A s s i m i l a t i o n C o s t s

$ $ $ $ $

R e c u r r i n g C o s t o f B e n e f i t - R e l a t e d A c t i v i t i e s $ $ $ $ $

A s - I s T o - B e

A c t i o n S t e p s a n d T i m i n g : R i s k s : R e p o r t i n g ( H o w t o M e a s u r e ) :

Detail

13



( F u n c t i o n ) - S u m m a r y

Y e a r 1 Y e a r 2 Y e a r 3 Y e a r 4 Y e a r 5 N e t S y n e r g i e s / I m p a c t 1 . 2 . 3 . 4 . 5 . 6 . 7 . 8 . 9 . 1 0 . 1 1 . 1 2 . 1 3 . 1 4 .

T y p e *

$ $ $

$ $ $

$ $ $

$ $ $

$ $ $

T o t a l N e t S y n e r g i e s

$

$

$

$

$

T y p e : ( R E ) R e v e n u e E n h a n c e m e n t ; ( C R ) C o s t R e d u c t i o n ; ( C A ) C o s t A v o i d a n c e ; ( C F U ) C a s h F l o w / U t i l i z a t i o n

Summary

14



( F u n c t i o n ) - O v e r v i e w

Y e a r 1 Y e a r 2 Y e a r 3 Y e a r 4 Y e a r 5 C o n s o l i d a t e d S y n e r g i e s S y n e r g y B e n e f i t s A s s i m i l a t i o n C o s t s C o s t s o f B e n e f i t - R e l a t e d A c t i v i t i e s

$ $ $

$ $ $

$ $ $

$ $ $

$ $ $

N e t S y n e r g y

$

$

$

$

$

( F u n c t i o n ) - S u m m a r y

Overview

15

Planning/Monitoring Formats: Status Reports

Act. No.

Responsible Person(s) Start Date End Date

Estimated % Complete Comments

Work Breakdown Structure - Activity/Task Description

TEAM STATUS REPORT

TEAM LEADER:

TEAM/SUB-TEAM: STATUS DATE:

Purpose:• Provides a periodic update of the extent to which

work plan activities are complete

• Provides clarifying commentary regarding activity status as required

16

Planning/Monitoring Formats: Flash Reports

Purpose:

• Provides a high level bullet-point update of team events and progress for a particular timeframe

• Provides a vehicle to surface progress-limiting issues

WORK TEAM FLASH REPORT

TEAM:

STATUS DATE:

KEY ACCOMPLISHMENTS:

TEAM “TEMPERATURE”:

ISSUES & CONCERNS:

NEXT STEPS:

17

Planning/Monitoring Formats: Benefits Tracking Log

Oppty. No. R

ev. G

row

th

Co

st A

void

Co

st R

edu

ct

Cas

h F

low

Description of Benefit Team/Resp.Value ($000)

Implement Due Date

Q1 ($000)

Q2 ($000)

Q3 ($000)

Q4 ($000)

Q1 ($000)

Q2 ($000)

Type Benefits Realized

BENEFITS LOG

Purpose:

To provide a format to track benefits expected, responsible personnel, and timeline. Specific responsibility and timeframes should be assigned.

18

Planning/Monitoring Formats: Issue Log

ISSUE LOG

Issue # Issue DescriptionSubmitted By (Person/Team) Assigned To

Date Opened

Date Closed Resolution

Purpose:

To provide a format to track issues that are outside the control of a single team, and that will inhibit progress unless resolved

19

Planning/Monitoring Formats: Communications Needs Log

COMMUNICATIONS NEEDS LOG

Item # Topic/Message AudienceDate

RequestedDraft

Responsibility Disposition

Purpose:

• Provide a vehicle to identify topics that need to be communicated to either internal or external constituencies

• Provide a major input to the program office in their effort to disseminate program information

• Provide a major input to the program office in their effort to disseminate program information

20

Project Planning Stages: Overview

Elements of Work

Work BreakdownStructure

What Really Needs to be Done?• Identifying key milestones• Defining phases/tasks/activities

Defining Project Dimensions• WBS structure tree• Identifying major topics of focus

Assigning Resources• Skills Inventory• Responsibility Matrix• Scheduled refinement

Getting WhoYou Need

Definition ofDependencies

What Needs to be in Place First?• Understanding predecessor relationships• Sequencing & preliminary schedules

Work Breakdown Structure(WBS)

Work Breakdown Structure(WBS)

22

Objectives:

Work Breakdown Structure

• To establish a common method to divide complex, multi-faceted programs into a consistent set of dimensions

• To enable viewing a project plan in a hierarchical (taxonomic) order

• To provide a structure to break larger efforts (e.g., phases, deliverables) into more discrete building elements (i.e. tasks, activities, action steps)

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• List the dimensions in which people will be doing work By Team, By Geographic Area, By Topic, By Deliverable, By Phase, By Activity, etc.

• Decide by which dimensions you will potentially want to “slice” (view) the ultimate work plan (e.g., all work happening in Asia)

• Rationalize and standardize on a common set of planning dimensions

• Organize these dimensions into a standard hierarchy

• Orient all team leaders to the standard work breakdown hierarchy to which all project plans will conform

Approach:

Work Breakdown Structure

24

Work Breakdown Structure Tree Chart

Team

Sub-Team

Geography

Topic Of Focus

Note: Work Breakdown Structures set the stage for resource planning, roles and responsibility mapping and identifying interdependencies to other integration deliverables

1.

1.1 1.2

1.2.1 1.2.2 1.2.3 1.2.4

1.2.4.1 1.2.4.2 1.2.4.3 1.2.4.4 1.2.4.5 1.2.4.6

Etc. The lowest levels of the hierarchy represent the actual work. . . Phases, Activities and Tasks

The lowest levels of the hierarchy represent the actual work. . . Phases, Activities and Tasks

25

Work Breakdown Structure Example

Country Specific

InformationTechnology

CustomerCommitment

Finance &Administration

CorporateDriven

ProcessesManufacturing

Communica-tions

ProjectManagement

People&

Properties

Strategic/OperationalDirection

ImplementationDevelopment“End State” /Requirements

Definition

“As-Is”Assessment

Stabilizing / Parallel Operations Consolidating / Integrating / Transforming

Asia/PacificEMEACorporate/

Global

CanadaLatin

America

Transition/Shared

Services

FacilitiesHuman

ResourcesTraining

FleetManagement

EmployeeBenefits

EmployeeEvaluation/

Selection Proc.

RetentionProcess

Job Classificatn/ Career Path

HRInformation

Systems

Outplacement

PayrollAdministration

Policies &Procedures

Terms &Conditions ofEmployment

LaborRelations

Compensation

Recruitment/Staffing

Etc.

Topics of

Focus

Activities & Tasks

Geographic Dimension

Team/Sub-Team

Country Specific

InformationTechnology

CustomerCommitment

Finance &Administration

CorporateDriven

ProcessesManufacturing

Communica-tions

ProjectManagement

People&

Properties

Strategic/OperationalDirection


Definition



Definition


Stabilizing / Parallel Operations Consolidating / Integrating / Transforming

Asia/PacificEMEACorporate/

Global

CanadaLatin

America

Transition/Shared

Services

FacilitiesHuman

ResourcesTraining

FleetManagement

FacilitiesHuman

ResourcesTraining

FleetManagement

EmployeeBenefits

EmployeeEvaluation/

Selection Proc.

RetentionProcess

Job Classificatn/ Career Path

HRInformation

Systems

Outplacement

PayrollAdministration

Policies &Procedures

Terms &Conditions ofEmployment

LaborRelations

Compensation

Recruitment/Staffing

Etc.

Topics of

Focus

Activities & Tasks

Geographic Dimension

Team/Sub-Team

1.

1.1

1.1.1

1.1.1.1

1.1.1.1.1

1.1.1.1.1.1

26

Example: Work Plan Using A Pre-Defined Work Breakdown Structure

Note the use of left to right indentation to accentuate the WBS hierarchy

Team

Sub-Team

Region

Country

Topic of Focus

Activities

Activity#1. People & Properties

1.1 Facilities

1.1.1 Global/Corporate

1.1.1.1.1 Base level Real Estate Organization1.1.1.1.1.1 Engage Real Estate Management Team (REMT)1.1.1.1.1.2 Prepare an agenda of needs for the REMT meeting1.1.1.1.1.3 Review/adjust REMT approach1.1.1.1.1.4 Set up structure required to manage Int'l R.E. Process1.1.1.1.1.5 Standarize facilities approach (Process Plan)1.1.1.1.1.6 Set up pyramid structure required for (5) R.E. Project Mgrs1.1.1.1.1.7 Assign the needs for facilities in each country to (x) brokers1.1.1.1.1.8 Obtain the names of the country managers1.1.1.1.1.9 Train the permanent International Real Estate associates1.1.1.1.1.10 Train the International Real Estate Project Managers1.1.1.1.1.11 Train the Delphi Country Managers

1.1.1.1.2 Planning Needs1.1.1.1.2.1 Develop a list of countries that require a facility1.1.1.1.2.2 Establish the priority for facilities1.1.1.1.2.3 Develop a master working schedule and dates1.1.1.1.2.4 Develop a master status report

1.1.2 EMEA1.1.2.1 Austria1.1.2.1.1 Develop preliminary space plan1.1.2.1.2 Perform project verification1.1.2.1.3 Select site1.1.2.1.4 Negotiate lease/rent arrangements1.1.2.1.5 Specify interior requirements1.1.2.1.6 Design interior of facitlity/Develop construction plans1.1.2.1.7 Approve design1.1.2.1.8 Approve R.A.1.1.2.1.9 Execute lease1.1.2.1.10 Order furniture and equipment1.1.2.1.11 Construct facility ("Build Out")1.1.2.1.12 Relocate to new facility1.1.2.1.13 Close out process

1.1.2.2 Belgium

Etc.

Activities/Tasks

Elements of WorkElements of Work

28

Elements of Work

Shared Service Center Operational

Define Organization Structure

Identify Open Positions

Recruit for Open Positions

Train Staff

MilestonesInterim goals that are used to trackthe progress of the project. Theseevents typically represent the beginning or end of a phase.

MilestonesInterim goals that are used to trackthe progress of the project. Theseevents typically represent the beginning or end of a phase.

PhasesA phase represents major stages ofThe project. It consists of a group of related tasks. Breaking the project Into phases allows you to focus on One aspect of the project at a time.

PhasesA phase represents major stages ofThe project. It consists of a group of related tasks. Breaking the project Into phases allows you to focus on One aspect of the project at a time.

Tasks/ActivitiesA task represents actual work that will be done on your project. Completion of task moves the project forward measurably.

Tasks/ActivitiesA task represents actual work that will be done on your project. Completion of task moves the project forward measurably.

As-Is Assessment

Requirements Definition

Development

Implementation

Examples

29

Remember: The Bottom-Level Tasks Should. . .

• Have a tangible or measurable output/ outcome

• Be unambiguous

• Work within the same task should occur within a sequential or parallel time frame or order

• Should only include related work elements

• Have identifiable and readily available inputs

• Be a finite, manageable unit of work

• Require a limited number of resources - most steps should have a single team member responsible

• Fit into the natural order of work progression

Definition of DependenciesDefinition of Dependencies

31

Types Of Dependencies

Finish-to-Start

Dependency TypeGantt Chart Depiction

Start-to-Start

Finish-to-Finish

Start-to-Finish

A task starts after its predecessor finishes

A task starts when its predecessor starts

A task finishes when its predecessor finishes

A task finishes after its predecessor starts

32

Determining Task Dependencies: An Example Of Building A House

Task Node: Implies Work Effort Exerted and Deliverable Completed

Dependency Arrow: Shows Task Relationships from Predecessor to Successor

GradeLand Rough In

Electrical

Dig/PourFoundation

Paint Exterior

Frame House

Rough InPlumbing

PaintInterior

InstallWindows &

Siding

InstallRoof

FinishWalls

MoveIn

33

Guidelines for Validating Task Interdependence

For each task, ask:

• What must be done before?

• What can be done at the same time?

• What will be done after? A

A

A

Assigning ResourcesAssigning Resources

Objectives:

To introduce a structured approach to participative management and informed decision making. To establish clear work roles in a framework that facilitates work assignment, management, measuring and alignment.

To offer a logical process that lays out work deliverables and tasks to be performed, then assigns accountability, responsibility, contribution expectations and identifies who needs to be informed that these activities are going on.

ARCI is an iterative and empowering process that resolves ambiguities, omissions, redundancies and confusion surrounding work assignment and performance.

Roles and Responsibility Mapping:

Accountability: Makes the DecisionThe person ultimately accountable. Includes strategic authority, yes-no, vetoand assignment powers, and final approval.

Responsibility: Perform the workThe person(s) assigned the job by the “A”. Includes tactical responsibility for doing the work and completing the tasks.

Contribute: Communicate the work (2-way)The person(s) who provide special support or should be consulted in making decisions or doing work.

Inform: Socialize the Work (1-way)The person(s) needing to be informed at key decision points during the work. The work’sproviders, customers and beneficiaries.

A

I

C

R

Roles and Responsibility Mapping (ARCI) Key Definitions

37

1. Assess requirements

2. Design business system

3. Identify potential package options

4. Purchase package

5. Modify purchased package

6. Modify in-house procedures

7. etc.

8. etc.

9. etc.

10. etc.

11. etc.

12. etc.

Sample ARCI Matrix.

A AccountableR ResponsibleC Contribute I Inform

Marty B

Don M.

Nancy S

Ed WLaurie

M

Scott W

Will

BDoc P

rod

A

A

R

R

A,R

A.R

A,R

A.R

A

A.R

R

R

A.R

A,R

R

R

R C

R

Bob L

Sharon C

C

C

By Individual

Accountable

Inform InformRespon-

sible

Contribute

38

Integration Management Office

The Integration Management Office will be the “nerve center” for the integration program

The Integration Management Office will be the “nerve center” for the integration program

IMO Protocols IMO Protocols

Functional Integration Teams

Divisional Executive GroupDivisional Executive Group

Master P

lanning

Master P

lanning

Communicatio

n

Communicatio

n

Benefits/B

udget Track

ing

Benefits/B

udget Track

ing

Perform

ance M

easures

Perform

ance M

easures

Roles & R

esponsib

ilities

Roles & R

esponsib

ilities

Decisions

Decisions

Cross-Company Resources

Engineering:

Purchasing:

PC&L:

IS&S:

HR:

Finance:

Mfg/Ops

Facilities

ERPQuick Hits

Change ManagementTraining and Skills Transfer

Implementation ManagementProject Planning and Scheduling

Measures, Tracking and ReportingKnowledge Capture and ManagementCommunications and Culture-Building

ERPQuick Hits

Change ManagementTraining and Skills Transfer

Implementation ManagementProject Planning and Scheduling

Measures, Tracking and ReportingKnowledge Capture and ManagementCommunications and Culture-Building

Issues L

og

Issues L

og

39

• Provide the physical and virtual environment to support:

• Program Management

• Communications

• Knowledge Sharing

• Provide the physical and psychological space for the Integration Manager and team members to conduct meetings, facilitate communications, maintain files and documents, resolve issues and prominently display progress

• Provide uniform global access of integration information to teams

• Provide visibility regarding program performance

• Provide the resources to orient/train integration participants and oversee consistent execution

Role & Responsibilities – Integration Management Office

• Ensure that roles & responsibilities are clearly articulated

• Provide a formal mechanism/cycle for program review

• Provide a “hot line” to the organization regarding integration activities

40

The Physical IMO Environment Should Prominently Display Plans and Progress

Example of “War Room” wall in the IMO

Project Approach Project Schedule Project Benefits

Early Win Scoreboard Project ARCI Weekly Flash Reports

Work Team Charter

X X X X X X X X X X X X X X X X X

Goal Goal Goal

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Introduction To Integration Project Management Methodology No. M14 August, 2000.

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