dr-manu-vora-effective-project-management-slides-1-20-16

Effective Project Management Dr. Manu K. Vora, ASQ CQE and Fellow Chairman and President, Business Excellence, Inc., USA Advisor of Eminence, Business Excellence, ASQ India, New Delhi, India Visiting Faculty, School of Professional Studies, Northwestern University, USA Visiting Faculty, Great Lakes Institute of Management, Chennai, India

ASQ India, LES Topic 6 Wednesday, 20 January, 2016, 9:30 am – 10:45 am IST

Introduction • • • • •

Define Project, Project Goals, and Project Management PM Discussion – Some Project Examples Project Failures Aggregate Project Plans Project Management Journey (The WOW Project): – Find & Create, Selling, Execute, Hand Off

• Project Management Journey • Project Management Tools • Best Practices: – Project Budget – Project Communication – Project Risk Management

• Best Practice Articles (HBR, MIT SMR, etc.)

• Q&A 2

Project • •

A project is a temporary, organized effort that creates a unique product, service, or plan.

Characteristics: – Single definable purpose (performance, cost, & schedule requirements) – Unique (one-time activity) – Temporary activity (limited time frame) – Cut across organizational lines (multiple professions/ organizations) – Unfamiliarity – uncertainty and risks – Something at stake when doing a project – Process of working to achieve a goal – distinct phases of project life cycle 3

Project • Some Examples: – Simple as the plan for an off-site retreat – few people – Complex as the construction of a medical center – many people working in one location or across continents – The Olympic Games – Producing a movie – Software development – Product development – ERP implementation

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Project Goals • Project Goals (Focus on all 3 project goals and control necessary tradeoffs among them): – Performance (meet customer requirements) – Budget (cost) – Schedule (timing)

• Successful Projects: – – – – –

Satisfied customer Deliverables given to customer on time Project team stayed within the budget and staffing allocations Team members increased their skills and knowledge as a result of the project The organization has benefitted from the lessons learned by the team 6

Project Goals: Performance, Cost, and Schedule

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Software Project Failure Statistics (The Standish CHAOS Report , UK – 1990, 2000, and 2009) Seer Galorath, June 7, 2008

Year

1994

2000

2009

Succeeded

16%

28%

32%

Failed

31%

23%

24%

Challenged

53%

49%

44%

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Cost of Software Project Failure (Worldwide cost of IT Failures: $6.2 Trillion, M. Krigsman, 12-22-2009)

Region

GDP (US Billions)

Annual Cost of IT Failure (US Billions)

World

69,800.00

6,180.48

USA

13,840.00

1,225.47

44.00

3.90

UK

2,260.00

200.11

Texas

1,250.00

110.68

New Zealand

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Is This Your Project Pipeline?

The Aggregate Project Plan Steven C. Wheelright & Kim B. Clark – HBR March-April, 1992, September 2003

New Core Product New Core Process

Process Change

Product Change Addition Next Generation

Enhancements

R&D Projects Breakthrough Projects Platform Projects

Incremental

Derivative Projects

How Project Leaders Can Overcome Crisis of Silence (Grenny et.al., MIT Sloan MR, Summer 2007)

Are team members pulling their weight ?

Are we honestly assessing progress & risks ?

Are we faithful to the process?

Is the Project Sponsor providing support?

Are we planning around facts?

Project Management • Project Management Definition: – The role of the Project Management is to integrate resources and tasks to achieve organizational goals

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Advantages of Project Management: – – – – – – – –

Avoids excessive work loads for few individuals Avoids cost overruns Builds the right skills or expertise for the project Avoids strained relationships among team members Prevents scope creep Avoids duplication of work Better use of limited resources Better visibility to manage deadlines 13

Project Management • Where is Project Management Appropriate?

– Unfamiliarity – one-of-a-kind undertakings – Magnitude of the effort – substantially more resources – Changing environment – rapidly changing environments – Interrelatedness – joint effort required – Reputation of the organization – better planning and control to reduce the odds of failure

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Project Management • Evolution of Project Management: – World War I (1914) – US Army developed Gantt Chart, a production scheduling and monitoring tool – World War II (1944) – Process flow diagram – 1957 – Critical Path Method (CPM) – DuPont Corporation – 1958 – Program Evaluation and Review Technique (PERT) – US Navy – 1967 – Graphical Evaluation and Review Technique (GERT) – computer simulation – 1960s – Cost Schedule Control Systems (CSCS) – US Federal Government (Defense & NASA) – 1970s – Earned Value Management for planning & tracking (EVM) US DoD 15

The WOW Project (Tom Peters, Fast Company.com, December 19, 2007)

Find & Create Handing Off

Selling

Execute

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The WOW Project • Finding & Creating your WOW Project: – – – –

Does it matter? (personal passion) See projects as a first-rate opportunity to add value Everything is a golden learning opportunity Use superfast approximations to refine your WOW project (3M – Make a little, try a little, sell a little)

• Selling your WOW Project: – – – –

Be smart, sell it hard from beginning to end Develop a 2 minutes elevator spiel Community organizing (Generate grass-roots support ) Build supporting community of endorsers 17

The WOW Project • Executing your WOW Project: – Execute in a series of rapid prototypes (fail often to succeed sooner) – Think, act, live, sleep, eat, and breath your time line

– Keep it fun – Don’t talk it to death – Don’t stop selling – Don’t lose the emotion

• Handing Off your WOW Project: – – – – –

Turnover to someone else to run on a day-to-day basis Celebrate your accomplishments Size up new opportunity Self evaluate (worked, didn’t work, lessons learned, etc.)

Open first chapter of your next project

The Project Life Cycle

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Project Management Journey • • • • •

Creating a Project Charter (Define & Create) Developing the Project Plan (Plan) Working as a Team (Plan and Execute) Doing the Project (Execute) Closing out the Project (Close Out)

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WBS

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Gantt Chart

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Critical Path Method

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Budget Control • Budget control is an important aspect of project management – Costs can exceed budget • Overly optimistic time estimates • Unforeseen events

– Unless corrective action is taken, serious cost overruns can occur

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Primary Measures of Earned Value Management – US DoD (K$)

1

2

3

4

Total Allocation

Work Planned

25

25

25

25

100

Actual Costs

22

20

25

25

92

Earned Value (Value of completed work)

20

20

20

20

80

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Two-Way Communication

Message Receiver

Sender

Acknowledgment

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Communication - Effectiveness

Feedback

Relevant

Useful

Timely

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Risk Management • Risks are an inherent part of project management – Risks relate to occurrence of events that have undesirable consequences such as: • Delays • Increased costs • Inability to meet technical specifications – Good risk management involves: • Identifying as many risks as possible • Analyzing and assessing those risks • Working to minimize the probability of their occurrence • Establishing contingency plans and budgets for dealing with any that do occur

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Risk Matrix

Activity Risk Management Peter Sherman, Quality Progress, February 2015

Activity Risk Management • Risk-Tolerant: accept risks (Commodity products & Services) – They have higher potential for return on investments.

• Risk-Averse: cautious about risks (Pharmaceuticals) – Risk events can cause lawsuits, negative publicity, or death

• Risk Acceptance: low magnitude of loss and low probability of occurrence – e.g. growing online software accepts risks by secure access, limited licenses, and encryption.

• Risk Transfer: avoid risks entirely – some pharmas do not work on developing vaccines; some transfer risk to third-party insurance provider or supplier • Risk Mitigation: focus on preventive measures such as properly designed products, processes, employee training, compliance, preventive maintenance, diversification, or redundant systems or create contingency plans to minimize monetary, physical or reputation damage from risk events

Summary - Productivity Model (4Ps)

Planning

Promotion

Persistence Personal Touch

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Key Resources Abudi, Gina and Tsoukalas, Christa (2009). “20 Things Every Project Manager Should Know … and Do!”, Boston University Corporate Education Center, http://www.ginaabudi.com/articles/20-things-that-every-project-managershould-know-and-do/ Dahle, Cheryl (1999). “How to WOW”, Fast Company.com, http://www.fastcompany.com/magazine/24/howwow.html Grenny, J., Maxfield D. & Shimberg, A. (2007). “How Project Leaders can Overcome the Crisis of Silence”, MIT Sloan Management Review, Vol. 48, # 4, Summer.

Kotter, John (1996). Leading Change, Harvard Business School Press, Boston, MA. Liebesman, Sandford (2008). “Risk Management: A Tool for Improving Quality Management”, The Quality Management Forum, ASQ, Spring.

Managing Projects Large and Small: The Fundamental Skills for Delivering on Budget and on Time, Harvard Business Essentials, Harvard Business School Press, Boston, MA (2004).

Martin Paula and Tage, Karen G. (1997). Project Management Memory Jogger, GOAL/QPC, Salem, NH. Meier, Ron, Williams, Michael, and Singley, Rodger (2008). “Merging the Bodies of Knowledge in Quality, Project, and Risk Management”. The Quality Management Forum, ASQ, Spring.

Peters, Tom (1999). “The WOW Project”, Fast Company.com, http://www.fastcompany.com/magazine/24/wowproj.html Schrage, Michael (1999), “The Proto Project”, Fast Company.com, http://www.fastcompany.com/magazine/24/schrage.html.

Useem, Michael, Jordan, Rodrigo, & Koljatic, Matko (2011). “How to Lead during a Crisis: Lessons from the Rescue of the Chilean Miners”, MIT SMR, Vol. 53, No. 1, Fall 2011.

Williams, Michael, Singley (Rodger), Meier, Ron (2009-8). “Using Affinity Analysis to Develop a Technology-Based Risk Taxonomy”, The Quality Management Forum, ASQ, Spring.

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Special Thanks to Leaders…

• Dr. G. N. Pandey, VC, Arunachal University of Studies, Namsai, Arunachal Pradesh • Dr. Vedvyas Dwivedi, Pro-VC, C. U. Shah University, Surendranagar, Gujarat • Dr. Hemant C. Trivedi, Director and Professor, Pandit DeenDayal Petroleum University (PDPU), Gandhinagar, Gujarat

• Dr. Vikram Patel, Principal, Shankersinh Vaghela Bapu Institute of Technology (SVBIT), Gandhinagar, Gujarat

• Dr. M. K. Soni, Executive Director & Dean, Manav Rachna International University (MRIU), Faridabad, Haryana

• Mr. Adil Patuck, Chairman, Patuck Institute, Santacruz (E), Maharashtra • Dr. R. C. Prasad, Professor, Pillai Institute of Information Technology, New Panvel, Maharashtra

• Prof. Victor Gambhir, President, Jaipur Engineering College & Research Centre (JECRC) University, Jaipur, Rajasthan

Special Thanks to Coordinators…

• • •

Dr. G. N. Pandey, VC, Arunachal University of Studies, Namsai, Arunachal Pradesh Prof. Sohil Gadhiya, Coordinator, C. U. Shah University, Surendranagar, Gujarat Mr. Hari Shukla, Coordinator, Pandit DeenDayal Petroleum University (PDPU), Gandhinagar, Gujarat

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Prof. Parth Raval, Coordinator, Shankersinh Vaghela Bapu Institute of Technology (SVBIT), Gandhinagar, Gujarat

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Prof. Virender Narula, Coordinator, Manav Rachna International University (MRIU), Faridabad, Haryana

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Dr. Meeta Seta, Principal, Patuck Institute, Santacruz (E), Maharashtra Dr. R. C. Prasad, Professor, Pillai Institute of Information Technology, New Panvel, Maharashtra

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Dr. Parul Agarwal, Dean School of Management, Jaipur Engineering College & Research Centre (JECRC) University, Jaipur, Rajasthan

Additionally: • Mr. Ciby James, Director, ASQ India New Delhi

ASQ India Contact Details – Mr. Ciby James, Director – Education & Community Development

cjames@asq.org

Address: ASQ India DLF Tower B, Jasola District Centre New Delhi – 110025 Tel: 011 4678 3399 www.asq.org.in

Schedule of ASQ LES Topics Date

Time (IST)

Topic

7-15-15

9:00 – 10:15 am

Leadership Excellence

8-19-15

9:00 – 10:15 am

Effective Teamwork

9-16-15

9:00 – 10:15 am

Effective Time Management

10-21-15

9:00 – 10:15 am

Effective Meeting Management

11-18-15

9:00 – 10:15 am

Effective Decision Making

1-20-16

9:30 – 10:45 am

Effective Project Management

2-17-16

9:30 – 10:45 am

Effective Risk Management

3-16-16

9:30 – 10:45 am

Effective Talent Management

4-20-16

9:30 – 10:45 am

Voice of the Customer Management

8-17-16

9:30 – 10:45 am

Operational Excellence

9-21-16

9:30 – 10:45 am

Effective Supply Chain Management

10-19-16

9:30 – 10:45 am

Sustainable Change Management

Project Management YouTube Teamwork – 1.23 min http://www.facebook.com/photo.php?v=10151139190759631&set=vb.740264630&type=2&theater

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Thanks Questions?