Presentation

Understanding Project Management

The role of project management in your organization

Belgrade, Serbia
May 7, 2009
This document is confidential and is intended solely for the use and
information of the client to whom it is addressed.
 Project management is an approach that uses learned skills to
both plan and control a project

There are four major components that

identify a project:
– a unique effort that produces a product or
service
– conforms to set requirements
– executed within a fixed time frame
– works within a budget

Examples include:
– New mobile technology product
– Highway expansion/construction
– Systems implementation

Projects do not include business operations:

– Ongoing customer support for services
– Collecting tolls to pay for expansion
– Systems administration

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 When projects are delivered correctly they can:

Expand product portfolios

– Faster product to market cycle

Improve customer satisfaction

– Build to customer requirements

Reduce production and operating costs

– Modernize and automate processes

Increase revenue
– Reduce invoicing periods

Accurately report progress

– Delivery dates
– Costs

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 Poorly managed projects can have greater impacts on the project
team and overall organization
Visible Impacts Behavioral Impacts

New Projects are #1 Priority

New Project
Team

Interoperability Issues Poor Quality

Infrastructure Re-allocate
New
Priorities

Old Projects
#1 Priority Old Projects
Slip

Slipped Schedules Escalating costs

The combined impact can reduce productivity, increase costs, reduce

market share and divert an organization from its strategy

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 There are four major symptoms of poorly managed projects
Stakeholder
Common Causes Project Discipline
Feedback
You are late!
Lack of a project plan
Project Planning

Changing requirements increased scope and
Change Management
duration to complete
Resource Management

Failure to identify dependencies between tasks

Resources were not available
This is not what I
No agreement on the project’s scope
Project Planning
asked for!
Limited design and project documentation
Change Management

Failure to incorporate changes
You spent too
Changing requirements increased scope and
Cost Management
much money! cost to complete
Change Management

No project budget

Costs were not tracked
This does not
No agreement on the project’s scope
Project Planning
work!
Limited design and project documentation
Change Management

Failure to incorporate changes
Quality Management

No quality management plan

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 Most project failures can be tied back to a few common issues

Lack of Executive Commitment

– Organization can’t support the project Training

– Poor internal communications

– Limited metrics or success measures
Expectations
– Stakeholders not involved

Project is Misunderstood
– No documented requirements
– Changes, changes, changes!!!
– Seen as simple - “that should be easy”
– Interdependencies not identified

Poor Project Leadership Project
Governance
– Lack of training & certifications
– Project Managers not mentored

MS Project is not the answer!

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 Organizations fix their Project Management problems by
developing their people’s skills
Executive Leadership Project Managers

Constraints Processes &

Templates
Expectations Training

Change Project Mentoring Professional

Management Governance Certifications

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 They also develop custom project management lifecycles
Project Management Best Practices
Example Roadmap Closeout project &
document lessons

Manage Changes
Execute and
Document individual manage variances
tasks and
responsibilities
Be willing
Get all stakeholders to change
to agree to scope
Kick Off Project

Identify
Project Expectations
and Team
Consider identifying local consulting
firms with project management
experience in Serbia that can help
you do this

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 Company X develops document management software for
European banks and insurance companies. It has 15 employees, 3
executives and no project managers.

5 projects per year * €200,000/project = €1,000,000 revenue

– €180,000 cost/project = €900,000 costs = €100,000 in profit (10%)

Company X invests in project management

– €2,000 in project management training & certifications for 2 key employees
– €10,000 for project management strategy consulting
– 75 executive hours and 200 employee hours building PM capabilities

What does Company X get for its investment?

– 5% Improvement = €45,000 cost reduction
– 1 additional project = €29,000 profit

Consider that typical benefits run between a range of 5-15%

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 Recommendations to gain control of your projects

Identify all your projects

Understand your Project Managers
– Document your scope
– Project Management expertise?
– Identify delivery dates
– How are their projects performing
– Develop budgets
– What challenges are they facing?
– Evaluate performance
– Determine what they need from you
– Communicate to your Team(s)

Review your organization

Seek out professional help
– Organization support this?
– Consultants/staff with deep skills
– Clear project authority?
– Join PMI & build your knowledge
– Stakeholders involved?
– Train your best staff
– Repeatable processes in place?
– Push staff to achieve certification
– Identify the gaps

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 Questions?

Peter Doyle, PMP

Booz Allen Hamilton
doyle_peter@bah.com

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