The Value of Expectations in Project ManagementBrandon Olson

ObjectivesImprove project success rates

Client engagement and ownership

Project change management process

Return to Work with…Conceptual UnderstandingTools & Processes

http://faculty.css.edu/bolson1/presentations/DuluthEMWorkshop.pdf

Agenda Project Management Project Failures Managing Project Variables Managing Client Expectations Change Management Challenges / Solutions

What is a Project?

“…a temporary endeavor undertaken to create a unique product, service, or result.”

PMI, 2008

Project Sources Revenue Generation

New product/services Market Expansion Increased Scalability

Cost Savings Process Improvement Decision Making

Directive Government Compliance Self-Imposed Competitive Standards

Project PhasesInitiate

Plan

Execute

Monitor & Control

Close

Time

PMI (2008)

The Project Team

ProjectChampion

ProjectOwner(client)

ProjectManager

Project Team(Multidisciplinary Specialists)

Project ManagementScope

TimeCost

ProjectManager

Agenda Project Management Project Failures Managing Project Variables Managing Client Expectations Change Management Challenges / Solutions

Project Failures

Defining Project Success Delivered 100% functionality

On time

Within Budget

Project Success Rates

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1994 1996 1998 2004 2009 2011

Gale (2011)

16%

27% 26% 29%32% 37%

Standish Group – CHAOS Report

Sources of Project Failures1. Failure to establish upper-management commitment

to the project2. Lack of organizational commitment to methodology3. Taking shortcuts through or around methodology4. Poor estimating techniques5. Overoptimism6. Mythical man-month7. Inadequate people management skills8. Insufficient resources9. Failure to manage to the plan10. Failure to adapt to business change11. Premature Commitment to a fixed budget and

schedule12. Poor expectations management

Whitten & Bentley (2007)

Top 10 Reasons Projects Fail1. Inadequately trained and/or inexperienced project

managers2. Failure to set and manage expectations3. Poor leadership at any and all levels4. Failure to adequately identify, document and

track requirements5. Poor plans and planning processes6. Poor effort estimation7. Cultural and ethical misalignment8. Misalignment between the project team and the

business or other organization it serves9. Inadequate or misused methods10. Inadequate communication, including progress

tracking and reportingWinters (2002)

Agenda Project Management Project Failures Managing Project Variables Managing Client Expectations Change Management Challenges / Solutions

Project VariablesScope

TimeCost

Project Changes Failure Budget Cuts

Schedule Compression

Increase Scope

Change - Functionality Scope Creep

Increase in user expectations

Feature Creep Increase in engineered functions

Small incremental changes over time Potential to adversely affect project

Project Change

Baseline – Project Charter

Project

ExpectationsGap

Agenda Project Management Project Failures Managing Project Variables Managing Client Expectations Change Management Challenges / Solutions

Project Charter Estimates

Project

Scope

TimeCost

$10,000

100%

25 weeks

Scope ChangeScope

TimeCost

$10,000

125%

25 weeksProject

100%

31 weeks$12,500

Managing Change Increasing Scope

Increase budget May increase schedule

Cut budget Reduce scope May reduce schedule (or increase)

Shorten Schedule Reduce scope Increase budget

Managing Client Expectations Project Initiation Phase

Discussion with Client/Owner Determine Project Success Evaluate Cost/Schedule/Scope

Prepare Expectations Matrix

Project Monitoring and Controlling Phase Reevaluate Expectations Matrix

Expectations Management MatrixMeasures of Success Max or

MinConstrai

nAccept

Cost

Schedule

Scope

Whitten & Bentley (2007)

Expectations Management Matrix – Moon LandingMeasures of Success Max or

MinConstrai

nAccept

Cost$20 billion (estimated)

ScheduleBefore 12/31/1969

ScopeLand man on moonReturn safely to earth

Expectations Management Matrix – London OlympicsMeasures of Success Max or

MinConstrai

nAccept

Cost£2.4 billion (initial)£9.3 billion (revised)

ScheduleBefore 7/27/2012

ScopeConstruct facilitiesConstruct transport.…

Expectations Management Matrix – Changing PrioritiesMeasures of Success Max or

MinConstrai

nAccept

Cost

Schedule

Scope

Budget Cuts

Managing Client Expectations Don’t say no to changes; say yes, but… Educate client Develop formal change request process Enforce adherence to change control

process

Agenda Project Management Project Failures Managing Project Variables Managing Client Expectations Change Management Challenges / Solutions

CM vs Project CM Change Management

Organizational Level Migration to new process/service/product Occurs near the end of a project cycle

Project Change Management Project level Modification to project variables Occurs throughout project

Project CM ProcessSubmitChange

RequestedChange

ReviewRequest

Approved?

InformClient

AdjustVariable

s

Integrate

Change

Yes

No

Change Order Form Tracking Data

Changer Order ID Date Project Name Customer Contact Phone (email)

Change Specifications Change Description Anticipated Benefits Anticipated Goals Budget Project Impact

Summary Budget Difference Schedule Difference Approval / Date

Change Order Form Offer as a template to project stakeholders Consider database/spreadsheet for tracking Addresses all project variables

Scope/Functionality Budget Schedule

Requires both client and project approval May require supporting documentation

Revised project schedule Revised budget spreadsheet More formal and detailed change request

document

Change Management View project management as constant

communication and negotiation Plan for change Establish formal change control system Create change control board (CCB) Use effective configuration management Define procedures timely decisions on smaller

changes Use reporting to identify and manage change Use project management software to

communicate change Focus on leading project team and meeting overall

project goals and expectations

Schwalbe (2007)

Value of Change Question value of change

Justify additional budget and schedule? Similar evaluation to project selection

Maintain focus on the goals for the project Is change aligned with project goals? Does change interfere with project goals? What are the benefits of the change?

Functionality Political

Agenda Project Management Project Failures Managing Project Variables Managing Client Expectations Change Management Challenges / Solutions

Challenges to PCM What challenges do you face implementing

project change management? Establishing initial project variables Gaining acceptance on affect of changes to

project Formalizing a project change management

process Managing scope/feature creep

Resources

References Gale, S. (2011). Failure rates finally drop. PM Network,

25(8), 10-11. Project Management Institute (2008). A guide to the

project management body of knowledge (4th ed.). Newtown Square, PA: Author.

Schwalbe, K. (2007). Information technology project management (5th ed.). Boston, MA: Thompson Course Technology

Whitten, J.L. & Bentley, L.D. (2007). Systems analysis and design methods (7th ed.). New York, NY: McGraw-Hill Irvin.

Winters, F. (2002). The top 10 reasons projects fail. Retrieved from http://www.projectmanagement.com/ articles/ 147229/The-Top-10-Reasons-Projects-Fail