PMI-SAC Conference Nov 20, 2012

PMI-SAC Conference Nov 20, 2012

Independent Project Review: Increasing Your Chance for Success

Presented ByMike Benson, PMPPrincipal

Who Is This Guy? Mike Benson Project/Program Manager for 20+ years PMP designation in 2001 History of achievements delivering large scale technology

solutions (both IT and EPC) Principal of Blackstone Project Management with focus on:

o Project & Program Managemento Independent Project Reviews / Project Health Checkso Project Rescue Serviceso Project Management Office (PMO) Set-up or Reviewo PM Mentoring and Trainingo Projects and clients in Calgary, Edmonton, Winnipeg,

Vancouver, Toronto, Los Angeles, Tulsa, Minnesota, Florence

Who Is This Guy? (cont’d) PMI-SAC Board Member 2005-2011 (Membership, Finance)

o Established the PMI-SAC Mentorship Programo Board Sponsor of the PMI-SAC 2010 Conference

Previous speaking engagements at project management events:o Tech Forum (Calgary)o PMI Regional Conference (Portland)o ProjectWorld (Vancouver)o Topics: Project Operational Readiness, Establishing a PM

Mentorship Program, and Project Portfolio Management

Independent Project Reviews: Increasing Your Chance for Success


Introductions The “Stats” about project failures What is an IPR? Why do a review? When and how often How an IPR is conducted Expected results and benefits Closing Q & A

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Agenda



Who’s in the room?

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Introductions



We’ve all seen the numbers (Standish, Gartner, Forrester, Meta, Carnegie, etc.)

A quick thought on stats….

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The “Stats” about Project Failures



A quick thought on stats…. BC Premier Christy Clark …said BC’s job creation

numbers are currently tops in Canada, ahead of Alberta. *source Calgary Herald, City & Region section, Wednesday Oct 17, 2012

“We’re used to…having Alberta doing better than anyone else…it’s significant for British Columbians to recognize that we are No. 1” – Christy Clark

Is she right?

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Source: Statistics Canada Labour Force SurveySeptember 2012 year-over-year (seasonally adjusted)

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AlbertaB.C.Difference%

JobCreation+43,300+51,7008,40019.4%

Unemployment rate4.4% (n/c)7.0% (+0.3%)

LabourForce+17,500+37,70020,200115.4%

Is she still right?



The Standish Group The CHAOS Report * Source: The Standish Group "CHAOS Summary 2009"

Latest study shows rise in project failures

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(Project outcome) 1994 1996 1998 2000 2002 2004 2009

Succeeded 16% 27% 26% 28% 34% 29% 32%

Challenged 53% 33% 46% 49% 51% 53% 44%

Failed 31% 40% 28% 23% 15% 18% 24%

http://www.standishgroup.com/newsroom/chaos_2009.php



The Bottom Line:

o Even if you deliver the project, if -• The budget has been exceeded• Or the delivery is late• Or the scope has been reduced• Or the product quality is lacking• Or the product does not meet business requirements• Or the product does not generate the expected business benefits

o The project may not be considered successful

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An Independent Project Review is:

“An independent or cold eyes review of an in-flight project to gather information and provide an objective and unbiased assessment of the overall project status along with recommendations that will assist the project and team by identifying improvements or procedural changes which will result in increasing the opportunity for project success.”

Mike Benson, October 2012

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What is an IPR?



Different names:o Independent Project Review (IPR)o Cold Eyes Reviewo Peer Reviewo Project Health Check

It is not:o Project Forensics o Project Audit o Lessons Learned or Project Lookback

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What is an IPR?



Many organizations have difficulty delivering projects

A project runs along until it becomes obvious that there are problems

By then it’s usually too late

Affords the PM, project team, and project sponsor an interim view of what is going well and what areas need to be improved upon

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Why do a review?Introduction:



Standard practice is a weekly, bi-weekly or monthly status report which compares plan vs. actualoProblem #1: project team ability to meet reporting deadlinesoProblem #2: data provided is force-fit into standard

reporting templatesoProblem #3: cumulatively biased reportingoProblem #4: focus on what has been done

Sometimes you just need to add some clarity and a different view to the status report picture

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Why do a review?Introduction:



Help determine the true state of a project and whether it looks to be on track

View the forest and not just the trees

To eliminate project team bias through independence

To ultimately provide constructive help

Not intended to be burdensome or create barriers

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Why do a review?General:



To ensure project is aligned with strategic objectives

When using a 3rd party system implementer

To protect the investment

For organizations struggling to overcome project performance challenges…find issues, trends

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Why do a review?Organizational:



To identify whether good project management rigor and structure is in place

To understand whether standard project management processes are in place and being adhered to.

To review of the effectiveness of the Stage Gating process

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Why do a review?Governance:



To assist in identifying, minimizing and mitigating challenges and risks

To provide proactive opportunity to make project corrections

To anticipate and identify potential problems before they occur

To review the financial picture, and whether controls are functioning as required

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Why do a review?Project:



To assess whether the project has challenges in the area of:oGovernance and leadershipo Appropriate level of sponsor involvemento Information and communication managemento Stakeholder engagemento Team dynamics – the Dennis Factor

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To assess the project team’s readiness to proceed to the next stage in terms of: o Scope definitiono Resource basis / transitioningo Technical capabilitieso Adequacy of remaining budgeto Adequacy of remaining scheduleo Identification of potential cost/schedule cuts

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Proactive or Reactive?

What kind of project:o A large and highly visible undertaking oHigh level of complexityo Significant business process impacts (OCM)o Significant budget o Significant time and efforto Significant resources

These factors, in combination

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When and how often?



Rules of thumb – how oftenoDuration (including planning):• 0-4 months - no review required• 5-9 months - 1 review• 10-18 months - 2 reviews• 19+ months - 2/year for each 12 months

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When and how often?



Rules of thumb - wheno If one: 1/3 of the way through executiono If two: 1/3 and 2/3o If more than two:• Prior to exiting a major Stage Gate• At major milestones and/or transition points• One after planning and then during execution

o The later the review, the diminishing the influence of the review outcomes for that project

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When and how often?



The review activities are “independent”, however, support of the project team is essential

Who sponsors a review?o Project sponsoro CIO/ VP IT (VP Engineering)o Senior Executiveo Advisory Board / Steering Committeeo Functional ManageroManager of Project Managers / PMO Managero Program/Portfolio Managero Project Manager

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How an IPR is conducted



Sponsors role:o Establish the terms of reference and objectiveso Identify the specific areas of focus (i.e. scope)o The above assist in establishing the SOWo Identify the key project personalo Communicating the review and purpose to the project team

and stakeholder community (squash the rumor mill)o Ensuring logistics of the review are addressedo Resolving any issues that may arise (in conducting the review)o Receiving and reviewing the final report(s)

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Review Methodology

Phase 1 – Initiation:o Project Sponsor for the IPR has been determinedo Establish the issues (if any) that would prompt the IPRo Establish a SOW for the IPR (background, objectives, scope of

review, approach, deliverables, critical success factors)oDeliverables: • Determine review team size (usually 1-4)• Estimate length of engaged (varies depending on scope and size)• SOW• Communication from sponsor

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Review Methodology

Phase 2 – Planning:oDetermine what project artifacts to reviewoDetermine who to interview oDeliverables: • Review Plan• Set interview schedule• Questions developed

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Review Methodology

Phase 3 – Execution:o Interviews – individuals and group meetingso Examine project artifactso Consolidating/validate observationso Begin conclusions/recommendationsoDeliverables: • Source data for report

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Review Methodology

Phase 4 – Report & Recommendations:o Review results, identify gaps, and follow upo Analyze & validate information and develop corrective action

planso Prepare draft reportoDeliverables: • Draft report, including observations, issues, and recommendations

& corrective action plans

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Review Methodology

Phase 5 – Review & Finalize:o Review with IPR Sponsor and Project Managero Adjust based on feedbacko Prepare and deliver the final reportoDeliverables: • Final detailed report• Final summary (presentation) report (if in scope)

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Elements to review? (depending on scope)

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Executing documents & processes

Planning documents & processes (baseline)

Controlling documents & processes

Technical documents & processes

Project Process Groups



Review Project Planning documents & processes:o Project plano Project charter (or DBM)o Scope statemento Work Breakdown Structureo The original project scheduleo Business plan stating objectives of the projecto Benefits definition, and plan to track & captureo Project org charto Project team roles and responsibilitieso The original project budget / Financial contingencieso Stakeholder identification & engagemento Project communications plan and/or matrixo Project priority triangleo Acceptance criteria/sign offso Risk management plan

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Review Project Execution documents & processes:o Implementation planso Transition to operations planso Contingency planso Training planso OCM planso Organization and staffing (skill level, quantity, applied roles and

responsibilities, team dynamics)o Utilization of approved corporate methodologieso Business engagement & commitmento Project schedule spanning all project phaseso The system for progress reporting / status reportso The centralized system or repository for project documentation

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Review Project Controls documents & processes:o Project costs to date (to compare vs. original budget)o ETC/EACo Change control system and approval process (scope, quality,

costs, schedule)o Issues managemento Project risk identification, mitigation, and monitoringo Vendor managementoGovernanceo Lessons learned

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Review Project Technical documents & processes:o Customization identificationo Reporting needs/plansoGo-live strategyo Post-implementation plansoData conversion planso Configuration approach

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IPR Critical Success Factors:o IPR sponsorship, communication, and commitmento Clearly defined scope & expectationso Timely availability of key stakeholders and project team

members as requiredo Timely access to relevant project documentationo Strict adherence to the scope, deliverables, and timelines as

outlined in the SOW

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Independent review is free from regimented reporting constraints (more time spent analyzing the data)

Elimination of project team bias

Organization-centric reporting (not project-centric)

Focus on trending and forecasting instead of historical reporting

If the elements being reviewed are not already in place, the IPR will surely result in immediate benefits

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Expected results and benefits



Professionally executed

Level of comfort to senior management

Produce a list of findings and recommendations which are practical solutions based on root cause analysis

If done early enough, recommendations can be made to improve project execution

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Identify improvements to the flow of information regarding the project to all stakeholders

Promotes a proactive approach to addressing issues

Assist the project team in identifying and removing obstacles

Assist the project team in identifying weaknesses or bottlenecks in the organization’s project delivery capability

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High level overview of an Independent Project Review

The content and activities for an IPR will vary, depending on the project size, complexity, timing, current status, team dynamics, corporate PM maturity level, and scope of the review

The principal objectives, approach, and methods will remain virtually the same

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Closing

Q U E S T I O N S ?

Independent Project Review: Increasing Your Chance for Success

Mike [email protected]

PMI-SAC Conference Nov 20, 2012

Documents

Transcript of PMI-SAC Conference Nov 20, 2012