PROJECT MANAGEMENT FORPROCUREMENT

PROFESSIONALS

Dianne HardisonMarch 21, 2013

DIANNE HARDISON

CEO, The Hardison Group—2003 American Management Assoc. Trainer—1983 Director Domestic Marketing, FCEDA Director Technology Transfer, Virginia CIT Director Business & Government Services, NVCC Director Human Resources, Kaaren Johnson

Assoc. Consultant, DC Government Consultant, US Department Education Coordinator Financial Aid, GMU

COURSE OBJECTIVES & AGENDA

Provide common language and tools to manage Procurement Projects efficiently and effectively.

1. Project Management Overview2. Initiating the Project3. Planning the Work4. Working the Plan5. That’s a Wrap

Resource—Project Management Institute’s PMBOK (Project Management Book of Knowledge)

PROJECT MANAGEMENT OVERVIEWDEFINITIONS

Project—A temporary endeavor undertaken to create a unique product, service or result.1. Temporary—defined timeframe exists; a beginning and

an end.2. Unique—project is different than previous activities.3. Product, service or result is defined.

Program—A group of projects managed together as a unit.

Operations—Day to day implementation of a unit’s activities.

PROJECT MANAGEMENT FOR PROCUREMENT PROFESSIONALS

Project? Program? Operations?

PROJECT FRAMEWORK

Define Plan Execute Manage Close

PROJECT FRAMEWORK—DEFINE

Formally authorize project and define organization-level success criteria.

Stimulus Event Legislative Mandate Requirement

Developed at the “sponsorship-stakeholder” level (above Project Manager).

PROJECT FRAMEWORK--PLAN

Develop detailed project goals, work plan, resource plan, risk management and other plans needed for successful project execution.

Deliverable—Project Plan

PROJECT FRAMEWORK—MANAGE

Project Manager (PM) and Project Management Team (PMT) execute the Plan

Deliverables include status reports, forecasts, etc.

When the plans change, the PMT must revise plan to keep up-to-date

PROJECT FRAMEWORK—CLOSE

Conducting final lessons learned Updating internal processes and procedures to

incorporate new project outcomes Reassigning PMT to new projects Reporting on team performance Archiving actual time for each task Archiving documents Reporting the results Obtaining official closure on project

CLASSICAL ROLES & RESPONSIBILITIESSENIOR MANAGEMENT

Two Roles Determine Project’s viability and define

organizational objectives. Accomplished through Project Charter

After Project is approved and sanctioned, maintain support for Project through life line, ensuring adequate resources.

ROLES & RESPONSIBILITIESSTEERING COMMITTEE*

Determine resource needs Work with higher-level managers to balance

resource demands Select or reject projects Schedule projects to balance resources Review progress of all projects Handle problems: readjust project schedules,

authorize hiring of contractors, etc.

PROJECT MANAGEMENT CHARTER

Executive-level summary of the business case for the project that contains at a minimum, the essential items executive management needs to make a decision on whether to proceed with the project.

One document that does not change Contract between executive management & PM Prevents “scope creep” (in Congress they’re called

“riders”)

PM CHARTER ELEMENTS

Project mission or goal statement Agency objectives Deliverables Scope: Inclusion and Exclusion PM and level of authority Agency resources Approach Risks, assumptions & other issues Initial estimates

CHARTER—MISSION/GOAL STATEMENT

Describes key objectives: Concise Focused Wordsmithed Durable—Capable surviving entire project without

change

CHARTER—AGENCY OBJECTIVES

Lists key goals the agency wants from project: Relate to County/Municipality mission Strategic Alignment

CHARTER—DELIVERABLES

Briefly describes the key deliverables and any characteristics important to senior management and project success

CHARTER—SCOPE

Lists the activities or goals both included and excluded in the project. The purpose of the exclusions is to prevent clients and other stakeholders from assuming that they’re getting something they’re not.

CHARTER—PM & LEVEL OF AUTHORITY

Identifies the PM and what he/she is allowed to do. This may include hiring staff, consultants or vendors; conducting training; or authorizing capital expenditures.

CHARTER—AGENCY RESOURCES

Provides high-level estimates of resources needed by the various departments

Funding Equipment PM PMT Skill set required Records Management ???

CHARTER—APPROACH

Takes an agency-level approach to accomplishing the project. List:

Procedures Methodologies Templates

CHARTER—RISKS, ASSUMPTIONS & OTHER ISSUES

Lists key project-level risks and assumptions associated with the project. Use simple risk/reward model to determine whether to undertake the project.

CHARTER—INITIAL ESTIMATES

Uses appropriate SMEs and qualified PM to provide initial estimates for time and cost. Early estimates might include wide range of values ± 30%.

SAMPLE CHARTER (CORPORATE)

www.AllyBusiness.com

Charter Development Exercise—20 minutes

Develop DRAFT Charter of current, past or hypothetical Project

EXERCISE

Draft a Procurement Project Management Charter

PLANNING THE WORKPROJECT SCOPE DEFINITION

Once Charter has been executed by all required stakeholders, Project Planning begins.

Identify ALL requirements & deliverables Identify needs of ALL stakeholders: purchasing,

HR, finance functional managers, etc. PMT must satisfy all stakeholders while satisfying

goals in Charter on limited budget and schedule GBS—Goals Breakdown Structure: breaking down

high-level goals into smaller goals.(Gershenson, Bender, Syme outline 1, A, 1, 2, 3., etc.

WORK DEFINITION WBS—Work Breakdown Structure Best-known construct in PM—Core of Project PlanProject Title

1. Phase 1A. Deliverable 1

1. work package a2. work package b3. work package c

B. Deliverable 22. Phase 2

SOLICIT PROPOSAL GOODS OR SERVICES

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

STRATEGIC ALIGNMENT

Balanced & comprehensive objectives Specific and durable objectives Hierarchical framework Measurable objectives Stakeholder agreement Environmental & organizational assumptions???

PROJECT LIFE CYCLE REQUIREMENTS

Must establish and USE overriding structure for Project execution.

Initiating Planning Executing Monitoring Controlling Closing

LIFE CYCLES WITH SEQUENTIAL PHASES

Linear succession of phases Connect concept to result Milestone decision points=phase reviews (stage or

review gates, etc.) Progression flows from step to step=waterfall life

cycle. Incorporate into WBS Synchronize life cycle decisions & review

milestones if part of multiple, dependent, projects. Thinking, doing, checking & delivery.

LIFE CYCLE

ReleasePlan Cycle 1 Cycles

2-NProject

Start Decision ClosureProject

End

ASSIGNING TASK OWNERSHIP1. For each activity from WBS, list owner and other

contributors committed to the work.2. Responsibility Analysis Matrix—summarize

activity staffing for WBS activities.3. List unmet skills; fill gaps Knowledge in specific areas Proficiency with tools & equipment Experience with applications & systems Communication & language skills Amount and level of experience in given field

MIND MAP OF RESOURCES NEEDED

RFP

SUCCESSFUL ESTIMATING

Use SMEs to Establish Benchmarks Reference Past Projects/Lessons Learned Factor Assumptions Assess Skill Level

ESTIMATING TIME

O = OptimisticP = PessimisticM = Most Likely (based on experience)E = Estimated Time

E = O + P + (4xM) 6

RISK ASSESSMENT MATRIX

Probability (Extreme Risk)

H

M

L L M HImpact

SUMMARY PLANNING FLOWCHART

ProjectInitiation

RequirementsCollection

ScopeDefinition WBS Activity

Definition

ActivitySequence

ActivityDuration

Estimating

Activity Resource

Estimating

CostEstimating

ScheduleDev.

ResourceLeveling

Cost Budgeting

RiskMgmt

Planning

RiskID

ConstraintMgmt. &

Plan Optimiz.

QualitativeRisk

Analysis

QuantitativeRisk

Analysis

RiskResponsePlanning

ProjectPlan Dev.

Project BaselineSetting

GANTT OR BAR CHART

List all Activities Chunk into Common Groups Determine Sequence Determine Due Dates, Deadlines, etc. Predecessors Determine Personnel Resources Create Chart

GANTT OR BAR CHART

Advantages Disadvantages

Easy to Read & Understand Critical Path not Easy to See

Easy to Identify Task Discrepancies

Difficult to see Impact of Delays

Calendar or Time Based Inhibits Ability to see resources

Simple to Update Hard to Evaluate Effects of Change

GANTT CHART

PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) CHART

Critical Path Method List all Activities on Note Cards Determine Activity Sequences Determine Predecessors Draw Dependencies between Tasks Determine Durations Great Chart

PERT CHART

WORKING THE PLANTEAM DEVELOPMENT

Start-up Workshop—develop trust & interpersonal relationshipsmatrix & virtual teams*

Align project objectives with individual goals Build motivation-WIIFM Employ “influence without authority” Honest, open communications Choose appropriate tools Coach & mentor

WORKING THE PLANTEAM MANAGEMENT

Involve in user-needs assessments Confirm understanding of objectives, vision, etc. Involve in project plan development Build buy-in & commitment Delegate responsibility & ownership Determine project infrastructure to facilitate

productivity & effective information flow

WORKING THE PLANCOMMUNICATING INFORMALLY

MBWA once/week (reinforces trust, builds relationships

One-on-one casual meetings Luncheon updates

WORKING THE PLANCOMMUNICATIONS PLANNING

Review project infrastructure decisions & determine how formal communications will occur

Define internal reporting for entire PM Plan external communications for stakeholders Schedule routine communications

Project definition docs, project reviews, status reports, briefings, logs of project issues, approved changes, project closure reports

Determine plan for archiving project data (PMIS, Project Management Information System)

WORKING THE PLANCONDUCTING PROJECT REVIEWS

At project life cycle or phase transitions At major milestones or checkpoints Following significant Project changes When Project staff members join or leave After reorganizations At the end of the fiscal quarter

WORKING THE PLANPROJECT REVIEW AGENDA ITEMS Recognition of significant accomplishments Reinforcement of team management Review of Project objective Revalidation of project constraints & assumptions New Activity definition & risk identification Revisions to activity duration estimating & activity

sequencing Review of procurement administration Adjustments to Project infrastructure Analysis of project trends & changes Collection of lessons learned & opportunities for

process improvement

WORKING THE PLANCOMMUNICATIONS PLANNING

Refine Communications plan to meet needs of sponsor, stakeholder, team

Online data storage—consider security Access control issues Document hardware needs in communications

plan For virtual teams, install teleconferencing

equipment, if necessary Update plan as needed to improve visibility and

information flow throughout project

WORKING THE PLANPROJECT MONITORING

Project tracking & control processes start with baseline

4 stage cycle– Status Collection, inbound communications– Comparing status data to baseline, conduct project variance

analysis, evaluation of project metrics– Project Control, responding to timing or resource problems

(cost control, schedule control, integrated change control)– Outbound communications, inform stakeholders, sponsor of

what happened on the project (performance reporting, information distribution, project presentations)

WORK THE PLANDOCUMENT, DOCUMENT, DOCUMENT

List of Team Members & Contact Info Project Definition and Objectives Scope Definition WBS Meeting Reports Project Status Reports Issues Log Change Orders

WORK THE PLANDOCUMENT, DOCUMENT, DOCUMENT

Contingency Plans Cost/Budget Info Management Reports Non Disclosure Agreements (NDA)

WORK THE PLANPROJECT NOTEBOOK

Organized, central location Latest info Management gain info easily Creates history

AVOIDING PITFALLS

Lack of information Time Constraints/Time Wasters Reactive vs. Proactive Personnel Changes

– Internal– External

Financial Constraints Over allocation or Unavailability of Critical

Resources Loss Team Member

AVOIDING PITFALLS

Information Hoarding Unproductive Meetings

– Distribute Agenda in Advance 24-48 hours in advance– Timed Agenda– Start & Stop on time– Spinning Wheels

Summarize Key Points Get Consensus Plan Course of Action

– Use Parking Lot– Scribe—Summary or Notes, Not Minutes, 24 hours

Actions, Responsible, Timeline

AVOIDING PITFALLS

– Manage Meetings Round Robin for Comprehension

THAT’S A WRAPGENERATING LESSONS LEARNED

Scheduled Project Closing Meeting Positive results Desirable changes; process improvement;

replacement Prioritization of recommendations Final thoughts from ALL contributors—Round

Robin

THAT’S A WRAPGENERATING LESSONS LEARNED

Prior to Closing Meeting: Collect accurate, up-to-date, Project

documents & make available Brief to Exceptions Provide access to:

– Final Project Reports– Actual and planned schedule information– Project integrated change-control history– Issue-management history & problem

escalations– Project metrics & performance reports