The Root of all Problems

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Complexity

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Characteristics of Complexity• Not logical• Technical information• Miscommunication• Confusion• Increased communication• Everyone in Silos• Management, direction, and control

(MDC)

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What’s going on?

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What’s going on?

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What’s going on?

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Complexity

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Simplicity

New Role of PM

Chaos

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Order

By observation, majority of people are right side

Recipe for Simplicity

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1. Utilize expertise

2. Metrics

3. Non-technical information

4. Logical

5. Understand people

6. Align Resources

Recipe for Simplicity

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Simple

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TASK CATEGORY OCT NOV DEC JAN FEB MAR APR MAY JUN Task Order FY15 TOTAL

1 Project Management $0 $600 $360 $240 $240 $240 $240 $240 $240 $2,400

2 Review Existing Historic Site Information $0 $2,250 $750 $0 $0 $0 $0 $0 $0 $3,000

3 Prepare NFIA Memorandum or PI Work Plan $0 $0 $4,800 $1,600 $0 $0 $0 $0 $0 $6,400

4 Conduct PI and Prepare Draft PI Report $0 $0 $0 $1,320 $3,300 $3,300 $3,300 $1,980 $0 $13,200

TOTAL $25,000

Original Projected Monthly Totals $2,850 $5,910 $3,160 $3,540 $3,540 $3,540 $2,220 $240 $25,000

Identifies Stakeholder’s Responsibilities

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New Budget Format is easy to understand

CATOGORIES BUDGET OBLIGATED FUNDS SPENT REMAINING OBLIGATED FUNDS

A 260,000 256,600 204,153 52,447.48

B 580,000 580,000 580,000 0.24

C 1,000,000 837,864 627,834 210,030.35

D 20,000 5,000 4,235 765.25

E 60,000 60,000 60,000 -

F 869,908.92 754,839 115,069.55

G 7,850,000 5,909,090.53 5,098,191 810,899.22

H 20,700 171,871.7 142,971.70 28,900.00

9,920,900 8,690,335 7,472,223 1,218,112

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Aramark Case Study1. University needs new dining services2. Selected vendor is negotiating with university3. Vendor wants a clause that states “Vendor can

terminate contract upon convenience.”– Vendor wants to back out of contract if they don’t make

money

4. University will not allow clause in contract

• Question: As a third party consultant, what questions would you ask the vendor to help them?

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Logical Contract Explanation

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1. Vendor will not enter an agreement that is not a win for them.

2. What could happen that could cause them to lose?

Vendor Client

Risk Mitigation Example

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Risk #1 Description: Mandatory Meal Plan Enrollment Falls Short of Expectations

Risk #1 Clarification: Aramark expects that BSU will do the following each year to enable Aramark to act in the best interest of the University:• Provide enrollment numbers • Incorporate Aramark into the master planning meetings of the University.• Identify BSU Stakeholders to work on the joint team.

Those assumptions include, without limitation, the following: 1. A two semester average of 1520 mandatory meal plan subscriptions per semester in year one of the contract (July 1, 2016, through June 30, 2017), growing to a minimum of 2000 mandatory meal plan subscriptions per semester in year two, and growing by 1% every year thereafter.2. The meal plan structures and pricing set forth in the Proposal, subject to annual adjustments as set forth in the Proposal.3. Proposed dining locations and concepts are open and operational in accordance with the schedule set forth in the Proposal, and existing venues remain open and operational as explained in the Proposal.

If the assumptions set forth above and in the documents referenced above are not satisfied, the following will occur: 1. Within thirty (30) days of any of the above assumptions not being met, Aramark will provide BSU with proposed modifications to the financial and/or operational terms of the contract to reflect the changed conditions. Such modifications might include the following: (i) restructuring the dining program to reduce the hours of operation, number of meal plans; labor/staffing; (ii) restructuring meal plans and the sliding scale; (iii) reducing or eliminating meal plan equivalency; (iv) reducing commissions and/or the commission guarantee; (v) increasing retail, catering & concessions prices; (vi) reducing the repair and maintenance/replacement fund for concessions equipment; (vii) eliminating annual in-kind donations; (viii) eliminating the proposed Honors College capital investment; and/or (ix) repayment of all or a portion of the financial commitments or unrestricted grants made by Aramark.

Risk Mitigation Example

Risk #6 Description: Venue Attendance Declines for stadium and/arena Events

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Risk #6 Clarification: Aramark expects that BSU will do the following each year to enable Aramark to act in the best interest of the University:• Meet with Aramark to quarterly to review Projected and Actual Attendance Numbers• Provide Annual Schedule of Events for both Taco Bell and Albertson’s with ongoing updates

Those assumptions include, without limitation, the following numbers of events and attendance at Albertson’s Stadium, Taco Bell Arena, and Morrison’s Center: Albertson’s StadiumA minimum of 6 home football games, plus 1 bowl game per seasonAverage attendance of 32,500 per regular season game, and 20,000 per bowl game 2 Special events with average attendance of 14,500. Taco Bell Arena16 Men’s basketball games per season with average attendance of 570013 women’s basketball games per season with average attendance of 80015 concerts per Contract year ($268K revenue) with average attendance of 7300 Morrison’s Center68 events per Contract year with average attendance of 1100

In the event of a decline in stadium or arena attendance, the following will occur:

1. Within thirty (30) days of any decline in stadium and/or arena attendance from the prior year, Aramark will provide BSU with proposed modifications to the financial and/or operational terms of the contract to reflect the changed conditions. Such modifications might include the following: (i) restructuring the dining program to reduce the hours of operation, number of meal plans; labor/staffing; (ii) restructuring meal plans and the sliding scale; (iii) reducing or eliminating meal plan equivalency; (iv) reducing commissions and/or the commission guarantee……

Conclusion

• Everyone is confused

• New role of PM is to make things simple

• Think about project in terms of people you

don’t control

• Relay non-technical information

• Use metrics to identify value

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