CAI Project Management Excellence Series

Transcription

1 CAI Project Management Excellence Series

2 Objective of Session 1. To establish the importance of building trust through capability and visibility. 2. To establish the potential value of a project control room that monitors project conditions. 3. To identify the types of metrics that should be monitored by a project control room. 4. To show how CAI has responded to this challenge (and benefited from it). 5. To suggest a familiar framework to describe the measures that matter.

3 Part One Building Trust

4 What Is Trust? Opportunities will go to those I trust. My ability to trust you is based on two things, 1. My Belief That You Know What You Are Doing, and 2. My Ability to Know You Are Doing It Trust, but Verify Suzanne Massie, a writer on Russia, met with President Ronald Reagan many times between 1984 and She taught him the Russian proverb, "doveryai no proveryai" (trust, but verify) advising him that "The Russians like to talk in proverbs.

5 Why Do We Trust Industrial Operations? Critical Process Factors Identified They Know What to Monitor to Ensure Results Produced Safely (Pressures, Temperatures) Systematic Monitoring They have multi-level process monitoring systems to track the factors that drive results. Integrated Control Room Critical performance indicators and related data on entire process visible to those responsible. Trained, Experienced Personnel Interpret control room information address causes of trending-out-of-control conditions before they develop into more serious issues.

6 And Not Trust Project Managers? Studies Reveal that IT Executives Don t Trust the Service Providers They Rely On Source:

7 Little Improvement in Decade It s About Improving Challenged Project Success Rates Source:

8 Part Two The Opportunity There s ROI in Control Room Capability Trust Building

9 We Need a Control Room Capability Like This Comprehensive, Up-to-date Operating Results and Critical Conditions Data Key Performance Indicators Displayed in Action Compelling Dashboard Charts for Detecting Time Series Trends Drilldown Into Source Data for Verification and Understanding Root Causes

10 To Go After the Improvement Potential in This _software_development February 2015

11 Because We Need to Do THIS Digital Projects Transformation Today: Number of top 100 product and service companies - that are now dependent on software has DOUBLED (to nearly 40%) in the past 20 years. Tomorrow: Revenues from digitized products and channels are expected to exceed 40% in industries such as insurance, retailing and logistics. _software_development February 2015

12 It Will Take Control Room Capability and Credibility For the Opportunity to Take on Larger, More Complex Projects With Less Risk Monitoring Critical Conditions Responsible Team in Loop As An Organization As An Individual Project Manager

13 Part Three So What SHOULD the Control Room Monitor?

14 Customers Expect PMs to Predict the Future At Least IT Executives Agree, It s Difficult to Master Predictability Source: /img/files/chaosmanifesto20 13.pdf

15 But, We Measure the Past

16 Two Types of Measures We Have Lagging Indicators Backward Looking Track Progress We Need Leading Indicators Forward Looking Enable Management

17 Traditional Lagging Measures Volume Quality Cost

18 Leading Indicators: The Early Warning Signs Experts Agree on What We Should Measure

19 What ARE the Early Warning Signs? Kappelman Research Derived List of Six People Factors Six Process Factors

20 Early Warning Signs: The Dominant Dozen The Dominant Dozen People-Related Process Related Top Management Support Documented Requirements Project Manager Capability Change Control Process Stakeholder Involvement Schedule Planning/Mgmt Project Team Commitment Communication Effectiveness Team Member Skills Resource Assignment SME Availability Business Case

21 Part Four Getting Started: Monitoring the Core Conditions

22 What Metrics Should We Monitor? Every Project s Core Conditions Three Important CONDITIONS to Monitor Expectations Management Sponsor Involvement Process Compliance To Minimize One Project Risk Factor Project Rework Probability According to the Carnegie Mellon Software Engineering Institute, Data indicate that 60-80% of the cost of software development is in rework. Source: Paul D. Nielsen, About Us: From Director and CEO Paul D. Nielsen, Carnegie Mellon Software Engineering Institute,

23 What Metrics Should We Monitor? The Four Missing Metrics SMART Are expectations clear? SMPL How engaged is sponsor? PAL - Are processes being followed? PRPL Are causes of Rework being avoided? =

24 Part Five How Do We Collect This Data?

25 Traditional Feedback Sources Lagging Indicators - Project Management Tools - Accounting Tools - Timekeeping Tools Leading Indicators - MBWA - Team Meetings - Formal Assessments

26 1. Know What You Want to Collect Risk Management Status Key Performance Indicators Expectations Management Sponsor Involvement Process Adherence

27 2. Collect As Formally As Possible Why? Minimize Appearance of Bias Emphasize Importance of Conditions Monitoring Create Permanent Record How? Standard Set of Weekly Assessment Questions Standard Presentation of Metrics

28 3. Present Metrics Clearly Simple Charts Few, [Proven] Key Performance Indicators Control Limits Clear

29 Office Products Control Room Assessment Instructions Spreadsheet Spreadsheet Consolidation Charts and Graphs Status Report Extensive Excel Widget Collections

30 Part Six What CAI Has Done?

31 We Faced a Turning Point Grew Past Point of Intimate Involvement Major Project Failure Never Surprised Again

32 CAI Wanted a Tool With Control Room Capabilities APO Provides Managers What They Need Comprehensive Project Results and Conditions Data Key Performance Indicators Dashboard Time Series Data for Detecting Trends Drilldown Into Source Data for Details

33 Decided to Develop Comprehensive Project Management Tool Comprehensive Project Data Collection Operational Data Human Feedback Data

34 Compelling Presentation to Manager and Stakeholders Key Performance Indicators Dashboard Comprehension Commitment Communications Capability Availability

35 Trend-Driven Conditions Monitoring Trend Data See Week-to-Week Trends in Forwardlooking Performance Indicators

36 Detailed Data to Understand Conditions Dashboard Highlights Issues Drill Down Into Source Data for Full Story By Project By Role By Condition By Response Drilldown to Detailed Feedback

37 CAI s Results Dramatic Improvement in Stakeholder Communications - CEO Is Thrilled to Be in Loop - Higher Satisfaction Across the Board

38 CAI s Results More Efficient Collaboration - Issues Are Obvious - Root Causes Are, Too - Trend-based View, Not Recent Impression 2015 Computer Aid, Inc.

39 CAI s Results Genuinely Troubled Projects Easy to Identify - Unique Conditions Stand Out from Rest of Portfolio - Conditions Not Improving Despite Actions Finally, Really Managing vs. Accounting and Guessing - Focused on Understanding Conditions that Drive Results

40 Part Seven How Can YOU Communicate the Need for a Control Room for Your Organization?

41 Show Them One They Already Know Automotive Gauge Odometer Clock Fuel Level Speedometer Tachometer Oil Pressure Oil Temperature Water Pressure Water Temperature Voltmeter

42 A Gauge for Every Condition Automotive Engineers Long Ago Defined the Critical Measures for Safe, Effective Engine Operation.

43 The Basic Engine Measures Automotive Gauge Asks the Question To Measure Odometer How far? Deliverables Delivered Clock How long? Duration Fuel Level How much further? Input Units Available Speedometer How fast? Deliverables per Unit of Time Tachometer How intensely? Effort Intensity Oil Pressure Do we have enough lubrication to smooth interactions? Supply of Lubricant to Smooth Interaction Between Components Oil Temperature How smooth are interactions? Ability of Lubricant to smooth Interaction Between Components Water Pressure Do we have enough coolant to keep the engine producing? Supply of Coolant to dissipate excess engine heat Water Temperature Voltmeter How effective is the coolant in keeping the engine cool? Is enough energy being applied to the other important systems? Ability of Coolant to dissipate engine heat Ability to Support other Control and Comfort Systems

44 Did We Accomplish Our Objectives? To establish the importance of building trust through capability and visibility. To establish the potential value of a project control room that monitors project conditions. To identify the types of metrics that should be monitored by project control room. To show how CAI has responded to this challenge (and benefited from it). To suggest a familiar framework to describe the measures that matter.

45 One More Trusted Control Room