Better Performance Through Better Project Management
Better Performance through BetterProject ManagementACEC Indiana – Engineering Leadership ProgramFebruary 14, 2018Presented by: Brad Wilson, PSMJ Resources
Traits of the Best Project Manager YouKnow?
Traits of the Best PMsas Defined by a Major Client1. Follows through On his/her commitmentsOn others’ commitments2. Good listener7. Backs decisions of teammembers8. Organized3. Proactive9. Handles multiple prioritieswell4. On top of every aspect ofthe job10. Technically proficient5. Leads by example6. Good communicator11. Holds people accountable12. Delegates well
The Most Successful PMsStrong Project ManagerProject Administrator Manages the proposal effort Little involvement in marketing Prepares the fee budget Gets fee budgets from others Participates in fee negotiation Accepts whatever is negotiated Participates in team selection Relies on dept. heads for staffing Gets non-performers removed Blames dept. heads for poor performers Controls technical direction Delegates tech. matters to dept. heads Controls budget & schedule Monitors budget & schedule Maintains rapport with client Reports status to client Directs fee collection efforts Lets accounting handle collections Accountable for success or failure Keeps records of who is responsible
How Principals Work withStrong PMsProjectManagerPrincipalPreparesApprovesFee NegotiationParticipatesDirectsTeam l DecisionsControlsRecommendsClient RelationsMaintainsOverseesFuture ssueFee ProposalsRemoving Non-Performers
Roles of the Project ManagerTraditional Roles1. Planning2. Organizing3. Directing4. Controlling5. TechnicalMarketing Roles1. Expand the Scope of Work2. Get the Client Back3. Actively Secure Referrals4. Close the Deal5. Sell All Your Firm’s Services6. Passive Marketing/Client Touches7. IFBPFinancial Roles8. Earn the Profit9. Bill the Client10. Secure Payment
Project Manager Sins4. Letting the job get into trouble3. Not knowing it’s in trouble2. Knowing it’s in trouble and not asking for help1. Hiding the fact that it’s in trouble
Levels of PMOrganizational Maturity1. Principals perform (and manage) all projects2. Principals manage all projects; non-principals do the work3. Non-principals manage small projects and/or tasks on largeprojects4. Principals designate PMs (often called “Associates”) whoperform some PM duties5. Principals turn over all PM duties to PMs6. Principals develop a team approach with PMs7. PMs become a principal-level position
PSMJ’s Top 20Excuses for Project Failure1. The project team was full ofincompetents.11. I wasn’t given enough authority.2. I didn’t have enough time.3. The client kept making changes.13. The contractor didn’t understand thejob.4. The budget was unrealistic.14. This job was unique.5. I couldn’t get enough help.15. The building department is full of idiots.6. Working for that client is impossible!16. Principals kept charging to the job.7. I couldn’t get the information I neededfrom accounting.17. The subs would not cooperate.8. The schedule was unrealistic.9. Everyone kept charging to the job.10. was taken off the job at theworst possible time.12. The designers wouldn’t stop designing.18 The word processing people kept gettingpulled off my job.19. quit and left me holding thebag.20. The CADD operators didn’t know whatthey were doing.
Leadership vs. Management:What is the Difference?Leadership is Transformational creating new possibilitiesManagement is Transactional day to day activities
Leaders vs. Managers1. The Leader1. The Manager Does the right things Does things right Creates a better system Improves the system Motivates people Directs peoples’ activities Focuses on achieving the Focuses on the job atvision Looks for long-termeffectivenesshand Looks for short-termachievements
Attributes of a Leader1. Vision1. Optimism2. Focus2. Energy3. Ethical3. Courage4. Flexibility4. Team builder
Mistaken LeadershipAttributes1. Loyalty1. Hard worker2. Popular with clients3. Good designer
Ten Commandments ofLeadership1. Treat everyone with2.3.4.5.respectSet an example forothers to followBe an active coachInsist on excellence andaccountabilityMaintain high standardsof integrity1. Build group pride2. Show confidence in yourpeople3. Maintain a sense ofurgency4. Be available and visible5. Continually develop yourown skills
Leadership DevelopmentAction Plan1. Walk the Talk – visibly demonstrate the TenCommandments of Leadership2. Mentor, mentor, mentor – senior management needspersonal responsibility to develop new leaders3. Accountability – make the Ten Commandments ofLeadership part of your performance appraisals4. Culture – reward leadership first
Personality Traits10105500AssertiveResponsive
Personality Traits10Responsive050Assertive10
Personality TraitsDriver (Control Taker)PushySevereTough cisiveEfficientAnalytic (Data ssive maticGregariousAmiable dSupportiveRespectfulWillingDependableAgreeable
Maslow’s HierarchySelf ActualizationSelf-EsteemSocialAutonomyCompetence AchievementMembership InclusionAssurance of Basic NeedsSecurityPhysiologicalBasic Needs
Job vs. Career PersonnelMotivational FactorsHygiene Factors1. Challenge1. Money2. Responsibility2. Fringe Benefits3. Professional Advancement3. Office Space4. Personal Development4. Titles
Herzberg’s MotivationFactors(percent satisfiers-engineers)AchievementRecognitionWork ItselfResponsibilityAdvancementCo. PolicySalaryRelations w/BossWorking Conditions-40-30-20-10010203040
Improving Employee QualityNumber of EmployeesAverageEmployeeQualityYellowRed, Green, BlueQuality of Employees
Where Have Allthe People Gone?Bachelors Degrees Since rcent Change Since 1986(Source: Engineering Workforce Commission)
Working the PipelinesLEADSRESUMESPROJECTSEMPLOYEES
Who Do You Want to Hire?1. Team Players2. Technical and Business Savvy3. Oral and Written Communications Skill4. Experience vs “The Right Stuff”
Pruning the Bushes1. Let everyone know your HR managementphilosophy.2. View temporary slowdowns as opportunities.3. Once you have decided to amputate your hand,don’t do it one finger at a time.4. Treat departing employees with respect.
Costs & Benefits ofEmployee TurnoverCosts -- 10,000 - 20,000 per exemptemployee1.Training cost for replacement2.Lost productivity (learning curve)3.Lost capability4.Impact on client relations5.Disruption during transition to newemployee6.Impact on employee moraleBenefits -- Non-quantifiable, butsignificant1.Elimination of marginalperformers2.Reduces “salary creep”3.Increases advancementopportunities for younger staff4.Infusion of new talents,approaches, ideas
PROFITABILITYEmployee Turnover Ratevs. OYEE TURNOVER RATE45%
Project Management FlowDiagramDefineProjectScopeAgreement ForServicesSetupProjectScheduleDefine ProjectScope ysisMonitorScope Action &ControlMonitorScheduleScopeScope ChangesResponsibilitiesScheduleTerms of PaymentPrepare QualityPlanMonitorBudgetIdentifyProjectTeam Scope ChangeReports Progress Reports ScheduleRevisions Staffing Changes Change AdverseTrends Monitor QualityPlan Documentation toFilesCommunicate Regular Meetings with Action MinutesCirculate CorrespondenceTelephone Conversation RecordsTalk to Team Regular FrequencyTalk to Client with Regular Frequency Follow up withClient to EnsureSatisfaction Review ProjectTeam MemberPerformance Complete ActualSchedule toPlannedScheduleAnalysis Complete ActualBudget toPlanned BudgetAnalysis
Planning the Project1. When Should You Begin to Plan?2. The Objectives of Planning3. Goals vs. Tasks vs. Priorities4. Elements of a Project Management Plan (PMP)5. Crisis Prevention/Risk Management
Elements of a Project MgmtPlan1. Goals & Objectives2. Scope3. Schedule4. Financial Plan5. Team Organization, Resources, Responsibilities6. Quality Control Process7. Change Management Process8. Communication Plan9. Contingency/Risk Management Plan
The Assistant ProjectManager1. Official or Unofficial?Client2. Performs specific PM tasksPICProjectManager3. Pinch hits during PM’s absenceAssistantPM4. Allows PM to handle more jobs5. Accelerates development of new PMs Build a relationship with a targeted client contact Suggest a value added idea at a client meeting Attend client meetings to observe dynamics Prepare project close-out and lessons-learnedArchCivilMechElec
Why Are We So Bad atTeamwork?
Why Teams Fail1. No Clear Vision1. Lack of Team Purpose2. Poor Team Behavior2. Personal Agendas3. Focus on Personalities3. Unwilling to Participate4. Lack of Feedback4. Value Conflicts
Characteristics of EffectiveTeams1. Collective AND Individual1. Most decisions by consensus2. “Atmosphere” is relaxed2. Constructive disagreements3. Lots of discussion3. Criticism is comfortable4. Objective well understood4. Clear assignments made &Accountability5. Members listen to eachotheraccepted5. Leadership shifts from time totime
The “Static” View ofDelegation50454035302520151050Your time to dothe taskYour time todelegate itDelegatee's timeto do it
Delegation AerobicsYour time to delegate the taskDelegatee's time to do thetaskTime spent doing it yourself12345678Number of Iterations910
Delegation AerobicsYour time to delegate the taskDelegatee's time to do thetaskTime spent doing it yourself12345678Number of Iterations910
Ten Steps to Better Delegation1.2.3.4.5.6.7.8.9.Select the right personProvide all the available informationAsk what additional information is neededClearly define the product you expectAgree on the proper approachAgree on a completion dateAgree on a level of effortEstablish control mechanisms (MBWA & MBAQ)Expect the product to be 30% different; 10%wrong10. Give credit; take blame
What is a Good ConsultantWhen vendors, consultants, and contractors asked the President ofIntel Corporation how they can get more work from the giant chipmanufacturer, he told them:“Go out and learn how to make chips. Thencome back and help us do it better.”
WHY DO CUSTOMERSDEFECT?NEW SFACTION14%INDIFFERENCE BYSUPPLIER68%
Battling “Indifference”1. Managing your Client2. Superior Client Service3. Keeping Relationships Fresh4. Proactive Communication
Passive Marketing/TouchingClients1. Forward an article about a1. Send clippings on other2. Forward info on new2. Send a handy tool orclient’s businesslegislation affecting them3. Send a book about strategiesin their business4. All phone calls equal onetouchprojects or industry trendschecklist that makes theirjob easier3. Thank you notes4. Lunches & Breakfasts5. Company Newsletters
The RuleAnnual Revenue GenerationMarketing Budget ConsumptionRepeat clients %Repeat clients %New clients %New clients %
Critical Success Factors inManaging Your ClientLeadershipManagement1. Know your client1. Maintain focus2. Understand your client’s2. Be responsivebusiness3. Meet commitments3. Be an equal partner4. Communicate effectively4. Foster trust5. Be prepared5. Demonstrate credibility6. Be persistent when you6. Anticipate – Don’t ReactNo Surprises!!!!!!need input
How Well Do You Know YourClient?1. Who does your client report to?2. Why are they organized the way they are?3. What are their strategic drivers?4. Where do the decision makers sit?5. What do they value and expect in their relationship6.7.8.9.with you?What do they read?What is their career path?What are their outside interests?What hassles can you remove from their life?
How Satisfied Are YourClients?1. Solicit feedback (1 page surveys)2. Send clients a piece of paper marked “ How Can WeDo Better?” (Include the pen and postage paid envelope)3. Ask clients to keep a sheet entitled“Things Consultants Do That Bug Me”4. Collect, Summarize, Share, Do It Again!!!!!Keeping Clients Happy Keeping Clients
The 5 Be’s to Superior ClientService1. Be Accessible: easy to be contacted2. Be Responsive: adapt to client needs3. Be a Closer: do what you say you will do4. Be Quick to Correct: bad news doesn’t get better withage5. Be Passionate: it’s contagious
Presenting Bad News – SpinControl1. Get bad news out as early as possible2. Make sure clients hear it from you first3. Take responsibility immediately4. Present alternatives5. “Your first loss is your last loss”
Seven Steps to Managing aCrisis1. Don’t react immediately - THINK2. Define the problem (not just the symptoms)3. Identify all the alternatives4. Don’t assess blame5. Select the alternative(s) you believe will work6. Take positive, authoritative action7. When the dust settles, assess the results
Managing Change1. Define the change management process as part of thePMP2. Always embrace client change with great enthusiasm3. DO NOT avoid the discussion on impacts to scope,schedule or budget4. Present the consequences of the change Let the client decide on implementation5. Define Freeze-Milestones and Client-Decision Matrix
Going to the Client for MoreMoney1. Plan early.2. Establish the change order procedure up front.3. Get immediate concurrence from the client of changes.4. Keep good documentation.5. Limit small changes (aka, scope creep).6. Never agree to do extra work without authorization.7. When in doubt, ask for the money!
Building a StrongProject Management Structure1. Diagnose the problems(PM audit)4. Conduct regularproject reviews3. Train your PMs2. Install a foundation basedon earned value tracking
What is “Net Revenue Deficit”?Direct Labor MultiplierTarget3.4Proposal cut3.2Negotiations3Over budget2.8Unbillable WIP2.6Uncollectible A/R2.4AchievedN et R evenueDeficit2.2254
What Causes “NetRevenue Deficits”?NRD Σ (Project Write-downs – Project Write-ups)Annual Net Revenue1. Fee reductions2. Jobs in budget trouble3. Jobs with potential4.5.6.7.8.quality/liability problemsCharges to jobs w/o contractsDelays in getting charges keyedinto accountingDelays in getting charges billedLate paymentJobs with unusually high risks55
How Can You Generatea Net Revenue Surplus?4D.L. etMultiplierOverBudgetA/RWriteoffIncentiveFeesL.S. rget Multiplier Viewed as a CeilingTarget Multiplier Viewed as a Floor56
Method #1:Upward BudgetingProposed Fee Contingency Expenses (ODCs) BillingRatesProfit Total Cost Overhead RatexDirect Labor Hourly RatexStaff HoursWBS (Task Outline)Initial Goal57
Method #2:Downward BudgetingAchievable FeeContingencyExpenses (ODCs)Profit BillingRatesTotal Cost Overhead Rate Direct Labor Hourly Rate Staff HoursWBS (Task Outline)Initial Scope58
Budget Method #2a:Real World BudgetingAchievableContract FeeProposedContract FeeProfitProfitTotal CostTotal CostOverheadOverheadDirect LaborDirect LaborHourly RateHourly RateStaff HoursStaff HoursTask ListTask ListInitial ScopeInitial Scope59
A Little QuizYourProject 100,000 BudgetPresentStatus 40,000 SpentWhat’s the% Complete? 30%10-Month Schedule6 Months Spent 40% 50% 60% 70%60
How Does This Project Look? 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 -Fee 200,000Forecast Cost 173,790Planned Profit 26,210Planned un1-May1-Apr1-Mar1-Feb1-JanActual Expenditures61
What Happened onthe Way to the Bank? 220,000 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 -Fee 200,000Final Cost 214,873Project Loss 14,873Planned ep1-Aug1-Jul1-Jun1-May1-Apr1-Mar1-Feb1-JanActual Expenditures62
You Can Avoid This ProblemBy Using the EAC Method1.Take outseparateaccountingcodes for eachtask/activity2.To assessstatus,generate aforecast tocomplete (FTC)for eachtask/activity3.Get actualexpendituresfromAccounting foreachtask/activity4.Add Steps 2and 3 todetermine theEstimate atCompletion(EAC)63
Problems With the EAC Method1. You need lots of job costaccount numbers2. Team members don’tcharge their time tocorrect account numbers3. PM ends up being a“timesheet cop”4. Team has to estimateforecast to completeeach month64
PSMJ’s Simplified4-Step EVA Method1.Prepare an expenditure forecast Convert expenditure forecastto a progress forecast Change the baseline only ifthe contract is amended2.3.Estimate progress for each taskCompute overall progress4.Actual expenditures fromaccountingSchedule (Step 3 vs. Step 1)Budget (Step 3 vs. Step 4)65
Cost/Schedule BreakdownTasksA. Develop BackgroundB. Conduct Case Study1. Select Case Study Study2. Prepare Breifing Documents3. Develop Data Mgmt Plan4. Visit Case Study Sites5. Analyze Waste SamplesC. Evaluate Costs for Case Studies1. Develop Cost Models2. Perform Preliminary Designs3. Estimate CostsD. Evaluate Potential for TrtmtE. Assess Cost ImpactsF. Evaluate Cost Impact ModelsG. Project Reporting1. Topical Reportsa. Background Datab. Case Study Site Visitsc. Waste Sampling2. Draft Report3. Final ReportH. Project /2000
Projected Expendituresand Planned Progress 173,790 156,411 139,032 121,653 104,274 86,895 69,516 52,137 34,758 17,379 -100%90%80%70%60%50%40%30%20%10%0%Fee 200,000Forecast Cost 173,790Planned Profit y1-Apr1-Mar1-Feb1-JanProjected ExpendituresPlanned Progress67
Earned Value CalculationCurrent Date July 1
What is the ProjectSchedule Status?100%90%80%70%60%50%40%30%20%10%0%Fee 200,000Forecast Cost 173,790Planned Profit y1-Apr1-Mar1-FebProjected ExpendituresEarned Value1-Jan 173,790 156,411 139,032 121,653 104,274 86,895 69,516 52,137 34,758 17,379 -69
Are Your PMsDrowning in Data?One Firm’s Accounting Reports to PMs Division Time AnalysisPercent ChargeableDetail VerificationInvalid Transaction ReportDivision Aging ReportActive Projects with CompletionDates within 30 DaysUnauthorized Expenditure DetailReportActive Projects w/UnauthorizedItemsAuthorization Listing Items Made Non-Billable duringPeriod XRevenue Write-offs during Period XUnbilled Receivable/ UndistributedRevenue –AuditUnbilled Receivable/ UndistributedCost AgingManager’s Project StatusOperating StatementBudget & Expense ReportBudget & Expense ExceptionNear-Term Financial Action70
The 5 NumbersPMs Really NeedWeeklyLabor Detail2. Direct Cost Detail1.Inception-to-Date3.4.5.Other Numbers WIP A/R BillingLabor CostsDirect CostsSubcontractor CostsAccounting Tells UsProject-To-Date Costs 44,000 as of June 3071
It’s Not Too Late to Recoverthe Original Financial bFee 200,000Forecast Cost 173,790Planned Profit 26,210Planned ExpendituresActual ExpendituresEarned Value1-Jan 173,790 156,411 139,032 121,653 104,274 86,895 69,516 52,137 34,758 17,379 -72
With Practice, You’ll Learn toRead the CluesHow Can Earned Value Go Down?
What Does a PrincipalNeed to Know?1.Is the job set up properly in the accounting system?2.Has a PM Plan been prepared and distributed to the team?3.Are there pending change orders that need to be formalized?4.Has the job been billed recently?5.Are payments current?6.Is the job running over or under budget? If not, what correctiveactions are being taken?7.Is the project on schedule? If not, what corrective actions are beingtaken?8.Are the firm’s QA requirements being followed?9.Is the client happy?
Common Pitfalls inImplementing Project Reviews1.2.3.4.5.6.Allowing PMs to select which projects are to be reviewedScheduling reviews “when time is available”Doing the reviews for the benefit of corporate managersMaking reviews optional at the business unit levelBeating up PMs who present unfavorable project statusNot dealing with PMs who “don’t get it”
And How to Avoid Them1.2.3.4.5.6.7.8.9.Require every PM to present one project per monthDon’t try to review every project every monthDedicate 1 to 2 days every month for Project ReviewsPut dates for Project Reviews on your Fiscal Calendar, within 2 weeksafter the close of an accounting periodPublish list of projects, subject to review that month, 1 to 2 daysbefore the reviewsFollow up on PMs’ action items from the prior reviewsTweak the process as you gain experienceDon’t forget, it is not an inquisition, it is a coaching opportunityAccept that 20% of your PMs won’t “get it” – and deal with themappropriately
One Firm’s ProjectReview Process1. All PMs will submit Earned Value reports to their Office Managers each month. PlanTrax for fees 100,000PlanTrax Lite for fees 100,000 (or PlanTrax if PM prefers)2. Each Office Manager in conjunction with the Regional Manager will select a day eachmonth to conduct project reviews. Time allocated will be 30 to 60 minutes per PM, atthe discretion of the Office Manager. Office Managers will have a schedule in place onor before November 1.3. Office Managers will advise Regional Managers, PICs, COO and CFO which projects arescheduled for reviews each period. Regional Managers, PICs, COO and CFO will attendat their discretion (either in person or via web).4. Each PM must present at least one project each month. If the Office Manager is alsothe PM, the Assistant PM will present the project.5. Project reviews will include both PowerPoint and Excel templates (plus other clarifyingmanagement information that the PM may want to include).6. The COO will monitor the implementation of this process.77
How Many Projects Can IManage?Assume PM 10% of total project hoursA. Time spent managing projects %B. Total hours you work per year hrs/yrC.D.E.F.G.H.Average hours/week x 52 wks/yr Holiday, vacation, sick (nominally 280)PM hours available A x B Project hours managed/year C / 0.1 Your firm’s average billing rate Net fees you can manage D x E Net fees you actually manage PM overload G – F hrs/yrhrs/yr /hour /yr /yr /yrNote: This calculation assumes all work is done by in-house staff.For subcontracted work, multiply by 5.
How Do I Find TimeTo Do All This?UrgentI m portant
Time Management MatrixUrgentNot UrgentImportantIIManageFocusNot ImportantIDeceptionWasteIIIIVSource: Covey Leadership Center, Inc
Are YouHigh Performance?High Performance OrganizationsTypical OrganizationsUrgentNot UrgentNot %15% 1%2-3%IVSource: Covey Leadership Center, Inc
If You Want to Learn More PSMJ ResourcesOther Resources1. Financial Statistics Survey1. “Managing the Professional2. Fees & Pricing Survey3. Project ManagementBootcamp4. Principals Bootcamp5. CEO Forums on O/T andM&A6. PSMJ Monthly NewsletterServices Firm” by DavidMaister2. “Good to Great” by JimCollins3. “Staying Small Successfully”by Frank Stasiowski
And In Conclusion Please fill out the evaluation form:Call on us if we can help youBrad WilsonPhone: (857) 255-3204bwilson@psmj.comDavid BursteinPhone: (770) 723-9651dburstein@psmj.comSue LeComtePhone: (857) 255-3205slecomte@psmj.comWe hope to see you again soon!!!
2. Principals manage all projects; non -principals do the work 3. Non-principals manage small projects and/or tasks on large projects 4. Principals designate PMs (often called “Associates”) who perform some PM duties 5. Principals turn over all PM duties
IV. PMO Project Management Lifecycle (Refer to attachment 2 - OIT PMO Project Management Lifecycle) The Project Management Process governs the project life-cycle which is comprised of the following five phases: 1. Project Initiating phase 2. Project Planning phase 3. Project Funding phase 4. Project Executing phase 5. Project Closing phase
Project success is one of the most important topic in project management (Prabhakar, 2009). Importance of the project success varies by the contract of the project, type of project and individual role of personality in project also (Muller & Jugdev, 2012). Project success comprises of two parts. First is success of project management and
Users who have permission to access the Project Center in Microsoft Project Web App or Microsoft Project Professional 2010 can use the Project Center to work with any project or portfolio of projects to which they are assigned. Only projects that are published to the Microsoft Project Server 2010 database are available in the Project Center.
Project Risk Management A project planning enables project manager to translate project requirement into Work breakdown structure (WBS), tasks list, Gantt charts, resource assignment and risk register, etc. Once project charter is approved, the project is formally initiated. Project planning activity can begin
Positive project results depend on good judgment by project leadership as the project team navigates project risks and complexities. People Skills Project teams consist of groups of people enlisted to work together towards a common project goal. A Project Manager’s people skills are essential to guiding project teams to successful outcomes.
50 project tools, models and templates Develop a project with IRENA Project Navigator Industry-proven project development best practices BANKABLE PROJECT DEVELOPMENT The IRENA Project Navigator enables project stakeholders to avoid pitfalls that can jeopardise project success and helps to reduce the gap between project development
Choosing A Project Step 4: Get the Project Proposal Approved –Determine exactly what the benefiting organization needs –Talk with Scoutmaster and/or Project Coach about the project –Develop the Project Proposal (Part One of the Eagle Project Workbook), visit with the organization and make sure Scout and organization agree on scope and details of the project
A Guide to the Project Management Body of Knowledge (PMBOK Guide) - Fifth Edition 61 3 3 - PROJECT MANAGEMENT PROCESSES Table 3-1. Project Management Process Group and Knowledge Area Mapping 4. Project Integration Management 5. Project Scope Management 5.2 Collect 6. Project Time Management 6.4 Estimate 7. Project Cost Management 8. Project .
