12/16/08 1

Webinar Recovering Troubled Projects :

Practical Advice for Managing Suppliers

Featuring Christopher L. DennisSteaming Kettle Consultingchris@steaming-kettle.com

1

Brought to you by: Susan de la Vergne

and

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Who We AreWho We Are

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SusanChris

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Our ScenarioOur Scenario

• Grave boss • You are summoned

to a meeting…

• Grave boss • You are summoned

to a meeting…

Will you fix it?

Grave situation

You can

• Make accurate diagnoses• Triage efficiently, and• Cultivate good bedside manner

enhance your ability to recover troubled projects

when you

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Many Scary Questions

Do we know the real problem?

Can relationships change to accommodate an altered scope?

Are suppliers part of the problem?

Should we even try?

Can the problem project be saved?

Can the problem project be saved?

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Project SuppliersProject Suppliers

In Group

OutGroup

• Project Team

• Material supplier– Raw or Finished

• Service bureau– Design– Marketing

• Corporate– Purchasing– IT

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Project Pathogens

Project Pathogens

• Unproven technology• External events• Inadequate information• Unclear or wrong goals• Failure of

communication• Inadequate resources• Failure of management

You can You can

• Localize the source of troublesome symptoms• Deepen understanding of team/supplier relationships, and• Uncover suppliers’ secret power

• Localize the source of troublesome symptoms• Deepen understanding of team/supplier relationships, and• Uncover suppliers’ secret power

increase suppliers’ contributions to project recoverywhen you

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Example Work Breakdown Example Work Breakdown New Bicycle WBS

1.MarketResearch

2. Design 3. Prototype 4. Market 5. Transferto Prod.

CustomerInterviews

Frame Build DesignCampaign

SourceNew Parts

CompetitorSurvey

DriveTrain

MechanicalTest

RecruitNew Retail

ModifyLine

FinancialAnalysis

Finish MarketTest

TeamSponsorship

AlterDistribution

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Step 1: ID Troubled Work Step 1: ID Troubled Work New Bicycle WBS

1. MarketResearch

2. Design 3. Prototype 4. Market 5. Transferto Prod.

CustomerInterviews

Frame Build DesignCampaign

SourceNew Parts

CompetitorSurvey

DriveTrain

MechanicalTest

RecruitNew Retail

ModifyLine

FinancialAnalysis

Finish MarketTest

TeamSponsorship

AlterDistribution

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Step 2: List Suppliers for TW

Step 2: List Suppliers for TW

New Bicycle WBS

3. Prototype

Build

MechanicalTest

• As you list, look for – Repeating names– New relationships– New services/

materials

• As you list, look for – Repeating names– New relationships– New services/

materials

Steel StampingWest WeldingIronworks, Inc.

Sensors ’R UsWild RideWest WeldingData Bucket

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Step 3: Map SymptomsStep 3: Map Symptoms

• Common symptoms – Delivering nothing– Delivering

garbage– Delivering late – High costs

• Eliminate asymptomatic

• Common symptoms – Delivering nothing– Delivering

garbage– Delivering late – High costs

• Eliminate asymptomatic

Noth

ing

Garb

ag

e Late

Cost

Steel Stamping

West Welding*

Ironworks, Inc.

Sensors ’R Us

Wild Ride

Data Bucket

3. Prototype

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ProjectGantt Chart

Step 4: Localize SymptomsStep 4: Localize Symptoms

• Did project teamset up trouble by…?– Failing to deliver– Delivering garbage– Delivering late – Passing on costs

• Did project teamset up trouble by…?– Failing to deliver– Delivering garbage– Delivering late – Passing on costs

• Dependencies– Evaluate input

quality

• Dependencies– Evaluate input

qualityFixed

UnworkableDesign

NoExcuse

ProjectTeamDelay

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Diagnosis ChecklistDiagnosis Checklist

Troubled work packages, prioritized– Critical path

List of vendors– Symptomatic interactions

Localized symptoms– Root cause helpful but not necessary– May never know root cause

• To increase contributions– Must know the ‘now’ contribution

Troubled work packages, prioritized– Critical path

List of vendors– Symptomatic interactions

Localized symptoms– Root cause helpful but not necessary– May never know root cause

• To increase contributions– Must know the ‘now’ contribution

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Deepen Understanding of Team/Supplier Relationships

Deepen Understanding of Team/Supplier Relationships

• People– Quality of interaction

• Statement of Work– Is it working?

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Supplier Relationships

Supplier Relationships

SalesContractingLeadersInformation

ExchangeMaterial ExchangeFeedback/compliancePayment

SalesContractingLeadersInformation

ExchangeMaterial ExchangeFeedback/compliancePayment

In Group

OutGroup

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Step 1: Diagram Relationships

Step 1: Diagram Relationships

Role In Group Out Group

Project Team West Welding

Sales Anne M. Rex Semter

Leaders Me Alan Bailey

Design Hand-off

Empty (Quit) Alan Bailey

QA/QC, Handback

Santosh J. ??? (Don’t know)

Accts Pay. Clerk 1 Clerk 2

Be ClearAbout

Vacancies

RecognizeKnowledge

Gaps

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Step 2: Quality AssessmentStep 2: Quality Assessment

• Look For– Silence– Fear– Fatigue– Disinterest– Overload– Misunderstandi

ng– Surprise– Your insight…

• Look For– Silence– Fear– Fatigue– Disinterest– Overload– Misunderstandi

ng– Surprise– Your insight…

Role IG OG

Sile

nce

Fear

Fatig

ue

Overlo

ad

Su

rpris

e

Sales AM

RS

Leaders Me AB

Design Hand-off

0 AB

QA/QC, Handback

SJ ???

Accts Pay.

C1 C2• Assessment worksheet– http://www.steaming-kettle.com/Pages/proj.html

• Assessment worksheet– http://www.steaming-kettle.com/Pages/proj.html

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• Consider– Role clarification– Personnel swaps – Strategic awareness– Goal alignment– Their ideas

• Remember, their engagement and action is a contribution

Step 3: Collaborate on Adjustments

Step 3: Collaborate on Adjustments

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Revisiting SOWListen FirstRevisiting SOWListen First• Problems you might not

know about• Fresh solution ideas• People are more likely to

implement ideas they own

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Revisiting SOWChoosing Words

Revisiting SOWChoosing Words• Get rid of “win-win”

– You’re asking for more– Supplier indicates a

win for them

• Use questions to generate possibilities– New possibilities are a

significant contribution

• Get rid of “win-win”– You’re asking for more– Supplier indicates a

win for them

• Use questions to generate possibilities– New possibilities are a

significant contribution

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How is the SOW inhibiting delivery?

How is the SOW inhibiting delivery?Help reveal

the supplier’s viewpoint

Help remove onerous constraints

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What contribution is needed?

To increase suppliers’ contributions to project recovery…

2. Do something spectacular– Unveil vendors’ secret power

1. Fulfill supplier promise– Review

scope of work

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Contribution’s

Benefit • Why should a suppler

increase their contribution?– They can sell it to the next

customer

• Ensure vendors a real benefit– Whole-hearted endorsement– Ownership stake

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The Power of “Wow!”The Power of “Wow!”

• Use end-of-recovery viewpoint– What will your organization say after the

contribution?– What would the supplier put on their web

site after the contribution?

• Use “Wow!” to open up possibilities– Fear constrains thinking– Break everyone’s mind set

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Wow! We made up four weeks using their embedded systems programmer!

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Wow! A great

power supply design! On

time and 20% savings!

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Your Mission: Three Wow! Statements

Your Mission: Three Wow! Statements

• Look back after recovery– Hear your sponsor’s voice– Imagine a vendor’s marketing

flyer

• Think big, smile, laugh at your outrageousness

• Look back after recovery– Hear your sponsor’s voice– Imagine a vendor’s marketing

flyer

• Think big, smile, laugh at your outrageousness

1!

2!

3!

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Getting the Message OutGetting the Message Out

• You don’t know who has the secret power– Every vendor– Vendor’s vendors– Vendor’s consultants

• Personal, personal, personal– Secret powers

revealed by trust– Engage the team

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Starting the “Secret Power” Conversation

Starting the “Secret Power” Conversation

“What do you dothat we don’t know about?”

Why do

you ask?

We searching for

a partner to…

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Guam Networking Example

• Objective: Replace billing system (Budget >$1M)

• Trouble: IT staff, reliable network• Wow!:

– “With their help we made up four weeks and reduced packet loss by three orders of magnitude!”

• Secret power:– Rate consultant -> IT team– Brought in via rate consultant contract– Question asked to work begun: < 2 weeks

• Cost: ~15% of total budget

You can You can

• Localize the source of troublesome symptoms• Deepen understanding of team/supplier relationships, and• Uncover suppliers’ secret power

• Localize the source of troublesome symptoms• Deepen understanding of team/supplier relationships, and• Uncover suppliers’ secret power

increase suppliers’ contributions to project recoverywhen you

Credits

Credits

• Bearded Boss, http://images.picturequest.com/common/detail/82/82/22158282.jpg• Surgeon, http://www.brainybetty.com/medical4.htm• X-ray Doc, http://www.brainybetty.com/medical4.htm• Fem doc, http://hcmasolutions.net/images/female%20MD.jpg• Mixed herds, http://www.biology.duke.edu/bio217/2005/cjc6/cows%20and%20sheep.jpg• Yarn ball, http://image2.etsy.com/il_fullxfull.24983394.jpg• Legionella, http://biyolojiegitim.yyu.edu.tr/k/Legi/images/Legionella%20bacteria_jpg.jpg • Doctor checklist, http://www.newyorker.com/images/2007/12/10/p465/071210_r16884_p465.jpg• Couples counseling, http://youngadultcrisishotline.files.wordpress.com/2008/05/untitled.jpg• Parallel ladders,

http://blogs.consumerreports.org/home/images/2007/03/20/householdextensionladders_3.jpg• Rescue stretcher, http://www.coveredinbees.co.uk/images/trish.jpg• Lies, http://img280.echo.cx/img280/4048/lies3pf.jpg• Rabbit ears,

http://api.ning.com/files/KaywOhvDuuMP5x3AAZutrNUsO2pB6a9m5XO1UPQQuQfhTFMNG6v4eLr8NylV7V*2h*MQYQYDMG72qni2TiolYv00yJSUU4Wx/ears.jpg

• Dictionary, http://curtissannmatlock.typepad.com/photos/uncategorized/2008/08/11/gran_dictionary.jpg• Amish buggy, http://mediaroom.visitpa.com/files/hi_horse_buggy.jpg• Bloody prison, http://growabrain.typepad.com/photos/uncategorized/prison_cell.jpg• Great winter wall, http://farm1.static.flickr.com/28/63859030_18b9f0d92b_b.jpg • Broken heart, http://photoshopcontest.com/images/large/zyizcfrtx1q0tdrkugfj602casbn6rj9qbto.jpg • Recovery ribbon, http://admin.eventdirector.net/RESOURCES/SEALT/SITES/543/ZUSER/nzbcf%20pink

%20ribbon%20with%20tm.jpg• Moving day, http://lh6.ggpht.com/_h_JwTY5QRh4/RtmucCccWEI/AAAAAAAAA2g/ckkLZqBqhPU/IMG00433.jpg• Happy leap, http://croftonacupuncture.com/db5/00415/croftonacupuncture.com/_uimages/

bigstockphoto_Three_Girl_Friends_Celebrating_212140.jpg• Embedded system, http://fuxiontechnologies.net/images/embeddedsystems.jpg• Topo map, http://greenbrierriverproperties.com/Graphics/TOPOMAP.JPG• Copper wire, http://www.e-dot.com/CopperWire.jpg• Hand light bulb, http://www.debtreliefday.com/wp-content/uploads/2008/04/light-bulb3.jpg• Cell & clipboard, http://www.baseballmusings.com/archives/SheaBlogging.jpg• Guam map, http://aaa.via.infonow.net/locator/images/region_AS.gif• Flight surgeons, http://www.torch.aetc.af.mil/shared/media/photodb/photos/080101-F-0000T-006.jpg

• Bearded Boss, http://images.picturequest.com/common/detail/82/82/22158282.jpg• Surgeon, http://www.brainybetty.com/medical4.htm• X-ray Doc, http://www.brainybetty.com/medical4.htm• Fem doc, http://hcmasolutions.net/images/female%20MD.jpg• Mixed herds, http://www.biology.duke.edu/bio217/2005/cjc6/cows%20and%20sheep.jpg• Yarn ball, http://image2.etsy.com/il_fullxfull.24983394.jpg• Legionella, http://biyolojiegitim.yyu.edu.tr/k/Legi/images/Legionella%20bacteria_jpg.jpg • Doctor checklist, http://www.newyorker.com/images/2007/12/10/p465/071210_r16884_p465.jpg• Couples counseling, http://youngadultcrisishotline.files.wordpress.com/2008/05/untitled.jpg• Parallel ladders,

http://blogs.consumerreports.org/home/images/2007/03/20/householdextensionladders_3.jpg• Rescue stretcher, http://www.coveredinbees.co.uk/images/trish.jpg• Lies, http://img280.echo.cx/img280/4048/lies3pf.jpg• Rabbit ears,

http://api.ning.com/files/KaywOhvDuuMP5x3AAZutrNUsO2pB6a9m5XO1UPQQuQfhTFMNG6v4eLr8NylV7V*2h*MQYQYDMG72qni2TiolYv00yJSUU4Wx/ears.jpg

• Dictionary, http://curtissannmatlock.typepad.com/photos/uncategorized/2008/08/11/gran_dictionary.jpg• Amish buggy, http://mediaroom.visitpa.com/files/hi_horse_buggy.jpg• Bloody prison, http://growabrain.typepad.com/photos/uncategorized/prison_cell.jpg• Great winter wall, http://farm1.static.flickr.com/28/63859030_18b9f0d92b_b.jpg • Broken heart, http://photoshopcontest.com/images/large/zyizcfrtx1q0tdrkugfj602casbn6rj9qbto.jpg • Recovery ribbon, http://admin.eventdirector.net/RESOURCES/SEALT/SITES/543/ZUSER/nzbcf%20pink

%20ribbon%20with%20tm.jpg• Moving day, http://lh6.ggpht.com/_h_JwTY5QRh4/RtmucCccWEI/AAAAAAAAA2g/ckkLZqBqhPU/IMG00433.jpg• Happy leap, http://croftonacupuncture.com/db5/00415/croftonacupuncture.com/_uimages/

bigstockphoto_Three_Girl_Friends_Celebrating_212140.jpg• Embedded system, http://fuxiontechnologies.net/images/embeddedsystems.jpg• Topo map, http://greenbrierriverproperties.com/Graphics/TOPOMAP.JPG• Copper wire, http://www.e-dot.com/CopperWire.jpg• Hand light bulb, http://www.debtreliefday.com/wp-content/uploads/2008/04/light-bulb3.jpg• Cell & clipboard, http://www.baseballmusings.com/archives/SheaBlogging.jpg• Guam map, http://aaa.via.infonow.net/locator/images/region_AS.gif• Flight surgeons, http://www.torch.aetc.af.mil/shared/media/photodb/photos/080101-F-0000T-006.jpg

Email:chris@steaming-

kettle.com

Steaming Kettle Consulting

Phone:503-803-7627