crash course in project management - squarespace · crash course in project management jon hicks,...

CRASH COURSE IN PROJECT MANAGEMENTJon Hicks, MBA, PMP®

Scaling Value

® ScalingValue.com

Course Overview• Day 1

• What is Project Management?• Where does it fit in to today’s organizations?• The Role of the Project Manager• The Getting Things Done Methodology

• Day 2• Barriers to Success• PMBOK Overview• Essential Project Components

® ScalingValue.com

Projects and Project Management

® ScalingValue.com

What is a Project?• A problem scheduled for solution

• “A temporary endeavor undertaken to produce a unique product, service, or result.”

• Unique and Temporary

• Completed when the project goals are achieved or determined the project is no longer viable

• A successful project is one that meets or exceeds the expectations of your stakeholders

® ScalingValue.com

Project Management Constraints• This is one of the most important concepts in project

management (and life!)

• Fast, cheap, or good: pick two

• Anytime one constraint is changed, the others are also affected

® ScalingValue.com

Project Management Constraints• Originally called the Iron Triangle, now sometimes called

the PM Diamond or the PM Star

• In addition to the main triple constraints:• Performance/Quality• Risk• Resources

® ScalingValue.com

Project Management Constraints

® ScalingValue.com

Successful Projects• What determines the success of a project?

• Project meets stakeholder needs

• Project stays within the constraints

• What does it take to make this happen?

• People skills

• Technical competency

® ScalingValue.com

What Is Project Management?• “Application of knowledge, skills, tools, and techniques to

meet the project requirements.”

• The art and science of producing results

® ScalingValue.com

What Is Project Management?• How do we approach it?

• Ready, Fire, Aim• Waterfall• Progressive Elaboration• Agile

• What are we focused on?• Clearly defined methods (PRINCE2)• Efficiency (Lean)• Environmental Impact (PRISM)• Managing most projects most of the time (PMI)

® ScalingValue.com

Project Management vs. Operations• Operations are ongoing and repetitive

• Continuous work without an ending date; repeating a process to produce the same results

• Examples?

® ScalingValue.com

Project Management vs. Operations• Purpose of Operations is to keep the organization

functioning

• Purpose of a Project is to meet its goals and to conclude

• At completion of a project, the end product (or result) may get turned over to the organization’s operational areas for ongoing care, maintenance, and perhaps production

® ScalingValue.com

Hierarchy of Efforts• Programs are projects (and other work) managed

collectively to capitalize on benefits that would not be achievable if managed separately

• Portfolios are collections of programs and projects grouped together to support a strategic business goal or objective

® ScalingValue.com

Hierarchy of Efforts

Portfolio

Projects

Program Program Program

® ScalingValue.com

The Project Life Cycle• Most projects are divided into phases; all projects large and

small have a similar life cycle

• Project Phases• Segments of work that allow for easier management, planning, and

control of work• Work and deliverables produced are typically unique to that phase• Some projects have one phase; others, many

• All projects have a similar life cycle structure:• Starting the project• Organizing and preparing• Carrying out the project work• Closing the project

® ScalingValue.com

The Project Manager

® ScalingValue.com

The Importance of (Good)Project Management• In 2012, 38% of projects did not successfully meet their

goals (a 10% increase since 2008) (PMI, 2013)

• 97% say it’s important, but only 54% say their organizations fully understand its value (PwC, 2012)

• 13.5% of all dollars spent on projects is at risk (PMI, 2013)

• As much as a third of money spent on failed projects can never be recovered (PMI, 2013)

® ScalingValue.com

Role of the Project Manager• Always has responsibility, hopefully has authority

• Balance the triple (or more) constraints

• Top three project management skills?• People skills, people skills, and people skills

• Three dimensions to project management competency• Knowledge• Performance• Personal

® ScalingValue.com

What’s It Really Like?• Lots of Meetings

• Lots of Documents and Reports• But not necessarily the right ones

• Hitting a Bullet with Another Bullet

® ScalingValue.com

The Talent Triangle• Technical Skills

• Interacting with your product

• Leadership Skills• Interacting with your team

• Business Acumen• Interacting with your environment

• Productivity• Interacting with yourself

® ScalingValue.com

Getting Things Done

® ScalingValue.com

The Foundation• Uncertainty and fuzzy boundaries are the norm

• Mind Like Water Is Possible, but only through relaxation

• Dealing Effectively with Internal Commitments• Get it out of your head• Clarify your commitment and next action• Organize them within a trusted system

• Manage Your Actions, Not Your Time

® ScalingValue.com

Five Stages of Mastering Workflow• Collect

• Limit the number of inboxes and make sure everything goes through them

• Process (Clarify)• Decide where the thing needs to go for its next action and put it there

• Organize• All you need is lists and folders

• Review• Periodically, review everything

• Do

® ScalingValue.com

How Do We Decide What to Do?• Three Models

• The Four-Criteria Model for Choosing Actions in the Moment• The Threefold Model for Evaluating Daily Work• The Six-Level Model for Reviewing Your Own Work

• Different Perspectives• Horizontal Focus• Vertical Focus

® ScalingValue.com

Choosing Actions in the Moment• Context

• Time Available

• Energy Available

• Priority

® ScalingValue.com

Evaluating Daily Work• Pre-defined Work

• Ad Hoc Work

• Defining Work

® ScalingValue.com

Reviewing Your Own Work• Runway: Current Actions

• 10,000 Feet: Current Projects

• 20,000 Feet: Areas of Responsibility

• 30,000 Feet: One- to Two-year Goals

• 40,000 Feet: Three- to Five-Year Mission

• 50,000+ Feet: Life

® ScalingValue.com

The Five Phases of Planning• Defining Purpose and Principles

• Think about “Why”• Identify constraints and assumptions (the rules)

• Outcome Visioning• Focus and Clarity

• Brainstorming• Capture everything and reap the benefits of distributed cognition

• Organizing

• Identifying Next Actions

® ScalingValue.com

Project Selection

® ScalingValue.com

Five Parts of Every Business1. Creates something of value…

Value Creation: Discovering what people need or want, then creating it.

2. That other people want or need…Marketing: Attracting attention and building demand for what you’ve created.

3. At a price they’re willing to pay…Sales: Turning prospective customers into paying customers.

4. In a way that satisfies the customer’s needs and expectations…Value Delivery: Giving your customers what you’ve promised and ensuring that they’re satisfied.

5. So that the business brings in enough profit to make it worthwhile for the owners to continue operation.Finance: Bringing in enough money to keep going and make your effort worthwhile.

® ScalingValue.com

Projects and Strategy• Effective project management is aligned with the

organizational strategy

• When aligned, there is a greater chance of success• Greater relevance• Higher priority• Longer-term impact

• Projects may be more appropriate than operations• Part of a short-term initiative• More flexible constraints

® ScalingValue.com

Barriers to Success

® ScalingValue.com

Why Do Projects Fail?• Impossible Constraints

• Insufficient planning and inadequate communication (undocumented goals, poor stakeholder management)

• An unwillingness to be uncomfortable

• Over-ruled by a need for action• Often results in the shotgun approach• Can become pathological

® ScalingValue.com

Why Do Projects Fail?• Assumptions

• About resources, dependencies, requirements, constraints…

• Cognitive Biases• Mental shortcuts• Predictably irrational

® ScalingValue.com

The Importance of Planning• Failing to plan is planning to fail.

• The earlier you begin coding the later you finish.

• One hour of planning equates to three hours of execution.

Time

Pain

® ScalingValue.com

The PMBOK

® ScalingValue.com

PMBOK Overview• Meant more as a tool box than a cook book

• PMBOK structured around:

• Three chapters of Foundations

• Ten Knowledge Areas

• 47 individual Processes structured within Knowledge Areas and Process Groups, each with specific Inputs, Tool & Techniques, Outputs

® ScalingValue.com

Ten Knowledge Areas• Integration Management

• Involves identifying and defining the work of the project and combining, unifying, and integrating the appropriate processes

• Scope Management• Concerned with defining all the work of the project and only the

work needed to successfully produce the project goals

• Time Management• Concerned with estimating duration of project plan activities,

devising a project schedule, monitoring and controlling deviations from the schedule

® ScalingValue.com

Ten Knowledge Areas• Cost Management

• Establish cost estimates for resources, establish budgets, and keep watch over those costs to ensure the project stays within the approved budget

• Quality Management• Focuses on product quality as well as on the quality of the project

management process used during the project

• Human Resources Management• Involves all aspects of people management and personal

interaction, including leading, coaching, dealing with conflict, conducting performance appraisals, and more

® ScalingValue.com

Ten Knowledge Areas• Communication Management

• Seeks to ensure that all project information is collected, documented, archived, and disposed of at the proper time

• Risk Management• Concerned with identifying, analyzing, and planning for potential risks,

both positive and negative, that might impact the project

• Procurement Management• Includes processes involved with purchasing goods or services from

vendors, contractors, suppliers, and others outside the project team

• Stakeholder Management• Ensures that information is distributed and shared with stakeholders,

management, and project members at appropriate times

® ScalingValue.com

Process GroupsInitiating Planning Executing Monitoring & Controlling Closing

©2013 PMI. PMBOK® Guide – Fifth Edition

® ScalingValue.com

Process Groups

©2013 PMI. PMBOK® Guide – Fifth Edition

® ScalingValue.com

Process Groups

©2013 PMI. PMBOK® Guide – Fifth Edition

® ScalingValue.com

The PMBOK Process Matrix

® ScalingValue.com

Integration

® ScalingValue.com

Project Integration Management• Bringing and Keeping It All Together

• Biggest Challenges• Lack of Clarity• Lack of Focus• Lack of Consistency

• Keys to Success• Project Charter• Having a Plan• Controlling Changes• Project Close Out

® ScalingValue.com

Project Integration Management

Initiation Planning Executing Monitoring & Controlling Closing

Develop Project Charter

Develop Project

ManagementPlan

Direct & Manage

Project Work

Monitoring & Controlling

Project Work

Close Project or Phase

Perform Integrated Change Control

® ScalingValue.com

The Project Charter• The most important document

• Officially begins the project/phase

• Provides the business case, objectives, and success criteria of the project

• Makes sure you’re working on the right problem, at the right time, on the right level

® ScalingValue.com

Project Charter Inputs• Statement of Work is a narrative description of products or

services to be delivered by the project; it references:

• Business need

• Product scope description

• Strategic Plan

• Business case: Provides the necessary information from a business standpoint to determine whether or not the project is worth the required investment

® ScalingValue.com

• Project Objective(s)• Project Overview• Project Authority• Mission Statement• Vision Statement• Success Criteria• Technical Performance Commitment

• Scheduled Commitment• Cost Commitment

Additional Project Charter Inputs• Acquisition Strategy• High Risk Areas• Status Reporting Commitment

® ScalingValue.com

Class Exercise – The Project Charter• Read the Kitchen Heaven Case Study

• Fill in the Project Charter template from PMI

® ScalingValue.com

Stakeholders

® ScalingValue.com

Project Stakeholder Management• Knowing Who to Work With and Satisfy

• Biggest Challenge• Stakeholder Analysis

• Keys to Success• Stakeholder Register

® ScalingValue.com

Project Stakeholder Management

Initiation Planning Executing Monitoring & Controlling Closing

Identify Stakeholders

Plan Stakeholder Management

Manage Stakeholder Engagement

Control Stakeholder Engagement

® ScalingValue.com

Identifying Stakeholders• The process of identifying people impacting or impacted

by the project; also analyzing and documenting information about them

• Stakeholder Analysis

• Systematically gathering and analyzing quantitative and qualitative information

• Relating the stakeholders to the purpose of the project

• Identifying stakeholder relationships

® ScalingValue.com

Identifying Stakeholders• Not all Stakeholders are created equal

• Direct vs. indirect• Active vs. passive• Categorize on the basis

of interest, influence, andinvolvement

©2013 PMI. PMBOK® Guide – Fifth Edition

® ScalingValue.com

Stakeholder Register• The document that contains all this valuable information that

you’ve gathered

• Three categories of information• Identification (name, organization, location, role, contact info, etc.)• Assessment (requirements, expectations, influence, interest, etc.)• Classification (internal/external, supporter/resister, etc.)

• A living document• To be revisited, revised, updated throughout the life of the project

Name Position RoleContact

Information Requirements Expectations Influence Classification

® ScalingValue.com

Class Exercise – Stakeholder Register• Read the Kitchen Heaven Case Study Part 2

• Record the different stakeholders that can impact or be impacted by this store opening

® ScalingValue.com

Class Exercise – Stakeholder RegisterName Position Role

Contact Information Requirements Expectations Influence Classification

Dirk Perrier VP, Marketing

Sponsor Store opens on time within budget

Great party, high crossover from show, 19 month payback

High Internal, Supporter

Jake Peterson Facilities Oversee build-out

120 Days to performbuild-out

Facilities meet specs High Internal,Supporter

Jill Overstreet Director,Retail Products

Securemerchandise

Two weeks, a store ready to receive product

Ambiance! High Internal,Supporter

Marketing Team

Budget High turn-out Low Internal, Supporter

Leasing Agent Coordinates lease with Landlord

Agree to terms, pay the fee

Sign the lease, provide referral

Mid External, Supporter

Landlord Owns building

Lease Comply with the lease

High External, Supporter

General Contractor

Performs Build-Out

Plans, payments, etc. Facilities meet specs Mid External, Supporter

Local Chefs Customer attraction

Adequate facilities and supplies

Promotion, payment Low External, Supporter

® ScalingValue.com

Scope

® ScalingValue.com

Project Scope Management• What Are We Doing Here?

• Biggest Challenges• Scope Creep• We don’t know what we’re working on

• Keys to Success• Requirements Collection• Work Breakdown Structure

® ScalingValue.com

Project Scope Management

Initiation Planning Executing Monitoring & Controlling Closing

Collect Requirements

Define Scope

Create WBS Validate Scope

Control Scope

Note: In practice, these Processes may interact and overlap with each other.

Plan Scope Management

® ScalingValue.com

Collecting Requirements• What are the specific needs and expectations of

stakeholders for the project?• Needs versus expectations• Get specific

® ScalingValue.com

Documenting Requirements• Serve as the basis for understanding and documenting

the project scope

©2013 PMI. PMBOK® Guide – Fifth Edition

® ScalingValue.com

Defining the Scope• What does the end result look like?

• Why bother defining this?• Ensures that everyone is on the same page• Gives a point of comparison so that you know you’re on the right

track

• Watch out for scope creep(aka feature creep)• Remember the triple constraints!

® ScalingValue.com

Defining the Scope

® ScalingValue.com

Work Breakdown Structure• Structures (organizes) and defines the total scope of the

project

• A hierarchical subdivision of deliverables and project work into manageable pieces• Work packages• No larger than 80 hours, no smaller than 8 hours• A Structured, but not sequenced, list of activities/project work

• This is the heart of Project Management• When done well, the secret to successful Project Management

® ScalingValue.com

Elementary Example WBS

Buildfence

Acquire material

Constructfence

Mark fenceline & post

Install post

Install fencing& post

Paint/stain

® ScalingValue.com

Elementary Example WBS• 3.0 Build Fence

• 3.1 Acquire fence material

• 3.2 Construct fence

• 3.2.1 Mark fence line and post

• 3.2.2 Install post

• 3.2.3 Install fencing and gates

• 3.2.4 Paint/stain fence

® ScalingValue.com

Sample WBS for Game Software

©2013 PMI. PMBOK® Guide – Fifth Edition

® ScalingValue.com

Sample WBS for an Aircraft System

©2013 PMI. PMBOK® Guide – Fifth Edition

® ScalingValue.com

Work Breakdown Structure• Building a WBS helps:

• Provide a detailed illustration of project scope

• Create the basis for project cost and scheduleestimates

• Build project teams

• WBS Dictionary• Document providing details about each work package

• Assignments, scheduling, assumptions, constraints, estimates, acceptance criteria

® ScalingValue.com

Class Exercise - WBS• Revisit the Kitchen Heaven Case Study Part 2

• Using flip chart paper and post-it notes, breakdown this project into its deliverables and work packages

• Think of four to six deliverables

• Think of at least three to five activities/work packages per summary task

® ScalingValue.com

Time

® ScalingValue.com

Project Time Management• When Do Things Need to Happen?

• Biggest Challenges• Keeping everything on track• Estimating how long things take to happen

• Keys to Success• Schedule Baseline• Communal Calendar

® ScalingValue.com

Project Time Management

Initiation Planning Executing Monitoring & Controlling Closing

Define Activities

Sequence Activities

Estimate Activity Resources

Develop Schedule Control Schedule

Estimate Activity Durations

Note: these Processes are so tightly linked that they can be viewed and performed as a single process on some projects, especially those of smaller scope

Plan Schedule Management

® ScalingValue.com

Schedule Baseline• Adding Tasks to the Hard Landscape

• Humans Are Bad Estimators• Parkinson's Law: work expands so as to fill the time available

for its completion.

• Hofstadter's Law: It always takes longer than you expect, even when you take into account Hofstadter's Law.

• Calendar

® ScalingValue.com

Costs

® ScalingValue.com

Project Cost Management• Money, Money, Money

• Biggest Challenges• Not keeping track effectively• Sunk Cost Effect

• Keys to Success• Budget

® ScalingValue.com

Project Cost Management

Initiation Planning Executing Monitoring & Controlling Closing

Estimate Costs

Develop Budget Control Costs

Note: these two processes are so tightly linked that they can be viewed and done as a single Process on some projects, especially those of smaller scope

Plan Cost Management

® ScalingValue.com

Budget• A Sketch of What We Think It Might Cost

©2013 PMI. PMBOK® Guide – Fifth Edition

® ScalingValue.com

Quality

® ScalingValue.com

Project Quality Management• Meeting Quality Standards

• Biggest Challenges• Complex regulations and standards• Quality is expensive

• Keys to Success• Building a culture that cares about quality

® ScalingValue.com

Project Quality Management

Initiation Planning Executing Monitoring & Controlling Closing

PlanQuality

Management

Perform Quality

Assurance

Control Quality

Note: In practice these Processes may overlap and interact

® ScalingValue.com

The Way We Do Things• Quality Is Expensive

• But so is poor quality!

• Culture Determines Our Actions• Employees need to feel like they can speak up

• Complexity Demands Greater Attention

® ScalingValue.com

Human Resources

® ScalingValue.com

Project HR Management• Making Sure the Right Person Is on the Job

• Biggest Challenges• Other people’s plans

• Keys to Success• External awareness• Good relationships

® ScalingValue.com

Project HR Management

Initiation Planning Executing Monitoring & Controlling Closing

Acquire Team

Develop Team

Manage Team

Plan HR Management

® ScalingValue.com

Creating the Right Environment• This Often Goes Beyond the Project

• Trust Is the Only True Currency• Use it to make connections• Use it to always add value

• Maintain Relationships with…• Your team• Other teams• Management• Sponsors

® ScalingValue.com

Communications

® ScalingValue.com

Project Communications Management• Information Management

• Biggest Challenges• Using the right channels at the right frequency

• Keys to Success• Stakeholder Analysis• Project Management Information System(s)• Good Reports

® ScalingValue.com

Project Communications Management

Initiation Planning Executing Monitoring & Controlling Closing

Plan Comms.Management

Manage Comms.

ControlComms.

® ScalingValue.com

Five by Five• Stakeholder Analysis

• Project Information System(s)• Microsoft Project• Asana, Basecamp, etc.

• Good Reporting

® ScalingValue.com

Risk

® ScalingValue.com

Project Risk Management• Managing Uncertainty

• Biggest Challenges• Ostrich Effect• Optimism Bias

• Keys to Success• Risk Register

® ScalingValue.com

Project Risk Management

Initiation Planning Executing Monitoring & Controlling Closing

Plan Risk Management

Identify Risks

Perform Qual. Risk Mgmt.

Plan Risk Responses Control Risks

Perform Quant. Risk Mgmt.

® ScalingValue.com

Risk Register• Identify Negative and Positive Risks

• Plan Potential Responses

• Identify Triggers

• Follow-through when risks are realized

ID Risk Trigger Event Cause Impact Owner Response Plan

® ScalingValue.com

Procurements

® ScalingValue.com

Project Procurements Management• Buying Everything You Need

• Biggest Challenges• Asking for the right thing• Vendor Management

• Keys to Success• Good Baselines• Follow-through

® ScalingValue.com

Project Procurements Management

Initiation Planning Executing Monitoring & Controlling Closing

Plan ProcurementManagement

Conduct Procurements

Control Procurements

Close Procurements

® ScalingValue.com

Successful Procurements• Good Baselines

• Scope• Cost/Budget• Schedule

• Follow-through• Clarity• Consistency• Awareness of the dependencies

® ScalingValue.com

Where Do We Go from Here?

® ScalingValue.com

PM Certification• Widely recognized and respected

• Applicable even if you’re not in project management

CAPM PMP• 23 hours of Project

Management education OR

• 1500 hours of project management experience

• 35 hours of Project Management education AND

• 4500 hours of project management experience

® ScalingValue.com

PM in Your Career• PM skills transferable across all positions in all

organizations in all industries

• Great way to gain experience• Success is easier to define and easier to sell• Sends the message that you can get things done• Effective stepping stones to greater responsibility

• Projects are easy to start• Projects don’t have to cost a lot of money or take a lot of time• Greater potential for adding value than operations

® ScalingValue.com

The Key to Long-Term Success• What is the purpose of the project?

• What are they hiring me for?

• What do I want to be hired for?

® ScalingValue.com

The Secret Takeaways• Everything is about relationships

• If you can tolerate being (even a little) uncomfortable, you will have a distinct advantage over others

• Learn first how to break down a problem (as well as its solution), then worry about specific methodologies

• Beware biases in yourself and others

CRASH COURSE IN PROJECT MANAGEMENT

Jon Hicks, MBA, PMP®

jon@scalingvalue.com818-305-5502