effective project management: traditional, agile, extreme

98
Effective Project Management: Traditional, Agile, Extreme Presented by (facilitator name) Managing Complexity in the Face of Uncertainty Ch03: How to Scope a Project

Upload: krisalyn-rojas

Post on 30-Dec-2015

51 views

Category:

Documents


1 download

DESCRIPTION

Effective Project Management: Traditional, Agile, Extreme. Managing Complexity in the Face of Uncertainty. Presented by (facilitator name). Ch03: How to Scope a Project. Summary of Chapter 3. Ch03: How to Scope a Project. Managing client expectations Conditions of satisfaction - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: Effective Project Management: Traditional, Agile, Extreme

Effective Project Management: Traditional, Agile, Extreme

Presented by(facilitator name)

Managing Complexity in the Face of Uncertainty

Ch03: How to Scope a Project

Page 2: Effective Project Management: Traditional, Agile, Extreme

Managing client expectations Conditions of satisfaction Planning and conducting a project scoping meeting Gathering requirements Diagramming business processes Prototyping your solution Business validation Procurement Management Writing an effective Project Overview Statement (POS) Approval to Plan the Project

Summary of Chapter 3

Ch03: How to Scope a Project

Page 3: Effective Project Management: Traditional, Agile, Extreme

Conditions of Satisfaction Project Scoping Meeting Requirements Gathering Diagramming Business Processes Prototyping Validating Business Cases Procurement Management Outsourcing Project Overview Statement Approval to Plan the Project

Tools, Templates & Processes used to Scope a Project

Ch03: How to Scope a Project

Page 4: Effective Project Management: Traditional, Agile, Extreme

Managing Client Expectations

Somehow clients always seem to expect more than project managers are prepared for or capable of delivering.

This lack of communication starts at the beginning of a project and extends all the way to the end.

The project manager assumes he or she knows what

the client is asking for, and the client assumes the project manager understands what they are asking for.

Page 5: Effective Project Management: Traditional, Agile, Extreme

Client Wants vs. Client Needs Dilemma

What your client wants may not be what your client needs. Your job is to make sure that what they want is what they

need and that you will deliver what they need.

WANTS

NEEDS

Ch03: How to Scope a Project

Page 6: Effective Project Management: Traditional, Agile, Extreme

Client Wants vs. Client Needs Dilemma

The disconnect may come about because the client is swept up in a euphoria over the technology (for example, they may be enamored with what they see on the Web)

The disconnect can also come about because the client does not really know what they need.

Wants tend to be associated with a solution that the client envisions. Needs tend to be associated with the problem.

To be safe, always ask the client why they want what they want.

Page 7: Effective Project Management: Traditional, Agile, Extreme

Conducting Conditions of Satisfaction

You should begin every project with a communications tool called Conditions of Satisfaction (COS).

The COS is a structured conversation between the

client (the requestor) and the likely project manager (the provider).

The deliverable from the COS is a one-page document (with attachments) called the Project Overview Statement (POS).

Page 8: Effective Project Management: Traditional, Agile, Extreme

Conducting Conditions of Satisfaction…

The POS is a template that is used to clearly state what is to be done.

It is signed by the requestor and the provider who participated in the COS exercise.

When the POS is approved by senior management, the Scoping Phase is complete.

Page 9: Effective Project Management: Traditional, Agile, Extreme

Conducting Conditions of Satisfaction…

The process of developing the COS involves the following four parts:

1. Request. A request is made. 2. Clarification. The provider explains what he or she

heard as the request. 3. Response. The provider states what he or she is

capable of doing to satisfy the request. 4. Agreement. The requestor restates what he or she

understands the provider will provide. The conversation continues until the provider is satisfied that the requestor clearly understands what is being provided.

Page 10: Effective Project Management: Traditional, Agile, Extreme

Establishing Clarity of Purpose

The next step in the COS process is to negotiate to closure on exactly what will be done to meet the request. Obviously, some type of compromise will be negotiated.

The final agreement is documented in the POS.

As shown in Figure 3-1, this process repeats itself until there is an agreed-on request that is satisfied by an agreed-on response.

Page 11: Effective Project Management: Traditional, Agile, Extreme

Establishing Clarity of Purpose

As part of this agreement, the POS should include a statement of success criteria that specifies when and how the request will be satisfied.

The success criteria will become part of the POS.

The result is documented as the COS and serves as input to the POS.

This early step of establishing and agreeing to what will be done is very important to the project’s success.

Page 12: Effective Project Management: Traditional, Agile, Extreme

Establishing Conditions of Satisfaction

Negotiate agreement andwrite Project Overview Statement

Request Response

ClarifyRequest

Agree onResponse

Ch03: How to Scope a Project

Figure03-01

Page 13: Effective Project Management: Traditional, Agile, Extreme

Specifying Business Outcomes

it is a good idea to specify within the COS exactly what outcomes demonstrate that the COS has been met. The outcomes have been called success criteria

it is a quantitative measure (for example, profit, cost avoidance, and improved service levels) that defines success.

Page 14: Effective Project Management: Traditional, Agile, Extreme

Conducting COS Milestone Reviews

The COS is not a static agreement. It is a dynamic agreement that becomes part of the continual project monitoring process.

Page 15: Effective Project Management: Traditional, Agile, Extreme

Planning and Conducting the Project ScopingMeeting

You may have had a COS session and agreed on a high-level scope for the project but need more detail in order to write a POS.

The Project Scoping Meeting takes the COS

deliverable to the next level of detail.

In this meeting, the core project team will be present, as will the client, several key managers, staff, and end users of the project deliverables.

Page 16: Effective Project Management: Traditional, Agile, Extreme

Purpose Document requirements Project Overview Statement

Attendees Project Manager Client Group Core Team Members The Facilitator & Technographer

Planning and Conducting the Project Scoping Meeting

Ch03: How to Scope a Project

Page 17: Effective Project Management: Traditional, Agile, Extreme

The facilitator group

This group comprises two or three individuals who are experienced in conducting scoping and planning meetings.

The facilitator group will have a meeting facilitator, a requirements gathering facilitator, and a position that the author calls a technographer.

The two facilitators are often the same person. A technographer is the recording secretary for scoping

and planning meetings who has solid experience using a variety of high-tech tools. Larger projects may require two such professionals.

Page 18: Effective Project Management: Traditional, Agile, Extreme

Agenda Introductions Purpose of the Meeting (led by Facilitator) COS (conduct or review if done earlier) Description of current state (led by client representative) Description of problem or business opportunity (led by client

representative) Description of end state (led by client representative) Requirements definition and documentation (led by facilitator) Discussion of the gap between current and end state (led by

project manager) Choose best-fit project management approach to close the

gap (led by project manager) Draft and approve the POS (whole scope planning group) Adjourn

Planning and Conducting the Project Scoping Meeting

Ch03: How to Scope a Project

Page 19: Effective Project Management: Traditional, Agile, Extreme

Deliverables COS Requirements Document Best-fit project management life cycle (PMLC) POS

Planning and Conducting the Project Scoping Meeting

Ch03: How to Scope a Project

Page 20: Effective Project Management: Traditional, Agile, Extreme

Good Client Know what they want Know what it takes to deliver Work towards best solution Easy to work with Meaningfully involved

Who is Our Client?

Not So Good Client Not sure of what they want Constantly change their mind Not interested in solving

project problems Hard to satisfy Not very involved

Project manager & team (PT) must satisfy the needs of both.

Ch03: How to Scope a Project

Page 21: Effective Project Management: Traditional, Agile, Extreme

A requirement is something the product/project shoulddo/produce or a quality that it must have.

What Are Requirements?

Ch03: How to Scope a Project

Page 22: Effective Project Management: Traditional, Agile, Extreme

Different Perspectives on Requirements

How the customer explained it

How the analyst designed it

How the programmer wrote it

How the project leader understood it

How the consultant described it

How the project was documented

What operations installed

How the customer was billed

How it was supported

What the customer really needed

Ch03: How to Scope a Project

Figure03-02

Page 23: Effective Project Management: Traditional, Agile, Extreme

Functional Non-functional Global Product/project constraints

Categories of Requirements

Ch03: How to Scope a Project

Page 24: Effective Project Management: Traditional, Agile, Extreme

Functional requirements specify what the product orservice must do.

Definition: Functional Requirement

Ch03: How to Scope a Project

For example: ‘‘The service shall accept a scheduled time and place for delivery.’’

Page 25: Effective Project Management: Traditional, Agile, Extreme

Non-functional requirements demonstrate properties that the product or service should have in order to dowhat must be done.

Definition: Non-Functional Requirement

Ch03: How to Scope a Project

These requirements are the characteristics or qualities that make the product or service attractive, usable, fast, or reliable.

For example: ‘‘The product shall have a homemade appearance.’’ or: ‘‘The product shall be packaged so as tobe attractive to senior citizens.’’

Page 26: Effective Project Management: Traditional, Agile, Extreme

Global requirements describe the highest level of requirements within the system or product. They can bethought of as general requirements.

Definition: Global Requirement

Ch03: How to Scope a Project

For Example: ‘‘The system shall run on the existing network.’’ or ‘‘The system must be scalable.’’

Page 27: Effective Project Management: Traditional, Agile, Extreme

Product/project constraints are those requirements that,on the surface, resemble design constraints or projectconstraints.

Definition: Product/Project Constraints

Ch03: How to Scope a Project

Project constraints cover the areas of budget and schedule along with deadlines and so on.

For example: ‘‘The maximum system response time forany client-based transaction must not exceed 4 milliseconds.’’ or ‘‘The total cost plus five-year maintenance must not exceed $35 million.’’

Page 28: Effective Project Management: Traditional, Agile, Extreme

Facilitated Group Session Interview Observation Requirements Reuse Business Process Diagramming Prototyping Use Cases

Approaches to Requirements Gathering

Ch03: How to Scope a Project

Page 29: Effective Project Management: Traditional, Agile, Extreme

Approaches to Requirements Gathering…

Selecting the best methods to generate potential requirements for the project is the responsibility of the project manager, who must evaluate each method for costs, ease of implementation with the client, and risks.

Further, selection of a particular method should be

based on specific product and project needs, as well as proven effectiveness.

Certain methods have been proven effective for specific client groups, industries, and products.

Page 30: Effective Project Management: Traditional, Agile, Extreme

Strengths1. Excellent for cross-functional processes2. Detailed requirements are documented and verified

immediately3. Resolves issues with an impartial facilitator

Facilitated Group Session Method

Risks1. Untrained facilitators can lead to negative responses2. Time and cost of planning and executing can be high

Ch03: How to Scope a Project

Table03-01

Page 31: Effective Project Management: Traditional, Agile, Extreme

Strengths1. End user participation2. High-level description of functions and processes provided

Interview Method

Risks1. Descriptions may differ from actual detailed activities2. Without structure, stakeholders may not know what information

to provide3. Real needs ignored if analyst is prejudiced

Ch03: How to Scope a Project

Table03-01

Page 32: Effective Project Management: Traditional, Agile, Extreme

Strengths1. Specific/complete descriptions of actions provided2. Effective when routine activities are difficult to describe

Observation Method

Risks1. Documenting and videotaping may be time consuming,

expensive and have legal overtones2. Confusing/conflicting information must be clarified3. Misinterpretation of what is observed

Ch03: How to Scope a Project

Table03-01

Page 33: Effective Project Management: Traditional, Agile, Extreme

Strengths1. Requirements quickly generated/refined2. Redundant efforts reduced3. Client satisfaction enhanced by previous proof4. Quality increase5. Reinventing the wheel minimized

Requirements Reuse Method

Risks1. Significant investment to develop archives, maintenance

and library functions2. May violate intellectual rights of previous owner3. Similarity may be misunderstood

Ch03: How to Scope a Project

Table03-01

Page 34: Effective Project Management: Traditional, Agile, Extreme

Strengths1. Excellent for cross-functional processes2. Visual communications3. Verification of “what is/what is not”

Business Process Diagramming

Risks1. Implementation of improvement is dependent on an

organization being open to changes2. Good facilitation, data gathering and interpretation

required3. Time-consuming

Ch03: How to Scope a Project

Table03-01

Page 35: Effective Project Management: Traditional, Agile, Extreme

Strengths1. Innovative ideas can be generated2. Users clarify what they want 3. Users identify requirements that may be missed4. Client–focused5. Early proof of concept6. Stimulates thought process

Prototyping

Risks1. Client may want to implement prototype2. Difficult to know when to stop3. Specialized skills required4. Absence of documentation

Ch03: How to Scope a Project

Table03-01

Page 36: Effective Project Management: Traditional, Agile, Extreme

Strengths1. State of system described before entering the system2. Completed scenarios used to describe state of system3. Normal flow of event/exceptions revealed4. Improved client satisfaction and design.

Use Case Scenarios

Risks1. Newness has resulted in some inconsistencies2. Information may still be missing from scenario

description3. Long interaction required4. Training expensive

Ch03: How to Scope a Project

Table03-01

Page 37: Effective Project Management: Traditional, Agile, Extreme

Building the Requirements Breakdown Structure

Ch03: How to Scope a Project

Figure03-03

Project goaland solution

Requirement 1

Function1.1

Feature1.2.1.1

Featuren.3.1

Sub-function1.2.3

Requirement n

Function1.2

Function1.3

Functionn.1

Functionn.2

Functionn.3

Sub-function1.2.2

Sub-function1.2.1

Featuren.3.2

Featuren.3.3

Featuren.3.4

Feature1.2.1.2

Feature1.2.1.3

Feature1.2.1.4

Page 38: Effective Project Management: Traditional, Agile, Extreme

Building the Requirements Breakdown Structure

The RBS is a hierarchical description of what the solution has to do in order to acceptably meet client needs.

Page 39: Effective Project Management: Traditional, Agile, Extreme

Project goaland solution

Requirement 1

Function1.1

Feature1.2.1.1

Featuren.3.1

Sub-function1.2.3

Requirement n

Function1.2

Function1.3

Functionn.1

Functionn.2

Functionn.3

Sub-function1.2.2

Sub-function1.2.1

Featuren.3.2

Featuren.3.3

Featuren.3.4

Feature1.2.1.2

Feature1.2.1.3

Feature1.2.1.4

RBS – The Reality

Ch03: How to Scope a Project

FunctionalRequireme

nt n

Page 40: Effective Project Management: Traditional, Agile, Extreme

The RBS is intuitive and most meaningful to the client

The RBS is a deliverables based approach The RBS is consistent with the PMI PMBOK The RBS remains client facing as long as possible

into the planning exercise

Characteristics of the RBS

Ch03: How to Scope a Project

Page 41: Effective Project Management: Traditional, Agile, Extreme

Does not require a trained facilitator Does not require learning one of the contemporary approaches

to requirements gathering Presents an intuitive approach to gathering requirements Allows the client to work with the project team in an

environment familiar to them, i.e., to stay in their own comfort zone

Paints a clear picture of the degree to which the solution is clearly defined

Provides the input needed to choose the best fit PMLC Model

Advantages of using the RBS

Ch03: How to Scope a Project

Page 42: Effective Project Management: Traditional, Agile, Extreme

A business process is a collection of activities that takeone or more inputs from one or more different sourcesand produces a change of state that delivers businessvalue.

What is a Business Process?

Changeof state

Business Process

Input B

Input C

Input A

Ch03: How to Scope a Project

Figure03-04

Page 43: Effective Project Management: Traditional, Agile, Extreme

Creating a Business Process Diagram

Ch03: How to Scope a Project

Figure03-05

Page 44: Effective Project Management: Traditional, Agile, Extreme

Creating a Business Process Diagram….

Operation— Denotes that a change has taken place. The input is somehow changed as a result of having gone through this process.

Movement —Denotes the movement of output from one process step to become the input to the next process step.

Decision —Denotes that a question needs to be answered. There are two flow paths that emanate from a decision box: Yes or True and No or False. You follow one of these paths based on the decision.

Inspection— Someone other than the person producing the output must inspect it for quality, conformance, or some other tangible characteristic.

Page 45: Effective Project Management: Traditional, Agile, Extreme

Creating a Business Process Diagram….

Document—Denotes a paper document.

Delay —Denotes a wait state in a process. It’s usually associated with something joining a queue and waiting for the operator of the next process step to become available.

Storage— Indicates that an item has been placed in storage and must wait for a release before moving to the next process step. This usually represents wasted time that must be removed from a process.

Page 46: Effective Project Management: Traditional, Agile, Extreme

Creating a Business Process Diagram….

Annotation—Provides added detail about some process, which is needed for clarification. It might also include the position title of the person responsible for the process.

Direction of Flow — Denotes the order of process steps.

Transmission —The interrupted arrow indicates when information is to be transmitted from one physical or virtual location to another.

Page 47: Effective Project Management: Traditional, Agile, Extreme

Creating a Business Process Diagram….

Connector— Connects the flow between two separate locations; often used as an off-page connector.

Boundaries— Denotes the initiating and closing processes of a flow diagram. Usually the words START or BEGIN are associated with the initiating process, and STOP or END with the closing process.

Page 48: Effective Project Management: Traditional, Agile, Extreme

Business Process Diagram Formats

Three common formats are used: The top-down and left-to-right format: It is commonly used

in program and system flow charts.

‘‘Swim-lane’’ format: It identifies the actors who participate in the business

Context Diagrams: One way to describe your process at a very high level

Page 49: Effective Project Management: Traditional, Agile, Extreme

The Top-Down Left to Right Format

Ch03: How to Scope a Project

Figure03-06

Page 50: Effective Project Management: Traditional, Agile, Extreme

The Swim Lane Format

Ch03: How to Scope a Project

Figure03-07

Page 51: Effective Project Management: Traditional, Agile, Extreme

Context Diagramming Process

Ch03: How to Scope a Project

Figure03-08

Page 52: Effective Project Management: Traditional, Agile, Extreme

Context Diagrams

Describes a rough process or a set of processes. It generally has only the following few components:

A stick figure representing the external entity that is triggering the process

A large circle representing the organization responding to the request

A text block showing each organization or process acting to fulfill the request

Arrows showing the rough flow between text blocks

Page 53: Effective Project Management: Traditional, Agile, Extreme

Prototyping Your Solution

Many clients cannot relate to a narrative description of a system but they can relate to a visual representation of that system.

Its original purpose was to help clients define what they wanted.

By showing them a mock-up of a solution, they could comment on it and give the developers more insight into what constitutes an acceptable solution.

Page 54: Effective Project Management: Traditional, Agile, Extreme

Use Cases

Figure 3-9 depicts the position of use cases in the overall project scoping.

Page 55: Effective Project Management: Traditional, Agile, Extreme

Use Cases…

Project scoping can be part of the Scoping Process Group or Planning Process Group.

In Figure 3-9, project scoping is between the Scoping Process Group, which has the POS as output, and the Planning Process Group.

Requirements gathering consists of several different approaches of which use cases is but one.

After the use cases have been defined and documented, a single requirements document is assembled, and the project can move to the approval stage or, if the approval stage has already been reached, to the Planning Phase.

Page 56: Effective Project Management: Traditional, Agile, Extreme

Use Case Diagrams

A use case diagram is a simple way to describe how an individual interacts with a business process.

It consists of one of more stick figures (the actors), ovals (the process steps), and connecting arrows (the interactions)

An actor initiates the use case by interacting directly with the system. The system gathers information from the actor, processes it, and returns a result to the actor.

Page 57: Effective Project Management: Traditional, Agile, Extreme

Use Case Flow of Events

This document reads like the script in a play.

It is initiated with an action by the primary actor, the system responds, the actor takes another action, and this back and forth exchange continues until the use case ends.

Page 58: Effective Project Management: Traditional, Agile, Extreme

Validating the Business Case

A very important question will be, ‘‘Does the resulting business value exceed the total cost of the deliverables?’’

You can expect to provide any number of financial analyses such as cost/benefit, Return on Investment (ROI), breakeven, and cash flow analyses, among others.

Some of these might accompany the POS.

Page 59: Effective Project Management: Traditional, Agile, Extreme

Use Case Diagram

Page 60: Effective Project Management: Traditional, Agile, Extreme

You do not have the necessary skills and competencies on your staff Buying the solution is less costly and more effective than building the solution There is a commercial product available that will meet your needs It is more cost effective to have a specialist provide the service It is not part of your core business activity You would like to develop the skills by first using a contractor

Outsourcing to Vendors and Contractors

Ch03: How to Scope a Project

Page 61: Effective Project Management: Traditional, Agile, Extreme

Procurement Management – The Life Cycle

VendorSolicitation

VendorSelection

Ch02: Project Life Cycle Processes

Page 62: Effective Project Management: Traditional, Agile, Extreme

Procurement Management Life Cycle

VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Publish Request for Information (RFI) Advertise Rent a targeted list Include previous vendors Attend a trade show where potential vendors are likely to have a booth Preparing and Distributing a Request for Proposal Manage RFP responses and questions

Respond online Answer questions individually Hold a bidders conference

Ch02: Project Life Cycle Processes

Page 63: Effective Project Management: Traditional, Agile, Extreme

Preparing and Distributing a Request for Proposal

You need to state the time conditions for response, which means that you state how many days you will give people to respond, as

well as how long you will need to review the responses

before making a choice.

Page 64: Effective Project Management: Traditional, Agile, Extreme

RFP

RFP should contain the following: Introduction Business profile Problem or opportunity POS (optional) RBS (optional) Vendor responsibility Contract administration Instructions to vendors Vendor point of contact Time and cost estimates Pricing Evaluation criteria

Page 65: Effective Project Management: Traditional, Agile, Extreme

Procurement Management Life Cycle

VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Establish Vendor Evaluation Criteria Evaluate responses to RFP

Reduce list of companiesConduct onsite presentations

Ch02: Project Life Cycle Processes

Vendor evaluation consists of creating a rule by which all RFP responses are evaluated on the same scale.

Page 66: Effective Project Management: Traditional, Agile, Extreme

Establish Vendor Evaluation Criteria

an evaluation team is involved

criteria that ‘‘might’’ be necessary should be eliminated.

Criteria might be classified as ‘‘must have,’’ ‘‘should have,’’ or ‘‘it would be nice to have,’’

There are several quantitative models for evaluating and ranking vendors such as: Forced Ranking, and Paired Comparisons

Page 67: Effective Project Management: Traditional, Agile, Extreme

Establish Vendor Evaluation Criteria

There are several qualitative factors that might be used. They include the following:

Corporate experience with similar work Financial stability Technical approach Personnel experience, skills, and competencies Risk management processes Location Applicable tools, templates, and processes References for similar work

Page 68: Effective Project Management: Traditional, Agile, Extreme

Evaluation Criteria – Forced Ranking

Ch03: How to Scope a Project

Consultant

Vendor

A B C D RankSum

ForcedRank

1 2 3 2 4 11 3

2 4 1 1 2 8 1

3 6 2 5 5 18 5

4 1 5 3 1 10 2

5 3 4 4 3 14 4

6 5 6 6 6 23 6

Table03-02

Page 69: Effective Project Management: Traditional, Agile, Extreme

Evaluation Criteria – Paired Comparisons

Ch03: How to Scope a Project

1 2 3 4 5 6 SUM RANK

1 X 1 1 0 1 1 4 2

2 0 X 1 0 1 1 3 3

3 0 0 X 0 0 1 1 5

4 1 1 1 X 1 1 5 1

5 0 0 1 0 X 1 2 4

6 0 0 0 0 0 X 0 6

Table03-03

Page 70: Effective Project Management: Traditional, Agile, Extreme

Procurement Management Life Cycle

VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Select the final vendor(s)

Ch02: Project Life Cycle Processes

Page 71: Effective Project Management: Traditional, Agile, Extreme

Procurement Management Life Cycle

VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Negotiate the final contract No award Single award Multiple awards

Contract Managementdeliverable datesWBSRegular status meetings

Types of Contracts Fixed Price Time and Materials Retainer Cost Plus

Discussion points for negotiating final contract Final negotiation of contract

Ch02: Project Life Cycle Processes

Page 72: Effective Project Management: Traditional, Agile, Extreme

Discussion Points for Negotiating the Final Contract

Work schedule Payment schedule Fees Personnel assigned to the contract Rights in data Other terms and conditions Ownership Warranties Cancellation terms

Page 73: Effective Project Management: Traditional, Agile, Extreme

Final Contract Negotiation

Statement of work for the vendor Terms and conditions List of deliverables, schedule, and budget Defined acceptance process, including acceptance criteria Identification of the project and supplier representatives

responsible and authorized to agree to changes to the vendor agreement

Description of the process for handling requirements change requests from either side

The processes, procedures, guidelines, methods, templates, and so on that will be followed

Critical dependencies between the project and the vendor

Page 74: Effective Project Management: Traditional, Agile, Extreme

Final Contract Negotiation…

Descriptions of the form, frequency, and depth of project oversight that the vendor can expect from the project, including the evaluation criteria to be used in monitoring the vendor’s performance

Clear definition of the vendor’s responsibilities for ongoing maintenance and support of the acquired products

Identification of the warranty, ownership, and usage rights for the acquired products

Page 75: Effective Project Management: Traditional, Agile, Extreme

Procurement Management Life Cycle

VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Expectation setting For whom does the vendor work? What is expected of the vendor? What tools and facilities are available to the vendor? What training is available to the vendor? What must the vendor deliver? When must it be produced? Who will receive the deliverables? How will the deliverables be evaluated?

Ch02: Project Life Cycle Processes

Page 76: Effective Project Management: Traditional, Agile, Extreme

Vendor Management

You should make the vendor feel like an equal partner in the project.

That means including them in every team activity

Communication needs to be established early among all relevant stakeholders

Conducting meetings and having face-to-face discussions are the easiest and best ways to set clear expectations and gain a mutual understanding of the requirements and expected performance.

Page 77: Effective Project Management: Traditional, Agile, Extreme

Procurement Management Life Cycle

VendorSolicitation

VendorEvaluation

VendorSelection

VendorManagement

VendorContracting

Monitor Progress and Performance Monitor Requirements Change Requests Monitoring the Performance of Standard Project Activities

Labor hours Cost (Earned Value) Schedule (Earned Value) Frequency of change requests over time Incidence of bugs Risks Issue resolution Staffing levels and changes by position

Transition form Vendor to Client

Ch02: Project Life Cycle Processes

Page 78: Effective Project Management: Traditional, Agile, Extreme

Monitoring the Performance of Standard Project Activities

key metrics need to be provided by the vendor to track actual versus planned contract performance: Labor hours Cost Schedule

Other performance metrics that should be tracked by both the vendor and the project manager include the following: Frequency of change requests over time Incidence of bugs Risks Issues resolution Staffing levels and changes by position type

Page 79: Effective Project Management: Traditional, Agile, Extreme

POS

The POS is a short document (ideally one page) that concisely states what is to be done in the project, why it is to be done, and what business value it will provide to the enterprise when completed.

Page 80: Effective Project Management: Traditional, Agile, Extreme

A general statement of the project A reference for the planning team A decision aid for the project To get management approval to plan the project

Purpose of the Project Overview Statement

POSs

A one-page description that is:

Ch03: How to Scope a Project

Page 81: Effective Project Management: Traditional, Agile, Extreme

POS

The POS can serve other purposes as well Inherited Project

Briefing Tool

Page 82: Effective Project Management: Traditional, Agile, Extreme

Inherited Project

Sometimes you inherit a project. In these instances, the project has been defined and

scoped. A budget, staff resources, and a completion date have also been determined.

In this scenario, do you write a POS? Yes! Why? Two reasons:

to become familiar with and understand the project as well as the client’s and management’s expectations.

the POS will become the referent for the planning team.

Page 83: Effective Project Management: Traditional, Agile, Extreme

Briefing Tool

To give your team briefing information on the project.

Page 84: Effective Project Management: Traditional, Agile, Extreme

Contents of the Project Overview Statement

Ch03: How to Scope a Project

Page 85: Effective Project Management: Traditional, Agile, Extreme

PROJECT OVERVIEWSTATEMENT

Project Name Project No. Project Manager

Problem/Opportunity

Goal

Objectives

Success Criteria

Assumptions, Risks, Obstacles

Prepared By Date Approved By Date

Office Supply Cost Reduction PAUL BEARER

Our cost reduction task force reports that office supply expenses have exceeded budget by anaverage of 4% for each of the last three fiscal years. In addition an across the board budget cut of2% has been announced and there is an inflation rate of 3% estimated for the year.

To implement a cost containment program that will result in office supply expenses being withinbudget by the end of the next fiscal year.

1. Establish a departmental office supply budgeting and control system.2. Implement a central stores for office and copying supplies.3. Standardize the types and brands of office supplies used by the company.4. Increase employee awareness of copying practices that can reduce the cost of meeting their copying needs.

1. The total project cost is less than 4% of the current year office supply budget.2. At least 98% of office supply requests are filled on demand.3. At least 90% of the departments have office supply expenses within budget.4. No department office supply expense exceeds budget by more than 4%.

1. Central stores can be operated at or below the breakeven point.2. Users will be sensitive to and supportive of the cost containment initiatives.3. Equitable office supply budgets can be established.4. Management will be supportive and consistent.5. The existing inventory control system can support the central stores operation.

Olive Branch Del E. Lama9/2/04 9/3/04

Example POS

Ch03: How to Scope a Project

Figure03-11

Page 86: Effective Project Management: Traditional, Agile, Extreme

POS Problem/Opportunity

A problem needing resolution or an untapped business opportunity.

A statement of fact that everyone would agree to. It stands on its own.

This is the foundation on which the proposed project will be based.

Ch03: How to Scope a Project

Page 87: Effective Project Management: Traditional, Agile, Extreme

POS Problem/Opportunity…

Examples of situations that will lead to a statement of the problem or opportunity:

Known Problem or Opportunity Client Request Corporate Initiative. Mandated Requirements

Page 88: Effective Project Management: Traditional, Agile, Extreme

POS Project Goal

A one or two sentence statement of how you intend to address the statedproblem/opportunity.

A scoping statement that bounds the project you are proposing.

Ch03: How to Scope a Project

Page 89: Effective Project Management: Traditional, Agile, Extreme

POS Project Goal

A project has one goal it defines the final deliverable or outcome of the project in

clear terms so that everyone understands what is to be accomplished.

The goal statement must not contain any language or terminology that might not be understandable to anyone having occasion to read it.

the goal statement is short and to the point. you do not control the start date and therefore you cannot

possibly know the end date. Your objective is to postpone giving any fixed duration or completion

date until you have completed the project plan.

Page 90: Effective Project Management: Traditional, Agile, Extreme

POS Project Goal…

S.M.A.R.T. characteristics provide the following criteria for a goal statement:1

Specific—Be specific in targeting an objective. Measurable — Establish measurable indicators of

progress. Assignable— Make the object assignable to one

person for completion. Realistic —State what can realistically be done with

available resources. Time-related — State when the objective can be

achieved—that is, the duration.

Page 91: Effective Project Management: Traditional, Agile, Extreme

POS Project Objectives

5 or 6 brief statements that further bound your project goal statement.

From these statements it is clear what is in and not in the proposed project.

These statements might identify major project deliverables.

These statements form a necessary and sufficient set of objectives.

Ch03: How to Scope a Project

Page 92: Effective Project Management: Traditional, Agile, Extreme

An objective statement should contain the following four parts:

An outcome —A statement of what is to be accomplished.

A time frame —A preliminary estimate of duration. A measure — Metrics that will measure success. An action —How the objective will be met.

Page 93: Effective Project Management: Traditional, Agile, Extreme

POS Project Success Criteria

IRACIS

IR Increase RevenueAC Avoid CostsIS Improve Service

Use quantitative metrics only!How much and by when?

Ch03: How to Scope a Project

Example: This reengineering project is expected to reduce order entry to order fulfillment cycle time by 6 percent.

Page 94: Effective Project Management: Traditional, Agile, Extreme

Technological New to the company Obsolescence

Environmental Management change Staff turnover

Interpersonal Working relationships

Cultural Fit to the company

Causal Relationships Will the solution solve the problem

POS Assumptions, Risks and Obstacles

Ch03: How to Scope a Project

Page 95: Effective Project Management: Traditional, Agile, Extreme

Risk Analysis Financial Analyses

Feasibility studies Cost/benefit analysis Breakeven analysis Return on investment

POS Attachments

Ch03: How to Scope a Project

Page 96: Effective Project Management: Traditional, Agile, Extreme

Expected Review Questions from Management How important is the problem or opportunity to the organization? How is the project related to our CSFs? Does the goal statement related directly to the problem or opportunity? Are the objectives clear representations of the goal statement? Is there sufficient business value as measured by the success criteria to warrant further expenditures on this

project? Is the relationship between the project objectives and the success criteria clearly established? Are the risks too high and the business value too low? Can senior management mitigate the identified risks?

Gaining Approval to Plan the Project

Ch03: How to Scope a Project

Page 97: Effective Project Management: Traditional, Agile, Extreme

Core project team (managers, the professionals, and perhaps the client) Project team (review the POS before submitting it to upper management.) Project manager Resource managers Function/process managers Client Senior management

Participants in the Approval Process

Ch03: How to Scope a Project

Page 98: Effective Project Management: Traditional, Agile, Extreme

Project Approval Status

Senior management may not be ready or willing to give their approval to plan the project: They may reject the proposal out of hand. (based on a

comparison of expected benefits versus total cost coupled with a time frame as to when the benefits will be realized.

They may request a recalibration of the goal and scope of the project followed by a resubmission

They might decide that a later resubmission is in order. (they are not ready to commit to the project at this time)

The approval may be associated with a consideration to add the project to the organization’s project portfolio.