mba-program: project controlling - andrea raab · process which also includes staffing, training,...

MBA-Program: Project Controlling

Project Controlling in International Consulting Projects

Fachhochschule Ingolstadt: Andrea E. Raab

1

Prof. Dr. Andrea E. RaabFachhochschule Ingolstadt

Overview

EngagementManagement Process

Client QualityManagementAssurance

BusinessIntegration

Methodology

SuccessfulPersonnel

Management

The overall engagement process is impacted by the firm’s formaland informal approaches to manage personnel, quality, andbusiness integration.

2


Business Integration is the alignment of an enterprise’stechnology, people and processes with its strategy.

Overview

3


There are three major stages to the engagement managementprocess.

Project Execution

ProjectWrap Up

Project Initiation

Engagement Management Process: Overview

Client QualityManagementAssurance

BusinessIntegration

Methodology

SuccessfulPersonnel

Management

Engagement Management Process

4


During Project Initiation, the management team will finaliseproject plans, review/set client/team member expectations andcomplete all necessary paperwork to set up the project.

* It is essential that all consultants and managers develop effective Structured Problem Solvingskills, one of the critical consulting skills

Engagement Management Process: Project Initiation

Develop the project approach/plan Define the Problem/Perform Issue Analysis (Structured Problem Solving)* Develop a workplan Prepare the proposal/arrangement letter and gain agreement from client to proceed; utilise

the Proposal/arrangement letter checklists as guides; attach the standard general provisionsto all arrangement letters

Complete the required quality management forms and develop a plan to manage project risk

Mobilise Client/Consulting Team Use the pre-engagement memo to help define individual roles and responsibilities and set

team expectations; this memo is one of the key elements of the career developmentprocess which also includes staffing, training, mentoring, project evaluations and annualreviews

Use an engagement orientation binder to provide client/project information and ensure asmooth transition onto the project

Develop and deliver team orientation/training Conduct interviews with key client personnel to set/confirm expectations Begin collection of background research in the Knowledge Xchange

Complete Project Set-up Administration Set up project framework / Establish a budget Set up charge codes

Project Initiation

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Section

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In the Project Execution Stage, team members will gatherinformation, perform analysis and documentfindings/recommendations while managing team expectationsand overseeing project administration.

Solve the Problem by Using Key Consulting Techniques• Interviewing• Small Group Facilitation• Creativity• Analysis

Communicate the Finding• Develop well structured communications• Use the topic sentence approach• Ensure documents are in the standard format• Deliver results in formal oral presentations

Oversee Project Administration• Monitor/update budget• Measure project success

Manage Team and Client Satisfaction/Expectations Throughout the Process• Complete/review Client Quality Management Assessment (CQMA) forms• Conduct CQMA client satisfaction feedback interviews• Complete/review CQMA forms with quality partner• Revisit the CQMA risk assessment

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Engagement Management Process: Project Execution

Project Execution

Project Execution

ProjectWrap Up

Project Initiation

Section

6


At the conclusion of the project – Project Wrap Up – the team willcomplete evaluations, archive project documents and resolveproject administration issues.

Evaluate effectiveness of the the project and team members• Complete performance evaluations/appraisals for each team member• Complete upward evaluations for supervisors• Complete client value recap• Utilise the client satisfaction survey during/after a project to assess Consulting

performance and potential for follow-up• Verify completion of tasks through discussions with key clients

Distribute documents and information to the research group to support the knowledgeexchange (project documentation)

Resolve final project administration• Distribute and collect final billings• Close out charge codes

Project Wrap Up Section

Engagement Management Process: Project Wrap-Up

Project Execution

ProjectWrap Up

Project Initiation

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ISSUE-BASED PROBLEM-SOLVING©

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Issue Based Problem Solving

Definition:

Purpose:

People Involved:

Timing/Stage ofProcess:

Issue based problem solving is an approach to client problemsolving that emphasises rigorous problem decomposition andwork planning

To help clarify the main problem facing the client and decompose theproblem in order to identify the issues. Once the issues areidentified, the issues analysis approach will enable the team toidentify what analysis is required and develop an efficient andthorough approach to the project

The entire team is involved. Often the Partner/Manager may create afirst draft and then the entire project team (or subteams) participatesin creating the detail

During the proposal process, the first problem definition and issueanalysis is completed to help determine the analysis required andthe appropriate approach. Throughout the course of the project theissues analysis is often revisited to ensure that all of the issuesidentified are being addressed and to determine if there are anyadditional issues that the team had missed which need to beexplored

Description

9


Issue-Based Problem Solving

Structurethe ideas

Developthe

researchplan

Analysefindings

Generateideas

Wherethe ClientWants to

Be

Definethe

Problem

Communi-cate theAnswer

Wherethe

Client Is

Solvethe Problem

Introduction

This approach to solving client problems emphasises attention tothe issues involved.

10


Defining the Problem

Between facts and assumptions

Between objectives and actions toachieve those objectives

Because the problem is not always clearat the outset of a project, this approachcalls for completing a problem definitionworksheet to help the team be sure it isaddressing the right problem. Especiallywhen the client has identified the problem, the teamshould review the problem definition to ensure thatit specifies the real problem, not just asymptom of it, or a problem that is real but lessurgent to address than some other problem mightbe

To achieve this certainty, the team would do well toinvolve the client in preparing the problem definitionworksheet. At the very least, the team shouldreview the completed worksheet with the clientbefore beginning any analyses

Every project can and should be reducedto one key question -- one fundamentalissue that the team will address. Andevery team member should keep the key questionclearly in mind to guide all research and analysis

In completing the worksheet and defining the focalproblem, the team should be careful to makeseveral key distinctions:

Define Problem

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Client:

Key Question:

CONTEXT

Key Facts:

Need for Change:

Desired Outcomes:

BUYERS

Sponsors:

Key Decision Makers:

Criteria for Quality:

SCOPE

In Scope: Out of Scope:

• Relevant information about the client’s situation

• Why the client needs to change now, implications, burning platforms, etc.

• What the client would like to have at the end of the project

• The business question to answer

• Who brought the Consulting Company in

• Who will resolve critical issues

• Deliverables, target dates, and issues

• The client’s criteria for a qualityproduct or result

• Issues, effort beyond projectboundaries

Problem Definition Worksheet

Define Problem

The first step is to define the problem that will focus theengagement and set boundaries for the problem-solving effort.

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Treating the physician as the customer

Maintaining specialised resources to ensure clinical quality

Centralising resources to achieve economies of scale

Defining the Problem

The client has asked the Consulting Company to evaluate itsopportunities to improve profitability. The worksheet showsclear symptoms of the need to change and senior executivecommitment to the effort

The hypothetical client reflected in this completed worksheet willrecur throughout this guide

As noted on the worksheet, the client is a traditional hospital. Itsoperating strategy to date has emphasised:

Define Problem

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Problem Definition Worksheet

Key Question:

CONTEXT

Key Facts:

Need forChange:

DesiredOutcomes:

BUYERS

Sponsors:

Key Decision Makers:

Criteria for Quality:

SCOPE

In Scope: Out of Scope:

• Traditional hospital operating in a suburb of a major city• Despite recent operational improvements, costs continue to be high relative

to competitors• Provides a broad range of services to the community• Has focused on providing high-quality, leading-edge services

• Increasing patient/family dissatisfaction, which is suspected to becontributing to revenue decline over the past year

• Several defections of key physicians to competitive institutions andthe hospital fears more to come

• A program that will enable the hospital to achieve the following goalswithin one year:

– Patient/family expressing preference– Physicians rate clinical quality as high– Competitive cost per procedure

• How can the hospital improve its profitability and enhance its competitiveness?

CEO/CFO

• Hospital Executive Committee

• Actively engage hospital staff in the process so that theyfeel they have contributed to the change

• Frequent informal updates with the key decision-makers• No disruptions to patient care

• Employee layoffs• Change in service offerings• Revenue enhancements• Operational improvements• Investment of $10 million or less

Client: Traditional Hospital

Define Problem

Here is a worksheet completed for a hypothetical client.

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Generating Ideas

In approaching a problem, team members oftentend to think about its probable causes andpotential solutions in terms of similarproblems encountered on other projects.While this approach can speed up the problem-solving process, it can also discouragecreative thinking about the problem

This is a good time for a team to pause andengage in some brainstorming to encourage out-of-the-box thinking about the problem. Hereare a few guidelines to help make brainstormingeffective:

Encourage creative, even absurd ideas. Generating creative ideas from obvious ideas is almost impossible. To move to the other end of the spectrum, teams often need to warm up with a short brainstorming exercise on an unrelated< subject, like name 20 birds

Aim for quantity, not quality. The goal is to generate as many ideas as possible, quickly. Often setting a goal –- say, 20 ideas in 15 minutes –- can help. So can clustering ideas help the team to see new possibilities

Creativity and previous experience are notincompatible. Some of the most creativethinking done by teams involves applyingexperience in new situations or new ways.People too frequently assume that lack ofdirect experience with a particular problem,client, or industry means that they havenothing to contribute to the team’s thinking.Brainstorming can prove them wrong

Generate Ideas

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Value ofIdeas

Creative

AbsurdObvious

Difficulty of Implementation Source: Business Not As Usual

Finding creative solutions to the client’s problem often begins withbrainstorming seemingly absurd ideas prompted by the keyquestion.

Generate Ideas

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Decomposes the overall problem intoissues that the team can address byconducting specific analyses. Thetypical problem definition is too broad formatching with analyses. How, for example,do you analyse, “how to improveprofitability”?

Focuses the team’s research andanalysis so no time is wasted ontangential or irrelevant issues and noessential issue is ignored. Thorough issuemapping captures all the issues and sub-issues a problem encompasses

Structuring Ideas

This is a critical, and usually time-consuming,step of issue-based problem-solving. But thetime is well spent because the issue mappingdone here accomplishes two important goals:

Problem decomposition shouldcontinue until the questions arespecific enough to match withanalyses. Further decomposition is not agood use of team time

Together, the answers to each group ofquestions (such as how to optimise price? andhow to improve mix?) answer the question totheir left on the tree (how to increase revenuecapture?). This process of combining theanswers in each group to answer the question totheir left (ways to increase revenue capture andways to increase volume add up to ways toincrease revenue) continues until the answeraddresses the overall problem

Structure Ideas

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Problem/Issue Sub-sub-issuesSub-issues

ReduceOther Costs?

ReduceWages?

IncreaseVolume?

IncreaseRevenue Capture?

ImproveUtilization?

Reduce Supply Costs?

Reduce Labor Costs?

OptimizePrice?

ImproveMix?

StimulateDemand?

IncreaseShare?

How toImprove Hospital’s

Profitability?

Reduce Costs?

Increase Revenues?

Structure Ideas

Having identified many ideas, the team maps them on an issue treeto ensure thoroughness and focused analysis.

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The sample issue mapping on thepreceding page is data-driven; itdecomposes the key question articulatedon the problem definition worksheet. Likemost data-driven issue trees, this onedecomposes the problem into questionsthat can be answered yes or no

Issue mapping can also be hypothesis-driven, focused on potential ways to solvethe client problem. The team might, forexample, hypothesise that the hospitalcan improve profitability by targeting acertain high-potential customer segmentand by strengthening inventorymanagement. Research and analysiswould then focus on testing thishypothesis to confirm or refute it

Structuring Ideas

Since solving the problem is the ultimate goal of theproject, hypothesis-driven analysis can speed up theeffort. But hypothesis mapping can be dangerous. Itrequires considerable familiarity with the problem,the client, and the industry, usually acquired throughprevious engagement experience. Without thatbackground, hypothesis-driven mapping rapidlydegenerates into jumping to conclusions

Whether driven by data or hypotheses,every issue tree must adhere to theprinciples of logical grouping –- all thequestions or statements in a cluster must be thesame kind of thing. If the first is a reason, all mustbe reasons. If the first is an action, all must beactions

Structure Ideas

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Reason/Action

Data-Driven

Starts with the problem and decomposes it to arriveat a solution

Hypothesis-Driven

Starts with the potential solutionand develops a rationale tovalidate or disprove it

Cause

Cause

Cause

Problem/Issue

Problem/Cause makes no initialassumption about the most likelyoutcome or most important questionto answer

Potential Solution

Reason/Action

Reason/ Action

• Solution/Action assumes ananswer and creates a structure totest it

• Ideas in a group are all of thesame kind (reasons or actions)

Structure Ideas

Issue trees may be rooted in data or hypotheses.

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1. Explore alternative ways to decompose the problem

Every problem can be mapped in multiple ways

The most commonly used ways are actions and causes

Other ways to consider include components (e.g., steps in process), key success factors,benefits, and risks.

2. Test that every level is MECE

MECE = mutually exclusive, collectively exhaustive

Logic is complete at every level (no gaps, no overlaps)

3. Recognise that the process is often iterative

Initial mapping is often issue-based

Basic analysis narrows the issue and builds understanding of the problem needed to generatehypotheses for new mapping

Oceans

Atlantic

Caribbean

Indian

Arctic

?

Here are three keys to getting the greatest value from the time andeffort invested in issue mapping.

Structure Ideas

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Analysis is firmly linked to the major issuesidentified by the issue mapping

The team understands the data needed toaddress those issues and conduct the necessaryanalyses (which often require specialisedexpertise, such as financial analysis ormodelling skills)

Planning the Research

At this point in issue-based problem-solving,formulation of hypotheses is essential becausehypotheses will determine what analyses the teammust perform and thus how extensive the work effortmust be. Hypotheses should be firmly and clearlyrooted in an issue on the issue tree. One issue maygenerate multiple hypotheses

The issue analysis worksheet forms a bridge fromthe issue mapping to the workplan. This elementof the research plan helps to ensure that:

Plan Research

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Issue Analysis Worksheet

Issue:

•The clientquestionto answer

Sub-issue:•One branch of

issue tree

Team’s “best guess”on how to solveproblem

Issue may havemultiple hypotheses

Hypothesis Analysis Required Data Required/SourcesIssue/Sub-issue

Tools/techniquesteam will use toprove or disproveeach hypothesis

Likely location ormeans of obtainingdata for analysis

Primary andsecondary sources

The research plan builds on the issue tree, offering hypothesesspecifying the approach to studying each issue.

Plan Research

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Hypothesis Analysis Required Data Required/SourcesIssue/Subissue

The completed worksheet suggests how much each issue will require.

How to improve thehospital’s profitability By increasing

revenue

The hospital can increaserevenue and enhanceprofitability by focusing ona few core service areas(such as cardiac care,diabetes, cancer) andbuilding well-recognisedprograms in these areas

Assessment (cost/benefit analysis) ofpotential service offerings

Current and potential demand/revenuefor different services– Size of target population– % using/would consider using our

services– Buyer value (needs) assessment– Competitive assessment; our ability

to meet customer needs versus ourcompetitors––

Cost of deliverings different levels ofcapability for each of the possibleservice areas

––

–

Area demographics/census data

Number of people Age Income

–––

Disease prevalence statistics/hospital, insurance, governmentrecords

–

–

–

Buyer needs and behaviour/surveys and focus groups

Plan Research

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The workplan breaks the required analyses into discrete,manageable pieces of work. It maps key project activitiesand shows their timing and responsibilities for completingthem. Its completion is essential to project budgeting.

Planning the Research

Plan Research

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Identifies who will do the work

Determines how long each stepwill take

Defines the effort by skill level

Documents what will beproduced (deliverables)

Work Plan Criteria

SUBTOTAL

GRAND TOTAL

1.Organize The Project

2.Characterize Product/Process

3.Benchmark Information

4.Analyze Value Chain5.Build Models

– Product/Process– Supply Chain

6.Develop Scenarios/Integrate Models

7.Test Scenarios

8. Develop Plan for Change9.Communications Model

& Strategy

Task ElapsedTime

Work Days by Skill Type

Allocation By Source

BioTek Consulting Company

29 64 24

Experts

210

Analysis

3 Weeks 3 3 3 15 24

327

1 Week 1 1 1 5 8

TOTALExecutive

Mgmt. AnalysisProject Mgmt. Experts

12 Weeks 6 24 2 20 52 6 20 18 2 1 2

6 Weeks 6 8 2 30 46 6 4 20 4 2 106 Weeks 1 8 2 30 41 1 6 — 2 2 30

6 Weeks 6 6 2 30 44 6 4 27 0 0 0

5 Weeks5 Weeks

——

33

33

2525

3131

——

12

520

20

30

20 0

3 Weeks 4 3 3 15 25 4 2 10 1 2 5

2 Weeks 2 5 3 15 25 2 4 10 1 3 525 60 20 190 295 25 43 110 12 13 72

AnalysisProject Mgmt.

Project Mgmt.

Executive Mgmt.

Plan Research

The completed worksheet feeds into the workplan that breaks theanalyses into discrete pieces of work.

26


FinalHypotheses

InitialHypotheses

SolutionProblem

As analysis proceeds and knowledge deepens many hypothesesare discarded and new ideas (with new research requirements)incorporated.

Analyze Findings

27


Despite the best upfront planning, the research andanalysis may not deliver the results that the teamexpected or that solving the client problem demands.Therefore, issue-based problem-solving is an iterativeprocess. The team often needs to revisit some or all ofthe steps and revise the workplan accordingly

Analyzing Findings

That is the significance of the heavy arrows in themiddle of the chart

Structurethe ideas

Developthe

researchplan

Analyzefindings

Generateideas

Wherethe clientwants to

be

Definethe

problem

Communi-cate theanswer

Wherethe

client is

Solvethe problem

Analyze Findings

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The main message, or the answer to theproblem defined at the outset of theproject, is what the client wants to hear, soit belongs up front

People absorb information more easily when theyknow why they are receiving the information, andthe main message creates that context

Communicating the AnswerTo emphasise the importance of effectivecommunication in client engagements, issue-basedproblem-solving includes a structured approach tocommunication as the last step of the methodology.The rationale is that even the best solutionis worthless unless the client understandsand buys into it

The pyramid represents the core concept ofstructured communication. Its central premise isthat every piece can and should be reducedto a single main message (articulated in asingle sentence) and that this messageshould appear at the beginning of thedocument or presentation (after a briefstructured introduction). This approach tocommunication rests on two beliefs:

The rest of the pyramid draws on projectanalyses, findings, and conclusions topresent a compelling case for the main message.The pyramid is drawn with its boxes gettingsmaller as the levels descend to reflect theprogression from the biggest idea at the top to evermore detailed information supporting this point

Mapping the pyramid prepares the team to makecritical decisions about what material to include ina document or presentation. Any material thatdoes not strongly and directly support thepoints mapped on the pyramid should beomitted (no matter how many hours of research,analysis, design, and production it took to create)

Like the branches at a given level of theissue tree, the boxes at a given level of thepyramid must be MECE (mutually exclusive,collectively exhaustive). The logic should becomplete, with no overlaps. The key implicationhere is that evidence can be used to support onlyone point

Communicating the Answer

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Structured Communication Principles

Structure communication as a pyramid,presenting the main message first

Develop the rest of the pyramid tosupport the main message, in evergreater detail

Use topic sentences to tell the storymapped by the pyramid

Finally, the team communicates the answer to the question posedon the problem definition worksheet.

Communicating the Answer

PROJECT WORKPLAN

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Definition/Explanation:

Purpose:

People Involved:

Timing/Stage of Process:

Description

The project workplan is a detailed outline of the methodology tobe used in a project, including interim and final deliverables andthe necessary actions to achieve them

Aids in the direction and coordination of the overall project effortto maximise both the effectiveness and efficiency of the project’sparticipants

The project manager will typically create the workplan and reviewit with the Consulting company/client team periodically as a wayto review next steps and communicate project status

Developed during proposal preparation and expanded before thestart of the project. Initial workplan should be periodicallyupdated as warranted throughout the duration of the project

Project Workplan: Overview

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Workplan Purpose

Workplan Description

A workplan is a project management tool which provides directionand coordination for the overall project effort.

Monitor ongoing project status as it relates to the project objectives andclient expectations

Allocate responsibilities across a project team by matching resources withproject needs, creating accountability and making individuals responsiblefor delivering results

Understand and manage interdependencies of various project activities

Communicate to client and team what we are spending our time on

Develop the initial project budget, help avoid unnecessary budget overruns,and/or explain budget overruns

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ActionDefine Audience

Choose AppropriateLevel of Detail

Review WorkplansUsed in Other Projects

Explanation Before developing a workplan, it is important to determine the intended audience

(e.g., client, project partner, and project team) Once chosen, the workplan should be tailored to that audience’s particular needs

In choosing appropriate level of detail consider project scope, duration, complexity,staff size, etc.

For simple projects and/or client presentations, workplans may only include high-level actions and deliverables--at a minimum, include: timeline, start date, finishdate, any interim deadlines and major work steps needed to complete project

For staffing planning and actual engagement management, a more detailedworkplan may be appropriate

More detailed workplans may include: each participant’s weekly involvement witheach action step and the number of days estimated for each step’s completion byparticipant

Often, Strategic Services workplans contain less detail than do other competencygroups due to the nature of our work; Strategy work requires constant adjustmentbased on new information causing previous plans to become quickly outdated

Previously used workplans provide an excellent starting point for identifying thekey components of a project

The experience gained from former projects may often benefit project teams as theyallocate responsibilities and estimate timelines

Workplan Best Practices


For each action step of workplan development and implementationthere are best practices which should be followed.

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For each action step of workplan development and implementationthere are best practices which should be followed. (cont’d)

Action Explanation

Workplan Best Practices (Cont’d)


Review WorkplanReasonableness

Establish Frequency ofReview

Revise Workplan asNecessary

Before implementing the workplan, the project manager should review theworkplan with each of the project participants to confirm the reasonableness of thetimeline and responsibilities delineated therein

Manager should define in advance of engagement the frequency of workplanreview by the team to compare actual project status to workplan’s estimates

Although contingent upon complexity of project, weekly review is frequentlyrecommended

If not revised, workplans can become ineffective as management tools because theymay no longer accurately reflect the reality of the team’s activities

Workplans must be revised to reflect client changes, delays, interruptions and anyunforeseen circumstances that alter the work needed to successfully complete theproject

Workplan changes may be as simple as reassigning responsibilities or extendingdeadlines, or as complex as reevaluating an entire project phase

35


Process DesignRecommendations

Activity-Based Costing

ClientDatabaseAnalysis

Service ValueAnalysis

Objectives:

Work steps:

Deliverables:

Identify segments

Literature search Interview bank

personnel Interview 25-35

clients Select sample Design survey Administer survey Conduct statistical

analyses (cluster,factor, conjointmethods)

Service values perprocess per segment

Determine productusage

Identify data sources Download data Establish external fees

Product-usagesegments

Client database

Determine segmentscost levels

Analyse activity datafrom database

Combine with processflow and expense data

Expenses per segment

Recommended servicevalues for process bysegment

Quantify expensesavings

Compile analysis results Estimate effect on

expenses

Expense savingsscenarios

Sample Workplan 1: Phase “Boat Chart”

Phase 1 Phase 2 Phase 3 Phase 4

Sample Workplan 1

This high-level, very basic workplan is most appropriate for clientuse in explaining/describing the consulting process (e.g., in aProposal).

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At these planning checkpoints, we will meet with you to confirm direction, timeframes and project results.

Confirm distribution strategy

Steps Weeks

Sample Workplan 2: Basic Gantt Chart

Sample Workplan 2

1 2 3 4 5 6 7 8 9 10 1211

Structure analytical framework

Recommend possible actions

Identify distribution gaps

Evaluate alternative distribution scenarios

Project Status Updates

Present results

This more detailed, but still high-level workplan is mostappropriate for client use or for small, straightforwardengagements.

37


Sample Workplan 3: Detailed Gantt Chart

Sample Workplan 3

This more detailed workplan also includes deliverables andresponsibilities, and is thus more appropriate for project team useand project tracking.

Responsi-bilitiesActivities Deliverables

Generate hypotheses

Model economics

Establish criteria

Draft vision with CEO

Define base-caseassumptions

Describe scenarios forhypotheses

Evaluate hypotheses

Write report/presentation

Review with CEO

Revise report/presentation

Hypotheses

Spreadsheet

Criteria

Vision

Assumptions

Scenarios

Rating

Report

N/A

Revised report

100%

100%

80%

50%

20%

0%

0%

0%

0%

0%

%Complete

Team

MS

BKW

Team

BC

MS

BKW/MS

Team

BKW/MS

Team

Week:Starting:

2

1-May

3

8-May

4

15-May

5

22-May

6

29-May

7

5-June

8

12-June

9

19-June

1

24-May

SUCCESSFUL PERSONNEL MANAGEMENT

39



Purpose:

People Involved:


Description

Personnel Management is an extremely important componentof a successful engagement and a key determinant of overallcareer satisfaction. This document discusses the importance ofgood personnel management and outlines the keycharacteristics of successful personnel management during anengagement.

Defines expectations of managers. Provides useful tools, rulesand guidelines for personnel management success

Both engagement managers and team members must take anactive role in ensuring successful personnel management

Successful personnel management on an engagement is acontinual process which begins with the pre-engagement memoand ends with final project performance discussions

Successful Personnel Management: Section Overview

Source: Adapted from 1997 Presentation Engagement Management: The People Issues, Authors/Presenters Chris Osika, ScottPopoulo, David Blumberg

40


Roles and responsibilitiesdefined

Team environment andculture

Lifestyle balance Career goals of team

members

Successful Engagement Management

Personnel Firm

Client

Reusable/Marketableknowledge capital

Sales opportunities Satisfied clients

High quality output No surprises/Actionable

results Knowledge transfer

Background: Engagement Management Context

Personnel management falls within the context of the overallengagement management process and must balance the needs ofteam members with the needs of other stakeholders.

41


Personnel Management Success Drivers

PersonnelSatisfaction

LifestyleBalance

Roles andResponsibilities

TeamEnvironmentand Culture

CareerGoals of

TeamMembers

There are four drivers to successful personnel management.

Roles and Responsibilities: A Framework for Discussion

42




LifestyleBalance



CareerGoals of

TeamMembers

The roles and responsibilities essentially define what needs to getdone and how we plan on doing it.

Roles and Responsibilities: Issues

Issue analysis Work planning Pre-engagement

expectations Periodic checkpoints Deliverables


Lifestyle

Balance

Roles and

Responsibilities


CareerGoals of

TeamMembers

43


Issue Area Philosophy/Vision

Roles and Responsibilities: Vision/Philosophy

Issue Analysis/ProblemDefinition

Structured, hypothesis driven Exhaustive framework (MECE)

Driven by issue analysis Goal based Ownership and accountability Status memos

Work Planning andDeliverables

Collaborative two way communication Provide direction, yet allow for flexibility Document and revisit

Pre-EngagementExpectations

Interactive ongoing constructive feedback Involvement by all project management

(PTR/AP/MGR )

Periodic Checkpoints

Roles and responsibilities must meet deliverables and clientexpectations, while also addressing the needs of team members.


Lifestyle

Balance

Roles and

Responsibilities


CareerGoals of

TeamMembers

44


Own a section ofthe issue tree with

clearly defineddeliverables…

Responsibility / Impact

Identify tradeoffsfor client

Challenge “scopecreep”

Manage teammembers’enthusiasm

Help prioritiseother project andnon-projectresponsibilities,where appropriate

Managescope

Small groupfacilitation

Customer orclient interviews

Formalpresentations

Internalpresentations

Facilitate/enableexposure to client

and SeniorConsulting company

resources

Enable theindividual/support the team

Manage at anappropriate level(avoid micro-management)

Share the gloryand the pain

Denotes Ownership

Roles and Responsibilities: Principles/Tools

One key to maintaining personnel satisfaction is to assign teammembers ownership of distinct portions of the issue tree and theresultant deliverables.


Lifestyle

Balance

Roles and

Responsibilities


CareerGoals of

TeamMembers

45


Pre-Engagement Memo ContentsGuiding Principles

Roles and Responsibilities: Principles/Tools

The pre-engagement memo provides a clear up-front writtendialog, between the manager and the team member, outlining theroles and expectations of the team member.

All projects with a duration of greaterthan one month must utilise a pre-engagement memo

The project manager and the teammember share joint responsibility forwriting memo when project beginsand reviewing it upon the projectcompletion

Pre-engagement memos must becompleted prior to the end of the firstweek of the project

Open and honest discussion ofstrengths and development areas forboth consultant and manager

Project Overview Project scope and objectives Project deliverables Timing of proposed phases Team description

Roles and Responsibilities Overall role(s) on project team Expected deliverables Major analyses required Scope and timing of specific responsibilities

Skills and experience Specific skills which individual brings to the

project Previous experience relevant to project

Professional Development Skills to be developed Experience to be gained

Operating Guidelines Level of management guidance Travel policy Work schedule


Lifestyle

Balance

Roles and

Responsibilities


CareerGoals of

TeamMembers

46


Project Overview Cogswell Cogs (CC) has retained our team to reengineer their home-office operations. The team consists of: 4 full-

time client members, 1 Manager, 2 Senior Consultants and 1 Business Analyst. Expected deliverables include aconfirmation of CC’s operating vision, a comparison of CC’s current operations with its operational vision, adetailed implementation plan for reengineering at least two home office departments, and a transfer of knowledgeto CC on how to continue the reengineering process after the engagement. The project is expected to last threemonths.

Roles and Responsibilities Joe will develop the work plan for the overall engagement including a detailed issue analysis. He will analyse

CC’s current operations and make recommendations for improvement, focusing primarily on the customer serviceprocess. Joe will be responsible for developing client deliverables, with other team members, in his area ofresponsibility. Joe will also supervise the primary and secondary research of the Business Analyst.

Skills and Experience

Professional Development

Operating Guidelines Joe will have daily contact with the project manager, Steve Smith. The standard travel policy will be flying

Tuesday morning to the client site and returning home Thursday evening, with exceptions as required. Steve willprovide periodic informal performance feedback and Joe will receive a midpoint project review and final review.

Develop group facilitation skills Gain supervisory experience Develop key engagement/client management skills

Broaden exposure in High Tech industry Deepen understanding of reengineering

methodology

Pre-Engagement Memo*

Engagement: Cogswell Cogs Re-engineeringDate: 2/25/95

Manager: Steve SmithSenior Consultant: Joe Lang

Associate High Technology Industry group Experience in re-engineering and benchmarking Significant questionnaire design and analysis Limited group/team facilitation

Extensive problem solving background Joe has not had significant exposure to clients Limited supervisory experience Limited project management (admin. experience)

The Pre-Engagement Memo - An Example

47


Communications chains Teaming style Cross-competency environments Team structure and organisation

Nearly all of us spend a majority of our time working within teamenvironments, in fact our business centres around the effectivedeployment of high power teams.



LifestyleBalance



CareerGoals of

TeamMembers

Team Environment and Culture

Issue analysis Work planning Pre-engagement

expectations Periodic checkpoints Deliverables


LifestyleBalance


TeamEnvironment

and Culture

CareerGoals of

TeamMembers

48


Team Structure andOrganisation:

Teaming Styles:

Communications Chains:

Cross-Competencies:

Structured to the client

Flat internally to the team

Collaborative/supportive interrelations

Debates within limits

Communicate all project issuesand status to all team members

Think contextually, execute tasks

Resolution of conflicts

Two way communications

Ongoing expectations negotiation

Encourage all competency projects

Issue Area Philosophy/Vision

Team Environment and Culture: Vision/Philosophy

The goal of the personnel environment and culture is to create asituation in which every member of the team can contribute to thebest of his or her abilities and experience.


Lifestyle

Balance

Roles and

Responsibilities


CareerGoals of

TeamMembers

49


Suggested Project Guidelines (Examples)

Team Environment and Culture: Principles/Tools

Guidelines for teaming on a client engagement reinforceprofessionalism and flexibility.

We are here as “experts”, not advocates for any particular organisation

Time will be allocated for “executing” in addition to discussion Clear responsibilities for tasks Tasks are reasonable/feasible Wave red flag if help is needed; group will assist

Interaction best practices Trust – be trustworthy and respectful Use “parking lot” to track non-critical issues that will be addressed

at a later time (do not dwell on them)

Relation to organisation/politics Communication plan established by team members Arrive at options, implications, and recommendations – not

decisions

Challenge assumptions

Respect for personal lives

Individuals take breaks when needed


Lifestyle

Balance

Roles and

Responsibilities


CareerGoals of

TeamMembers

Set up project framework / Establish a Budget

51



Purpose:

People Involved:


Description

Set up project framework / Establish a Budget : Section Overview

Methodology to be used in a program/project, includingprocedures, competencies, systems to plan a program /projectand to set up billing arrangements

Plans the framework of a project, program and makes sure theclient accepts payment standards

Programm Management, Project Management, Team leaders,Controller; Team members support

First weeks of a program / project (at client site)

52


Project Steering Committee

Set up project framework: Organisation

Customer Consulting Company

Project Management


For each engagement a project organisation is designedensuring an efficient course of the project.

Project Team


• Strategic approach• Decision making

• Co-ordination• Assistance and Support• Working packages

• Project status • Project results• Escalation• Information for decision making

• Team Results• Information for decision making

53



Example:Project organisation

Project Management• N. N.• N. N.• N. N.

Steering Committee• N. N.• N. N.

Analyses• N. N.

Competition Germany Italy France • N. N.• N. N.• N. N.• N. N.• N. N.

• N. N.• N. N.• N. N.• N. N.• N. N.

• N. N.• N. N.• N. N.• N. N.• N. N.

• N. N.• N. N.• N. N.• N. N.• N. N.

54



Project CRP

ProjectMigrationFI/CO/MM/

Consolidation

ProjectTechnology

ProjectBusiness

PerformanceOverall

Quality assurance

Projectsecretariat

ImplementationI*

Implementation B*

Implementation E*

Implementation EVG*

Implementation Service*

....

Program ManagementOffice

Program Management

Project Committee

ProjektIntegration*

ProjectBusiness

PerformanceRelease I

A broad effort encompassing a number of projects and/or functionalactivities with a common purpose is named program.Example: Program organisation

Steering Committee

55


Organisation break down structure

The “Organisation break down structure“ (OBS) describes theorganisation of an engagement.

Functional and organisational

structure of all parties involved in the consulting project /

engagement

Reflects responsibilities and

competencies of each person within the project

Ensures, that the project contents are achieved according to the

planned time schedule and the requested quality

Set up project framework: Organisation break down structure

Program-leader

Project-leader

Project-leader

Sub-Projectleader

Sub-Projectleader

Sub-Projectleader

Project-member

Project-member

56


Set up project framework: Work break down structure

WBS divides the program in

single activities and decomposes these to the level of tasks

Describing program structure and

complexity of tasks

Basis for:

scheduling

evaluation and measurement of key performance indicators

controlling

Within the “Work break down structure“ (WBS) single taskare defined, which are necessary to run the program.

Work break down structure

Program

Activity Activity

WorkingPackage

WorkingPackage

WorkingPackage

TaskTask

Project Project

57


Project-Management

Program-Management

Program

Task

Project

WorkingPackage

Teammember

Set up project framework: Work break down structure

The program is broken down into manageable tasks forthe projects.

Activity

58


Proj

ect-

mem

ber

Proj

ect-

mem

ber

WBSWork Breakdown

Structure

OBSOrganisationBreak down

Structure

Set up project framework: Combination of OBS and WBS

The combination of OBS and WBS results in a matrixassigning project/program organisation to task structure.

Program

Activity Activity

WorkingPackage

WorkingPackage

TaskTask

Project Project

Pro

gram

-le

ader

Proj

ect-

lead

erPr

ojec

t-le

ader

Sub-

Proj

ect

lead

erSu

b-Pr

ojec

tle

ader

Sub-

Proj

ect

lead

er

WorkingPackage

Working Package/Project member



59


Set up project framework: Working Package

Contents and structure of working packages

Working Package Title:

Name of Client: Project Name: No:

1. Tasks:

2. To do / Open question:

3. Expected results:

4. Time planning:Planned-Start: Is-Start:Planned-End: Is-End:

Cause of delay:

5. Human resources:Name: Estimated MD:

(Date/Firm project mgmt.) (Date/Firm team mgr.)

60


Project relatedvariables

Estimatedeffort

Historical base

Set up project framework: Duration of a task

Estimate the duration of a task (1/2)

+

=

Experiences from other projects

• Duration of similar tasks?• Opinion of specialists?• etc.

What is in the current project different?

• Higher quality standards increase effort• Longer projects increase uncertainty• Necessary training needs time• Geographical distribution of team members increases time exposure for communication• etc.

Estimate time exposure for one task a “standard”-team member is working full time to complete it.

61


Duration

Person relatedvariables

Estimate the duration of a task (2/2)

=

Person related variables are:• Experience, productivity, abilities of individual team members• Period of vocational adjustment• Involvement in different projects• From experience a team member needs 2 hours a day for general tasks (mail, meetings, etc.), etc.

Estimated duration of a task completed by a definedteam member

Number of work days the defined time memberneeds to complete the task

+

Non-person relatedvariables

+

Elapsed time

=

Impact in consequence of the individual calendars:• Vacation• Meetings, etc.

Set up project framework: Duration of a task

62


Responsibility and Number Days

Generate Hypotheses 3 9,000 3 6,000

Establish a Budget: Example

The detailed description of working packages will enable theproject manager to assign responsibilities, and effectively estimatethe cost of the project.

Model Economics 10 15,000 5 5,000

Establish Criteria 2 4,000 2 3,000 2 2,000

Draft Vision with CEO 2 6,000 2 4,000 2 3,000

Define Base Case Assumptions 1 2,000 1 1,500 1 1,000

Total 5 $15,000 8 $16,000 15 $22,500 8 $8,000

Activities Days Dollar Days Dollar Days Dollar Days Dollar

Jane Jim Judy Jared($3,000/day) ($2,000/day) ($1,500/day) ($1,000/day)

Total Budget$71,500

63


Example:Estimation ofnecessaryresources

Establish a Budget: Example

64


Submit timereports

with hoursand expenses

Post hours andexpenses, billingsand other chargesto a Job Summary*for a charge code

Set upcharge code

EstablishBudget

Update budget toreflect actual fees

and expenses

Create aninvoice anddistribute

billingpaperwork

Before a jobbegins

Timing:At the beginningof a job

Each monthuntil a projectis completed

ProjectManager &ProjectPartners

People Involved:Project Manager,Project Partner,& CAT

ProjectManager &BillingManager

Each monthuntil a project iscompleted

Administrationorganization -Billing, ProjectManager & BillingManager

Timing:

People Involved:

Budget Management Process:

Billing Process:

Pre-engagement Processes

Receive &Process

Payment

The Budget Management Process coincides with the BillingProcess.

Establish a Budget: Billing Process

65


Communicate the billing amounts and timing in the Arrangement Letter/Proposal

Bill on a monthly basis - ideally a month in advance by the 15th or end of the month(coinciding with the time reporting periods for that month) - to attempt to maintain a zerobalance in unbilled fees and expenses (inventory) throughout the project

Include an expense estimate in interim bills; send a final invoice which reflects total actualexpenses incurred

Request payment upon receipt to help ensure that the payment is received within 30 days; thiswill help the project team avoid internal interest charges against the job

Contact clients if payment has not been received by the end of the following month

Wait at least 30 days after the last time reports are submitted to send a final invoice to ensurethat all expenses have been captured; the final invoice can include fees and expenses orexpenses only

There are a few, simple guidelines to effectively manage clientbillings.

Establish a Budget: Billing Process

66


There are numerous types of pricing arrangements that a Consulting companymay set up with its clients. Billing arrangements may also vary, but most often,a consulting company bills clients on a monthly basis for at least a portion ofthe project fees and expenses.

Fixed fee and expense

Fixed fee and actual expensesincurred

Actual hours worked andexpenses incurred

Value-based pricing

• Consulting company agrees to perform a specified piece ofwork and produce agreed deliverables, for a fixed amount ofmoney regardless of whether the actual cost (fees andexpenses) are higher or lower than the agreement

• Consulting company agrees to perform a specified piece ofwork for a fixed fee and tries to manage the work to ensurethat actual fees do not exceed the arrangement. In addition,clients receive a bill for actual out-of-pocket expenses incurred

• The client receives a bill for actual fees and expenses incurredbased on hours worked and amounts expended during theproject

• Consulting company agrees to perform a specified piece ofwork with payment contingent upon the client achieving adesired outcome, e.g., reducing costs, increasing revenue. Inthese situations, Consulting company’s fee may be variableand based on a percentage of the benefit achieved, e.g.,Consulting company may receive 3% of incremental profitgenerated

Example Pricing Arrangements Explanations

Establish a Budget: Pricing

Monitor the Budget / Measure project success

68



Purpose:

People Involved:


Description

Monitor the Budget / Measure project success : Section Overview

Methodology to be used in a program/project, includingprocedures, competencies, systems to achieve project results ontime and on budget

Measures project success, budget, schedule variances

Programm Management, Project Management, Team leader,Controller

Throughout the duration of the project

69


To ensure project success a continuous controllingprocess is implemented.

The controlling process includes the following tasks:

Ensure that all team members are available to accomplish their specific

tasks

Control project-/task progress to ensure budget- and schedule adherence

Identify potential and current problems by continuously measuring the performance

Review and approval of intermediate results

Management Issue or Open Point

Management Change Request/Change Order

Monitor the Budget / Measure project success : Controlling Process

70


Definebasis

Planning

Realisation

PlanRealisation

Reportcurrentstatus

FinishProject

Organiseresources

Controlwork

Analysework

Project 3

Project 1

Project 2

Project 3

Project 1

Project 2

Operational Controlling is composed of the followingcomponents:

Monitor the Budget / Measure project success : Components of operative controlling

71


Starting point for project controlling is the master plan.

Program / Project Plan• Plan• Actual• ETC (Estimate to complete )• Resources• Resource Assignments

Program / Gantt Chart• Start / End Dates• Work progress

Project / Resource Calender• Working Days• Availability• Vacation

Definebasis

Planning

Realisation

PlanRealisation

Reportcurrentstatus

FinishProject

Organiseresources

Controlwork

Analysework

Monitor the Budget / Measure project success : Master plan

72


Working packages provide the basis for project planning, targeteddistribution of project tasks and a meaningful project controlling. Theyshould be accomplished according to the time schedule in the project plan.

Definebasis

Planning

Realisation

PlanRealisation

Reportcurrentstatus

FinishProject

Organiseresources

Controlwork

Analysework

Project 3

Project 1

Project 2

Project 3

Project 1

Project 2

Monitor the Budget / Measure project success : Working packages

73


Basis for analysis are time sheets which are completed by theproject members every week.

Definebasis

Planning

Realisation

PlanRealisation

Reportcurrentstatus

FinishProject

Organiseresources

Controlwork

Analysework

Project 3

Project 1

Project 2

Project 3

Project 1

Project 2

Time Sheet• per Resource• Actual per Task• ETC per Task

Time / Progress Track• per resource • Enter Time into System

Monitor the Budget / Measure project success : Control Work

74


Example:Time sheet

Monitor the Budget / Measure project success : Time Sheet

75


A weekly analysis makes an optimal program steering possible.

Project Plan

• Maintain Scope

• Maintain Resources

• Maintain Resource Assignment

• Maintain ETC

Definebasis

Planning

Realisation

PlanRealisation

Reportcurrentstatus

FinishProject

Organiseresources

Controlwork

Analysework

Project 3

Project 1

Project 2

Project 3

Project 1

Project 2

Monitor the Budget / Measure project success : Analyse work

76


Within a weekly analysis key performance indicators areinvestigated reflecting the current project status.

Program / Project Status• Plan• Actual• ETC ( Estimate to Complete )• EAC ( Estimate at Completion )• % Completed• Schedule Variance• Budget Variance at Completion

Program / Project Plan• Resource Commitment• Resource Allocation

Definebasis

Planning

Realisation

PlanRealisation

Reportcurrentstatus

FinishProject

Organiseresources

Controlwork

Analysework

Project 3

Project 1

Project 2

Project 3

Project 1

Project 2


77


Monitor the Budget / Measure project success Key performanceindicators

Plan: Planned time budget

Actual: Actual time spent until today

ETC: Estimate to complete- Estimated time necessary to complete the task

EAC: Estimate at completion- Estimated Plan to complete the task = ETC + Actual

Budget Variance = EAC - Plan- Positive budget variance: budget exceeding- Negative budget variance: budget shortfalls

Schedule Variance: ETC - Plan starting from day x up to the planned finish date- Positive schedule variance: schedule exceeding- Negative schedule variance: schedule shortfall

RSV: Schedule Variance / number of team member

Key performance indicators to track program progress are:

78


Program

Project 2Project 1Project n+1

Project 2Total MD

Customer MD Consulter MD

The analysis is accomplished for the program, for each project aswell as for different resources groups (customer, consultingcompany).

Definebasis

Planning

Realisation

PlanRealisation

Reportcurrentstatus

FinishProject

Organiseresources

Controlwork

Analysework

Project 3

Project 1

Project 2

Project 3

Project 1

Project 2


79


A report shows in particular project progress as well as budget andschedule variance.

SV (Arbeitstage)


80


Budget and Schedule Variance

Reasons for a positive budget variance (budget exceeding)

Not trained team member or imprecise estimations

Enlargement of work scope

Frequent excessive labour respectively double-work

Inefficient communication concerning volume of work,standards, requirements

Reasons for a positive schedule variance (time delay)

Availability of team members not guaranteed

Team member work on more different tasks exceeding theworking packages defined in the planning process

Definebasis

Planning

Realisation

PlanRealisation

Reportcurrentstatus

FinishProject

Organiseresources

Controlwork

Analysework

Project 3

Project 1

Project 2

Project 3

Project 1

Project 2


81


Example:Actual of the program / project is compared with the Plan

Man

ntag

e (k

umul

iert

)

Tag x


82


Example:Status of each project


83


-266

-231

-124

-117

-62

-50

-40

-20

-6

-8

-10

-3

-6

-9

-400-350-300-250-200-150-100-500

C19-BOM

C07-ProjectManagement

D04-Conversion

C09-Purchasing

P02-Sales Pilot

D02-Product Test

B04/E04-Training Variance (Mandays)No. of delayed tasks

Example:Deviation of Man days and the number of delayed tasks are described.


84


A formal process to review and approve intermediate results

is defined by program/project management

In particular these process is necessary, because a project is faced with multitudes of changes

The review and approval of intermediate results supports the

acceptance and identification with the project progress

Phase 2 6/983/99 6/99 9/9912/993/00 6/00

Mile stones:

The review and approval of intermediate results isnecessary to define mile stones during the project progress.

Definebasis

Planning

Realisation

PlanRealisation

Reportcurrentstatus

FinishProject

Organiseresources

Controlwork

Analysework

Project 3

Project 1

Project 2

Project 3

Project 1

Project 2

Monitor the Budget / Measure project success : Status report

85


Helpful Hints

The following items are frequently found on status reports. A written report detailing

issues and actions being taken matters requiring management attention current status achievements this period plans for next period status of project risks performance against budget and schedule

An overall cost summary (for partner) An overall work days summary A bar chart with actual progress against plan Status of deliverables with actual status against agreed due dates Hold progress reporting meetings on Tuesday morning, first thing.

(Fridays are always too hectic; Mondays you may have forgottensome details of what happened the week before.)

The status report informs the program / project managementabout the current project progress.

Definebasis

Planning

Realisation

PlanRealisation

Reportcurrentstatus

FinishProject

Organiseresources

Controlwork

Analysework

Project 3

Project 1

Project 2

Project 3

Project 1

Project 2


86


Working package

Responsibleperson Result Planned

End Status MDAcutal

CommentPlan

Examples:Status report


87


Project Management decisions:

Plan / Actual comparison (man days, time schedule, progress, quality)

Definition and evaluation of actions in case of variance Acceptance and approval of actions in terms of change requests and

change orders

Review andapprovalof actions

Accomplish-ment ofactions

ProjectManagement

Decision

Performanceevaluation

ChangeRequest

Status reports are the basis for project management decisions which arenecessary if there are variances between Plan and Actual jeopardising theproject success.

Definebasis

Planning

Realisation

PlanRealisation

Reportcurrentstatus

FinishProject

Organiseresources

Controlwork

Analysework

Project 3

Project 1

Project 2

Project 3

Project 1

Project 2


88


Client Scope Creep - avoid it

Be careful of scope creepFirst check if the additional work is covered by the arrangement letter orproposal or is clearly out of the original scope of the project

Is the work out of scope?

Is the additional work clearly linked to the project and its objectives?

Can the additional work improve Consulting company’s positioning inthe client’s mind?

Is the additional work within the capability of the team?

Can the additional work be done without preventing the project teamfrom achieving stated deadlines according to the original proposal?

Yes No

If the answer to thesequestions involves more than one ‘No’, the work probably should not be done

Monitor the Budget / Measure project success : Client scope creep

89


Results are reviewed and approved

Project members are integrated back in their usual

field of work

Process improvements are identified

Assignment ofresponsibilitiesFinish

project

Project evaluation

Deallocation of projectmembers

Documentation

Definebasis

Planning

Realisation

PlanRealisation

Reportcurrentstatus

FinishProject

Organiseresources

Controlwork

Analysework

Project 3

Project 1

Project 2

Project 3

Project 1

Project 2

At the end of the project all project results are reviewed and formallyapproved.

Monitor the Budget / Measure project success : Finish project

QVS - QUALITY MANAGEMENT

91


DescriptionDefinition/Explanation: QVS stands for Quality, Value and Success, and is designed to ensure

that on every engagement clients derive Value which significantlyexceeds our fees, and that our work ultimately helps clients change to bemore successful.

Purpose: The QVS process is supported by an easy-to-use set of tools to ensurethat quality is built into our client engagements. The emphasis is onunderstanding expectations and communication throughout theengagement, both formally and informally, with client personnel and teammembers.

People Involved: The underlying premise of this approach is that only by understanding,managing and meeting or exceeding the expectations of the clients andengagement team members can a Consulting company achieve the threeimportant goals:• Satisfy clients• Motivate own people• Achieve balanced business growth

Timing/Stage of Process: Typically, the Project Manager is responsible for ensuring that theprocess is in place on the job. The Project Manager, EngagementPartner, project team members or clients may all participate in ensuringthe quality of the engagement.

Different QVS tools are completed at each stage of the engagementmanagement process and may be used as a reference throughout theengagement.• Proposal• Before engagement• During engagement• After engagement

QVS - Quality Management

92


QVS ensures that a Consulting company provides quality service,delivers value, and contributes to the success of clients.

Definitions

Quality Value Success

Continuously understanding,anticipating, meeting, andexceeding the needs andexpectations of our clients

Economic or other benefitsthat accrue to a client as aresult of services or productsprovided by Consultingcompany

Demonstrable progresstowards or the achievementof one or more of a client’sstrategic objectives as aresult of services or productsprovided by Consultingcompany

Background

93


The engagement Process

The QVS process is used to ensure the quality, value and success foreach of the four stages of an engagement.

I. Proposal All activities required to develop, prepare, andfinalise a project proposal until it is ultimatelyaccepted or rejected by the client.

II. Before engagement All activities following the acceptance of the projectproposal through to the commencement of clientwork as defined in the proposal/arrangementletter.

III. During engagement All activities occurring during the execution of thework outlined in the Proposal/Arrangement Letter.

IV. After engagement All activities required to close the project afterproject work and objectives are complete.

Engagement Stage Explanation

94


Drivers for Quality

Several key drivers reinforce the need for improved quality.

Client Expectations

Competition

Cost of Quality

Litigation

Own People

Business Integration

Strategy

Drivers for Quality

95


1992 1997

1. Expectations not identified

2. Gaps between expectations and

planned delivery not resolved

3. Estimates wrong

4. Contracts onerous

5. Resources inadequate

6. Project/Program management poor

7. Top management contact inadequate

8. QMA Reviews not done or

ineffective

1. Expectations not identified

2. Gaps between expectations and planned

delivery not resolved

3. Business case not done or poor

4. Estimates wrong

5. Contracts onerous

6. Resources inadequate

7. Project/Program management poor

8. Benefits realisation neglected

9 Top management contact inadequate

10. QMA Reviews not done or ineffective

There are several known causes of engagement problems, but in recent timesthe business case, and benefits realisation, have become increasinglyimportant.

Drivers for Quality

96


Overview of Client Quality Management

Expectations Specifications Agreement Results Perception

Project Management

Client Quality Management

Client and Consulting Company

CQM broadens a Consulting company’s approach to client servicemanagement by including explicit consideration and monitoring of clientexpectations and perceptions.

97



ExPECT is a five-stage model which is used to define project stakeholdersand aims to identify and meet client expectations.

3. Execution• Execute work and gather team input on quality• Monitor and update the quality plan

5. Tailoring• Continuously improve quality performance

2. Planning• Define a plan to achieve expectations

and ensure quality in all processes

4. Checking• Analyse quality performance and determine

improvement recommendations

1. Expectations• Identify client

expectationsand obtainconsensus

Ex

P

T E

C

98



Important Considerations:

• Real Strategic Impact• Benefits Realisation Effort• Alternative Value Propositions

FINANCIALBUSINESS

CASE

MGMTSUMMARY

INTA

NGIB

LE

(BUT

MEA

SURA

BLE)

E X P E C T A T I O N S

The business case is an important way of ensuring we are meeting theQVS objectives of doing the Right Thing, in the Right Way, and achievingthe Right Result.

99



QUALITY PLAN

•Right Thing•Right Way•Right Result

Other Client/StakeholderExpectations

The Quality Plan contains, or references, the following key projectinformation:

Contract/Arrangement

Project/Program Plan

EngagementQuality Manage-ment Program

RiskAssessment

EngagementCQMA

Schedule

Consulting companyExpectations

Client’sBusiness

Case

100



Quality Management Programmes increase delivery quality and add valueto our client work through the use of specific continuous improvementtechniques.

QUALITY PLAN MANAGEMENT

TRAINING

METRICS

BENCHMARKING (Similar engagements)

SURVEYS INFORMAL DISCUSSIONS

FUNCTIONAL/TECHNICAL ADVISORY REVIEWS

TEAM INPUT

QUALITY ACTION TEAMS

RECOGNITION

COMMUNICATION

101


Overview: Watch Jobs

Special Attention Job Classification

It is the role of the QA Partner, in addition to the Engagement Partner, toidentify any engagements or clients that represent a significant businessrisk. These situations are referred to as “Special Attention Jobs”.

A “Special Attention Job” might fit any or all of the following criteria:

A job whose size, complexity and scale is stretching the limits of our capabilities, recognising that thismay well have to be judged in the context of the location of the work, as well as it absolute complexity

A job in which we are concerned about the client’s expectations, either because they are ill-defined orbecause they are, or may become out of alignment with the work we are doing

A job on which we may have a difficult client, either because they are unrealistically demanding orbecause they are insufficiently experienced or capable to deal with the scale of work we are doingwith them

A job on which our people may become, or are, unhappy, thus creating a job which is suffering, ormay suffer, from low morale and, almost certainly, high levels of attrition

A job related to which we have a potential, or actual, client dispute situation

A job on which we have actual or anticipated execution discounts of a significant size ($1M or more)

A job which is so Pivotal to our future that we can´t afford to do anything less than our best work

PROJECT PERFORMANCE EVALUATION (CMAP)

103


Description


Purpose:

People Involved:


The career management and performance evaluation (CMAP) is a formalreview and critique of a team member’s performance on either a clientengagement or an internal project. The CMAP should be completed on-lineusing the Career MAP Writer application. The CMAP writer is also used tocomplete a Short Term Appraisal, as well as an Annual Review*

Provide feedback to team members on their overall project performance andcontribution, focusing on demonstrated strengths and developmentalopportunities. Project evaluations serve as the foundation for the annualreview process, including performance and promotion decisions

Frequently, the team member’s immediate supervisor prepares the evaluationfor a CMAP or a Short Term Appraisal, seeking input from each person whohas had extensive contact with the team member

For Business Analysts, Consultants, Senior Consultants, and Managers theCMAP evaluation takes place at the end of a project, or every four months,whichever comes first. For Senior Managers, a project performanceevaluation should be completed at the end of a project, or every six months,whichever comes first. Periodic, informal performance discussions throughoutthe project are encouraged. Associate partners receive performancefeedback twice a year, at the mid-year and annual review cycle

Project Performance Evaluation (CMAP): Overview

104


Purpose of Evaluations

Purpose of Evaluations

CMAP evaluations and Short Term Appraisals are critical to thecontinuing development of our consultants.

Establishes a formal record of performance over time

Highlights strengths and developmental opportunities, helping set a process forcontinual skill building and personal growth

Serves as the basis for performance and promotion decisions

105


ConductPre-engagement

Discussionand Complete

CMAP Roles andExpectations Section

Process:

Timing:

Responsibility:

Start of Project

Supervisor andTeam Member

During Project

Supervisor andTeam Member

End of Project

Perform Project(Hold informal,

periodic discussions)

PerformProject

PerformanceEvaluation

The Evaluation Process

The CMAP performance evaluation process serves as a reflectionpoint at the end of either a project or a phase of a project or everyfour to six months, whichever comes first.

Developevaluation

Discussevaluation

Finaliseevaluation

and send toreviewee’s HRrepresentativ

e

Supervisor Supervisorand TeamMember

Supervisorand TeamMember

Process:

Responsibility:

Purpose of Evaluations: The Evaluation Process

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The team member’s immediate supervisor uses the Career MapWriter application to complete a CMAP project performanceevaluation. This evaluation contains four key components.

Roles and Expectations

Skill Domain Assessment

Contribution

Summary Points• Key Strengths• Areas for development• Suggestions for next

assignment

This section requires a memo** – which should be created at the beginning of the project– that identifies a team member’s roles, responsibilities, key skills to be developed, andperformance expectations

A series of content skill components, professional qualities and success factors that areevaluated against defined criteria. Skill domain evaluation criteria vary by competencygroup, skill track and level

In this section, create a memo which highlights an individual’s strengths anddevelopmental opportunities based on observed performance characteristics in additionto an individual’s broader contribution to the project and practice

Summarise in a few brief words the individual’s strengths, areas for development, andsuggestions for future projects as detailed in the contribution section

ExplanationCareer MAP Components

Evaluation Process: Develop Evaluation

Developevaluation

Discussevaluation

Finaliseevaluation and

send to thereviewee’s HRrepresentative

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The CMAP examines three types of skill domains (dimensions ofperformance); six levels of expected proficiency are defined for eachskill domain evaluation component based on an individual’scompetency group, skill track and level.

Knowledge and skills you can acquire anddevelop

Account Planning Business Performance Measurement Business Process Acumen Business Process Analysis and

Architecture Business Strategy Formulation Change Journey Leadership Distribution Operations Facilitation Industry Acumen Marketplace Analysis Process Consulting Project Management Quality Management Research Sales Planning and Implementation Strategic Alliance Integration Strategic Vision Creation Structured Issue Analysis

Personal attributes that contributeto achievement

Business Writing Diversity Management Influence Initiative Innovation Knowledge Sharing Leadership Negotiation Oral Communication Personnel Development Problem Solving Professional Relationships Team Work/Collaboration

Behavioral standards everyonemust achieve

Client Focus Confidence Cooperative Decisiveness Integrity Interpersonal Flexibility Responsiveness Self Starter Stewardship Thoroughness

Content Skills Professional Qualities Success FactorsCMAP Skill Domains*:

Definition:

Evaluation Components:


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CMAPs by level are available within the Career MAP Writerapplication.

CMAPs by Level*

DevelopEvaluation

DiscussEvaluation

FinaliseEvaluation and

Send to theReviewee’s HRRepresentative

Business Analyst

Consultant

Senior Consultant

Manager

Senior Manager

Associate Partner


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The information in the Contribution section, which is meant toprovide detail beyond the skill domain assessment, should includefour important elements.

Identify key strengths and areas for development

Cite specific examples that demonstrate the keystrengths and areas for development to help theteam member fully understand the basis for theassessment

Provide future project and role suggestions thatwill help build or reinforce skills for thisindividual

Discuss broader contribution to the project andpractice

Important Elements of Contribution Section

DevelopEvaluation

DiscussEvaluation




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The information in the Summary section will be used both for staffingand for development purposes.

Identify three key strengths demonstrated overthe time period being reviewed

Identify three areas for professional growth. Citespecific examples when possible to help the teammember fully understand the assessment

Provide suggestions for the evaluatees nextassignment, including the type of assignment,types of responsibilities, and skill domains to bedeveloped

Important Elements of Summary Section

DevelopEvaluation

DiscussEvaluation




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A Short Term Appraisal follows the same process as a CMAP;however, the form only contains one section in which to evaluateperformance.

This section should include thenature of the work completed, aswell as, the basis for theassessment. The evaluationshould list strengths and areas fordevelopment, with specificexamples as applicable. Anyprofessional qualitiesdemonstrated should be included

Comments

Short Term AppraisalBasis for Evaluation Explanation

DevelopEvaluation

DiscussEvaluation




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In developing the performance evaluation, take steps to avoidcommon pitfalls. One important goal: there should be nosurprises.

Similarity

Lenience

Halos/horns

Regency effect

Stereotyping

Contrast effect

Focus on objective information and try to eliminatesubjective, “gut” feelings

Identify specific behavioural examples as evidence tosupport your ratings

Do not compare people to others, only to performancecriteria

Look for more evidence and specific examples forespecially high or low ratings

Choose the best examples for the narrative portions

Use language that is consistent with the form

Make sure that you have suggestions for actions toaddress the problem areas that you identify

Be prepared to discuss career development objectivesand promotion issues

Do’s and Don’ts Common Pitfalls

DevelopEvaluation

DiscussEvaluation




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The evaluator should take steps to ensure the evaluation meetingis a positive experience for both parties.

Pick the setting Establish comfortable, productive atmosphere Ensure privacy

Walk through appraisal State positive points first Provide specific examples Ask for reactions Summarise their points to reflect understanding —

note any unresolved differences of opinion on form

Be forward thinking Discuss types of future projects to aid development Request feedback on your own performance

Conduct the Meeting

DevelopEvaluation



Evaluation Process: Discuss Evaluation

DiscussEvaluation

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Once the review has been conducted, the completed CMAP orShort Term Appraisal evaluation form should be sent* to thereviewee’s HR representative for inclusion in the individual’spersonnel files.

What to do after Evaluation

Both supervisor and team member finaliseevaluation

Differences of opinion are noted on the form

Manager sends master to team member’s HumanResources representative to be included in his/herpersonnel file

Team member retains a copy for future reference

Evaluation Process: Sign and Send Evaluation

DevelopEvaluation

DiscussEvaluation

